PLG: NYSE MKT PTM: TSX. Platinum Palladium. Corporate Presentation February 2017

Transcription

1 PLG: NYSE MKT PTM: TSX Platinum Palladium Corporate Presentation February

2 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 Standards of Disclosure for Mineral Projects ( NI ), 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 and 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 and 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 and 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: 1

3 Forward Looking Statements Certain of the statements made herein, including statements regarding the Company s business plans and objectives; production estimates and assumptions, including production rate, grade per tonne and smelter recovery; production timing; revenue, cash flow and cost estimates and assumptions; statements with respect to future events or future performance; anticipated exploration, development, construction, production, permitting and other activities on the Company s properties; ; the adequacy of capital, financing needs and the availability of and potential for receiving further commitments; project economics; future metal prices and exchange rates; mineral reserve and mineral resource estimates; and potential changes in the ownership structures of the Company s projects constitute forward-looking statements and forward-looking information within the meaning of applicable U.S. and Canadian securities legislation (collectively, forward-looking statements ). Forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements in respect of capital costs, operating costs, production rate, grade per tonne and concentrator and smelter recovery are based upon the estimates in the technical reports referred to herein and in the documents referred to herein and ongoing cost estimation work, and the Forward-looking Statements in respect of metal prices and exchange rates are based upon the three year trailing average prices and the assumptions contained in such technical reports and ongoing estimates. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual events or results to differ materially from those discussed in the forward-looking statements, and even if events or results discussed in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of production, development plans and cost estimates for the Maseve Mine (WBJV Project 1 and Project 3); additional financing requirements to achieve the Company s business objectives and remain in compliance with the covenants set forth in its debt financing facilities; the Company s history of losses; the inability of the Company to generate sufficient cash flow to make payment on its indebtedness under its debt financing facilities and comply with the restrictions imposed by such indebtedness; the debt financing facilities are secured and the Company has pledged its shares of its South African subsidiary to the lenders which potentially could result in the loss of the Company s interest in the Maseve Mine, the Waterberg Project and in the South African subsidiary in the event of a default under either facility; the Company s negative cash flow; the Company s ability to continue as a going concern; delays in the production ramp-up of the Maseve Mine which could result in a default under its debt financing facilities; delays in, or inability to achieve, planned commercial production; completion of a feasibility study for the Waterberg Project, which is subject to resource upgrade and economic analysis requirements; discrepancies between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs, between actual and estimated metallurgical recoveries and between actual and estimated production; fluctuations in the relative values of the U.S Dollar, the Rand and the Canadian dollar; volatility in metal prices; the failure of the Company or its joint venture partners to fund their pro-rata share of funding obligations for Project 1 or the Waterberg Project; the inability of the Company to find an additional and suitable joint venture partner for Project 1 and Project 3 within such timeframe as may be determined by the South African Department of Mineral Resources; any disputes or disagreements with the Company s joint venture partners; the ability of the Company to retain its key management employees and skilled and experienced personnel; contractor performance and delivery of services, changes in contractors or their scope of work or any disputes with contractors; conflicts of interest; litigation or other legal or administrative proceedings brought against the Company; actual or alleged breaches of governance processes or instances of fraud, bribery or corruption; exploration, development and mining risks and the inherently dangerous nature of the mining industry, including environmental hazards, industrial accidents, unusual or unexpected formations, safety stoppages (whether voluntary or regulatory), pressures, mine collapses, cave-ins or flooding and the risk of inadequate insurance or inability to obtain insurance to cover these risks and other risks and uncertainties; property and mineral title risks including defective title to mineral claims or property; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, South Africa or other countries in which the Company does or may in the future carry out business; equipment shortages and the ability of the Company to acquire the necessary access rights and infrastructure for its mineral properties; environmental regulations and the ability to obtain and maintain necessary permits, including environmental authorizations and water use licences; extreme competition in the mineral exploration industry; delays in obtaining, or a failure to obtain, permits necessary for current or future operations or failures to comply with the terms of such permits; risks of doing business in South Africa, including but not limited to labor, economic and political instability and potential changes to and failures to comply with legislation; and the other risks disclosed in the Company s Annual Information Form for the year ended August 31, 2016, which is available on SEDAR at and is included as part of the Company s Form 40-F annual report filed with the SEC at You are advised to review these risk factors, and not to place undue reliance on forward-looking statements. 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. In this presentation, US$ refers to U.S. dollars, C$ refers to Canadian dollar and R refers to South African Rand. 2

4 Overview of Platinum Group Metals Ltd. PGM Producer with Strategic, Large Scale, Shallow, Competitive Assets - 10M 4E Ounces in Reserves Waterberg Project Large scale reserves in two deposits in South Africa palladium and platinum. Maseve Mine: $500M USD completed mine build on the Western Limb in ramp-up phase. Maseve Mine PGM Flotation Mill Waterberg Project: Pre-feasibility study confirms the project has the potential to be one of the largest, lowest cash cost per ounce PGM mines primary palladium. N Maseve Mine Waterberg moves to definitive feasibility and mining right application in Palladium market in fundamental deficit with strong demand and limited mine supply growth. Waterberg Central Super F Long Hole Mine Plan 3

5 Management Track Record USD $200M Market Cap. Operating the Maseve mine in South Africa Major new PGM discovery at Waterberg USD $1B+ Market Cap. Advancing Juanicipio JV in Mexico Partnered with Fresnillo Sold to Lakeshore Gold for $424M in 2009 Lakeshore acquired by Tahoe for $945M in 2016 Acquired distressed gold assets from Allied Nevada Low cost, shovel ready - $30M Market Cap. 4

6 Overview of Platinum Group Metals Ltd. The Bushveld Complex South Africa 70% of Global Platinum Production 5

7 Share Structure and Capital Markets Stock Symbol: PLG: NYSE MKT; PTM: TSX Share Price: USD $ Week High / Low: USD $4.04 / $0.96 Issued and Outstanding: 133,066,187 Market Capitalization: USD $225M Debt: $87.8M USD (Sprott Lending and Liberty Metals) Analyst Coverage: BMO Capital Markets, RBC Capital Markets Major Shareholders: BlackRock, Franklin, Liberty Metals 6

8 Platinum Group Metals Ltd - World Class Mineral Inventory 10.6M P&P Reserves, 20M M&I and 6.4M Inferred Resources (4E) Reserve Ounces: 4.3 Million M&I Ounces: 7.8 Million Inferred Ounces: 1.9 Million Reserve Ounces: 677,000 M&I Ounces: 1.3 Million Inferred Ounces: 545,000 Reserve Ounces: 5.3 Million M&I Ounces: 10.4 Million Inferred Ounces: 3.8 Million For details on tonnes and grade see Appendix. Attributable ounces based on 83% WBJV and 58.62% Waterberg ownership respectively. Mineral Reserves are a subset of the Mineral Resources. (Technical reports filed on WBJV Mineral Resources were completed by Charles Muller of CJM Consulting, and the Mineral Reserves were prepared by Gert Roets of DRA July 15,, Waterberg Mineral Resources completed by Charles Muller of CJM Consulting, Mineral Reserves prepared by Robert Goosen of WorleyParsons/Advisian October 17, WBJV 100% P&P Reserves: 4.12M ounces ( 4E ) 32.44M tonnes grading 3.95 g/t 4E (2.51 g/t Pt, 1.05 g/t Pd, 0.25 g/t Rh, 0.14 g/t Au, 2.50 g/t cut-off). WBJV 100% M&I Merensky Resource: 3.86M ounces ( 4E ) 21.82M tonnes grading 5.51 g/t 4E (3.53 g/t Pt, 1.49 g/t Pd, 0.21 g/t Rh, 0.28 g/t Au) WBJV 100% M&I UG2 Resource: 2.77M ounces ( 4E ) 22.68M tonnes grading 3.80 g/t 4E (2.39 g/t Pt, 0.99 g/t Pd, 0.38 g/t Rh, 0.04 g/t Au) Waterberg 100% Probable Reserve: 12.32M ounces ( 4E ) 102.7M tonnes grading 3.73 g/t 4E (1.11 g/t Pt, 2.29 g/t Pd, 0.29 g/t Au, 0.04 g/t Rh, 2.50 g/t cut-off). Waterberg 100% Indicated Resource: M ounces ( 4E ) 218M tonnes grading 3.55 g/t 4E (1.06g/t Pt, 2.18 g/t Pd, 0.26 g/t Au, 0.04 g/t Rh, 2.50 g/t cut-off). Waterberg 100% Inferred Resource::10.80M ounces ( 4E ) M tonnes grading 3.46 g/t 3E (1.03g/t Pt, 2.10g/t Pd, 0.30g/t Au, 0.03 g/t Rh,2.5 g/t cut-off). 7

9 PGM Prices Palladium outperforms; strongest recovery since January 2016 PGM prices US$/oz 1,500 1,300 1, Jan-15 Jul-15 Jan-16 Jul-16 Platinum Palladium Rhodium PGM price index 100=Jan 1, Jan-15 Jul-15 Jan-16 Jul-16 Platinum Palladium Rhodium Source: SFA (Oxford) 8

10 Market Fundamentals Rapid depletion of Pd stocks; Pt and Rh stock draws limited Pd supply-demand balance (moz) Pt supply-demand balance (moz) Rh supply-demand balance (koz) Balance Stocks (rhs) Balance Stocks (rhs) 1,500 1, , Balance Stocks (rhs) Source: SFA (Oxford). Note: s-d exclude investment. Stocks include ETFs and stock sales. 9

11 Palladium Demand Summary End use growth leading other PGMs since 2009 Palladium demand moz Palladium Platinum + rhodium Palladium outperformance > 10 moz Source: SFA (Oxford) 10

12 Electric Vehicle Threats Palladium-rich gasoline power (red) will continue to dominate.. Global powertrain splits 2015, % Gasoline 76% Diesel 21% PHEV, 9% EREV, 1% Fuel cell, BEV, 13% 0.03% Mild-hybrid, 5% Other, 3% Full-hybrid, 69% Other, 3% Global powertrain splits 2023, % Gasoline 73% Diesel 19% Other, 8% BEV, 21% Mild-hybrid, 11% PHEV, 26% EREV, 1% Full-hybrid, 39% Fuel cell, 0.03% Other, 2% 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 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 11

13 Maseve Platinum Mine Maseve Mine: Ore Silo, Conveyor and Primary Crusher 12

14 Maseve Mine - Overview Overview Western Limb, Bushveld Complex 82.9% ownership in Maseve Mine formerly known as WBJV Project 1. Mining permit granted in Smelter offtake goes to Anglo Platinum life of mine. Commissioning completed in April 2016 currently in ramp up phase. 13

15 Maseve Mine - Overview Maseve Mine is 32 km North of Rustenburg. One of the last pieces of the Merensky Reef above 1000 meters shallow, high grade. All required permits including the Water Use License are in place. The Mine is built and represents over $500M equity and debt investment largely completed in 2015/2016. Maseve Mine, Ore Silo and Plant 14

16 Maseve Mine Reserves and Resources 4.1M Ounces P&P Reserves and 6.63M Ounces M&I Resources (4E) - 100% Project Basis See July 15, 2015 Press Release Maseve (WBJV Project 1) Update. For details on tonnes and grades see Appendix. Figures based on 100% Project Basis PTM owns 82.9% of the Maseve Mine Maseve 100% P&P Reserves: 4.12M ounces ( 4E ) 32.44M tonnes grading 3.95 g/t 4E (2.51 g/t Pt, 1.05 g/t Pd, 0.25 g/t Rh, 0.14 g/t Au, 2.50 g/t cut-off). Maseve 100% M&I Merensky Resource: 3.86M ounces ( 4E ) 21.82M tonnes grading 5.51 g/t 4E (3.53 g/t Pt, 1.49 g/t Pd, 0.21 g/t Rh, 0.28 g/t Au) Maseve 100% M&I UG2 Resource: 2.77M ounces ( 4E ) 22.68M tonnes grading 3.80 g/t 4E (2.39 g/t Pt, 0.99 g/t Pd, 0.38 g/t Rh, 0.04 g/t Au Mineral Resources were completed by Charles Muller of CJM Consulting, and the Mineral Reserves were prepared under the supervision of Gert Roets of DRA Resources may never become reserves, figures may change during project implementation in progress. A report with respect to the technical information contained here has been filed on August 28,

17 Maseve Mine 2017 Production Guidance Updated Guidance and Mine Plan Commercial Production Target Calendar H1, 2017 Production Guidance: Amended and Updated January 2017: 2017 Calendar Year: 100,000 to 120,000 ounces 4E* Commercial Production Target: Calendar H1, 2017 Steady State Estimate: 250,000 ounces 4E/year Contractor Consolidation and Block 11 Focus: Key management changes and contractor strategy implemented in late Redpath Mining has taken over as the principal mining contractor. Contractor consolidation has led to a reduction in the overall labour complement by approximately 300 employees - less duplication and better reporting. Focus on mining and development in Block 11 going forward. See January 13, 2017 Press Release: Q Results and Update * 16

18 Maseve Mine In Production Mining and Production Underway Current workforce: Approx. 1,800 people on site; good safety record. Mining: Development and mining in blocks 9, 10, 11, 12 and 16 are in progress with 23 reef ends open. Block 11: Flat, thick and high grade; key block for production in Mining underway. Processing: All major components installed and commissioning completed. Main decline conveyor and chairlift operational. Power: 20MVA installation complete, power steady as needed. 17

19 Maseve Mine - One Year Plan - North Shaft Month Planned Colours November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 North Shaft Block 10 Block 11 Block 9 Block 12 18

20 Maseve Mine Block 11 - Bord and Pillar, Hybrid Mining Reef Drives North and South In Progress Average channel width of 1.46 metres at 6.82 g/t 4E Tabular reef at a 10 degree dip well developed. Large flat area confirmed with drilling and underground development. Majority of tonnage profile for the next three years planned from Block 11. Layouts completed for next two years of bord and pillar and hybrid mining. Double decline access and ventilation completed in December Expected to contribute approximately 50% (30,000 tonnes) to mined ore flow in January During 2017 Block 11 is planned to provide up to 76,000 tonnes per month of mined ore. 19

21 Maseve Mine - Bord and Pillar, Hybrid and Development Plan Blocks 10 and 11 - One Year Mine Plan by Month BLOCK 11 Bord and Pillar Channel width > 1.5m Block 10 mid Block 11 Month Planned Colours November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 Block 10 South September 2017 BLOCK 11 Hybrid Mining Channel Width < 1.5m October

22 Maseve Mine Redpath Partnership Redpath Infrastructure Investment Redpath Mining South Africa (Pty) Ltd. (subsidiary of Canadian-headquartered Redpath Mining Contractors and Engineers) awarded tender to develop and mine Block 11 and appointed principal mining contractor at Maseve. Redpath has been mining long hole sections in Blocks 9 and 12 to date. Proposed investment by Redpath of 25M ZAR ($1.8M approx.) to construct the 1.0 km conveyor linking Block 11 to underground silos, surface conveyor and milling facility. Redpath will earn back its investment based on a charge per tonne of ore conveyed has added four trucking units on a rental basis in the interim. Synergistic investment represents confidence in the potential at Maseve as production ramps up in

23 Maseve Mine Block 11 Conveyor Loading Design 22

24 Mining - Blocks 12 and 9A Sub Level Long Hole Stoping Isometric View - Mine Plan by Month Block 12 (Long Hole) Month Planned Colours November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 Block 9A (Long Hole) PLG: NYSE MKT I PTM: TSX 23

25 Infrastructure North Shaft Underground Ore Silos Vent Shaft N1 Vent Shaft N2 Electrical Sub-station Workshops Settlers Silo s 1,2 & 3 Shaft Bottom 24

26 Maseve Mine Primary Crusher and Conveyor System In Operation at Rated Capacity 25

27 Maseve Mine Processing Facility: Mill, Flotation Circuit and Concentrator Proven Performance 125 KTPM 26

28 Maseve Mine Mill Flotation and Concentrate Filter Press - Operating at Design Criteria 27

29 Waterberg Palladium Project Waterberg Project: Drill Rig

30 Waterberg PGM Project - Northern Limb - NEW PARADIGM 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 % 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. * 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 October 19, 2016 Technical Report and Appendix for tonnes and grade. Figures based on 100% project basis. 29

31 Waterberg PGM Project Ownership Structure Waterberg Joint Venture: $6M Funding in Place for 2016/ % JOGMEC 30

32 Waterberg PGM Project Probable Reserve: 12.32M ounces (4E) 102.7M tonnes grading 3.73 g/t 4E All figures based on 100% project basis 31

33 Waterberg PGM Project Indicated Resource: M ounces (4E) 218M tonnes grading 3.55 g/t 4E All figures based on 100% project basis 32

34 Waterberg PGM Project Inferred Resource: 10.80M ounces (4E) M tonnes grading 3.46 g/t 4E All figures based on 100% project basis 33

35 Waterberg PGM Project - A Unique Metal Balance Palladium Dominant With A Strong Gold Credit 34

36 Waterberg PGM Project - Base Metal Content Projected Concentrate Amenable to Existing South African Smelters Similar To Merensky Reef Source: Company Reports 35

37 265m 125m 175m 185m Waterberg PGM Project Project Location - Planned Portal and Underground Layout NSFZ North Super Zone BSFZ Boundary Super F Zone CSFZ Central Super F Zone T Zone N NSFZ North Super Zone Portal & Mining Area BSFZ Boundary Super F Zone Portal & Mining Area CSFZ Central Super F Zone Portal & Mining Area T Zone Portal & Mining Area *See October 19, 2016 Press Release for details. 36

38 Waterberg PGM Project PFS October 19, 2016 Projected 4E Cash Costs - Before and After Credits and Costs Item Life-of- Mine Average US$/oz 4E in Concentrate 5-Year Average Year Average Mine Site Cash Cost Nickel Credits Copper Credits Total Mine Cash Costs After Credits Realisation cost (smelter cost, transport) Total Cash Costs After Credits *See October 19, 2016 Press Release for details. 37

39 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 38

40 Waterberg PGM Project Waterberg Mining Complex - Central Super F Declines - Looking NE, Portal *See October 19, 2016 Press Release for details. 39

41 Waterberg PGM Project PFS October 19, 2016 Projected Steady State Production 744,000 Ounces 4E *See October 19, 2016 Press Release for details. 40

42 Waterberg PGM Project PFS October 19, 2016 Projected Annual Cash Flow - Post Tax (ZAR) *See October 19, 2016 Press Release for details. 41

43 Economic Assumptions Rand 15/USD$ Flat, No Escalation Parameter Unit 3 Year Trailing Average (July 31, 2016) Investment Bank Consensus Price (Sept. 16, 2016) Platinum Palladium Gold Rhodium T and F Combined Basket (4E) Nickel Copper USD/oz USD/oz USD/oz USD/oz USD/oz USD/lb USD/lb 1, , , ,300 1, PGM Payability Copper Payabilty Nickel Payability % Gross Sales Pay % Gross Sales Pay % Gross Sales Pay 85% 73% 68% Rand devaluation assumed to equal excess South African cost escalation 42

44 Projected Financial Returns Three Year Trailing Average Price Deck 15R/USD Item Discount Rate ZAR Millions (Before Tax) ZAR Millions (After Tax) USD Millions (Before Tax) USD Millions (After Tax) Net Present Value Undiscounted 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 36,096 18,213 12,666 8,565 5,519 3,249 1,555 25,042 11,883 7,808 4,805 2, ,406 1, , Internal Rate of Return Project Payback Period (Years) from % % % % 10 *See October 19, 2016 Press Release for details on tonnage and grades. 43

45 Projected Financial Returns Investment Bank Consensus Price Deck 15R/USD Item Discount Rate Before Tax (ZAR M) After Tax (ZAR M) Before Tax (USD M) After Tax (USD M) Net Present Value Undiscounted 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 45,781 24,180 17,426 12,402 8,641 5,812 3,676 31,946 16,184 11,263 7,610 4,884 2,842 1,311 3,052 1,612 1, ,130 1, Internal Rate of Return Project Payback Period (Years) from % % % % 9 *See October 19, 2016 Press Release for details. 44

46 Waterberg Project Why is Waterberg Different? Thick - amenable to bulk mechanized mining higher skilled and educated work force. 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. PLG: NYSE MKT PTM: TSX 45

47 Waterberg Project Why is Waterberg Different? Thickness makes the difference in ounces, mining methods and costs. A typical mining block in the Merensky Reef is 1m thick and 250m X 250m contains 30,000 ounces On the Super T Zone, an actual 250m X 250m Block in the PFS is 11m thick at 5.02 g/t and contains estimated 258,000 ounces 4E, Indicated On the Super F Zone an actual 250m x 250m Block in the PFS is 25.2m thick at 4.12 g/t 4E and contains an estimated Indicated 613,725 ounces 4E, Indicated (Blocks from Resource Model Independent Technical Report On the Waterberg Project, Oct 19, 2016, T Zone Block Model Example PLG: NYSE MKT PTM: TSX 46

48 Waterberg Project : Scale with Growth Potential Extensive Land Package with Potential 30km+ Strike Length 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. 13 km strike 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. 47

49 Waterberg Project : Scale with Growth Potential 3D Contour Model Five Defined Initial Mining Areas Thick and Shallow 48

50 Waterberg Project Mechanized, Bulk Mining Potential Review of Mechanized Mining Methods Mechanized Mining Targets 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 PFS Planned Mining Methods Sub-Level Open Stoping - Transverse Sub-Level Open Stoping - Longitudinal 49

51 North Limb Future of Global PGM Production North Limb Beats Both Western Limb and Zimbabwe Capital, Time and Volume Western Limb* Zimbabwe* Waterberg Average Depth 1,000 to 1,500 Metres 200 Metres 140 to 1,250 Metres Annual Throughput 2.7 MTPA 2.0 MTPA 7.2 MTPA Annual Production 180,000 Ounces Pt 90,000 Ounces Pt 744,000 Ounces 4E Time To Production 10 to 12 Years 6 Years 3.5 Years Expected Capital Investment ZAR 12B ($870M USD) $300M USD $914M USD Employees 6,000 1,000 3,300 *Source: Impala Platinum PGM Supply Conundrum September 14, 2016 Presentation 50

52 Waterberg PGM Project - Development Timeline Completed Pre-Feasibility in 2016 Reinforces Path to 2018 Construction Start Complete Current Phase 2014 PEA Deliverables Proven Business Case No fatal-flaws Forward workplan Complete 2016 Prefeasibility Study 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 File Mining Right Application 2017 Feasibility Study Action Steps Improve confidence in engineering Operational readiness study Prepare for implementation Deliverables Full detailed-design and costing Implementation plan Project Construction and Ramp-up The Waterberg Project has a completed PFS and is moving towards feasibility and permitting. 51

53 Conclusions 2017 Milestones Maseve Positive Cash Flow and Advancement at Waterberg Company controls large scale shallow resources with 20 years plus of competitive platinum and palladium exposure. Maseve Mine commissioned; one of the best grade thickness blocks accessed; ramp up underway. Waterberg: Pre-Feasibility Study (October 2016) complete; Final feasibility and Mining Right Application in Waterberg: $6M growth investment for 2017 funded by Japanese partner on a world class discovery; continued exploration and engineering in 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. 52

54

55 Maseve Mine - Reserves and Resources Estimated Reserves 100% Project Basis July 15, 2015 Reserve tonnes Mt Pt g/t Pd g/t Rh g/t Au g/t Reserve 4E Grade - g/t Reserve 4E Content t Reserve 4E Content Moz MR Proven and Probable UG2 Proven and Probable Total Merensky Reserve Reserve tonnes Mt Pt g/t Pd g/t Rh g/t Au g/t Reserve 4E Grade - g/t Reserve 4E Content t Reserve 4E Content Moz Proven Probable Total UG2 Reserve Reserve tonnes Mt Pt g/t Pd g/t Rh g/t Au g/t Reserve 4E Grade - g/t Reserve 4E Content t Reseve 4E Content Moz Proven Probable Total Mineral Resources and Mineral Reserves 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 the Company believes the differences are not material and the standards may be considered the same. 2. Mineral Reserves are a subset of the Mineral Resources and are provided on a 100% project basis. 3. Mineral Reserves are supported by a mine plan that uses conventional, hybrid and bord and pillar mining with varying costs and thickness. 4. A planning cut-off grade of 2.5 g/t for both the Merensky and UG2 Reefs were calculated to delineate the mining blocks from the resource model. The Mineral Resources and Mineral Reserves have payable credits in copper, nickel, ruthenium and iridium. 5. Cut off for the Merensky and UG2 reefs were estimated using average costs, smelter discounts, concentrator recoveries and mine call factor. 6. Mineral Resources were completed by Charles Muller of CJM Consulting, and the Mineral Reserves were prepared under the supervision of Gert Roets of DRA. 7. Mineral Resources were calculated using Kriging methods for geological domains created in Datamine from 6413 borehole assay results and geological information from underground workings. The Mineral Reserves were assessed using a Datamine block model and Datamine Mine Design software (Studio-5D Planner) for the mine design and Datamine EPS (Enhanced Production Scheduler) software for the Life of Mine schedule. Economic models completed by the Company were reviewed for cut-off assessment. 8. The calculation of Mineral Resources and Reserves has taken into account environmental, permitting, legal, title, taxation, socio-economic, marketing and political factors. The Mineral Resources and Mineral Reserves may be materially affected by metals prices, exchange rates, labour costs, electricity supply issues or many other factors detailed in the Company s Annual Information Form. 9. The following prices based on a 3 year trailing average in accordance with U.S. Securities and Exchange Commission ( SEC ) guidance was used for the assessment of Resources and Reserves; USD Pt 1,408/oz, Pd 744/oz, Au 1,374/oz, Rh 1,126/oz, Ru 73/oz, Ir 731/oz, Cu 3.18/lb, Ni 7.11/lb. 54

56 Maseve Mine - Reserves and Resources Estimated Resources 100% Project Basis July 15, 2015 Merensky - Mining Cut Reef Resource Cut-off Grade Metal Width Category 4E Tonnage Pt Pd Rh Au 4E 4E 4E cmg/t Mt g/t g/t g/t g/t g/t kg Moz cm Measured , Indicated , Total , Inferred UG2 - Mining Cut Resource Category Cut-off 4E Tonnage Reef Grade Metal Width Pt Pd Rh Au 4E 4E 4E cmg/t Mt g/t g/t g/t g/t g/t kg Moz cm Measured , Indicated , Total ,

57 Waterberg Project - Reserves Prill Splits - Mineral Reserve Estimate October 17, 2016 Prill Split Grade Zone Pt Pd Au Rh Cu Ni % % % % % % T-Zone F-Zone 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, 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 report on and 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. 56

58 Waterberg Project - Reserves Mineral Reserve Estimate October 17, 2016 Probable Mineral Reserve at 2.5 g/t 4E Cut-off Tonnage and Grades Zone Mt Cut-off grade (g/t) Pt (g/t) Pd (g/t) Au (g/t) Rh (g/t) 4E (g/t) Cu (%) Ni (%) T-Zone F-Zone Total Probable Mineral Reserve at 2.5 g/t Cut-off Contained Metal Zone Mt Pt (Moz) Pd (Moz) Au (Moz) Rh (Moz) 4E (Moz) 4E content (kg) Cu (Mlb) Ni (Mlb) T-Zone , F-Zone , Total ,

59 Waterberg Project - Resources Mineral Resource Estimate T-Zone and F-Zone October 17, 2016 Resource Category T-Zone 2.5 g/t Cut-off Cut-off Grade Metal Tonnage 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 , Inferred , Resource Category F-Zone 2.5 g/t Cut-off Cut-off Grade Metal Tonnage 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 , Inferred ,

60 Waterberg Project - Resources Total Mineral Resource Estimate October 17, 2016 Waterberg Total 2.5 g/t Cut-off Resource Category Cut-off Grade Metal Tonnage 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 , Inferred , E = 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 mineral resources stated above are shown on a 100% basis, that is, for the Waterberg Project as a whole entity. Conversion Factor used kg to oz = Numbers may not add due to rounding. Resources do not have demonstrated economic viability. A 5% and 7% geological loss has been applied to the Indicated and Inferred categories respectively. Effective Date Oct 17, 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; 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. Total aggregate mineral resources at Waterberg on a 100% project basis have increased slightly since those reported in April Inferred category resources have decreased to an estimated 10.8 million 4E ounces from million ounces 4E Inferred in April, 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 the QP 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 Inferred resources 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 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 was cut-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 of grade 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. 59

61 Platinum Group Metals Ltd. Suite Burrard Street Vancouver, BC V6C 2V5 Canada Platinum Group Metals RSA (Pty) Ltd. 1 st Floor, Platinum House 24 Sturdee Avenue Rosebank, Johannesburg 2196 SA