2.3 0 448

NORTH AMERICAN PALLADIUM LTD.

Thunder Bay, Ontario August 24, 2005

LAC DES ILES MINES LTD.

PROSPECTING REPORT

SHABOTIK PROPERTY

NORTHWESTERN ONTARIO

Shabotik Area

Claim Map G-3781 N.T.S.42C/14NW

Jason Rickard Exploration Geologist

TABLE OF CONTENTS

SUMMARY

1.0 INJRODUCTION 2.0 LOCATION AND ACCESS 3.0 CLAIM HOLDINGS AND PROPERTY DISPOSITION 4.0 PROSPECTING LOG

LIST OF ApPENDICES

APPENDIX I North American Palladium Personnel APPENDIX II Expenditures APPENDIX III Statement of Qualifications APPENDIX IV Prospecting Samples and Assays APPENDIX V Assay Certificates

LIST OF FIGURES, AND MAPS

Figure 1 Regional Location Map Figure 2 Claims Map Map 1 Sample Locations and Traverses

LIST OF TABLES

Table 1 Claim Holdings

Page 1 1 1 4

5 6 7 8 9

2 3

Attached

1

1.0 INTRODUCTION

During the period August 2 to August 5, 2005; North American Palladium Ltd. personnel conducted a prospecting program on the Shabotik Property. The purpose of the prospecting program was to evaluate the property for base metal and PGM potentiaL

2.0 LOCATION AND ACCESS

The Shabotik property is located approximately 35km north-northwest of the city of White River (Fig. I). It is located within NTS 42C/14NW, in UTM zone 16 (Nad 83), and is centred at 6I8,190mE and 5,417,250mN.

The property can be accessed by travelling 25km west on Highway 17 from White River, then turning north on the North Regan road. Another road is found at the left at approximately the 42km point and heads southwest toward the property. A quad is required to continue further on the road, providing access to the property from the north. Much of the property consists of a 5 to 10 year old forestry cutover which was used with roads to make traversing easier.

3.0 CLAIM HOLDINGS AND PROPERTY DISPOSITION

The property consists of 5 claims in good standing, totalling 16 claim units located in the Shabotik area (G-3781), within the Thunder Bay Mining District. A claim sketch outlining the property is given in figure 2.

A summary of the claim holdings is provided below (Table 1). The claims are registered in the name of Lac des Bes Mines Ltd. (710 Norah Cr., Thunder Bay, Ont, P7C 4T8). Lac des Bes Mines Ltd. is a wholly owed subsidiary of North American Palladium Ltd.

Table 1:

CLAINI NUNIBER RECORDING DATE DUE DATE PROPERTY 4203395 3-Mar-05 3-Mar-07 Shabotik 4203396 3-Mar-05 3-Mar-07 Shabotik 4203399 3-Mar-05 3-Mar-07 Shabotik 4203400 3-Mar-05 3-Mar-07 Shabotik

1235591 29-Aug-03 29-Aug-05 Shabotik

I I __

---J

I

~ /g. r -;4-~ \ ;- -1m Map

.-J k Pro".rt

- I IS7;;'1 Lake Ar.a (G3781) .,. l:Ni';'OIfcI~'---./ / \ I

~

4

PROSPECTING LOG

Aug 2- Travel to the Shabotik property from Thunder Bay. Investigation of road and trail access to the property.

Aug 3- Sampling of the existing showing, which consisted of hornblende gabbros and melanogabbros enclosed by granite. A prospecting traverse over the property was also conducted in which mostly granite outcrops were observed.

Aug 4- Prospecting traverse and investigation of historic electromagnetic anomalies. Mostly granite outcrops were observed during the traverse. Two hornblende gabbro and melanogabbro outcrops were also sampled.

Aug 5- Investigation of a second showing, which contained mostly hornblende gabbro and granite. A prospecting traverse was also completed over the property, mostly granite outcrops were observed.

ApPENDIX I

North American Palladium Ltd. personnel included in the 2005 Shabotik prospecting program:

1. Jason Rickard, Geologist (author) 2. Joey Hackl, Prospector 3. Gary Wong, Prospector 4. JeffMyllyaho, Geological Assistant

5

ApPENDlXII

Expenditures submitted for assessment credit:

Prospecting Prospector: 4 days @ $2S0/day Prospector: 4 days @ $2S0/ day

Report Writing/Compilation Geologist: 1 day @ $3S0.00/day Geological Assistant: 1 day @ $2S0

Vehicle SOO km @ $0.30/km

Quad Rental 3 days @ $6S/day

Assays (Pt, Pd, Au, Cu, Ni, Co) 17 rock samples @ $18.S0/sample

AccommodationslMeals Motel: 4 days @ $ 109. 76/day Meals

Total

$1000.00 $1000.00

$3S0.00 $2S0.00

$IS0.00

$19S.00

$314.S0

$439.08 $86.68

$3785.26

6

ApPENDIX III

STA TEMENT OF QUALIFICA nONS

I, Jason Rkkard, hereby certify that:

1. I am a practicing geologist in Thunder Bay, Ontario and reside at 417 Strand Ave., Thunder Bay, Ontario, P7B 5H8.

2. I am a graduate of Carleton University with a BSc. and MSc. in Geology.

3. I am a Canadian Citizen.

4. I have practiced my profession full time since graduation in 2000.

5. I do not have, nor do I expect to receive, directly or indirectly, any interest in the properties of Lac des Iles Mines, Ltd.

Signature:

Date:

7

Ni% Co% Rock Type DescrlDtlon 2 0.0236 0.0056 Gabbro Very coarse grained green hornblende? Gabbro, 80% mafic no sulDhides 2 0.0208 0.0057 Homblende Gabbro Very coarse grained grn hornblende gabbro with pink feldspar, no sulphides 9 0.2502 0.0182 I Hornblende Gabbro Very coarse grained hornblende gabbro localized rusted area, 4% diss medium arained PV 61 0.0441 0.007 ! Hornblende Gabbro Coarse to medium grained homblende? Gabbro, rusty sheer area, 20% diss py,OO 7 0.137 0.0123 Gabbro Medium grained gabbro rusted shear 15% DV, po and cpv 2 0.0497 0.0074 Gabbro Medium grained gabbro, crumbly, blklarn. no sulphides 5 0.0142 0.0071 Gabbro Very coarse grained gabbro. pink feldsoar. trace diss DV 1 0.0101 0.008 Hornblende Gabbro Coarse grained blk hornblende gabbro with small amounts of biotite. trace diss py. non-magnetic 8 0.0024 0.0073 Hornblende Gabbro Coarse to medium grained hornblende aabbro. blk. biotite 1 % dissDV 5 0.0021 0.0035 Granite Medium grained. white biotite granite, 1% diss 9 0.0021 0.0041 Granite Medium to coarse grained, white/plnklred biotite aranite. 2% diss medium arained pY. localized rusted area I 8 0.0022 0.006 Bt Hbld Gabbro Medium to coarse grained biotite gabbro-aranite. no sulDhides 6 0.0062 0.0072 8t Hbld Gabbro Medium to coarse grained biotite-homblende aabbro blk. trace diss DV 6 0.0146 0.0065 Bt Hbld Gabbro Medium grained biotite-hornblende gabbro, blk. no sulohides 3 0.008 0.0067 8t Hbld Gabbro Medium grained biotite-hornblende gabbro. blk with Dink feldspar, no sulDhides 8 0.0171 0.0075 Hbld Melanogabbro Fine to medium grained homblende melanooabbro, no sulphides, with aranite 6 0.0076 0.0067 Hornblende Gabbro Fine to medium grained hornblende gabbro, no sulphides, very small POds (0.5m x 0.5m)

• ... . \..J-

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9

Appendix V

Q Accur-a§§a'¥ ~ Labur-atur-ie§ Mineral Assay Division of Assay Laboratory Services Inc. 1046 GORHAM STREET THUNDER BAY. ONTARIO P7B 5X5 PHONE: (807) 626-1630 FAX: (807) 622-7571 EMAIL: assay@accurnssay.com WEB: www.accurassay.com

Certificate of Analysis ---Wednesday. August 24, 2005

North American Palladium Ltd.2, Metals Exploration Divis Date Received: 09-Aug-05 710 Norah Cr. Date Completed: 23-Aug-05 Thunder Bay, ON, CAN Job # 200541291 P7C4T8 Reference: 1007132:33583:63680 PhI: (807) 623-8005

Sample#: 15 Rock FaX#: (807) 623-8074 Email ,mmacisaac@napalladium.com

Au Pt Pd Rh Ag Co Cu Fe Ni Pb Zn Accurassay # Client Id

g/t g/t g/t g/t % % % % % % ppm 89685 JCH05-495 <0.005 0.022 <0.010 0.0056 0.0020 0.0236

89686 JCH05-496 <0.005 0.031 0.011 0.0057 0.0200 0.0208

89687 JCH05-497 0.007 0.521 0.537 0.0182 0.2859 0.2502

89688 JCH05-498 <0.005 0.068 0.073 0.0070 0.0756 0.0441

89689 JCH05-499 0.005 0.172 0.156 0.0123 0.2197 0.1370

89690 JCH05·500 <0.005 <0.015 <0.010 0.0074 0.0020 0.0497

89691 JCH05-501 <0.005 <0.015 <0.010 0.0071 0.0055 0.0142

89692 JCH05-502 <0.005 <0.015 <0.010 0.0080 0.0141 0.0101

89693 JCH05·503 <0.005 <0.015 <0.010 0.0073 0.0080 0.0024

89694 JCH05-504 <0.005 <0.015 <0.010 0.0035 0.0045 0.0021

89695 Check JCH05-504 <0.005 <0.015 <0.010 0.0038 0.004J 0.0017

89696 JCH05-505 <0.005 0.016 <0.010 0.0041 0.0019 0.0021

89697 JCH05-506 <0.005 0.019 <0.010 0.0060 0.0018 0.0022

89698 JCH05-507 <0.005 0.021 <0.010 0.0072 0.0026 0.0062

89699 JCH05-508 <0.005 <0.015 <0.010 0.0065 0.0046 0.0146

89700 JCH05-509 <0.005 <0.015 <0.010 0.0067 0.0033 0.0080

A,.. ..... .,......, ......... • ... iMA Page I of I ults lneluded on this report relate only to the Items tesIed

Certificate of Analysis should not be reproduced except In full, without the written approval of the laboratory

AL9 I 2..00 14--ll8l2412OOS 02'41 PM

Q 4.£:£:ura~~ay ~ Lab()rat()rie~ Mineral Assay Division of Assay Laboratory Services Inc. 1046 GORHAM STREET THUNDER BAY, ONTARIO P7B 5X5 PHONE: (807) 626-1630 FAX: (807) 622-7571 EMAIL: assay@accurassay.com WEB: .... 'Ww.accurassay.com ,-,

;:) • . Certificate of Analysis

Tuesday, August 23,2005

North American Palladium Ltd.2, Metals Exploration Divis 710 Norah Cr. Thunder Bay, ON, CAN P7C4T8 Ph#: (807) 623-8005 FaX#: (807) 623-8074 Email .mmacisaac@napalJadium.com

Accurassay # Client Id Au Pt

g/t g/t

Pd

glt 89701

89702

JCH05-510 <0.005 <0.015 <0.010

JCH05-511 <0.005 <0.015 0.014

Rh

glt

Date Received: 09-Aug-05 Date Completed: 15-Aug-05

Job # 200541292 Reference: 1007132:31282:63680

Sample #: 15 Rock

Ag Co Cu Fe Ni

ppm % % % % 0.0075 0.0028 0.0171

0.0067 0.0006 0.0076

I

I

1

-

Pb Zn

% %

•

4NiMA Page I of I resulls Included on this report relate only to the items tested

The CertIfIcate of Analysis should not be reproduced except In full, without the written Derek Demianluk H.Bsc., laboratory Manager approval of the laboratory

AL912.oo I 4·{)312312005 0208 PM

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i North American Pa11adium Ltd

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Date:221812005 North American Palladium Ltd. i

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Author: J.Rickard Shabotik Property i ~ ---1-_------------------------- Office: T.Bay Prospecting 2005 Ii: I

Drawing:

- -~( '--~-----------~I i: Scale: 1 :5000 Projection: UTM Nad 83. Zone 16 I :

I 617500 mE 618000 mE 618500 mE 619000 mE