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

Client
The  prior Waterberg JV and  Waterberg Extension projects have  been consolidated into a unitised project area now known as the Waterberg JV. The transaction includes a firm $20-million funding commitment from JV partner Japan Oil, Gas, Metals National Corporation (Jogmec) over the next 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.

Platinum Group Metals (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.

It 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-bearing layers, starting at 140 m from the surface, with a consistent westerly dip. The deposit has to date 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.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
A preliminary economic assesment (PEA) for the original Waterberg JV was completed in June 2014. A prefeasibility study (PFS) is under way, with expected completion in late 2015 or early 2016.

Latest Developments
Drilling at PTM’s Waterberg project has demonstrated good continuity in the near-surface Super F zones, extending the Northern Super F zone up dip nearer to surface, the company has said in an update.

Drilling results include an intercept of 3.43 g/t of platinum-group metals (PGMs) over  5.55 m at a vertical depth of 173.5 m, as well as intercepts of 90.95 m, from a depth of between 466.28 m and 557.23 m, grading 3.71 g/t of PGMs with an estimated true thickness of 71 m.

Drilling on the T-zone has also confirmed depth continuity, including an intercept of 5.84 g/t of gold over 19 m, with a 15 m true width at a depth of between 812 m and 831 m.

PTM has said that the shape and orientation of Super F-zones with a thickness of 60 m or above is of “special interest” for mine planning in an ongoing prefeasibility study (PFS).

Drilling completed since the cutoff for the last resource update on July 22 has included 31 783 m in 44 holes and 58 deflections.

By November 8, about 280 676 m had been drilled at the Waterberg project in 275 diamond drill boreholes, with 444 deflections.

The latest drilling at Waterberg targeted increased resources through the expansion of thicker Super-F zones and the expansion of mineralised areas in the indicated category for a resource update, which is in progress.

“The deposit had been intersected, with excellent continuity, and a new area of Super-F had been identified with multiple intercepts,” PTM has said.

The T-, Central Super-F and Northern Super-F zones – which PTM considers the three highest-valued zones – will be targeted for inclusion in the mine design work.

The company has added that prefeasibility work, including design and preparation for power and water supplies, has continued throughout the year using a group of independent specialists.

“Metallurgical work to study deposit variability and optimise the potential flowsheet and concentrate recoveries is ongoing. This work has been encouraging,” the company contends.

A resource update, including recent drilling, is scheduled for completion in early 2016 and will be used for the prefeasibility mine plan.

Meanwhile, the consolidation of the project area in a recent agreement with Jogmec has allowed the full deposit strike length of 13 km, including shallow Super-F zones, to be considered and optimised in the PFS.

All the current project work continues to be funded by a commitment from Jogmec.

Key Contracts and Suppliers
WorleyParsons (PEA); DRA (qualified person role for the ongoing Waterberg PFS) and Coffey Mining (South Africa )(independent resource assessment).

On Budget and on Time?
The project continues to expand and operations have been within budget.

The PFS is expected to be completed in late 2015 or in early 2016.

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