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Dual-listed Platinum Group Metals’ results from an independent definitive feasibility study on its Waterberg project confirms it to be a world-class nature palladium deposit with the potential to be one of the largest fully mechanised, low cost PGM mines in the world.

South Africa – The DFS was completed by international and South African engineering firms Stantec Consulting International and DRA Projects SA along with a large team of specialists.

The DFS was managed by Waterberg JV Resources (representing the owners of Platinum Group, Impala Platinum Holdings, Japan Oil, Gas and Metals National Corporation, Hanwa Co. and Mnombo Wethu Consultants.

Highlights of the DFS include:

A significant increase in mineral reserves from the project’s 2016 pre-feasibility study (PFS) for a large-scale, shallow, decline-accessible, mechanised, palladium, platinum, gold and rhodium (4E) mine. Use of backfill in the DFS design lowers risk and increases mined ore extraction rates.

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An annual steady state production rate of 420 000 4E ounces, which is a lower production rate than in the PFS. This result is by careful design in order to reduce capital costs and simplify construction and ramp-up.

An after-tax net present value (NPV) of US$982 million, at an 8% real discount rate, using spot metal prices as at 4 September 2019 (Incl. $1 546/oz).

An after-tax internal rate of return (IRR) of 20.7% at spot prices.

Estimated project capital of approximately $874 million, including $87 million in contingencies. Peak project funding estimated at US$ 617 million.

Updated measured and indicated mineral resources of 242 Mt at 3.38g/t 4E for 26.4 million 4E ounces (using 2.5 g/t 4E cut-off) and the deposit remains open on strike to the north and below an arbitrary depth cut-off of 1 250 m.

Proven and probable mineral reserves of 187 Mt at 3.24 g/t 4E for 19.5 million 4E ounces (using 2.5 g/t 4E cut-off).

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R. Michael Jones, CEO and co-founder of Platinum Group says:

“A large global team of approximately 100 independent professionals and specialists as well as excellent participation from our partner Implats, have contributed to an optimised mining plan that reduced capital from the earlier plan and significantly increased the mineral reserves for a 45-year life, 420 000 4E ounce per year steady state mine plan”.

The Waterberg project will create approximately 1 100 new highly skilled jobs and a significant investment in local training and business opportunities is part of the benefits to stakeholders including local communities, shareholders, provincial and national governments.

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The project includes an upgrade to the local water infrastructure under a current co-operation agreement with the municipality and a connection to the Eskom power grid.