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, was $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 is "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.

Waterberg was discovered by PTM and its JV partners in late 2011. The deposit has been studied since its discovery in cooperation with the University of the Witwatersrand.

Its mineralogy and age date have suggested it is a Bushveld Complex deposit, but in a new set of layers and geological domain. Waterberg is not aligned with the classic South African platinum reefs of the Merensky, upper group two or Platreef.

Effective July 20, 2015, the mineral resources at Waterberg on a 100% project basis have increased to an estimated 25.64-million ounces of platinum, palladium and gold (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, 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).

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
A preliminary economic assessment (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
PTM has defined five large potential mining blocks, each at a scale typical of a standalone South African platinum mine shaft or decline complex, at its Waterberg discovery.

More than 90% of recent infill drilling on the Waterberg deposit has intersected the T and F layers of mineralisation, extending the deposit up-dip and at depth.

According to the explorer, confirmation drilling has delineated large-scale F-zone blocks at grades higher than the deposit average, which could be separately modelled and prioritised for mining in an ongoing PFS. New high-grade T-zone blocks are also emerging at depth.

PTM explains that higher-grade intercepts, combined with earlier higher-grade cuts, have created specific blocks that will be considered in prefeasibility mine planning and engineering work. An updated resource calculation is in progress, modelled on 2.5 g/t, 3.5 g/t and 4 g/t platinum, palladium, rhodium and gold (4E) lower cutoff grades for the identified blocks.

Further drilling is under way to offset these new high-grade T-zone intercepts. This has been approved by the Waterberg JV, which is funded by Jogmec.

The term ‘super’ in the Super T-zone designates an intercept thickness of greater than 6 m at more than 5 g/t. In the F zone, ‘super’ is used for an intercept of more than 10 m. True thickness is about 79% of the reported intercept width.

The company said it would be logical to consider intercepts at up to 6 m vertical thickness for standard mechanised mining methods. At 6 m to 10 m thick, other methods for mechanised extraction could be considered, while beyond 10 m thick, bulk underground mining methods might be considered.

PTM expected to publish a resource update at the end of March, and the PFS is expected to be complete by July. PTM plans to submit its application for a mining right by the end of the year, while a bankable feasibility study is in progress for publication in 2017.

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.

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