Canadian Palladium Resources Inc. has received new assay results for recently completed diamond drill holes on the Company's East Bull Palladium Deposit, located 90 km west of Sudbury, Ontario (the "Property"). These holes extend the East Bull Deposit on strike for approximately 250 m to the east. Additionally, the Company announced that a metallurgical test work program on the mineralization is in progress.

The Valhalla Zone palladium mineralization is primarily hosted within a 45-degree-north-dipping vari-textured melagabbro unit near the basal contact of the East Bull gabbro. Drilling has successfully focused on testing the strike and downdip extensions of this contact-type mineralization that is typically tens of metres thick. The diamond drill holes were all drilled at an azimuth of 180o with inclinations of -60o.

Reported widths are drilled widths. True widths estimated to be 90% of the intersections for the Valhalla Zone. In addition to results reported here, rhodium is being analyzed and will be reported at a later date.

This is the first metallurgical study of the Company's East Bull Deposit. A mineralogical study completed for a previous operator identified the major sulphide minerals as pyrrhotite, chalcopyrite, pentlandite, and pyrite with associated platinum group minerals (PGM) and native gold. The PGM include kotulskite (PdTe), froodite (PdBi2), merenskyite (PdTe2), michenerite (PdBiTe), sperrylite (PtAs2), platarsite (PtAsS), and hollingworthite (RhAsS).

Since the PGM are closely associated with the major sulphide minerals, flotation of a sulphide concentrate is being evaluated to recover precious metals.