Platmin Limited: Mining contract re-organisation gathers momentum

Metal output recovering

TORONTO, Nov. 7, 2011 - Platmin Limited ('Platmin' or 'the Company') today announced production results from the Pilanesberg Platinum Mine ('PPM') for the quarter ended September 30, 2011. This release should be read in conjunction with the Company's September 30, 2011 Management Discussion & Analysis ('MDA'), which is available at www.platmin.com and filed on www.sedar.com.


Operations

Subsequent to the riot on June 23, 2011 and strike action during most of July 2011, waste stripping quickly recovered to above 1 million bulk cubic metres (mbcm) in August and September 2011. This was the direct result of renewed cooperation between MCC Contracts (Pty) Ltd ('MCC'), its workforce and the National Union of Mineworkers. Industrial relations interventions by external professionals are expediting the recovery.

The mining contract reorganisation, which involves splitting responsibility for the mining sub-cycles of drilling, blasting, waste overburden stripping and reefing, gathered momentum. Specialisation is allowing contractors to focus on core strengths and direct reporting by these contractors to PPM facilitating improved control of operations.

Eagle International Drilling & Blasting was appointed as drilling contractor during the quarter, reporting directly to PPM management. This new arrangement is working well and is expected to deliver improved pit conditions and direct control of mineral resource management to PPM.

Explotech (MCC's blasting division), reported directly to PPM management from Q3 2011.

MCC is contracted to strip 1.25 mbcm of overburden waste per month, drawing on its core strengths. Benhaus Mining (Pty) Ltd and Trollope Mining Services (Pty) Ltd came to site at the end of Q3 FY2011 as reefing contractors. Each has been contracted to load and haul a minimum of 300,000 bcm per month of reef and internal waste. Both contractors have extensive experience in narrow reef mining and local industrial relations.

Sales of 4E PGM ounces (oz) for Q3 FY2011 were 13 640 oz, compared to 13 788 oz for Q3 FY2010. Of the current quarter sales, more than 6 000 oz were dispatched in September, demonstrating the recovery from the effects of the June 23 riot.

Commenting on the quarter under review, Platmin CEO Tom Dale noted that 'Good progress has been made with the separation of responsibilities and reporting structures for drilling, blasting and load/haul. However we need the full support of the workforce to achieve our objectives and intensive industrial relations efforts are underway. These have helped us to achieve a good but not yet complete recovery of metal production since the riot. I am also delighted to report that no lost time injuries occurred during Q3 FY2011'

Platmin completed a diamond drilling program during the quarter which will facilitate the upgrade of the metal inventory of the Extended Tuschenkomst (including Sedibelo West) to reserve status. The results of this program, which will include Life of Mine revisions, will be tabled in the FY2011 annual financial statements, which are due at the end of Q1 FY2012.

The company is in close contact with the DMR on its application to amend the EMP for the Tuschenkomst pit on closure (refer section 8 of the MDA).


Financial Performance

Sales revenue for the quarter ended September 2011 was USD22.6 million (June quarter: USD34.5 million). This decrease was due mainly to lower metal sales, as a result of the strike. Basket metal prices averaged about USD1500/oz reflecting a marked softening towards the end of the quarter. The weaker ZAR has offset softer USD prices to a degree.

As announced on 1 November 2011, the Company has completed its delisting from AIM but remains listed on the TSX and JSE. Shareholders are referred to the notice of special meeting, released today, dealing with the convening of a special meeting regarding further corporate restructuring proposals.


Outlook

Tom Dale summed up the challenges: 'We have consistently achieved daily metal production targets when fresh ore has been delivered to the concentrator. The major obstacle to achieving metal production forecasts has been the inability to deliver planned volumes of waste and ore. The load/haul capacity being brought to site during Q4 FY2011 will powerfully address this issue. '


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 PGMs (being platinum, palladium, rhodium and gold), 4E PGM 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 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 PGM ounces by mid 2012; approval of an amended environmental management plan; recovery rates and grade; targets, estimates and assumptions in respect of 4E PGM 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 Company 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 PGM 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.



CONTACT:

Charmane Russell
Russell and Associates
27 11 880 3924
27 82 372 5816

Craig Shaw
Platmin Limited
27 12 661 4280