Mr. R. Michael Jones reports

PLATINUM GROUP METALS AND JAPANESE PARTNER CONSOLIDATE WATERBERG PGM DISTRICT

The Japan Oil, Gas and Metals National Corp. has committed to finance the next $20-million (U.S.) of the Waterberg joint venture, of which Platinum Group Metals Ltd. now holds 58.624 per cent. In conjunction with JOGMEC's firm financing commitment, Platinum Group Metals, JOGMEC and empowerment partner Mnombo Wethu Consultants (Pty.) Ltd. have agreed to consolidate the Waterberg joint venture and the Waterberg extension projects into one unitized project area (the new Waterberg JV). As a result of the consolidation announced today, and with the financing provided by JOGMEC, approximately 15 drill rigs and crews will immediately be returned to active status at the Waterberg site.

Agreed new Waterberg JV ownership interests:

• Platinum Group Metals: 58.62 per cent (1);
• JOGMEC: 28.35 per cent;
• Mnombo: 26.00 per cent.

Platinum Group Metals will increase its direct and indirect effective interest in the old Waterberg joint venture area from 49.98 per cent currently to 58.62 per cent. Platinum Group will decrease its effective interest the old Waterberg extension from 87 per cent to 58.62 per cent. JOGMEC will decrease its interest in the old Waterberg joint venture from 37 per cent to 28.35 per cent and increase its interest in the old Waterberg extension from zero to 28.35 per cent.

Based on the most recent declared resource estimate for the Waterberg joint venture and the Waterberg extension, as at June, 2014, the exchange of interests described herein are ounce neutral in that each party is exchanging the same number of inferred resource ounces. Platinum Group Metals will retain operatorship of the consolidated project and achieves a majority effective interest in the overall project.

In consideration of the further resource potential in the less explored old Waterberg extension, JOGMEC has committed to finance a total of $20-million (U.S.) of exploration and development expenditures for the combined project over three years. The JOGMEC-financed budget to March 31, 2016, is $8.0-million (U.S.) for the entire new Waterberg JV, including fill-in drilling, extension exploration drilling and prefeasibility engineering.

"Today's agreement enhances our long-standing strategy of advancing shallow, high-grade, low-cost projects to create significant and sustainable value for our shareholders," said Platinum Group Metals chief executive officer, R. Michael Jones. "The consolidation of the Waterberg project eliminates project boundaries; reduces development, administration and infrastructure costs; creates strong efficiencies; and enables the most economic development of the deposit. The unified ownership structure also allows for superior mine planning and scheduling focused on the early exploitation of higher-grade tonnes of super-F mineralization, which may be planned with lower-cost mechanized processes in the ongoing prefeasibility study."

Details

JOGMEC will finance the entire $8.0-million (U.S.) budget planned for the period ending March 31, 2016, and will then finance the first $6.0-million (U.S.) of all planned programs in each of the next two years ending March 31, 2017, and 2018. A budget in excess of $6.0-million (U.S.) may be proposed by PTM for pro rata participation, following the JOGMEC financing in years two and three of the agreement.

All Waterberg prospecting rights and applications will now be contributed into a new operating corporation, Waterberg JV Resources (Pty.) Ltd., to be owned 45.65 per cent by the company, 28.35 per cent by JOGMEC and 26 per cent by Mnombo. (PTM holds 49.9 per cent of Mnombo). The ownership of the new operating company will be governed under participating shareholders agreement.

Updated resource estimate and prefeasibility study continuing

The Waterberg deposit was discovered by the joint venture in a newly identified section of the Bushveld complex. The deposit has the key features of being near surface, at 140 metre deep to the shallowest edge, and having thickness from three metres to 60 metres. This is in contrast to the conventional Bushveld deposits, many of which are in excess of 1,000 meters deep and one metre thick. The Waterberg deposit has been divided into the Waterberg 1, 2 and 3 domains. Each domain represents approximately five kilometres of strike length. The June, 2014, Waterberg resource estimate is 29.07 million inferred ounces over approximately the first 10 kilometres of strike length (100-per-cent basis, inferred 287 million tonnes grading 3.15 grams per tonne 4E (0.94 g/t platinum, 1.92 g/t palladium, 0.04 g/t rhodium and 0.25 g/t gold, 30 per cent, 61 per cent, 1 per cent, 8 per cent, respectively)). See technical report on SEDAR filed Dec. 19, 2014. Of these resources, approximately 22.3 million ounces are hosted on the old Waterberg joint venture area while the balance of 6.8 million ounces reside on the old Waterberg extension area.

A total of 71,000 metres of largely infill drilling on the old joint venture area has been completed since June, 2014. A resource update covering the entire Waterberg deposit area is in progress and remains due to be completed in calendar second quarter 2015.

The primary objective of the planned 2015 drilling will be to increase the confidence level of known areas of super-F mineralization on the southern portion of the old Waterberg extension area, as well as downdip from these locations onto the old joint venture area. Additional areas of T zone mineralization will also be drilled targeting a level of detail for the indicated category. Recent intercepts of good-grade-thickness super-F, above-400-metre depth, will be followed up as part of the immediate drill campaign. Drilling to prospect the open F zone mineralization for the best grade thickness of the new deposit type will continue.

A further updated resource estimate for the new Waterberg JV over all is expected in approximately September, 2015, prior to the completion of a prefeasibility study on the entire unitized Waterberg deposit.

Qualified person, quality control and assurance

Mr. Jones, PEng, is the non-independent qualified person who has reviewed and verified the technical information disclosed in this press release. He has relevant experience in precious metals and platinum evaluations and has verified the data by reviewing the detailed assay and geological information on the Waterberg deposit and visiting the site and core yard many times from 2011 through 2015.

Base metals and other major elements were determined by multiacid digestion with ICP finish, and PGEs were determined by conventional fire assay and ICP finish. Setpoint Laboratories is an experienced ISO 17025 SANAS-accredited laboratory in assaying and has utilized a standard quality control system including the use of standards. Platinum Group Metals utilized a well-documented system of inserting blanks and standards into the assay stream and has a strict chain-of-custody and independent lab recheck system for quality control. These standards are detailed in the technical report dated Dec. 19, 2014, referred to herein.

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 continuity and grade continuity have not been verified. The property is held under prospecting rights 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.

About the Waterberg projects

The new Waterberg joint venture is now 58.624 per cent effectively held by Platinum Group Metals directly and indirectly. JOGMEC is an active participant in the new Waterberg JV along with South African empowerment partner Mnombo Wethu Consultants. The Waterberg deposit was discovered in late 2011 by the joint venture partners and has grown dramatically over the past few years to be a globally significant deposit.

About JOGMEC

JOGMEC was formed in February, 2004, with the purpose of contributing to stable supplies of oil, natural gas and metals through the integration of the former Japan National Oil Corp. and Metal Mining Agency of Japan. JOGMEC provides financial and technical support to early-stage exploration and development projects carried out by Japanese companies, as well as in partnership with overseas national corporations and private companies, aiming to hand over its interests to Japanese companies at a later stage.

(1) 45.65 per cent directly and 12.97 per cent indirectly through Mnombo

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