PLATINA RESOURCES LIMITED — Capital/Financing Update 2021

May 25, 2021

ASX Announcement

26 May 2021

New scandium supply options and applications promote opportunities for Platina Scandium Project.

Pla�na Resources Limited’s (ASX: PGM) campaign to unlock the value in its wholly owned Pla�na Scandium Project (PSP) is gathering pace a�er a new market assessment by global commodity research company CM Group showed an improving worldwide scandium market.

CM Group’s 2021 Independent Scandium Market Report highlighted increasing opportuni�es in the scandium market, which offers the poten�al to be significantly larger and more diverse if scandium oxide can be converted into value added, higher-margin and more readily saleable products like master alloy ( see Figure 2 ).

list of poten�al off-takers and industry players that can be targeted for investment amid new applica�ons, lower prices and greater supply security.

Historically, the combina�on of high prices and concerns over supply security have prevented the large-scale adop�on of aluminium scandium alloys in the aluminium industry. Applica�ons has been limited to a number of smaller niche markets where the cost is less sensi�ve ( see Figure 1 ). This is despite strong evidence that aluminium scandium alloys appeal as a lightweight, high strength alloy with excellent weldability characteris�cs. Aluminium scandium alloys also provide opportuni�es to reduce the carbon footprint through weight reduc�ons and improved

While the solid oxide fuel cell industry has been the dominant consumer of scandium in recent years, the metal’s greatest opportunity is as an aluminium alloy targe�ng aerospace, marine, military and automobile industries.

genuine opportunity for the aluminium scandium alloy sector to expand rapidly. However, new pure play scandium projects like the PSP which offer stable sources of non-by-product supply will be needed to support and s�mulate further demand growth in the future.

Pla�na Managing Director Mr Corey Nolan said the PSP was a world class opportunity to par�cipate in this market growth.

the project,” Mr Nolan said.

“Key strengths included high scandium grades, low capital and opera�ng costs, and access to excellent infrastructure including labour, water, rail, sealed roads and water. Further upside could from the poten�al to produce nickel and cobalt by-products which have significantly increased in price during 2021, and high-purity alumina.

value ( see Figure 3 ) and long-life, robust ore reserve and mineral resource posi�ons,” he said.

This announcement was authorised by Mr Corey Nolan, Managing Director of Pla�na Resources Limited.

Platina Resources Limited | ABN 25 119 007 939 | ASX: PGM

Level 2, Suite 9, 389 Oxford Street Mt Hawthorn Western Australia 6016 Phone +61 (0)7 5580 9094 Email: admin@platinaresources.com.au www.platinaresources.com.au

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For more informa�on:

Corey Nolan Gareth Quinn Managing Director Corporate Affairs Manager Phone +61 (0)7 5580 9094 Mobile: 0417 711 108 admin@pla�naresources.com.au gareth@republicpr.com.au

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Figure 1 shows the es�mated trigger prices for a wide variety of poten�al applica�ons. Source CM Group

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Figure 2

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Figure 3 shows the market value of global pure play scandium and scandium-other metals companies, demonstra�ng the PSP’s poten�al for value growth. There is no guarantee that Pla�na will achieve any of the valua�on increases shown by the peer group companies. A detailed summary of the compara�ve companies is outlined at the end of this ASX release. Prices 21/05/2021

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Pla�na Scandium Project Overview

The 100% owned PSP is located in central New South Wales, 350km west of Sydney. PSP is one of the world’s highest-grade scandium deposits and has poten�al to be Australia’s first scandium producer with pla�num, cobalt and nickel credits. New South Wales is a well-established mining district with a number of world-class mining opera�ons. The PSP has excellent infrastructure including access to labour, water, rail, sealed roads and water.

project generates an a�er-tax net present value in real terms (8% discount rate) of USD 166 million (AUD 234 million), post-tax IRR of 29% and payback period of 5.3 years at an average scandium oxide price of USD 1550/kg.

The DFS is based on a processing plant designed to ini�ally produce 20 t/y of scandium oxide at a capital cost of USD 48.1 million (AUD 67.8 million), expandable to 40 t/y of scandium oxide for a very low incremental capital cost of USD 11.7 million (AUD 15.6 million), as market demand for lightweight aluminium-scandium grows.

Stage 1 Annual Production		20 tonnes
Stage 2 Annual Production (from Year 5)		40 tonnes
Life-of-mine for financial model		30 years
Net Present Value (8%), real, after-tax	US$166 million	AU$234 million
Internal Rate of Return, post-tax		29%
Payback Period (undiscounted)		5.3 years
Stage 1 Capital Expenditure	US$48.1 million	AU$67.8 million
Stage 2 Capital Expenditure	US$11.1 million	AU$15.6 million
Total Life-of-Project Capital Expenditure*	US$104.1 million	AU$146.5 million
Life-of-Mine Average Cash Operating Costs#	US$525/kg	AU$739/kg
Life-of-Mine Scandium Oxide Price	US$1,550/kg	AU$2,183/kg
USD to AUD Exchange Rate		0.71

*Includes sustaining capital costs.[#] Mining, processing, general and administra�on costs. Excludes royal�es. ^ Value outcomes subject to securing o�ake agreements and financing for construc�on

laterite hosted deposit is amenable to simple, low-cost, open-cut mining techniques at a low waste to ore ra�o.

Classification	Tonnage (Dry Kt)	Scandium ppm		Nickel (%)	Cobalt %	Scandia (tonnes)*	Cobalt (tonnes)	Nickel (tonnes)
Proven	3,054	575		0.13	0.10	2,696	2,945	4,054
Probable	972	550		0.08	0.07	816	654	767
TOTAL	4,027	570		0.12	0.09	3,512	3,599	4,821

Ore will be processed through a conven�onal high pressure acid leach circuit to produce 99.99% high-purity scandium oxide. The process methodology has been extremely well tested through bench and pilot scale test work to confirm opera�ng and capital es�mates for the DFS.

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ABOUT PLATINA RESOURCES

Pla�na is an Australian-based company focused on returning shareholder value by advancing early-stage metals projects through explora�on, feasibility, permi�ng and into development.

The company has interests in the following projects:

• Challa Gold Project (100% interest) – Pla�na has acquired a 100% interest in the Challa Gold Project located in-between the prolific Mt Magnet and Sandstone gold districts in Western Australia, 500km north-east of Perth.

• Pla�na Scandium Project (100%) – located in central New South Wales, the project is one of the largest and highest-grade scandium deposits in the world, which has the poten�al to become Australia’s first scandium producer with cobalt, pla�num and nickel credits.

• Munni Munni (30% interest) – Situated in the Pilbara region of Western Australia, the project is one of Australia’s most significant Pla�num Group Metal occurrences. Munni Munni also has poten�al for conglomerate hosted gold and is a joint venture with Artemis Resources Limited.

• Investment in Blue Moon Zinc Corpora�on (6 million shares in TSXV listed MOON) – the Blue Moon Zinc Project has a NI43101 resource which is open at depth and along strike and has favorable metallurgy.

• Investment in Major Precious Metals (49 million shares in CSE listed SIZE) – Major is a Canadian junior mining and explora�on company whose flagship Skaergaard Project hosts one of the world’s largest undeveloped gold deposits and one of the largest palladium resources outside of South Africa and Russia.

REFERENCES TO PREVIOUS ASX RELEASES

The informa�on in this report that relates to Explora�on Results were last reported by the company in compliance with the 2012 Edi�on of the JORC Australasian Code for Repor�ng of Explora�on Results, Mineral Resources and Ore Reserves in market releases dated as follows:

• Owendale Measured, Indicated and Inferred Mineral Resource – 16 August 2018; and

• Pla�na Scandium Project Ore Reserve, 13 December 2018.

market announcements referred above and further confirms that all material assump�ons underpinning the explora�on results contained in those market releases con�nue to apply and have not materially changed.

DISCLAIMER

Statements regarding Pla�na Resources’ plans with respect to its mineral proper�es are forward-looking statements. There can be no assurance that Pla�na Resources’ plans for development of its mineral proper�es will proceed as currently expected. There can also be no assurance that Pla�na Resources will be able to confirm the presence of addi�onal mineral deposits, that any mineralisa�on will prove to be economic or that a mine will successfully be developed on any of Pla�na Resources’ mineral proper�es or that Pla�na will achieve any of the valua�on increases shown by the peer group companies.

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SUMMARY OVERVIEW OF COMPARATIVE COMPANIES

Company & Website	Ticker	Status	Description
Imperial Mining Group Company Limited www.imperialmpg.com	TSXV:IPG	Explorer	Explora�on company targe�ng scandium / niobium / tantalum / rare earths at the Crater Lake project in Quebec, Canada. IPG has been undertaking drilling and metallurgical studies but is yet to complete a resource or economic study.
Ardea Resources Limited www.ardearesources.com.au	ASX:ARL	Explorer	Ardea is an Australia-focused mul�-commodity explorer and developer advancing its undeveloped 100%-owned Goongarrie Nickel Project (“Goongarrie” or “GNCP”). Goongarrie forms part of the broader Kalgoorlie Nickel-Cobalt project, and is located 80km north of Kalgoorlie, Western Australia. Goongarrie is a poten�al mul�-genera�onal mine ofering outstanding mul�-commodity exposure which includes nickel, cobalt, scandium, vanadium, chromium, aluminium and gold. Goongarrie has a defned mineral resource and been the subject of many studies including metallurgical tes�ng which has defned the high pressure acid leach process route as most appropriate for a laterite orebody.
Scandium Interna�onal www.scandiuminterna�onal.com	TSE:SCY	Developer	SCY owns a 100% interest in the undeveloped Nyngan Scandium Project, located in New South Wales, Australia, approximately 500 kilometres northwest of Sydney. The Company completed a defni�ve feasibility study in May 2016 and has granted Mining Licences. SCY is seeking o�ake for project funding and development.
Australian Mines Limited www.australianmines.com.au	ASX:AUZ	Explorer / Developer	AUZ is an explorer and future developer of nickel-cobalt-scandium projects in Australia. AUZ has completed a feasibility study on developing the Sconi laterite hosted deposit in Queensland, Australia using the high pressure acid leach process route. AUZ also owns the Flemington laterite deposit in New South Wales which has a small resource.
Niocorp Developments Ltd www.niocorp.com	TSX:NB	Developer	NB owns the undeveloped Elk Creek Superalloy Materials Project in the U.S. which has a defni�ve feasibility study completed and key U.S. federal permits obtained. It is the highest grade niobium project in North America as well as one of the world's largest prospec�ve scandium producers.
Sunrise Metals Limited www.sunriseem.com	ASX:CLQ	Developer	Sunrise is progressing its world-class Sunrise nickel, cobalt, scandium project in New South Wales, u�lising its Clean-iX® technology. The Sunrise Project is one of the largest and most cobalt-rich nickel laterite deposits in the world and is development-ready, with all key permits and approvals in place. Sunrise is also one of the largest undeveloped scandium deposits globally.
Jervois Mining Limited www.jervoismining.com.au	ASX:JRV	Developer	JRV hold a por�olio of nickel-cobalt explora�on and development assets including the undeveloped Nico Young nickel-cobalt laterite project in New South Wales. A feasibility study has been completed. In addi�on, JRV owns the undeveloped Idaho Cobalt project (feasibility study completed) and several explora�on projects in Uganda. More recently, JRV has announced the acquisi�on of an opera�ng Brazilian cobalt refnery.

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