Name of the Project
Waterberg palladium project.

Location
The Waterberg project is located 85 km north of Mokopane in Limpopo, South Africa.

Project Owner/s
Platinum Group Metals (PTM) is the operator of the Waterberg project, with joint venture partners being Japanese Oil, Gas and Metals National Corporation (Jogmec), Hanwa, Impala Platinum Holdings (Implats) and Mnombo Wethu Consultants.

Project Description
PTM has announced positive results from an independent definitive feasibility study (DFS) on the Waterberg project. The DFS provides a clear outline of the palladium deposit and has concluded that it can be one of the largest, fully mechanised, low-cost platinum group metals mines in the world.

The project has proven and probable reserves of 187.51-million tonnes at 3.24 g/t platinum, palladium, rhodium and gold (4E) for 19.48-million 4E ounces (using a 2.5 g/t 4E cutoff).

The life-of-mine on current mineral reserves extends to 2066 and the deposit remains open at depth and on strike.

Updated measured and indicated mineral resources are estimated 242-million tonnes grading 3.38 g/t 4E ounces, and the deposit remains open on strike to the north and below an arbitrary depth cutoff of 1 250 m.

The DFS mine plan envisages production at 4.8-million tonnes of ore a year and 420 000 4E ounces a year in concentrate. The mine will initially access the orebody using two sets of twin decline tunnels, with fully mechanised longhole stoping methods and paste backfill used for mining. Paste backfill allows for a high mining extraction ratio, as mining can be completed next to backfilled stopes without leaving internal pillars.

Maintaining safety and reliability are key mine design criteria. As a result of the scale of the orebody, bulk mining on 20 m to 40 m sublevels, with large underground equipment and conveyors for ore and waste transport, will provide high efficiency.

The Waterberg project is planned to produce a sulphide concentrate at a grade that is attractive to the current operating smelters in South Africa, with no significant penalty elements. Implats holds a first right of refusal for smelter offtake, while Hanwa, of Japan, holds the rights to market the final refined metal at market prices.

Potential Job Creation
The project will create about 1 100 new highly skilled jobs.

A significant investment in local training and business opportunities is part of the benefits to stakeholders, including local communities, shareholders, and provincial and national governments.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $982-million and an internal rate of return of 20.7%

Capital Expenditure
Capital expenditure is estimated at $874-million, including $87-million in contingencies. Peak project funding is estimated at $617-million.

Planned Start/End Date
The DFS project timeline includes a formal construction decision to be taken following the granting of the mining right, expected in the first quarter of 2020, with first production expected 3.5 years later.

The planned decline provides for rapid and low-cost access to the shallow orebody. Under the DFS mine plan, first production is estimated in late 2023, with ramp-up to steady state by 2027.

Latest Developments
The shareholders of Waterberg JV Resources have executed a formal amended purchase and development option agreement with Implats.

In consideration for the amendment, first announced on February 27, Implats is funding 100% of a new implementation budget and work programme, effective February 1.

The work programme, as approved by the Waterberg JV Company, is aimed at increasing confidence in specific areas of the Waterberg definitive feasibility study, while awaiting the expected grant of a mining right and environmental authorisation.

The work programme is estimated at about R55-million.

The work programme is being undertaken remotely and in compliance with current South African health-related stay-at-home restrictions brought on by the Covid-19 pandemic.

The termination date of Implats' purchase and development option has been amended from the original date of April 17, to 90 calendar days following receipt of an executed mining right for Waterberg.

All other terms of the purchase and development option remain unchanged.

Amounts spent by Implats for the work programme will be offset against Implats' future development funding commitment should it elect to exercise the purchase and development option.

The previous guidance for the grant of the mining right in the second quarter of this year may be delayed by the current South African stay-at-home restrictions.

PTM will continue to manage Waterberg, as directed by the technical committee of Waterberg JV Company.

A majority of the company's South African personnel are engaged to complete the work programme, which is being directed by Implats' technical personnel.

Key Contracts and Suppliers
Stantec Consulting International and DRA Projects SA (DFS).

Contact Details for Project Information
PTM, tel +27 11782 2186 or email info@platinumgroupmetals.net.