MOVING FORWARD ON

THE PLATINUM HIGHWAY

2010 ANNUAL MEETING PRESENTATION

January 12, 2011

Opportunity at Disount

Mine Africa Breakfast

Mines and Money 2012

R. Michael Jones, P.Eng

Platinum Group Metals Ltd

President and CEO

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Disclosure This presentation has been prepared by R. Michael Jones. It has been prepared with due attention however the detailed figures and

calculations may contain errors and source material has not been verified. The material from the public domain has been accepted and

referenced where appropriate. The citing of research material for the purpose of this presentation specifically does not constitute an

endorsement of the figures by the author or Platinum Group Metals and are not technical information under 43-101 in Canada. Figures are

shown merely to record the views of others already in the public domain.

The Presentation has been completed to stimulate discussion, can not be relied on and is not intended as investment advice for any

jurisdiction. Any opinion expressed here is that of the author and is not necessarily that of Platinum Group Metals Ltd or any other

company where the author has directorship or other interests.

Forward-looking statements are necessarily based on a number of estimates and assumptions that are inherently subject to significant

business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ

materially from those projected in the forward-looking statements. Such factors include, among others: metals price volatility; demand for

platinum and the platinum supply; additional fundraising requirements; defective title to mineral claims or property; discrepancies between

actual and estimated reserves and resources, between actual and estimated development and operating costs, between actual and

estimated metallurgical recoveries and between estimated and actual production; changes in national and local government legislation

(including environmental legislation), taxation, controls, regulations and political or economic developments in Canada, South Africa or

other countries in which the Company does or may carry out business in the future; success of exploration activities and permitting time

lines; the speculative nature of mineral exploration, development and mining, including the risks of obtaining necessary licenses and

permits; dilution; competition; currency fluctuations; and loss of key employees

Conclusions

• Africa has some of the best mineral opportunity in the world

• Belts for PGMS, Gold, Copper, Coal, Iron Ore, Chrome, Diamonds are in the top of the world lists

• Exploration has been sporadic and “largely model constrained” – NEW IDEAS=NEW STUFF AT BIG SCALE – eg: Waterberg, Flatreef, Copper Belt

• SELECTED DISCOUNTS CAN BE LARGE

WHICH ONES?

WHY WE SHOULD

CARE

In the Growing World

Africa Can Not Be

Ignored – 2045 9B

- Source National

Geographic – 1930 2B

• Where will the minerals

come from?

• What is the assurance for

each countries needs by

mineral

• Are North Americans and

Europeans thinking in these

terms – markets suggest NO

• Asian governments are

moving strategically – PGM’s

are a classic example

THE BELTS –TOP CLASS

• Wits Gold –South Africa

• Ashanti Belt Gold – Ghana

• Copper Belt – Zambia,DRC

• Iron Ore – South Africa

• Diamonds – DRC, Botswana-South Africa

• Coal- South Africa, Botswana

• PGMS, Chrome-South Africa-Zim

• Bauxite, Manganese, Cobalt

• Mineral Sands –South Africa

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• Although underexplored, Africa hosts about 30% of the planet's mineral reserves, including 40% of gold, 60% cobalt and 90% of the world's PGM reserves - making it a truly strategic producer of these metals.

• Africa's contribution to the world's major metals combined (copper, lead and zinc) is less than 7%.

• Base metal belts are present with spectacular deposits and production lags behind

(Source: www.MBendi.com)

AFRICA IS ESSENTIAL

1 China 355

2 Australia 270

3 United States 237

4 Russia 200

5 South Africa 190

6 Peru 150

7 Canada 110

8 Ghana 100

9 Indonesia 100

10 Uzbekistan 90

World GOLD

Producers - 2011 (tonnes)

Source: www.goldinvestingnews.com 2012

World COPPER

Producers - 2009 (tonnes)

1 Chile 5,360,800

2 United States 1,220,000

3 Peru 1,049,933

4 China 915,000

5 Australia 875,000

6 Indonesia 817,796

7 Russia 675,000

8 Zambia 502,998

9 Canada 606,958

10 Poland 497,200 Source: Copper Investing News

1 PR China 3471Mt

2 USA 1004Mt

3 India 585Mt

4 Australia 414Mt

5 Indonesia 376Mt

6 Russia 334Mt

8 South Africa 253Mt

8 Germany 189Mt

9 Poland 139Mt

10 Kazakhstan 117Mt

World COAL

Producers - 2011 (Million tonnes)

Source: World Coal Association 2012

1 China 900

2 Australia 420

3 Brazil 370

4 India 260

5 Russia 100

6 Ukraine 72

7 South Africa 55

8 United States 49

9 Canada 35

10 Iran 33

World IRON ORE

Producers - 2010 (tonnes)

Source: www.MBendi.com 2012

1 Botswana 25,000

2 Russia 17,800

3 Angola 12,500

4 Canada 11,800

5 Congo 5,500

6 South Africa 3,500

7 Namibia 1,200

8 Guinea 550

9 Ghana 300

10 Cent. African Rep.

250

World GEM DIAMOND

Producers - 2011 (1000 carats)

Source: USGS Mineral Commodity Summaries 2011

Source: The American Resource Policy Network (ARPN) 2011

Source: The American Resource Policy Network

(ARPN) 2011

1 United States 237,295

22.6%

2 Russia 157,010

14.4%

3 China 114,500

12.6%

4 Australia 76,400 8.9%

5 India 60,600 7.0%

6 Germany 40,699 4.7%

7 Ukraine 33,873 3.9%

8 Kazakhstan 33,600 3.9%

9 South Africa 30,156 3.5%

10 Serbia 13,770 1.6%

Proved Recoverable COAL

reserves

2008

(million tonnes)

Source: World Energy Council -

2010

Chart source: www.mining.com

• The Value of Resources to South Africa is estimated to

exceed Russia, Australia Canada and Brazil

• Portfolios for minerals have to consider South Africa, it is too

important to pass

• $2.5 T in South Africa – Nationalization is just too expensive

plus other problems

Source: www.mineprocessing.com

2011/2012 Survey of Mining Companies – Fraser Institute

Fraser

Institute

Policy

Index

Botswana

Burkina Faso

Mali

Ghana

Zambia

South Africa

Niger

Zim

DRC

Egypt

Africa/World

2011/2012 Survey of Mining Companies – Fraser Institute

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INSIGHTS FROM BMO DATA

• In the case of producers the Africa discounts can be significant – 15%

• The data suggests that the juniors offer more discount – universally – 30%-50%

• Why buy an Africa Junior and take the added risk?

• Need to consider the odds of massive growth – mature area or underexplored

• If you bet Junior – why not make it Africa?

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SPECIAL SITUATIONS

• WHAT ABOUT PGMS?

• MY BROKER TELLS ME IT IS HOT

• HE SUGGESTS I BUY A NORTH AMERICAN PRODUCER TO AVOID THE AFRICA RISK

• OK LETS LOOK AT RISK AND REWARD

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North American PGE Company Performance 1997 to 2011

Impala Platinum as Compared to SWC and PDL

SPECIAL SITUATIONS

• IF YOU WANT RELIABILITY –

• NORTH AMERICAN PGM’S ARE THE WAY TO GO!

• THEY HAVE RELIABLY LOST MONEY AND ISSUED SHARES FOR OVER A DECADE

• GOD PUT PLATINUM IN SOUTH AFRICA

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SPECIAL SITUATIONS

• ISN’T SOUTH AFRICA TAPPED OUT

• AND WHAT ABOUT THAT GUY AND THE CALL FOR NATIONALIZATION

• THE LABOUR THING LOOKS LIKE A MESS

• DEFINITELY NOT TAPPED OUT – WATERBERG

• ANC DOES NOT SUPPORT NATIONALIZATION

• LABOUR HAS CHALLENGES

• NIMBY SCARES ME

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NORTH OF NORTH BUSHVELD

• Simple

Extension

• Key to discovery

• Thinking

Outside the box

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Africa is Under Explored – Juicy Stuff to be Found

• Waterberg PGM

Discovery 2012

• Near Surface -140m

• Thick

• 4-58m thick

• Compared to 2000m

Deep 1m thick mines

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WB 034

F Layer,

2E +Au Pt, Pd Au

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Nationalization! • South Africa

– Nationalization would require the dismantling of the South Africa Constitution - there are bigger risks in other countries

• North America – You have to look at the “political risk issue” holistically

PROSPERITY MINE, as proposed, cannot be granted federal authorizations to

proceed - Prosperity - One of the largest undeveloped copper-gold deposits in

Canada – November 2010

June 1993: BC Government determines Windy

Craggy is environmentally too

hazardous and decides to protect the world class

wilderness values of Tatshenshini as a

Class A Park.

WINDY CRAGGY: INTENSIVELY REVIEWED; REPEATEDLY REJECTED

Nationalization /NIMBY

• There have been issues in many African countries as well –

• But - Not in my back yard – “NIMBY”

• Much more common in “developed” countries where many are disconnected from the real world

• Power – comes from the wall – silly

-Chicken comes from the store

-my fork comes from mining – really?

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Observations

• The World Needs Stuff

• If it is not grown it is mined

• Africa is a growing improving place

• Modern exploration is just beginning in many areas

• Yes – there will be problems

• There is risk to mining development every where in the world

• Risk needs to be assessed holistically – geological and NIMBY

• Jobs are needed in Africa

• Mineral development is a logical next step

• New York is becoming more involved through the TSX – less from London

• The people who need the metal are moving on the opportunity

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Conclusions

• Africa Discount Represents an Enormous Opportunity

• Juniors are part of the Mining Discount and Growth potential

is very cheap

• Africa has a key global role ahead – and mining plays a key role in Africa

• Exploration potential remains wide open –eg: Waterberg

• – The smart money will and is investing now

• Asian Governments are already

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Contacts:

Platinum Group Metals Ltd

Suite 328 – 550 Burrard Street

Vancouver, BC

V6C 2B5

+1604-899-5450

info@platinumgroupmetals.net

Platinum Group Metals RSA (Pty) Ltd

Technology House

Victory Park

Johannesburg

+27 11 782 2186