Canadian Palladium Resources Inc. announced that it's diamond drilling program is well underway on the Company's East Bull Palladium Property. With the recent closing of a $4 million non-brokered financing, the planned exploration program is fully funded. The objective of the program is to expand the Company's current NI 43-101 inferred resource of 523,000 ounces of Palladium equivalent. The present resource is defined over 1.8 kilometers and drilled down dip (-45o) to 125 meters. The ongoing program is testing the full 3.0 km length, to a depth of 240 meters. The Company's goal is to expand upon this inferred resource. To date, the Company has received sample results from the first diamond drill hole, EB-20-01. Most notably, Canadian Palladium's hole EB20-01 intersected: 3.32g/t palladium over 7 meters; 2.50 g/t palladium over 10 meters; 3.77 g/t palladium + platinum + gold over 10 meters; Including 7.13 g/t combined palladium + platinum + gold over 3 meters. Pursuant to the Agreement, and over a period of four years (should the Company elect to continue), the Company is obliged to incur $1,750,000 in exploration expenditures, issue $975,000 in cash payments, and issue an aggregate of 4.5 million common shares of Canadian Palladium to Pavey Ark in accordance with the following schedule.