Name and Location
Western Bushveld Joint Venture (WBJV) Project 1, North West, South Africa.

Client
The WBJV comprises project operator Platinum Group Metals, or PTM (74%), and Wesizwe Platinum (26%). PTM currently holds 54.75% in Projects 1 and 3 of the WBJV, with a right to subscribe to a further 19.25%. JSE-listed Wesizwe Platinum holds the other 26%, plus 100% of Project 2.

Project Description
The WBJV is divided into Projects 1, 2 and 3.

The mine plan for Project 1 has been revised.

The new plan envisages the construction of a platinum mine and concentrator to produce between 234 000 oz/y and 300 000 oz/y of combined platinum, palladium, rhodium and gold (4E) in concentrate. During nine years of peak production, about 275 000 oz/y of 4E in concentrate will be produced from the project’s Merensky reef horizon.

The Merensky reef will be mined at widths of between 93 cm and 176 cm and the upper group two (UG2) reef will be mined at widths of between 105 cm and 205 cm.

The mining and development plan includes conventional hand-held drilling, electrical drills and scrapers, as well as winch cleaning, which is similar to the successful conventional mining operations at the adjacent mines.

Declines and primary access to the deposit have been designed for development using mechanised equipment.

Ore will initially be hauled out of the mine with mechanised equipment and transported by conveyor from year four to the end of the mine’s life. The project has an estimated 22-year life-of-mine.

The concentrator has been designed and recosted, based on treating the optimal 140 000 t/m. The revised mine plan has increased this treatment rate to 160 000 t/m and, for the concentrator to treat the increased quantity of reef, the recovery has been reduced to a discount of up to 2.5% for treatment over the nominal nameplate capacity.

Value
Peak funding for 100% of the project has been reduced from $507-million to $443-million.

Of the required capital cost, a fully funded $100-million Phase 1 surface establishment and underground decline development programme are in progress.

Duration
Surface stockpile of Merensky ore for the mill and concentrator is planned for start-up at the end of 2014.

Latest Developments
PTM’s 74%-owned operating company, Maseve Investments, has signed a binding life-of-mine concentrate offtake agreement with Anglo American Platinum subsidiary Rustenburg Platinum Mines (RPM) for WBJV Project 1.

Maseve will sell all concentrate from Project 1 to RPM for the life-of-mine, with RPM required to buy and take delivery of all concentrate.

The agreement, which stipulates that the concentrate be delivered to a smelter in Rustenburg, will come into effect when the initial delivery of concentrate from Project 1 takes place, and comprises the Merensky and UG2 ores.

It allows for a certain stipulated quality of concentrate to be maintained and for concentrate to be delivered to other locations in the case of smelter maintenance, and also for a standard discount to metal payability and customary penalties for unwanted elements.

This announcement followed a tender process for the offtake agreement and the exercise of a right of first refusal by RPM.

Meanwhile, the development of two twin sets of declines to access the Merensky reef and the construction of mine facilities continue.

Key Contracts and Suppliers
Société Generale, Barclays Bank, Absa Capital, the Standard Bank of South Africa and Caterpillar Financial (lead arrangers); Turnberry Projects (prefeasibility study and overall feasibility study); Wardrop Engineering (decline access); GRD Minproc (concentrator design); Grinaker-LTA Mining (vertical shaft design); Golder Associates Africa and Oryx Environmental (public consultation and environmental permitting work); DRA Mining (engineering, procurement and construction management); and JIC Mining Services (underground decline tunnels).

On Budget and on Time?
Phase 1 construction at Project 1 is expected to be completed within budget.

Contact Details for Project Information
PTM investor and media enquiries, tel +1 604 899 5450, fax +1 604 484 4710 or email info@platinumgroupmetals.net.
Wesizwe Platinum, Sirkien van Schalkwyk, tel +27 11 994 4600, fax +27 11 994 4601 or email Sirkien@wesizwe.com.
Turnberry Projects, tel +27 11 781 0116 or fax +27 11 781 0118.
Wardrop Engineering, email info@wardrop.com.
GRD Minproc, tel +27 11 514 0005.
Grinaker-LTA Mining, tel +27 11 578 6000 or fax +27 11 578 6161.
Golder Associates Africa, tel +27 14 597 0442 or fax +27 14 592 2842.
Oryx Environmental, tel +27 11 880 5204.
DRA Mining, tel +27 11 202 8600.
JIC Mining Services, tel +27 11 564 9400, fax +27 11 315 3789 or email general@jic.co.za.