PTM.TO · 2018-09-04 12:00:00

Platinum Group Metals Files Mining Right Application for the Waterberg JV PGM Project

Partnerships & JV

788 – 550 Burrard Street

Vancouver, BC V6C 2B5

P: 604-899-5450

F: 604-484-4710

News Release No. 18-378

September 4, 2018

Platinum Group Metals Files Mining Right Application for the

Waterberg JV PGM Project

(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE

American) (“Platinum Group” “PTM” or the “Company”) is pleased to announce as project

operator that Waterberg JV Resources (Pty) Ltd. (“Waterberg JV Co.”) has filed a Mining

Right Application for th e large -scale Waterberg PGM Project. The application was

submitted to South Africa’s Department of Mineral Resources ( “DMR”), consisting of the

Mining Work Program, Social and Labour Plan and associated Environmental Applications.

The application s are supported by all of the JV partners including Impala Platinum

Holdings Ltd. (“Implats”), Japan Oil, Gas and Metals National Corporation (“JOGMEC”) and

Mnombo Wethu Consultants (Pty) Ltd. (“Mnombo”).

President and CEO of Platinum Group R. Michael Jones st ated, “The filing of the Mining

Right Application represents a significant milestone in the evolution of the Waterberg

Project. First d iscovered in 2011, Waterberg has grown both in scale and stature to

become a significant mineral asset and a rare, large scale, low cost primary palladium

deposit. The project has the potential to positively impact South Africa’s economic

development, creating high-value jobs and skills training opportunities for local residents.

We look forward to ongoing interaction with all of our stakeholders, including government,

local communities and our joint venture partners to help ensure the success ful

development and operation of the Waterberg Project.”

Waterberg represents a large scale resource of platinum group metals (“PGM”), including

palladium, platinum and gold, with an attractive risk profile. Given its shallow nature and

ability to support a fully mechanized operation, the Waterberg Project has the potential to

be amongst the lowest cost producers in the PGM sector. A pre-feasibility study (“PFS”)

was completed in 2016 and a definitive feasibility study (“DFS”) is in progress for

completion in calendar Q1 2019. The DFS is considering two options including the

600ktpm complex outlined in the PFS and a phased approach commencing with a smaller,

250ktpm to 350ktpm alternative. Stantec Consulting International LLC and DRA Projects

SA (Proprietary) Limited are the lead independent project engineers.

Platinum Group currently holds an effective 50.02% i nterest in the Waterberg Project.

Implats, the world’s second largest platinum producer, owns a 15% interest . Mnombo, a

black empowerment company, holds a 26% interest. The Company owns a 49.9%

interest in Mnombo. JOGMEC holds a 21.95% interest in the W aterberg Project and is in

the process of transferring a 9.755% interest to Japanese conglomerate Hanwa Co., Ltd.

Hosken Consolidated Investments Limited, a South African black empowerment

investment holding company listed on the JSE with a US$1.1 billion market capitalization,

owns a 15% stake in Platinum Group. Implats is an active participant in the joint venture

PLATINUM GROUP METALS LTD. …2

and holds an option to increase their stake to 50.01% following the completion of the

DFS.

Implats has identified Waterberg as a potential low-cost alternative to deep conventional

PGM mining, with an attractive metal balance for the future. Palladium has been gaining

market interest based on continued demand in the auto sector , due to a growing trend

towards gasoline engines and hybrids that use palladium dominant catalysts.

Current Platinum Group Element (“PGE”) Probable Mineral Reserves at the Waterberg

Project (100%) are 12.3 million ounces, comprising 61% palladium, 30% platinum, 8%

gold and 1% rhodium plus 191 million and 333 million pounds of copper and nickel

respectively and will be updated as part of the DFS. (See the technical report dated

October 19, 2016 and filed on SEDAR titled “Independent Technical Report on the

Waterberg Project Including Mineral Resource Update and Pre -Feasibility Study”.) Much

of the Waterberg Project area remains to be drilled and assessed. The Waterberg deposit

remains open down dip and along strike.

Waterberg Mineral Resource and Mineral Reserve Details

Mineral Reserve Details (100% Project Basis)

Prill Split Grade

Zone Pt

T-Zone 29 49 21 1 0.16 0.08

F-Zone 30 64 5 1 0.07 0.16

Probable Mineral Reserve at 2.5 g/t 4E Cut-off– Tonnage and Grades

Waterberg Probable Mineral Reserve – Tonnage and Grades

Zone Mt Cut-off

grade

(g/t)

(%)

T-Zone 16.5 2.5 1.14 1.93 0.83 0.04 3.94 0.16 0.08

F-Zone 86.2 2.5 1.11 2.36 0.18 0.04 3.69 0.07 0.16

Total 102.7 2.5 1.11 2.29 0.29 0.04 3.73 0.08 0.15

PLATINUM GROUP METALS LTD. …3

Probable Mineral Reserve at 2.5 g/t 4E Cut-off– Contained Metal

Waterberg Probable Mineral Reserve – Contained Metal

Zone Mt Pt

(Moz)

content

(kg)

(Mlb)

T-Zone 16.5 0.61 1.03 0.44 0.02 2.09 65,097 58.21 29.10

F-Zone 86.2 3.07 6.54 0.51 0.10 10.22 318,007 132.97 303.94

Total 102.7 3.67 7.57 0.95 0.12 12.32 383,103 191.18 333.04

Reasonable prospects of economic extraction were determined with the following

assumptions: Metal prices used in the reserve estimate are as follows based on a 3 -year

trailing average (as at July 31/2016) in accordance with U.S. Securities and Exchange

Commission ("SEC") guidance for the assessment of resources and reserves;

US$1,212/oz Pt, US$710/oz Pd, US$1229/oz Au, US$984/oz Rh, US$6.10/lb Ni,

US$2.56/lb Cu, US$/ZAR15. Smelter payability of 85% was estimated for 4E and 73% for

Cu and 68% for Ni. The effective date is October 17, 2016. A 2.5 g/t Cut -off was used

and checked against a pay -limit calculation. Independent Qualified Person for the

Statement of Reserves is Mr. RL Goosen (WorleyParsons RSA (Pty) Ltd Trading as

Advisian). The Mineral Reserves may be materially affected by changes in metals prices,

exchange rates, labor costs, electricity supply issues or many other factors. See R isk

Factors in Independent Technical Report 43 -101 Effective Date: October 17, 2016 on

www.sedar.com and the Company’s Annual Information Form. The Mineral Reserves are

estimated under SAMREC with no material difference to the CIM 2014 definitions in this

case.

The estimation of mineral reserves has taken into account environmental, permitting and

legal, title, taxation, socio-economic, marketing and political factors. Based on the cut-off

grade and a maximum depth cut-off of 1,250 metres the probable reserve will support an

18-year mine life.

An update to Mineral Resource based on completed in -fill drilling is in progress.

This updated estimate with increased confidence will be the basis of the DFS

mine design.

Qualified Person

R. Michael Jones, P.Eng., the Company’s President, Chief Executive Officer and a

shareholder of the Company, is a non-independent qualified person as defined in National

Instrument 43 -101 Standards of Disclosure for Mineral Projects (“NI 43 -101”) and is

responsible for preparing the technical information contained in this news release. He has

verified the data by reviewing the detailed information of the geological and engineering

staff and independent qualified person reports as wel l as visiting the Waterberg Project

site regularly.

PLATINUM GROUP METALS LTD. …4

About Platinum Group Metals Ltd.

Platinum Group is focused on , and is the operator of , the Waterberg Project, a bulk

mineable underground deposit in northern South Africa. Waterberg was discovered by the

Company. Waterberg has potential to be a low cost dominantly palladium mine and

Impala Platinum recently made a strategic investment in the Waterberg Project.

On behalf of the Board of

Platinum Group Metals Ltd.

R. Michael Jones

President, CEO and Director

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

Disclosure

The Toronto Stock Exchange and the NYSE American 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 ty pically

identified by words such as: believe, expect, anticipate, intend, 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 forwa rd-looking statements.

Forward-looking statements in this press release include, without limitation, JOGMEC’s

potential transfer of a portion of its interest in the Waterberg Project to Hanwa; the potential

for Implats to exercise its rights and fund addi tional development work on the Waterberg

Project; the timing and completion of a DFS; the completion of a DFS drill program and an

updated Mineral Resource estimate to increase the confidence in certain areas of the

Waterberg Project known Mineral Resource to the measured category; the filing and

acceptance of a mining right application for the Waterberg Project; the Waterberg Project’s

potential to be a large scale, bulk mineable, fully mechanized, low -cost dominantly palladium

mine. 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 additional financing requirements; the Company’s history of lo sses;

the Company’s inability to generate sufficient cash flow or raise sufficient additional capital to

make payment on its indebtedness, and to comply with the terms of such indebtedness; the

LMM Facility is, and any new indebtedness may be, secured and the Company has pledged its

shares of PTM RSA, and PTM RSA has pledged its shares of Waterberg JV Resources (Pty)

Limited (“Waterberg JV Co. ”) to Liberty Metals & Mining Holdings, LLC, a subsidiary of LMM,

under the LMM Facility, which potentially could re sult in the loss of the Company’s interest in

PLATINUM GROUP METALS LTD. …5

PTM RSA and the Waterberg Project in the event of a default under the LMM Facility or any

new secured indebtedness; the Company’s negative cash flow; the Company’s ability to

continue as a going concern; comple tion of the definitive feasibility study for the Waterberg

Project, which is subject to resource upgrade and economic analysis requirements; uncertainty

of estimated production, development plans and cost estimates for the Waterberg Project;

discrepancies between actual and estimated Mineral Reserves and Mineral Resources, between

actual and estimated development and operating costs, between actual and estimated

metallurgical recoveries and between estimated and actual production; fluctuations in the

relative values of the U.S. Dollar, the Rand and the Canadian Dollar; volatility in metals

prices; the failure of the Company or the other shareholders to fund their pro rata share of

funding obligations for the Waterberg Project; any disputes or disagreements w ith the other

shareholders of Waterberg JV Co. or Mnombo Wethu Consultants (Pty) Ltd ; the ability of the

Company to retain its key management employees and skilled and experienced personnel;

contractor performance and delivery of services, changes in contractors or their scope of work

or any disputes with contractors; conflicts of interest ; capital requirements may exceed its

current expectations; the uncertainty of cost, operational and economic projections; the ability

of the Company to negotiate and complete future funding transactions and either settle or

restructure its debt as required; litigation or other administrative proceedings brought against

the Company; actual or alleged breaches of governance processes or instances of fraud,

bribery or corruption; exploration, development and mining risks and the inherently

dangerous nature of the mining industry, and the risk of inadequate insurance or inability to

obtain insurance to cover these risks and other risks and uncertainties; property and mineral

title risks including defective title to mineral claims or property; changes in nationa l and local

government legislation, taxation, controls, regulations and political or economic developments

in Canada and South Africa; equipment shortages and the ability of the Company to acquire

necessary access rights and infrastructure for its mineral properties; environmental

regulations and the ability to obtain and maintain necessary permits, including environmental

authorizations and water use licences; extreme competition in the mineral exploration

industry; delays in obtaining, or a failure to obt ain, permits necessary for current or future

operations or failures to comply with the terms of such permits; risks of doing business in

South Africa, including but not limited to, labour, economic and political instability and

potential changes to and fai lures to comply with legislation; and other risk factors described

in the Company’s most recent Form 20 -F annual report, annual information form and other

filings with the U.S. Securities and Exchange Commission (“ SEC”) and Canadian securities

regulators, which may be viewed at www.sec.gov and www.sedar.com, respectively.

Proposed changes in the mineral law in South Africa if implemented as proposed would have a

material adverse effect on the Company’s business and potential interest in projects. Any

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

be required by applicable securities laws, the Company disclaims any intent or obligation to

update any forward- looking statement, whether as a result of new information, future events

or results or otherwise.

Estimates of mineralization and other technical information included herein have been

prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral

Projects (“NI 43 -101”). The definitions of proven and probable Mineral Reserves used in NI

43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7

standards, a “final” or “bankable” feasibility study is required to report Mineral Reserves, the

three-year historical average price is used in any Mineral Reserve or cash flow analysis to

designate Mineral Reserves and the primary environmental analysis or report must be filed

with the appropriate governmental authority. As a result, the reserves reported by th e

Company in accordance with NI 43 -101 may not qualify as “ Mineral R eserves” under SEC

standards. In addition, the terms “ Mineral Resource” and “measured Mineral Resource” are

PLATINUM GROUP METALS LTD. …6

defined in and required to be disclosed by NI 43 -101; however, these terms are not defined

terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and

registration statements filed with the SEC. Mineral Resources that are not Mineral Reserves do

not have demonstrated economic viability. Investors are cautioned not to assume that any

part or all of the mineral deposits in these categories will ever be converted into reserves.

Accordingly, descriptions of the Company’s mineral deposits in this press release may not be

comparable to similar information made public by U.S. companies subject to the reporting and

disclosure requirements of United States federal securities laws and the rules and regulations

thereunder.

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