Mr. R. Michael Jones reports

PLATINUM GROUP METALS LTD.: 10 MILLION OUNCE PLATINUM, PALLADIUM AND GOLD INFERRED UPDATED MINERAL RESOURCE AT WATERBERG

Platinum Group Metals Ltd. has released an updated 10-million-ounce 3E (platinum, palladium and gold) inferred mineral resource estimate for the Waterberg joint venture property. The current resource covers only 250 metres of influence updip and eastward into a new permit granted in January, 2013. The deposit remains open along strike onto permits under application as well as updip. Drilling continues and has been ramped up from 10 to 15 drill rigs, largely focused on the updip potential of the deposit.

Over all, with drilling in late 2012, the estimated resource has been expanded by 51 per cent. The total deposit grade has increased slightly, and the average thickness has increased from 4.1 metres to 4.6 metres thick on the four layers in the resource estimate. The metal ratios of platinum, palladium and gold have remained generally consistent with initial resource estimate in 2012.

The total resource contains 10.12 million ounces platinum, palladium and gold (3E) in 92.93 million tonnes with the shallowest part of the deposit in the T zone at 124 metres deep and the deposit cut-off at 1,000 m deep as a preliminary economic cut-off. The updated inferred mineral resource estimate covers the first 2.8 kilometres of T zone and 5.4 kilometres of F zone strike length.

                          Mineral resource estimate                         
                                 Feb. 1, 2013                               

                      Stratigraphic   Tonnage     Pt     Pd     Au   2PGE+Au
                          thickness        Mt  (g/t)  (g/t)  (g/t)     (g/t)

T1                             2.58      4.33   0.91   1.37   0.52      2.80
T2                             4.08     25.46   1.07   1.87   0.78      3.72
T total                        3.76     29.78   1.05   1.79   0.75      3.59
FH                             4.02      7.19   1.09   2.37   0.20      3.66
FP                             5.46     55.95   1.01   2.10   0.14      3.25
F total                        5.24     63.15   1.02   2.13   0.15      3.29
Combined total                 4.63     92.93   1.03   2.02   0.34      3.39
Content (koz)                                  3,071  6,040  1,009          

                                    2PGE+Au                                 
                       Pt:Pd:Au       (koz) Cu (%) Ni (%)    Cu (t)   Ni (t)

T1                     32:49:19         390   0.21   0.11     9,200    4,900
T2                     29:50:21       3,045   0.17   0.09    44,000   22,600
T total                29:50:21       3,435   0.18   0.09    53,200   27,500
FH                      30:65:6         847   0.10   0.22     6,900   15,500
FP                      31:65:4       5,838   0.06   0.16    33,400   91,600
F total                 31:65:4       6,685   0.06   0.17    40,300  107,100
Combined total         30:60:10      10,120                                 

Inferred mineral resource, dated Feb. 1, 2013, Ken Lomberg, Coffey Mining,
independent qualified person

Based on drilling to date, an interpreted erosional feature of the Waterberg sediments into the newly discovered lobe of the Bushveld complex limits part of the eastern T zone extension near surface. Additional T zone potential is open to the west and north of the current area of drilling. F zone exploration drilling from approximately 300 metres deep updip toward surface is in progress.

The inferred mineral resource estimate includes two T and two F mineralized layers. The most important layers are the 4.1-metre-thick T2 and 5.5-metre-thick FP layers. The T layers are very well correlated in terms of geochemical markers and lithology, and have a characteristic metal split of approximately 50 per cent palladium, 29 per cent platinum and 21 per cent gold. The F layers are approximately 5.2 metres thick on average, having an approximate metal split of 65 per cent palladium, 31 per cent platinum and 4 per cent gold.

The Waterberg deposit has excellent potential to be mined by highly efficient mechanized methods, and the initial deposit depths are amenable to a decline ramp rather than vertical shafts.

For the initial and the current resource models, the T and the F layers have been modelled to a cut-off depth of 1,000 metres below surface. Mineralization below this depth has not been included in the current resource estimate. Significant mineralized intercepts have been returned below this depth, up to 1,300 metres deep. The 1,000 metre cut-off depth will be re-evaluated during a preliminary economic assessment planned for 2013.

Platinum Group, with a 49.9-per-cent direct and indirect interest in the Waterberg property, made the discovery in partnership with the Japan Oil, Gas and Metals National Corporation (Jogmec). Jogmec holds a direct 37-per-cent interest in the Waterberg property with a balance of approximately 13.1 per cent of the project being held by black empowerment interests. Platinum Group is the operator of the project. Jogmec has now approved its participation in an initial $10.0-million (U.S.) exploration program for 2013.

R. Michael Jones, president and chief executive officer of Platinum Group, said: "The Waterberg discovery of near-surface, thick platinum is very opportune at a time of shrinking global production of platinum from the conventional mines. As we continue to drill for resource expansion we will commence a preliminary economic assessment on the initial 10 million ounces. Our teams have now completed the design of the WBJV project 1 mine now in construction and are excited to begin their work on initial mine designs for Waterberg."

Inferred mineral resource estimate details

The mineral resource estimate was completed by Mr. Lomberg (SACNAPS 400038/01) of Coffey Mining. Coffey Mining is a well-established international Mining consultancy with offices in Australia, Africa, North America and South America.

The inferred mineral resource estimate was prepared using an inverse-distance-squared approach and a seam model for each layer. Approximately 20 boreholes and a total of 106 intersections on the different layers for the T zone, and 30 boreholes and a total of 101 intersections on the F zone were used in calculating the inferred mineral resource estimate.

The basis of the estimates are the identified cuts of the layers. The layers were initially defined based on their geochemical signatures and checked against the core to ensure continuity especially between deflections of the same boreholes. The cuts were also defined based on the geology and marginal cut-off grade of 0.1 g/t PGM, 3E, and a minimum thickness of two metres.

A cut-off grade of 2.0 g/t was applied to the block model for the T1 and FH layers. Note that totals may not sum exactly due to rounding.

Qualified person, quality control and assurance, verification

Mr. Lomberg is the independent (as defined in National Instrument 43-101) qualified person (QP) for the inferred mineral resource estimate presented here, and he has approved this disclosure. He is based in South Africa, and has 27 years of relevant experience in resource estimation and mining project evaluations in many platinum projects and mines. He has verified the data by visiting the project site, reviewing the core, checking the assay data, checking resource model cuts on the core, viewing the assay certificates on a test basis and assisting with the geology interpretation, and reviewing the 3-D deposit model generated in Datamine by Thys Botha, the non-independent qualified resource estimation geologist and exploration manager for Platinum Group Metals RSA Pty. Ltd. Mr. Lomberg is satisfied that the confidence of the data, the geological interpretation and estimate are sufficient for the calculation of an inferred mineral resource estimate.

Quality control and assurance was completed in the normal process for Platinum Group Metals RSA Pty Ltd. Standards, duplicates and blanks were inserted regularly in every assay batch. These assay results were checked, and any results outside of two standard deviations were reassayed. Strict control and documentation on the core from the drill rig to the site and the assay samples to the lab were maintained at all times under a chain-of-custody sign-off system. The platinum group elements were assayed by fire assay using a nickel sulphide collection method at Setpoint Laboratories, Johannesburg, a South African National Accreditation System-accredited laboratory.

Inferred mineral resource estimates, under the Canadian Institute of Mining, Metallurgy and Petroleum guidelines, do not have demonstrated economic viability and may never achieve the confidence to be mineral reserve estimates or to be mined. An inferred resource has reasonably assumed continuity based on limited sampling, but the geological and grade continuity has not been verified. The property is held under a prospecting right with the exclusive right to convert that right to a mining right. There can be no assurance that a mining right will be granted without extensive further work and an application to the Department of Mineral Resources of South Africa.

We seek Safe Harbor.