Mr. Frank Hallam reports

PLATINUM GROUP METALS LTD. REPORTS THIRD QUARTER 2025 RESULTS

Platinum Group Metals Ltd. has released the company's financial results for the nine-month period ended May 31, 2025, 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 platinum, palladium, rhodium and gold (PGM) mine, including byproduct copper and nickel production, 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 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 an affiliate of Valterra Platinum Ltd. (previously Anglo American Platinum Ltd.), and Florida International University (FIU).

For details of the condensed consolidated interim financial statements for the nine months ended May 31, 2025, and management's discussion and analysis (MD&A) for the nine months ended May 31, 2025, 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 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.

Project ownership

As of May 31, 2025, the Waterberg project is owned by Waterberg JV Resources Pty. Ltd., which is in turn owned by Platinum Group (37.32 per cent), Mnombo Wethu Consultants Pty. Ltd. (26.00 per cent), HJ Platinum Metals Company Ltd. (HJM) (21.95 per cent) and Impala Platinum Holdings Ltd. (Implats) (14.73 per cent). Platinum Group holds a further 12.97-per-cent indirect interest in Waterberg JV Co. through a 49.9-per-cent interest in Mnombo. HJM was established in 2023 by Japan Organization for Metals and Energy Security (JOGMEC) and Hanwa Co. Ltd. as a special purpose company to hold and finance its aggregate future equity interests in the Waterberg project with JOGMEC expecting to finance 75 per cent of future equity investments into HJM going forward.

Recent events

On May 29, 2025, the company reported the closing of a non-brokered private placement of common shares at a price of $1.26 per common share. An aggregate of 800,000 common shares were subscribed for and issued to existing major beneficial shareholder, Hosken Consolidated Investments Ltd. (HCI) through its subsidiary Deepkloof Ltd., resulting in gross proceeds to the company of $1.0-million. Closing of the private placement allowed HCI to return to a 26-per-cent interest in the company at that time.

On Feb. 18, 2025, the board of directors for Waterberg JV unanimously approved a 42-million-rand interim budget (approximately $2.27-million at the time) to allow the continuation of work programs for the Waterberg project. The interim budget will cover the period ending approximately Aug. 31, 2025, and will include some components of a $21.0-million preconstruction work program approved in principle for the Waterberg project by the directors and shareholders of Waterberg JV Co. on Oct. 18, 2022.

On Dec. 5, 2024, the company entered into an equity distribution agreement with BMO Nesbit Burns Inc. and Beacon Securities Ltd. (the Canadian agents) and BMO Capital Markets Corp. (the U.S. agent and together with the Canadian agents, the agents) for a new at-the-market equity program (the 2025 ATM) 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 2025 ATM will be sold at the prevailing market price at the time of sale. The net proceeds of any such sales will be used for the Waterberg project preconstruction site work, engineering and preparation, a potential phase 1 development program at the Waterberg project, a Saudi Arabia smelter and base metal refinery definitive feasibility study, a contingency provision, and general, corporate and administrative expenses.

Sales of common shares on the NYSE American pursuant to the 2025 ATM through the U.S. agent commenced on Jan. 22, 2025, and during the nine months ended May 31, 2025, the company issued 4,350,928 common shares, at an average price of $1.32 per share, for gross proceeds of $5.75-million. Directly attributable expenses and legal fees to implement and maintain the 2025 ATM in good standing, and for commissions on equity sales, totalled $1.09-million during the nine months ended May 31, 2025. After May 31, 2025, to the date of this news release, the company sold a further 4,172,397 common shares pursuant to the 2025 ATM at an average price of $1.60 per share, for net proceeds of $6.52-million.

On Nov. 26, 2024, the company entered a memorandum of understanding (MOU) with Ajlan & Bros Company for Mining, a subsidiary of Ajlan & Bros Holding, and the Ministry of Investment of Saudi Arabia (MISA) as a part of the global supply chain resilience initiative, for the setup of a proposed platinum group metals smelter (PGM smelter) and base metal refinery (BMR) to be located in Saudi Arabia. Ajlan is one of the largest private sector diversified conglomerates in the Middle East. Earlier, in December, 2023, Ajlan and the company entered into a co-operation agreement (as defined below) to study the establishment of a stand-alone PGM smelter and BMR in Saudi Arabia. According to the terms of the MOU, MISA will offer strategic guidance and study potential financial support to the proposed PGM smelter and BMR and the Waterberg project located in South Africa.

On Nov. 13, 2024, the company filed a final short form base shelf prospectus with the securities regulatory authorities in each of the provinces and territories of Canada and a corresponding registration statement on Form F-10 with the U.S. Securities and Exchange Commission (SEC), under the Multijurisdictional Disclosure System established between Canada and the United States. Pursuant to the shelf prospectus and the registration statement, the company may offer and sell common shares, debt securities, warrants, subscription receipts or a combination thereof up to an aggregate initial offering amount of $250-million (or its equivalent in Canadian dollars) from time to time, separately or together, in amounts, at prices and on terms to be determined based on market conditions at the time of the offering and as set out in an accompanying prospectus supplement, during the 25-month period that the shelf prospectus and the registration statement remain effective.

On Sept. 16, 2024, the company reported positive results from an independent definitive feasibility study update (the Waterberg DFS update) for the Waterberg project. The associated technical report entitled "Waterberg Definitive Feasibility Study Update, Bushveld Igneous Complex, Republic of South Africa," with an effective date of Aug. 31, 2024, was filed on SEDAR+ on Oct. 9, 2024. The Waterberg DFS update was prepared by independent qualified persons in accordance with Canadian National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101) and Subpart 229.1300 and Item 601(b)(96) of the SEC's Regulation S-K. The Waterberg DFS update included revised mineral resource and mineral reserve estimates. For details of the Waterberg DFS update see the company's news release dated Sept. 16, 2024, the MD&A, and the technical report referred to above.

Results for the nine months ended May 31, 2025

During the nine months ended May 31, 2025, the company incurred a net loss of $3.40-million (May 31, 2024 -- net loss of $4.02-million). General and administrative expenses during the period were higher at $2.78-million (May 31, 2024 -- $2.57-million) due to the reimbursement of legal costs in the previous comparable period. Stock-based compensation was lower at $790,000 in the current period (May 31, 2024 -- $1.61-million) due to the revaluation of outstanding deferred share units in the current period. The foreign exchange gain recognized in the current period was $60,000 (May 31, 2024 -- $40,000 -- million gain) due primarily to the U.S. dollar increasing in value relative to the Canadian dollar during the nine-month period.

At May 31, 2025, finance income consisting of interest earned in the nine-month period amounted to $140,000 (May 31, 2024 -- $350,000). Basic and diluted loss per share for the nine months ended May 31, 2025, amounted to three cents, versus four cents per share for the comparable period ended May 31, 2024.

Accounts receivable and 2025 ATM proceeds receivable at May 31, 2025, totalled $220,000 (Aug. 31, 2024 -- $230,000) and $70,000 (Aug. 31, 2024 -- nil) respectively, while accounts payable and other liabilities amounted to $750,000 (Aug. 31, 2024 -- $910,000). Accounts receivable were comprising primarily value-added taxes repayable to the company in South Africa. Accounts payable consisted primarily of professional fees payable in relation to the preparation and filing of the shelf prospectus, the registration statement and the 2025 ATM, as well as for project engineering and maintenance costs on the Waterberg project.

Total expenditures on the Waterberg project, before partner reimbursements, for the nine months ended May 31, 2025, were approximately $1.6-million (May 31, 2024 -- $2.3-million). At period-end, $48.0-million in accumulated net costs were capitalized to the Waterberg project. Total expenditures on the property since inception to May 31, 2025, are approximately $91-million.

Smelting and refining update

On Dec. 20, 2023, the company announced a co-operation agreement with Ajlan to study the establishment of a stand-alone PGM smelter and BMR in Saudi Arabia. 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.

An initial tradeoff study was completed in mid 2023 to first determine the viability of exporting PGM concentrate from South Africa to Saudi Arabia. The market study was completed in late 2024 by a globally recognized consulting group specializing in PGMs and associated base metal byproducts. Based on the analysis, the combination of concentrate from the Waterberg project and end of life auto catalysts and petrochemical catalysts, sourced from the Gulf Region, could justify the scale required to construct a long-term PGM smelting and refining complex in Saudi Arabia.

A key requirement for the establishment of a PGM smelter and BMR in Saudi Arabia would be a long-term South African government approval for the export of unrefined precious metals in concentrate. Platinum Group has been working with the government of South Africa to identify local beneficiation opportunities and to analyze the possible impact of exporting concentrate on the value chain. Through these discussions the government of South Africa has expressed their preference and support for beneficiation in South Africa. As a result, the company, Ajlan, MISA and the government of South Africa are now considering the concept of establishing a matte furnace in South Africa capable of smelting Waterberg project concentrate. Such a facility would ideally be located near the Waterberg project with existing power, water and environmental authorizations. The converter matte produced would be shipped to Saudi Arabia for further processing through a BMR, at which time spent auto catalysts and other PGM-bearing materials could be co-processed.

The company and Ajlan are currently conducting a trade-off study and developing a scope of work and cost estimate for the engineering studies required to assess the above scenario, should it be chosen as the primary plan. One noteworthy consideration would be the much lower volume of material to be shipped to Saudi Arabia. Rather than shipping up to 130,000 tonnes of concentrate a year, or approximately 14 concentrate trucks a day, the volume of converter matte to be shipped would be reduced to approximately 8,000 tonnes a year, or approximately one truck a day.

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 Implats, Mnombo and HJM.

In accordance with the preconstruction budget, Waterberg JV Co. has recently completed exploration and engineering work related to the Waterberg DFS update and is working on engineering and planning related to initial road access, construction water supply, infrastructure, essential site facilities, a first phase accommodation lodge, and a site construction power supply from state utility Eskom.

Work pursuant to the Waterberg Social & Labour Plan (SLP) has been undertaken and further SLP work is both under way and planned. Community infrastructure work has been completed and is under way at present. Skills and needs assessment surveys were completed in 2023, which will help to inform planned education and training programs. In 2024, 49 learners from host communities completed a portable skills training program and 15 tertiary education bursaries were granted between 2023 and 2025. Engagement with local communities has been continuing and together the parties have agreed upon the location of project facilities and infrastructure.

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 a construction decision can be undertaken, arrangements will be required for Waterberg project concentrate offtake or processing. The company and Waterberg JV Co. are assessing commercial alternatives for mine development financing and concentrate offtake. In addition to the company's investigation of smelting and base metal refining options in Saudi Arabia (as described above), the company has discussed possibilities with all major South African smelter operators, including Implats, with a view to negotiating formal concentrate offtake arrangements for the Waterberg project.

As the world seeks to decarbonize and look for solutions to climate change, the adoption of battery electric vehicles (BEVs) has been forecast to reduce the future demand for PGMs used in autocatalysis. More recently, the rate of adoption for BEVs has slowed down. This slowdown may be attributed to several factors, including the availability of supporting infrastructure (particularly in emerging markets), a shift toward hybrid vehicles and potential challenges in supply chains. Growth rates vary by region. For example, China has seen strong BEV adoption as compared to other jurisdictions.

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 Valterra 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 and lithium-sulphur battery chemistries.

Although platinum and palladium are exempt, as they are considered critical minerals, the new global tariffs recently announced by the United States administration in Washington, D.C., layered on top of previously announced tariffs on automobiles, steel, aluminum, et cetera, have raised uncertainty regarding markets in general and specifically to the production and sale of automobiles and light duty vehicles. A period of uncertainty is likely as investors and consumers consider the impact of these tariffs, and as the level of retaliation and market diversification by other nations becomes apparent.

International conflict and other geopolitical tensions and events, including war, military action, terrorism, trade disputes and international responses thereto have historically led to, and may in the future lead to, uncertainty or volatility in global energy, supply chain and financial markets, which may have a negative impact on the demand for PGMs.

Notwithstanding the above, platinum and palladium prices have recently been increasing due to a combination of factors including strong Chinese demand, persistent supply concerns and renewed investor interest. Specifically, platinum is seeing increased demand as a substitute for gold in jewelry and as a hedge, while palladium demand for use in auto catalytic converters has remained strong.

Environmental, social and governance

During the nine-month period ended May 31, 2025, Platinum Group received its fourth 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. For 2024, Platinum Group achieved an overall score of BBB with a range of CC to AAA based on the information provided. 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 2024 Digbee ESG report please refer to the company's MD&A, AIF and annual report on Form 40-F.

Regulatory

The company advises that its consolidated financial statements for the fiscal year ended Aug. 31, 2024, included in the company's Form 40-F, contain an audit report from its independent registered public accounting firm that includes a going concern emphasis of matter. The foregoing statement is required by Section 610(b) of the NYSE American Company Guide.

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 NI 43-101. 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 and HJM.

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