Platinum Group's Waterberg Permit Expansion Granted; Drills Moved to Shallow Deposit Edge

Tue Jan 22, 2013 4:00pm EST

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

Platinum Group Metals Ltd. (TSX:PTM)(NYSE MKT:PLG) ("Platinum Group" or
the "Company") reports that the South African Department of Mineral
Resources has granted a 1,600 hectare (16 square kilometer) expansion of
the prospecting permit covering the Waterberg discovery on the North Limb
of the Bushveld Complex allowing anticipated drilling on the up dip
portion of the Waterberg deposit to commence.

    Newly discovered in 2012, the Waterberg deposit is believed to continue
up dip eastward towards surface, based on structural modeling, geophysics
and satellite imagery. Previous drilling at Waterberg, on the boundary
with the new permit, intersected the "T" layers at approximately 130
meters from surface and the "F" layers at approximately 300 meters deep.
Ten drill rigs are now being moved eastward onto the new permit. Given
the expected shallow nature of the deposit heading up dip, the Company
expects that multiple boreholes will be completed quickly.

    The Waterberg deposit has an initial resource of 6.6 million ounces 4E,
(platinum, palladium, rhodium and gold, see details below). A resource
update is in progress and is expected in Q1 of calendar 2013.

    Waterberg was named "Global Exploration Discovery of the Year" at the
prestigious Mining Journal Outstanding Achievement Awards in December
2012, part of the Mines and Money conference in London.

    R. Michael Jones, President and CEO of Platinum Group Metals, said, "The
expansion of the Waterberg property by grant of this new permit is very
timely. Our equity financing for $180 million, which closed on January 4,
2013, included plans for a $10.0 million exploration program for the
Waterberg Joint Venture. We are now able to focus a considerable drilling
effort with 10 rigs. If the efforts on the new permit are successful on
extending the deposit near to surface, additional drill rigs will be
added. We are very excited about the potential at Waterberg."

    The Waterberg deposit is in a newly discovered part of the Bushveld
Complex. The deposit is unusual in that it has thick layers coming near
to surface, potentially amenable to mechanized mining. Recent
announcements of mine closures based on declining Merensky layer
availability, labour cost increases and depths are juxtaposed against the
characteristics of the new open Waterberg discovery.

    Platinum Group Metals has a 49.9% effective interest in the Waterberg
Joint Venture and Japan Oil, Gas and Metals National Corporation
("JOGMEC") has a 37% interest with the effective balance held by a BEE
company. Platinum Group holds an effective 87% interest in further
pending Prospecting Permit Applications over ground immediately to the
north of the joint venture prospecting permits. Recent drill results
include an intercept on the "F" layer of 16.5 meters grading 4.4 g/t 3E
(1.32 g/t Pt, 2.87 g/t Pd and 0.21 g/t Au) at the northern joint venture
boundary. The on strike extension prospecting permit applications are
expected to be granted shortly. Results from the pending resource
calculation update on the joint venture ground, combined with the current
drilling, will allow for the planning of an additional exploration
program northward along strike on the 87% owned permits.

Initial Resource Detail Waterberg Project (September 2012)

        Tonnage   ness    Pt    Pd    Au 2PGE+Au Pt:Pd:Au 2PGE+Au   Cu   Ni
Layer       (Mt)    (m) (g/t) (g/t) (g/t)   (g/t)      (%)   (Koz)  (%)  (%)
T1        10.49   2.85  0.77  1.27  0.51    2.55 30:50:20     863 0.17 0.10
T2        16.25   3.46  1.10  1.82  0.92    3.84 29:47:24   2 001 0.18 0.09
T-layer   26.74   3.19                      3.33            2 864          
FH        18.10   4.63  0.80  1.48  0.09    2.37  34:62:4   1 379 0.03 0.12
FP        23.20   5.91  1.01  2.00  0.13    3.14  32:64:4   2 345 0.04 0.11
F-layer   41.30   5.27                      2.80            3 721          
Project   68.04                                             6 586          

Ken Lomberg, QP - see Report on dated October 10, 2012 for

    About Platinum Group Metals Ltd.

    Platinum Group is based in Johannesburg, South Africa and Vancouver,
Canada with an experienced management team in precious metals discovery,
mine development and operations. The Company's main asset is a 74%
interest in Project 1 near Rustenburg, South Africa, where a Phase 1
construction budget of US $100 million is nearing completion and Phase 2
full construction is commencing. WBJV Project 1 has an estimated steady
state production of 275,000 ounces per year of platinum group metals.
Platinum Group also has active exploration programs in Canada and South

    Qualified Person

    R. Michael Jones, P.Eng., the Company's President, Chief Executive
Officer and a significant shareholder of the Company, is a
non-independent qualified person as defined in National Instrument 43-101
Standards of Disclosure for Mineral Projects and is responsible for
preparing the technical information contained in this news release. He
has satisfactorily verified the data supplied from the project team of
qualified technical personnel, by property visits and interaction with
the Independent Qualified Person for the resources at Waterberg. Quality
assurance and control information is as reported previously.

    On behalf of the Board of Platinum Group Metals Ltd.

    R. Michael Jones, President and CEO

    This press release contains forward-looking information within the
meaning of Canadian securities laws and forward-looking statements within
the meaning of U.S. securities laws ("forward-looking statements").
Forward-looking statements are typically identified 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 that are not statements of historical fact
are forward-looking statements. Forward-looking statements in this press
release include, without limitation, statements regarding the Company's
plans to commence full scale development at Project 1, estimates of
steady state production at Project 1 and possible increased drilling,
completion of boreholes and further exploration on the Company's
properties. 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 locate;, the Company's ability to obtain any
necessary permits, consents or authorizations required for its
activities; the Company's ability to successfully complete hedging
establishment and off-take negotiations; the Company's ability to produce
minerals from its properties successfully or profitably, to continue its
projected growth, or 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 LLC 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: 1-866-899-5450

Platinum Group Metals Ltd.
Kris Begic
VP, Corporate Development
604-899-5450 or Toll Free: 1-866-899-5450
604-484-4710 (FAX)

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