Platinum Group Metals Reports First Quarter 2017 Results and Operational Update - Seite 3

Production in September, October, November and December 2016 was 1,823, 907, 1,237 and 1,509 4E ounces respectively. Contractor issues, changeover of contractors, and concerns raised by the DMR have been addressed and the Company is again focused on safely increasing mined tonnage at grade from planned blocks while at the same time reducing costs in 2017.

Platinum Group will be focussed on turning the Maseve Mine to positive cash flow in the first half of calendar 2017. Development to other blocks near Block 11 with good grade thickness is scheduled to continue during 2017. Twelve-month aggregate production guidance for calendar 2017 is modelled at 100,000 to 120,000 4E ounces. Prior production guidance should not be relied upon.

Results For The Three Months Ended November 30, 2016

During the three-months ended November 30, 2016, the Company incurred a net loss of $2.45 million (November 30, 2015 - net loss of $0.712 million). General and administrative expenses during the three-month period were $1.167 million (November 30, 2015 - $1.394 million), losses on foreign exchange were $1.543 million (November 30, 2015 - gain of $0.399 million) while stock based compensation expense, a non-cash item, totalled $0.40 million (November 30, 2015 - nil). Finance income consisting of interest earned and property rental fees in the three-month period amounted to $0.30 million (November 30, 2015 - $0.283 million). Loss per share for the period ended November 30, 2016 amounted to $0.03 (November 30, 2015 - $0.01 per share).

Accounts receivable at November 30, 2016 totalled $5.8 million while accounts payable and accrued liabilities amounted to $16.832 million. Accounts receivable were comprised of amounts receivable on sale of concentrate, value added taxes repayable to the Company in South Africa and amounts receivable from partners. Accounts payable included contract development and mining fees, drilling expenses, engineering fees, accrued professional fees and regular trade payables for ongoing exploration, development and administration costs.

During the period ended November 30, 2016 the Company incurred approximately $27 million (November 30, 2015 - $34 million) in development, construction, equipment and other costs for the Maseve Mine. Initial proceeds from concentrate sales before commercial production are treated as a reduction in project capital cost with $3.1 million being recognized to development costs in the period ended November 30, 2016. As at November 30, 2016, the Company carried total deferred acquisition, development, construction, equipment and other costs related to the Maseve Mine of $514 million.