Name of the Project
Waterberg project.

Location
On the northern limb of the Bushveld Complex, in Limpopo, South Africa.

Project Owner/s
The project is owned by Waterberg JV Resources, which is owned by Platinum Group Metals, or PTM, with 37.425%; Mnombo Wethu Consultants, with 26%; HJ Platinum Metals, or HJM, with 21.95%; and Impala Platinum, or Implats, with 14.625%. PTM holds a further 12.97% indirect interest in Waterberg through its 49.9% interest in Mnombo.

HJM was established by Japan Organization for Metals and Energy Security and Hanwa Co to hold and fund their aggregate future equity interests in the project. Implats has not funded its share of Waterberg cash calls since early 2024, resulting in a dilution of about 0.375% in its interest, while PTM has funded the shortfall.

Project Description
Waterberg is planned as a shallow, decline-accessible, fully mechanised platinum, palladium, rhodium and gold mine, with by-product copper and nickel production. The project is expected to rank among the world’s largest and lowest-cost underground platinum group metals mines.

The mine plan is based on a 54-year life-of-mine.

The 2024 definitive feasibility study (DFS) updated the 2019 DFS and increased proven and probable mineral reserves to 23.41-million ounces platinum, palladium, rhodium and gold (4E), comprising 246.2-million tonnes grading 2.96 g/t 4E, 0.08% copper and 0.17% nickel on a 100% project basis.

The 2024 DFS models steady-state production of 4.8-million tonnes of ore a year and life-of-mine average production of 353 208 oz/y 4E in concentrate. Maximum production is estimated at 432 950 oz/y 4E in concentrate.

The base-case mine plan starts with the F-Central deposit, accessed through twin decline tunnels and mined using fully mechanised longhole stoping and paste backfill. Production is planned at 400 000 t a month. Once production from the Central Complex starts to decline, the T-Zone and F-South zones are planned to be accessed from the F-Central infrastructure. A separate boxcut and portal are also planned later for the North Complex, with the South and North complexes then supporting production for the balance of the mine life.

Metallurgical assumptions are based on a standard South African flotation mill-float-mill-float circuit. PTM is also investigating Jameson Cell high-intensity compact flotation technology as part of work on possible staged development options.

Potential Job Creation
The project is expected to create about 2 000 jobs during construction and 1 425 permanent jobs once steady-state mining is achieved.

A new five-year social and labour plan, starting in 2026, has been developed with community input and submitted to the Department of Mineral Resources for review and approval.

Net Present Value/Internal Rate of Return
The 2024 DFS estimates an after-tax net present value, at an 8% real discount rate, of R11.56-billion and an internal rate of return of 14.2%, using average long-term consensus metal prices as at May 2024. Payback from first production is estimated at 5.8 years.

Capital Expenditure
The 2024 DFS estimates total capital expenditure (capex) at R18.86-billion, including 8.5% for contingencies. Peak capital is estimated at R15.43-billion.

Planned Start/End Date
The 2024 DFS forecasts first production in September 2029 and ramp-up to steady state by May 2032.

Latest Developments
PTM’s near-term objective remains to advance Waterberg to a development and construction decision, including the arrangement of construction financing and concentrate offtake agreements.

In September 2025, Waterberg JV approved a Stage 6 budget of R92.1-million for work programmes to continue to August 31, 2026. The budget includes components of the previously approved $21-million preconstruction programme. About half of that programme remains to be completed, including initial road access, water supply, essential site facilities, a first-phase accommodation lodge, site construction power supply and advancement of the Waterberg social and labour plan.

PTM and Waterberg JV are continuing to assess commercial alternatives for mine development financing and concentrate offtake. PTM has engaged with South African integrated producers on possible formal concentrate offtake arrangements, but no terms have been agreed.

As an alternative, PTM has studied smelter and base metal refinery options in Saudi Arabia or South Africa. South African government approval would be required for the export of concentrate or matte for processing in Saudi Arabia, and senior government officials have indicated a preference for beneficiation in South Africa. PTM is also investigating collaboration with smaller South African furnace operators, which could allow for project development and smelting capacity to be staged.

PTM is also studying a possible staged development route that would start with decline development into the T-Zone, followed by smaller-scale T-Zone mining and later expansion into the F-Central deposit. No decision has been made to change the DFS base case. The company has said the T-Zone has a higher 4E grade than F-Central and a more favourable prill split at current metal prices, which could support a lower-capex staged development option.

In March 2026, PTM entered into an at-the-market equity programme to distribute up to $60-million of common shares. Net proceeds from any sales are intended for staged development programmes at Waterberg and for general corporate and administrative expenses.

Key Contracts, Suppliers and Consultants
Stantec Consulting International and DRA Projects (independent DFS update); Fraser McGill (engineering oversight and project management). Charles Muller of CJM Consulting (mineral resource estimate); and Rob van Egmond (independent qualified person under NI 43-101 – review and approval of scientific and technical information).

Contact Details for Project Information
Platinum Group Metals, tel +27 11 782 2186 or email info@platinumgroupmetals.net.