Mr. Michael Jones reports

MINING RIGHT GRANTED FOR WBJV PROJECT 1 PLATINUM MINE

The Department of Mineral Resources (DMR) of South Africa has today notified Platinum Group Metals Ltd. in writing that a mining right for the WBJV project 1 platinum mine has been issued.

This mining right is an important milestone and Platinum Group Metals now moves forward in a strong position. The WBJV project 1 platinum mine is modelled to produce 275,000 4E ounces (platinum, palladium, rhodium and gold) per year at a steady state. The mine, located north of Rustenburg, is scheduled for a 22-plus-year mine life and will employ approximately 2,300 people. Maseve Investments 11 Pty. Ltd. is the mine operating company and is 74 per cent owned by Platinum Group Metals and 26 per cent by JSE (Jamaica Stock Exchange)-listed Wesizwe Platinum Ltd.

Together, Platinum Group Metals and Wesizwe have already commenced and financed a $100-million (U.S.) equity investment into the WBJV project 1 involving site establishment and underground development to reach ore, under a bulk-sample permit from the DMR. A project finance debt facility for $260-million (U.S.) is in progress to finance expanded underground development and construct a milling, concentrating and tailings treatment facility. The total capital cost estimate for the project, including the $100-million (U.S.) investment now in progress, is $443-million (U.S.) (UFS technical report, 2009, SEDAR).

The mining right has been issued in terms of Section 23(1) of the Mineral and Petroleum Resources Development Act (2002) and will be registered at the Mining and Petroleum Titles Registration Office in South Africa. Mining will be subject to environmental authorizations, water use licences and compliance to other legislation on a continuing basis.

R. Michael Jones, president and chief executive officer of Platinum Group Metals, said: "We are very pleased to be granted a mining right and it provides the opportunity to move forward to the next steps in mine construction and development. We have a shallow high-grade platinum deposit at an exciting time for platinum. We also recognize that the mining right is a responsibility to develop the mine safely for the maximum benefit of all the stakeholders. By developing this new mine safely and efficiently, we plan to achieve the best return for shareholders, local communities and government."

The project 1 platinum mine has been under development since May of 2011 and has achieved an excellent safety record to date. The project has successfully involved a significant part of its work force from local communities, even during initial contracting work, and this effort will continue.

Mlibo Mgudlwa, vice-president of Platinum Group Metals RSA Pty. Ltd., said: "The mining right process is very thorough on environmental matters, social and labour plans and the mine work program. All participants, including government, communities and interested parties, were engaged and the process was efficiently administered by the DMR. Our application was processed over a 12-month period by the DMR and stands as a positive example of the service delivery efforts spoken about by the Minister of Mineral Resources just over a year ago."

Next steps and milestones

• Commencement of the south box cut for underground access planned for the second quarter of calendar 2012;
• Offtake arrangements for concentrate planned for the second quarter of calendar 2012;
• Completion of a $260-million mandated senior loan facility planned for the second quarter of calendar 2012;
• Commencement of phase 2 construction planned for the second quarter of calendar 2012.

Qualified person

The non-independent qualified person for this news release is R. Michael Jones, PEng. He is non-independent and the company CEO and a significant shareholder of the company. He has relevant supervision experience in South Africa since 2002. He has verified the data through checking the calculations, visually checking selected samples of the core and by visiting with the qualified employees that have completed the work in South Africa. Assaying is by standard fire assay methods and the lab and quality analysis/quality control procedures include blanks, standards and chain of custody processes and previously reported. The qualified person for the 2009 UFS is Gordon Cunningham.

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