January 2017

Lac des Iles Mine

Investor Presentation June 19, 2017

A final base shelf prospectus containing important information relating to the securities described in this presentation has been filed with the securities regulatory authorities in each of the provinces and territories of Canada, excluding Quebec. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this presentation. This presentation does not provide full disclosure of all materials facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision. The securities described in this presentation have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state in the United States and are being offered and sold within the United States exclusively to "qualified institutional buyers" under Rule 144A under the U.S. Securities Act and outside the United States in compliance with Regulation S under the U.S. Securities Act.

2 Disclaimers

Certain information contained in this presentation constitutes 'forward-looking statements' or 'forward-looking information within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. The words ‘target’, ‘plan’, ‘should’, ‘could’, ‘estimate’, ‘guidance’, and similar expressions identify forward-looking statements. Forward-looking statements in this news release include, without limitation: information pertaining to the Company’s strategy, plans or future financial or operating performance, such as statements with respect to, long term fundamentals for the business, operating performance expectations, project timelines, tailings management plan, mining method change, production forecasts, operating and capital cost estimates, expected mining and milling rates, cash balances, projected grades, mill recoveries, metal price and foreign exchange rates and other statements that express management ’s expectations or estimates of future performance. Forward-looking statements involve known and unknown risk factors that may cause the actual results to be materially different from those expressed or implied by the forward -looking statements. Such risks include, but are not limited to: the possibility that metal prices and foreign exchange rates may fluctuate, the risk that the Lac des Iles (“LDI”) mine may not perform as planned, that North American Palladium Ltd. (the “Company”) may not be able to meet production forecasts, the possibility that the Company may not be able to generate sufficient cash to service its indebtedness and may be forced to take other actions, inherent risks associated with development, exploration, mining and processing including environmental risks and risks to tailings capacity, employment disruptions, including in connection with collective agreements between the Company and unions and the risks associated with obtaining necessary licenses and permits. For more details on these and other risk factors see the Company’s most recent Management’s Discussion and Analysis report and Annual Information Form on file with Canadian securities regulatory authorities on SEDAR at www.sedar.com under the heading “Risk Factors”.

This presentation also contains references to estimates of mineral resources and mineral reserves. The estimation of mineral resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the LDI mine, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral resource or mineral reserve estimates may have to be re-estimated based on: (i) fluctuations in the price of platinum; (ii) results of drilling, (iii) metallurgical testing and other studies; (iv) mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses or changes to existing mining licences.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions contained in this news release, which may prove to be incorrect, include, but are not limited to: that the Company will be able to continue normal business operations at its LDI mine, that metal prices and exchange rates between the Canadian and United States dollar will be consistent with the Company’s expectations, that there will be no significant disruptions affecting operations, and that prices for key mining and construction supplies, including labour, will remain consistent with the Company’s expectations. The forward-looking statements are not guarantees of future performance. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.

Investing in the Company's common shares involves significant risks. Prospective investors should carefully read and consider the risk factors described or referenced under the heading “Risk Factors” in the final base shelf prospectus, contained in any of the documents incorporated by reference therein, and in any applicable prospectus supplement, before purchasing common shares.

All dollar amounts shown are in Canadian dollars, unless otherwise stated.

The Company prepares and presents its financial statements in accordance with IFRS. Certain financial measures highlighted in this presentation are financial measures that have not been prepared in accordance with IFRS. For a definition and reconciliation of these non-IFRS financial measures to the nearest IFRS financial measures, please refer to the appendix to this presentation. Such non-IFRS financial measures are used from time to time herein but should not be viewed as a substitute for IFRS measures of performance and others in the industry may define these measures differently.

Cautionary Statement on Forward-Looking Information

3

Operational Turnaround

New corporate and site leadership teams • An engaged and motivated workforce with excellent safety and productivity

performance.

A re-engineered asset • Conversion to sub-level cave mining at higher production, lower cost. • Increasing mill utilization from ~50% to 100% (Q4 2017). • Lower power costs, new 5 year concentrate sales agreement • New long-term tailings management plan. • A return to open pit mining

Increased ore reserve and new LOM plan released in Q2 2017

Promising exploration program

Multiple targets on mine site property with high probability of success Extensive regional property portfolio within 50km of the existing site

• 40,000 hectares assembled over last five years Strong PGM exploration expertise with a track record of adding

reserves

Exposure to palladium in an established mining camp and jurisdiction

Favourable supply/demand fundamentals (structural deficit) and increasing palladium prices

Sustainability: palladium is used to reduce emissions in gasoline automobiles

Only pure play palladium producer.

1. Based on 2017 guidance published on February 22, 2017. 2. Based on C1 cash costs net of by-product credits.

1

2

3

Exploration upside

Operational Excellence

Leverage to Palladium

Why Invest in North American Palladium?

4 Market Dynamics – Attractive Fundamentals

• Demand is expected to continue to exceed supply in the near future, driven by continued growth in automobile sales

• Analyst consensus forecasts higher prices over the 2017-2021 period (see Appendix A, page 24)

Palladium Demand/Supply and Price

Historical data based on Johnson Matthey and forecast data based on BMO Capital Markets Equity Research.

Supply Gap

Long-term Consensus

$700 - $835 - $1000

Currently: US$800/oz

5 Overview

• North American Palladium (“NAP”) is the only pure play palladium producer in the world

• Located 90 km northwest of Thunder Bay, with all season road access

• Existing producer operating with +20 year history and +5,000 tpd underground mine and 15,000 tpd mill facility

• 550 employees; 50% Thunder Bay, 50% other areas of Canada

• Recapitalized in 2015 by Brookfield (92% owned) to sponsor a turnaround of the Company

• New management team

• Substantial operating improvements

• De-levered balance sheet

• Mill currently operates on a two week on/off batch process due to tailings capacity but will return to full time operations this fall

• New LOM plan published June 6, 2017

• 38 Mt reserves at 2.25 g/t palladium

• 9.5 year mine life combining underground production with recommencement of open pit operations

Capital Structure

(As at March 31, 2017)

Shares Outstanding (M) 58.1 Options Granted (M) 1.5 Share Price (C$) $5.39

Market Capitalization (C$M) $ 313 Cash (C$M) $ 18 Debt1 (C$M) $ 123

Enterprise Value (C$M) $ 418

1. Debt includes senior secured term loan (C$65.5 M), credit facility (C$46.5 M) and capital leases (C$11.3M).

6

Modern Mill Complex (2002) Nameplate capacity: 15,000 tpd

Shaft Infrastructure (2015) 825 m deep, +8,000 tpd capacity

Permitted Tailings Facility

Lac des Iles

Unique World Class Ore Body with Modern Infrastructure • Two primary sources of ore to fill a 15,000 tpd modern mill constructed in 2002

• Underground:

• Unusually thick, vertical orebody allows for low cost bulk mining - widths up to 80 metres and strike length of >600 metres

• Palladium deposits are typically found in narrow reef structures with high mining costs

• Open Pit:

• Lower grade stockpiles from prior open pit mining total nearly 5 million tonnes (total resources) and can be used to fill excess mill capacity

• Future sources of surface ore will come from re-development of the existing Roby open pit and a new pit (Sheriff)

* Pd equivalent grade calculated using February, 2017 consensus metal prices (see Appendix A), metal recovery equations and smelter terms

May 2017 Reserves and Resources

7

Open pit production along with existing low grade stockpiles (RGO) will supplement the higher grade underground feed to keep the mill at optimum capacity. Planned production:

Sherriff Pit

500,000 t @ 1.9 g/t

Roby Pit Pushback 11.7 mt @ 1.3 g/t

Life of Mine – Open Pit Development

8

New mining method

start

• New Sub Level Shrinkage (SLS) method is increasing production, improving reliability, increasing ore recovery and lowering costs

• Replaces longhole, open stoping method which left ore in remnant pillars and created ground control issues

• LDI’s new cost profile is favorable compared to a number of prominent underground mining operations in Canada

New Mining Method – Increasing Production at Low Cost

Historical and Forecasted Underground Production Rate since SLS inception (tpd)

6,0205,8405,125

4,0354,6814,4584,0934,2583,871

3,257

Q2 17 31-Oct 30-Nov 31-Dec Q1 17 Q3 17 Q4 17 31-Jul 31-Aug 30-Sep

9 Life of Mine Plan (43-101 Technical Report 06/07/17)

• Substantial conversion of mineral resources to reserve category resulting in 9.5 year mine life

• Includes surface reserves around existing pit

• Incorporates underground ore to +1305 m depth

• New mining method increases total ore recovery, lowers operating cost, raises production rate and improves geotechnical ground conditions

• Re-examines cut-off grade with consensus price forecast and cost assumptions

Goal is to maximize mill capacity with the highest grade possible

SLS Conversion Zone at Depth

Strong exploration upside which could lead to further mine life extensions , custom milling opportunities and potentially another LDI-type deposit

Total Ore indicates proven & probable mineral reserves mined in the LOM plan.

10

New mining method

start

Life of Mine – Economic Analysis (43-101 Technical Report 06/07/17)

Key Statistics

1. Net of by-product revenue and excluding taxation. 2. Metal price and currency exchange assumptions detailed in Appendix A. 3. Non-IFRS measure. Refer to Appendix A for reconciliation to the nearest IFRS financial measure.

Total Palladium Reserves (Contained) 2.7 M oz

Average Palladium Reserve Grade 2.21 g/t

Open Pit / Underground Tonnes 46% OP / 54% UG

Average Mill Throughput 10,900 tpd

Estimated Palladium Recovery 81%

Total Palladium Production (Payable) 2.04 M oz

Ave. Annual Palladium Production (Payable) 214,000 oz

Reserve Life 9.5 Years

Average Cash Costs (LOM)1,3 USD$428/oz sold

Average All-in Sustaining Costs (LOM)1,3 USD$527/oz sold

Cumulative EBITDA3 C$1,056M

Cumulative Post-tax Free Cash Flow C$678M

Post-Tax NPV(5%) C$536M

Post-Tax NPV(8%) C$470M

11

New mining method

start

Life of Mine – Economic Analysis (43-101 Technical Report 06/07/17)

Post-tax NPV 1,3 @ 8% (CAD) USD/CAD

US$/oz Pd 1.20 1.25 1.28 1.30 1.35

$ 700 $ 164 M $ 224 M $ 265 M $ 282 M $ 339 M

$ 750 $ 242 M $ 302 M $ 344 M $ 362 M $ 421 M

$ 800 $ 315 M $ 379 M $ 423 M $ 441 M $ 495 M

$ 835 $ 364 M $ 429 M $ 470M $ 486 M $ 537 M

$ 850 $ 390 M $ 454 M $493 M $ 508 M $ 560 M

$ 900 $ 461 M $ 517 M $ 555 M $ 571 M $ 624 M

$1000 $ 579 M $ 636 M $ 677 M $ 693 M $ 750 M

1. Palladium price and forex rate adjusted 2018 forward. 2. Palladium price and discount rate adjusted 2018 forward. 3. Metal price and currency exchange assumptions detailed in Appendix A.

Post-tax NPV 2,3 @ 1.28 FX rate (CAD) Discount

US$/oz Pd 0% 5% 7% 8% 10%

$ 700 $ 394 M $ 305 M $ 277 M $ 265 M $ 242 M

$ 750 $ 502 M $ 394 M $ 360 M $ 344 M $ 316 M

$ 800 $ 616 M $ 482 M $ 441 M $ 423 M $ 390 M

$ 835 $ 678 M $ 536 M $ 491 M $ 470M $ 433 M

$ 850 $ 704 M $560 M $ 514 M $493 M $456 M

$ 900 $ 783 M $ 627 M $ 578 M $ 555 M $ 514 M

$1000 $ 944 M $ 761 M $ 703 M $ 677 M $ 629 M

12

Low-cost mining operation

• Low-cost underground mining method (SLS)

• Increased underground mining rate

• Increased throughput from low-cost sources (surface mining)

• Continued focus on cost control (maintenance, power & consumables)

Life of Mine – Operating Expenses

74.60

10.037.857.08

15.70

33.94

60.61

7.265.214.66

13.94

29.54

43.07

4.903.452.66

10.76

21.30

0

10

20

30

40

50

60

70

80

Total Site G&A Freight, Smelting & Refining

Surface Milling Mining

2017 LOM1 2016

1. 2018-2026 average

Operating Expenses (C$/t)

13 Life of Mine – Capital Expenditures

Capital Expenditures (C$ M)

40

50

10

60

80

30

70

20

0

5

2024

17

2023

22

2022

25

2021

33

2020

52

2019

76

41

35

2018

73

38

2025

34

2017

50

32

18

2016

50

16

35

Sustaining Project

Pre-LOM Total LOM = $303

Project Roby pre-stripping 18,785 19,806 - - - - - -

Roby infrastructure 15,505 15,060 - - - - - -

34,290 34,866 - - - - - -

Sustaining UG development 8,817 8,401 10,577 10,802 9,402 1,959 - -

UG infrastructure 5,907 2,169 11,154 2,271 2,351 1,008 - -

Mobile equipment 6,812 15,701 10,501 8,846 1,778 7,042 7,411 -

TMF 14,310 12,545 16,972 8,556 9,507 10,254 8,269 4,474

Other 2,375 2,375 2,375 2,375 2,375 2,075 1,500 800

38,221 41,190 51,579 32,850 25,413 22,338 17,180 5,274

14 Life of Mine – All-in Sustaining Costs

527

352376

494505514558

634580

524

650728

0

200

400

600

800-28%

LOM2 2026 2025 2024 2023 2022 20171 2016 2021 2020 2019 2018

All-in Sustaining Cost 3 Net of By-product Revenue (US$/oz palladium sold)

Payable Palladium Production (000 oz)

0

300

250

200

150

100

50

2026 2025 2024 2023

150

43%

LOM2 2018 20171 2022

199

2021

254

2020

240

2019

238

2016

214

109

205 205 219 224 229

1. 12-months 2. 2018-2026 average 3. Non-IFRS measure. Refer to Appendix A for reconciliation to the nearest IFRS financial measure.

15 LOMP Post-tax Cash Flow

-$90,000

$10,000

$110,000

$210,000

$310,000

$410,000

$510,000

$610,000

$710,000

$(25,000)

$-

$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

$175,000

$200,000

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Post Tax Free Cash Flow Cumm Post Tax Free Cash Flow

Post-tax Free Cash Flow (C$ 000)

16

1. South Offset • Best potential for a major near-term resource gain

that would be additive to the SLS mine plan

• Major gap in drilling below the shaft and extending south to the Camp Lake fault

2. Camp Lake Block

• Best potential for a transformative discovery at LDI

• Modeled as the southern extension of the vertical structure hosting the Offset deposit

• Initial, positive indications from deep drilling in 2015 where Offset-type mineralization was found

3. Mystery Zone

• Vertical, cylindrical-shaped target similar to B2 zone – represents a new mineralization style

• Determine vertical extent and tonnage potential of currently defined higher-grade Pd-rich core

Exploration – Underground Targets

2017 Underground Exploration

Add to higher-grade Pd resources and extend life of UG operations

1

2

3

17

1. South LDI • Historical Cu-Ni showings on

extension of the main LDI feeder fault

• Very limited prior exploration 2. Shorty Lake Fault • Potentially a 2nd major north-

south feeder structure • Following up on positive drill

results from 2013 3. Creek Zone • Testing a new model

involving a newly recognized SW-trending feeder fault

4. NW Pit • Potential near-surface

extension of west Roby Zone • Easy test with short drill holes

2017 Mine Site Surface Exploration Program

Creek Zone

Shorty Lake 2 3

4 NW Pit

1

2nd major feeder fault?

Main Feeder Fault

Add to surface mineral inventory to fill the mill

Roby Open Pit

Exploration – Open Pit Targets

18

North LDI

Location of NAP Greenfields Properties in Northwestern Ontario (LDI mine and mill complex shown by yellow star)

Greenfields Exploration

Area of Interest

Exploration – Regional Greenfield Opportunities

2017 Greenfields Program

Finding the Next LDI

Recently assembled, extensive portfolio • Properties staked

opportunistically during last downturn

• Most with historical surface occurrences, locally in the 1-5 g/t Pd range

Find the Feeder Structures • LDI is a structurally-controlled

vertical ore body that formed within a major, regional fault (new model)

• Historical greenfields exploration has not tested this model – a different approach is being implemented

Geophysical and Geochemical Surveying • Leading edge geochemical

and geophysical survey methods are being applied to all properties

Exploration Drilling • Target testing will begin later

this year (Legris, Shelby) • $ 0.6 million spending

including minimum of 2,000 metres of drilling

19

Three Keys to Exploration Success

1. Balanced, PGE exploration portfolio (in place) • 40,000 hectares property portfolio within 50 km of LDI mill and covering all known regional LDI-type intrusions • Recent acquisition of 75% interest in Sunday Lake property 2. Experienced team with proven track record (in place) • Near-mine success in adding resources and converting reserves 3. Sustained investment • Current plan envisages annual spend of $8M per year for next several years (2018 forward)

Three Pillars of NAP’s Exploration Strategy

1. Underground Exploration: Reserve Replacement • In near-term, highest probability of success will come from extending the known orebodies at Lac des Iles 2. Mine site Surface Exploration • Identify additional surface ore sources that can be developed and produced from open pit operations to feed mill 3. Resource Definition Drilling on Advanced Greenfields Projects • Focus on developing greenfields projects on a 5-10 year timeline that are within trucking distance to mill

New Discoveries on Early-stage Greenfields Projects

• In longer-term, systematic testing of exploration targets will deliver the new discoveries needed to maintain a balanced portfolio

Strong Exploration Potential – Strategic Plan

Creating Value from Exploration

20 Investment Thesis

Operational turnaround near completion at Lac des Iles

New LOM plan. Low risk, low cost, robust economics

Excellent exploration potential

Positive palladium supply and demand fundamentals

North American Palladium is the world’s only pure play palladium producer

21

Questions

One University Avenue Suite 402 Toronto, ON M5J 2P1 (TSX:PDL) (OTC PINK:PALDF) www.nap.com Investor Relations & Corporate Communications IR@nap.com +1-416-360-7374

Corporate Office:

Security Symbols:

Website: Investor Relations:

Jim Gallagher, President & Chief Executive Officer +1-416-360-7492

Tim Hill, Vice President, Finance & Chief Financial Officer +1-416-360-1952

Dave Peck, Vice President, Exploration +1-204-721-1797

22

Appendix A – Additional information

23 Sub-level Shrinkage Mining Method

Primary Advantages of Sub-Level Shrinkage Mining

1. Increased Mineable Reserve

2. Lower Operating Costs

3. Increased Production Rate

4. Reduced Seismicity

Waste

24

LOM Metal Prices and Foreign Exchange Assumptions1

2017 H2 2018 2019 2020 2021 fwd

US$/oz Palladium $ 770 $ 800 $ 830 $ 850 $ 840

US$/oz Platinum $ 1,002.50 $ 1,069.00 $ 1,200.00 $ 1,250.00 $ 1,225.00

US$/oz Gold $ 1,242.13 $ 1,270.63 $ 1,300.00 $ 1,350.74 $ 1,325.37

US$/lb Copper $ 2.60 $ 2.61 $ 2.75 $ 2.97 $ 2.86

USD/CAD 1.355 1.310 1.300 1.260 1.280

Analyst Consensus Prices

1. Source: Bloomberg. Annual median of analysts’ forecasts at May 9, 2017

Metal Prices1 used for Mineral Reserve Estimation

US$/oz Palladium $ 793.00

US$/oz Platinum $ 1,175.00

US$/oz Gold $ 1,298.00

US$/lb Copper $ 2.66

USD/CAD 1.305

1. Source: Bloomberg. Annual median of analysts’ forecasts at February 9, 2017

25 LOMP Production Plan

26 Annual Operating Expense per tonne mined

33.94 29.5421.01 22.14 23.31 22.25 20.73 20.08 24.54

18.26 16.57

15.7013.94

10.37 10.41 10.30 10.32 10.41 10.8411.64

11.73 11.60

12.93

9.50

5.83 5.79 5.74 5.74 5.76 6.096.57

6.04 6.84

5.21

7.85

2.942.832.96

2.702.532.532.532.532.62

4.66

7.08

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

62.85

2016

77.50

3.52

2024

49.16

3.44

2023

43.06

2026

41.52

3.58

2025

42.39

2017

3.36

2022

42.71

3.29

2021

44.30

3.44

2018

43.69

3.85

44.18

3.34

2020

45.23

3.35

2019

Operating Expense (C$/t)

Surface S&R & Freight Mining Site G&A1 Milling

2017 Cost Structure

9.6% Power

4.4%

Propane Contractors

Fuel

3.7%

5.7%

Parts & Supplies

Consumables

38.4%

Compensation

22.2%

16.0%

Activity Unit cost (C$)1 Ore Blend

Underground mining Surface mining Weighted average

31.98 / t 8.98 / t 21.30 / t

54% 46%

Mining 21.30 / t

Milling 10.76 / t

Surface 2.66 / t

G&A 4.90 / t

Total Site 39.62 / t

S&R & Freight 3.45 / t

Corporate 1.08 / t

Closure2 0.67 / t

Total 44.82 / t

1. 2018-2026 average 2. Total costs (2027-2031) / Total tonnes (2018-2026)

1. Includes corporate costs`

27 Non-IFRS Measures – EBITDA

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 fwd

Gross Revenue C$ 000 151,806 340,729 333,218 334,951 328,983 325,441 311,335 292,651 293,691 156,573

Production Costs C$ 000 (73,648) (173,491) (178,083) (183,148) (177,988) (171,670) (161,791) (170,077) (140,388) (71,477)

Smelt, Refine & Freight C$ 000 (7,061) (16,090) (15,370) (15,007) (14,915) (14,691) (14,069) (13,150) (13,143) (6,956)

Royalty C$ 000 (7,237) (16,232) (15,892) (15,997) (15,703) (15,537) (14,863) (13,975) (14,027) (7,481)

Corporate Costs C$ 000 (3,176) (4,575) (4,575) (4,575) (4,575) (4,575) (4,575) (4,575) (4,575) (2,287) (1,716)

EBITDA C$ 000 60,683 130,342 119,298 116,224 115,802 118,968 116,037 90,874 121,558 68,372 (1,716)

EBITDA

28 Non-IFRS Measures – Cash cost per palladium ounce sold

2018 2019 2020 2021 2022 2023 2024 2025 2026

Direct Operating C$ 000 53,140 57,435 62,969 57,830 50,744 42,556 53,404 33,977 13,790 Indirect Operating C$ 000 120,350 120,648 120,179 120,158 120,926 119,235 116,673 106,411 57,688 Total Production Costs C$ 000 173,491 178,083 183,148 177,988 171,670 161,791 170,077 140,388 71,477

Corporate Expenses C$ 000 4,575 4,575 4,575 4,575 4,575 4,575 4,575 4,575 2,287 Smelt, Refine & Freight C$ 000 16,090 15,370 15,007 14,915 14,691 14,069 13,150 13,143 6,956 Royalty C$ 000 16,232 15,892 15,997 15,703 15,537 14,863 13,975 14,027 7,481 Total Other C$ 000 36,897 35,837 35,579 35,193 34,803 33,507 31,700 31,745 16,724

Total Cash Costs C$ 000 210,387 213,920 218,728 213,181 206,473 195,298 201,777 172,133 88,201 Less: By-product Revenue C$ 000 (74,192) (74,269) (80,257) (82,280) (84,611) (76,309) (71,809) (73,738) (38,859) Cash Costs net of by-products C$ 000 136,195 139,651 138,471 130,901 121,862 118,989 129,968 98,395 49,342

Payable Palladium Sold oz 254,329 239,990 237,810 229,448 223,986 218,588 205,396 204,570 109,481

Cash Cost per Pd oz Sold C$ 536 582 582 571 544 544 633 481 451

USD/CAD Exchange Rate USD/CAD 1.31 1.30 1.26 1.28 1.28 1.28 1.28 1.28 1.28

Cash Cost per Pd oz Sold US$ 409 448 462 446 425 425 494 376 352

Cash Cost

29 Non-IFRS Measures – All-in sustaining cost (AISC)

2018 2019 2020 2021 2022 2023 2024 2025 2026

Total Cash Costs C$ 000 210,387 213,920 218,728 213,181 206,473 195,298 201,777 172,133 88,201 Sustaining Capital Investment C$ 000 38,221 41,190 51,579 32,850 25,413 22,338 - - - Less: By-product Revenue C$ 000 (74,192) (74,269) (80,257) (82,280) (84,611) (76,309) (71,809) (73,738) (38,859) AISC net of by-products C$ 000 174,416 180,842 190,050 163,751 147,275 141,328 129,968 98,395 49,342

Payable Palladium Sold oz 254,329 239,990 237,810 229,448 223,986 218,588 205,396 204,570 109,481

AISC per Pd oz Sold C$ 686 754 799 714 658 647 633 481 451

USD/CAD Exchange Rate USD/CAD 1.31 1.30 1.26 1.28 1.28 1.28 1.28 1.28 1.28

AISC per Pd oz Sold US$ 524 580 634 558 514 505 494 376 352

AISC

30 Reserves and Resources (43-101 Technical Report 06/07/17)

Notes: M&I resources are exclusive of reserves PdEq calculation based on price assumptions of: Palladium – US$793/oz, Platinum – US$1175/oz, Gold – US$1298/oz, Copper – US$2.66/lb

Current Reserve and Resource Statement

Grade Contained Metal

Tonnes Pd Pt Au Cu PdEq Pd Pt Au Cu PdEq (millons) (g/t) (g/t) (g/t) (%) (g/t) (K oz) (K oz) (K oz) (M lbs) (K oz)

Underground Proven 4.0 2.93 0.23 0.20 0.05 3.63 379 29 25 4.4 470 Probable 17.2 3.13 0.26 0.28 0.09 4.13 1,631 138 143 32.8 2,288 2P Reserves 21.3 3.09 0.26 0.26 0.08 4.03 2,113 176 180 37.2 2,754 Measured 3.7 2.97 0.26 0.21 0.07 3.79 353 31 25 5.7 450 Indicated 5.0 2.97 0.28 0.22 0.08 3.88 482 45 36 8.9 629 M&I Resources 8.7 2.97 0.27 0.22 0.08 3.84 835 76 61 14.6 1,079 Inferred 3.2 3.11 0.27 0.20 0.08 3.95 318 27 20 5.3 403

Surface Proven 1.9 1.55 0.18 0.12 0.05 2.05 95 11 7 2.1 126 Probable 15.4 1.17 0.17 0.09 0.04 1.59 577 83 44 13.5 785 2P Reserves 17.3 1.21 0.17 0.09 0.04 1.64 673 95 52 15.7 911 Measured 10.1 1.47 0.15 0.10 0.05 1.90 478 49 33 11.2 618 Indicated 9.5 1.35 0.18 0.10 0.05 1.83 411 55 30 10.4 558 M&I Resources 19.6 1.41 0.16 0.10 0.05 1.86 890 104 63 21.6 1,172 Inferred 1.3 1.38 0.16 0.09 0.04 1.79 56 7 4 1.2 73

Combined 2P Reserves 38.5 2.25 0.22 0.19 0.06 2.95 2,787 272 235 51.0 3,654 M&I Resources 28.3 1.89 0.20 0.14 0.06 2.48 1,722 182 128 37.5 2,260 Inferred 4.4 2.62 0.24 0.17 0.07 3.32 374 34 24 6.5 474

31 Unit Costs

Historical Unit Production Costs1 (C$ / t milled)

66.26

59.14

88.59

78.3276.27

37.50

58.2157.57

37.09

44.24

52.6358.10 58.39

68.02

0

10

20

30

40

50

60

70

80

90

900

800

400

600

700

300

1,100

1,000

500

0

200

100

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

55.31

Q4 2014

1,080

Q3 2014

53.16

Q2 2014

Q3 2016

Q2 2016

Q4 2016

C$

/ t m

illed kt m

illed

1. Includes mining, milling, surface, & G&A costs

32

Project Work Component Permit Responsible Ministry

Date Submitted

Date Approval Received

Permit Approval Timeline

1. 2015 Closure Plan Amendment

Acceptance by MNDM Director

Ministry of Northern Development & Mines

September 2015 December 2015 3 Months

2. 2015/2016 WMF1 Grubbing & Clearing Land Use Permit

Land Use Permit

Ministry of Natural Resources & Forestry

November 2015 December 2015 2 Months

3. 2015 East TMF Centerline Raise Stage 1

Lakes Rivers Improvement Act (LRIA)

Ministry of Natural Resources & Forestry

January 2015 March 11, 2015 3 Months

4. 2016 East TMF Centerline Raise Stage 2

Lakes Rivers Improvement Act (LRIA)

Ministry of Natural Resources & Forestry

October 5, 2015 December 1, 2015

2 Months

5. 2016 Water Management Facility #1

Lakes Rivers Improvement Act (LRIA)

Ministry of Natural Resources & Forestry

August 2015 December 23, 2015

5 Months

6. Environmental Compliance Approval Water Management Facility #1

Environmental Compliance Approval (ECA)

Ministry of Environment & Climate Change

October 2015 February 2016 5 Months

7. 2017 East & South TMF Grubbing & Clearing Land Use Permit

Land Use Permit

Ministry of Natural Resources & Forestry

January 2017 February 2017 2 Months

Environmental Permitting History

33

Appendix B – The Market for Palladium

34 What is Palladium?

• One of the “Platinum Group Metals” (PGMs) • Used as a thin coating on ceramic filters inside of catalytic converters in

automobile engines • Acts as a catalyst to convert carbon monoxide to carbon dioxide and also

converts hydrocarbons and oxides of nitrogen into pure oxygen, nitrogen and water

• Predominant in gasoline engines • Platinum has been predominant in diesel engines due to its ability

to better resist the more oxidizing environment in diesel exhaust • Approximately 3 to 4 grams of palladium per automobile (US$75 to

US$100 per car @ US$800/oz Pd)

Primary Use – Manufacture of Catalytic Converters

Automotive (catalytic converters)

78%

Electronics 9%

5% Dental

1% Other

2% Jewellery 5%

Chemical

Source: Johnson Matthey, 2016

35

• Global automobile sales expected to increase to over 100 million vehicles by 2023

• Largely driven by increase in automobile sales in China and India

Global Automobile Sales

+2% CAGR

Vehicles Per Capita (Automobiles per 1,000 people)

18

128

572

591

797

India

China

Germany

Japan

North America

Demand – Growing Global Auto Sales

Source: IHS Automotive

36 Improving Global Emissions Standards • Rising emission standards are driving higher PGM loadings • Chinese palladium loadings are ultimately expected to match or exceed Western levels • Palladium loadings expected to increase as diesel market share decreases (2.6% drop in 2016)

Palladium Loadings (grams/vehicle)

Based on palladium demand divided by automobiles produced. Europe has a higher diesel market share. Source: Johnson Matthey, IHS Automotive.

2.3

2.6

2.9

3.7

China

Europe

North America

Japan

Growth in Palladium Autocatalyst Demand in China (millions ounces)

1.2

1.3

1.5 1.6 1.7

1.9

0.0

0.5

1.0

1.5

2.0

2.5

2011 2012 2013 2014 2015 2016

Source: Johnson Matthey.

37 Alternate Fuel Vehicle Threats

Hybrids - neutral • Hybrids use palladium in their gasoline engines. • Hybrid sales have declined recently with lower gasoline

prices.

Battery Electric • No Palladium in current technology. • Not expected to have a material impact on the auto

sector in the foreseeable future • Gas is cheap again. • Range issues • High cost • Charging times • Lack of charging infrastructure • Limitations on electric grids in many jurisdictions.

Fuel Cell • Platinum is used in fuel cell technology, up to an ounce

per vehicle • Growth expected in this market particularly in

replacement of diesel generators in typical backup power supply, home off grid applications.

• Toyota and others have a big push to FCV. • Supply and logistics of hydrogen are a problem.

Battery Electric Vehicles are less than 1% of sales in 2016 and only expected to account for ~2m units by 2023 out of >100m

2,000,000

100,000,000

Electric Vehicles

Gasoline/Deisel

Estimated Electric Vehicle Sales By 2023

38

• NAP and Stillwater in Montana, USA are the only two primary palladium producers in the world

• All other palladium is produced as a by-product

• Russia’s Noril’sk remains the largest single producer of palladium

• Future production expected to remain flat

• South Africa’s future production is at risk due to a lack of capital spending and rising labour costs

• Very few advanced palladium projects exist – no relief to supply gap

• Ivanhoe Mines – Platreef

• Platinum Group Metals – Waterberg

• With the acquisition of Stillwater by Sibanye, North American Palladium is the only pure-play palladium producer for investors in the mining industry

NORTH AMERICA

RUSSIA

SOUTH AFRICA

40%

14%

38%

Source: Johnson Matthey, 2016

Supply is Constrained Majority of Supply in Higher Risk Jurisdictions

39

Appendix C – Management/Executive Teams

40 Operational Turnaround – New Management Team

Jim Gallagher President and Chief Executive Officer

Jim Gallagher is a Professional Mining Engineer with over 34 years of experience in the mining industry which includes progressive roles in operations management, technical services, consulting and projects. During a 24 year career at Falconbridge and 8 years as Global Director of Mining for Hatch, Mr. Gallagher has had the opportunity to work for or benchmark some of the largest and most complex mines and mining projects around the world. He is a visionary leader who believes in cultural evolution as the means to achieving excellence in safety and operations. Mr. Gallagher joined NAP in October of 2013 as Chief Operating Officer and was instrumental in an operational turnaround at the Lac des Iles site. He was appointed President and Chief Executive Officer in August of 2015. Mr. Gallagher holds a Bachelor of Engineering degree from Laurentian University in Sudbury, Canada. Mr. Gallagher is currently a Director of Continental Gold Inc.

Timothy Hill Vice President, Finance & Chief Financial Officer

Timothy Hill joined North American Palladium in 2015 as Director of Business Improvement and was appointed to the position of Vice President, Finance and Chief Financial Officer on August 4, 2016. Mr. Hill plays a leading role in securing funding for North American Palladium’s growth and is responsible for the Company’s financial reporting and disclosure practices, corporate treasury, financial planning and information technology. Mr. Hill is a finance professional with 18 years of experience in the mining industry. Prior to joining North American Palladium, Mr. Hill held a series of progressively senior positions at Vale Canada Ltd. in operations, finance and business planning for the North Atlantic base metals business. Mr. Hill is a Chartered Public Accountant and a Certified Management Accountant and holds a MSc. (Finance) from Queen’s University Belfast and a BSc. (Economics) from the University of Victoria.

David Peck Vice President, Exploration

Dr. Peck is a Professional Geoscientist with over 30 years of exploration and applied research experience specializing in magmatic Ni-Cu-PGE ore deposits. Prior to joining NAP, Dr. Peck operated an independent geoscience consulting business, was President and co-founder of Revelation Geoscience Ltd., spent several years as Global Nickel Commodity Leader at Anglo American plc and worked as a mineral deposits geologist in both the government and academic sectors. He received a Ph.D. degree in Geology from Melbourne University and holds a M.Sc. degree in Geology from the University of Windsor.

41 Board of Directors

J. Peter Gordon, Chairman

Mr. Gordon is a Managing Partner at Brookfield Asset Management Inc. and has responsibility for the portfolio management team within Brookfield Asset Management’s private equity group. Mr. Gordon has 35 years of industry experience in operations and finance with Brookfield companies. He currently serves on the Board of Directors for Norbord Inc. He holds an engineering degree from Queen’s University and an MBA from the University of British Columbia.

David Nowak Director

Mr. Nowak is a Managing Partner at Brookfield Asset Management and has responsibility for transaction origination and execution for Brookfield Asset Management’s private equity group. Prior to joining Brookfield Asset Management in 2011, he was a principal at a Toronto-based private equity firm. He holds a Bachelor of Laws from the University of Western Ontario and an MBA from Duke University where he graduated as a Fuqua Scholar.

John W. Jentz, CA, CPA Director

Mr. Jentz is a financial and mining professional with 20 years experience in corporate finance and mergers and acquisitions in both public and private markets. Mr. Jentz has worked in global investment banking firms such as Bear, Stearns & Co. Inc. and independent Canadian firms such as Westwind Partners and Clarus Securities. Mr. Jentz is a CA and CPA in good standing with the Canadian Institute of Chartered Accountants. Mr. Jentz earned an MBA from McMaster University with a focus on Finance and Marketing.

Dean Chambers Director

Mr. Chambers is a financial executive and professional engineer with over 35 years of business, technical, and financial experience. Mr. Chambers recently retired as Executive Vice President and Chief Financial Officer at Sherritt International Corporation, a major international resource company involved in the production of nickel, cobalt, oil and electricity. Mr. Chambers previously worked at mining and chemical firms including Dynatec Corporation, Falconbridge Limited and The Dow Chemical Company. Mr. Chambers holds a Bachelor of Engineering and Management from McMaster University.

Greg Fauquier Director

Mr. Fauquier is a mining engineer with a broad range of management skills covering both mine and process operations, as well as development, together with experience in both open pit and underground operations. Mr. Fauquier recently retired as the Global Managing Director for Hatch Ltd., a consulting engineering and project implementation company, where he was responsible for mining and mineral processing, as well as the operational services. Prior to his employment at Hatch Ltd., Mr. Fauquier was the Senior Vice President of Barrick Gold Corporation where he was responsible for the U.S. and Peruvian operations. Mr. Fauquier holds a B.Sc. Mining from Queen's University.