Mr. Frank Hallam reports

PLATINUM GROUP METALS LTD. REPORTS THIRD QUARTER RESULTS

Platinum Group Metals Ltd. has released the company's financial results for the nine-month period ended May 31, 2023, and has provided an update and outlook. The company is focused on advancing the Waterberg project located on the Northern Limb of the Bushveld complex in South Africa. The Waterberg project is planned as a fully mechanized, shallow, decline access palladium, platinum, gold and rhodium (4E) mine and is projected to be one of the largest and lowest-cost underground platinum group metals (PGM or PGMs) mines globally.

The company's near-term objectives include the advancement of the Waterberg project to a development and construction decision, including the arrangement of construction financing and concentrate offtake agreements. The company is also advancing an initiative through Lion Battery Technologies Inc. using platinum and palladium in lithium battery technologies in collaboration with Anglo American Platinum Ltd. and Florida International University (FIU).

For details of the condensed consolidated interim financial statements for the nine-month period ended May 31, 2023, and management's discussion and analysis for the nine-month period ended May 31, 2023 (the MD&A), please see the company's filings on SEDAR or on EDGAR. Shareholders are encouraged to visit the company's website. Shareholders may receive a hard copy of the complete financial statements from the company free of charge upon request.

All amounts herein are reported in United States dollars unless otherwise specified. The company holds cash in Canadian dollars, United States dollars and South African rand. Changes in exchange rates may create variances in the cash holdings or results reported.

Recent events

On June 21, 2023, the company reported that Lion Battery Technologies Inc. had engaged The Battery Innovation Center (BIC) in Newberry, Ind., to help drive commercialization of its next-generation platinum- and palladium-based battery chemistries. Lion is advancing both proprietary lithium-sulphur and enhanced lithium-ion (NMC) technology using the unique catalytic properties of platinum and palladium. Under a scope of work, the BIC will conduct independent small- and large-scale trials to validate Lion's proprietary platinum- and palladium-based electrode composition, slurry and films in both lithium-sulphur and lithium-ion (NMC811) coin and pouch cells. Collaboration with BIC will also include additional research and development focused on improving performance and scale-up with the goal of creating prototypes for commercialization consideration in 2024. Lion's target is to develop batteries with specific energies that are 20 per cent to 100 per cent higher than current technologies while meeting or exceeding their present cycle lives.

On June 9, 2023, the company reported that the Japan Organization for Metals and Energy Security (JOGMEC) and Hanwa Co. Ltd. had established a special purpose company, HJ Platinum Metals Ltd. (HJM), to hold and finance their future equity interests in the Waterberg project. The combined interests of JOGMEC (12.195 per cent) and Hanwa (9.755 per cent) were consolidated into a 21.95-per-cent interest for HJM going forward, with JOGMEC to finance 75 per cent of future equity investments into HJM and Hanwa the remaining 25 per cent.

On May 17, 2023, the company reported that exploration borehole WE153 had intercepted platinum group metals mineralization consistent with both the T zone and F zone as found within the mineral resources and reserves of the Waterberg project. Borehole WE153 was collared on prospecting rights owned by Waterberg JV Resources Pty. Ltd. located adjacent to the north of the Waterberg project mining right. See the company's May 31, 2023, MD&A for full details and assay results.

On March 30, 2023, the company reported positive results from a completed infill drill campaign at the Waterberg project. Assay results for sixteen planned F zone boreholes were disclosed. During February, 2023, recovered drill cores were logged and mineralized intercepts were sampled and sent for assay by Intertek Genalysis Minerals in Australia. Results will be incorporated into a definitive feasibility study update now under way and described more fully herein.

On March 24, 2023, the directors, and shareholders of Waterberg JV Resources Pty. Ltd. approved a stage two budget of $3.6-million for continued work on the Waterberg project. The stage two budget, covering the period from April 1, 2023, to Aug. 31, 2023, is a subcomponent of the $21-million work program (as defined herein) approved in principle on Oct. 18, 2022.

On Feb. 21, 2023, the U.S. Patent and Trademark office issued FIU a fifth patent, No. 11,588,144 B2, entitled "Battery Cathodes for Improved Stability." The patent involves the fabrication of cathodes using palladium as a catalyst in carbon nanotubes. The carbon structure provides a barrier between the catalyst and the electrolyte, thereby increasing the stability of the electrolyte during charging and discharging of a battery. Further patents are currently applied for. Under an agreement between Lion and FIU, Lion has exclusive rights to all intellectual property being developed by FIU including the patents granted.

On Jan. 26, 2023, the company reported positive results from the infill drill campaign at the Waterberg project. Assay results for sixteen planned T zone boreholes and one of 16 planned F zone boreholes were disclosed. Recovered drill cores were logged and mineralized intercepts were sampled and sent for assay by Intertek Genalysis Minerals in Australia.

On Nov. 10, 2022, the South African Supreme Court of Appeal dismissed an Aug. 31, 2022, application by Africa Wide Mineral Prospecting and Exploration Pty. Ltd. seeking leave to appeal the June 14, 2022, South African High Court ruling dismissing their challenge to the 2018 sale of the Maseve mine and awarding costs to the defendants. Costs were again awarded to the defendants. On July 10, 2023, the company received notice that Africa Wide had applied for a reconsideration of the ruling of the Supreme Court of Appeal. Notwithstanding the lack of merit and unusual nature of this application, it was filed nearly seven months past the deadline for such a submission. The company will oppose the application.

On Oct. 18, 2022, the directors and shareholders of Waterberg JV Co. approved in principle a preconstruction work program for the Waterberg project amounting to approximately $21-million over a 23-month period ending Aug. 31, 2024. From the work program an initial budget of approximately $2.5-million was approved for expenditure by March 31, 2023.

On Oct. 13, 2022, the South African Department of Mineral Resources and Energy (DMRE) ruled to dismiss a series of appeals filed in 2021 against the grant of the Waterberg mining right. In its ruling the DMRE provided the regulatory reasons why each appeal was denied and confirmed the DMRE's assessment that Waterberg JV Co. has complied with black economic empowerment requirements and social and labour plan community consultation procedures.

On Oct. 4, 2022, the U.S. Patent and Trademark office issued FIU a fourth patent, No. 11,462,743 B2, entitled "Battery Comprising a Metal Interlayer." The patent involves the use of palladium as interlayer in batteries to stabilize and enable lithium metal anodes in various existing and emerging lithium battery technologies. Further patents are currently applied for. Under the sponsored research agreement, Lion has exclusive rights to all intellectual property being developed by FIU including the patents granted.

On July 27, 2022, the company entered into an equity distribution agreement with BMO Nesbitt Burns Inc. and BMO Capital Markets for a new at-the-market equity program to distribute up to $50.0-million (or the equivalent in Canadian dollars) of common shares. The offered shares will be issued by the company to the public from time to time, through the agents, at the company's discretion. The offered shares sold under the 2022 ATM will be sold at the prevailing market price at the time of sale. The net proceeds of any such sales under the 2022 ATM will be used for general working capital purposes, including the work program as described herein. As of July 13, 2023, the company has issued 1,089,503 common shares, through the U.S. agent on the NYSE American pursuant to the 2022 ATM, at an average price of $1.81 for gross proceeds of $1.98-million. Directly attributable fees and expenses related to the 2022 ATM of $350,000 were incurred in the nine-month period ended May 31, 2023.

Results for the nine-month period ended May 31, 2023

During the nine-month period ended May 31, 2023, the company incurred a net loss of $4.05-million (May 31, 2022 -- $7.26-million).

General and administrative expenses of $2.9-million (May 31, 2022 -- $3.26-million) during the current period were lower than the comparable period, with the higher expense at May 31, 2022, being primarily due to legal expenses for the company's successful defence at trial against claims by Africa Wide, which took place during October, 2021, and February, 2022. Interest expense was nil in the current period versus $1.65-million in the comparable nine-month period of fiscal 2022. The company repaid all its remaining debt in February, 2022, thereby eliminating related future interest expense. The foreign exchange gain recognized in the current period was $290,000 (May 31, 2022 -- $120,000 loss) due to the U.S. dollar increasing in value relative to the Canadian dollar during the current period. Lion Battery joint venture battery research and development expenses were $300,000 during the nine-month period (May 31, 2022 -- $250,000). Stock compensation expense was $1.6-million during the period (May 31, 2022 -- $1.73-million).

At May 31, 2023, finance income consisting primarily of interest earned in the period amounted to $470,000 (May 31, 2022 -- $90,000).

Loss per share for the current period amounted to four cents, as compared with a loss of eight cents per share for the nine-month period ended May 31, 2022.

Amounts receivable at May 31, 2023, totalled $440,000 (Aug. 31, 2022 -- $380,000) while accounts payable and accrued liabilities amounted to $620,000 (Aug. 31, 2022 -- $1.12-million). Amounts receivable comprised mainly value-added taxes repayable to the company in South Africa. Accounts payable consisted primarily of Waterberg engineering fees, infill and geotechnical drilling costs, accrued professional fees, and regular trade payables.

Total expenditures on the Waterberg project, before partner reimbursements, for the nine-month period ended May 31, 2023, were approximately $3.5-million (May 31, 2022 -- $2.6-million). After accounting for foreign exchange gains or losses related to the U.S. dollar, at May 31, 2023, $38.6-million in accumulated net costs were capitalized to the Waterberg project (May 31, 2022 -- $43.4-million). Total expenditures on the property since inception from all investor sources to May 31, 2023, are approximately $83.8-million.

Outlook

The company's primary business objective is to advance the Waterberg project to a development and construction decision. PTM is the operator of the Waterberg project as directed by a technical committee comprising representatives from joint venture partners Impala Platinum Holdings Ltd. (Implats), Mnombo Wethu Consultants Pty. Ltd., JOGMEC and Hanwa.

On Oct. 18, 2022, Waterberg JV Co. approved in principle the preconstruction work program (as described herein) of approximately $21.0-million over a 23-month period ending Aug. 31, 2024. The work program is focused on project infrastructure including initial road access, water supply, essential site facilities, a first phase accommodation lodge, a site construction power supply from state utility Eskom and advancement of the Waterberg social and labour plan. An update to the 2019 Waterberg definitive feasibility study (DFS update) is also under way, including a review of cut-off grades, mining methods, infrastructure plans, scheduling, concentrate offtake, dry stack tailings, costing and other potential revisions to the project's financial model.

From the work program, an initial budget of approximately $2.5-million was approved for expenditure by March 31, 2023, including 32 infill boreholes, several geotechnical boreholes and one exploration borehole. The initial budget was completed as planned. A stage two budget for $3.6-million in work was approved for expenditure on March 24, 2023. The stage two budget, currently under way, includes DFS update engineering, preconstruction engineering, electrical power supply engineering, and the permitting and licensing of construction aggregate borrow pits identified near the Waterberg mine site.

The initial budget and the stage two budget are being financed pro rata by the joint venture partners. Subsequent expenditures in accordance with the work program are subject to expected approvals for the next sequential time period beginning Sept. 1, 2023.

The company continues to work closely with regional and local communities and their leadership on mine development plans to achieve optimal outcomes and best value to all stakeholders.

Before project financing and a construction decision can be undertaken, arrangements will be required for project concentrate offtake or processing. Obtaining reasonable terms for Waterberg concentrate offtake from an existing smelter/refiner in South Africa is considered the preferred option and discussions with such parties are continuing.

In addition to seeking reasonable terms for Waterberg concentrate offtake from an existing smelter/refiner in South Africa, the company must also consider alternatives. The National Instrument 43-101 definitive feasibility study technical report for the Waterberg project entitled "Independent Technical Report, Waterberg Project Definitive Feasibility Study and Mineral Resource Update, Bushveld Complex, South Africa," dated Oct. 4, 2019, stated that, "Additional smelting capacity may need to be constructed in the industry to be able to treat the flotation concentrate from Waterberg and the other potential Platreef miners." The company is assessing the economic feasibility of constructing a matte furnace and base metal refinery in South Africa, either with or without partners, to process Waterberg concentrate. A matte furnace and base metal refinery as described herein is envisioned as a separate business from Waterberg JV that could provide fair market concentrate offtake terms to Waterberg JV and possibly to other PGM miners. Discussions with potential participating partners and investors are continuing.

The company is also assessing the economic feasibility of constructing a matte furnace and base metal refinery outside of South Africa to process Waterberg concentrate. Working with a potential partner in a jurisdiction with less expensive power and water, the company has completed a trade off study which indicates that savings on power and water substantially offset the cost of additional concentrate transportation. Before concentrate could be exported from South Africa, a formal government approval would be required. Further studies are under way.

As the world seeks to decarbonize and look for solutions to climate change, the adoption of battery electric vehicles is forecast to reduce the future demand for PGMs used in autocatalysis. The unique properties of PGMs as powerful catalysts are being applied to various technologies as possible solutions for more efficient energy generation and storage, which may create new demand for PGMs. The company's battery technology initiative through Lion with partner Anglo represents one such new opportunity in the high-profile lithium battery research and innovation field. The investment in Lion creates a potential vertical integration with a broader industrial market development strategy to bring new technologies to market which use palladium and platinum. Research and development efforts by FIU on behalf of Lion continue. Technical results from Lion's research may have application to most lithium-ion battery chemistries and the scope of Lion's research work is being expanded.

Environmental, social and governance

In November, 2022, Platinum Group received its second annual environmental, social and governance (ESG) disclosure report from Digbee Ltd., a United Kingdom-based company that has developed an industry standard ESG disclosure framework for the mining sector providing a right-sized, future looking set of frameworks against which they can credibly disclose, track, compare and improve their ESG performance. Digbee ESG has been developed in consultation with mining companies, ESG specialists and capital providers, and is endorsed by leading financial institutions, producing mining companies and other industry stakeholders. Digbee's reporting framework is aligned with global standards, including the equator Principles.

Qualified person

Rob van Egmond, PGeo, a consultant geologist to the company and a former employee, is an independent qualified person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. van Egmond has reviewed, validated and approved the scientific and technical information contained in this news release and has previously visited the Waterberg project site.

About Platinum Group Metals Ltd. and the Waterberg project

Platinum Group Metals is the operator of the Waterberg project, a bulk underground palladium and platinum deposit located in South Africa. The Waterberg project was discovered by Platinum Group and is being jointly developed with Implats, Mnombo, JOGMEC and Hanwa.

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