Company Information for Platinum Group Metals Ltd

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Company Statement

Platinum Group Metals Ltd. ("Platinum Group") is focused on moving our platinum deposit in South Africa toward mine development. After months of intense study and engineering, we emerged in early 2007 with a near-surface, large-scale platinum mine plan. This initial mine plan, outlined in the January 2007 Pre-feasibility Study, is being refined and optimized in the feasibility study expected in calender Q2 2008.

We are the operator of the Joint Venture, and our partners, Anglo Platinum and Africa Wide, are funding their shares of the development and engineering for the mine plan on Project 1.  A pre-feasibility study released in January 2007 indicates robust project economics.

There is significant room to grow for Platinum Group, just within the Western Bushveld Joint Venture. We had a large exploration budget for 2007 - mostly for core drilling on the new Project 2 and Project 3 areas of the Western Bushveld Joint Venture. Results of this work were announced in April of 2008 with 5.034 million ounces in the measured and indicated category, and 3.936 million ounces in the inferred category reported from the Project 2 area and 1.900 million ounces platinum, palladium, rhodium and gold in the inferred category reported from Project 3.

Platinum Group also continues to hold other South African and Canadian platinum and palladium properties as part of its basket of potential projects.
 

Current Operations

SOUTH AFRICA

Western Bushveld Joint Venture 
The Western Bushveld Joint Venture is a unique platinum project and likely to be one of the last large-scale near surface new developments on the desirable and high-grade platinum reefs of the Western Limb of the Bushveld Complex. The feasibility study for Project 1 within the Western Bushveld Joint Venture is expected to be completed in Q2 calender 2008.

Located among key high-grade platinum mines, including Amandelbult, Union, BRPM and Impala (see map), the Western Bushveld Joint Venture deposits exhibit the high grades and high platinum contents that mark mines on the western limb.

The Western Bushveld Complex has been mined for 80 years and has many profitable mines that produce 70% of the world's platinum production. In contrast, the northern and eastern limbs support less of a proven track record of platinum mining.

The property has three distinct Projects: 1, 2 and 3, with the Joint Venture team tightly focused on the mine planning and Bankable Feasibility Study for Project 1.

Project 1
Over the past two years, the Joint Venture team, with PTM as the operator, has drilled over 100,000 metres and over 180 drill holes on Project 1, allowing us certainty with our deposit calculations and mine planning.

Anglo Platinum and Wesizwe Platinum are required to fully fund their shares of the development and engineering for the mine plan on Project 1. Please refer to the Pre-Feasibility Study dated January 10, 2007 on SEDAR for all of the details.

The Pre-Feasibility Study released in January 2007 for Project 1 of the WBJV provided two options for mine construction - one option with a twin vertical shaft and a second option with both vertical and decline shafts.  These provide for a 17.0% internal rate of return with long term metals prices and exchange rates.  The Pre-Feasibility Study showed a 29% IRR with recent spot prices and exchange rates.

The peak funding cost to establish the mine is estimated at US$286 million (2.143 billion Rand) for a vertical shaft only or US$272 million (2.040 billion Rand) for the decline and vertical shaft combination. Total life of mine capital costs for the vertical shaft option is US$328 million (2.457 billion Rand) and for the decline / vertical shaft option is US$355 million (2.663 billion Rand).

Pre-tax Net Present Value outlined in the pre-feasibility study, at a 5% real discount rate and with long-term metals price assumptions, is US$ 339 million (2.545 billion Rand) for the vertical shaft option and US$ 325 million (2.441 billion Rand) for the decline and vertical shaft combination.

The average life-of-mine cash operating costs to produce and deliver the concentrate is estimated at US$47 /tonne (352 R/tonne) and US$328 /4E oz (78,972 R/ 4E kg).

Both the vertical shaft system and the early access decline and vertical shaft system combination offer good returns and will be studied further during the bankable study.  In addition, we expect to submit mining authorization applications and associated permit applications in 2008.

Projects 2 and 3
Project 2 (Platinum Group Metals 18.5% interest, Wesizwe Platinum Operator) and Project 3 (Platinum Group Metals 37% interest, Platinum Group Metals Ltd operator) are the focus of separate multi-million dollar exploration budgets which began in the fall of 2006. Projects 2 and 3 are located adjacent and along strike from Project 1.

Initial resources totaling 5.034 million ounces in the measured and indicated category, and 3.936 million ounces in the inferred category have been reported from the Project 2 area (see News Release April 22, 2008). These resources  form part of the feasibility study released by Wesizwe Platinum Ltd. on March 31, 2008 (Frichgewaagd-Ledig Project).

A first resource estimate on the Project 3 area totaling 1.9 million ounces platinum, palladium, rhodium and gold in the inferred category was announced April 25, 2008 (see News Release April 25, 2008). The good grades and strong platinum ratios on Project 3 are similar to the ratios of the Project 1 and Project 2 resources, located on the same layers or “reefs”. The Project 3 resources are at a depth of approximately 450 to 500 meters. Drilling is continuing in the Project 3 area.

War Springs
Our Company acquired the War Springs property due to its favorable position along the Northern Limb of the Bushveld Complex. In 2002, the owners recognized they would need to consolidate their holdings and activate the mineral rights or lose them to the state by 2005 under the New Act. The War Springs property has seen virtually no historical mineral exploration as a result of its formerly highly fragmented mineral rights ownership. The property was consolidated and the mineral rights have transitioned to the new mineral law.

Platinum Group holds a 70% interest in this property under new order prospecting rights.

Past Work Program
Our Company optioned the property and began to explore. The systematic program included mapping, geochemistry and geophysics. During our drilling program, we were surprised to discover a banded or layered nature to the property. Typically, the Northern Limb displays lenses of mineralization---not the well-layered formations common of the Eastern and Western limbs of the Bushveld Complex. The PPRUST platinum mine of Anglo Platinum is located 30 kilometres to the north of War Springs

We updated our independent resource calculation on March 17, 2008 to an inferred resource of 1,676,000 ounces of platinum, palladium, and gold (47M tonnes grading 1.11 g/t 3E, 0.13% nickel, 0.10% copper with strong evidence of resource continuity (Charles Muller, Independent Qualified Person, Global Geo Services).

This resource is found in two distinct reef layers 5-10 metres thick named the "B" and "C" reefs, starting at surface and dipping in parallel sheets at a 65 degree angle to a depth of 400 metres and remaining open.

The combined girth and dip may make this property potentially amenable to a bulk, low-cost underground mining approach.

Planned Work and Potential
The property may have additional potential at depth. Drilling along strike near the PPRUST Mine in the North limb of the Bushveld Complex has shown increased grades and thickness at depth. This deeper drilling is being considered.

Tweespalk 
The Tweespalk property is located 30 kilometres north of the PPRust mine in the Northern Limb of the Bushveld complex. Platinum Group has completed a total of 7 drill holes. Initial exploration results at Tweespalk were encouraging with a reef intersection of four metres grading 4.4 g/T, 3 PGEs (platinum, palladium, and gold over 4.04 meters

Platinum Group holds a 70% option interest in the Tweespalk property while BEE partner Africa Wide Mining owns a 30% participating interest. The best intercept at Tweespalk is also the deepest and drilling below the PPrust Mine area has also shown good grades and thickness at depth. For this reason further drilling is being considered.


CANADA

Agnew Lake
The large Agnew Lake Intrusion is located approximately 70 kilometres west of nickel-copper-PGE mining center of Sudbury, Ontario, Canada and is similar to the River Valley Intrusion located approximately the same distance east of Sudbury.

The rare layered and PGM concentrating nature of these two bodies has attracted Anglo Platinum from South Africa. To date Anglo Platinum has funded in excess of $2,500,000 in exploration on the Angew Lake Property testing several zones of PGM mineralization located along the basal contact of the Agnew Lake Intrusion.

Platinum Group controls a 72.83% interest in the Agnew Lake Property and Anglo Platinum, through Canadian subsidiary Kaymin Ltd., controls a further 26.17% interest.

Surface results included numerous areas of elevated platinum and palladium and drilling to date has not been encouraging enough to warrant further work. Platinum Group and Kaymin, a subsidiary of Anglo Platinum, continue to hold the property.   No further work is recommended at this time.

Lac Des Iles
Platinum Group holds large minerals rights areas in the Thunder Bay, Ontario PGM exploration camp.  The land position was assembled through the amalgamation in 2002 of PTM and New Millennium Metals Corporation.

The Thunder Bay area hosts Canada's only primary producing PGM mine, the Lac des Iles Mine, owned by North American Palladium. The LDI Mine is a large, low-grade open-pit mine hosted in an unusual intrusive complex. Deeper workings at the mine have found higher grades of PGM material. 

In the summer of 2001 Platinum Group made the important discovery of the Stinger Zone in trenching. The discovery was confirmed by drilling in 2002. This discovery was important because of its high grades, including 7g/t PGMs, and because of its style of occurrence being associated with a specific layer. This layered type of PGM mineralization has the potential to extend along the known 17 kilometre strike length of the Towle Lake Intrusion. Stinger is located approximately 15 kilometers south of the Lac des Iles Mine and logging roads link the area. The mine's proximity creates the possibility of shipping Stinger material to the mill if the grade is sufficient to lead to an agreement between the owners.

Work completed has allowed Platinum Group to vest a 50% interest on the property covering the Stinger Zone and subsequently in late 2006, Platinum Group bought out other partners and now holds the property 100%.

The Powder Hill, Stocker and Vande PGM mineralized zones have all demonstrated potential.

Based on the exploration results thus far and the number, size and widespread distribution of PGM occurrences in the district, Platinum Group considers the potential in the area excellent.  Platinum Group Metals plans to continue to hold these positions for further exploration.

Significant exploration work is currently deferred in favour of investment in South Africa.

Geographical Spread

South Africa and Canada

Board of Directors and Key Management

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