Mr. R. Michael Jones reports

PLATINUM GROUP'S WATERBERG PERMIT EXPANSION GRANTED; DRILLS MOVED TO SHALLOW DEPOSIT EDGE

The South African Department of Mineral Resources has granted a 1,600-hectare (16-square-kilometre) expansion of the prospecting permit covering the Waterberg discovery on the North limb of the Bushveld complex of Platinum Group Metals Ltd., allowing anticipated drilling on the updip portion of the Waterberg deposit to commence.

Newly discovered in 2012, the Waterberg deposit is believed to continue updip eastward toward surface, based on structural modelling, geophysics and satellite imagery. Previous drilling at Waterberg, on the boundary with the new permit, intersected the T layers at approximately 130 metres from surface and the F layers at approximately 300 metres deep. Ten drill rigs are now being moved eastward onto the new permit. Given the expected shallow nature of the deposit heading updip, the company expects that multiple boreholes will be completed quickly.

The Waterberg deposit has an initial resource of 6.6 million ounces 4E (platinum, palladium, rhodium and gold, see details herein). A resource update is in progress and is expected in first quarter of calendar 2013.

Waterberg was named Global Exploration Discovery of the Year at the prestigious Mining Journal Outstanding Achievement Awards in December, 2012, part of the Mines and Money conference in London.

R. Michael Jones, president and chief executive officer of Platinum Group Metals, said: "The expansion of the Waterberg property by grant of this new permit is very timely. Our equity financing for $180-million, which closed on Jan. 4, 2013, included plans for a $10.0-million exploration program for the Waterberg joint venture. We are now able to focus a considerable drilling effort with 10 rigs. If the efforts on the new permit are successful on extending the deposit near to surface, additional drill rigs will be added. We are very excited about the potential at Waterberg."

The Waterberg deposit is in a newly discovered part of the Bushveld complex. The deposit is unusual in that it has thick layers coming near to surface, potentially amenable to mechanized mining. Recent announcements of mine closures based on declining Merensky layer availability, labour cost increases and depths are juxtaposed against the characteristics of the new open Waterberg discovery.

Platinum Group Metals has a 49.9-per-cent effective interest in the Waterberg joint venture, and Japan Oil, Gas and Metals National Corp. has a 37-per-cent interest with the effective balance held by a BEE company. Platinum Group holds an effective 87-per-cent interest in further pending prospecting permit applications over ground immediately to the north of the joint venture prospecting permits. Recent drill results include an intercept on the F layer of 16.5 metres grading 4.4 grams per tonne 3E (1.32 grams per tonne platinum, 2.87 grams per tonne palladium and 0.21 gram per tonne gold) at the northern joint venture boundary. The on-strike extension prospecting permit applications are expected to be granted shortly. Results from the pending resource calculation update on the joint venture ground, combined with the current drilling, will allow for the planning of an additional exploration program northward along strike on the 87-per-cent-owned permits.

            INITIAL RESOURCE DETAIL WATERBERG PROJECT 
                        (SEPTEMBER, 2012)
                 Thick-                                                    
        Tonnage   ness    Pt    Pd    Au 2PGE+Au Pt:Pd:Au 2PGE+Au   Cu   Ni
Layer       (mt)    (m) (g/t) (g/t) (g/t)   (g/t)      (%)   (Koz)  (%)  (%)

T1        10.49   2.85  0.77  1.27  0.51    2.55 30:50:20     863 0.17 0.10
T2        16.25   3.46  1.10  1.82  0.92    3.84 29:47:24   2 001 0.18 0.09
Total                                                                      
T layer   26.74   3.19                      3.33            2 864          
FH        18.10   4.63  0.80  1.48  0.09    2.37  34:62:4   1 379 0.03 0.12
FP        23.20   5.91  1.01  2.00  0.13    3.14  32:64:4   2 345 0.04 0.11
Total                                                                      
F layer   41.30   5.27                      2.80            3 721          
Total                                                                      
Project   68.04                                             6 586          

Ken Lomberg, qualified person. See report on SEDAR dated Oct. 10, 2012,
for detail.

Qualified person

Mr. 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. He has satisfactorily verified the data supplied from the project team of qualified technical personnel, by property visits and interaction with the independent qualified person for the resources at Waterberg. Quality assurance and control information is as reported previously.

We seek Safe Harbor.