Platinum Group Metals Closes US$40 Million Bought Deal Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 1, 2016) - Platinum Group Metals Ltd. (TSX:PTM) (NYSE MKT:PLG) ("Platinum Group Metals" or the "Company") announces that further to its press release of October 24, 2016 it has closed its public offering of common shares (the "Offering"). Pursuant to the Offering, the Company has issued 22,230,000 common shares (the "Shares") at a price of US$1.80 per Share, for aggregate gross proceeds of US$40,014,000. A syndicate led by BMO Capital Markets, which also included RBC Capital Markets, acted as the underwriters and agreed to buy the Shares on a bought deal basis.

The net proceeds of the Offering will be used for (i) underground development and production ramp-up of the Project 1 Maseve Platinum Mine, (ii) working capital during start-up, (iii) repayment of all or a portion of the US$5 million second advance received by the Company under the amended and restated credit agreement dated October 11, 2016 between the Company and Sprott Resource Lending Partnership, among other lenders, and (iv) general corporate purposes.

The Offering was made pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (the "SEC") and a corresponding Canadian base shelf prospectus filed with the securities regulatory authority in each of the provinces of Canada, except Quebec. A prospectus supplement relating to the Offering was filed with the SEC and with the securities regulatory authority in each of the provinces of Canada, except Quebec.

A copy of the prospectus supplement and base shelf prospectus relating to the Offering in Canada may be obtained by contacting BMO Capital Markets, Brampton Distribution Centre C/O The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 or by telephone at [phone] Ext 4312 or by email at [e-mail]. A copy of the prospectus supplement and base shelf prospectus relating to the Offering in the United States may be obtained by contacting BMO Capital Markets Corp., Attn: Equity Syndicate Department, 3 Times Square, 25^th Floor, New York, NY 10036 (Attn: Equity Syndicate), or by telephone at [phone] or by email at [e-mail].