CALGARY - A dramatic showdown emerged after the second ballot Wednesday resulted in a virtual dead heat as chiefs from the Assembly of First Nations chose their next national leader.

Shawn Atleo, an assembly vice-chief from British Columbia, was barely in first place with 50.36 per cent of the vote. Perry Bellegarde, former leader of the Federation of Saskatchewan Indian Nations, was second with 49.64 per cent.

However, the winner must get at least 60 per cent of the votes cast and the rules call for the voting to continue until that happens or until one of the candidates concedes.

After the first ballot, Atleo had looked like he was pulling into a commanding lead with 43 per cent compared to Bellegarde's 29.

But third-place candidate John Beaucage, grand chief of the Union of Ontario Indians, withdrew when he pulled only 15 per cent of the vote, sending his supporters to Bellegarde's camp.

So did Bill Wilson, a B.C. consultant and veteran of political battles to have native rights in the Constitution. He had only one per cent of the votes while Terry Nelson, chief of the Roseau River First Nation in Manitoba, got 10 per cent.

Both men were knocked out of the race because they did not achieve the 15 per cent minimum required of the 552 votes.

"I guess we're going to another ballot," Bellegarde said calmly as he walked out of the hall.

After the first ballot, Atleo and his team seemed confident of victory. As his initially commanding lead was announced, his supporters, many wearing maroon T-shirts bearing his name, jumped to their feet and cheered so loudly they drowned out attempts to read the other names.

Atleo stopped briefly to talk to reporters before the second ballot commenced, saying he would be reaching out to all regions of the country.

"This has to be about all the chiefs coming together, the notion that no one can be left behind, whether they're from remote, isolated communities or communities closer to the centre of big cities," he said.

Atleo didn't waver from that message when his lead evaporated after the second ballot. He and his team quickly hunkered down and started strategizing, fanning out to approach delegates.

Whoever wins will become the assembly's grand chief and replace Phil Fontaine, who is not seeking re-election after three terms as the organization's leader.

The winner will become the public face of aboriginal negotiations with the federal government and will have to try to balance often-conflicting priorities of natives across the country, both on- and off-reserve.

He'll also have to decide whether to take the organization in a new direction as it struggles for relevance in far-flung communities still waiting for a share of wealth from traditional lands and resources that were never ceded or sold.

Another imminent issue is how to deal with an expected resurgence of the H1N1 virus expected this fall. The swine flu has hit some aboriginal communities particularly hard and challenges include how to get supplies and a vaccine to remote areas already struggling with overcrowding and a lack of running water.

Beaucage, a former economist, has argued for reform of the assembly's elections, saying the vote for national chief should be extended to all First Nations citizens.

He's said that if the assembly doesn't start becoming more relevant and represents everyone, then it probably shouldn't exist.

Bellegarde, a former Saskatchewan chief for the assembly, has said his priorities include pushing Ottawa to lift a yearly funding growth cap of two per cent that is applied to more than $10 billion spent annually on native programs. He argues that amount can't keep up with inflation and native population growth.

Atleo, who at 42 is the youngest of the potential leaders, said he mirrors the growing aboriginal population in Canada.

"I think the demographic in our country amongst the aboriginal population is a youthful one. And certainly the youth are not for the future, they are right now, they are a booming population that must be supported, fully included in our efforts to improve the conditions of our communities."

Most of the 639 chiefs eligible to vote were based in B.C. and the Prairies.