Platinum Group Metals Ltd. Announces Increase to Sprott Credit Facility

VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA--(Marketwired - Oct. 12, 2016) - Platinum Group Metals Ltd. (TSX:PTM)(NYSE MKT:PLG) ("Platinum Group" or the "Company") announces that the Sprott Resource Lending Partnership lenders ("Sprott") have provided a US $5.0 million second advance to the Company. The original US $40.0 million credit agreement entered into by the Company and Sprott, pursuant to which funds were advanced to the Company on November 20, 2015, has been amended and restated to reflect an increase to US $45.0 million. A summary of material terms related to the second advance under the amended and restated credit facility are:

• Interest will accrue and become payable to Sprott monthly on the second advance at a rate of LIBOR plus 8.5%, the same rate as for the original advance;
• Other terms, conditions and covenants related to the second advance are substantially the same as for the original advance, as amended;
• For a summary of the material terms of the original advance from Sprott to the Company, as amended, please see the Company's news release dated September 19, 2016;
• The second advance may be repaid in six equal, monthly instalments commencing on July 31, 2017, unless Sprott elects for earlier repayment from the proceeds of an equity or debt financing prior to December 31, 2017; and
• The Company must obtain certain regulatory approvals as a post-closing requirement of the second advance. The Company must complete equity financings raising gross proceeds of US $20.0 million by December 31, 2016.

In consideration of the second advance, as a fee, the Company has agreed to issue 113,963 common shares of the Company as directed by Sprott pursuant to the amended Sprott facility. This amount is based on the value of five percent of the second advance, being US $250,000 converted to $332,600 Canadian dollars using the Bank of Canada noon spot rate on October 7, 2016. The shares were then priced at the ten-day volume weighted average price on the Toronto Stock Exchange (the "TSX") of $3.2428 per share, less a ten percent discount. The shares will be subject to a four month and one day hold period from the date of issuance under applicable securities laws in Canada and where applicable will also be subject to resale restrictions under the securities laws of the United States. The issuance of the above noted shares is subject to the approval of the TSX and the NYSE MKT LLC ("NYSE MKT").