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

Client
The JV partners of the Waterberg JV and the Waterberg Extension have agreed to consolidate the platinum projects into a unitised project area, following a firm $20-million funding commitment from JV partner Jogmec.

PTM and black-empowerment partner Mnombo Wethu Consultants have agreed to merge with Jogmec, which, after consideration of the further resource potential in the less explored old Waterberg Extension, has committed the $20-million to the funding of exploration and development expenditures for the combined project over three years. The Jogmec-funded budget to March 31, 2016, is $8-million for the entire new Waterberg JV, including fill-in drilling, extension exploration drilling and prefeasibility engineering.

PTM will increase its direct and indirect effective interest in the old Waterberg JV area from its current 49.98% to 58.62%, comprising 45.65% held directly and 12.97% held indirectly through Mnombo. PTM will decrease its effective interest in the old Waterberg Extension from 87% to 58.62%. Jogmec will decrease its interest in the old Waterberg JV from 37% to 28.35% and increase its interest in the old Waterberg Extension from zero to 28.35%. Mnombo will hold 26% of the new Waterberg JV project.

PTM has noted that the exchange of interests are "ounce neutral" in that each party is exchanging the same number of inferred resource ounces.

PTM will retain the responsibility of operating the consolidated project and has achieved a majority effective interest in the overall project.

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 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 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 increased the resource estimate for platinum, palladium and gold (3E) at the Waterberg JV project, expanding the inferred resource and improving the confidence in previous results.

Effective July 20, the mineral resources at Waterberg on a 100% project basis has risen to an estimated 25.64-million ounces of 3E in the inferred category, in addition to 12.61-million ounces of 3E in the indicated category.

The inferred resource comprises 246-million tonnes grading 3.25 g/t 3E (0.98 g/t platinum, 2.11 g/t palladium and 0.16 g/t gold at a 2.5 g/t cutoff). The indicated resource comprises 121-million tonnes grading 3.24 g/t 3E (0.97 g/t platinum, 2.11 g/t palladium and 0.16 g/t gold).

Meanwhile, ten drill rigs are currently active at the Waterberg project. The deposit remains open for expansion. JV partner Japan Oil, Gas and Metals National Corporation (Jogmec) is funding drilling and engineering work under a $20-million firm commitment to the JV.

PTM has reported that the shallowest T-zone intersection is at 140 m below surface. The current drill programme is designed to expand the shallow T-zone resource for prefeasibility planning. Super F-zones within the resource, where thickness exceeds 15 m, are also a focus of current drilling.

The thicker zones have the potential to add significantly to early mine plans for bulk mining methods being considered in the ongoing prefeasibility study (PFS).

The PFS is being completed by project teams from global independent mining engineering firm DRA, along with PTM, on behalf of the Waterberg JV. Metallurgical work, plant designs, metal marketing studies, costing, engineering, servitude layouts for water and power and project planning are advancing as drilling continues for further resource expansion and definition.

On May 26, the company announced that Jogmec, PTM and empowerment partner Mnombo Wethu Consultants had agreed to consolidate the Waterberg JV and the Waterberg Extension projects into one project area. The Waterberg JV prospecting rights covered about 780 km², with a further 331 km² in accepted applications.

Prefeasibility work on the overall project is progressing, with budget quotations currently in progress for the delivery of bulk services of electricity and water and upgraded roads.

Metallurgical results completed by DRA have generally confirmed earlier work completed as a component of an earlier preliminary economic assessment at Waterberg. Samples have been analysed using grinding and flotation tests and have provided about 80% recovery with a 100 g/t concentrate on the F-zone.

Further optimisation and flow sheet design work is also proceeding.

PTM has indicated that the Waterberg material shows an “encouraging flotation response", producing a saleable clean concentrate final product.

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