Mr. Michael Jones reports

PLATINUM GROUP METALS LTD.: ANGLO AMERICAN EXERCISES FIRST RIGHT OF REFUSAL FOR PLATINUM CONCENTRATE OFF-TAKE FROM WESTERN BUSHVELD PROJECT 1

Rustenburg Platinum Mines Ltd., a wholly owned subsidiary of Anglo American Platinum Ltd., has exercised its first right of refusal to purchase the off-take of concentrate from Platinum Group Metals Ltd.'s Western Bushveld Project 1 platinum mine. Project 1 is owned 74 per cent by Platinum Group and 26 per cent by Wesizwe Platinum (WEZ-JSE; 45 per cent owned by Jinchuan Group of China).

Anglo Platinum's decision to exercise its right demonstrates that the planned 275,000 ounces per year of platinum, palladium, rhodium and gold in concentrate from Project 1 is attractive in the current market. Project 1 has an estimated mine life in excess of 20 years and construction is in progress with first production planned in 2014. Project 1 hosts a shallow, high-grade, Merensky orebody accessible by decline tunnels that are currently in progress. Sulphide Merensky-reef ore is more desirable than ore from the chromite-rich UG2 reef. Merensky-based concentrates are typically higher grade, easier to smelt and offer better recoveries.

Under the terms of a transaction in 2010, the property interests of the joint venture were reorganized so that Platinum Group acquired 74 per cent of Project 1 and Project 3, while Wesizwe gained 100-per-cent control of Project 2 and 26 per cent of Project 1 and Project 3. In exchange for the interests, Anglo Platinum acquired a significant shareholding in Wesizwe and retained a 60-day first right of refusal for purchase of concentrate or ore from the former properties of the joint venture.

Following a competitive tender process, in July, 2012, Platinum Group Metals received terms for smelter off-take for Project 1 that were attractive to the venture, and Anglo's 60-day right of refusal was triggered. A formal off-take agreement is a condition precedent for a planned $260-million (U.S.) project financing package, which is in the final stages of completion. The project loan mandate is led by Barclays Bank PLC, Absa Capital, to which it is affiliated, Standard Bank and Caterpillar Financial.

Michael Jones said: "We have a long-term positive relationship with Anglo Platinum and we look forward to completing the detailed agreements for off-take promptly. This is another important milestone completed for all stakeholders, including shareholders, communities and government. Our near-surface deposit provides planned near-term Merensky concentrate at a time when production is struggling across the industry."

We seek Safe Harbor.