Platinum Group Metals Reports First Quarter 2017 Results and Operational Update - Seite 2

R. Michael Jones, CEO of Platinum Group Metals said "We are pleased that after working with us on the mining of some of our smaller blocks, Redpath has won the tender to mine Block 11 and will become an important partner in the Maseve Mine ramp up. Redpath will continue with mining in Blocks 9 and 12 and will takeover ore transport for these blocks from the previous development contractor. Redpath is also scheduled to set up for mining in Block 16 early in 2017. Redpath has demonstrated excellent leadership skills with a commitment to safety and a disciplined and open approach. The engagement with Redpath is a win-win collaboration that demonstrates confidence in the potential at the Maseve Mine from a well regarded global mining contractor. The more tonnes mined from Block 11, the better both Redpath and the Company will do. We see Redpath as an excellent partner."

Management changes have been made at the Maseve Mine and a process of rationalizing and consolidating underperforming and redundant contractors was undertaken in late calendar 2016. Safety has remained a priority during these changes. Many mining services previously provided by several contractors will now be consolidated under the management of Redpath, increasing efficiency.

During December 2016, Block 11 began to produce mined tonnes, contributing approximately 21.3% (8,388 tonnes) of mined ore flow to monthly production. Double decline access and through ventilation to Block 11 was completed in late December 2106. Now that infrastructure is coming on line where needed, and with contractor changeover being undertaken, Block 11 is scheduled to contribute approximately 50% (30,000 tonnes) to mined ore flow in January 2017. Mining rates in the second half of January 2017 and in the months ahead are scheduled to continue improving as Block 11 is further developed. During 2017 Block 11 is scheduled to build up to 70-80% of mined ore flow. At full production Block 11 is planned to provide up to 76,000 tonnes of ore a month.

Production ramp up at the Maseve Mine has been behind plan since commissioning in April 2016 due primarily to poor mining contractor performance and delayed infrastructure completion. As disclosed in the Company's press release dated November 29, 2016, a much-publicized safety drive in the Northwest Region by the inspectorate branch of the South African Department of Mineral Resources ("DMR") during the latter part of the Company's first fiscal quarter resulted in intermittent work stoppages at the Maseve Mine, also causing a loss of some development and production.