Mr. Frank Hallam reports

PLATINUM GROUP REPORTS Q1 2013 FINANCIAL RESULTS

Platinum Group Metals Ltd. is releasing the company's financial results for the three months ending Nov. 30, 2012. For details of the Nov. 30, 2012, condensed consolidated interim financial statements and management's discussion and analysis, please see the company's filings on SEDAR or on EDGAR. Shareholders are encouraged to visit the company's website. Shareholders may request a copy of the complete Nov. 30, 2012, financial statements from the company free of charge.

The company's cash position at Nov. 30, 2012, was $35.30-million, including approximately $27.08-million in restricted cash. At Jan. 14, 2013, the company's cash position is approximately $211.0-million, including approximately $25.0-million in restricted cash. The company holds cash in both Canadian dollars and South African rand, and changes in the exchange rate may create variance in the cash holdings reported in Canadian dollars.

The company obtained credit approval for a $260-million project loan facility on Dec. 6, 2012, and closed a $180-million equity financing on Jan. 4, 2013 (details below).

Highlights for the quarter ending Nov. 30, 2012:

• A $100-million (U.S.) phase 1 development program is approximately 80 per cent complete at Project 1. A central box-cut excavation has been completed. The sinking of twin declines at the central location is progressing well. Both declines are now advanced to more than 850 metres linear from their collar. Substantial surface infrastructure has now been constructed on site.
• Safety in all the company's operations is its No. 1 priority, and the company is pleased to report that on-site safety performance at Project 1 has been excellent to date, with approximately 1.05 million man-hours worked with a very low lost-time incident rate.
• On Sept. 4, 2012, the company published an inferred mineral resource estimate on the Waterberg project area. The initial inferred mineral resource estimate covers the first 1.8 kilometres of T-layer and 2.8 kilometres of F-layer strike length starting from the southern boundary of the property position. On Nov. 5, 2012, the company announced that new drill intercepts had approximately doubled the known strike length of the Waterberg project. The F layer has now been intercepted in boreholes up to 2.7 kilometres north of the initial mineral resource area. The company published an updated technical report entitled "Updated Exploration Results and Mineral Resource Estimate for the Waterberg Platinum Project, South Africa," on Nov. 23, 2012.
• On Sept. 5, 2012, the company received notice from Rustenburg Platinum Mines Ltd., a wholly owned subsidiary of Anglo American Platinum Ltd., that RPM would exercise its 60-day right of first refusal to purchase the off take of concentrate from Project 1 on terms equivalent to terms agreed with another commercial off taker. Formal legal agreements are currently in process of being drafted based on the third party indicative terms described above. The indicative terms from the other commercial off taker do not vary substantially from the terms modelled in the updated feasibility study on Project 1 entitled "Updated Technical Report (Updated Feasibility Study), Western Bushveld Joint Venture, Project 1 (Elandsfontein and Frischgewaagd)," dated Nov. 20, 2009, with an effective date of Oct. 8, 2009.

Results for the period

During the three months ended Nov. 30, 2012, the company incurred a net loss of $1.82-million (Nov. 30, 2011 -- net loss of $5.32-million). General and administrative expenses during the period amounted to $780,000 (Nov. 30, 2011 -- $1.31-million); losses on foreign exchange, due primarily to a weaker rand at period-end, were $210,00 (Nov. 30, 2011 -- loss $3.18-million); while stock-based compensation expense, a non-cash item, totalled $1.16-million (Nov. 30, 2011 -- $1.91-million). Finance income consisting of interest earned and property rental fees in the three months amounted to $590,000 (Nov. 30, 2011 -- $1.08-million). Loss per share for the period amounted to one cent per share, as compared with a loss of three cents per share for the comparative period of fiscal 2012.

Accounts receivable at Nov. 30, 2012, totalled $1.98-million while accounts payable and accrued liabilities amounted to $6.26-million. Accounts receivable were composed primarily of value-added taxes repayable to the company in South Africa. Accounts payable included accrued professional fees, contract construction fees, drilling expenses, engineering fees and regular trade payables for continuing exploration and development costs and administration.

Total expenditures by the company for development and purchases of property and equipment for Project 1 during the period totalled $9.0-million, before including the effects of foreign currency exchange rate fluctuations. Expenditures by the company during the three-month period for exploration on Waterberg were approximately $3.23-million, of which $1.15-million was financed by joint venture partner Japan Oil, Gas and Metals National Corp.

Outlook

The completion of a $180-million equity financing and the credit approval for a $260-million project loan launches the company into phase 2 construction for the WBJV Project 1 and provides the company's share of a $10-million exploration budget for the Waterberg joint venture.

On Dec. 6, 2012, the company announced the receipt of credit committee approval for a $260-million (U.S.) project loan facility by a syndicate of four international banks. The maturity date of the project loan facility is expected to be Aug. 31, 2020. Closing and drawdown of the project loan facility is now subject to the negotiation and execution of final documentation and satisfaction of certain conditions precedent, which will include the company and Wesizwe providing a tranche of equity capital into Project 1, a cost overrun facility and a working capital provision.

On Dec. 10, 2012, and Dec. 12, 2012, the company announced and then priced an offering of 225 million common shares at a price of 80 cents per common share, for aggregate gross proceeds of $180-million. Closing of the offering occurred on Jan. 4, 2013, for net proceeds to the company of $169,565,000, after underwriters' fees and the estimated expenses of the offering. The company had granted the underwriters an option, exercisable for a period of 30 days following the closing of the offering, to purchase additional common shares representing an additional 15 per cent of the offering to cover overallotments. Subsequent to the closing of the offering, the company has been notified by the underwriters that the underwriters will not be exercising any of the overallotment option. Net proceeds of the offering will be used to partially finance the development of Project 1, as described above and below; for the company's share of exploration and engineering work at Waterberg; and for general working capital purposes.

At Waterberg, 10 rigs are now resuming drilling after having been shut down over the Christmas break. An updated resource estimate for Waterberg is in process. Approximately 46 holes have now been drilled, including an additional 30 holes since the cut-off for the initial inferred mineral resource announced on Sept. 4, 2012. Assay results for many holes are pending at this time. A $10.0-million (U.S.) program has been approved for 2013 at Waterberg by the joint venture partners for drilling, geophysics and the completion of a preliminary economic assessment report.

The company's key business objectives for 2013 and into 2014 will be to continue with the underground development and mine construction at Project 1 and to continue exploration at the Waterberg project. The expected grant of additional pending exploration permits at Waterberg would allow exploration efforts on that project to expand both up dip and along strike from the known deposit area. Closing and drawdown of the planned project loan facility are expected to finance the completion and commissioning of Project 1.

The company will invest from current cash on hand for the commencement of phase 2 construction. Work to complete final loan documentation and final off-take agreements is in process. Drawdown from the project loan facility is planned following completion of all final documentation, conditions precedent and the required project equity investment by the company. Phase 2 will include a second decline access south of the current twin decline development, underground lateral development, a milling and concentrating facility, and tailings impoundment area. Central decline development is now more than 850 metres linear into the underground, and a second box-cut excavation for south decline access is now nearly complete and ready for the turn under into underground development. Plant and facility construction and commissioning are estimated to take up to two years to complete. Full commercial production at steady state is estimated to occur after a two-year ramp-up period subsequent to the commissioning of the plant, planned to commence in late 2014.

Qualified person

Michael Jones, PEng, the company's president, chief executive officer and a significant shareholder of the company, is a non-independent qualified person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and is responsible for preparing the technical information contained in this news release.

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