Name and Location
Waterberg Joint Venture (JV) platinum group metals project, Limpopo, South Africa.

Client
The Waterberg JV, comprising Platinum Group Metals, or PTM – 37%; Japan Oil, Gas & Metals National Corporation, or Jogmec (37%); and empowerment partner Mnombo Wethu Consultants. PTM holds an effective 49.9% interest through its minority shareholding in Mnombo.

Project Description
The Waterberg deposit consists of discrete, layered and continuous platinum group metal- (PGM-) bearing layers, starting at 140 m from the surface, with a consistent westerly dip. The deposit has so far been drilled for about 10.4 km northwards on strike. Geophysical surveys and drilling, to date, indicate that the deposit remains open down dip and on strike to the north-west.

The Waterberg project has emerged as one of the world's largest undeveloped palladium discoveries. Currently, the inferred mineral resource for the combined Waterberg deposit stands at 29-million ounces contained in 287-million tonnes grading 0.94 g/t platinum, 1.92 g/t palladium, 0.04 g/t rhodium and 0.25 g/t gold. The deposit remains open. Drilling is in progress across the JV area and directly north on the Waterberg extension along strike beyond the 8-km-long published resource.

The mine plan in the preliminary economic assessment (PEA) uses three decline clusters for access, owing to the shallow depth of the deposit. The shallow edge of the T layer is at 130 m vertical and the shallow edge of the F layer is at 220 m.

A completely mechanised mining method is planned, including a combination of room-and-pillar mining on mineralised layers 3 m to 10 m thick, and long-hole open stoping on layers 10 m to 60 m thick. The decline ramps for underground access are planned to be developed to the shallow edge of the T and F deposit layers. From there, development ramps are all to be within the deposit along an apparent dip angle. This development approach is possible because of the thickness of the deposit and because it lowers waste development tonnes and costs.

Using a standard flotation mill at steady state, the project is expected to produce 655 000 oz/y of platinum, palladium and gold in concentrate, with copper and nickel as credits.

Net Present Value/Internal Rate of Return
Not stated.

Value
Peak funding for the mine is estimated at R8.85-billion. The PEA by independent qualified persons of WorleyParsons estimated the net present value of the project at 7.5%. The discount rate pretax is R8.047 – flat metal prices and flat rand at 10:1 to the dollar. The PEA considered only the initial resources of 17-million ounces; the resource has expanded to 29-million ounces since then.

Duration
A two-year construction period from 2016 to 2018 is planned.
The project has a 20-year mine life.

Latest Developments
PTM has confirmed the extension of the F zone, 1.9 km north of the known Waterberg deposit.

Hole WE 046 D1 on the Waterberg Extension property has returned assays of 6.03 g/t platinum, palladium and gold (3E) over 4.52 m, grading 4.15 g/t of palladium, 1.46 g/t of platinum and 0.42 g/t of gold respectively, from depths of 1 484.48 m to 1 489 m.

The company has noted that the step-out intercept is extremely significant because it establishes the open potential along strike on the Waterberg Extension property, where PTM holds an effective 87% interest.

If a broader zone is considered in this intercept, the average grade is 3.13 g/t 3E over 11.35 m, grading 0.78 g/t of platinum, 2.13 g/t of palladium and 0.22 g/t of gold. The true thickness of the 3.13 g/t 3E intercept is estimated at 8.94 m and the true thickness of the 6.03 g/t 3E intercept is estimated at 3.56 m.

PTM states that at a thickness of greater than 3 m, the target deposit is modelled using an efficient, fully mechanised mining approach.

The F zone could be drilled up-dip and eastward from this position for more than 1 km towards the shallow edge of the zone estimated to be about 250 m to 300 m from surface in this area. The extent of the F zone in the area of WE-046 now remains open in all directions.

Waterberg III represents the target area for about 5 km north of the current deposit model, consisting of about 9 km of strike length named Waterberg I and Waterberg II. This intercept confirms the extension of the Waterberg deposit at a grade thickness greater than that found in typical platinum mines in South Africa. Geophysical modelling confirms a clear extension target for 5 km at Waterberg III and further north.

The rhodium, copper and nickel determinations are still pending. The previously reported mother hole WE-046 D0 had confirmed the F zone with low values. As a result of the coarse nature of the copper and nickel sulphide minerals associated with the deposit, local variations occurred within the well-layered sequence. All intercepts were considered in deposit modelling.

The 2014 drilling programme at the Waterberg JV and the Waterberg Extension was completed on time and within budget. Further assays are in progress with a resource update planned for early 2015.

Key Contracts and Suppliers
WorleyParsons (PEA); DRA (qualified person role for the ongoing Waterberg prefeasibility study) and Coffey Mining (South Africa)(independent resource assessment).

On Budget and on Time?
The project has continued to expand and operations have been within budget. The PFS is expected to be completed in the first quarter of 2015.

Contact Details for Project Information
PTM, tel +27 11 782 2186, fax +27 11 782 4338 or email info@platinumgroupmetals.net.
Jogmec public relations division, tel +81 3 6758 8106.
WorleyParsons, tel +27 11 218 3000 or fax +27 11 218 3100.
DRA, tel +27 11 202 8600 or email info@DRAglobal.com.
Coffey Mining (South Africa), tel +27 11 679 3331 or fax +27 11 679 3272.