Platinum Group Metals Ltd.: WBJV Project 1 Senior Loan Facility Credit Approved

Thu Dec 6, 2012 8:37am EST

* Reuters is not responsible for the content in this press release.

Platinum Group Metals Ltd., (TSX:PTM)(NYSE Amex:PLG)(NYSE MKT:PLG) (the
"Company" or "Platinum Group") reports that a syndicate of lead arrangers
has now obtained credit committee approval for a US $260 million senior
loan facility for the construction of the WBJV Project 1 Platinum Mine.
The credit approval is not subject to further syndication prior to
closing. Closing and draw down of the loan facility will now be subject
to the negotiation and execution of final documentation and satisfaction
of conditions precedent.

    The syndicate of lead arrangers consists of Barclays Bank plc, together
with its affiliate Absa Capital, Caterpillar Financial SARL, Societe
Generale and The Standard Bank of South Africa Limited. This syndicate of
banks (collectively, the "Lending Group") has a global presence, direct
platinum industry experience and includes two of South Africa's major

    While working with the Lending Group to finalize the loan facility, the
Company has been executing a US $100 million Phase 1 development program
to complete surface and infrastructure requirements and begin
construction on twin declines into the ore body. A Mining Right for the
WBJV Project 1 was granted in April 2012 and underground development and
construction has been in progress since 2011. Phase 1 is now
approximately 80% complete.

    The key terms of the credit approved loan are:

--  A US $260 million senior loan with a term of eight years. 
--  Interest rates payable on the balance of the loan withdrawn at a rate of
    LIBOR plus 5.0% pre-completion, LIBOR plus 4.75% for two years post-
    completion and LIBOR plus 5.25% from two years post-completion until
--  An ability to pay the loan down early in tranches. 
--  An agreed hedging strategy focused on byproduct metals palladium, gold
    and base metals.

    Company President and CEO, R. Michael Jones, commented, "The receipt of
credit approval for a US$ 260 million loan is a clear indication of the
quality of the WBJV Project 1 asset. The international bank approval is
an important indicator for Platinum Group Metals Ltd. and South Africa
that the platinum industry is open for business. The shallow, good grade
deposit at Project 1 is targeted for first production in 2014 and
indications are quite positive for the platinum market at that time."

    Company CFO, Frank Hallam, stated, "After more than a year of work to
obtain this credit approval, we are all very excited to move forward.
It's very satisfying to see this project become a reality." 

    Conditions precedent to draw down required by the lending group will
include the Company and 26% project holder Wesizwe Platinum Limited
(JSE:WEZ) ("Wesizwe") providing a tranche of equity capital, a cost
overrun facility and a working capital provision. Platinum Group owns 74%
of the WBJV Project 1. Wesizwe is 45% owned by Jinchuan Group of China
and the China Africa Development Fund.

    The Company is also currently drilling with ten rigs at the Waterberg
discovery on the North Limb of the Bushveld Complex. 

    About Platinum Group Metals Ltd.

    Platinum Group has an experienced mine building and operating team based
in Vancouver, Canada and Johannesburg, South Africa. The Platinum Group
management team has a track record of discovery of precious metals mines
over the past 20 years. The Company also has an impressive near surface
discovery at Waterberg in Joint Venture with Japan Oil, Gas and Metals
Corporation, the Japanese state owned Company. 

    Platinum Group is listed as PLG on the NYSE MKT and PTM on the TSX in

    On behalf of the Board of Platinum Group Metals Ltd. 

    R. Michael Jones, President

    This press release contains forward-looking statements within the meaning
of U.S. securities laws and forward-looking information within the
meaning of Canadian securities laws ("forward-looking statements").
Forward-looking statements are typically identified by words such as:
targeted, believe, expect, anticipate, intend, estimate, postulate and
similar expressions, or are those, which, by their nature, refer to
future events. All statements that are not statements of historical fact
are forward-looking statements. Forward-looking statements in this press
release include, without limitation, statements regarding the targeted
timing for first production at Project 1, the state of the platinum
market in 2014, the completion of required financing and the commencement
of Phase 2 construction at Project 1. Although the Company believes the
forward-looking statements in this press release are reasonable, it can
give no assurance that the expectations and assumptions in such
statements will prove to be correct. The Company cautions investors that
any forward-looking statements by the Company are not guarantees of
future results or performance, and that actual results may differ
materially from those in forward looking statements as a result of
various factors, including, but not limited to, variations in market
conditions, the nature, quality and quantity of any mineral deposits that
may be located, the Company's ability to obtain any necessary permits,
consents or authorizations required for its activities, the Company's
ability to successfully obtain equity financing and negotiate a cost
overrun facility, the Company's ability to obtain the requisite personnel
to enable the construction work to proceed, or the Company's ability to
be fully able to implement its business strategies and other risk factors
described in the Company's Form 40-F annual report, annual information
form and other filings with the SEC and Canadian securities regulators,
which may be viewed at and, respectively.

    The Toronto Stock Exchange and the NYSE MKT have not reviewed and do not
accept responsibility for the accuracy or adequacy of this news release,
which has been prepared by management.

Platinum Group Metals Ltd.
R. Michael Jones
(604) 899-5450 or Toll Free: (866) 899-5450

Platinum Group Metals Ltd.
Kris Begic
VP, Corporate Development
(604) 899-5450 or Toll Free: (866) 899-5450
(604) 484-4710 (FAX)

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