Platmin declares commercial production; production up 33% Y-O-Y Tuschenkomst/Sedibelo West, “one orebody-one mine

TORONTO, May 13 - Platmin Limited ("Platmin" or "the Company"; TSX/AIM: PPN; JSE: PLN) today announced production results from its Pilanesberg Platinum Mine ("PPM") and financial results for the quarter ended March 31, 2011. This release should be read in conjunction with the Company's March 31, 2011 Quarterly Financial Statements and Management Discussion & Analysis for the March 31, 2011 quarter, available at www.platmin.com and filed on www.sedar.com.

Production of 19,148 4E ounces (4E ounces in this release refers to platinum, palladium, rhodium and gold) for the quarter ended March 31, 2011 was some 33% higher than Q1 FY2010 (14,393 4E ounces). CEO Tom Dale noted that although modest reef stockpiles had been generated during the quarter, various operating pressures had limited volumes through the concentrator.

Sales revenue for the quarter of US$26.040 million reflects an average basket price of US$1,570 per 4E ounce, some 15% higher than Q1 FY2010 (US$1,370 per 4E ounce). Rand strength reduced the basket price improvement in rand terms to 7% (Q1 FY2011 ZAR10,959; Q1 FY2010 ZAR10,249).

From January 1, 2011, PPM declared commercial production and the results of operations are now reported in the statement of income. As the build-up continues, the Company recorded a net loss for the quarter ended March 31, 2011 of US$34,834 million, or US$0.04 per share.

The principal focus of Platmin is to build up PPM's production from its Tuschenkomst Pit to the levels it forecast in the bankable feasibility study ("BFS"). The build-up profile remains materially unchanged with monthly production forecast to reach 12,000 4E ounces by end 2011 provided the planned volumes of waste stripping can be achieved. Current planning provides for the monthly level of metals output forecast in the BFS by end 2012 of 20 000 4E ounces, again subject to the achievement of the planned volumes of waste stripping.

Dale highlighted that although budgeted volumes of waste stripping had not been achieved, and that this remained the core operating focus and challenge, improved control of the sequencing of waste stripping had helped generate modest reef stockpiles. Management aims to accelerate the build-up of stockpiles to ensure processing flexibility.

PPM assumed joint managerial responsibility for the plant with the appointed contractor during February 2011 and volumes milled started to improve during the second half of April. The replacement of 3 inclined grizzlies with vibrating feeders, effectively debottlenecking the run of mine bins, combined with the pressures created by the bulk test of UG2 reef through the dense medium separator ("DMS") and the steadily increasing volumes of hard sulphide ores, has improved the feed to the concentrator. The results of the bulk test of upgrading the high grade UG2 reef through the concentrator were promising and slight modifications to the plant should provide the flexibility to also upgrade the Merensky and Pseudo reefs through the DMS.

On March 23, 2011 Platmin announced the acquisition of an incremental 5.99 million 4E inferred resource ounces (42.57 million tonnes at a grade of 4.38 g/t), contained within the western portion of the Sedibelo PGM Project Concession ("Sedibelo West") from the Bakgatla Ba Kgafela Tribe ("Bakgatla") and Itereleng Bakgatla Mineral Resources (Proprietary) Limited ("IBMR"), for a total purchase consideration payable in cash of US$75.000 million (US$82.000 million including VAT). This is equivalent to US$12.50 per 4E inferred resource ounce.

Sedibelo West is contiguous with and down-dip of the eastern boundary of the Tuschenkomst property, where the PPM opencast mining operation is currently taking place.

The Sedibelo West purchase consideration and VAT thereon was classified as restricted cash at March 31, 2011, and subsequently transferred to an escrow account, pending the DMR's approval for Sedibelo West to be incorporated into PPM's Tuschenkomst Mining Rights.

The acquisition of Sedibelo West will add value to PPM by:

- significantly increasing the resource base accessible from the existing Tuschenkomst pit;

- extending the current life of mine;

- providing operational flexibility, once waste stripping is complete, particularly in the north pit;

- directly accessing sulphide ore with high recoveries (in the absence of oxide and transitional ore).

Optimisation and mine planning studies to maximize the value of the enlarged PPM/Sedibelo West property have begun, and should be concluded during the 2011 financial year.

Platmin's balance sheet remains strong. Following the successful conversion of all of its US$135.000 million worth of debentures the company holds unrestricted cash totalling US$177.000 million and has no material debt.

In line with it's policy, Platmin has not sold forward any of its production.


Other significant developments since the beginning of 2011 include:

- On February 28, 2011, the Pallinghurst promissory note of US$26.000 million entered into on March 22, 2010 was repaid in full, together with accrued interest and structuring fees, totalling US$28.822 million;

- On March 23, 2011 Platmin acquired an effective 50% interest in power and water rights and certain other assets pertaining to the larger Sedibelo area. These rights, the acquisition of the Sedibelo West PGM property, and the commonality of shareholders across other neighbouring properties, leaves Platmin well placed to participate in any further consolidation of adjacent properties on the Western Limb of the Bushveld Complex;

- On March 23, 2011, Kgosi Molefe John Pilane, the appointed traditional leader of the Bakgatla, was invited to join the Board of Platmin;

- On March 31, 2011, the Company announced that all the conditions precedent for the conversion of all the convertible debentures had been fulfilled and that conversion had taken place. As a consequence, 160,714,286 new Platmin common shares have been issued and Platmin now has 910,395,053 common shares in issue;

- An application to amend the Environmental Management Plan to convert the open void being created at the Tuschenkomst Pit into a water storage facility has been prepared and will be lodged with the DMR during May 2011. Should such application be granted, the cost of rehabilitating the pit will reduce and a portion of the restricted cash held to meet the rehabilitation costs would be released. Such amount will be determined upon final approval by the DMR.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This market release contains ''forward-looking information'' which may include, but is not limited to, statements with respect to the future financial and operating performance of Platmin Limited (the "Company" or "Platmin"), its subsidiaries and affiliated companies (which together with Platmin is referred to as "the Platmin Group" or "the Group"), and its mineral projects, the future price of 4E metals (4E refers to platinum, palladium, rhodium and gold), 4E production levels, mining rates, the future price of other base metals, future exchange rates, the estimation of mineral resources and reserves, the realization of mineral resource estimates or their conversion into reserves, costs and future costs of production, capital and exploration expenditures, including ongoing capital expenditure at the Pilanesberg Platinum Mine ("PPM"), costs and timing of the development of new deposits, costs and timing of the development of new mines, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations and exploration operations, timing and receipt of approvals, licenses, and conversions under South African mineral legislation, environmental risks, title disputes or claims, limitations of insurance coverage and the timing and outcome of regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words such as ''plans'', ''expects'', ''is expected'', ''budget'', ''scheduled'', ''estimates'', ''forecasts'', ''intends'', ''anticipates'', "targeted" or ''believes'' or variations (including negative variations) of such words and phrases, or state that certain actions, events or results ''may'', ''could'', ''would'', ''might'' or ''will'' be taken, occur or be achieved.

Forward-looking statements in this market release, amongst others, forecast production reaching a monthly rate of 12,000 4E ounces by end FY2011 and 20,000 4E ounces by end FY2012 provided the planned volumes of waste stripping can be achieved; lodging of an amended Environmental Management Plan in May 2011; recovery rates and grade; targets, estimates and assumptions in respect of 4E metal prices and production; allocation of funds for current commitments; and the timing and completion of definitive feasibility engineering studies at the Mphahlele, Grootboom and Loskop Projects.

Such forward-looking statements are based on a number of material factors and assumptions, including, that contracted parties provide goods and/or services on the agreed time frames, that budgets and production forecasts are accurate, that equipment necessary for construction and development is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that geological or financial parameters do not necessitate future mine plan changes, that no unusual geological or technical problems occur, and that grades and recovery rates are as anticipated in mine planning.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Platmin Group to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration and mining activities; development and operational risks; title risks; regulatory risks; conclusions of economic evaluations and studies; fluctuations in the value of the United States dollar relative to the Canadian dollar or South African rand; changes in project parameters as plans continue to be refined; future prices of .4E metals; possible variations of ore grade or recovery rates (including the existence of potholes, faults and other geological conditions that may affect the existence or recovery of resources and reserves); failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, industrial unrest and strikes and other risks of the mining industry; political instability, insurrection or war; the effect of HIV/AIDS on labour force availability and turnover; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors communicated in the section entitled ''Risk Factors'' of Platmin's current annual information form ("AIF") and its final short form prospectus dated May 5, 2010, which can both be viewed at www.sedar.com. Although Platmin has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are made as of the date of this market release and Platmin disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.

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