Mr. Frank Hallam reports

PLATINUM GROUP METALS LTD. REPORTS FIRST QUARTER RESULTS

Platinum Group Metals Ltd. has released the company's financial results for the three months ended Nov. 30, 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 mine, and is projected to be one of the largest and lowest-cost underground platinum group metal mines globally.

The company's near-term objectives are to advance 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.

For details of the condensed consolidated interim financial statements for the three months ended Nov. 30, 2023, and management's discussion and analysis for the three months ended Nov. 30, 2023, 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 and MD&A from the company free of charge upon request.

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

Recent events

On Dec. 20, 2023, the company announced a co-operation agreement with Ajlan & Bros. Mining and Metals Co. to study the establishment of a stand-alone PGM smelter and base metal refinery in Saudi Arabia. Ajlan is a subsidiary of Ajlan & Bros. Holdings, one of the largest private sector diversified conglomerates in the Middle East. The co-operation agreement encompasses three phases: a global PGM concentrate market study, a definitive feasibility study for the construction and operation of the PGM smelter and BMR in Saudi Arabia, and an option to form an incorporated 50/50 joint venture following the completion of the smelter DFS.

The market study will seek to identify potential global sources of PGM concentrate that could augment the processing of the Waterberg project concentrate in Saudi Arabia and minimize the risk of sourcing concentrate from only one project.

Upon the completion of the market study and assuming a favourable outcome, Ajlan and the company may together commission the smelter DFS at an estimated cost for the study of approximately $4.0-million. The smelter DFS will assume the export of PGM concentrate from the Waterberg project in South Africa to a port facility in Saudi Arabia, and will encompass options related to infrastructure, location, technical specifications, capital and operating costs. All expenses related to the smelter DFS are to be split on a 50/50 basis between Platinum Group and Ajlan, including certain costs already incurred by Platinum Group in previous independent beneficiation studies.

The company believes Saudi Arabia offers an attractive investment climate that includes highly competitive energy costs, a lower taxation rate and significant government financing incentives. An initial trade-off study has been completed to determine the viability of exporting PGM concentrate from South Africa to Saudi Arabia. Shipping costs are generally offset by lower energy costs and water costs. The PGM smelter and BMR would benefit from existing infrastructure. A key requirement would be to secure a long-term permit for the export from South Africa of unrefined precious metals in concentrate.

On Dec. 11, 2023, the directors and shareholders of Waterberg JV Resources Pty. Ltd. unanimously approved a Stage 3 budget of $1.62-million for continued work on the Waterberg project. The Stage 3 budget, covering the period from September, 2023, to approximately February, 2024, is a subcomponent of the $21-million work program (as defined below) approved in principle on Oct. 18, 2022. In conjunction with its approval of the Stage 3 budget, Impala Platinum Holdings Ltd. advised that due to its own internal cost savings efforts, it would not be financing its 15-per-cent share of the Stage 3 budget, which will result in a 0.049-per-cent dilution to its current 15-per-cent position in Waterberg JV Co. Shareholders of Waterberg JV Co. have the right to contribute the cash contribution shortfall of any diluting shareholder, pro rata to the aggregate shareholding of all shareholders who elect to finance such shortfall. Platinum Group alone has elected to finance all Implats's financing shortfall for the Stage 3 budget. Implats stated it would consider the financing of subsequent cash calls as future circumstances allowed.

On Sept. 18, 2023, the company reported the closing of a non-brokered private placement of common shares at a price of $1.18 per common share. An aggregate of 2,118,645 common shares were subscribed for and issued to existing major beneficial shareholder, Hosken Consolidated Investments Ltd., through its subsidiary Deepkloof Ltd., resulting in gross proceeds to the company of approximately $2.5-million. Closing of the private placement allowed HCI to return to a more-than-26-per-cent interest in the company.

On June 21, 2023, the company reported that Lion had engaged the Battery Innovation Center in Newberry, Ind., to help drive commercialization efforts for its next-generation platinum- and palladium-based battery chemistries. Lion is advancing both proprietary lithium-sulphur and enhanced lithium-ion technology using the unique catalytic properties of platinum and palladium. Under a scope of work, BIC is to 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 and Hanwa Co. Ltd. had established a special purpose company, HJ Platinum Metals Ltd., 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 metal 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 Co. located adjacent to the north of the Waterberg project mining right. See the company's May 31, 2023, management's discussion and analysis for full details and assay results for borehole WE153.

On March 30, 2023, the company reported positive results from a completed infill drill campaign at the Waterberg project. Assay results for 16 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 below. See the company's news release dated March 30, 2023, for full details and assay results for all F zone boreholes completed under the infill drill campaign.

On March 24, 2023, the directors and shareholders of Waterberg JV Co. approved a Stage 2 budget in the amount of $3.6-million for continued work on the Waterberg project. The Stage 2 budget, covering the period from April 1, 2023, to Aug. 31, 2023, is a subcomponent of the $21-million work program (as defined below) approved in principle on Oct. 18, 2022. Work pursuant to the Stage 2 budget was substantially completed in October, 2023.

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 a sponsored research 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 an active infill drill campaign at the Waterberg project. Assay results for 16 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. Results will be incorporated into a definitive feasibility study update now under way and described more fully below. See the company's news release dated Jan. 26, 2023, for details and assay results for all 16 T zone boreholes completed under the infill drill campaign.

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 its challenge to the 2018 sale of the Maseve mine. On July 10, 2023, the company received notice that Africa Wide had applied for a reconsideration of the ruling to the president of the Supreme Court. On Oct. 6, 2023, the Supreme Court ordered that Africa Wide's application for reconsideration be denied. On Nov. 23, 2023, the High Court determined that Africa Wide owes the company a total of $154,000 (2.99 million rand) in costs. On Nov. 29, 2023, the company served Africa Wide by sheriff with a demand for payment. Further necessary steps are being taken to recover the costs. The company has made no accrual for the award of costs.

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 $21.0-million over a two-year period. From the work program, an initial budget of approximately $2.5-million was approved for expenditure by March 31, 2023, and this work is now complete.

Results for the three months ended Nov. 30, 2023

During the three months ended Nov. 30, 2023, the company incurred a net loss of $1.56-million (Nov. 30, 2022: net loss of $1.61-million). General and administrative expenses during the period were lower at $1.09-million (Nov. 30, 2022: $1.17-million). Stock-based compensation was also lower at $460,000 (Nov. 30, 2022: $830,000). The foreign exchange gain recognized in the current period was $40,000 (Nov. 30, 2022: $250,000 gain) due primarily to the to the U.S. dollar increasing in value relative to the Canadian dollar during the period.

At Nov. 30, 2023, finance income consisting of interest earned in the three-month period amounted to $140,000 (Nov. 30, 2022: $140,000). Basic and diluted loss per share for the year amounted to two cents, which was also two cents per share for the comparable period ended Nov. 30, 2022.

Accounts receivable at Nov. 30, 2023, totalled $180,000 (Aug. 31, 2023: $220,000) while accounts payable and other liabilities amounted to $660,000 (Aug. 31, 2023: $1.37-million). Accounts receivable were composed primarily of value-added taxes repayable to the company in South Africa. Accounts payable consisted primarily of payables related to project engineering and maintenance costs on the Waterberg project.

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 of the company. No common shares were sold pursuant to the 2022 ATM prior to Aug. 31, 2022. As of Aug. 31, 2023, the company had issued 1,089,503 common shares, through BMO Capital Markets on the NYSE American pursuant to the 2022 ATM, at an average price of $1.81, for gross proceeds of $1.97-million. Directly attributable expenses and legal fees to maintain the 2022 ATM in good standing, and for commissions on equity sales, totalled $450,000 during fiscal 2023. No common shares have been sold to date in fiscal 2024 pursuant to the 2022 ATM.

Total expenditures on the Waterberg project, before partner reimbursements, for the three months ended Nov. 30, 2023, were approximately $1.0-million (Nov. 30, 2022: $1.06-million). At period-end, $42.6-million in accumulated net costs were capitalized to the Waterberg project. Total expenditures on the property since inception to Nov. 30, 2023, are approximately $86.6-million.

For more information on mineral properties, see Note 4 of the financial statements.

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 composed of representatives from joint venture partners Implats, Mnombo Wethu Consultants Pty. Ltd. and HJM. Before project financing and a construction decision can be undertaken, arrangements will be required for project concentrate offtake or processing.

On Oct. 18, 2022, Waterberg JV Co. approved in principle the preconstruction work program (as described above). The work program includes proposed work 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. Work to prepare an update to the 2019 Waterberg definitive feasibility study, including updated mineral resource and mineral reserve estimates, was also approved and is currently in process. The DFS update is to include 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. The DFS update is expected to be completed in early to mid-2024.

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. In addition to seeking reasonable terms for Waterberg concentrate offtake from an existing smelter/refiner in South Africa, the company must also consider alternatives. As described above, the company is studying the economic feasibility of constructing a PGM smelter and BMR to process the Waterberg project concentrate.

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 Amplats 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

Platinum Group recently received its third annual environmental, social and governance 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 rightsized, future-looking set of frameworks against which it can credibly disclose, track, compare and improve its ESG performance. For 2023, Platinum Group achieved an overall score of BBB with a range of C to AAA based on the information provided. This score is an improvement from the BB score achieved in 2022. 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. For more details about the company's 2023 Digbee ESG report, please refer to the company's MD&A, annual information form and Form 40-F.

Regulatory

As well as the discussions within this news release, the reader is encouraged to also see the company's disclosure made under the heading "Risk factors" in the company's current AIF and Form 40-F.

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 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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