History

In the fall of 2004, Platinum Group Metals Ltd. ("Platinum Group") signed a large-scale joint venture agreement with Anglo Platinum and Africa Wide on the prolific Western Limb of the Bushveld Complex in South Africa - the exclusive address for 79% of the world's platinum production.

Platinum Group, with our initial platinum holdings in North America and South Africa, was suddenly vaulted from one of many platinum explorers to a significant platinum company on the world stage.

It was a long way from the merger in 2002 between Michael Jones' Platinum Group Metals and New Millennium, founded by Frank Hallam.

Recognizing early in the commodity cycle that platinum and the other PGMs were a growing requirement for industry and clear air standards, both Jones and Hallam utilized their long histories in the mine exploration business and separately started staking claims and exploring for platinum and palladium in Northern Ontario.

As they were competing with each other to acquire ground in Thunder Bay and Sudbury, they recognized that working together was the better way forward and they combined their companies.

Utilizing the strength that came from the merger, the company was able to begin acquisitions in South Africa.

At that time, most new entrants to South Africa looked for platinum opportunities in the new areas of the northern and eastern limbs of the Bushveld Complex where deals were easier to find. Platinum Group, too, signed some promising parcels on the Northern Limb.

The question, though, was how to get a piece of prime Western Bushveld platinum property when it was all tied up in fragmented private mineral rights or in the control of the big companies.

Jones and Hallam met with local farmers and negotiated a deal for two key pieces of property, immediately adjacent to Anglo Platinum's newest BRPM mine. Platinum Group also secured important surface rights.

The timing was also right as massive regulatory change was occurring in South Africa.

The Mineral and Petroleum Resource Development Act of 2002 (the "New Act") came into effect and it meant companies that had held mineral properties as inventory for decades were compelled to convert those properties to active status, or return them to the government.

While this type of regulatory environment (also known as the "use it or lose it" system) is standard in North America and Australia, it was all new to South Africa and the majors and they had to accelerate plans for many properties - and that included land holdings that Anglo Platinum controlled on the Western Bushveld.

New regulations, including the Mining Charter, also called for the inclusion of Historically Disadvantaged South Africans ("HDSA") in the form of Black Economic Empowerment ("BEE") companies in any new mining exploration and development. After decades of exclusion from the mining business under Apartheid, the new Charter mandated an opening up of at least 26% of the minerals business to BEE, through commercial deals over a 10 year transition period.

Platinum Group had an existing relationship with Anglo Platinum through a joint venture in Canada. By introducing Africa Wide to Anglo Platinum as a qualified BEE partner, and adding both funding and technical expertise into the mix, Platinum Group was able to combine our properties Onderstepoort and Elandsfontein with Anglo Platinum's land holdings in the area to create the Western Bushveld Joint Venture ("WBJV").

Platinum Group took on the role of operator for the Joint Venture and has moved these largely unexplored areas through resource definition to engineering ready status. An in-house technical team recruited by Platinum Group over the past two years, drilled, technically logged and sampled over 100,000 metres of core.

In July 2008 a definative feasibility study was completed. The global financial crisis in late 2008 delayed construction financing plans. In October 2009 an updated feasibility study was completed. The next steps are to consider the strategic options for the asset driving it towards construction.

Also during 2009, the Company expablished two joint ventures with the Japanese government owned company, JOGMEC.