Hanwa Co. Ltd. Completes Acquisition of 9.755% Interest in Waterberg Palladium Project from JOGMEC Including Metal Marketing ... (2024)

Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSEAmerican) (“Platinum Group” “PTM” or the “Company”) reports thatthe previously announced transaction between the Japan, Oil, Gasand Metals National Corporation (“JOGMEC”) and Hanwa Co. Ltd.(“Hanwa”) has been completed.

In February 2018, JOGMEC held a public tender totransfer 9.755% of JOGMEC’s 21.95% interest in the WaterbergProject. Hanwa successfully won the bid, whereupon Hanwa andJOGMEC started the process required to complete and finalize thetransfer. On October 24, 2018 Hanwa and JOGMEC officially enteredinto a transfer agreement. Upon the recent grant of approval fromthe government of the Republic of South Africa, the entire transferprocedure has been completed. JOGMEC will continue to be an activejoint venture partner and will also continue the promotion ofJapanese interests globally through mineral exploration andproviding vital information on mineral resources.

Under the terms of the transaction Hanwa hasalso acquired the marketing right to solely purchase all the metalsproduced from the Waterberg Project at market prices. Thetransaction secures a key future source of platinum group metals(“PGM”) and nickel used for automobile catalytic converters,fuel cells and secondary batteries for industries in Japan.

The current measured and indicated mineralresource of the Waterberg deposit stands at 26.34 million ounces 4E(242Mt with an average grade of 3.38 g/t 4E -platinum, palladium,rhodium and gold)*. The deposit is amenable to fully mechanizedmining with production costs estimated to be the lowest of PGMmines in South Africa. The deposit is also advantageous because ofthe highest palladium content (63.04%) amongst South African PGMmines. The mineral reserves and resources will be updated as partof the definitive feasibility study in process. Palladiumprices have outperformed recently due to strong demand fromautocatalyst manufacturers and a limited supply response capabilityfrom traditional producers in Russia and South Africa. Industryanalysts expect deficits to continue.

Following the Hanwa transfer Platinum Groupcontinues to hold a 50.02% effective interest in Waterberg JV Co.,JOGMEC now holds a 12.195% interest, Impala Platinum Holdings Ltd.(“Implats”) holds a 15% interest, Hanwa holds a 9.755% interest andempowerment partner Mnombo Wethu Consultants (Pty) Ltd. holds theeffective balance of the joint venture. JSE listed, broadbased empowerment group, Hosken Consolidated Investments Limited(“HCI”) has recently acquired a 19.90% ownership interest inPlatinum Group Metals Ltd.

Implats made a strategic investment of US $30.0million in November 2017 to purchase their 15% stake in theWaterberg Project. Implats acquired an option to increase its staketo 50.01% by additional share purchases from JOGMEC for an amountof US $34.8 million and a commitment to expenditures of US $130million for development work on the Waterberg Project and toarrange project financing. Implats also acquired a right offirst refusal to smelt and refine Waterberg Project concentrate.The Implats option is exercisable within 90 days of completion ofthe Waterberg definitive feasibility study which is currently inthe final stages of completion.

*Measured and Indicated Mineral Resourcetotaling 26.34 million 4E ounces is comprised of 63.04% palladium,29.16% platinum, 6.37% gold and 1.43% rhodium (242.5 Million Tonnesat 3.38 g/t 4E) at a 2.5 g/t 4E cut-off grade on a 100% projectbasis.

About Hanwa

Hanwa is a Japanese trading company whichsupplies a broad spectrum of products, including steel, non-ferrousmetals, metals and alloys, food, petroleum, chemicals, machinery,lumber and many other items, to an equally diverse range ofcustomers. The company has solid positions in all of thesebusinesses. As a trading company that performs many importantroles, Hanwa will continue to enter more business fields inresponse to changes in the operating environment in order to meetthe needs of customers.

About Implats

Impala Platinum Holdings Limited is one of theworld’s foremost fully integrated producers of platinum andassociated PGEs. The group produces approximately a quarter of theworld's supply of primary platinum. Implats’ operations are locatedon the Bushveld Complex in South Africa and the Great Dyke inZimbabwe, the two most significant PGE-bearing ore bodies in theworld. In Southern Africa Implats is structured around five mainoperations namely Impala, Zimplats, Marula, Mimosa and Two Riverswith headquarters based in Johannesburg, South Africa.

About JOGMEC

Japan Oil, Gas and Metals National Corporation(JOGMEC), an incorporated administrative agency established by theJapanese government, plays a key role in ensuring a constant andstable supply of oil, natural gas, coal, geothermal energy andmineral resources to support industries and citizens in Japanthrough a wide range of activities relating these resources.

About Platinum Group MetalsLtd.

Platinum Group is focused on, and is theoperator of, the Waterberg Project, a bulk mineable undergroundpalladium deposit in northern South Africa. Waterberg wasdiscovered by the Company. Waterberg has potential to be alow cost dominantly palladium mine and Implats, a smelter andrefiner of platinum group metals, recently made a strategicinvestment in the Waterberg Project.

On behalf of the Board of
PlatinumGroup Metals Ltd.

“R. Michael Jones”
President andCEO

For further information contact:
R. Michael Jones, President
or Kris Begic, VP, Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866)899-5450
www.platinumgroupmetals.net

Disclosure

The Toronto Stock Exchange and the NYSEAmerican have not reviewed and do not accept responsibility for theaccuracy or adequacy of this news release, which has been preparedby management.

This press release contains forward-lookinginformation within the meaning of Canadian securities laws andforward-looking statements within the meaning of U.S. securitieslaws (collectively “forward-looking statements”), includingstatements regarding the projections in the Waterbergpre-feasibility study; the completion and contents of theWaterberg definitive feasibility study; thepotential exercise of Implats’ option; and the potentialdevelopment and cost structure of, and production from, theWaterberg Project. Forward-looking statements are typicallyidentified by words such as: believe, expect, anticipate, intend,estimate, plans, postulate and similar expressions, or are those,which, by their nature, refer to future events. All statements thatare not statements of historical fact are forward-lookingstatements. Statements of mineral resources and mineral reservesalso constitute forward-looking statements to the extent theyrepresent estimates of mineralization that will be encountered on aproperty and/or estimates regarding future costs, revenues andother matters. Although the Company believes anyforward-looking statements in this press release are reasonable, itcan give no assurance that the expectations and assumptions in suchstatements will prove to be correct. The Company cautions investorsthat any forward-looking statements by the Company are notguarantees of future results or performance, and that actualresults may differ materially from those in forward-lookingstatements as a result of various factors, and the risk factorsdescribed in the Company’s Form 20-F annual report, annualinformation form and other filings with the Securities and ExchangeCommission (“SEC”) and Canadian securities regulators, which may beviewed at www.sec.gov and www.sedar.com, respectively.

Estimates of mineralization and othertechnical information included herein have been prepared inaccordance with National Instrument 43-101 – Standards ofDisclosure for Mineral Projects (“NI 43-101”). The definitions ofproven and probable reserves used in NI 43-101 differ from thedefinitions in SEC Industry Guide 7. Under SEC Industry Guide7 standards, a “final” or “bankable” feasibility study is requiredto report reserves, the three-year historical average price is usedin any reserve or cash flow analysis to designate reserves and theprimary environmental analysis or report must be filed with theappropriate governmental authority. As a result, the reservesreported by the Company in accordance with NI 43-101 may notqualify as “reserves” under SEC Industry Guide 7. In addition, theterms “mineral resource” and “measured mineral resource” aredefined in and required to be disclosed by NI 43-101; however,these terms are not defined terms under SEC Industry Guide 7 andhistorically have not been permitted to be used in reports andregistration statements filed with the SEC pursuant to SEC IndustryGuide 7. Mineral resources that are not mineral reserves do nothave demonstrated economic viability. Investors are cautioned notto assume that any part or all of the mineral deposits in thesecategories will ever be converted into reserves. Accordingly,descriptions of the Company’s mineral deposits in this pressrelease may not be comparable to similar information made public byU.S. companies subject to the reporting and disclosure requirementsof SEC Industry Guide 7.