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 platinum and 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 extended the northern limit of the known Waterberg Extension deposit, on the northern limb of South Africa’s Bushveld Igneous Complex.

The new intercept WE 049 is located 3.4 km northward beyond the previous resource limit. The deposit remains open, beyond the current strike length, for further expansion and all of the intercepts will be considered in the resource update planned shortly.

Independent compliant resource calculations and peer reviews are in progress on the deposit.

Step-out intercept WE 049 is significant as it further establishes the open potential northward along strike on the Waterberg Extension property, where PTM holds an 87% interest.

The Waterberg deposit has been divided into the Waterberg I, II, III domains. Each domain represents about 5 km of strike length, with the initial engineering work at Waterberg covering Waterberg I.

The current resource at Waterberg, before the update in progress, was 29-million ounces over about 10 km of strike length, comprising on a 100% basis an inferred resource of 287-million tonnes, grading 0.94 g/t platinum, 1.92 g/t palladium, 0.04 g/t rhodium, 0.25 g/t gold, comprising a ratio of 30%, 61%, 1% and 8% respectively.

PTM has said that geophysical modelling suggests an extension target at Waterberg III for 5 km and further north.

The company has, to date, completed 71 000 m of largely fill drilling since the last resource estimate. One drill continues to prospect the open strike and dip lengths looking for the best palladium and platinum grade and thickness at Waterberg.

A first priority for Waterberg this year will be to complete the resource update by May, including recent drilling, followed by prefeasibility study (PFS) results in mid-2015.

Engineering firm DRA is working on completing the PFS, which is funded by PTM and Waterberg Joint Venture partner Japan Oil, Gas & Metals National Corporation.

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 second 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