PLATINA RESOURCES LIMITED — Capital/Financing Update 2016

Aug 30, 2016

31 August, 2016

Platina assesses processing options for Owendale

ASX Release: PGM

Highlights

• Final review of scandium, platinum and cobalt processing options for the Feasibility Study in progress
• Discussion continues in China and Europe with Al-Sc master alloy producers
• Environmental components of Owendale Final Feasibility Study have commenced
• Environmental Impact Statement and Mining Lease Application expected to be submitted within 12 months
• Skaergaard Field Camp in Greenland overhauled in consideration of 2017 activities program.

Platina Resources Limited (ASX: PGM) is pleased to advise that environmental studies which form a major component of a Feasibility Study for its Owendale Scandium, Platinum, Nickel and Cobalt project in central New South Wales, Australia are progressing well.

By the end of September, Platina expects to finalise the technical and processing activities associated with the planned Feasibility Study. The availability of higher grade scandium and cobalt from the Owendale Mineral Resource has required some reassessment of the potential cost benefit for different processing methods.

The previous scoping study selected High Pressure Acid Leach (HPAL) as the preferred method. However, some options were not previously assessed and may now become more viable when considering a potentially higher grade feed. This has delayed the decision on the planned scope in order to ensure the Feasibility Study pursues the most cost effective processing route.

Platina is excited by the high grade mining and stockpiling options now available and the opportunities this now presents. The upcoming work will incorporate a review of the processing methods and options before embarking on a final approach whilst still assessing the benefits of the co-production of platinum, cobalt and nickel from the scandium focussed process.

The Company has also not discounted the possibility of processing the Owendale laterite offshore, and this will be included in the options study.

In addition, the Company maintains a close liaison with several scandium-aluminium master alloy producers with a view to assessing future world scandium demand, off-take possibilities and potential cooperation possibilities.

Consultants RW Corkery & Co Pty Ltd ("RWC"), based in Orange, NSW, are engaged to complete the environmental studies. RWC previously completed some preliminary environmental work at Owendale in 2011, which is expected to expedite the current studies. Work by RWC will include environmental base line monitoring programs and conceptual design documentation for initial stakeholder engagement in conjunction with the planned Feasibility Study. In the next few weeks, a water monitoring and detailed topographical survey will be completed over the proposed Mining Lease area as a prelude to siting tailings dams and stockpile locations. An ecological survey is planned in the coming months.

Platina expects a full Environmental Impact Statement and a Mining Lease Application for Owendale to be completed within 12 months.

Owendale Summary

The planned Owendale Project Feasibility Study follows the earlier Scoping Study (refer ASX announcement 17 March 2015) completed by SNC Lavalin.

The recent Mineral Resource update (refer ASX announcement 12 July 2016) by ResEval Pty Ltd, which is included below in Table 1 and 2 at different but inclusive cut-off grades.

Mineral	Tonnes			Grades		In-situ Metal Content ~
Resource	Mt	Sc	Pt	Ni	Co	Sc2O3*	Pt	Ni	Co
Classification		ppm	g/t	%	%	t	Moz	t	t
Measured	4.3	405	0.53	0.12	0.07	2 700	0.07	5 300	2 800
Indicated	5.9	375	0.35	0.11	0.07	3 400	0.07	6 400	3 900
Inferred	15.6	380	0.29	0.12	0.06	9 000	0.15	18 800	9 600
Total	25.9	380	0.34	0.12	0.06	15 100	0.28	30 600	16 300

Table 1 Owendale Mineral Resource estimate at a 300 ppm Sc cut-off grade

Table 2 Owendale Mineral Resource estimate at a higher 600 ppm Sc cut-off grade
---------------------------------------------------------------------------------	--	--

Mineral	Tonnes			Grades		In-situ Metal Content ~
ResourceClassification	kt	Sc	Pt	Ni	Co	Sc2O3*	Pt	Ni	Co
		ppm	g/t	%	%	t	koz	t	t
Measured	120	665	0.52	0.17	0.17	120	2.0	200	200
Indicated	100	670	0.56	0.20	0.18	110	1.9	210	190
Inferred	390	650	0.39	0.21	0.12	390	4.9	800	490
Total	610	655	0.44	0.20	0.14	620	8.7	1 210	870

* Scandium is typically sold as Scandia or Scandium Oxide (Sc2O3) product and is calculated from scandium metal content and a 1.53 factor to convert to the oxide form.

*~ In-situ metal content includes no metallurgical or other recovery factors.*

Skaergaard Summary

At the Company's Skaergaard Project in East Greenland, plans are underway for a small field program in the 2017 season commencing July 2017. Further details of the field program will be provided in the next few months.

The Company is conscious that Skaergaard contains one of the world's largest palladium occurrences with 8.7 million ounces of palladium and 5.7 million ounces of gold. The Indicated and Inferred Mineral Resource completed by Wardell Armstrong in Great Britain (refer ASX announcement 23 July 2013), which is included in Table 3 below.

Mineral	Tonnes	Grades				In-situ Metal Content ~
Resource	Mt	Au	Pd	Pt	AuEq*	Au	Pd	Pt
Classification		g/t	g/t	g/t	g/t	Moz	Moz	Moz
Indicated	5.1	1.25	0.88	0.06	1.66	0.20	0.14	0.01
Inferred	197.1	0.87	1.35	0.11	1.51	5.49	8.53	0.68
Total	202.2	0.88	1.33	0.11	1.52	5.69	8.67	0.69

Table 3 Skaergaard Mineral Resource estimate at a cut-off of 1 g/t AuEq *

* AuEq = Au + Pt + 0.4×Pd based on 2013 prices of US$1400/oz Au, US$1400/oz Pt, US$560/oz Pd ~ In-situ metal content includes no metallurgical or other recovery factors.

Yours faithfully,

Robert W. Mosig Managing Director

Electronic copies and more information are available on the Company website: www.platinaresources.com.au

For further information, please contact:

Robert Mosig, Managing Director Office: (+61 8) 9380 6789 Email: admin@platinaresources.com.au

Grace Caixing Deng, China Representative Tel: (+86) 185 6669 1727 Email: graced@platinaresources.com.au

Nathan Ryan, NWR Communications Office: +61 (0) 420 582 887 Email: nathan.ryan@nwrcommunications.com.au

The information in this announcement that relates to the Owendale Measured, Indicated and Inferred Mineral Resource is extracted from the reports entitled ASX Release "Platina Delivers New Mineral Resource Classification and Increase at Owendale Scandium Project" released on 12 July 2016 and is available to view on www.platinaresources.com.au.

The information in this announcement that relates to the Skaergaard Indicated and Inferred Mineral Resource is extracted from the reports entitled ASX Release "New Resource Estimate for Skaergaard Gold and PGM Project, East Greenland" released on 23 July 2013 and is available to view on www.platinaresources.com.au.

The reports were issued in accordance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.