NEWS RELEASE TRANSMITTED BY CCNMatthews



FOR:   NORTH AMERICAN PALLADIUM LTD.

TSE SYMBOL: PDL

AUGUST 31 2000 - 16:55 EDT

North American Palladium Files Preliminary Prospectus  For
Treasury Offering


(TSE-PDL) North American Palladium Ltd. filed a preliminary
prospectus today with securities commissions for a treasury
offering of common shares. The offering will be made in each
province of Canada and in the United States under the provisions
of the Multi-Jurisdictional Disclosure System. The underwriting
syndicate is being led by BMO Nesbitt Burns Inc. and co-managed
by RBC Dominion Securities Inc., Scotia Capital Inc., TD
Securities Inc. and National Bank Financial. 

"This financing will allow us to complete the funding of our C
$207 million expansion project at our Lac des Iles mine", said
Keith Minty, President and CEO.

North American Palladium is Canada's only primary producer of
palladium and it believes that it has one of the largest
palladium deposits in the world.

A copy of the preliminary prospectus is available by contacting
BMO Nesbitt Burns Inc.

A registration statement relating to these securities has been
filed with the Securities and Exchange Commission but has not yet
become effective, and a preliminary long form prospectus has been
filed with the securities regulatory authorities in Canada. These
securities may not be sold nor may offers to buy be accepted
prior to the time the registration statement becomes effective
and a receipt has been issued by the securities regulatory
authorities in Canada.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any province or state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such province or
state.
                                                            
Company contacts:
Keith C. Minty - President and C.E.O.
Tel: (807) 448-2012 / Fax: (807) 448-2001
or
George D. Faught - Vice President Finance & C.F.O.
Tel: (416) 214-1914      Fax: (416) 864-0620
Website Address: //www.napalladium.com
                                                            
Forward Looking Statements - Some statements contained in this
release are forward-looking and, therefore, involve uncertainties
or risks that could cause actual results to differ materially.
Such forward-looking statements include comments regarding the
equity funding program and metal supply contract. Factors that
could cause actual results to differ materially include metal
price volatility, economic and political events affecting metal
supply and demand, fluctuations in ore grade, ore tons milled,
geological, technical, mining or processing problems, future
results of exploration programs, availability of financing and
possibility of lack of operating capital. The Company disclaims
any obligation to update forward-looking statements.









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