Platinum Group Metals Ltd.: Western Bushveld Joint Venture Update

Market Wire, January, 2008

Platinum Group Metals Ltd. (TSX: PTM)(AMEX: PLG) ("Platinum Group Metals") announces a progress update on its Western Bushveld Joint Venture ("WBJV") platinum projects in South Africa.

Refinements to the mine design have been recommended January 18, 2008 by the combined Project 1 engineering team consisting of Turnberry Projects and Wardrop Engineering which improves the prefeasibility study in the following areas:

1. Increasing early ore production rates

2. Optimizing capital requirements

3. Deferring capital expenditures

4. Reducing electrical consumption in the years 2010 to 2012 and over the life of the project.

"Major mine development in South Africa is facing increased risks of a shortage of available grid power in the next five years" said R. Michael Jones, President of Platinum Group Metals Ltd. "However, the current mine design provides a significant strategic advantage and our engineering team is working to optimize the proposed design and respond to concerns regarding power supply. We have shallow resources that can be accessed quickly with lower capital costs and reduced electrical demands when compared to deep ounces".

Project Timetable

The feasibility study work will continue to calendar Q2 2008 and the milestone for initial production, with appropriate permits is maintained at 2010.

The commencement of the public consultation process for the mining permits applications for the WBJV Project 1 has been agreed by the partners Platinum Group Metals Ltd, Wesizwe Platinum (WES-JSE) and Anglo Platinum (AMS-JSE). The feasibility and engineering work to optimize the project will continue during the consultation process and take into account the public interaction to achieve the best value project for all of the stakeholders including the WBJV partners, the local community and local and state government interests.

Increasing Early Production

A focus of the continued engineering work will be on maximizing early production utilizing decline ramp access and mechanized equipment. The target production rate of approximately 250,000 ounces of 4E (platinum, palladium, rhodium and gold) as set out in the pre-feasibility study remains a steady state target for the feasibility work and the decline development will target this rate.

Optimizing Capital Requirements

The current focus of the feasibility work is to reduce the time to steady state production with less capital compared to the initial vertical shaft option in the pre-feasibility study. Vertical shaft costs have increased along with many other costs in the mining industry and declines with a modified development plan may offer an opportunity to reduce initial capital.

Deferring Capital Expenditures

A vertical shaft is part of the current mine plan but this expenditure may be able to be deferred in the current study.

Reduction of Electrical Power Requirements

In planning meetings with South African power utility Eskom the utility indicated that an allocation of 2MW for project construction was possible. Potential for decreased grid electrical power availability from Eskom for new projects up to 2012 has put an increased strategic focus on maximizing the value of shallow platinum ounces which require relatively less power than deeper mines, and minimizing power requirements for the WBJV Project 1 start up. Diesel power generation in early years is being considered to maintain the project schedule, with potentially increased capital and operating cost. Current estimates indicate that diesel electrical generation to compensate for possible shortfalls from Eskom should be planned at moderate levels in 2011 and increasing as full electrical power is needed in late 2012.

The near surface, WBJV Project 1 decline accessible ounces of platinum group metals that can be produced without the electrical demands of hoisting, deep ventilation or refrigeration should have a strategic competitive advantage. The capital and operating costs associated with parallel or standby diesel generating capacity will be fully considered as part of the bankable feasibility study. Should Eskom be able to supply additional power during this period the need for diesel generation may be reduced or eliminated.

Any cost increases would only be relevant during the period grid power was not available. Merensky tonnages for WBJV Project 1 available for mining are not impacted by current estimates of the temporary increase in cut-off grade and there is no loss of resource tonnage. The UG-2 mine plan is not impacted provided grid power is available by late 2012.

Any potential changes in the power availability forecasts and the development plans across the platinum industry will be closely monitored by the Company as it considers its strategic alternatives as operator of the WBJV.

Cautionary Note to U.S. Investors: The U.S. Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "Measured," "Indicated," and "Inferred," "resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC.