Sable JV

In 2009, Platinum Group acquired prospecting permits by application over a large area of approximately 140 square kilometers on the Eastern end of the Western Limb of the Bushveld Complex adjoining to the east of Xstrata's Eland Platinum Mine. The territory, named the Sable Joint Venture project area, is under agreement to a black economic empowerment group for a 26% interest and Sable Platinum Mining (Pty) Limited (“Sable”) as to a 51% interest in exchange for Sable funding approximately $6.0 million (R 42.0 million) in work on the project. Exploration work on the project has consisted of mapping, soil sampling, geophysical surveys and drilling. Specifically, drilling was completed in the first quarter of fiscal year 2012 and will continue in calendar 2012. To January 2012, a total of 6,085 metres had been drilled in 7 boreholes on the project area. Sable is the operator of the project.