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Corporate Presentation
September 2017
Platinum
Palladium
PLG: NYSE MKT
PTM: TSX
0
NEW IMAGE REQUIRED
Corporate Presentation
September 2017
Drilling at Waterberg PGM Discovery
Disclosure
TECHNICAL AND SCIENTIFIC INFORMATION
This presentation has been prepared by Platinum Group Metals Ltd. (“Platinum Group” or the “Company”). Information included in this presentation regarding the Company’s mineral properties has been
compiled by R. Michael Jones, P.Eng, the President and Chief Executive Officer of the Company, and a non-independent Qualified Person for purposes of National Instrument 43-101 - Standards of Disclosure
for Mineral Projects (“NI 43-101”), based on independent technical reports, and other information filed by the Company with the Canadian securities regulators and the U.S. Securities and Exchange
Commission (“SEC”).
For more detailed information regarding the Company and its mineral properties, you should refer to the Company’s independent technical reports and other filings with the Canadian securities regulators and
the SEC, which are available at www.sedar.com and www.sec.gov, respectively. Scientific and technical information contained herein is derived from the Company’s technical reports. Technical information
related to the Maseve Mine (WBJV Project 1 Platinum Mine) can be found in the August 28, 2015 technical report titled “An Independent Technical Report on the Maseve Project (WBJV Project Areas 1 and
1A) located on the Western Limb of the Bushveld Igneous Complex, South Africa and filed on www.sedar.com and www.sec.gov. Scientific or technical information contained herein related to the Waterberg
Project can be found in the October 19, 2016 technical report titled “Independent Technical Report on the Waterberg Project Including Mineral Resource Update and Pre-Feasibility Study” and filed on
www.sedar.com and www.sec.gov. Reference is made to such reports for more detailed information with respect to the Company’s properties, including details of quality and grade of each mineral reserve and
mineral resource estimate, details of the key assumptions, methods and parameters used in the mineral reserve and mineral resource estimates and a general discussion of the extent to which the mineral
reserve and mineral resource estimates and the other estimates and projections included in the reports may be materially affected by any known environmental, permitting, legal, taxation, socio-political,
marketing, or other relevant issues.
CAUTIONARY NOTE TO UNITED STATES INVESTORS
As a Canadian issuer that is eligible to use the U.S./Canada Multijurisdictional Disclosure System (MJDS), the Company is permitted to prepare its public disclosures and this presentation in accordance with
Canadian securities laws, which differ in certain respects from U.S. securities laws. In particular, this presentation uses the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”
and “inferred mineral resource”. While these terms are recognized and required by Canadian securities laws, they are not recognized by the SEC. In addition, “reserves” reported by the Company under
Canadian standards may not qualify as reserves under SEC standards. U.S. investors are cautioned not to assume that any part of a “mineral resource”, “measured mineral resource”, “indicated mineral
resource” or an “inferred mineral resource” will ever be converted into a “reserve.” Under U.S. standards, mineralization may not be classified as a “reserve” unless the mineralization can be economically and
legally extracted or produced at the time the “reserve” determination is made. “Inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic
and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Historical results or feasibility models presented herein are not
guarantees or expectations of future performance.
Information included in this presentation, the Company’s independent technical reports and the Company’s other public statements related to its mineral properties has been prepared in accordance with
securities laws in effect in Canada, which differ from U.S. securities laws. The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. The Company uses certain terms in this presentation, such as “resources,” that the SEC’s guidelines strictly prohibit U.S. public companies from including in their
filings with the SEC. Accordingly, information contained or referenced in this presentation containing descriptions of the Company’s mineral deposits may not be compatible to similar information made public by
U.S. companies subject to the reporting and disclosure requirements of U.S. federal securities laws, rules and regulations.
This presentation also contains information about adjacent properties on which the Company has no right to explore or mine. The Company advises you that the SEC’s mining guidelines strictly prohibit
information of this type in documents filed with the SEC. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties.
This presentation is not an offer to sell, or a solicitation to buy, any securities in any jurisdiction. The Toronto Stock Exchange and the NYSE MKT LLC have not reviewed and do not accept responsibility for the
accuracy or adequacy of this presentation, which has been prepared by the Company.
PLG: NYSE MKT | PTM: TSX 1PLG: NYSE MKT | PTM: TSX
Forward Looking Statements
This presentation 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, 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 forward-looking statements. Forward-looking
statements in this presentation include, without limitation, statements regarding the Maseve Sale Transaction including the potential to enter into definitive agreements, satisfy
conditions precedent and consummate the Maseve Sale Transaction as described herein; the anticipated terms and benefits of the Maseve Sale Transaction; the Company’s
intended use of proceeds derived from the Maseve Sale Transaction and its plans following the Maseve Sale Transaction and Company’s expected additional working capital
requirement to provide for its share of Maseve Mine costs; RBPlat assuming management of the Maseve Mine and the mine being placed on care and maintenance; potential
settlement or restructure of the Company’s secured debts; potential sales of assets, debt or equity; the Company’s ability to obtain further funding; corporate and asset level strategic
alternatives; the potential economics of the Waterberg Project, if developed; the Company’s key objectives; and the Company’s plans and estimates regarding exploration, studies,
development, construction, production, cash flows and other activities and developments. Statements of mineral resources and mineral reserves also constitute forward-looking
statements to the extent they represent estimates of mineralization that will be encountered on a property and/or estimates regarding future costs, revenues and other matters.
Although the Company believes the forward-looking statements in this presentation 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 risks related to indebtedness; risks related to the non-binding
nature of the Term Sheet and the uncertainty as to whether the parties can successfully negotiate a definitive agreement in respect of the Maseve Sale Transaction; the risks that the
terms of the Maseve Sale Transaction will change, that the transaction will not close or that the anticipated benefits thereof will not be realized; the Company’s 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 settlement or restructure of debt; 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 effect the Maseve Sale
Transaction; 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; risks related to contractor performance and labor disruptions; and other risk factors described in the Company’s Form 40-F annual report, annual information form and
other filings with the Securities and Exchange Commission 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 business and potential interest in projects. The
Company undertakes no obligation to update publicly or release any revisions to forward-looking statements to reflect events or circumstances after the date of this presentation or to
reflect the occurrence of unanticipated events except as required by law.
22PLG: NYSE MKT | PTM: TSXPLG: NYSE MKT | PTM: TSX
Overview of Platinum Group Metals Ltd.
3
▪ Large scale PGM reserves in South Africa – palladium and platinum.
▪ Waterberg Project: 2016 pre-feasibility study confirms Waterberg has the potential to be a large, low
cash cost per ounce PGM mine – primary palladium.
▪ Palladium market in fundamental deficit with strong demand and limited mine supply growth.
▪ Maseve Mine Divestiture: Announced September 6th 2017.
▪ Sale of Maseve to Royal Bafokeng Platinum Ltd. (RBP:JSE) for $74M in cash and stock.
▪ Maseve divestiture based on challenging ramp-up, capital constraints and decision to focus on
thick, mechanized development on the North Limb.
▪ Completion of Maseve sale will reduce debt and cash drain - position PTM with one of the best
development assets in the industry.
▪ Strategic process for external investment and offtake for Waterberg ongoing.
▪ Waterberg advancing to definitive feasibility and mining right application in 2017/2018.
PLG: NYSE MKT | PTM: TSX
PGM Exploration and Development Company Focused on Low-Cost Bulk Mechanized Mining
PLG: NYSE MKT | PTM: TSX
Bushveld Complex – South Africa
4PLG: NYSE MKT | PTM: TSXPLG: NYSE MKT | PTM: TSX
Share Structure and Capital Markets
Stock Symbol: PLG: NYSE MKT; PTM: TSX
Share Price: USD $0.70
52-Week High / Low: USD $3.08 / $0.51
Issued and Outstanding: 148,456,187
Options: 4,502,275
Fully Diluted: 152,958,462
Market Capitalization: USD $100M
5PLG: NYSE MKT | PTM: TSX
Analyst Coverage: BMO Capital Markets
Debt: $89 M USD (Sprott Lending and Liberty Metals Credit Facilities)
$20M USD Convertible Note
PLG: NYSE MKT | PTM: TSX
Palladium Price
Palladium outperforms; strongest recovery since January 2016
Source: SFA (Oxford)
PLG: NYSE MKT | PTM: TSX 6
Palladium Demand SummaryEnd use growth leading other PGMs since 2009
Source: SFA (Oxford)
5
6
7
8
9
10
11
2000 2002 2004 2006 2008 2010 2012 2014 2016
Palladium demand moz
Palladium Platinum + rhodium
> 10 moz
Palladium outperformance
PLG: NYSE MKT | PTM: TSX 7
0
250
500
750
1,000
1,250
1,500
-200
-150
-100
-50
0
50
100
150
200
250
300
2009 2010 2011 2012 2013 2014 2015 2016
Rh supply-demand balance (koz)
Balance
Stocks (rhs)
0
2
4
6
8
10
12
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015 2016
Pt supply-demand balance (moz)
Balance
Stocks (rhs)
0
5
10
15
20
25
30
-2.0
-1.5
-1.0
-0.5
0.0
0.5
2009 2010 2011 2012 2013 2014 2015 2016
Pd supply-demand balance (moz)
Balance
Stocks (rhs)
Market Fundamentals
Rapid depletion of Pd stocks; Pt and Rh stock draws limited
Source: SFA (Oxford). Note: s-d exclude investment. Stocks include ETFs and stock sales.
PLG: NYSE MKT | PTM: TSX 8
Source: SFA (Oxford), LMC Automotive. Note: BEV=battery electric vehicle; EREV= extended range electric vehicle; PHEV= plug in
hybrid electric vehicle; FCEV= fuel cell electric vehicle; FHEV= full hybrid electric vehicle; MHEV= mild hybrid electric vehicle
Electric Vehicle ThreatsPalladium-rich gasoline power (red) will continue to dominate….
Diesel21%
Gasoline76%
Full-hybrid, 69%
Mild-hybrid, 5%
BEV, 13%
EREV, 1%
PHEV, 9%
Fuel cell, 0.03%
Other, 3%
Other, 3%
Global powertrain splits 2015, %
Diesel Gasoline Full-hybrid Mild-hybrid BEV
EREV PHEV Fuel cell Other
…BEV only accounts for only <2m units by 2023 out of >100 m
Diesel19%
Gasoline73%
Full-hybrid, 39%
Mild-hybrid, 11%
BEV, 21%EREV, 1%
PHEV, 26%
Fuel cell, 0.03%
Other, 2%
Other, 8%
Global powertrain splits2023, %
PLG: NYSE MKT | PTM: TSX 9
Overview
▪ Sale of the 82.9%
ownership in Maseve Mine,
to RBP for USD $74M in
cash and stock.
▪ Maseve did not achieve
commercial production due
to challenging ramp up.
▪ Additional capital required
to complete ramp-up not
supported by lenders or
shareholders.
▪ Focus on North Limb and
Waterberg development
going forward.
Western Limb, Bushveld Complex
10PLG: NYSE MKT | PTM: TSXPLG: NYSE MKT | PTM: TSX
Sale of Maseve Mine to Royal Bafokeng Platinum Ltd.
Maseve Mine Divestiture – September 2017
Maseve Mine Divestiture – September 2017
11
▪ Transaction announced - subject to conditions precedent and approvals – September 6, 2017.
▪ Step 1 on Competition approval – USD $58M advance to PTM – sale of surface rights and plant.
▪ Step 2 on Section 11 DMR approval - USD $12M in shares of Royal Bafokeng Platinum Ltd.
(RBP:JSE) and approximately USD $4M in return of environmental bond.
▪ Proceeds of Step 1 to repay Sprott Lending USD $40M and Liberty Metals USD $18M.
▪ Proceeds of Step 2 to repay Liberty Metals.
▪ Sale will take time to close based on South African Competition Commission approval and Section
11 completion of the DMR.
▪ Remaining debt to Liberty Metals of approximately USD $15M
▪ Termination fee for production payment to Liberty Metals in negotiation.
PLG: NYSE MKT | PTM: TSX
Transaction Steps and Process
PLG: NYSE MKT | PTM: TSX
Waterberg PGM Project - Northern Limb – Primary Palladium
12PLG: NYSE MKT | PTM: TSX
* As a result of Platinum Group’s 49.9% ownership interest in Mnombo the Company has an effective interest in the Waterberg JV of 58.62% - see caution on BEE). .
** See October 19, 2016 Technical Report – www.sedar.com and Appendix for tonnes and grade.
Figures based on 100% project basis.
Super Competitive: Large, Thick, Near Surface – 12.32M 4E Ounces Probable Reserves
Probable Reserves stand at 12.32M 4E Ounces
Indicated Resource 24.89M 4E and Inferred 10.82M 4E
ounces.**
Fully Mechanized Mine Plan with Decline access near
surface = LOW COST
Platinum Group 58.62% (45.65% directly + 12.97%
indirectly), JOGMEC 28.35%, and BEE partner Mnombo
Wethu 26%.*
PTM in partnership with Japanese state Company
JOGMEC (Japan Oil, Gas, Metals National Corp.) has
discovered a new district with the potential for low-cost,
safe, bulk mechanized PGM mining.
The size and scale of the Waterberg Project represents a
significant alternative to narrow width, conventional, deep
Merensky and UG2 mining on the Western Limb.
PLG: NYSE MKT | PTM: TSX
13PLG: NYSE MKT | PTM: TSX
Waterberg PGM Project – Ownership Structure JOGMEC has completed USD $ 20M in funding
14PLG: NYSE MKT | PTM: TSX
Waterberg PGM ProjectProbable Reserve: 12.32M ounces (4E) – 102.7M tonnes grading 3.73 g/t 4E
All figures based on 100% project basisSee appendix details
15PLG: NYSE MKT | PTM: TSX
Waterberg PGM ProjectIndicated Resource: 24.886M ounces (4E) – 218M tonnes grading 3.55 g/t 4E
All figures based on 100% project basisSee appendix for details
16PLG: NYSE MKT | PTM: TSX
Waterberg PGM ProjectInferred Resource: 10.80M ounces (4E) – 97.212M tonnes grading 3.46 g/t 4E
All figures based on 100% project basisSee appendix for details
Waterberg PGM Project - A Unique Metal Balance
17PLG: NYSE MKT | PTM: TSX
Palladium Dominant With A Strong Gold Credit
18PLG: NYSE MKT | PTM: TSX
Waterberg PGM Project - Base Metal Content Projected Concentrate Amenable to Existing South African Smelters – Similar To Merensky Reef
Source: Company Reports
Waterberg PGM Project – PFS – October 19, 2016 Projected 4E Cash Costs - Before and After Credits and Costs
19PLG: NYSE MKT | PTM: TSX
Item
US$/oz 4E in Concentrate
Life-of-Mine
Average
5-Year Average
2022 - 2026
10-Year Average
2022 - 2031
Mine Site Cash Cost 389 390 374
Nickel Credits
Copper Credits
98
42
97
40
98
40
Total Mine Cash Costs After Credits 248 253 236
Realisation cost (smelter “cost”, transport) 232 224 231
Total Cash Costs After Credits 481 477 467
*See October 19, 2016 Press Release for details. www.sedar.com
20PLG: NYSE MKT | PTM: TSX
Waterberg PGM Project – Industry Cost Curve
Source: SFA (Oxford). Data for Waterberg is based on Platinum Group projections and is not representative of SFA's view
21PLG: NYSE MKT | PTM: TSX
Waterberg PGM Project
Waterberg Mining Complex - Central Super F Declines - Looking NE, Portal
*See October 19, 2016 Press Release for details. www.sedar.com
Waterberg PGM Project – PFS – October 19, 2016 Projected Steady State Production – 744,000 Ounces 4E
22PLG: NYSE MKT | PTM: TSX
*See October 19, 2016 Press Release for details. www.sedar.com
Waterberg PGM Project – PFS – October 19, 2016
23PLG: NYSE MKT | PTM: TSX
Projected Annual Cash Flow - Post Tax (ZAR)
*See October 19, 2016 Press Release for details. www.sedar.com
Economic Assumptions – Rand 15/USD$ Flat, No Escalation
Parameter Unit3 Year Trailing
Average(July 31, 2016)
Investment BankConsensus Price(Sept. 16, 2016)
PlatinumPalladiumGoldRhodiumT and F Combined Basket (4E)NickelCopper
USD/ozUSD/ozUSD/ozUSD/ozUSD/ozUSD/lbUSD/lb
1,212710
1,2299848996.102.56
1,213800
1,3001,0009607.502.90
PGM PayabilityCopper PayabiltyNickel Payability
% Gross Sales Pay% Gross Sales Pay% Gross Sales Pay
85%73%68%
24PLG: NYSE MKT | PTM: TSX
Rand devaluation assumed to equal excess South African cost escalation
Projected Financial Returns
Item Discount RateZAR
Millions(Before Tax)
ZAR Millions
(After Tax)
USD Millions
(Before Tax)
USD Millions
(After Tax)
Net Present Value Undiscounted4.0%6.0%8.0%
10.0%12.0%14.0%
36,09618,21312,6668,5655,5193,2491,555
25,04211,8837,8084,8052,584939-278
2,4061,214844571368217104
1,66979252032017262-19
Internal Rate of ReturnProject Payback Period (Years) from 2017
16.6%10
13.5%10
16.6%10
13.5%10
25PLG: NYSE MKT | PTM: TSX
*See October 19, 2016 Press Release for details on tonnage and grades. www.sedar.com
Three Year Trailing Average Price Deck 15R/USD
Projected Financial Returns
26PLG: NYSE MKT | PTM: TSX
Item Discount RateBefore Tax
(ZAR M)After Tax(ZAR M)
Before Tax(USD M)
After Tax(USD M)
Net Present Value Undiscounted4.0%6.0%8.0%
10.0%12.0%14.0%
45,78124,18017,42612,4028,6415,8123,676
31,94616,18411,2637,6104,8842,8421,311
3,0521,6121,162827576387245
2,1301,07975050732518987
Internal Rate of ReturnProject Payback Period (Years) from 2017
19.8%9
16.3%9
19.8%9
16.3%9
*See October 19, 2016 Press Release for details. www.sedar.com
Investment Bank Consensus Price Deck 15R/USD
Waterberg Project
Thick - amenable to bulk mechanized mining – higher skilled and educated work force.
Unique metal balance versus traditional South African PGM reefs – palladium dominant – strong gold credit.
Shallow - deposit starts 140m from surface.
Near surface T Reef and Super F allowing for potential multi decline ramp access for equipment - lower capital costs compared to vertical shafts.
Size allows for consideration of large scale operations and downstream options.
Desirable low chrome concentrate with base metal content amenable to existing smelters.
Why is Waterberg Different?
PLG: NYSE | MKT PTM: TSX27
Waterberg vs Stillwater
PLG: NYSE MKT | PTM: TSX 28
Waterberg Scale and Margin Rivals Stillwater Palladium Production
Source: Company Reports
Stillwater East Boulder Waterberg
2016 2016 PFS
OPERATING v PFS
Ore Milled tonnes/day 1,954 1,755 20,000
Plant Head Grade oz/t 0.49 0.37 0.12
Recoveries 93% 90% 82%
Annual Production 000oz 327 218 744
Current Spot Basket Price US$/oz 976 976 1009
FINANCIAL RESULTS
Total Cash Costs $/PGM oz mined 437 441 481
Gross Margin US$/oz 539 535 528
RESERVES
Tonnes Mt 18.33 27.34 102.7
PGM Ounces 2E v 4E (M) 10.47 10.73 12.3
▪ Existing known deposit extends for
13km and is open along strike
going North and at depth.
▪ Current drilling targeting open, up
dip “Super F” zones and thickening
“T” Zone in the south.
▪ Focus on areas 30m+ in thickness
at depths less than 200m from
surface.
▪ Thick, shallow “Super F” zones will
have important mine plan
implications.
▪ Feasibility Study drilling has begun.
▪ Potential for “Super T” zones in the
southern portion of the ore body.
Waterberg Project : Scale with Growth PotentialExtensive Land Package with Potential 30km+ Strike Length
PLG: NYSE MKT | PTM: TSX
13 km strike
PLG: NYSE MKT | PTM: TSX 29
PLG: NYSE MKT | PTM: TSX 30
Waterberg Project : Scale with Growth Potential3D Contour Model – Five Defined Initial Mining Areas – Thick and Shallow
Waterberg Project – Mechanized, Bulk Mining Potential Review of Mechanized Mining Methods
31
Fully Mechanized Mining uses equipment to access and mine the ore
A deposit thickness of 3 to 60 meters allows for a fully mechanized approach
Mechanized equipment allows fewer miners to process greater ore throughput and more effectively mine larger
stopes relative to conventional mining methods
Mechanized Mining Targets
PLG: NYSE MKT | PTM: TSX
PFS Planned Mining Methods
Sub-Level Open Stoping - Transverse Sub-Level Open Stoping - Longitudinal
PLG: NYSE MKT | PTM: TSX
Waterberg PGM Project - Development Timeline
32
Prefeasibility Study
Project Construction and Ramp-up
Feasibility Study
2017/2018
2016
PEA
Deliverables
Proven
Business Case
No fatal-flaws
Forward work-
plan
Action Steps
Additional exploration drilling
Geological modelling
Metallurgical test work
EIA / EMP / Permitting
Improve business case
Perform option trade-offs
Deliverables
Single Option selected
Ratified and optimised
business-case
Complete
Action Steps
Improve confidence in
engineering
Operational readiness study
Prepare for implementation
Deliverables
Full detailed-design and
costing
Implementation plan
Current Phase
File Mining Right
Application
The Waterberg Project has a completed PFS and is moving towards feasibility and permitting.
PLG: NYSE MKT | PTM: TSX
Completed Pre-Feasibility in 2016 Reinforces Path to Development
2018-2021
Complete
2014
PLG: NYSE MKT | PTM: TSX
Conclusions
Company controls 7 million ounces of very competitive and palladium and platinum reserves.
The total 100% resources at Waterberg are 35 million ounces 4E and the deposit is still open
The reserves at Waterberg are low cost based on thickness for full mechanized mining
Maseve sale allows for the significant reduction of debt and reduces cash drain.
The Company will focus on key drivers for value at the Waterberg Project.
Industry is in transition with tightening market; Company is a significant player in shift to bulk
mechanized PGM mining in the North Limb.
Palladium outperformance reflects structural deficit and highlights importance of Waterberg as one of
the only large scale, low cost, primary palladium discoveries in the world.
33PLG: NYSE MKT | PTM: TSX
Restructure and Focus on the Best Asset
Waterberg Project - Reserves
34PLG: NYSE MKT | PTM: TSX
Prill Splits - Mineral Reserve Estimate – October 17, 2016
Prill Split Grade
ZonePt Pd Au Rh Cu Ni
% % % % % %
T-Zone 29 49 21 1 0.16 0.08
F-Zone 30 64 5 1 0.07 0.16
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 Risk Factors in 43-101 report on www.sedar.comand the Company’s Annual Information Form. The 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 meters the Probable reserve will support an 18 year mine life.
Waterberg Project - Reserves
35PLG: NYSE MKT | PTM: TSX
Mineral Reserve Estimate – October 17, 2016
Probable Mineral Reserve at 2.5 g/t 4E Cut-off – Tonnage and Grades
Zone MtCut-off grade (g/t)
Pt (g/t)
Pd (g/t) Au (g/t) Rh (g/t) 4E (g/t) Cu (%) Ni (%)
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
Probable Mineral Reserve at 2.5 g/t Cut-off – Contained Metal
Zone MtPt
(Moz)Pd
(Moz)Au
(Moz)Rh
(Moz)4E
(Moz)
4Econtent
(kg)Cu (Mlb) Ni (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
Waterberg Project - Resources
36PLG: NYSE MKT | PTM: TSX
Mineral Resource Estimate – T-Zone and F-Zone – October 17, 2016
T-Zone 2.5 g/t Cut-off
Resource Category
Cut-offTonnage
Grade Metal
4E Pt Pd Au Rh 4E Cu Ni 4E
g/t Mt g/t g/t g/t g/t g/t % % Kg Moz
Indicated 2.5 31.540 1.13 1.90 0.81 0.04 3.88 0.16 0.08 122,375 3.934
Inferred 2.5 19.917 1.10 1.86 0.80 0.03 3.79 0.16 0.08 75,485 2.427
F-Zone 2.5 g/t Cut-off
Resource Category
Cut-offTonnage
Grade Metal
4E Pt Pd Au Rh 4E Cu Ni 4E
g/t Mt g/t g/t g/t g/t g/t % % Kg Moz
Indicated 2.5 186.725 1.05 2.23 0.17 0.04 3.49 0.07 0.16 651,670 20.952
Inferred 2.5 77.295 1.01 2.16 0.17 0.03 3.37 0.04 0.12 260,484 8.375
Waterberg Project - Resources
37PLG: NYSE MKT | PTM: TSX
Total Mineral Resource Estimate – October 17, 2016
Waterberg Total 2.5 g/t Cut-off
Resource Category
Cut-offTonnage
Grade Metal
4E Pt Pd Au Rh 4E Cu Ni 4E
g/t Mt g/t g/t g/t g/t g/t % % Kg Moz
Indicated 2.5 218.265 1.06 2.18 0.26 0.04 3.55 0.08 0.15 774,045 24.886
Inferred 2.5 97.212 1.03 2.10 0.30 0.03 3.46 0.06 0.11 335,969 10.802
4E = Platinum Group Elements (Pt+Pd+Rh+Au). The cut-offs for mineral resources have been established by a qualified person after a review of potential operating costs and other factors. The mineralresources stated above are shown on a 100% basis, that is, for the Waterberg Project as a whole entity. Conversion Factor used – kg to oz = 32.15076. Numbers may not add due to rounding. Resources donot have demonstrated economic viability. A 5% and 7% geological loss has been applied to the Indicated and Inferred categories respectively. Effective Date Oct 17, 2016. Metal prices used in the reserveestimate 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; US$1,212/ozPt, US$710/oz Pd, US$1229/oz Au, US$984/oz Rh, US$6.10/lb Ni, US$2.56/lb Cu, US$/ZAR15.
Total aggregate mineral resources at Waterberg on a 100% project basis have increased slightly since those reported in April 2016. Inferred category resources have decreased to an estimated 10.8 million4E ounces from 11.71 million ounces 4E Inferred in April, 2016. Indicated category resources have increased to an estimated 24.9 million 4E ounces, from 23.9 million 4E ounces Indicated in April 2016:
1. The mineral resources are classified in accordance with the SAMREC standards. There are certain differences with the "CIM Standards on Mineral Resources and Reserves"; however, in this case theQP believes the differences are not material and the standards may be considered the same. Mineral resources that are not mineral reserves do not have demonstrated economic viability and Inferredresources have a high degree of uncertainty.
2. The mineral resources are provided on a 100% project basis and Inferred and Indicated categories are separate and the estimates have an effective date of 17 October 2016.
3. A cut-off grade of 2.5 g/t 4E for both the T and the F-Zones is applied to the selected base case mineral resources.
4. Cut off for the T and the F-Zones considered costs, smelter discounts, concentrator recoveries from previous engineering work completed on the property by the Company. The resource model wascut-off at an arbitrary depth of 1,250 meters, although intercepts of the deposit do occur below this depth.
5. Mineral resources were completed by Mr. CJ Muller of CJM Consulting.
6. Mineral resources were estimated using kriging methods for geological domains created in Datamine from 303 original holes and 483 deflections. A process of geological modelling and creation ofgrade shells using indicating kriging was completed in the estimation process.
7. The estimation of mineral resources has taken into account environmental, permitting and legal, title, and taxation, socio-economic, marketing and political factors.
8. The mineral resources may be materially affected by metals prices, exchange rates, labor costs, electricity supply issues or many other factors detailed in the Company's Annual Information Form.
9. The data that formed the basis of the estimate are the drill holes drilled by Platinum Group, which consist of geological logs, the drill hole collars surveys, the downhole surveys and the assay data.The area where each layer was present was delineated after examination of the intersections in the various drill holes.
10. There is no guarantee that all or any part of the mineral resource not included in the current reserves will be upgraded and converted to a mineral reserve.
Platinum Group Metals Ltd.
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