Mr. R. Michael Jones reports

PLATINUM GROUP METALS LTD.: WBJV PROJECT 1 SENIOR LOAN FACILITY CREDIT APPROVED

A syndicate of lead arrangers has now obtained credit committee approval for a $260-million (U.S.) senior loan facility for the construction of Platinum Group Metals Ltd.'s WBJV project 1 platinum mine. The credit approval is not subject to further syndication prior to closing. Closing and drawdown of the loan facility will now be subject to the negotiation and execution of final documentation and satisfaction of conditions precedent.

The syndicate of lead arrangers consists of Barclays Bank PLC, together with its affiliate Absa Capital, Caterpillar Financial SARL, Societe Generale and the Standard Bank of South Africa Ltd. This syndicate of banks has a global presence, direct platinum industry experience and includes two of South Africa's major banks.

While working with the lending group to finalize the loan facility, the company has been executing a $100-million (U.S.) phase 1 development program to complete surface and infrastructure requirements and begin construction on twin declines into the orebody. A mining right for the WBJV project 1 was granted in April, 2012, and underground development and construction have been in progress since 2011. Phase 1 is now approximately 80 per cent complete.

The key terms of the credit approved loan are:

• A $260-million (U.S.) senior loan with a term of eight years;
• Interest rates payable on the balance of the loan withdrawn at a rate of LIBOR (London interbank offered rate) plus 5.0 per cent precompletion, LIBOR plus 4.75 per cent for two years postcompletion and LIBOR plus 5.25 per cent from two years postcompletion until maturity;
• An ability to pay the loan down early in tranches;
• An agreed hedging strategy focused on byproduct metals palladium, gold and base metals.

Company president and chief executive officer, R. Michael Jones, commented: "The receipt of credit approval for a $260-million (U.S.) loan is a clear indication of the quality of the WBJV project 1 asset. The international bank approval is an important indicator for Platinum Group Metals Ltd. and South Africa that the platinum industry is open for business. The shallow, good grade deposit at project 1 is targeted for first production in 2014 and indications are quite positive for the platinum market at that time."

Company chief financial officer, Frank Hallam, stated: "After more than a year of work to obtain this credit approval, we are all very excited to move forward. It's very satisfying to see this project become a reality."

Conditions precedent to draw down required by the lending group will include the company and 26 per cent project holder Wesizwe Platinum Ltd. providing a tranche of equity capital, a cost overrun facility and a working capital provision. Platinum Group owns 74 per cent of the WBJV project 1. Wesizwe is 45 per cent owned by Jinchuan Group of China and the China Africa Development Fund.

The company is also currently drilling with 10 rigs at the Waterberg discovery on the North Limb of the Bushveld complex.

We seek Safe Harbor.