Platinum Group Metals (PLG)

[DevilDolphin]

**NEWS** EXPANDED DRILLING WATERBERG January 22, 2013

(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM-TSX; PLG-NYSE MKT) (“Platinum Group” or the “Company”) reports that the South African Department of Mineral Resources has granted a 1,600 hectare (16 square kilometer) expansion of the prospecting permit covering the Waterberg discovery on the North Limb of the Bushveld Complex allowing anticipated drilling on the up dip portion of the Waterberg deposit to commence.

Newly discovered in 2012, the Waterberg deposit is believed to continue up dip eastward towards surface, based on structural modeling, geophysics and satellite imagery. Previous drilling at Waterberg, on the boundary with the new permit, intersected the “T” layers at approximately 130 meters from surface and the “F” layers at approximately 300 meters deep. Ten drill rigs are now being moved eastward onto the new permit. Given the expected shallow nature of the deposit heading up dip, the Company expects that multiple boreholes will be completed quickly.

The Waterberg deposit has an initial resource of 6.6 million ounces 4E, (platinum, palladium, rhodium and gold, see details below). A resource update is in progress and is expected in Q1 of calendar 2013.

Waterberg was named “Global Exploration Discovery of the Year” at the prestigious Mining Journal Outstanding Achievement Awards in December 2012, part of the Mines and Money conference in London.

R. Michael Jones, President and CEO of Platinum Group Metals, said “The expansion of the Waterberg property by grant of this new permit is very timely. Our equity financing for $180 million, which closed on January 4, 2013, included plans for a $10.0 million exploration program for the Waterberg Joint Venture. We are now able to focus a considerable drilling effort with 10 rigs. If the efforts on the new permit are successful on extending the deposit near to surface, additional drill rigs will be added. We are very excited about the potential at Waterberg”.

The Waterberg deposit is in a newly discovered part of the Bushveld Complex. The deposit is unusual in that it has thick layers coming near to surface, potentially amenable to mechanized mining. Recent announcements of mine closures based on declining Merensky layer availability, labour cost increases and depths are juxtaposed against the characteristics of the new open Waterberg discovery.

Platinum Group Metals has a 49.9% effective interest in the Waterberg Joint Venture and Japan Oil, Gas and Metals National Corporation (“JOGMEC”) has a 37% interest with the effective balance held by a BEE company. Platinum Group holds an effective 87% interest in further pending Prospecting Permit Applications over ground immediately to the north of the joint venture prospecting permits. Recent drill results include an intercept on the “F” layer of 16.5 meters grading 4.4 g/t 3E (1.32 g/t Pt, 2.87 g/t Pd and 0.21 g/t Au) at the northern joint venture boundary. The on strike extension prospecting permit applications are expected to be granted shortly. Results from the pending resource calculation update on the joint venture ground, combined with the current drilling, will allow for the planning of an additional exploration program northward along strike on the 87% owned permits.

http://platinumgroupmetals.net/news_releases/index.php?&content_id=370