Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM-TSX; PLG-AMEX) announces results from the Independent Update to the Feasibility Study for the Project 1 Platinum mine of the Western Bushveld Joint Venture (“WBJV”) in South Africa. Platinum Group Metals Ltd holds a 74% interest in the WBJV and Wesizwe Platinum (WEZ-JSE) holds a 26% interest.

Summary

• Measured and Indicated Mineral Resources increased by 0.924Moz due to additional drilling in Project 1 & 1A areas on Merensky and UG2 Platinum bearing layers or reefs.
• Reserves increased 7.35 % as a result of optimized extraction on the UG2 Reef.
• Ounces produced in concentrate at steady state increased to 275,000 ozs per year 4E (platinum, palladium, rhodium and gold) from 250,000 ozs per year as a result of improvements to the mine design and higher plant throughput.
• Revised mine plan calls for production of ore from underground in 2011 and first concentrate sales first quarter of 2013.
• Peak funding for 100% of the Project reduced by US$ 64m to US$ 443m.
• Life of Mine Capital cost estimate, over 22 years reduced by US$ 89m to US$ 595m as a result of change in design to use mostly grid power rather than self generated power and improvements in mine design compared to July 2008 original feasibility.
• At a platinum price of US$ 1,343 per oz (3 year trailing average, 8 South African Rand to US$, no escalation), the Project IRR is 24% pre tax and the Project NPV of Platinum Group’s 74% share pre tax is US$ 726 m (5% discount rate NPV5) and US$ 352 m (10% discount rate NPV10) Post tax, including secondary tax, Platinum Group’s share is NPV5 US$ 431m and NPV10 US$ 188m.
• The Minister of Mineral Resources has approved the majority of the title transfers of all of the prospecting permits related to the transaction whereby Platinum Group Metals will hold a 74% right of Projects 1 and 3 of the WBJV (26% Wesizwe).