PLATINA RESOURCES LIMITED — Capital/Financing Update 2012

Sep 10, 2012

11th September, 2012

PLATINA RESOURCES DELIVERS POSITIVE SCOPING STUDY FOR OWENDALE PROJECT

OWENDALE PROJECT SCOPING STUDY HIGHLIGHTS

• Economic and technical viability of a combined platinum and scandium mining operation has been confirmed
• Existing platinum and scandium Indicated Mineral Resources can support an average mining rate of 6.9 Mtpa for 3 years. After 3 years the stockpiled scandium-bearing laterite will continue to be processed
  • o 0.9 tonnes of platinum produced per annum for 3 years
  • o 40 tonnes of scandium oxide produced per annum for 41 years
• Estimated capital expenditure of AUD$222 million
• Estimated annual operating costs of AUD$62 million for the first 3 years, reverting to approximately AUD$42 million once platinum processing ceases
• Gravity recovery for platinum, and atmospheric tank leaching for scandium
• Only Indicated platinum and scandium Mineral Resource has been incorporated into the study
• NPV of AUD$149 million (pre-tax, 100% equity, 10% discount rate, real terms)
• IRR of 15.0% (pre-tax)
• Significant upside exists to increase the size of both the platinum and scandium Mineral Resources
• Production targeted to commence in Q3, 2015

Platina Resources Limited (ASX: PGM) is extremely pleased to announce the positive findings of a Scoping Study at its Owendale Project in New South Wales, Australia.

The Scoping Study independently completed by Perth-based Battery Limits Pty Ltd, shows very positive project economics for the Company's wholly-owned Owendale Project. The Study details the viability of a combined platinum and scandium mining operation with a life of more than 40 years.

The Study analysed three different options: a standalone platinum operation, and a combined platinum and scandium operation. The combined platinum and scandium option deemed most desirable by the Company is highlighted as being economically feasible by the Scoping Study and gives impetus for the Owendale Project to proceed toward a pre-feasibility study (PFS).

Platina Managing Director Rob Mosig commented:

"The Study clearly shows that the current platinum and scandium Indicated Mineral Resources at Owendale would deliver an excellent cash-flow over a long life span.

"I am extremely proud of achieving a maiden Mineral Resource and positive scoping study at Owendale in such a short period of time. For Owendale to also be Australia's most high-grade scandium deposit is an extra added bonus.

"Our focus now is to move Owendale into a mining operation as soon as possible.

"We're especially pleased that significant exploration upside still exists to increase the Mineral Resources, particularly with the platinum.

"Considering the current operational difficulties in South Africa, the largest producer of platinum, we are well positioned to offer an alternative source of the metal."

The current platinum Indicated Mineral Resource is sufficient to sustain a supply feed to the mill of just under 3 years. The Company is confident that the platinum Indicated Mineral Resource can be substantially increased with additional exploratory drilling in areas of known platinum mineralisation as discovered by historic drilling. The proposed gravity process for the recovery of platinum will produce a concentrate grading approximately 340g/t platinum. Whilst this is already a saleable product, the Company intends to conduct further metallurgical test work in order to determine a method for producing a concentrate grading >1,000g/t platinum.

Owendale is Australia's highest-grade scandium deposit, and one of the country's largest scandium repositories, with significant upside. Platina has conducted extensive market research into scandium and met key end-users in the fuel cell and alloy industries. Based on these discussions, the Company believes that an annual production of 40 tpa scandium oxide is a realistic figure to use for the Scoping Study. Should market conditions change, and scandium demand increases, the process plant nominated in the Scoping Study is able to be upgraded accordingly.

A particularly unique feature of the Owendale Project is that scandium and platinum utilise different processing paths, giving the flexibility to increase or decrease outputs of each product independently of one another.

Only platinum and scandium mineralisation of Indicated Mineral Resource classification has been incorporated into the Study. The conversion of Inferred to Indicated or Measured Mineral Resource is highly likely to positively affect the Project.

Introduction

The Owendale Project is located in central New South Wales, approximately 80km northeast of the town of Parkes, and 350km west of Sydney. The project area overlies freehold pastoral ground and is accessed via gazetted roads. Pre-existing power lines, gas and water pipelines are closely located to the proposed mining operations.

Mineralisation is hosted in laterite that extends from 2m to 55m beneath the surface. The platinum and scandium Mineral Resources (refer to Tables 1 & 2) are spatially associated with one another, and the majority of the scandium Mineral Resource is coincident with the platinum Mineral Resource. The two main deposits are referred to as 'Owendale North' and 'Cincinnati' which are located within 1km of one another (refer to Figure 1). The majority of these Mineral Resources are in the Indicated Resource category and support a >40 year production life.

The majority of the platinum is present as isoferroplatinum (a platinum and iron alloy). Scandium is present within an iron oxide mineral known as goethite.

ResourceClassification	Tonnage(Mt)	Pt(g/t)
Owendale North Deposit
Indicated	5.0	0.7
Inferred	1.7	0.6
Total	6.6	0.7
	Cincinnati Deposit
Indicated	2.6	0.7
Inferred	2.2	0.7
Total	4.8	0.7
	Milverton Deposit
Inferred	1.3	0.6
Grand Total	12.7	0.7

Resource	Tonnage	Sc
Classification	(Mt)	(g/t)
Owendale North Deposit
Indicated	3.8	380
Inferred	0.4	360
Total	4.2	380
Cincinnati Deposit
Indicated	5.5	310
Inferred	0.4	300
Total	5.9	310
Grand Total	10.1	340

Table 1 Total platinum Mineral Resource using Table 2 Total scandium Mineral Resource using a 0.4g/t Pt cut-off a 200g/t Sc cut-off

Mineral Resource Table Notes

• 1. The Owendale North and Cincinnati Deposits also contain low grade scandium mineralisation (<200g/t) which is not reported.
• 1. Numbers may not add up due to rounding off.
• 1. Only Indicated Resource for the Owendale North and Cincinnati platinum and scandium Mineral Resources has been used in the Scoping Study.
• 1. The Mineral Resource for Scandium is not exclusive of the Mineral Resource for Platinum, and therefore the two cannot be added together to derive a total

Mining

The mining schedule is dictated by optimising the extraction of platinum in order to produce maximum cashflows from the platinum product. As the majority of the current platinum and scandium Indicated Mineral Resources are coincident, the scandium will be extracted with the platinum and then either processed or stockpiled. Mining equipment will not be purchased by Platina, with the Company opting instead for contract mining. Mining will be undertaken by a small truck and shovel fleet.

The platinum and scandium Indicated Mineral Resources are proposed to be mined from three open cut pits, two at the Owendale North Deposit, and one at the Cincinnati Deposit (refer to Figure 1 for location map, and Figure 2 & 3 for pit sections). The pits are designed to maximise cash-flow, resulting in 20.6 Mt of mined rock containing 5.2 Mt of platinum-bearing laterite, and 4.4 Mt of scandium-bearing laterite.

The mill for platinum processing is designed to have a capacity of 2 Mtpa, providing a 2.6 year life for the current platinum Indicated Mineral Resource. It is the Company's intention to increase the size of the platinum Indicated Mineral Resource in order to extend the mill life.

Stockpiled scandium-bearing laterite is proposed to be delivered to the mill via front end loader on an as required basis. At a production rate of 40 tpa scandium oxide, the stockpile will be of sufficient size to cater for over 40 years of supply.

Processing

The differing mineralogical characteristics between platinum and scandium necessitate the requirement for two different processing methods: gravity for the recovery of platinum, and atmospheric tank leaching for scandium. The end products are a platinum concentrate, and scandium oxide with a purity of >99.9%.

Conventional gravity technologies are proposed for the beneficiation of platinum from laterite. Primary crushing uses an MMD Mineral Sizer to produce a crushed product that is then scrubbed using a rotary

scrubber. A concentrate will then be generated via single stage jig stratification of the coarse material (>1.0mm), and a slimes circuit for classification of the fines. The slimes circuit incorporates de-sliming cyclones and a single Upflow Classifier ahead of a milling circuit. The milling circuit consists of an overflow ball mill (feed size up to 6mm) and stack sizer, further beneficiation will then occur in a two-stage centrifugal Kelsey Jig circuit. The final concentrate will then undergo a wash stage.

The plant design for scandium is conceptual in nature, and is based on limited test work by the Company and knowledge gleaned from other laterite-hosted nickel and scandium deposits. As per the platinum, primary crushing will occur via an MMD Mineral Sizer, the crushed material will then be scrubbed and screened using a Rotary Scrubber. Once prepared, the scandium-bearing material will be placed into a 5-stage Atmospheric Tank Leach (ATL) retained for 12 hours at a temperature of 95°C. Discharge from the ATL is then fed into a 6 stage Counter Current Decantation circuit where the residue is washed to separate the leach liquor pregnant with scandium, from the leach residue. The pregnant liquor then goes into a solvent extraction circuit which separates the scandium from other metals in solution. The scandium is then precipitated from the resulting solution, and calcined in a rotary kiln to produce scandium oxide.

At present, the Company is reviewing alternative processing technologies using innovative techniques that may significantly reduce capital and operating costs for both platinum and scandium.

Yours faithfully

Robert W. Mosig Managing Director

For further information, please contact:

Office: +61-7 5580 9094 Email: admin@platinaresources.com.au Website: www.platinaresources.com.au

The information in this announcement that relates to Mineral Resources is based on information compiled by Mr J Watson who is a f ull time employee of Snowden Mining Industry Consultants and who is a Member of The Australasian Institute of Mining and Metallur gy. Mr Watson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Watson consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Table 3 Financial Analysis for a Combined Platinum and Scandium Mining Operation (41 year life)

Description	Assumption/Output
Processing plant Pt throughput (over 3 years)	1.7 Mtpa
Processing plant Sc throughout (over 41 years)	104,244 tpa
Average Pt feed grade (over 3 years)	0.8 g/t
Average Sc feed grade (over 41 years)	346 g/t
Average metal recoveries	66.3% Pt, 70.0% Sc
Average annual production	0.9 tonnes of Pt (over 3 years), 40 tonnes of Sc Oxide (over 41 years)
Long-term prices	USD$2,000/oz Pt, USD$2,000/kg Sc oxide
Exchange rate (AUD:USD)	0.90
Net present value	AUD$149 Million (pre-tax, 100% equity, 10% discount, real terms)
Internal rate of return	15.0% (pre-tax)

Notes to Table 3

• 1. 1kg of scandium metal equates to approximately 1.5kg of scandium oxide
• 1. Net present value and Internal rate of return are calculated at commencement of project development

Figure 1 Location map for the Owendale North and Cincinnati deposits

Figure 2 E-W cross section of the Owendale North block model with pit shell section

Figure 3 E-W cross section of the Cincinnati block model with pit shell section