Western Bushveld JV

The Western Bushveld Joint Venture is a unique, three phase platinum project likely to be one of the last large-scale near-surface new developments on the desirable and high-grade platinum reefs of the Western Limb of the Bushveld Complex. A positive Final Feasibility Study for Project 1 of the Western Bushveld Joint Venture was published on July 7th 2008 with an update announced October 8, 2009.

The property has two phases, named Projects 1 and 3. Project 2, where Platinum Group held an 18.5% interest was sold to our partner, Wesizwe in a three-way deal with Anglo Platinum. Under this transaction Anglo Platinum maintained an interest in all of the original projects through a shareholding in Wesizwe.  Platinum Group now holds a right to 74% of the Project level holding company (see April 22, 2010 Press Release) giving Platinum Group 74% ownership of Projects 1 and 3 and Wesizwe Platinum 100% ownership of Project 2 as well as 26% of Projects 1 and 3.

Located among key high-grade platinum mines, including Amandelbult, Union, BRPM and Impala (see map), the Western Bushveld Joint Venture deposits exhibit the high grades and high platinum contents that mark mines on the Western Limb.  The Western Bushveld Complex has been mined for 80 years and has many profitable mines that produce 70% of the world's platinum production. In contrast, the Northern and Eastern Limbs support less of a proven track record of platinum mining.

Project 1

Over the past three years, the Joint Venture team, with PTM as the operator, has drilled over 100,000 metres and over 190 drill holes on Project 1, allowing us certainty with our deposit calculations and mine planning.

The feasibility study on Project 1 was updated on October 8, 2009. The following outline provides the key features of this study:

• Measured and Indicated Mineral Resources increased by 0.924Moz due to additional drilling in Project 1 & 1A areas on Merensky and UG2 Platinum bearing layers or reefs.
• Reserves increased 7.35 % as a result of optimized extraction on the UG2 Reef.
• Ounces produced in concentrate at steady state increased to 275,000 ozs per year 4E (platinum, palladium, rhodium and gold) from 250,000 ozs per year as a result of improvements to the mine design and higher plant throughput.
• Revised mine plan calls for production of ore from underground in 2011 and first concentrate sales first quarter of 2013.
• Peak funding for 100% of the Project reduced by US$ 64m to US$ 443m.
• Life of Mine Capital cost estimate, over 22 years reduced by US$ 89m to US$ 595m as a result of change in design to use mostly grid power rather than self generated power and improvements in mine design compared to July 2008 original feasibility
• At a platinum price of US$ 1,343 per oz (3 year trailing average, 8 South African Rand to US$, no escalation), the Project IRR is 24% pre tax and the Project NPV of Platinum Group’s 74% share pre tax is US$ 726 m (5% discount rate NPV5) and US$ 352 m (10% discount rate NPV10) Post tax, including secondary tax, Platinum Group’s share is NPV5 US$ 431m and NPV10 US$ 188m.
• The Minister of  Mineral Resources has approved the final title transfers of all of the prospecting permits related to the transaction whereby Platinum Group Metals will hold a 74% right of Projects 1 and 3 of the WBJV (26% Wesizwe).

The above information contains forward-looking statements within the meaning of Canadian and U.S. securities laws. Such statements include, without limitation, statements regarding the timing of future activities by the Company, future anticipated exploration and development programs, the review of technical information, the discovery and delineation of mineral deposit and resources, business plans, potential mining scenarios, business trends and future operating factors. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, 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. 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, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, 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. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment; no firm quotes for costs have been received; the legal right to mine the project discussed has not been confirmed or applied for and the process for such application is new in South Africa; the potential capital cost of the project is beyond the current means of the Company and there can be no assurance that financing for further work will be available. There are significant risks with respect to grade estimation, metallurgical recovery and mining plans that may result in over estimation or failure to meet targets. Any estimates, plans or studies prepared by or on behalf of other companies with respect to the project have not been prepared or reviewed by the Company or the Company’s QPs and such disclosure can’t and should not be in any way be attributed to the Company or the Company’s QPs, independent or non-independent. Any reference to Project 2 does not imply that this is a stand alone area for any potential mine plan. The reader is referred to the Company’s filings with the SEC and Canadian securities regulators for disclosure regarding other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.