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Platinum Group Metals Closes US$28.75 Million Bought Deal Financing Including Full Exercise of over-Allotment Option

Financings

788 – 550 Burrard Street

Vancouver, BC V6C 2B5

P: 604-899-5450

F: 604-484-4710

News Release No. 17-336

January 31, 2017

PLATINUM GROUP METALS CLOSES US$28.75 MILLION

BOUGHT DEAL FINANCING INCLUDING FULL EXERCISE OF OVER-ALLOTMENT

OPTION

(Vancouver, British Columbia) Platinum Group Metals Ltd. (PTM-TSX; PLG -NYSE MKT)

(“Platinum Group Metals” or the “Company”) announces that further to its press release of January

23, 2017, it has closed its public offering of common shares (the “Offering”) , including the full

exercise of the over -allotment option granted to the underwriters in connection with the Offering .

Pursuant to the Offering, and including the full exercise of the over -allotment option, the Company

has issued 19,693,750 common shares (the “Shares”) at a price of US$1. 46 per Share, for aggregate

gross proceeds of US$ 28,752,875. A syndicate led by BMO Capital Markets , which also included

Macquarie Capital Markets Canada Ltd., acted as the underwriters for the Offering.

The net proceeds of the Offering will be used for (i) underground development and production ramp -

up of the Maseve Mine, (ii) working capital during start-up, and (iii) general corporate purposes.

The Offering was made pursuant to an effective shelf registration statemen t previously filed with the

U.S. Securities and Exchange Commission (the "SEC") and a corresponding Canadian base shelf

prospectus filed with the securities regulatory authority in each of the provinces of Canada, except

Quebec. A prospectus supplement rel ating to the Offering was filed with the SEC and with the

securities regulatory authority in each of the provinces of Canada, except Quebec.

A copy of the prospectus supplement and base shelf prospectus relating to the Offering in Canada

may be obtained b y contacting BMO Capital Markets, Brampton Distribution Centre C/O The Data

Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 or by telephone at (905)

791-3151 Ext 4312 or by email at [email protected]. A copy of the prospectus

supplement and base shelf prospectus relating to the Offering in the United States may be obtained

by contacting BMO Capital Markets Corp., Attn: Equity Syndicate Department, 3 Times Square, 25 th

Floor, New York, NY 10036 (Attn: Equity Syndicate), or by telephone at (800) 414-3627 or by email

at [email protected].

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall

there be any sale of the Shares in any jurisdiction in which such offer, solicitation or sale would be

unlawful prior to registration or qualification under the securities laws of that jurisdiction.

About Platinum Group Metals Ltd.

Platinum Group is based in Johannesburg, South Africa and Vancouver, Canada. The Company's

business is currently focused on the operation of the Project 1 "Maseve" platinum mine and the

exploration and feasibility engineering on the newly discovered Waterberg pla tinum and palladium

PLATINUM GROUP METALS LTD. …2

deposit, where the Company is the operator of the Waterberg JV Project with JOGMEC and

Mnombo.

On behalf of the Board of

Platinum Group Metals Ltd.

“R. Michael Jones”

President and CEO

For further information contact:

R. Michael Jones, President

or Kris Begic, VP, Corporate Development

Platinum Group Metals Ltd., Vancouver

Tel: (604) 899-5450 / Toll Free: (866) 899-5450

www.platinumgroupmetals.net

The Toronto Stock Exchange and the NYSE MKT LLC have not reviewed and do not accept

responsibility for the accuracy or adequacy of this news release, which has been prepared by

management.

This press release contains forward -looking information within the meaning of Canadian securities

laws and forward -looking statements within the meaning of U.S. securities laws (collectively

"forward-looking statements"). Forward -looking statements are typically identified by words such

as: believe, expect, anticipate, i ntend, estimate, plans, 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. Forward -looking statements in this press rele ase

include, without limitation, statements regarding the use of proceeds of the Offering. Although the

Company believes the forward-looking statements in this press release are reasonable, it can give no

assurance that the expectations and assumptions in such statements will prove to be correct. 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, that the Company's use

of proceeds of the Offering may differ from those indicated; uncertainty of production, development

plans and cost estimates for the Maseve Mine; additional financing requirements; the Company's

ability to comply with the terms of its indebtedness; cash flow risks; risks of delays in the production

ramp-up of the Maseve Mine; variations in market conditions; the nature, quality and quantity of any

mineral deposits that may be located; metal prices; other prices and costs; currency exchange rates;

the Company's ability to obtain any necessary permits, consents or authorizations required for its

activities and to comply with applicable regulations; 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; and other risk factors described in the Company's Form 40 -F

annual report, an nual information form and other filings with the SEC and Canadian securities

regulators, including the registration statement, base shelf prospectus and prospectus supplement

relating to the Offering, which may be viewed at www.sec.gov and www.sedar.com, respectively. Any

forward-looking statement speaks only as of the date on which it is made and, except as required by

applicable securities laws, the Company disclaims any intent or o bligation to update any forward -

looking statements, whether as a result of new information, future events or results or otherwise.