Platinum Group Metals to Use Equity Financing Proceeds to Increase Interests in WBJV Project

Platinum Group Metals Ltd. (TSX:PTM)(NYSE Amex:PLG) has announced that it has closed its previously announced bought deal equity financing of 61,000,000 common shares at a price of Cdn$2.05 per share for aggregate gross proceeds to the Company of Cdn$125,050,000.

BMO Capital Markets, GMP Securities L.P. and RBC Capital Markets were joint bookrunners in a syndicate that included Raymond James Ltd. and Stifel Nicolaus Canada Inc. (collectively, the "Underwriters").

R. Michael Jones, President of Platinum Group Metals Ltd. said, "We are very pleased to be supported by a strong global syndicate of banks and our shareholders in order to move construction of a new platinum mine forward in the area at the centre of the world's platinum production and several other new mine developments."

The Company intends to use approximately Cdn$60.1 million of the net proceeds of the Offering as a payment to a subsidiary of Platinum Group in connection with the shareholders agreement with Wesizwe Platinum to increase the Company's interest in Project 1 and Project 3 located in the Western Bushveld Complex of South Africa (the "WBJV Project") from 54.75% to 74%. Of the remaining net proceeds of the Offering, approximately Cdn$47.77 million will be applied against the Company's 74% share of an initial Cdn$64.56 million development programme for Project 1 and approximately Cdn$10 million will be reserved for general working capital purposes.

The common shares were offered by way of a short form prospectus filed in all of the Provinces of Canada, other than Québec, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"). The Company has granted the Underwriters an option, exercisable for 30 days, to purchase up to an additional 15% of the common shares at the issue price to cover overallotments and for market stabilization purposes.

Source: Platinum Group Metals Ltd.

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