PLN - Platmin Limited - Build-Up Continues

PLN - Platmin Limited - Build-Up Continues                                      
Platmin Limited                                                                 
Incorporated in the accordance with the laws of Canada                          
Registration number: 610178-0                                                   
Share code on TSX: PPN                                                          
Share code on AIM: PPN                                                          
Share code on JSE: PLN                                                          
ISIN: CA72765Y1097                                                              
BUILD-UP CONTINUES - DISPATCHED METAL MORE THAN DOUBLES IN 2010; CONSOLIDATION  
BEGINS; US$135M DEBENTURES CONVERTED; COMMERCIAL PRODUCTION DECLARED:           
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE       
SERVICES                                                                        
March 31, 2011:  TORONTO: Platmin Limited ("Platmin" or "the Company"; TSX/AIM: 
PPN; JSE: PLN) today announced production results from its Pilanesberg Platinum 
Mine ("PPM") and financial results for the twelve months ended December 31,     
2010. This release should be read in conjunction with the Company`s Financial   
Statements, Management Discussion & Analysis and Annual Information Form,       
available at www.platmin.com and filed on www.sedar.com. Platmin changed its    
financial year end from the last day of February in each calendar year to the   
last day of December, effective for the ten months ended December 31, 2009.     
The principal focus of the Company`s activities during 2010 was the operation   
and development of PPM, with mining and processing activities building up       
towards a 4E (3 PGM + Au) metal sales target of the 20 000 oz per month as      
forecast in the bankable feasibility study completed in 2007.  Good progress    
with laying the foundation for sustainable higher future metal output was made  
during the year. A total of 20 961 4E ounces were dispatched and sold for the   
quarter ended December 31, 2010. This is equivalent to annual production of some
84 000 4E ounces.  The 60 067 oz dispatched for FY2010 were more than twice the 
27 865 oz dispatched for FY2009.                                                
Operational high-lights for FY2010 of particular significance for future        
production were:- a full upgrade of the geological model, incorporating up-to-  
date geological information and facilitating improvements to detailed planning; 
debottlenecking the run-of-mine feed arrangements via the installation of three 
vibrating feeders; improvements to metallurgical recoveries from the high-grade 
UG2 reef, from 40% to 65%, and lesser improvements in the Merensky plant;       
concerted and determined action by both the CEO and MD of MCC, our mining       
contractor, to procure higher run times from their fleet, and improved operating
and maintenance procedures in the concentrator.                                 
Commenting on operations, Tom Dale, Platmin CEO, said "This is a big ship. We   
move 4 million tonnes of rock per month. We want to move 5 million tonnes per   
month, in the short term, to expose the reef necessary to create operating      
flexibility. We now have an experienced, motivated crew in place and the ship is
turning. The progress made during 2010 will support consistent improvements to  
metal output in 2011 and 2012. Hence, I expect us to reach monthly operating    
break even (about 12 500 oz) during 2011 and full monthly production of 20 000  
oz during 2012."                                                                
The Company had unrestricted cash and cash equivalents of US$188.596 million at 
December 31, 2010, compared with US$29.375 million at December 31, 2009. The net
increase in cash and cash equivalents is primarily due to the capital raisings  
of US$250.000 million and US$90.000 million completed during May 2010 and       
December 2010 respectively.                                                     
Metal prices continued to recover through the year and Platmin achieved an      
average gross 4E basket price of US$1,405 per ounce (ZAR10,235 per ounce) at an 
average exchange rate for the twelve month period of ZAR7.28=US$1.00. The rise  
in prices during the year was countered somewhat by the strengthening South     
African rand over the period. During the 12 months to December 31, 2010, gross  
revenue generated from metal dispatched and sold of US$91.028 million was off-  
set against operating costs of US$177.689 million, resulting in capitalized net 
operating costs of US$86.661 million.                                           
Reflecting the build-up phase of the Company, Platmin recorded a loss for the   
year ended December 31, 2010, excluding capitalized losses from operations, of  
US$28.516 million before taking into account the US$24.120 million non-cash     
based fair value loss adjustment on the convertible debenture issued in May 2010
and the foreign exchange loss of US$12.806 million due to the South African rand
strengthening against the US dollar and the subsequent revaluation of cash held 
in a currency other than the Company`s functional currency. In total, the loss  
for the year ended December 31, 2010 was US$65.442 million, or US$0.09 per      
share, compared with a net loss of US$11.115 million or a loss of US$0.02 per   
share, for the ten months ended December 31, 2009.                              
The loss reported for the year, excludes net operating costs at PPM that were   
capitalized, of US$86.661 million (ZAR571.203 million), compared to US$59.574   
million (ZAR438.361 million) for the ten months ended December 31, 2009. As at  
December 31, 2010, the total project capital expenditure for the development of 
PPM, including plant capital expenditure, capitalised pre-production costs, and 
offsetting revenue from metal sales during the pre-production phase, amounted to
US$562.881 million (ZAR3.709 billion). With effect from January 1, 2011, PPM    
declared commercial production which will result in all revenue, mine operating 
costs and amortization of the total capitalized cost over the remaining life of 
mine, being reported through the Statement of Income. The Mphahlele, Grootboom  
and Loskop projects continue on a reduced work program, and in the short term,  
Platmin will commit sufficient expenditure to these projects, funded from       
existing cash on hand, to ensure that the new order prospecting and mining      
rights are preserved.                                                           
Significant developments during the quarter included:                           
the resumption of PGM concentrate dispatches to the smelter at the Northam      
Platinum Limited                                                                
("Northam") Zondereinde mine on October 25, 2010, following the conclusion of a 
six-week strike at the Northam mine on October 18, 2010.                        
On December 17, 2010, the Company concluded the placement of 98,901,099 new     
common shares at a price of US$0.91 (CAD$0.93) per common share for total gross 
proceeds of US$90.000 million; and                                              
On December 22, 2010, the holders of US$135.000 million of convertible          
debentures that were issued on May 13, 2010, requested and the Company accepted 
an extension of the maturity date of the bonds from December 31, 2010 to        
February 28, 2011.                                                              
Events subsequent to December 31, 2010                                          
On February 18, 2011, the company announced that agreements have been executed  
with the holders of the $135.000 million convertible debentures to extend the   
maturity date from February 28, 2011 to March, 31, 2011 and to reduce the       
conversion price from US$1.215 to US$0.84. Upon conversion this would result in 
a further 160,714,287 shares being issued.                                      
On February 28, 2011, the Company repaid in full the Pallinghurst Resources     
Limited promissory note of US$26.000 million plus accrued interest and costs.   
On March 23, 2011, Platmin announced the acquisition of an incremental 5.99     
million 4E (3PGE+Au) PGM inferred resource ounces (42.57 million tonnes at a    
grade of 4.38g/t) contained within the western portion of the Sedibelo PGM      
Project concession ("Sedibelo West"), which is contiguous with and down-dip of  
the eastern boundary of PPM, from the Bakgatla-Ba-Kgafela Tribe ("Bakgatla") and
Itereleng Bakgatla Mineral Resources (Pty) Limited ("IBMR"), for an aggregate   
consideration of US$75.000 million in cash (equivalent to US$12.50 per  4E PGM  
inferred resource ounce) to be funded from existing cash resources. In addition 
to the Sedibelo West purchase, Platmin has also acquired for a total            
consideration of $12.034 million, an effective 50% interest in an infrastructure
vehicle which acquired the infrastructure rights and assets for power and water 
for this project previously owned by Barrick Platinum (South Africa) (Pty) Ltd. 
This acquisition has been completed in partnership with the Bakgatla and Ivy    
Lane Capital Limited (a Pallinghurst-related entity) which will jointly own the 
other 50%.                                                                      
On March 23, 2011, Platmin formally announced that Kgosi Molefe John Pilane had 
been invited to join the board of Platmin. He is the appointed traditional      
leader of the Bakgatla community.                                               
March 31, 2011, the Company announced that all the conditions precedent for the 
conversion of the $135.000 million in convertible debentures had been fulfilled 
and that conversion had taken place at US$0.84 per share.  A total of           
160,714,287 new shares are to be issued resulting in a total of 910,395,054     
shares in issue.                                                                
Mr Wayne Koonin the Chief Financial Officer of the Company has resigned with    
effect from May 31, 2011, to take up another senior financial role in the mining
industry. The replacement for Mr Koonin has been identified and is set to join  
the company shortly, providing sufficient time for a seamless handover period.  
An announcement to this effect will be made shortly.                            
Commenting on the year, Tom Dale, Platmin CEO highlighted the progress made     
during 2010 at PPM. I am delighted by our acquisition of Sedibelo West which    
showcases the calibre of our partnership with the Bakgatla-Ba-Kgafela. These    
additional PGM resource ounces will:- extend the life of PPM`s Tuschenkomst pit;
create operating flexibility, specifically in the north pit, and give us direct 
access to sulphide ores with their higher metallurgical recoveries.             
Commercial production has been declared from January 1, 2011 and continued rock-
solid support from our shareholder base underpins our efforts to create a       
significant, quality PGM-producer on the western limb of the Bushveld Complex." 
Commenting on Mr Koonin`s resignation, Mr Dale said that "a man of Wayne`s      
technical financial ability and work ethic is a valuable asset in any business  
and he played a key role during the past 2 years since Pallinghurst invested    
into Platmin. On behalf of the Board, we thank him for his contribution and wish
him well in his new position."                                                  
Platmin`s chairman Brian Gilbertson said: "I thank Wayne Koonin for his hard    
work and contribution over the past two years and wish him well in his future   
endeavours".                                                                    
About Platmin                                                                   
Platmin`s primary asset is the Pilanesberg Platinum Mine, which is building up  
to full production from the Tuschenkomst pit. The focus of the Company is on    
achieving the metal production forecasts predicted in the bankable feasibility  
study for the project and participating in the value creation of developing the 
western limb of the Bushveld Complex. Platmin also hold interests in projects on
the eastern limb.                                                               
National Instrument 43-101 Disclosures                                          
Under National Instrument 43-101 ("NI 43-101") of the Canadian Securities       
Administrators, the Qualified Person for the Sedibelo West property is Mr. Terry
Holohan, a Qualified Person as defined by NI 43-101. Mr. Holohan is not         
independent of Platmin for purposes of NI 43-101. He has reviewed and verified  
the contents of this press release. The effective date of the mineral resources 
disclosed in this press release is March 31, 2011. A cut-off grade of 0.5 g/t 4E
was used in the estimation. Individual metal grades within the resource are 2.63
g/t Pt, 1.29 g/t Pd, 0.33 g/t Rh, and 0.13 g/t Au. The method used for          
estimation was ordinary co-kriging.                                             
AIM Disclosures                                                                 
Application has been made to the London Stock Exchange for the 160,714,287 new  
common shares to be issued which will rank pari passu with existing shares of   
the Company.  This admission is expected to become effective and dealings to    
commence in the shares on 6 April 2011. In accordance with Disclosure and       
Transparency Rule 5.6.1, following admission of the new shares, the total number
of voting rights in Platmin will be 910,395,054 . The above figure may be used  
by shareholders as the denominator for the calculations by which they will      
determine if they are required to notify their interest in, or a change to their
interest in, Platmin under the FSA`s Disclosure and Transparency Rules.         
For further information:                                                        
Charmane Russell Russell & Associates+27 11 880 3924                            
+27 82 372 5816                                                                 
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS                            
This market release contains ``forward-looking information`` which may include, 
but is not limited to, statements with respect to the future financial and      
operating performance of Platmin Limited (the "Company" or "Platmin"), its      
subsidiaries and affiliated companies, and its mineral projects, the future     
price of platinum or other Platinum Group Elements ("PGEs"), PGE production     
levels, mining rates, the future price of other base metals, future exchange    
rates, the estimation of mineral resources and reserves, the realization of     
mineral resource estimates or their conversion into reserves, costs and future  
costs of production, capital and exploration expenditures, including remaining  
project development expenditure at the Pilanesberg Platinum Mine ("PPM"), costs 
and timing of the development of new deposits, costs and timing of the          
development of new mines, costs and timing of future exploration, requirements  
for additional capital, government regulation of mining operations and          
exploration operations, timing and receipt of approvals, licenses, and          
conversions under South African mineral legislation, environmental risks, title 
disputes or claims, limitations of insurance coverage and the timing and outcome
of regulatory matters. Often, but not always, forward-looking statements can be 
identified by the use of words such as ``plans``, ``expects``, ``is expected``, 
``budget``, ``scheduled``, ``estimates``, ``forecasts``, ``intends``,           
``anticipates``, "targeted" or ``believes`` or variations (including negative   
variations) of such words and phrases, or state that certain actions, events or 
results ``may``, ``could``, ``would``, ``might`` or ``will`` be taken, occur or 
be achieved.                                                                    
Forward-looking statements in this market release, amongst others, forecast     
production and sales reaching a monthly rate of 12 500 4E ounces during the 2011
year and 20 000 4E ounces during the 2012 year; recovery rates and grade;       
targets, estimates and assumptions in respect of platinum and other PGM prices  
and production; allocation of funds for current commitments; and the timing and 
completion of definitive feasibility work at the Mphahlele, Grootboom and Loskop
Projects.                                                                       
Such forward-looking statements are based on a number of material factors and   
assumptions, including, that contracted parties provide goods and/or services on
the agreed timeframes, that budgets and production forecasts are accurate, that 
equipment necessary for construction and development is available as scheduled  
and does not incur unforeseen break downs, that no labour shortages or delays   
are incurred, that plant and equipment functions as specified, that geological  
or financial parameters do not necessitate future mine plan changes, that no    
unusual geological or technical problems occur, and that grades and recovery    
rates are as anticipated in mine planning.                                      
Forward-looking statements involve known and unknown risks, uncertainties and   
other factors which may cause the actual results, performance or achievements of
Platmin and/or its subsidiaries and/or its affiliated companies to be materially
different from any future results, performance or achievements expressed or     
implied by the forward-looking statements. Such factors include, among others,  
general business, economic, competitive, political and social uncertainties; the
actual results of current exploration and mining activities; development and    
operational risks; title risks; regulatory risks; conclusions of economic       
evaluations and studies; fluctuations in the value of the United States dollar  
relative to the Canadian dollar or South African rand; changes in project       
parameters as plans continue to be refined; future prices of platinum or other  
PGEs; possible variations of ore grade or recovery rates (including the         
existence of potholes, faults and other geological conditions that may affect   
the existence or recovery of resources and reserves); failure of plant,         
equipment or processes to operate as anticipated; accidents, labour disputes,   
industrial unrest and strikes and other risks of the mining industry; political 
instability, insurrection or war; the effect of HIV/AIDS on labour force        
availability and turnover; delays in obtaining governmental approvals or        
financing or in the completion of development or construction activities, as    
well as those factors communicated in the section entitled ``Risk Factors`` of  
Platmin`s current Annual Information Form ("AIF") and its final short form      
prospectus dated May 5, 2010, which can both be viewed at www.sedar.com.        
Although Platmin has attempted to identify important factors that could cause   
actual actions, events or results to differ materially from those described in  
forward-looking statements, there may be other factors that cause actions,      
events or results to differ from those anticipated, estimated or intended.      
Forward-looking statements contained herein are made as of the date of the MD&A 
and Platmin disclaims any obligation to update any forward-looking statements,  
whether as a result of new information, future events or results or otherwise.  
There can be no assurance that forward-looking statements will prove to be      
accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue     
reliance on forward-looking statements due to the inherent uncertainty therein. 
Investment Bank and Sponsor:                                                    
Investec Bank Limited                                                           
31 March 2011                                                                   
Date: 31/03/2011 15:02:01 Supplied by www.sharenet.co.za                     
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