Platinum Group Metals Ltd.
OTC Bulletin Board : PTMQF
TSX : PTM

Platinum Group Metals Ltd.

October 24, 2005 16:44 ET

Platinum Group Metals Ltd.: Final Tranche Non-Brokered Private Placement Closed

VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA--(CCNMatthews - Oct. 24, 2005) -

DO NOT DISSEMINATE TO U.S.A.

Platinum Group Metals Ltd. ("PTM") (TSX:PTM)(OTCBB:PTMQF) reports the final 300,000 units of the 2.2 million unit non-brokered private placement announced September 29, 2005 was closed on October 21, 2005. Gross proceeds raised for the 2.2 million unit placement amount to $3.19 million. Each unit consists of one common share and one half a common share purchase warrant, with each whole warrant exercisable into a common share at a price of $1.75 for a period of 18 months from the date of closing.

The securities issued in this private placement will be subject to a four-month hold period from the date of closing in compliance with NI 45-102. The Company will pay a finder's fee of 2% in cash on a portion of the entire closed placement, resulting in a total payment of $45,704. As a result of the placement the Company now has 45,368,631 common shares issued and outstanding and 53,594,061 on a fully diluted basis.

About Platinum Group Metals Ltd. (www.platinumgroupmetals.net)

PTM is based in Vancouver, BC, Canada and Johannesburg, South Africa, with a dual-continent management team with successful track records spanning more than 20 years in exploration, mine discovery, mine construction, and mine operations.

Formed in 2000, the Company is focused on the development of platinum operations in both countries. PTM holds significant mineral rights in the Northern and Western Limbs of the Bushveld Igneous Complex of South Africa including a large scale joint venture with Anglo Platinum Limited in the Western Limb of the Bushveld Complex. The Western Bushveld Joint Venture, where PTM has the right to earn a 37% interest, includes a total inferred resource of 4.7 million ounces of platinum, palladium, rhodium, and gold with additional areas under drilling investigation.

PTM is a large mineral rights holder in the area surrounding Canada's only primary platinum and palladium mine near Thunder Bay, Ontario.

For US investors: SEC Form 20F, File No. 0-30306

On behalf of the Board of Platinum Group Metals Ltd.

R. Michael Jones, President and Director

There can be no assurance that any of the assumptions in the resource calculation will be supported by a Feasibility Study or will come to pass. Data is incomplete and considerable additional work will be required to complete further evaluation including but not limited to drilling, engineering and socio-economic studies and investment. No firm quotes for costs have been received. The legal right to mine the project discussed has not been confirmed or applied for and the process for such application is new in South Africa and untested. The potential capital cost of the project is beyond the current means of the Company and there can be no assurance that financing for further work will be available.

Note to U.S. Investors: Investors are urged to consider closely the disclosure in our Form 20F, File No. 0-30306, available at our office: Suite 328-550 Burrard Street, Vancouver BC, Canada, V6C 2B5 or from the SEC: 1(800) SEC-0330. The US Securities and Exchange Commission does not recognize the reporting of Inferred Resources. These resources are reported under Canadian National Instrument 43-101 and have a great amount of uncertainty and risk as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of Inferred Resources will ever be upgraded to a higher category. Under Canadian Rules estimates of Inferred Mineral Resources may not form the sole basis of feasibility studies or pre-feasibility studies. US INVESTORS ARE CAUTIONED NOT TO ASSUME THAT PART OR ALL OF AN INFERRED RESOURCE EXISTS, OR ARE ECONOMICALLY OR LEGALLY MINEABLE.

The TSX Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.

Contact Information

  • Platinum Group Metals Ltd.
    R. Michael Jones
    President
    (604) 899-5450 or Toll Free: 1-866-899-5450
    or
    Platinum Group Metals Ltd.
    John Foulkes
    Manager Corporate Development
    (604) 899-5450 or Toll Free: 1-866-899-5450
    or
    Platinum Group Metals Ltd.
    Erin Airton
    Manager of Communications/Strategic Planning
    (604) 899-5450 or Toll Free: 1-866-899-5450
    (604) 484-4710 (FAX)
    www.platinumgroupmetals.net
    or
    Roth Investor Relations, NJ
    Larry Roth
    (732) 792-2200