Platinum Group Metals Reports First Quarter 2017 Results and Operational Update - Seite 4

During the period ended November 30, 2016 approximately $1.73 million was spent at the Waterberg Project for engineering and exploration activities. At period end $21.7 million in net costs are capitalized to the Waterberg Project. The current budget for work at Waterberg is fully funded by 28.35% joint venture partner the Japan Oil, Gas and Metals National Corporation.

For more information on mineral properties, see Notes 4 and 5 of the Financial Statements.

Loan Facilities Amended

To accommodate the Company for delayed production ramp up at the Maseve Mine, the Sprott Resource Lending Partnership ("Sprott") and Liberty Metals & Mining Holdings, LLC ("LMM") have agreed to provide the following waiver and amendments to their existing loan facilities to the Company:

• a three-month extension to the covenant whereby Maseve must reach and maintain a three-month rolling average of at least 60% of planned production for a three-month period to commence with the first measurement month of the original plan moved to February 2017;
• a three-month extension to the covenant whereby Maseve must reach and maintain a three-month rolling average of at least 70% of planned production for a three-month period to commence with the first measurement month of the original plan moved May 2017;
• to waive until February 15, 2017 the covenant to maintain at all times a working capital in excess of $5,000,000; and
• to postpone from January 31, 2017 to March 31, 2017 the commencement of the requirement to pay the Sprott Lenders 50% of the proceeds of equity and debt financings (excluding intercompany financings) of the Company or its subsidiaries having a value exceeding $1,000,000 in the aggregate, in partial repayment of the Sprott Facility.

In consideration of the above the Company has agreed to issue 568,819 common shares of the Company as directed by Sprott and to LMM pursuant to the amended Sprott Facility and amended LMM Facility. This amount is based on 1.0% of the outstanding principal amount advanced by both the Sprott and LMM, being $425,000 and $453,440 respectively, converted to $1,153,391 Canadian dollars using the Bank of Canada noon spot rate on January 12, 2017. The shares were then priced at the ten-day volume weighted average price on the Toronto Stock Exchange (the "TSX") of $2.253 Canadian dollars per share, less a ten percent discount. The amendment fee shares shall be issued within three business days after the Company's receipt of the conditional approval of the TSX and the approval of the NYSE MKT LLC for the listing of the amendment fee shares, whichever occurs later, subject to compliance with applicable law. If the Company is unable to obtain such approvals or does not issue the amendment fee shares by January 27, 2017 or either the TSX or the NYSE MKT LLC advises the Company that it will not approve the listing of the amendment fee shares, the Company is required to pay the amendment fee in cash within two business days thereafter. 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.