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Platinum Group Metals Ltd. Announces Positive Independent Pre-Feasibility Study for the Waterberg PGM Project

Annual Planned Production Rate of 744,000 Ounces of Platinum, Palladium, Rhodium and Gold plus 23 million Pounds Nickel and Copper

VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 10/19/16 -- Platinum Group Metals Ltd. (TSX:PTM)(NYSE MKT:PLG) ("Platinum Group" or the "Company") announces positive results from an Independent Pre-Feasibility Study ("PFS") on the Waterberg PGM Project completed by international and South African engineering firm WorleyParsons RSA (Pty) Ltd. trading as Advisian. Platinum Group holds a 58.62% effective interest in the Waterberg Project with the Japan, Oil, Gas and Metals National Corporation ("JOGMEC") holding a 28.35% interest. Empowerment partner Mnombo Wethu Consultants (Pty) Ltd. ("Mnombo") holds the balance of the joint venture. JOGMEC funding is in place to advance the project through completion of a Feasibility Study ("FS").

Platinum Group Metals plans to continue drilling the deposit and to advance the project to completion of a FS and a construction decision. The Company also plans to file a mining right application, with Joint Venture approval, based substantially on the results of the PFS.

Highlights of the PFS include:

--  Validation of the 2014 Waterberg Preliminary Economic Assessment ("PEA")
    results for a large scale, shallow, decline accessible, mechanized
    platinum, palladium, rhodium and gold ("4E") mine. 
--  Annual steady state production rate of 744,000 4E ounces in concentrate.
--  A 3.5 year construction period. 
--  On site life-of-mine average cash cost of US$248 per 4E ounce including
    by-product credits and exclusive of smelter discounts. 
--  After-tax Net Present Value ("NPV") of US$320 million, at an 8% discount
    rate, using three-year trailing average metal prices. 
--  After-tax NPV of US$507 million, at an 8% discount rate, using
    investment bank consensus average metal prices. 
--  Estimated capital to full production of approximately US$1.06 billion
    including US$67 million in contingencies. Peak project funding estimated
    at US$914 million. 
--  After-tax Internal Rate of Return ("IRR") of 13.5% using three-year
    trailing average price deck. 
--  After-tax IRR of 16.3% at investment bank consensus average metal
--  Probable reserves of 12.3 million 4E ounces. 
--  Indicated resources updated to 24.9 million 4E ounces (2.5 g/t 4E cut-
    off) and deposit remains open on strike to the north and below a 1,250
    meter arbitrary depth cut-off. 

R. Michael Jones, CEO and co-founder of Platinum Group said, "The completion of the PFS significantly increases the Company's attributable 4E reserves and is an important milestone for the project and the Company. The PFS has a similar approach, similar peak funding in US dollar terms with increased production, compared to the PEA.

Waterberg is designed to be a low cost, multi-decline, fully mechanized, mining complex along an initial 13 km deposit strike length with two 300,000 tonne per month mills built in close sequence. At 744,000 ounces annual steady state production and a modelled 18 year mine life, Waterberg is very large and offers excellent exposure to the essential metals of platinum, palladium, rhodium and gold. Amazingly, the deposit is still open. The PFS covers only the first 218 million tonnes in Indicated resources to date.

With the full support of our joint venture partners JOGMEC and Mnombo, we look forward to advancing Waterberg during the remainder of 2016 and 2017 with more drilling, a FS on the initial complex, and the submission of a mining right application. From an original US$20 million commitment by JOGMEC in 2015, approximately US$8 million of further project funding remains to be spent. We are very appreciative of JOGMEC's continued commitment and support.

We look forward to growing and advancing Waterberg so that we may fully understand this new part of the Bushveld complex that we and our joint venture partners have discovered. We will work hard to maximize the value of the resource for all stakeholders including shareholders, employees, the Government of South Africa and the local communities."

This press release has been prepared by the qualified persons named herein. This press release is qualified in its entirety by reference to the PFS, which is expected to be filed shortly on SEDAR at www.sedar.com and the SEC's EDGAR site at www.sec.gov. Investors should refer to the PFS for further information.


As a result of the shallow depth, good grades and a fully mechanized mining approach, the Waterberg Project has the opportunity to be a safe mine within the lowest quartile of the industry cost curve. The project resources consist of 60% palladium and the PFS estimates that Waterberg will produce 472,000 ounces of palladium annually; more palladium than the Stillwater Mine produced in 2015, or about 6% of the world's palladium production in 2015. Producing approximately 744,000 4E ounces per year, Waterberg would be one of the largest platinum group metals mine complexes in South Africa based on 2015 production numbers.

It is estimated that Waterberg will create approximately 3,361 new primary highly trained jobs with transferable skills. The increased safety, improved working conditions, low costs and decline access for rapid development all provide attractive features compared to traditional platinum and palladium mines in South Africa. The project is in an area prioritized for economic development. Relations with the small rural community in the area have been business like and positive.

Total Ounces Produced - Life of Mine: http://media3.marketwire.com/docs/1073217a.jpg


Resource Update

Additional drilling since the April 2016 Resource Report has updated the resources as follows:

                     T-Zone 2.5 g/t Cut-off                    
Category          Cut-off   Tonnage            Grade           
               ----------          ----------------------------
                       4E               Pt     Pd     Au     Rh
                      g/t        Mt    g/t    g/t    g/t    g/t
Indicated             2.5    31.540   1.13   1.90   0.81   0.04
Inferred              2.5    19.917   1.10   1.86   0.80   0.03
                     F-Zone 2.5 g/t Cut-off                    
Category          Cut-off   Tonnage            Grade           
               ----------          ----------------------------
                       4E               Pt     Pd     Au     Rh
                      g/t        Mt    g/t    g/t    g/t    g/t
Indicated             2.5   186.725   1.05   2.23   0.17   0.04
Inferred              2.5    77.295   1.01   2.16   0.17   0.03

                      T-Zone 2.5 g/t Cut-off                      
Category          Cut-off        Grade                Metal       
                       4E     4E     Cu     Ni                  4E
                      g/t    g/t      %      %        Kg       Moz
Indicated             2.5   3.88   0.16   0.08   122,375     3.934
Inferred              2.5   3.79   0.16   0.08    75,485     2.427
                      F-Zone 2.5 g/t Cut-off                      
Category          Cut-off        Grade                Metal       
                       4E     4E     Cu     Ni                  4E
                      g/t    g/t      %      %        Kg       Moz
Indicated             2.5   3.49   0.07   0.16   651,670    20.952
Inferred              2.5   3.37   0.04   0.12   260,484     8.375

The Total Mineral Resource is summarized below:

             Waterberg Total 2.5 g/t Cut-off             
Category         Cut-off  Tonnage          Grade         
               ---------         ------------------------
                      4E             Pt    Pd    Au    Rh
                     g/t       Mt   g/t   g/t   g/t   g/t
Indicated            2.5  218.265  1.06  2.18  0.26  0.04
Inferred             2.5   97.212  1.03  2.10  0.30  0.03

          Waterberg Total 2.5 g/t Cut-off          
Category              Grade             Metal      
                   4E    Cu    Ni                4E
                  g/t     %     %       Kg      Moz
Indicated        3.55  0.08  0.15  774,045   24.886
Inferred         3.46  0.06  0.11  335,969   10.802

4E = Platinum Group Elements (Pt+Pd+Rh+Au). The cut-offs for mineral resources have been established by a qualified person after a review of potential operating costs and other factors. The mineral resources stated above are shown on a 100% basis, that is, for the Waterberg Project as a whole entity. Conversion Factor used - kg to oz = 32.15076. Numbers may not add due to rounding. Resources do not have demonstrated economic viability. A 5% and 7% geological loss has been applied to the Indicated and Inferred categories respectively. Effective Date Oct 17, 2016. Metal prices used in the reserve estimate are as follows based on a 3-year trailing average (as at July 31/2016) in accordance with U.S. Securities and Exchange Commission ("SEC") guidance for the assessment of resources; US$1,212/oz Pt, US$710/oz Pd, US$1229/oz Au, US$984/oz Rh, US$6.10/lb Ni, US$2.56/lb Cu, US$/ZAR15.

Total aggregate mineral resources at Waterberg on a 100% project basis have increased slightly since those reported in April 2016. Inferred category resources have decreased to an estimated 10.8 million 4E ounces from 11.71 million ounces 4E Inferred in April, 2016. Indicated category resources have increased to an estimated 24.9 million 4E ounces, from 23.9 million 4E ounces Indicated in April 2016:

1.  The mineral resources are classified in accordance with the SAMREC
    standards. There are certain differences with the "CIM Standards on
    Mineral Resources and Reserves"; however, in this case the QP believes
    the differences are not material and the standards may be considered the
    same. Mineral resources that are not mineral reserves do not have
    demonstrated economic viability and Inferred resources have a high
    degree of uncertainty.  
2.  The mineral resources are provided on a 100% project basis and Inferred
    and Indicated categories are separate and the estimates have an
    effective date of 17 October 2016. 
3.  A cut-off grade of 2.5 g/t 4E for both the T and the F-Zones is applied
    to the selected base case mineral resources. 
4.  Cut off for the T and the F-Zones considered costs, smelter discounts,
    concentrator recoveries from previous engineering work completed on the
    property by the Company. The resource model was cut-off at an arbitrary
    depth of 1,250 meters, although intercepts of the deposit do occur below
    this depth. 
5.  Mineral resources were completed by Mr. CJ Muller of CJM Consulting. 
6.  Mineral resources were estimated using kriging methods for geological
    domains created in Datamine from 303 original holes and 483 deflections.
    A process of geological modelling and creation of grade shells using
    indicating kriging was completed in the estimation process. 
7.  The estimation of mineral resources has taken into account
    environmental, permitting and legal, title, and taxation, socio-
    economic, marketing and political factors. 
8.  The mineral resources may be materially affected by metals prices,
    exchange rates, labor costs, electricity supply issues or many other
    factors detailed in the Company's Annual Information Form. 
9.  The data that formed the basis of the estimate are the drill holes
    drilled by Platinum Group, which consist of geological logs, the drill
    hole collars surveys, the downhole surveys and the assay data. The area
    where each layer was present was delineated after examination of the
    intersections in the various drill holes.  
10. There is no guarantee that all or any part of the mineral resource not
    included in the current reserves will be upgraded and converted to a
    mineral reserve. 


Reserves are stated on a 100% Project Basis. Reserves are a subset of the Indicated resources and the mine plan was developed from the October 2016 resource model above and includes mine modifying factors such as geological losses, dilution, development overbreak, mine design factors, in stope losses and the extraction ratio from the mining methods applied to the T and F-Zones.

The independent Qualified Person for the Statement of Reserves is Mr. RL Goosen (WorleyParsons RSA (Pty) Ltd Trading as Advisian). The table below shows the prill splits, which are calculated using the individual metal grades reported as a percentage of the total 4E grade. There are no Inferred mineral resources included in the reserves.

Prill Splits

                    Prill Split                           Grade       
Zone              Pt        Pd        Au        Rh        Cu        Ni
                   %         %         %         %         %         %
T-Zone            29        49        21         1      0.16      0.08
F-Zone            30        64         5         1      0.07      0.16

Probable Mineral Reserve at 2.5 g/t 4E Cut-off- Tonnage and Grades

           Waterberg Probable Mineral Reserve - Tonnage and Grades          
                 grade      Pt      Pd      Au      Rh      4E     Cu     Ni
Zone        Mt   (g/t)   (g/t)   (g/t)   (g/t)   (g/t)   (g/t)    (%)    (%)
T-Zone    16.5     2.5    1.14    1.93    0.83    0.04    3.94   0.16   0.08
F-Zone    86.2     2.5    1.11    2.36    0.18    0.04    3.69   0.07   0.16
Total    102.7     2.5    1.11    2.29    0.29    0.04    3.73   0.08   0.15

Probable Mineral Reserve at 2.5 g/t 4E Cut-off- Contained Metal

            Waterberg Probable Mineral Reserve - Contained Metal            
                  Pt      Pd      Au      Rh      4E content      Cu      Ni
Zone      Mt   (Moz)   (Moz)   (Moz)   (Moz)   (Moz)    (kg)   (Mlb)   (Mlb)
T-Zone  16.5    0.61    1.03    0.44    0.02    2.09  65,097   58.21   29.10
F-Zone  86.2    3.07    6.54    0.51    0.10   10.22 318,007  132.97  303.94
Total  102.7    3.67    7.57    0.95    0.12   12.32 383,103  191.18  333.04

Reasonable prospects of economic extraction were determined with the following assumptions: Metal prices used in the reserve estimate are as follows based on a 3-year trailing average (as at July 31/2016) in accordance with U.S. Securities and Exchange Commission ("SEC") guidance for the assessment of resources and reserves; US$1,212/oz Pt, US$710/oz Pd, US$1229/oz Au, US$984/oz Rh, US$6.10/lb Ni, US$2.56/lb Cu, US$/ZAR15. Smelter payability of 85% was estimated for 4E and 73% for Cu and 68% for Ni. The effective date is October 17, 2016. A 2.5 g/t Cut-off was used and checked against a pay-limit calculation. Independent Qualified Person for the Statement of Reserves is Mr. RL Goosen (WorleyParsons RSA (Pty) Ltd Trading as Advisian). The mineral reserves may be materially affected by changes in metals prices, exchange rates, labor costs, electricity supply issues or many other factors. See Risk Factors in 43-101 report on www.sedar.com and the Company's Annual Information Form. The reserves are estimated under SAMREC with no material difference to the CIM 2014 definitions in this case.

The estimation of mineral reserves has taken into account environmental, permitting and legal, title, taxation, socio-economic, marketing and political factors. Based on the cut-off grade and a maximum depth cut-off of 1,250 meters the Probable reserve will support an 18 year mine life.


The PFS results validate the PEA with similar capital costs in USD, increased production profile (from 655,000 3E ounces/yr PEA to 744,000/yr 4E ounces PFS) and an increase in sustaining capital. Optimization of the mine plan and working on reducing underground sustaining development capital will be part of the upcoming Feasibility Study.


The project time line includes a construction decision following the completion of a FS and first production 3 years later. Under the PFS model, first production is estimated as mid-2021, if the FS is completed at the end of 2017 and a mining right and other permits are granted as planned. Final reef tonnes are scheduled to be mined in 2038.


Capital costs to full production and peak funding of the project are estimated in Rand 2016 terms. Peak Funding is estimated at US$914 million. The costs are estimated in USD at 15R/1USD with a flat exchange rate. Escalation of costs in Rand terms are estimated to be mostly offset over time by future Rand devaluation.


                                 To Full  Sustaining     To Full  Sustaining
Facility     Facility         Production     Capital  Production     Capital
Code         Description         ZAR (M)     ZAR (M)     USD (M)     USD (M)
2000         Underground           6,092       9,766         406         651
3000         Concentrator          2,850         159         190          11
4000         Shared Services       1,063          43          71          03
5000         Regional              2,566           0         171           0
6000         Site Support            691          67          46          04
7000         Project               1,399         147          93          10
8000         Other                   246          83          16          06
9000         Contingency             999       1,202          67          80
Total Capital                     15,906      11,468       1,060         765

The estimates for the scope of work, within the given battery limits, and subject to the qualifications, assumptions and exclusions contained in the PFS, are considered to be within the accuracy range required for a PFS of +25%. Monte Carlo simulation was used to provide a 12% contingency that was used in the estimates.

Waterberg 2016 PFS Results Details

Item                          Units     Total
Mined and Processed            Mtpa      7.20
Platinum                        g/t      1.11
Palladium                       g/t      2.29
Gold                            g/t      0.29
Rhodium                         g/t      0.04
4E                              g/t      3.73
Copper                            %      0.08
Nickel                            %      0.15
Platinum                          %     82.5%
Palladium                         %     83.2%
Gold                              %     75.3%
Rhodium                           %     59.4%
4E                                %     82.1%
Copper                            %     87.9%
Nickel                            %     48.8%
           Produced in Concentrate           
Concentrate                    ktpa       285
Platinum                        g/t      24.2
Palladium                       g/t      51.5
Gold                            g/t       4.9
Rhodium                         g/t       0.6
4E                              g/t        81
Copper                            %       1.9
Nickel                            %       1.8
        Recovered Metal in Concentrate       
Platinum                      kozpa       222
Palladium                     kozpa       472
Gold                          kozpa        45
Rhodium                       kozpa         6
4E                            kozpa       744
Copper                        Mlbpa        11
Nickel                        Mlbpa        12


Economic Assumptions

                                                       3 Year           Bank
                                                     Trailing      Consensus
Parameter                                 Unit        Average          Price
Palladium                               USD/oz          1,212          1,213
Gold                                    USD/oz            710            800
Rhodium                                 USD/oz          1,229          1,300
T and F Combined Basket                 USD/oz            984          1,000
 (4E)                                   USD/oz            899            960
Nickel                                  USD/lb           6.10           7.50
Copper                                  USD/lb           2.56           2.90
Base Metals Refining                                                        
 Charge                      % Gross Sales Pay            85%               
Copper Refining Charge       % Gross Sales Pay            73%               
Nickel Refinery Charge       % Gross Sales Pay            68%               


Average Life of Mine ("LOM") Operating Cost Rates and Totals per Area in ZAR and USD

                    Average LOM      Total LOM    Average LOM      Total LOM
                        (ZAR/t)        (ZAR M)        (USD/t)        (USD M)
Mining                 R 271.90       R 27,915        $ 18.13        $ 1,861
Engineering &                                                               
 Infrastructure        R 107.49       R 11,036         $ 7.17          $ 736
General & Admin         R 40.71        R 4,180         $ 2.71          $ 279
Process                R 154.52       R 15,864        $ 10.30        $ 1,058
Total OPEX Cost        R 574.62       R 58,994        $ 38.31        $ 3,933

4E Cash Costs before and after Credits and Costs

Item                                    US$/oz 4E in Concentrate            
                                Life-of-Mine  5-Year Average 10-Year Average
                                     Average     2022 - 2026     2022 - 2031
Mine Site Cash Cost                      389             390             374
Nickel Credits                            98              97              98
Copper Credits                            42              40              40
Total Mine Cash Costs After                                                 
 Credits                                 248             253             236
Realisation cost (smelter                                                   
 "cost", transport)                      232             224             231
Total Cash Costs After                                                      
 Credits                                 481             477             467

Financial Results Three Year Trailing Average Price Deck 15R/1USD Flat

                Discount ZAR Millions ZAR Millions USD Millions USD Millions
Item                Rate (Before Tax)  (After Tax) (Before Tax)  (After Tax)
Net Present Undiscounted       36,096       25,042        2,406        1,669
 Value              4.0%       18,213       11,883        1,214          792
                    6.0%       12,666        7,808          844          520
                    8.0%        8,565        4,805          571          320
                   10.0%        5,519        2,584          368          172
                   12.0%        3,249          939          217           62
                   14.0%        1,555         -278          104          -19
Internal Rate of Return                                                     
Project Payback Period          16.6%        13.5%        16.6%        13.5%
 (Years) from 2017                 10           10           10           10

Investment Bank Consensus Price Deck

                Discount   Before Tax    After Tax   Before Tax    After Tax
Item                Rate      (ZAR M)      (ZAR M)      (USD M)      (USD M)
Net Present Undiscounted       45,781       31,946        3,052        2,130
 Value              4.0%       24,180       16,184        1,612        1,079
                    6.0%       17,426       11,263        1,162          750
                    8.0%       12,402        7,610          827          507
                   10.0%        8,641        4,884          576          325
                   12.0%        5,812        2,842          387          189
                   14.0%        3,676        1,311          245           87
Internal Rate of Return                                                     
Project Payback Period          19.8%        16.3%        19.8%        16.3%
 (Years) from 2017                  9            9            9            9

Sensitivity Analysis - Post Tax Three Year Trailing Average Price Deck 15R/1USD Flat

                           Change in Change in Change in Change in Change in
Parameter                  Parameter Parameter Parameter Parameter Parameter
Metal Prices                    -20%      -10%        0%       10%       20%
IRR (post-tax)                    5%       10%     13.5%       17%       20%
NPV (8% Discount) (R000)      -2,467     1,211     4,805     8,344    11,854
NPV (8% Discount) ($000)        -164        67       320       556       790
Head Grade                      -20%      -10%        0%       10%       20%
IRR (post-tax)                    6%       10%     13.5%       16%       19%
NPV (8% Discount) (R000)      -1,513     1,562     4,805     7,562    10,505
NPV (8% Discount) ($000)        -101       104       320       504       700
Capex                           -20%      -10%        0%       10%       20%
IRR (post-tax)                   17%       15%     13.5%       12%       10%
NPV (8% Discount) (R000)       8,161     6,484     4,805     3,109     1,395
NPV (8% Discount) ($000)         544       432       320       207        93
Opex                            -20%      -10%        0%       10%       20%
IRR (post-tax)                   18%       16%     13.5%       12%       10%
NPV (8% Discount) (R000)       7,435     6,121     4,805     3,246     2,124
NPV (8% Discount) ($000)         496       408       320       216       142


The immediate next steps for the Waterberg Project are the development of a mining right application and working towards a FS. The PFS specifies that the project will utilize an EPCM contractor and a mining contractor for the development of the mine, overseen by an experienced in-house Platinum Group owners' team. Initial development is planned with contractors with a later takeover for mining by an owners' team. Equipment operators will be trained at an existing MQA certified training center developed and owned by Platinum Group.


The mining blocks of the Waterberg deposits occur at depths from 140 meters to 1,250 meters along 8,000 meters of strike length of reserves. The deposit is known from drill intercepts to continue below 1,250 meters and to extend for over 13,000 meters of strike length.

Access to the mining complex is planned by three decline ramp clusters. Decline ramps have advantages over vertical shafts in terms of capital cost, and importantly, time. Declines to the depths of the top of the Waterberg deposit can be developed over 24-36 months whereas vertical shafts, shaft infrastructure and equipping can take six to seven years.

Mining will be completed by safe, efficient fully mechanized methods and the dip and thickness of the zones are driving the mining method selection. A fleet of approximately 400 trackless machines including drill rigs, loaders, dump trucks and other trackless machines will be used for mining and development. A minimum mining width has been set at three meters so that all mining can be fully mechanized, safe and efficient.

                            Mining          Dip of                          
Mining Method               Height        the Reef Key Advantages           
Blind Longitudinal         3 - 15m    less than or On reef development. Good
 Retreat                               equal to 35 grade, extraction.       
Sub-level Open             3 - 15m greater than 35 On reef development. Good
 Stoping -                                 degrees extraction. Bulk and low 
 Longitudinal                                      cost.                    
Sub-level Open        greater than greater than 35 Bulk method. High        
 Stoping -                     15m         degrees efficiency, large        
 Transverse                                        tonnage, good extraction,
                                                   ultra-low cost.          

Portal and Underground Layouts (October 17, 2016): http://media3.marketwire.com/docs/1073217b.jpg

The mine utilizes a large supply of new mechanized trackless mobile equipment for mining and feed ore onto large conveyors from underground to the processing plant. The mine will rely on both the T and the F reef from more than one portal to make the tonnage profile steady state of 600,000 tonnes per month.


The flotation test work indicated that the Waterberg ores are amenable to treatment by conventional flotation without the need for re-grinding. A standard flotation concentrator can be used to produce a saleable concentrate, at a 4E grade of no less than 80 g/t, with no deleterious products. A 4E recovery rate in excess of 80% is expected at the proposed mill feed grades.

Metallurgical test work on the Waterberg ores by SGS, Mintek and DRA has focused on recovery of 4E platinum group elements and copper-nickel sulphides with the objective of producing a high grade concentrate attractive for smelting in South Africa.

The processing plant is designed in two 300,000 tonne/month Mill-Float in two cycles "MF-2" standard platinum industry modules for ramp-up and operational flexibility. A JOGMEC reagent circuit with some opportunity for increased recovery has also been tested. The plant modules are designed to accept T reef, F reef or a blended combination. The ore types can be co-mingled without negatively affecting recoveries.


The main infrastructure requirements for the Waterberg Project are access roads, tailings storage, water management, power supply and process plant to service and treat the targeted mine production.

The Waterberg Project is situated in a remote area and will require approximately 32 km of existing unpaved roads to be surfaced.


A combination of sewage effluent together with groundwater is considered the most viable solution to meet the proposed mining schedule. Several available options were considered including a pipeline to be developed for several users to the south, including for other proposed and active mines. This option was not chosen as it is considered to have greater risk due to the large number of parties involved. Sufficient water sources for the project were identified and early discussions for the preferred arrangements were positive.


The updated electricity supply plan compiled by Eskom provides for the establishment of two 77 km long 132kV overhead lines from the Eskom Burotho 400/132kV main transmission substation.

The development of the abovementioned infrastructure will be done in conjunction with Eskom on a self-build basis and this work is already in an advanced stage including the application for permits for the proposed power line.


The Waterberg Project will produce a flotation concentrate from the processing plant which is assumed to be sold or toll treated into the local South African market.

Production of up to 285,000 tonnes of concentrate per annum will be available at peak production. The concentrate will contain approximately 80 g/t 4E's plus copper at between 1% and 9.2% and nickel at between 1.1% and 5% copper.

The concentrate does not contain any penalty elements such as chrome and is rich in sulphur, thus making it a desirable concentrate to blend with other high chrome concentrates.

No formal marketing studies have been conducted for this study nor have the local smelter and refinery operators been formally contacted to understand the appetite in the local industry to treat the concentrate to be produced from the project. Informal indications from smelters are that the concentrate is attractive.

Based on the large volume of concentrate and the significantly lower operating cost of the metal without the smelter discount, the consideration of production of an onsite smelter matte or combination with other Northern Limb material for further critical mass is recommended. The company will consider this recommendation with its partners JOGMEC and Mnombo.


The Waterberg Project will create safe long term jobs with transferable mechanized equipment operations skills for a large part of the work force. The increased safety and ability to create good paying well trained jobs is an attractive community benefit. The social license to operate has been a focus of the company with ongoing positive meetings and interactions. The next stage of the project will involve the development of a Social and Labour Plan as part of the mining right application. The project involves normal measures for the protection of the environment similar to other platinum mining operations.


During 2015, JOGMEC committed to fund US$20 million of project work at Waterberg. Approximately US$8 million of that commitment remains to be completed and will fund 100% of the costs for the balance of 2016 and into 2017.


The following Qualified Persons have completed work in preparation of the PFS and are responsible for the contents:

--  Independent Engineering Qualified Person:
    Mr. Robert L Goosen
    (B.Eng. (Mining Engineering)) Pr. Eng. (ECSA)
    Advisian/WorleyParsons Group 
--  Independent Geological Qualified Person:
    Mr. Charles J Muller
    (B.Sc. (Hons) Geology) Pr. Sci. Nat.
    CJM Consulting (Pty) Ltd 
--  Independent Engineering Qualified Person:
    Mr. Gordon I. Cunningham
    B. Eng. (Chemical), Pr. Eng. (ECSA), Professional association to FSAIMM
    Turnberry Projects (Pty) Ltd. 

This press release has been reviewed and approved by R. Michael Jones, P.Eng., a non-independent Qualified Person and the CEO of the Company. He has verified the technical information for disclosure in this press release by reviewing the work of the QPs on a test basis, visiting the site and meeting with the project QPs through the development of the PFS.


Scientific and Technical Information in this Press Release related to mineral resources has been reviewed and approved by Charles J Muller, (BScHons) Pr Sci Nat (Reg. No 400201/04), an independent consulting geologist and resource estimator of CJM Consulting, an independent qualified person as defined in National Instrument 43-101 -Standards of Disclosure for Mineral Projects ("NI 43-101"). He has verified the data by reviewing the detailed assay and geological information and metallurgical work on the Waterberg deposit. He is satisfied that the data is appropriate for the resource estimate by reviewing the core, assay certificates and quality control information as well as reviewing the procedures on sampling, chain of custody and data base records of the Platinum Group exploration team.

Base metals and other major elements were determined by multi acid digestion with Inductively Coupled Plasma ("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 have utilized a standard quality control system including the use of standards. Bureau Veritas South Africa and Genalysis of Australia with similar standards and approaches have been used for assays and umpire checks. Platinum Group utilized a well-documented system of inserting blanks and standards into the assay stream and has a strict chain of custody and independent lab re-check system for quality control. Details are available in the NI 43 101 reports on the project at www.sedar.com and www.platinumgroupmetals.net.

The independent QPs for the PFS (CJ Muller, GI Cunningham and RL Goosen) have visited the Waterberg property for personal inspection during 2016. Mr. RL Goosen last visited the site on 13 October 2016, Mr. GI Cunningham on 13 October 2016 and Mr. CJ Muller on 29 March 2016. They all have undertaken due diligence with respect to the PTM data. Other than as specified below they jointly take responsibility for the report.

--  Charles J Muller - Geology and Mineral Resource Estimation 
--  Robert L Goosen - Reserve Estimation, Mining and Infrastructure 
--  Gordon I Cunningham - Metallurgy, Metals Markets, Offtake, Capital cost
    and financial model 

The QPs have verified the data sufficiently for the reporting of resources, reserves and this Pre-Feasibility Study. The QPs have reviewed and approved their relevant section of this press release.


--  The company plans to work towards optimization of the mine plan,
    development plan and waste development plan for ventilation with the
    objective of reducing sustaining capital in the FS stage. 
--  Further drilling will be completed with the objective to upgrade some of
    the resources and the deposit remains open. A longer mine life will also
    be targeted in the high grade T reef areas. High grade thickness areas
    in the F reef will also receive targeted drilling with the objective of
    increasing definition for the FS mine plan. 
--  Further metallurgical work will be completed in the FS including the
    potential for increased recoveries using the JOGMEC circuit. 
--  The Waterberg concentrate is attractive for smelting and is of large
    strategic scale importance to the industry. 


--  The project at a PFS stage has all of the normal mining projects risks
    including but not limited to, estimation risk for the resources and
    reserves, recovery risks, capital cost and operating cost estimation
    risks, permitting and community and surface rights access risk. 
--  Government regulation stability and amendments of the fiscal regime is
    an additional risk. 
--  Waterberg is a large green-fields project and final off-take of the
    proposed metal is yet to be negotiated for a large volume of


Platinum Group, based in Johannesburg, South Africa and Vancouver, Canada, has a successful track record with more than 20 years of experience in exploration, mine discovery, mine construction and mine operations.

Formed in 2002, Platinum Group holds significant mineral rights in the Bushveld Igneous Complex of South Africa, which is host to over 70% of the world's primary platinum production. The Company is currently focused on ramping up the Maseve Mine, its first near-surface platinum mine, to commercial production.

Platinum Group has expanded its exploration and development efforts on the North Limb of the Bushveld Complex on the Waterberg Project. Waterberg represents a new bulk type of platinum, palladium and gold deposit.

On behalf of the Board of Platinum Group Metals Ltd.

"R. Michael Jones"

President and CEO


The Toronto Stock Exchange and the NYSE MKT LLC have not reviewed and do not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.

This press release contains forward-looking information within the meaning of Canadian securities laws and forward-looking statements within the meaning of U.S. securities laws (collectively "forward-looking statements"). Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, plans, postulate and similar expressions, or are those, which, by their nature, refer to future events. All statements that are not statements of historical fact are forward-looking statements. Forward-looking statements in this press release include, without limitation, the projections and assumptions relating to future events that are contained in the PFS, including, without limitation NPV, IRR, costs, potential production of the Waterberg Project and other operational and economic projections with respect to the Waterberg Project; future activities at Waterberg and the funding of such activities; trends in metal prices; potential future market conditions; the Company's overall capital requirements and future capital raising activities, plans and estimates regarding exploration, studies, development, construction and production on the Company's properties, other economic projections and the Company's outlook. Statements of mineral resources and mineral reserves also constitute forward-looking statements to the extent they represent estimates of mineralization that will be encountered on a property and/or estimates regarding future costs, revenues and other matters. Although the Company believes the forward-looking statements in this press release are reasonable, it can give no assurance that the expectations and assumptions in such statements will prove to be correct. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including; the Company's capital requirements may exceed its current expectations; the uncertainty of cost, operational and economic projections; the ability of the Company to negotiate and complete future funding transactions; variations in market conditions; the nature, quality and quantity of any mineral deposits that may be located; metal prices; other prices and costs; currency exchange rates; the Company's ability to obtain any necessary permits, consents or authorizations required for its activities; the Company's ability to produce minerals from its properties successfully or profitably, to continue its projected growth, or to be fully able to implement its business strategies; and other risk factors described in the Company's shelf prospectus and registration statement, Form 40-F annual report, annual information form and other filings with the Securities and Exchange Commission and Canadian securities regulators, which may be viewed at www.sec.gov and www.sedar.com, respectively.

This press release also includes a reference to mineral resources and mineral reserves. The estimation of resources and reserves is inherently uncertain and involves judgement. Mineral resources that are not reserves do not have demonstrated economic viability. Judgements associated with geology, tonnage grades in place and that can be mined may prove to be unreliable and inaccurate. Fluctuations in metals prices, exchange rates, labour costs and government regulations among other things may materially affect resources and reserves. The company does not yet have a right to mine the reported resources and reserves and there can be no assurance that the company will convert its prospecting permits to a mining right.

Cautionary Note to U.S. and other Investors

Estimates of mineralization and other technical information included or referenced in this press release have been prepared in accordance with NI 43-101. The definitions of proven and probable reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. As a result, the reserves reported by the Company in accordance with NI 43-101 may not qualify as "reserves" under SEC standards. In addition, the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. "inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Additionally, disclosure of "contained ounces" in a resource is permitted disclosure under Canadian securities laws; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measurements. Accordingly, information contained or referenced in this press release containing descriptions of the Company's mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United States federal securities laws and the rules and regulations thereunder.

R. Michael Jones, President
or Kris Begic, VP Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450

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