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FiledpursuanttoGeneralInstructionII.L.

ofFormF-10;FileNo.333-213985

PROSPECTUSSUPPLEMENTToaShortFormBaseShelfProspectusdatedOctober14,2016

PLATINUMGROUPMETALSLTD.

US$25,002,500

17,125,000CommonShares

PlatinumGroup Metals Ltd. (the " Company" or "PTM")isoffering (the "Offering") 17,125,000commonshares (the "OfferedShares) at a price ofUS$1.46 per Offered Share (the "Offering Price"). Unless the context otherwise requires, all references to "Offered Shares", include anyOver-AllotmentShares(asdefinedherein).

TheoutstandingcommonsharesoftheCompany(the"CommonShares")arelistedfortradingontheTorontoStockExchange(the"TSX")underthesymbol"PTM" and on the NYSE MKT, LLC (the "NYSE MKT ") under the symbol "PLG". On January 20, 2017, the last trading day prior to the date of the publicannouncementoftheOffering,theclosingpriceoftheCommonSharesontheTSXwasCAN$2.11andtheclosingpriceoftheCommonSharesontheNYSEMKTwasUS$1.59.PTMhasappliedtolisttheOfferedShares,includinganyOver-AllotmentShares,ontheTSXandNYSEMKT.ListingofthesesecuritieswillbesubjecttoPTMfulfillingallthelistingrequirementsoftheTSXandNYSEMKT.

InvestingintheOfferedSharesinvolvessignificantrisks.Seethe"RiskFactors"sectionsinthisprospectussupplement(this"ProspectusSupplement"),theaccompanyingshortformbaseshelfprospectus(the"Prospectus"),andthedocumentsincorporatedbyreferencehereinandtherein.

Price:US$1.46perOfferedShare

Pursuanttoanunderwritingagreement(the"UnderwritingAgreement")datedasofJanuary24,2017amongtheCompany,andBMONesbittBurnsInc.andMacquarieCapitalMarketsCanadaLtd.(collectively,the"Underwriters"),theCompanyhasgrantedtheUnderwritersanoption(the"Over-AllotmentOption")topurchaseuptoanadditional2,568,750CommonShares(the"Over-AllotmentShares")atapriceofUS$1.46perOver-AllotmentSharetocoverover-allotments,ifany,andformarketstabilizationpurposes.

ThisOfferingismadebyaCanadianissuerthatispermitted,underamultijurisdictionaldisclosuresystemadoptedbytheUnitedStatesandCanada,topreparethisProspectusSupplementandtheProspectusinaccordancewithCanadiandisclosurerequirements.Prospectiveinvestorsshouldbeawarethatsuchrequirements are different fromthose of theUnited States. Financial statements incorporated by reference herein have been prepared in accordance withInternational Financial ReportingStandardsas issuedbytheInternational AccountingStandardsBoard, andaresubject toCanadianauditingandauditorindependencestandards,andthusmaynotbecomparabletofinancialstatementsofUnitedStatescompanies.

ProspectiveinvestorsshouldbeawarethattheacquisitionofOfferedSharesmayhavetaxconsequencesbothintheUnitedStatesandinCanada.Suchconsequencesforinvestorswhoareresidentin,orcitizensof,theUnitedStatesmaynotbefullydescribedherein.

TheenforcementbyinvestorsofcivilliabilitiesunderUnitedStatesfederalsecuritieslawsmaybeaffectedadverselybythefactthattheCompanyisincorporatedunderthelawsofBritishColumbia,Canada,thatamajorityoftheCompany'sdirectorsandofficers,andsomeoralloftheUnderwritersnamedinthisProspectusSupplementandtheexpertsnamedinthisProspectusSupplement,areresidentsofCanadaorotherwiseresideoutsidetheUnitedStates,andallorasubstantialportionoftheirassets,andasubstantialportionoftheCompany'sassets,arelocatedoutsidetheUnitedStates.

NeithertheSecuritiesandExchangeCommission(the"SEC")noranystatesecuritiesregulatorhasapprovedordisapprovedtheOfferedSharesordeterminedifthisProspectusSupplementandtheProspectusaretruthfulorcomplete.Anyrepresentationtothecontraryisacriminaloffense.

DeliveryoftheOfferedSharesthroughthefacilitiesofCDSClearingandDepositoryServicesInc.("CDS")isexpectedtooccuronoraboutJanuary31,2017orsuch other date as may be agreed between the Company and the Underwriters, but in no event later than February 24, 2017 (the "Closing Date"). No certificatesevidencingtheOfferedShareswillbeissuedtopurchasers.PurchaserswillreceiveonlyacustomerconfirmationfromtheUnderwritersorotherregistereddealerwhois

PerOfferedShare TotalPricetothePublic US$1.46 US$25,002,500UnderwritingCommission(1) US$0.0876 US$1,500,150ProceedstotheCompany(BeforeExpenses) US$1.3724 US$23,502,350

Note:

(1) Pleaseseethesectionentitled"PlanofDistribution"foracompletedescriptionofthecompensationpayabletotheUnderwriters, includingafeerepresenting6.0%oftheaggregategrossproceedsoftheOffering(the"UnderwritingCommission").

aCDSparticipant(a"CDSParticipant")andfromorthroughwhomabeneficialinterestintheOfferedSharesispurchased.

SoleBook-RunningManager

BMOCapitalMarkets

Co-Manager

MacquarieCapitalMarketsCanadaLtd.

ThedateofthisProspectusSupplementisJanuary24,2017.

TABLEOFCONTENTS

PROSPECTUSSUPPLEMENT

iii

PageIMPORTANTNOTICEABOUTINFORMATIONINTHISPROSPECTUSSUPPLEMENT S-1CAUTIONARYNOTEREGARDINGFORWARDLOOKINGSTATEMENTS S-1CAUTIONARYNOTETOUNITEDSTATESINVESTORS S-4RESERVEANDRESOURCEDISCLOSURE S-5DESCRIPTIONOFEXISTINGINDEBTEDNESS S-5DOCUMENTSINCORPORATEDBYREFERENCE S-6ADDITIONALINFORMATION S-7DOCUMENTSFILEDASPARTOFTHEREGISTRATIONSTATEMENT S-8ENFORCEABILITYOFCIVILLIABILITIES S-8CURRENCYPRESENTATIONANDEXCHANGERATEINFORMATION S-9NOTICEREGARDINGNON-IFRSMEASURES S-10PROSPECTUSSUPPLEMENTSUMMARY S-11THEOFFERING S-12RISKFACTORS S-13CONSOLIDATEDCAPITALIZATION S-17USEOFPROCEEDS S-17PRIORSALES S-19PRICERANGEANDTRADINGVOLUME S-20CERTAINCANADIANFEDERALINCOMETAXCONSIDERATIONS S-20CERTAINUNITEDSTATESFEDERALINCOMETAXCONSIDERATIONS S-24DESCRIPTIONOFTHESECURITIESBEINGDISTRIBUTED S-29PLANOFDISTRIBUTION S-29LEGALMATTERS S-33INTERESTOFEXPERTS S-34INDEPENDENTAUDITOR S-35TRANSFERAGENTANDREGISTRAR S-35

PROSPECTUS

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PageCAUTIONARYNOTETOUNITEDSTATESINVESTORS 1RESERVEANDRESOURCEDISCLOSURE 1CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS 2CURRENCYPRESENTATIONANDEXCHANGERATEINFORMATION 4NOTICEREGARDINGNON-IFRSMEASURES 6DOCUMENTSINCORPORATEDBYREFERENCE 6ADDITIONALINFORMATION 8DOCUMENTSFILEDASPARTOFTHEREGISTRATIONSTATEMENT 9BUSINESSOFTHECOMPANY 10RISKFACTORS 20USEOFPROCEEDS 45EARNINGSCOVERAGERATIO 45CONSOLIDATEDCAPITALIZATION 45DESCRIPTIONOFEXISTINGINDEBTEDNESS 45PLANOFDISTRIBUTION 45PRIORSALES 46PRICERANGEANDTRADINGVOLUME 47DIVIDENDPOLICY 48DESCRIPTIONOFCOMMONSHARES 48DESCRIPTIONOFDEBTSECURITIES 48DESCRIPTIONOFWARRANTS 54DESCRIPTIONOFSUBSCRIPTIONRECEIPTS 55DESCRIPTIONOFUNITS 56CERTAINFEDERALINCOMETAXCONSIDERATIONS 56LEGALMATTERS 56TRANSFERAGENTANDREGISTRAR 56INTERESTOFEXPERTS 56INDEPENDENTAUDITOR 57ENFORCEABILITYOFCIVILLIABILITIES 57

IMPORTANTNOTICEABOUTINFORMATIONINTHISPROSPECTUSSUPPLEMENT

Thisdocumentisintwoparts.ThefirstpartisthisProspectusSupplement,whichdescribesthetermsoftheOfferedSharesbeing offeredandalsoaddstoandupdatesinformationcontainedintheProspectusandthedocumentsincorporatedbyreferencetherein.Thesecondpart,theProspectus,givesmoregeneralinformation,someof which may not apply to the Offered Shares being offered under this Prospectus Supplement. This Prospectus Supplement is deemed to be incorporated byreferenceintotheProspectussolelyforthepurposeoftheOfferingconstitutedbythisProspectusSupplement.Otherdocumentsarealsoincorporated,oraredeemedtobeincorporatedbyreference,intotheProspectusandreferenceshouldbemadetotheProspectusforfullparticularsthereof.

InvestorsshouldrelyonlyontheinformationcontainedinorincorporatedbyreferenceinthisProspectusSupplementandtheProspectusandontheotherinformationincludedintheregistrationstatementonFormF-10ofwhichthisProspectusSupplementandtheProspectusformapart(the"RegistrationStatement"). TheCompanyhasnot authorizedanyoneto provideinvestors withdifferent information. TheCompanyis not makinganoffer of the OfferedSharesinanyjurisdictionwheresuchofferisnotpermitted.AninvestorshouldassumethattheinformationappearinginthisProspectusSupplementortheProspectusisaccurateonlyasofthedateonthefrontofthosedocumentsandthatinformationcontainedinanydocumentincorporatedbyreferencehereinortherein is accurate only as of the date of that document unless specified otherwise. The Company's business, financial condition, results of operations andprospectsmayhavechangedsincethosedates.

MarketdataandcertainindustryforecastsusedinthisProspectusSupplementandtheProspectusandthedocumentsincorporatedbyreferencehereinandthereinwereobtainedfrommarketresearch,publiclyavailableinformationandindustrypublications.TheCompanybelievesthatthesesourcesaregenerallyreliable, buttheaccuracyandcompletenessofthisinformationisnotguaranteed.TheCompanyhasnotindependentlyverifiedsuchinformation,anditdoesnotmakeanyrepresentationastotheaccuracyofsuchinformation.

TheCompany'sannualconsolidatedfinancialstatementsthatareincorporatedbyreferenceintothisProspectusSupplementandtheProspectushavebeenpreparedinaccordancewithInternationalFinancialReportingStandards,asissuedbytheInternationalAccountingStandardsBoard("IFRS").

Unlessotherwiseindicated,allinformationinthisProspectusSupplementassumesnoexerciseoftheOver-AllotmentOption.

Unlessthecontextotherwiserequires,referencesinthisProspectusSupplementtothe"Company"includePlatinumGroupMetalsLtd.andeachofitssubsidiaries.

CAUTIONARYNOTEREGARDINGFORWARDLOOKINGSTATEMENTS

This Prospectus Supplement, the Prospectus and the documents incorporated by reference herein and therein, contain "forward looking statements"withinthemeaningoftheUnitedStatesPrivateSecuritiesLitigationReformActof1995and"forwardlookinginformation"withinthemeaningofapplicableCanadiansecuritieslegislation(collectively,"ForwardLookingStatements").Allstatements,otherthanstatementsofhistoricalfact,thataddressactivities,eventsordevelopmentsthattheCompanybelieves,expectsoranticipateswill,may,couldormightoccurinthefutureareForwardLookingStatements.Thewords"expect","anticipate","estimate","may","could","might","will","would","should","intend","believe","target","budget","plan","strategy","goals","objectives","projection"orthenegativeofanyofthesewordsandsimilarexpressionsareintendedtoidentifyForwardLookingStatements,althoughthesewordsmaynotbepresentinallForwardLookingStatements.ForwardLookingStatementsincludedorincorporatedbyreferenceinthisProspectusSupplement,theProspectusandthedocumentsincorporatedbyreferencehereinandthereininclude,withoutlimitation,statementswithrespectto:

• productionestimatesandassumptions,includingproductionrate,gradepertonneandsmelterrecovery;

• productiontiming;

• capitalraisingactivities,compliancewithtermsofindebtednessandtheadequacyofcapital;

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• revenue,cashflowandcostestimatesandassumptions;

• statementswithrespecttofutureeventsorfutureperformance;

• anticipatedexploration,development,construction,production,permittingandotheractivitiesontheCompany'sproperties;

• theadequacyofcapital,financingneedsandtheavailabilityofandpotentialforreceivingfurthercommitments;

• projecteconomics;

• futuremetalpricesandexchangerates;

• mineralreserveandmineralresourceestimates;and

• potentialchangesintheownershipstructuresoftheCompany'sprojects.

ForwardLookingStatementsreflectthecurrentexpectationsorbeliefsoftheCompanybasedoninformationcurrentlyavailabletotheCompany.ForwardLookingStatementsinrespectofcapitalcosts,operatingcosts,productionrate,gradepertonneandsmelterrecoveryarebasedupontheestimatesinthetechnicalreportsreferredtointhisProspectusSupplement,theProspectusandinthedocumentsincorporatedbyreferencehereinandthereinandongoingcostestimationwork,andtheForwardLookingStatementsinrespectofmetalpricesandexchangeratesarebaseduponthethreeyeartrailingaveragepricesandtheassumptionscontainedinsuchtechnicalreportsandongoingestimates.

ForwardLookingStatementsaresubjecttoanumberofrisksanduncertaintiesthatmaycausetheactualeventsorresultstodiffermateriallyfromthosediscussedinthe Forward LookingStatements, and even if events or results discussed in the Forward Looking Statements are realized or substantially realized, there can be noassurancethattheywillhavetheexpectedconsequencesto,oreffectson,theCompany.Factorsthatcouldcauseactualresultsoreventstodiffermateriallyfromcurrentexpectationsinclude,amongotherthings:

• uncertaintyofproduction,developmentplansandcostestimatesfortheMaseveplatinumandpalladiummine(the"MaseveMine"),formerlyknownasProject1("Project1")ofwhatwasformerlytheWesternBushveldJointVenture;

• additional financingrequirementstoachievetheCompany'sbusinessobjectivesandremainincompliancewiththecovenantssetforthintheProject1WorkingCapitalFacilities(asdefinedherein);

• theCompany'shistoryoflosses;

• theinability of theCompanytogenerate sufficient cashflowtomakepayment onits indebtedness under theProject 1WorkingCapital Facilities andcomplywiththerestrictionsimposedbysuchindebtedness;

• the Project 1 WorkingCapital Facilities are securedandthe Companyhas pledgedits shares of PlatinumGroupMetals (RSA)ProprietaryLimited("PTMRSA")totheLenders(asdefinedherein)undertheProject1WorkingCapitalFacilitieswhichpotentiallycouldresultinthelossoftheCompany'sinterestinPTMRSA,andthereforeitsinterestsintheMaseveMine,Project3(asdefinedherein)andtheWaterbergProject(asdefinedherein)intheeventofadefaultundereitherfacility;

• theCompany'snegativecashflow;

• theCompany'sabilitytocontinueasagoingconcern;

• delaysintheproductionramp-upoftheMaseveMinewhichcouldresultinadefaultundertheProject1WorkingCapitalFacilities;

• therecanbenoassurancethatundergrounddevelopmentandproductionramp-upattheMaseveMinewillmeetitsproductionramp-uptimelineorthatproductionattheMaseveMinewillmeettheCompany'sexpectations;

• delaysin,orinabilitytoachieve,plannedcommercialproduction;

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• completionofafeasibilitystudyfortheWaterbergProject,whichissubjecttoresourceupgradeandeconomicanalysisrequirements;

• discrepancies between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs,betweenactualandestimatedmetallurgicalrecoveriesandbetweenestimatedandactualproduction;

• fluctuationsintherelativevaluesoftheU.S.dollar,theRandandtheCanadiandollar;

• volatilityinmetalsprices;

• thefailureoftheCompanyoritsjointventurepartnerstofundtheirpro-ratashareoffundingobligationsfortheMaseveMineortheWaterbergProject;

• theinabilityoftheCompanytofindanadditionalandsuitablejointventurepartnerfortheMaseveMineandProject3withinsuchtimeframeasmaybedetermined by the South African Department of Mineral Resources (the "DMR ") in accordance with the South African Mineral and PetroleumResourcesDevelopmentAct28of2002;

• anydisputesordisagreementswiththeCompany'sjointventurepartners;

• theabilityoftheCompanytoretainitskeymanagementemployeesandskilledandexperiencedpersonnel;

• contractorperformanceanddeliveryofservices,changesincontractorsortheirscopeofworkoranydisputeswithcontractors;

• conflictsofinterest;

• any designation of the Company as a "passive foreign investment company" and potential adverse U.S. federal income tax consequences forU.S.shareholders;

• litigationorotherlegaloradministrativeproceedingsbroughtagainsttheCompany;

• actualorallegedbreachesofgovernanceprocessesorinstancesoffraud,briberyorcorruption;

• exploration, development and mining risks and the inherently dangerous nature of the mining industry, including environmental hazards, industrialaccidents,unusualorunexpectedformations,safetystoppages(whethervoluntaryorregulatory),pressures,minecollapses,caveinsorfloodingandtheriskofinadequateinsuranceorinabilitytoobtaininsurancetocovertheserisksandotherrisksanduncertainties;

• propertyandmineraltitlerisksincludingdefectivetitletomineralclaimsorproperty;

• changesinnationalandlocalgovernmentlegislation,taxation,controls,regulationsandpoliticaloreconomicdevelopmentsinCanada,SouthAfricaorothercountriesinwhichtheCompanydoesormaycarryoutbusinessinthefuture;

• equipmentshortagesandtheabilityoftheCompanytoacquirethenecessaryaccessrightsandinfrastructureforitsmineralproperties;

• environmentalregulationsandtheabilitytoobtainandmaintainnecessarypermits,includingenvironmentalauthorizationsandwateruselicenses;

• extremecompetitioninthemineralexplorationindustry;

• delaysinobtaining,orafailuretoobtain,permitsnecessaryforcurrentorfutureoperationsorfailurestocomplywiththetermsofsuchpermits;

• thefailuretomaintainorincreaseequityparticipationbyhistoricallydisadvantagedSouthAfricansintheCompany'sprospectingandminingoperationsandtootherwisecomplywiththeAmendedBroad-BasedSocio-EconomicEmpowermentCharterfortheSouthAfricanMiningIndustry;

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• certainpotentialadverseCanadiantaxconsequencesforforeign-controlledCanadiancompaniesthatacquirecommonsharesoftheCompany;

• risksof doingbusinessinSouthAfrica, includingbut not limitedto, labour, economicandpolitical instability andpotential changestoandfailurestocomplywithlegislation;and

• theotherrisksdisclosedundertheheading"RiskFactors"intheProspectus,inthisProspectusSupplementandintheAIF(asdefinedherein),aswellasinthedocumentsincorporatedbyreferencehereinandtherein.

Thesefactorsshouldbeconsideredcarefully,andinvestorsshouldnotplaceunduerelianceontheForwardLookingStatements.Inaddition,althoughtheCompanyhasattemptedtoidentifyimportantfactorsthatcouldcauseactualactionsorresultstodiffermateriallyfromthosedescribedintheForwardLookingStatements,theremaybeotherfactorsthatcauseactionsorresultsnottobeasanticipated,estimatedorintended.

ThemineralresourceandmineralreservefiguresreferredtointhisProspectusSupplement,theProspectusandthedocumentsincorporatedhereinandthereinbyreference are estimates and no assurances can be given that the indicated levels of platinum, palladium, rhodium and gold will be produced. Such estimates areexpressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time maysignificantlychangewhennewinformationbecomesavailable. Bytheir nature, mineral resourceandmineral reserveestimatesareimpreciseanddepend,toacertainextent,uponstatisticalinferenceswhichmayultimatelyproveunreliable.AnyinaccuracyorfuturereductioninsuchestimatescouldhaveamaterialadverseimpactontheCompany.

AnyForwardLookingStatementspeaksonlyasofthedateonwhichitismadeand,exceptasmayberequiredbyapplicablesecuritieslaws,theCompanydisclaimsanyintentorobligationtoupdateanyForwardLookingStatement,whetherasaresultofnewinformation,futureeventsorresultsorotherwise.

CAUTIONARYNOTETOUNITEDSTATESINVESTORS

TheCompanyispermittedunderthemultijurisdictionaldisclosuresystemadoptedbythesecuritiesregulatoryauthoritiesinCanadaand theUnitedStates(the"MJDS")topreparethisProspectusSupplement,theProspectusandthedocumentsincorporatedbyreferencehereinandthereininaccordancewiththerequirementsofCanadian securities laws, which differ from the requirements of United States securities laws. All mineral resource and mineral reserve estimates included in thisProspectus Supplement, the Prospectus and the documents incorporated by reference herein and therein, have been or will be prepared in accordance with NationalInstrument 43-101 —Standards of Disclosure for Mineral Projects ("NI43-101 "). NI 43-101 is a rule developed by the Canadian Securities Administrators thatestablishesstandardsforall publicdisclosureanissuermakesofscientific andtechnical informationconcerningmineral projects. Thesestandardsdiffer significantlyfromthemineralreservedisclosurerequirementsoftheSECsetoutinIndustryGuide7.Consequently,mineralreserveandmineralresourceinformationincludedandincorporated by reference in this Prospectus Supplement and the Prospectus is not comparable to similar information that would generally be disclosed byU.S.companiesinaccordancewiththerulesoftheSEC.

Inparticular,IndustryGuide7appliesdifferentstandardsinordertoclassifymineralizationasareserve.Asaresult,thedefinitionsofprovenandprobablemineralreserves used in NI 43-101 differ from the definitions in Industry Guide 7. Under SEC standards, mineralization may not be classified as a "reserve" unless thedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegallyproducedorextractedatthetimethereservedeterminationismade.Amongotherthings, all necessary permits would be required to be in hand or issued imminently in order to classify mineralized material as reserves under the SEC standards.Accordingly, mineral reserveestimatesincludedandincorporatedbyreferenceinthis ProspectusSupplementandtheProspectusmaynotqualifyas"reserves"underSECstandards.

In addition, the information included and incorporated by reference in this Prospectus Supplement andthe Prospectus mayuse the terms "mineral resources","measuredmineralresources","indicatedmineralresources"and"inferredmineralresources"tocomplywiththereportingstandardsinCanada.IndustryGuide7doesnotcurrentlyrecognizemineralresourcesandU.S.companiesaregenerallynotpermittedtodisclosemineralresourcesindocumentstheyfilewiththeSEC.Investorsarespecificallycautionednottoassumethat

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anypartorallofthemineraldepositsinthesecategorieswilleverbeconvertedintomineralreservesunderIndustryGuide7.Further,"inferredmineralresources"haveagreatamountofuncertaintyastotheirexistenceandastowhethertheycanbeminedlegallyoreconomically.Therefore,investorsarealsocautionednottoassumethatalloranypartofaninferredmineralresourceexists.InaccordancewithCanadianrules,estimatesof"inferredmineralresources"cannotformthebasisoffeasibilityor,except in limited circumstances, other economic studies. It cannot be assumedthat all or any part of "measured mineral resources", "indicated mineral resources" or"inferredmineralresources"willeverbeupgradedtoahighercategoryormineralresourcesorthatmineralresourceswillbeclassifiedasmineralreserves.Investorsarecautioned not to assume that any part of the reported "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" included andincorporated by reference in this Prospectus Supplement and the Prospectus is economically or legally mineable. Disclosure of "contained ounces" in a resource ispermittedunderNI43-101;however, theSECnormallyonlypermitsissuerstoreport mineralizationthat doesnotconstitute"reserves"bySECstandardsasinplacetonnage and grade without reference to unit measures. In addition, the documents included and incorporated by reference in this Prospectus Supplement and theProspectus may include information regarding adjacent or nearby properties on which the Company has no right to mine. The SEC does not normally allowU.S.companiestoincludesuchinformationintheirfilingswiththeSEC.Fortheabovereasons,informationincludedandincorporatedbyreferenceinthisProspectusSupplementandtheProspectusthatdescribesourmineralreserveandresourceestimatesorthatdescribestheresultsofpre-feasibilityorotherstudiesisnotcomparabletosimilarinformationmadepublicbyU.S.companiessubjecttothereportinganddisclosurerequirementsoftheSEC.

RESERVEANDRESOURCEDISCLOSURE

Duetotheuncertaintythatmaybeattachedtoinferredmineralresourceestimates,itcannotbeassumedthatalloranypartofaninferredmineralresourceestimatewill be upgraded to an indicated or measured mineral resource estimate as a result of continued exploration. Confidence in an inferred mineral resource estimate isinsufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of economic viability sufficient for public disclosure,exceptincertainlimitedcircumstancesset outinNI43-101.Inferredmineral resourceestimates areexcludedfromestimates formingthebasis ofafeasibility study.Mineralresourcesthatarenotmineralreservesdonothavedemonstratedeconomicviability.

DESCRIPTIONOFEXISTINGINDEBTEDNESS

TheCompanyenteredintoaUS$40millionsecuredloanfacility(asamendedfromtimetotime,the"SprottFacility")withSprottResourceLendingPartnership,amongotherlenders(thelendersfromtimetotimepartythereto,the"SprottLenders")pursuanttoacreditagreementdatedFebruary13,2015,andasecondliencreditagreementdatedNovember2,2015withLibertyMetals&MiningHoldings,LLC,asubsidiaryofLibertyMutualInsurance("LibertyHoldings",andtogetherwiththeSprottLenders,the"Lenders"),foranadditionalUS$40millionsecuredloanfacility(asamendedfromtimetotime,the"LibertyFacility",andtogetherwiththeSprottFacility,the"Project1WorkingCapitalFacilities"),ineachcase,asamended,totheextentapplicable,by(i)modificationagreementstoeachfacilitydatedMay3,2016(the"MayCreditFacilityAmendments");(ii) modificationagreementstoeachfacilitydatedSeptember19,2016(together, the"SeptemberCreditFacility Amendments "); (iii) the amendment of the Sprott Facility by a modification agreement entered into on November 19, 2015; (iv) the amendment andrestatementoftheSprottFacilityinanagreement(the"Amended&RestatedSprottCreditAgreement")datedOctober11,2016,whichprovidedforanadditionalUS$5millionsecondadvance(the"SecondSprottAdvance");and(v)modificationagreementstoeachfacilitydatedJanuary13,2017(together,the"JanuaryCreditFacilityAmendments").

InNovember2015,theCompanysimultaneouslydrewdown,infull, US$40millionfromtheLibertyFacilityandUS$40millionfromtheSprott Facility. TheCompanyentered into the May Credit Facility Amendments and the September Credit Facility Amendments modifying the Sprott Facility and the Liberty Facility,whereintheLendersagreedtoextendthematuritydatesoftheSprottFacilityandtheLibertyFacility,amendcertainpaymentandprepaymenttermsandamendcertaineventsofdefaultrelatingtoproductiontargetsattheMaseveMine.

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InOctober2016,theCompanyandtheSprottLendersamendedandrestatedtheSprottFacilitypursuanttotheAmended&RestatedSprottCreditAgreementandimmediatelydrewdowntheSecondSprottAdvance.

TheCompanypaysinterestundertheLibertyFacilityatLIBORplus9.5%(whichinterestiscapitalizedinaccordancewiththetermsoftheLibertyFacility)andinterest under the Sprott Facility at LIBOR plus 8.5%. Payment and performance of the Company's obligations under the Project 1 Working Capital Facilities areguaranteedbyPTMRSAandsecuredbyafirst andsecondprioritysecurityinterest, asapplicable, infavoroftheLendersinall oftheCompany'spresentandafter-acquiredpersonalproperty,andapledgeoveralloftheissuedsharesinthecapitalofPTMRSA.

OnNovember2,2016,Sprottelectedforearlyrepaymentofone-half,orUS$2.5million,oftheSecondSprottAdvancefromtheproceedsoftheNovember2016Offering(asdefinedherein),whichtheCompanyhasrepaid.Theremainingone-half,orUS$2.5million,oftheSecondSprottAdvanceremainsoutstanding.

The Company entered into the January Credit Facility Amendments modifying the Amended &Restated Sprott Credit Agreement and the Liberty Facility toaccommodatefordelayedproductionrampupattheMaseveMinewhereintheLendersagreedtoanextensiontoplannedproductionrequirements,waiverstoworkingcapitalrequirementsandpostponementofarequirementtoprepaytheSprottLenders50%fromtheproceedsofcertainequityordebtfinancings.

For more information regarding the Project 1 Working Capital Facilities, see "Discussion of Operations and Financial Condition — Liquidity and CapitalResources"intheInterimMD&A(asdefinedherein).

DOCUMENTSINCORPORATEDBYREFERENCE

This Prospectus Supplement is deemed to be incorporated by reference in the Prospectus solely for the purpose of the Offering. Other documents are alsoincorporatedordeemedtobeincorporatedbyreferenceintheProspectusandreferenceshouldbemadetotheProspectusforfullparticularsthereof.

CopiesofthedocumentsincorporatedbyreferenceinthisProspectusSupplementandtheProspectusandnotdeliveredwiththisProspectusSupplementmaybeobtainedonrequestwithoutchargefromFrankHallamatSuite788,550BurrardStreet,Vancouver,BritishColumbia,Canada,V6C2B5,telephone(604)899-5450andarealsoavailableelectronicallyatwww.sedar.comandwww.sec.gov.

Thefollowingdocuments,filedbytheCompanywiththesecuritiescommissionsorsimilarregulatoryauthoritiesincertainprovincesofCanadaandfiledwith,orfurnishedto,theSEC,arespecificallyincorporatedbyreferenceinto,andformanintegralpartof,thisProspectusSupplementandtheProspectus:

(a) theannualinformationformoftheCompanydatedNovember29,2016forthefinancialyearendedAugust31,2016(the"AnnualInformationForm"or"AIF");

(b) theauditedconsolidatedfinancialstatementsoftheCompanyasatandforthefinancialyearsendedAugust31,2016and2015,togetherwiththenotestheretoandtheauditor'sreportsthereon(the"AnnualFinancialStatements");

(c) themanagement'sdiscussionandanalysisoftheCompanyforthefinancialyearendedAugust31,2016;

(d) theunaudited condensed consolidated interim financial statements of the Company for the three months ended November 30, 2016, together with thenotesthereto(the"InterimFinancialStatements",andtogetherwiththeAnnualFinancialStatements,the"FinancialStatements");

(e) themanagement'sdiscussionandanalysisoftheCompanyforthethree-monthperiodendedNovember30,2016(the"InterimMD&A");

(f) themanagementinformationcircularoftheCompanydatedJanuary3,2017preparedforthepurposesoftheannualgeneralmeetingoftheCompanytobeheldonFebruary23,2017;

(g) theNI43-101technicalreportentitled"AnIndependentTechnicalReportontheMaseveProject(WBJVProjectareas1and1A)locatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica"datedAugust28,2015(the"Project1Report");

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(h) theNI43-101technicalreportentitled"IndependentTechnicalReportontheWaterbergProjectIncludingMineralResourceUpdateandPre-FeasibilityStudy—ProjectAreaslocatedontheNorthernLimboftheBushveldIgneousComplex,SouthAfrica"datedOctober19,2016(the"WaterbergPFS");

(i) thematerialchangereportoftheCompanyfiledSeptember20,2016announcingupdatesonProject1andtheWaterbergProjectandtheSeptemberCreditFacilityAmendments;

(j) thematerialchangereportoftheCompanyfiledOctober12,2016announcingthattheSprottLendershaveprovidedtheSecondSprottAdvancetotheCompanypursuanttotheAmended&RestatedSprottCreditAgreement;

(k) thematerialchangereportoftheCompanyfiledOctober20,2016announcingtheWaterbergPFS;

(l) thematerial change report of the Company filed October 25, 2016 announcing that the Company had entered into an underwriting agreement with asyndicate of underwriters to buy on a bought deal basis 22,230,000 common shares of the Company for gross proceeds of US$40,014,000 (the "November2016Offering");

(m) thematerialchangereportoftheCompanyfiledNovember1,2016announcingtheclosingoftheNovember2016Offering;

(n) thematerialchangereportoftheCompanyfiledJanuary16,2017announcingtheJanuaryCreditFacilityAmendments;and

(o) thematerialchangereportoftheCompanyfiledJanuary24,2017announcingtheOffering.

Anydocumentofthetypereferredtointheprecedingparagraph(excludingpressreleasesandconfidentialmaterialchangereports)orofanyothertyperequiredtobeincorporatedbyreferenceintoashortformprospectuspursuanttoNationalInstrument44-101—ShortFormProspectusDistributionsthatarefiledbytheCompanywithasecuritiescommissionafterthedateofthisProspectusSupplementandpriortotheterminationofthedistributionshallbedeemedtobeincorporatedbyreferenceinthisProspectusSupplement.Inaddition,anydocumentfiledbytheCompanywiththeSECorfurnishedtotheSEConForm6-KorotherwiseafterthisProspectusSupplement (and prior to the termination of the distribution) shall be deemed to be incorporated by reference into this Prospectus Supplement and the RegistrationStatement(inthecaseofaReportonForm6-K,ifandtotheextentexpresslyprovidedfortherein).

AnystatementcontainedinthisProspectusSupplement,theProspectusoradocumentincorporatedordeemedtobeincorporatedbyreferencehereinorthereinshallbedeemedtobemodifiedorsupersededforthepurposesofthisProspectusSupplementtotheextentthatastatementcontainedhereinorintheProspectusorinanysubsequentlyfileddocumentwhichalsoisorisdeemedtobeincorporatedbyreferencehereinorintheProspectusmodifiesorsupersedesthat prior statement. The modifying or superseding statement need not state that it has modified or superseded a prior statement or include any otherinformationsetforthinthedocumentthatitmodifiesorsupersedes.Themakingofamodifyingorsupersedingstatementshallnotbedeemedanadmissionforanypurposesthatthemodifiedorsupersededstatement,whenmade,constitutedamisrepresentation,anuntruestatementofamaterialfactoranomissiontostateamaterialfactthatisrequiredtobestatedorthatisnecessarytomakeastatementnotmisleadinginlightofthecircumstancesinwhichitwasmade.AnystatementsomodifiedorsupersededshallnotbeconsideredinitsunmodifiedorsupersededformtoconstituteapartofthisProspectusSupplement,exceptassomodifiedorsuperseded.

ADDITIONALINFORMATION

The Company has filed with the SEC the Registration Statement. This Prospectus Supplement and the Prospectus, which together constitute a part of theRegistration Statement, do not contain all of the information contained in the Registration Statement, certain items of which are contained in the exhibits to theRegistrationStatementas permittedbytherules andregulationsof theSEC.Statements includedor incorporatedbyreferenceinthis ProspectusSupplement andtheProspectusaboutthecontentsofanycontract,agreementorotherdocumentsreferredtoarenotnecessarilycomplete,andineachinstanceaninvestorshouldrefertothe

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exhibitstotheRegistrationStatementforamorecompletedescriptionofthematterinvolved.Eachsuchstatementisqualifiedinitsentiretybysuchreference.

TheCompanyissubjecttotheinformationrequirementsoftheUnitedStatesSecuritiesExchangeActof1934,asamended(the"ExchangeAct"),andapplicableCanadiansecuritieslegislation,andinaccordancetherewithfilesandfurnishesreportsandotherinformationwiththeSECandwiththesecuritiesregulatorsinCanada.UndertheMJDS,documentsandotherinformationthattheCompanyfilesandfurnisheswiththeSECmaybepreparedinaccordancewiththedisclosurerequirementsofCanada,whicharedifferentfromthoseoftheUnitedStates.Asaforeignprivateissuer,theCompanyisexemptfromtherulesundertheExchangeActprescribingthefurnishingandcontentofproxystatements,anditsofficers,directorsandprincipalshareholdersareexemptfromthereportingandshort-swingprofitrecoveryprovisionscontainedinSection16oftheExchangeAct.Inaddition,theCompanyisnotrequiredtopublishfinancialstatementsaspromptlyasU.S.companies.

AninvestormayreadanydocumentthattheCompanyhasfiledwithorfurnishedtotheSECattheSEC'spublicreferenceroominWashington,D.C.AninvestormayalsoobtaincopiesofthosedocumentsfromthepublicreferenceroomoftheSECat100FStreet,N.E.,Washington,D.C.20549bypayingafee.AninvestorshouldcalltheSECat1-800-SEC-0330oraccessitswebsiteatwww.sec.govforfurtherinformationaboutthepublicreferencerooms.AninvestormayreadanddownloadthedocumentstheCompanyhasfiledwiththeSECundertheCompany'scorporateprofileatwww.sec.gov.AninvestormayreadanddownloadanypublicdocumentthattheCompanyhasfiledwiththeCanadiansecuritiesregulatoryauthoritiesundertheCompany'scorporateprofileontheSEDARwebsiteatwww.sedar.com.

DOCUMENTSFILEDASPARTOFTHEREGISTRATIONSTATEMENT

ThefollowingdocumentshavebeenorwillbefiledwiththeSECaspartoftheRegistrationStatement:(i)thedocumentsreferredtohereinandintheProspectusundertheheading"DocumentsIncorporatedbyReference";(ii)consentsofPricewaterhouseCoopersLLPandthepersonsnamedunder"InterestofExperts"hereinandin the Prospectus; (iii) powers of attorney fromcertain directors and officers of the Company; (iv) the formof Indenture (as defined in the Prospectus); and (v)theUnderwritingAgreement.

ENFORCEABILITYOFCIVILLIABILITIES

TheCompanyisacompanyorganizedandexistingundertheBusinessCorporationsAct(BritishColumbia).AmajorityoftheCompany'sdirectorsandofficers,andsome or all of the Underwriters named in this Prospectus Supplement and the experts named in this Prospectus Supplement, the Prospectus and the documentsincorporatedbyreferencehereinandtherein,areresidentsofCanadaorotherwiseresideoutsidetheUnitedStates,andallorasubstantialportionoftheirassets,andasubstantialportionoftheCompany'sassets,arelocatedoutsidetheUnitedStates.TheCompanyhasappointedanagentforserviceofprocessintheUnitedStates,butitmaybedifficultforinvestorswhoresideintheUnitedStatestoeffectservicewithintheUnitedStatesuponthosedirectors,officers,UnderwritersandexpertswhoarenotresidentsoftheUnitedStates.ItmayalsobedifficultforinvestorswhoresideintheUnitedStatestorealizeintheUnitedStatesuponjudgmentsofcourtsoftheUnitedStatespredicatedupontheCompany'scivilliabilityandthecivilliabilityoftheCompany'sdirectors,officers,UnderwritersandexpertsundertheUnitedStatesfederalsecuritieslaws.AfinaljudgmentforaliquidatedsuminfavourofaprivatelitigantgrantedbyaUnitedStatescourt andpredicatedsolelyuponcivil liabilityunder United States federal securities laws would, subject to certain exceptions identified in the law of individual provinces and territories of Canada, likely beenforceableinCanadaiftheUnitedStatescourtinwhichthejudgmentwasobtainedhadabasisforjurisdictioninthematterthatwouldberecognizedbythedomesticCanadiancourtforthesamepurposes.ThereisasignificantriskthatagivenCanadiancourtmaynothavejurisdictionormaydeclinejurisdictionoveraclaimbasedsolelyuponUnitedStatesfederalsecuritieslawonapplicationoftheconflictoflawsprinciplesoftheprovinceorterritoryinCanadainwhichtheclaimisbrought.

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CURRENCYPRESENTATIONANDEXCHANGERATEINFORMATION

Unless stated otherwise or the context otherwise requires, all references to dollar amounts in this Prospectus Supplement and the Prospectus are references toCanadian dollars. All references to "CAN$" are to Canadian dollars, references to "US$" are to United States dollars and references to "R" or "Rand" are to SouthAfricanRand.

ThefollowingtablesetsforththerateofexchangefortheUnitedStatesdollarexpressedinCanadiandollarsineffectattheendofeachoftheperiodsindicated,theaverageoftheexchangeratesineffectonthelastdayofeachmonthduringeachoftheperiodsindicated,andthehighandlowexchangeratesduringeachoftheperiodsindicatedineachcasebasedonthenoonrateofexchangeasreportedbytheBankofCanadafortheconversionofUnitedStatesdollarsintoCanadiandollars.

ThenoonrateofexchangeonJanuary23,2017asreportedbytheBankofCanadafortheconversionofUnitedStatesdollarsintoCanadiandollarswasUS$1.00equalsCAN$1.3289.

ThefollowingtablesetsforththerateofexchangefortheRandexpressedinCanadiandollarsineffectattheendofeachoftheperiodsindicated,theaverageoftheexchangeratesineffectonthelastdayofeachmonthduringeachoftheperiodsindicated,andthehighandlowexchangeratesduringeachoftheperiodsindicatedineachcasebasedonthenoonrateofexchangeasreportedbytheBankofCanadaforconversionofRandintoCanadiandollars.

The noon rate of exchange on January 23, 2017 as reported by the Bank of Canada for the conversion of Rand into Canadian dollars was one Rand equalsCAN$0.0984.

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FiscalYearEndedAugust31, 2016 2015 Averagerateforperiod CAN$ 1.3265 CAN$ 1.2102Rateatendofperiod CAN$ 1.3124 CAN$ 1.3223Highforperiod CAN$ 1.4589 CAN$ 1.3303Lowforperiod CAN$ 1.2544 CAN$ 1.0863

ThreeMonthsEnded

November30, 2016 2015 Averagerateforperiod CAN$ 1.3266 CAN$ 1.3205Rateatendofperiod CAN$ 1.3426 CAN$ 1.3333Highforperiod CAN$ 1.3582 CAN$ 1.3413Lowforperiod CAN$ 1.2843 CAN$ 1.2904

FiscalYearEndedAugust31, 2016 2015 Averagerateforperiod CAN$ 0.0902 CAN$ 0.1026Rateatendofperiod CAN$ 0.0893 CAN$ 0.0998Highforperiod CAN$ 0.0993 CAN$ 0.1102Lowforperiod CAN$ 0.0821 CAN$ 0.0986

ThreeMonthsEnded

November30, 2016 2015 Averagerateforperiod CAN$ 0.0950 CAN$ 0.0960Rateatendofperiod CAN$ 0.0953 CAN$ 0.0921Highforperiod CAN$ 0.1004 CAN$ 0.0993Lowforperiod CAN$ 0.0892 CAN$ 0.0921

NOTICEREGARDINGNON-IFRSMEASURES

ThisProspectusSupplement,theProspectusandthedocumentsincorporatedbyreferencehereinandthereinincludecertaintermsorperformancemeasuresthatarenot defined under IFRS, such as cash costs, all-in sustaining costs and total costs per payable ounce, realized price per ounce, adjusted net income(loss) before tax,adjustednetincome(loss)andadjustedbasicearnings(loss)pershare.TheCompanybelievesthat, inadditiontoconventionalmeasurespreparedinaccordancewithIFRS,certaininvestorsusethisinformationtoevaluatetheCompany'sperformance.ThedatapresentedisintendedtoprovideadditionalinformationandshouldnotbeconsideredinisolationorasasubstituteformeasuresofperformancepreparedinaccordancewithIFRS.Thesenon-IFRSmeasuresshouldbereadinconjunctionwiththeFinancialStatements.

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PROSPECTUSSUPPLEMENTSUMMARY

ThissummaryhighlightscertaininformationabouttheCompany,theOfferingandselectedinformationcontainedelsewhereinorincorporatedbyreferenceinthisProspectus Supplement, the Prospectus or the documents incorporated by reference herein or therein. This summary is not complete and does not contain alloftheinformationthatyoushouldconsiderbeforedecidingwhethertoinvestintheOfferedShares.ForamorecompleteunderstandingoftheCompanyandtheOffering,theCompanyencourages you to readandconsider carefully the more detailed information in this Prospectus Supplement andthe Prospectus, includingtheinformationincorporatedbyreferencehereinandtherein,andinparticular,theinformationundertheheading"RiskFactors"intheProspectus,inthisProspectusSupplementandintheAIF.

CertaincapitalizedtermsusedinthissummaryrefertodefinitionscontainedelsewhereinthisProspectusSupplement.

Overview

TheCompanyisaplatinum-focusedexplorationanddevelopmentcompanyconductingworkprimarilyonmineralpropertiesithasstakedor acquiredbywayofoptionagreementsorapplicationsintheRepublicofSouthAfrica.TheCompany,throughitswholly-owneddirectsubsidiary,PlatinumGroupMetals(RSA)ProprietaryLimited("PTMRSA") indirectly holdsinterests in theMaseveMineandProject 3of what wasformerly theWesternBushveldJoint Venture("Project3")bothlocatedontheWesternLimboftheBushveldComplex.TheCompanyalsoowns49.9%ofMnomboWethuConsultantsProprietaryLimited("Mnombo"),acompanywhichholdsa26%participatinginterestinboththeWaterbergjointventureproject(the"WaterbergJVProject")andtheandtheWaterbergextensionproject(the"WaterbergExtensionProject" andtogether withthe Waterberg JVProject, the "WaterbergProject"). PTMRSAis a joint venture participant in theWaterbergProject,togetherwithJapanOil,GasandMetalsNationalCorporationandMnombo,andistheoperatoroftheWaterbergProject.

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THEOFFERING

ThefollowingsummarycontainsbasicinformationabouttheOfferingandisnotintendedtobecomplete.Itdoesnotcontainalltheinformationthatisimportant to you. You should carefully read this Prospectus Supplement, the Prospectus and the documents incorporated by reference herein and thereinbeforemakinganinvestmentdecision.

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Issuer

PlatinumGroupMetalsLtd.

Securitiesoffered

17,125,000OfferedSharesatUS$1.46perOfferedShare.

CommonSharesoutstandingasofthedatehereof

113,372,437CommonShares.

CommonSharestobeoutstandinguponclosingofOffering(1)

130,497,437CommonShares.IftheOver-AllotmentOptionisexercisedinfull,133,066,187CommonShareswillbeoutstandinguponclosingoftheOffering.

Over-AllotmentOption

TheUnderwritershavebeengrantedtheOver-AllotmentOptiontopurchaseupto2,568,750Over-AllotmentSharesattheOfferingPrice.TheOver-AllotmentOptionisexercisablefor30daysfromtheClosingDate.

Useofproceeds

ThenetproceedstotheCompanyfromtheOfferingwillbeapproximatelyUS$22,852,350(orapproximatelyUS$26,377,703iftheUnderwritersexercisetheOver-AllotmentOptioninfull),afterdeductingtheUnderwritingCommissionandestimatedexpenses.TheCompanyintendstousethenetproceedsoftheOffering(i)forundergrounddevelopmentandproductionramp-upoftheMaseveMine;(ii)forworkingcapitalduringstart-up;and(iii)forgeneralcorporatepurposes.

Stockexchangesymbols

TheCommonSharesarelistedontheTSXandontheNYSEMKTunderthesymbols"PTM"and"PLG",respectively.

Incometaxconsiderations

HoldersareurgedtoconsulttheirowntaxadvisorswithrespecttotheU.S.andCanadianfederal,provincial,territorial,localandforeigntaxconsequencesofpurchasing,owninganddisposingoftheOfferedShares.See"CertainCanadianFederalIncomeTaxConsiderations"and"CertainUnitedStatesFederalIncomeTaxConsiderations".

Riskfactors

See"RiskFactors"intheProspectus,inthisProspectusSupplementandintheAIF,aswellasthedocumentsincorporatedbyreferencehereinandtherein,foradiscussionoffactorsyoushouldcarefullyconsiderbeforedecidingtoinvestintheOfferedShares.

Notes:

(1) ThisnumberassumestherewillbenoexerciseofoutstandingstockoptionsfromthedateofthisProspectusSupplementuntiltheclosingoftheOffering(asofJanuary23,2017,4,814,125stockoptionsoftheCompanywereoutstanding).

RISKFACTORS

InvestingintheOfferedSharesinvolvesahighdegreeofrisk.InadditiontotheotherinformationcontainedinthisProspectusSupplement,theProspectusandthedocumentsincorporatedbyreferencehereinandtherein,youshouldcarefullyconsidertherisksdescribedunderthe"RiskFactors"sectionoftheProspectusandtheAIFbeforepurchasingtheOfferedShares. Resourceexplorationanddevelopmentis aspeculativebusiness, characterizedbyanumberof significant risksincluding,amongotherthings,unprofitableeffortsresultingnotonlyfromthefailuretodiscovermineraldepositsbutalsofromfindingmineraldeposits,which,thoughpresent,areinsufficient in quantity or quality to return a profit from production. See "Documents Incorporated by Reference". If any such risks actually occur, the Company'sbusiness,financialcondition,resultsofoperationsandprospectscouldmateriallysuffer.Asaresult,thetradingpriceoftheCompany'ssecurities,includingtheOfferedShares,coulddecline,andyoumightloseallorpartofyourinvestment.TheriskssetoutintheProspectusandtheAIFarenottheonlyrisksthattheCompanyfaces;risksanduncertaintiesnotcurrentlyknowntoitorthatitcurrentlydeemstobeimmaterialmayalsomateriallyandadverselyaffectitsbusiness,financialcondition,results of operations andprospects, cause actual events to differ materially fromthose describedin the Forward-LookingStatements andinformationrelating totheCompany and could result in a loss of your investment. You should also refer to the other information set forth or incorporated by reference in this ProspectusSupplementandtheProspectus,includingtheFinancialStatementsandrelatednotes.

RisksRelatingtotheCompany

The Company will require additional financing, which may not be available on acceptable terms, if at all.

TheProject1WorkingCapitalFacilitiesrequirethattheCompanymaintainworkingcapitalinexcessofUS$5.0million(the"WorkingCapitalRequirement")andconsolidatedcashandcashequivalentsofatleastUS$5.0million.TheLibertyFacilityrequiresthattheCompanymaintainadebtservicecoverageratioofatleast1.20to1.OnJanuary13,2017,theLendersagreedtowaivetheWorkingCapital Requirementuntil February15,2017.TheCompanywillneedtosourceadditionalfinancingovertimetoremainincompliancewiththeProject1WorkingCapitalFacilitiesandtosatisfyitsworkingcapitalneeds.EveniftheOfferingissuccessfullycompleted,theCompanymayberequiredtosourceadditionalfinancingbywayofprivateorpublicofferingsofequityordebtorthesaleofprojectorpropertyinterestsinordertohavesufficientworkingcapitalforthedevelopmentandoperationoftheMaseveMineandthecontinuedexplorationontheWaterbergProject,aswellasforgeneralworkingcapitalpurposes.

Thesuccessandthepricingofanysuchcapitalraisingand/ordebtfinancingwillbedependentupon,amongotherthings,theprevailingmarketconditionsatthattime.TherecanbenoassurancethatfinancingwillbeavailabletotheCompanyor,ifitisavailable,thatitwillbeofferedonacceptableterms.IfadditionalfinancingisraisedthroughtheissuanceofCommonShares,unitsorwarrants,thismayhaveadepressiveeffectonthepriceoftheCommonSharesandtheinterestsofshareholdersinthenetassetsoftheCompanymaybediluted.Inaddition,underthetermsoftheProject1WorkingCapitalFacilities,50%oftheproceedsfromanyequityordebtfinancings(excludingintercompanyfinancings)withavalueexceedingUS$1millionthatcloseafterMarch31,2017,inthecaseoftheSprottFacility,andDecember31,2017, inthecaseof theLibertyFacility, are requiredtobepaidtotheLenders inpartial repayment of theProject 1WorkingCapital Facilities, subject to termsandconditionsofanintercreditoragreementbetweentheSprottLendersandLibertyHoldings.

AnyfailurebytheCompanytoobtainrequiredfinancingonacceptabletermsoronatimelybasiscouldcausetheCompanytodelaydevelopmentofitsmaterialprojectsorcouldresultintheCompanybeingforcedtosellsomeofitsassetsonanuntimelyorunfavorablebasis.AnysuchdelayorsalecouldhaveamaterialadverseeffectontheCompany'sfinancialcondition,resultsofoperationsandliquidity.AnydefaultundertheProject1WorkingCapitalFacilitiescouldresultinthelossoftheCompany'sentireinterestinPTMRSA,andthereforeitsinterestsintheMaseveMine,Project3andtheWaterbergProject.

The Company has a history of negative operating cash flow. If the Company continues to experience negative operating cash flow, this may have a material adverseeffect on the Company.

TheCompanyhashadnegativeoperatingcashflowinrecentfinancialyears.TheCompany'sabilitytoachieveandsustainpositiveoperatingcashflowwilldependonanumberoffactors,includingtheCompany'sabilitytoproduceattheMaseveMineonaprofitablebasisandadvancetheWaterbergProjectintoproduction.

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TotheextentthattheCompanyhasnegativecashflowinfutureperiods,theCompanymayneedtodeployaportionofitscashreservestofundsuchnegativecashflow.Even if the Offering is successful, the Company may be required to raise additional funds through the issuance of additional equity or debt securities to satisfy thefinancialprovisionsundertheProject1WorkingCapitalFacilities,andtosatisfytheCompany'sgeneralworkingcapitalrequirements.TheProject1WorkingCapitalFacilitiesprovide,however,thatasdescribedabove,aportionoftheproceedsfromanyequityanddebtfinancings(excludingintercompanyfinancings)oftheCompanyor its subsidiaries after March 31, 2017, in the case of the Sprott Facility andDecember 31, 2017, in the case of the Liberty Facility and having a value exceedingUS$1millionintheaggregate,mustbepaidtotheLendersinthepartialrepaymentoftheProject1WorkingCapitalFacilities.TherecanbenoassurancethatadditionaldebtorequityfinancingorothertypesoffinancingwillbeavailableifneededorthatthesefinancingswillbeontermsatleastasfavorabletotheCompanyasthoseobtainedpreviously.

The Company has granted first and second ranking security interests in favour of the Lenders over all of its personal property, subject to certain exceptions, and theCompany  has  pledged  its  shares  of  PTM RSA  to  the  Lenders  under  the  Project  1  Working  Capital  Facilities,  which  may  have  a  material  adverse  effect  on  theCompany if there was an Event of Default under the Project 1 Working Capital Facilities and the Lenders enforced on the security.

TosecureitsobligationsundertheProject1WorkingCapitalFacilities(andinthecaseoftheLibertyFacility,aproductionpaymentagreementbyandamongtheCompany, PTMRSAand Liberty Holdings, dated November 19, 2015, as amended, with respect to the Maseve Mine and Project 3), the Company hasenteredintogeneralsecurityagreementsunderwhichtheCompanyhasgrantedfirstandsecondrankingsecurityinterestsinfavouroftheLendersoverallofitspresentandafter-acquiredpersonalproperty,subjecttocertainexceptions,andsharepledgeagreementspursuanttowhichtheCompanyhasgrantedafirstandsecondprioritysecurityinterestinfavouroftheLendersoveralloftheissuedsharesinthecapitalofPTMRSA.PTMRSAhasalsoguaranteedtheCompany'sobligationstotheLenders.ThesesecurityinterestsandguaranteemayimpacttheCompany'sabilitytoobtainprojectfinancingfortheWaterbergProjectoritsabilitytosecureothertypesoffinancing.TheProject1WorkingCapitalFacilitieshavevariouscovenantsandprovisions,includingtargetproductionprovisions,paymentcovenantsandfinancialteststhatmustbesatisfiedandcompliedwithduringthetermoftheProject1WorkingCapitalFacilities.Thereisnoassurancethatsuchcovenantswillbesatisfied.AnydefaultunderProject1WorkingCapitalFacilities,includinganycovenantsthereunder,couldresultinthelossoftheCompany'sentireinterestinPTMRSA,andthereforeitsinterestsintheMaseveMine,Project3andtheWaterbergProject.

There may be further delays in the production ramp-up of the Maseve Mine which could result in a default under the Project 1 Working Capital Facilities and couldhave a material adverse effect on the Company's financial condition and prospects.

The ramp-up of production at the Maseve Mine has been slower than anticipated and the Company may experience further delays. Timelines are based onmanagement'scurrentexpectationsandmaybeaffectedbyanumberoffactors,including:

• theavailabilityofadequatefundstocompleteundergrounddevelopment,includingtheanticipatednetproceedsofanoffering,orfundsobtainedthroughalternativesourcesoffinancing;

• consultants'analysesandrecommendations;

• therateatwhichexpendituresareincurred;

• delaysinconstructionschedules;

• contractorperformanceanddeliveryofservices,changesincontractorsortheirscopeofworkoranydisputeswithcontractors;

• availabilityofmajorequipmentandpersonnel;

• theCompany'sabilitytomaintainrequisitepermitsandlicenses(includingawateruselicense,andtheenvironmentalauthorizationheldbyMaseve);

• anyregulatoryorotherworkstoppages;

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• otherpotentiallyrequiredauthorizationsarisingfromrecentlegislativeamendments;and

• therateofundergrounddevelopmentinthenorthandsouthdeclines.

SomeoftheabovefactorsarebeyondtheCompany'scontrolandcouldcausemanagement'stimelinesnottoberealized.ThetargetedstartdateforfirstconcentrateproductionattheMaseveMineinthefourthquarterofcalendar2015wasdelayed.Delaysinproductionramp-upattheMaseveMinehavealsooccurred.Whiletherehasbeennomaterialoverrunwithregardtocapitalcosts,thedelayinramp-upofproductionattheMaseveMinehascausedadelayintheCompany'sreceiptofanticipatedproductionrevenue.TheCompanyhadplannedtousethisrevenuetocoveraportionoftheongoingcapitalcostsoftheMaseveMine.AsofNovember30,2016,thenetshortfall inexpectedproductionrevenue, offset bysomecostsavings, ofapproximatelyUS$48.7millionhadbeenaccommodatedbyamountsdrawndownundertheProject1WorkingCapitalFacilitiesandtheproceedsofpriorequityofferingsoftheCompany.Furtherdelaysintheproductionramp-upoftheMaseveMinecouldhaveamaterialadverseeffectontheCompany'sfinancialconditionandprospectsandmayalsoresultinadefaultunderthetargetproductionorfinancialprovisionsoftheProject1WorkingCapitalFacilities,whichmayaccelerateamountsduethereunderandpermittheLenderstorealizeonanyapplicablesecuritythereunder.ThiscouldresultinacompletelossoftheCompany'sassets,includingitsinvestmentinPTMRSA,andthereforeintheMaseveMine,Project3andtheWaterbergProject.ThereisnoassurancethatinsuranceforanyinterruptioninproductionattheMaseveMinewillbeavailabletotheCompanyoneconomictermsorinsuchamountsaswouldbeadequatetocoveralllossesoratall.

Interruptions in production may trigger events of default under the Project 1 Working Capital Facilities. Under the Project 1 Working Capital Facilities, theCompanywillbeindefaultifitfailstomeetrollingthree-monthaverageproductiontargetsattheMaseveMine,withmonthonestartingFebruary2017.IftheCompanyfailstomeettheseproductiontargets,thereisnoguaranteethatLibertyHoldingsortheSprottLenderswillagreetofurtheramendmentstotheProject1WorkingCapitalFacilities. Anydefault undertheProject 1WorkingCapital Facilities couldresult inthelossoftheCompany'sinterest inPTMRSAandthereforeits interests intheMaseveMine,Project3andtheWaterbergProject.

The Company may be unable to generate sufficient cash to service its  debt,  the terms of the agreements governing the Company's debt may restrict  its  current orfuture operations and the indebtedness may adversely affect the Company's financial condition and results of operations.

TheCompany'sabilitytomakescheduledpaymentsontheProject1WorkingCapitalFacilitieswilldependonitsabilitytosuccessfullyramp-upproductionattheMaseveMine,andontheCompany'sfinancialconditionandoperatingperformance,whicharesubjecttoprevailingeconomicandcompetitiveconditionsandtocertainfinancial,business,legislative,regulatoryandotherfactorsbeyonditscontrol.IftheCompany'scashflowsandcapitalresourcesareinsufficienttofunditsdebtserviceobligations,theCompanycouldfacesubstantialliquidityproblemsandcouldbeforcedtoreduceordelayinvestmentsandcapitalexpendituresortodisposeofmaterialassetsoroperations,seekadditionaldebtorequitycapitalorrestructureorrefinancetheCompany'sindebtedness,includingindebtednessundertheProject1WorkingCapital Facilities. The Company may not be able to effect any such alternative measures on commercially reasonable terms or at all and, even if successful, thosealternativesmaynotallowtheCompanytomeetitsscheduleddebtserviceobligations.

Inaddition,abreachofthecovenantsundertheProject1WorkingCapitalFacilitiesortheCompany'sotherdebtinstrumentsfromtimetotimecouldresultinaneventofdefaultundertheapplicableindebtedness.Suchadefaultmayallowthecreditorstoacceleratetherelateddebt,mayresultintheimpositionofdefaultinterest,andmayresultintheaccelerationofanyotherdebttowhichacrossaccelerationorcrossdefaultprovisionapplies.Inparticular,acrossdefaultprovisionappliestotheProject1WorkingCapitalFacilities.IntheeventaLenderacceleratestherepaymentoftheCompany'sborrowings,theCompanymaynothavesufficientassetstorepayitsindebtednessandanEventofDefaultcouldoccurundertheProject1WorkingCapitalFacilities.

The Project 1 Working Capital Facilities contain a number of covenants that impose operating and financial restrictions on the Company and may limit theCompany's ability toengagein acts that maybe in its longtermbest interest. In particular, the Project 1 WorkingCapital Facilities restrict the Company's ability tomodifymaterialcontracts,todisposeofassets,tousetheproceedsfrompermitteddispositions,toincuradditional

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indebtedness,to enter into transactions with affiliates, and to grant security interests or encumbrances and to use proceeds from future debt or equity financings. Inaddition,theCompanymustobtaintheconsentoftheagentundereachProject1WorkingCapitalFacilitytoconsolidateandcontributetheWaterbergJVProjectandtheWaterberg Extension Project to Waterberg JVResources Proprietary Limited. Such consents may not be unreasonably withheld by the agents. As a result of theserestrictions,theCompanymaybelimitedinhowitconductsitsbusiness,maybeunabletoraiseadditionaldebtorequityfinancing,maybeunabletocompeteeffectivelyor to take advantage of new business opportunities or may become in breach of its obligations to joint venture partners and others, each of which may affect theCompany'sabilitytogrowinaccordancewithitsstrategyormayotherwiseadverselyaffectitsbusinessandfinancialcondition.

Further,theCompany'smaintenanceofsubstantiallevelsofdebtcouldadverselyaffectitsfinancialconditionandresultsofoperationsandcouldadverselyaffectitsflexibilitytotakeadvantageofcorporateopportunities.SubstantiallevelsofindebtednesscouldhaveimportantconsequencestotheCompany,including:

• limitingtheCompany'sabilitytoobtainadditionalfinancingtofundfutureworkingcapital,capitalexpenditures,acquisitionsorothergeneralcorporaterequirements,orrequiringtheCompanytomakenon-strategicdivestitures;

• requiring a substantial portion of the Company's cash flows to be dedicated to debt service payments instead of other purposes, therebyreducingtheamountofcashflowsavailableforworkingcapital,capitalexpenditures,acquisitionsandothergeneralcorporatepurposes;

• increasingtheCompany'svulnerabilitytogeneraladverseeconomicandindustryconditions;

• exposingtheCompanytotheriskofincreasedinterestratesforanyborrowingsatvariableratesofinterest;

• limitingtheCompany'sflexibilityinplanningforandreactingtochangesintheindustryinwhichitcompetes;

• placingtheCompanyatadisadvantagecomparedtoother,lessleveragedcompetitors;and

• increasingtheCompany'scostofborrowing.

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CONSOLIDATEDCAPITALIZATION

ThefollowingtablesetsforththeconsolidatedcapitalizationoftheCompanyasatNovember30,2016on(a)anactualbasisand(b)anas-adjustedbasistogiveeffect to the completion of the Offering. This table should be read in conjunction with the Financial Statements. See "Documents Incorporated byReference".SinceNovember30,2016therehasbeennomaterialchangeintheshareandloancapitaloftheCompany,onaconsolidatedbasis,otherthanasdescribedinthisProspectusSupplementandtheProspectus.

USEOFPROCEEDS

TheestimatednetproceedsreceivedbytheCompanyfromtheOffering(assumingnoexerciseoftheOver-AllotmentOption)willbeUS$22,852,350(determinedafterdeductingtheUnderwritingCommissionofUS$1,500,150andestimatedexpensesoftheOfferingofUS$650,000).If theOver-AllotmentOptionisexercisedinfull, the estimated net proceeds received by the Company from the Offering will be US$26,377,703 (determined after deducting the Underwriting Commission ofUS$1,725,173andestimatedexpensesoftheOfferingofUS$650,000).

TheCompanyintendstousethenetproceedsoftheOffering(i)forundergrounddevelopmentandproductionramp-upoftheMaseveMine;(ii)forworkingcapitalduringstart-up;and(iii)forgeneralcorporate

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AsofNovember30,2016,

Actual AsAdjustedfortheOffering(1)

(US$inthousands)

Cashandcashequivalents(2) $ 27,507 $ 50,359Long-termfinancialliabilities(3) $ 79,722 $ 79,722Shareholders'equity: Sharecapital(CommonShares):unlimitedsharesauthorized;112,803,619sharesissuedandoutstanding;129,928,619sharesissuedandoutstandingaftergivingeffecttotheOffering(2)(4) $ 755,320 $ 778,172

Contributedsurplus $ 24,075 $ 24,075Accumulatedothercomprehensiveloss ( $215,421) ($ 215,421)Deficit ( $127,651) ($ 127,651)

Shareholders'equityattributabletoshareholdersoftheCompany $ 436,323 $ 459,175

Totalcapitalization(2) $ 436,323 $ 459,175

Notes:

(1) AfterdeductionoftheUnderwritingCommission,andestimatedexpensesoftheOfferingofUS$650,000,andassumingnoexerciseoftheOverAllotmentOption.

(2) IftheOver-AllotmentOptionisexercisedinfull,asadjustedcashandcashequivalentswillbeUS$53,885thousand,asadjustedsharecapitalwillbeUS$781,698thousandandasadjustedtotalcapitalizationwillbeUS$462,701thousand.

(3) DoesnotincludeUS$2,083thousandcurrentportionofloanpayableasofNovember30,2016.(4) AsatNovember30,2016,thisfigureexcluded2,604,125CommonSharesreservedforissuancepursuanttooutstandingstockoptions(witha

weightedaverageexercisepriceofCAN$6.73)andnilCommonSharesreservedforissuancepursuanttooutstandingwarrants. SubsequenttoNovember30,2016andpriortothedateofthisProspectusSupplement,theCompanyissuedanadditional2,210,000stockoptionsandnoneofsuchCommonSharesreservedforissuancepursuanttooutstandingstockoptionshavebeenissuedpursuanttotheexerciseofoutstandingstockoptions. Thisfigurealsoexcludes568,818CommonSharesissuedonJanuary20,2017totheLenderspursuant totheJanuaryCredit FacilityAmendments.

purposes.ThefollowingtableprovidesadditionaldetailsastotheestimatedusesofthenetproceedsoftheOffering:

IftheOver-AllotmentOptionisexercisedinwholeorinpart,theCompanywillusetheadditionalnetproceedsfromsuchexerciseforgeneralcorporatepurposes.

AlthoughtheCompanyintendstousethenetproceedsfromtheOfferingassetforthabove,theactualallocationofthenetproceedsmayvaryfromthoseallocationssetoutabove,dependingonfuturedevelopmentsintheCompany'smineralpropertiesorunforeseenevents,includingthoselistedunderthe"RiskFactors"sectionoftheProspectus,thisProspectusSupplementandtheAIF.Potentialinvestorsarecautionedthat,notwithstandingtheCompany'scurrentintentionsregardingtheuseofthenetproceedsoftheOffering,theremaybecircumstanceswhereareallocationofthenetproceedsmaybeadvisableforreasonsthatmanagementbelieves,initsdiscretion,areintheCompany'sbestinterests.

Pending their use, thenet proceedsof theOfferingwill beinvestedinshort-terminvestment gradeinstruments including, but not limitedto, demanddeposits,banker's acceptances, interest bearing corporate, government-issued and/or government-guaranteed securities and term deposits held with major Canadian, British orSouth African financial institutions. The Company's Chief Executive Officer, Chief Financial Officer and board of directors are responsible for the investment andsupervisionofunallocatedfunds.

UtilizingthenetproceedsoftheOfferingandcashonhand,theCompany'sprimarybusinessobjectiveistobringtheMaseveMineintocommercialproduction,asdescribed in thisProspectus Supplement, the Prospectus and the documents incorporated by reference herein and therein. Secondarily, the Company plans to furtheradvancetheWaterbergProject,asdescribedintheWaterbergPFS.

BasedontheCompany'scurrentprojections,thenetproceedsoftheOffering,togetherwiththeCompany'scashonhandandanticipatedproductionrevenue,areanticipatedtobesufficienttosatisfytheCompany'sworkingcapitalneedsforthenext12months,afterwhichtheCompanymayberequiredtoraiseadditionalcapital.Potentialinvestorsarecautionedthathigherthanexpectedcosts,orlowerthanexpectedrevenues,mayrequiretheCompanytoraisesignificantadditionalcapital.See"RiskFactors"intheProspectus,thisProspectusSupplementandtheAIF.

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US$inthousands

MaseveMineundergrounddevelopmentandproductionramp-upcosts(1) $ 8,500Workingcapitalduringstart-up(2) 4,000Generalcorporatepurposes 10,352

Total $ 22,852

Notes:

(1) Assumesthat AfricaWideMineral ProspectingandExplorationProprietaryLimited("AfricaWide")willelectnottocontributetoMaseveInvestments 11ProprietaryLimited("Maseve") in order to match its pro rata share of the MaseveMine funding.Anyfunding fromAfricaWideoranewjointventurepartnerwouldreducetheCompany'sfundingrequirements.

(2) MaybeusedforinterestpayableontheSprottFacility,wagesandsalariesandotherestimatedgeneralandadministrativeexpenses.

PRIORSALES

Duringthe12monthsprecedingthedateofthisProspectusSupplement,theCompanyhasissuedoragreedtoissueCommonSharesatthefollowingprices:

Duringthe12monthsprecedingthedateofthisProspectusSupplement,theCompanyhasissuedthefollowingsecuritiesconvertibleintoCommonSharesatthefollowingprices:

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DateofIssuance Numberof

CommonShares IssuancePrices (CAN$) March11,2016 2,250(1) 2.00May13,2016 131,654(2) 3.87May13,2016 131,654(3) 3.87May26,2016 11,000,000(4) 3.89September30,2016 801,314(5) 3.30September30,2016 801,314(6) 3.30October27,2016 113,963(7) 2.91November1,2016 22,230,000(8) 2.41January20,2017 275,202(9) 2.03January20,2017 293,616(10) 2.03

TOTAL 35,780,967

Notes:

(1) Issuedpursuanttotheexerciseofstockoptions.(2) IssuedpursuanttotheMayCreditFacilityAmendmenttotheSprottFacility.(3) IssuedpursuanttotheMayCreditFacilityAmendmenttotheLibertyFacility.(4) Issuedpursuanttoashortformprospectusoffering.(5) IssuedpursuanttotheSeptemberCreditFacilityAmendmenttotheSprottFacility.(6) IssuedpursuanttotheSeptemberCreditFacilityAmendmenttotheLibertyFacility.(7) IssuedpursuanttotheAmended&RestatedSprottCreditAgreement.(8) IssuedpursuanttotheNovember2016Offering.(9) IssuedpursuanttotheJanuaryCreditFacilityAmendmenttotheSprottFacility.(10) IssuedpursuanttotheJanuaryCreditFacilityAmendmenttotheLibertyFacility.

DateofGrant NumberofStockOptionsIssued(1) ExercisePrices(1)

(CAN$) December23,2016 2,210,000(1) 2.00

Notes:

(1) EachstockoptionisexercisableforoneCommonShare.

PRICERANGEANDTRADINGVOLUME

TheCommonSharesarelistedfortradingontheTSXunderthetradingsymbol"PTM"andontheNYSEMKTunderthetradingsymbol"PLG".ThefollowingtablessetforthinformationrelatingtothetradingoftheCommonSharesontheTSXandtheNYSEMKTfortheperiodsindicated.

TSX(1)—"PTM"

NYSEMKT(1)—"PLG"

CERTAINCANADIANFEDERALINCOMETAXCONSIDERATIONS

Thefollowingis, as of thedate hereof, a general summaryof theprincipal Canadianfederal incometaxconsiderations under IncomeTaxAct(Canada)(the"TaxAct") and the regulations thereunder (the "Regulations") generally applicable to a holder who acquires Offered Shares as beneficial owner pursuant to thisProspectusSupplementandwho,atallrelevanttimes,forthepurposesoftheTaxAct,dealsatarm'slengthwiththeCompanyandtheUnderwriters,isnotaffiliatedwiththeCompanyortheUnderwriters,andwillacquireandholdsuchOfferedSharesascapitalproperty(each,a"Holder"),allwithinthemeaningoftheTaxAct.OfferedShareswillgenerallybeconsideredtobecapitalpropertytoaHolderunlesstheHolderholds

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Period High Low Volume (CAN$) (CAN$) January1to23,2017 2.52 1.96 2,193,540December,2016 2.61 1.89 2,176,955November,2016 2.45 1.89 1,835,032October,2016 3.66 2.29 1,715,332September,2016 3.97 3.50 1,039,057August,2016 4.63 3.59 1,568,123July,2016 4.95 3.79 2,665,700June,2016 4.64 3.51 1,827,030May,2016 4.74 3.42 1,788,239April,2016 5.07 3.16 3,329,126March,2016 5.25 2.51 3,111,955February,2016 3.00 1.41 4,237,233January,2016 2.05 1.35 1,223,459

Period High Low Volume (US$) (US$) January1to23,2017 1.92 1.43 12,660,726December,2016 1.98 1.40 13,714,107November,2016 1.85 1.40 7,238,137October,2016 2.80 1.72 7,603,266September,2016 3.08 2.66 4,474,440August,2016 3.56 2.75 7,993,488July,2016 3.98 2.87 10,608,231June,2016 3.57 2.73 8,766,770May,2016 3.71 2.65 7,089,516April,2016 3.91 2.46 10,796,958March,2016 4.04 1.86 8,742,239February,2016 2.19 1.01 15,083,013January,2016 1.51 0.96 1,462,689

Note:

(1) ThepriceandvolumehavebeenadjustedtoreflecttheconsolidationoftheCommonSharesonthebasisofonenewCommonSharefortenoldCommonSharesannouncedonJanuary26,2016.

orusestheOfferedSharesorisdeemedtoholdorusetheOfferedSharesinthecourseofcarryingonabusinessoftradingordealinginsecuritiesorhasacquiredthemordeemedtohaveacquiredtheminatransactionortransactionsconsideredtobeanadventureinthenatureoftrade.

ThissummarydoesnotapplytoaHolder(a)thatisa"financialinstitution"forpurposesofthemark-to-marketrulescontainedintheTaxAct;(b)aninterestinwhichisorwouldconstitutea"taxshelter investment"asdefinedintheTaxAct; (c) that is a"specifiedfinancial institution"asdefinedintheTaxAct; (d)that is acorporationresidentinCanada(forthepurposeoftheTaxAct)oracorporationthatdoesnotdealatarm'slengthforpurposesoftheTaxActwithacorporationresidentinCanada,andthatisorbecomesaspartofatransactionoreventorseriesoftransactionsoreventsthatincludestheacquisitionoftheOfferedShares,controlledbyanon-residentcorporationforthepurposesoftheforeignaffiliatedumpingrulesinSection212.3oftheTaxAct;(e)thatreportsits"Canadiantaxresults"inacurrencyotherthanCanadiancurrency,allasdefinedintheTaxAct;(f)thatisexemptfromtaxundertheTaxAct;or(g)thathasenteredinto,orwillenterinto,a"syntheticdispositionarrangement"ora"derivativeforwardagreement"withrespecttotheOfferedShares,asthosetermsaredefinedintheTaxAct.SuchHoldersshouldconsulttheirowntaxadvisorswithrespecttoaninvestmentinOfferedShares.

ThissummarydoesnotaddressthedeductibilityofinterestbyaHolderwhohasborrowedmoneyorotherwiseincurreddebtinconnectionwiththeacquisitionofOfferedShares.

ThissummaryisbaseduponthecurrentprovisionsoftheTaxActandtheRegulationsinforceasofthedatehereof,specificproposalstoamendtheTaxActandtheRegulations(the"TaxProposals")whichhavebeenannouncedbyoronbehalftheMinisterofFinance(Canada)priortothedatehereof,thecurrentprovisionsoftheCanada-United States Income Tax Convention (1980) (the "Canada-U.S. TaxConvention ") and counsel's understanding of the current published administrativepoliciesandassessingpracticesoftheCanadaRevenueAgency(the"CRA").ThissummaryassumesthattheTaxProposalswillbeenactedintheformproposedanddoesnottakeintoaccountoranticipateanyotherchangesinlaw,whetherbywayofjudicial,legislativeorgovernmentaldecisionoraction,nordoesittakeintoaccountprovincial, territorial or foreignincometaxlegislationorconsiderations, whichmaydiffer fromtheCanadianfederal incometaxconsiderationsdiscussedherein.NoassurancescanbegiventhattheTaxProposalswillbeenactedasproposedoratall,orthatlegislative,judicialoradministrativechangeswillnotmodifyorchangethestatementsexpressedherein.

ThissummaryisnotexhaustiveofallpossibleCanadianfederalincometaxconsiderationsapplicabletoaninvestmentinOfferedShares.Thissummaryisofageneralnatureonlyandisnotintendedtobe,norshoulditbeconstruedtobe,legalorincometaxadvicetoanyparticularHolder.Holdersshouldconsulttheirownincometaxadvisorswithrespecttothetaxconsequencesapplicabletothembasedontheirownparticularcircumstances.

AmountsDeterminedinCanadianDollars

Forpurposesof theTaxAct, all amountsrelatingtotheOfferedSharesmust beexpressedinCanadiandollars, includingcost, adjustedcostbase,proceedsofdispositionanddividends,andamountsdenominatedinU.S.dollarsmustbeconvertedtoCanadiandollarsusingtherateofexchangepublishedbytheBankofCanadaatnoon(orbeginningonMarch1,2017,thesingledailyexchangerate)ontheparticulardatetheparticularamountaroseorsuchotherrateofexchangeasmaybeacceptedby theCRA. Holders may therefore realize additional income or gain by virtue of changes in foreign exchange rates, and are advised to consult with their own taxadvisorsinthisregard.Currencytaxissuesarenotdiscussedfurtherinthissummary.

ResidentsofCanada

ThefollowingportionofthissummaryisgenerallyapplicabletoaHolderwho,forthepurposesoftheTaxAct,isresidentordeemedtoberesidentinCanadaatallrelevanttimes(each,a"ResidentHolder").CertainResidentHolderswhoseOfferedSharesmightnototherwisequalifyascapitalpropertymaybeentitledtomakeanirrevocableelectionpursuanttosubsection39(4)oftheTaxActtohavetheOfferedShares,andeveryother"Canadiansecurity"(asdefinedbytheTaxAct)ownedbysuchResidentHolderinthetaxationyearoftheelectionandinallsubsequenttaxationyears,deemedtobecapitalproperty.ResidentHoldersshouldconsulttheirowntaxadvisorsforadviceastowhetheranelectionundersubsection39(4)oftheTaxActisavailableoradvisableintheirparticularcircumstances.

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TaxationofDividendsReceivedbyResidentHolders

InthecaseofaResidentHolderwhoisanindividual(includingcertaintrusts), dividends(includingdeemeddividends)receivedon theOfferedShareswillbeincludedin the Resident Holder's incomeandbe subject to the gross-upanddividendtax credit rules applicable to taxable dividends received byanindividual fromtaxableCanadiancorporations,includingtheenhancedgross-upanddividendtaxcreditfor"eligibledividends"properlydesignatedassuchbytheCompany.TaxabledividendsreceivedbysuchResidentHoldermaygiverisetominimumtaxundertheTaxAct.

InthecaseofaResidentHolderthatisacorporation,suchdividends(includingdeemeddividends)receivedontheOfferedShareswillbeincludedintheResidentHolder'sincomeandwillnormallybedeductibleincomputingsuchResidentHolder'staxableincome.Incertaincircumstances,section55(2)oftheTaxActwilltreatataxabledividendreceivedbyaResidentHolderthatisinacorporationasproceedsofdispositionoracapitalgain.ResidentHoldersthatarecorporationsshouldconsulttheirowntaxadvisorshavingregardtotheirowncircumstances.

AResidentHolderthatisa"Canadian-controlledprivatecorporation"(asdefinedintheTaxAct)maybeliabletopayanadditionalrefundabletaxof102/3%onits"aggregateinvestmentincome"(asdefinedintheTaxAct)fortheyear,whichisdefinedtoincludeanamountinrespectofdividends.

AResidentHolderthatisa"privatecorporation"or"subjectcorporation"(assuchtermsaredefinedintheTaxAct)maybeliabletopaya381/3%refundabletaxunderPartIVoftheTaxActondividendsreceivedordeemedtobereceivedontheOfferedSharestotheextentthatsuchdividendsaredeductibleincomputingtheResidentHolder'staxableincomefortheyear.

DispositionofOfferedShares

AResidentHolderwhodisposesof,orisdeemedtohavedisposedof,anOfferedShare(otherthantotheCompany,unlesspurchasedbytheCompanyintheopenmarketinthemannerinwhichsharesarenormallypurchasedbyanymemberofthepublicintheopenmarket)willrealizeacapitalgain(orincuracapitalloss)equaltotheamount bywhichthe proceeds of dispositionin respect of the Offered Share exceed(or are exceededby) the aggregate of the adjustedcost base to the ResidentHolderofsuchOfferedShareimmediatelybeforethedispositionordeemeddispositionandanyreasonableexpensesincurredforthepurposeofmakingthedisposition.TheadjustedcostbasetoaResidentHolderofanOfferedSharewillbedeterminedbyaveragingthecostofthatOfferedSharewiththeadjustedcostbase(determinedimmediatelybeforetheacquisitionoftheOfferedShare)ofallotherCommonSharesheldascapitalpropertyatthattimebytheResidentHolder.Thetaxtreatmentofcapitalgainsandcapitallossesisdiscussedingreaterdetailbelowunderthesubheading"TaxationofCapitalGainsandLosses".

TaxationofCapitalGainsandLosses

Generally,one-halfofanycapitalgain(a"taxablecapitalgain")realizedbyaResidentHoldermustbeincludedintheResidentHolder'sincomeforthetaxationyearinwhichthedispositionoccurs.SubjecttoandinaccordancewiththeprovisionsoftheTaxAct,one-halfofanycapitallossincurredbyaResidentHolder(an"allowablecapitalloss") must generally bedeductedfromtaxable capital gains realizedby theResident Holder in thetaxationyear in whichthedispositionoccurs.Allowablecapitallossesinexcessoftaxablecapitalgainsforthetaxationyearofdispositiongenerallymaybecarriedbackanddeductedinthethreeprecedingtaxationyearsorcarriedforwardanddeductedinanysubsequentyearagainsttaxablecapitalgainsrealizedinsuchyears,inthecircumstancesandtotheextentprovidedintheTaxAct.

AcapitallossrealizedonthedispositionofanOfferedSharebyaResidentHolderthatisacorporationmayincertaincircumstancesbereducedbytheamountofdividends which have been previously received or deemed to have been received by the Resident Holder on the Offered Share. Similar rules may apply where acorporationis,directlyorindirectlythroughatrustorpartnership,amemberofapartnershiporabeneficiaryofatrustthatownsOfferedShares.AResidentHoldertowhichtheserulesmayberelevantisurgedtoconsultitsowntaxadvisor.

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Capitalgainsrealizedbyanindividual(includingcertaintrusts)mayresultintheindividualpayingminimumtaxundertheTaxAct.

AResidentHolderthatisa"Canadian-controlledprivatecorporation"(asdefinedintheTaxAct)maybeliabletopayanadditionalrefundabletaxof102/3%onits"aggregateinvestmentincome"(asdefinedintheTaxAct)fortheyear,whichisdefinedtoincludeanamountinrespectoftaxablecapitalgains.

Non-ResidentsofCanada

ThefollowingportionofthissummaryisgenerallyapplicabletoaHolderwho,forpurposesoftheTaxActandatallrelevanttimes,isneitherresidentnordeemedtoberesidentinCanadaanddoesnotuseorhold,andwillnotbedeemedtouseorhold,OfferedSharesinabusinesscarriedoninCanada(each,a"Non-ResidentHolder").Theterm"USHolder ,"forthepurposesofthissummary,meansaNon-ResidentHolderwho,forpurposesoftheCanada-U.S.TaxConvention,isatallrelevant times a resident of the United States and is a "qualifying person" within the meaning of theCanada-U.S. Tax Convention. In some circumstances, personsderiving amounts through fiscally transparent entities (including limited liability companies) may be entitled to benefits under theCanada-U.S. TaxConvention. USHolders are urged to consult their own tax advisors to determine their entitlement to benefits under the Canada-U.S. Tax Convention based on their particularcircumstances.

Specialconsiderations,whicharenotdiscussedinthissummary,mayapplytoaNon-ResidentHolderthatisaninsurerthatcarriesonaninsurancebusinessinCanadaandelsewhereoranauthorizedforeignbank(asdefinedintheTaxAct).SuchNon-ResidentHoldersshouldconsulttheirownadvisors.

TaxationofDividends

Subjecttoanapplicableinternationaltaxtreatyorconvention,dividendspaidorcredited,ordeemedtobepaidorcredited,toaNon-ResidentHolderontheOfferedShareswillbesubjecttoCanadianwithholdingtaxundertheTaxActattherateof25%ofthegrossamountofthedividend.SuchrateisgenerallyreducedundertheCanada-U.S.TaxConventionto15%ifthebeneficial ownerofsuchdividendisaU.S.Holder. Therateofwithholdingtaxisfurtherreducedto5%ifthebeneficialownerofsuchdividendis a U.S. Holder that is a companythat owns, directly or indirectly, at least 10%of the votingstockof the Company. In addition, under theCanada-U.S. TaxConvention,dividends may be exempt fromsuch Canadian withholding tax if paid to certain U.S. Holders that are qualifying religious, scientific,literary,educationalorcharitabletax-exemptorganizationsorqualifyingtrusts,companies,organizationsorarrangementsoperatedexclusivelytoadministerorprovidepension,retirementoremployeebenefitsorbenefitsfortheself-employedunderoneormorefundsorplansestablishedtoprovidepensionorretirementbenefitsorotheremployeebenefitsthatareexemptfromtaxintheUnitedStatesandthathavecompliedwithspecificadministrativeprocedures.

DispositionofOfferedShares

ANon-ResidentHolderwillnotbesubjecttotaxundertheTaxActinrespectofanycapitalgainrealizedbysuchNon-ResidentHolderonadispositionofOfferedShares,unlesstheOfferedSharesconstitute"taxableCanadianproperty"(asdefinedintheTaxAct)oftheNon-ResidentHolderatthetimeofthedispositionandarenot"treaty-protectedproperty"(asdefinedintheTaxAct)oftheNon-ResidentHolderatthetimeofthedisposition.

Generally,aslongastheOfferedSharesarethenlistedonadesignatedstockexchange(whichcurrentlyincludestheTSXandtheNYSEMKT),theOfferedShareswill not constitute taxable Canadian property of a Non-Resident Holder, unless at any time during the 60-month period immediately preceding the disposition thefollowingtwoconditionsaremetconcurrently:(a)theNon-ResidentHolder,personswithwhichtheNon-ResidentHolderdoesnotdealatarm'slength,partnershipswhosemembersinclude,eitherdirectlyorindirectlythroughoneormorepartnerships,theNon-ResidentHolderorpersonswhichdonotdealatarm'slengthwiththeNon-ResidentHolder,oranycombinationofthem,owned25%ormoreoftheissuedsharesofanyclassorseriesofsharesofthecapitalstockoftheCompany,and(b)morethan50%ofthefairmarketvalueoftheOfferedShareswasderiveddirectlyorindirectly,fromoneoranycombinationofrealorimmovablepropertysituatedinCanada,"Canadianresourceproperties","timberresourceproperties"(eachasdefinedin

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theTaxAct),andoptionsinrespectoforinterestsin,orforcivillawrightsin,anysuchproperty(whetherornotsuchpropertyexists).

InthecaseofaUSHolder,theOfferedSharesofsuchUSHolderwillgenerallyconstitute"treaty—protectedproperty"forpurposesoftheTaxActunlessthevalueoftheOfferedSharesisderivedprincipallyfromrealpropertysituatedinCanada.Forthispurpose,"realproperty"hasthemeaningthattermhasunderthelawsofCanadaandincludesanyoptionorsimilarrightinrespectthereofandusufructofrealproperty,rightstoexploreforortoexploitmineraldeposits, sourcesandothernaturalresourcesandrightstoamountscomputedbyreferencetotheamountorvalueofproductionfromsuchresources.

IfOfferedSharesaretaxableCanadianpropertyofaNon-ResidentHolderandarenottreaty-protectedpropertyoftheNon-ResidentHolderatthetimeoftheirdisposition,theconsequencesaboveunder"ResidentsofCanada—TaxationofCapitalGainsandLosses"willgenerallyapply.

Non-ResidentHolderswhoseOfferedSharesaretaxableCanadianpropertyshouldconsulttheirownadvisors.

CERTAINUNITEDSTATESFEDERALINCOMETAXCONSIDERATIONS

ThefollowingisageneralsummaryofcertainmaterialU.S.federalincometaxconsiderationsapplicabletoaU.S.Holder (asdefinedherein)arisingfromandrelatingtotheacquisition,ownership,anddispositionofOfferedSharesacquiredpursuanttothisProspectusSupplement.

This summary is for general information purposes only and does not purport to be a complete analysis or listing of all potential U.S. federal income taxconsiderationsthatmayapplytoaU.S.Holderarisingfromorrelatingtotheacquisition,ownership,anddispositionofOfferedShares.Inaddition,thissummarydoesnottakeintoaccounttheindividualfactsandcircumstancesofanyparticularU.S.HolderthatmayaffecttheU.S.federalincometaxconsequencestosuchU.S.Holder,includingspecifictaxconsequencestoaU.S.Holderunderanapplicabletaxtreaty.Accordingly,thissummaryisnotintendedtobe,andshouldnotbeconstruedas,legalorU.S.federalincometaxadvicewithrespecttoanyU.S.Holder.ThissummarydoesnotaddresstheU.S.federalalternativeminimum,U.S.federalestateandgift,U.S.stateandlocal,andnon-U.S.taxconsequencestoU.S.Holdersoftheacquisition,ownership,anddispositionofOfferedShares.Inaddition,exceptasspecificallysetforthbelow,thissummarydoesnotdiscussapplicableincometaxreportingrequirements.EachprospectiveU.S.HoldershouldconsultitsowntaxadvisorsregardingtheU.S.federal,U.S.federalalternativeminimum,U.S.federalestateandgift,U.S.stateandlocal,andnon-U.S.taxconsequencesrelatingtotheacquisition,ownershipanddispositionofOfferedShares.

No legal opinion from U.S. legal counsel or ruling from the Internal Revenue Service (the " IRS") has been requested, or will be obtained, regarding theU.S. federal incometax consequences of the acquisition, ownership, and disposition of Offered Shares. This summary is not binding on the IRS, and the IRSis notprecludedfromtakingapositionthatisdifferentfrom,orcontraryto,thepositionstakeninthissummary.Inaddition,becausetheauthoritiesonwhichthissummaryisbasedaresubjecttovariousinterpretations,theIRSandtheU.S.courtscoulddisagreewithoneormoreoftheconclusionsdescribedinthissummary.

ScopeofthisSummary

Authorities

ThissummaryisbasedontheU.S.Internal RevenueCodeof1986,asamended (the"Code"), TreasuryRegulations(whetherfinal, temporary, orproposed),publishedrulingsoftheIRS,publishedadministrativepositionsoftheIRS,theCanada-U.S.TaxConvention,andU.S.courtdecisionsthatareavailableasofthedateofthisdocument.Anyoftheauthoritiesonwhichthissummaryisbasedcouldbechangedinamaterialandadversemanneratanytime,andanysuchchangecouldbeappliedonaretroactiveorprospectivebasis,whichcouldaffecttheU.S.federalincometaxconsiderationsdescribedinthissummary.Exceptasprovidedherein,thissummarydoesnotdiscussthepotentialeffectsofanyproposedlegislation.

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U.S.Holders

Forpurposesofthissummary,theterm"U.S.Holder"meansabeneficialownerofOfferedSharesacquiredpursuanttotheOfferingthatisforU.S.federalincometaxpurposes:

• acitizenorindividualresidentoftheUnitedStates;

• a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organizedunder the laws of the United States, any statethereofortheDistrictofColumbia;

• anestatewhoseincomeissubjecttoU.S.federalincometaxationregardlessofitssource;or

• atrustthat(1)issubjecttotheprimarysupervisionofacourtwithintheU.S.andthecontrolofoneormoreU.S.personsforallsubstantialdecisionsor(2)hasavalidelectionineffectunderapplicableTreasuryRegulationstobetreatedasaU.S.person.

Non-U.S.Holders

Forpurposesofthissummary,a"non-U.S.Holder"isabeneficialownerofOfferedSharesthatisnotaU.S.Holderorapartnership.ThissummarydoesnotaddresstheU.S.federalincometaxconsequencestonon-U.S.Holdersarisingfromorrelatingtotheacquisition,ownership,anddispositionofOfferedShares.Accordingly,anon-U.S.HoldershouldconsultitsowntaxadvisorsregardingtheU.S.federal,U.S.federalalternativeminimum,U.S.federalestateandgift,U.S.stateandlocal,andnon-U.S. tax consequences (including the potential application of and operation of any incometax treaties) relating to the acquisition, ownership, anddispositionofOfferedShares.

U.S.HoldersSubjecttoSpecialU.S.FederalIncomeTaxRulesNotAddressed

This summary does not address the U.S. federal income tax considerations applicable to U.S. Holders that are subject to special provisions under the Code,including,butnotlimitedtoU.S.Holdersthat:(a)aretax-exemptorganizations,qualifiedretirementplans,individualretirementaccounts,orothertax-deferredaccounts;(b) are financial institutions, underwriters, insurance companies, real estate investment trusts, or regulated investment companies; (c) are broker-dealers, dealers,ortradersinsecuritiesorcurrenciesthatelecttoapplyamark-to-marketaccountingmethod;(d)havea"functionalcurrency"otherthantheU.S.dollar;(e)ownOfferedSharesaspartofastraddle,hedgingtransaction,conversiontransaction,constructivesale,orotherarrangementinvolvingmorethanoneposition;(f)acquiredOfferedSharesinconnectionwiththeexerciseofemployeestockoptionsorotherwiseascompensationforservices;(g)holdOfferedSharesotherthanasacapitalassetwithinthemeaningofSection1221oftheCode(generally,propertyheldforinvestmentpurposes);(h)aresubjecttothealternativeminimumtax;or(i)ownorhaveownedorwillown(directly,indirectly,orbyattribution)10%ormoreofthetotalcombinedvotingpoweroftheoutstandingsharesoftheCompany.ThissummaryalsodoesnotaddresstheU.S.federalincometaxconsiderationsapplicabletoU.S.Holderswhoare:(a)U.S.expatriatesorformerlong-termresidentsoftheU.S.;(b)personsthathavebeen,are,orwillbearesidentordeemedtobearesidentinCanadaforpurposesoftheTaxAct;(c)personsthatuseorhold,willuseorhold,orthatareorwillbedeemedtouseorholdOfferedSharesinconnectionwithcarryingonabusinessinCanada;(d)personswhoseOfferedSharesconstitute"taxableCanadianproperty"undertheTaxAct;or(e)personsthathaveapermanentestablishmentinCanadaforthepurposesoftheCanada-U.S.TaxConvention.U.S.Holdersthataresubjecttospecial provisions under the Code, including, but not limited to, U.S. Holders described immediately above, should consult their own tax advisors regarding theU.S.federal,U.S.federalalternativeminimum,U.S.federalestateandgift,U.S.stateandlocal,andnon-U.S.taxconsequencesrelatingtotheacquisition,ownershipanddispositionofOfferedShares.

In particular, it is notedthat the Companymaybeor maybecomea "controlled foreign corporation" for U.S. federal incometaxpurposes, andtherefore, if aU.S.HolderisaU.S.shareholderowning10%ormoreoftheCompany'svotingstockdirectly,indirectlyand/orundertheapplicableattributionrules,theU.S.federalincometaxconsequencestosuchU.S.HolderofowningOfferedSharesmaybesignificantlydifferentthanthosedescribedbelowinseveralrespects.IfaU.S.Holderowns 10% or more of the Company's voting stock directly, indirectly and/or under the applicable attribution rules, such holder should consult its own tax advisorsregardingtheU.S.federalincometaxrulesapplicabletoaninvestmentinacontrolledforeigncorporation.

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If an entity or arrangement that is classified as a partnership (or other "pass-through" entity) for U.S. federal income tax purposes holds Offered Shares, theU.S.federalincometaxconsequencestosuchentityandthepartners(orotherowners)ofsuchentitygenerallywilldependontheactivitiesoftheentityandthestatusofsuchpartners(orowners).Thissummarydoesnotaddressthetaxconsequencestoanysuchentityorowner.Partners(orotherowners)ofentitiesorarrangementsthatareclassifiedaspartnershipsoras"pass-through"entitiesforU.S.federalincometaxpurposesshouldconsulttheirowntaxadvisorsregardingtheU.S.federalincometaxconsequencesarisingfromandrelatingtotheacquisition,ownership,anddispositionofOfferedShares.

OwnershipandDispositionofOfferedSharestotheExtentthatthePassiveForeignInvestmentCompanyRulesdonotApply

Thefollowingdiscussionissubject,initsentirety,totherulesdescribedbelowundertheheading"PassiveForeignInvestmentCompanyRules".

DistributionsonOfferedShares

AU.S.Holderthatreceivesadistribution,includingaconstructivedistribution,withrespecttoanOfferedSharewillbe requiredtoincludetheamountofsuchdistributioningrossincomeasadividend(withoutreductionforanyCanadianincometaxwithheldfromsuchdistribution)totheextentofthecurrentoraccumulated"earningsandprofits"oftheCompany,ascomputedforU.S.federalincometaxpurposes.Totheextentthatadistributionexceedsthecurrentandaccumulated"earningsandprofits"of the Company, suchdistribution will be treated first as a tax-free return of capital to the extent of a U.S. Holder's tax basis in the Offered Shares andthereafterasgainfromthesaleorexchangeofsuchOfferedShares.(See"SaleorOtherTaxableDispositionofOfferedShares"below).However,theCompanydoesnotintendtomaintainthecalculationsofitsearningsandprofitsinaccordancewithU.S.federalincometaxprinciples,andeachU.S.HolderthereforeshouldassumethatanydistributionbytheCompanywithrespecttotheOfferedShareswillconstituteordinarydividendincome.DividendsreceivedonOfferedShareswillnotbeeligibleforthe"dividendsreceiveddeduction".SubjecttoapplicablelimitationsandprovidedtheCompanyiseligibleforthebenefitsoftheCanada-U.S.TaxConventionortheOfferedSharesarereadilytradableonaUnitedStatessecuritiesmarket,dividendspaidbytheCompanytonon-corporateU.S.Holders,includingindividuals,generallywill be eligible for the preferential tax rates applicable to long-term capital gains for dividends, provided certain holding period and other conditions are satisfied,including that the Company not be classified as a PFIC(as defined herein) in the tax year of distribution or in the preceding tax year. If the Company is aPFIC,adividendgenerallywillbetaxedtoaU.S.Holderatordinaryincometaxrates.Thedividendrulesarecomplex,andeachU.S.Holdershouldconsultitsowntaxadvisorsregardingtheapplicationofsuchrules.

SaleorOtherTaxableDispositionofOfferedShares

UponthesaleorothertaxabledispositionofOfferedShares,aU.S.Holdergenerallywillrecognizecapitalgainorlossinanamountequaltothedifferencebetweenthe U.S. dollar value of cash received plus the fair market value of anyproperty received andsuch U.S. Holder's tax basis in suchOffered Shares soldorotherwisedisposedof.AU.S.Holder'staxbasisinOfferedSharesgenerallywillbesuchU.S.Holder'sU.S.dollarcostforsuchOfferedShares.Gainorlossrecognizedonsuchsaleorotherdispositiongenerallywillbelong-termcapitalgainorlossif,atthetimeofthesaleorotherdisposition,theOfferedShareshavebeenheldformorethanoneyear.

Preferentialtaxratescurrentlyapplytolong-termcapitalgainofaU.S.Holderthatisanindividual,estate,ortrust.Therearenopreferentialtaxratesforlong-termcapitalgainofaU.S.Holderthatisacorporation.DeductionsforcapitallossesaresubjecttosignificantlimitationsundertheCode.

PassiveForeignInvestmentCompanyRules

IftheCompanyweretoconstitutea"passiveforeigninvestmentcompany"("PFIC")foranyyearduringaU.S.Holder'sholdingperiod,thencertainpotentiallyadverseruleswouldaffecttheU.S.federalincometaxconsequencestoaU.S.Holderresultingfromtheacquisition,ownershipanddispositionofOfferedShares.

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Basedoncurrentbusinessplansandfinancialexpectations,theCompanyexpectsthatitshouldnotbeaPFICforitscurrenttaxyearandexpectsthatitshouldnotbeaPFICfortheforeseeablefuture.NoopinionoflegalcounselorrulingfromtheIRSconcerningthestatusoftheCompanyasaPFIChasbeenobtainedoriscurrentlyplannedtoberequested.However,PFICclassificationisfundamentallyfactualinnature,generallycannotbedetermineduntilthecloseofthetaxyearinquestion,andisdetermined annually. Additionally, the analysis depends, in part, on the application of complex U.S. federal income tax rules, which are subject to differinginterpretations.Consequently,therecanbenoassurancethattheCompanyhasneverbeen,andwillnotbecome,aPFICforanytaxyearduringwhichU.S.HoldersholdOfferedShares.

InanyyearinwhichtheCompanyis classifiedasaPFIC,aU.S.Holderwill berequiredtofile anannual report withtheIRScontainingsuchinformationasTreasuryRegulationsand/orotherIRSguidancemayrequire.Inadditiontopenalties,afailuretosatisfysuchreportingrequirementsmayresultinanextensionofthetimeperiodduringwhichtheIRScanassessatax.U.S.Holdersshouldconsulttheirowntaxadvisorsregardingtherequirementsoffilingsuchinformationreturnsundertheserules,includingtherequirementtofileanIRSForm8621annually.

TheCompanygenerallywillbeaPFICif,aftertheapplicationofcertain"look-through"ruleswithrespecttosubsidiariesinwhichtheCompanyholdsatleast25%ofthevalueofsuchsubsidiary,forataxyear,(a)75%ormoreofthegrossincomeoftheCompanyforsuchtaxyearispassiveincome(the"incometest")or(b)50%ormoreofthevalueoftheCompany'sassetseitherproducepassiveincomeorareheldfortheproductionofpassiveincome(the"assettest"),basedonthequarterlyaverageofthefairmarketvalueofsuchassets."Grossincome"generallyincludesallsalesrevenueslessthecostofgoodssold,plusincomefrominvestmentsandfromincidentaloroutsideoperationsorsources,and"passiveincome"generallyincludes,forexample,dividends,interest,certainrentsandroyalties,certaingainsfromthesaleofstockandsecurities, andcertaingainsfromcommoditiestransactions.Activebusinessgainsarisingfromthesaleofcommoditiesgenerallyareexcludedfrompassiveincomeifsubstantiallyall(85%ormore)ofaforeigncorporation'scommoditiesarestockintradeorinventory,depreciablepropertyusedinatradeorbusinessorsuppliesregularlyusedorconsumedintheordinarycourseofitstradeorbusiness,andcertainotherrequirementsaresatisfied.

IftheCompanywereaPFICinanytaxyearduringwhichaU.S.HolderheldOfferedShares,suchU.S.Holdergenerallywouldbesubjecttospecialruleswithrespectto"excessdistributions"madebytheCompanyontheOfferedSharesandwithrespecttogainfromthedispositionofOfferedShares.An"excessdistribution"generally is defined as the excess of distributions with respect to the Offered Shares received by a U.S. Holder in any tax year over 125% of the average annualdistributionssuchU.S.HolderhasreceivedfromtheCompanyduringtheshorterofthethreeprecedingtaxyears,orsuchU.S.Holder'sholdingperiodfortheOfferedShares.Generally,aU.S.HolderwouldberequiredtoallocateanyexcessdistributionorgainfromthedispositionoftheOfferedSharesrateablyoveritsholdingperiodfortheOfferedShares.Suchamountsallocatedtotheyearofthedispositionorexcessdistributionwouldbetaxedasordinaryincome,andamountsallocatedtopriortaxyears would be taxed as ordinary income at the highest tax rate in effect for each such year and an interest charge at a rate applicable to underpayments of taxwouldapply.

WhilethereareU.S.federal incometaxelectionsthatsometimescanbemadetomitigatetheseadversetaxconsequences(includingthe"QEFElection"underSection1295oftheCodeandthe"Mark-to-MarketElection"underSection1296oftheCode),suchelectionsareavailableinlimitedcircumstancesandmustbemadeinatimelymanner.

U.S.Holders shouldbeawarethat,foreachtaxyear,ifany,thattheCompanyisaPFIC,theCompanycanprovidenoassurancesthatitwillsatisfytherecordkeeping requirements or make available to U.S. Holders the information such U.S. Holders require to make a QEF Election with respect to the Company or anysubsidiarythatalsoisclassifiedasaPFIC.U.S.HoldersshouldconsulttheirowntaxadvisorsregardingthepotentialapplicationofthePFICrulestotheownershipanddispositionofOfferedShares,andtheavailabilityofcertainU.S.taxelectionsunderthePFICrules.

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AdditionalConsiderations

AdditionalTaxonPassiveIncome

CertainU.S.Holdersthatareindividuals,estatesortrusts(otherthantruststhatareexemptfromtax)willbesubjecttoa3.8%taxonalloraportionoftheir"netinvestmentincome",whichincludesdividendsontheOfferedShares,andnetgainsfromthedispositionoftheOfferedShares.SpecialrulesapplytoPFICs.U.S.Holdersthat are individuals, estates or trusts should consult their own tax advisors regarding the applicability of this tax to any of their income or gains in respect of theOfferedShares.

ReceiptofForeignCurrency

TheamountofanydistributionpaidtoaU.S.Holderinforeigncurrency,oronthesale,exchangeorothertaxabledispositionofOfferedShares,generallywillbeequal to the U.S. dollar value of such foreign currency based on the exchange rate applicable on the date of receipt (regardless of whether such foreign currencyisconvertedintoU.S.dollarsatthattime).AU.S.HolderwillhaveataxbasisintheforeigncurrencyequaltoitsU.S.dollarvalueonthedateofreceipt.AnyU.S.Holderwhoconvertsorotherwisedisposesoftheforeigncurrencyafterthedateofreceiptmayhaveaforeigncurrencyexchangegainorlossthatwouldbetreatedasordinaryincomeorloss,andgenerallywillbeU.S.sourceincomeorlossforforeigntaxcreditpurposes.DifferentrulesapplytoU.S.Holderswhousetheaccrualmethodoftaxaccounting.EachU.S.HoldershouldconsultitsownU.S.taxadvisorsregardingtheU.S.federalincometaxconsequencesofreceiving,owning,anddisposingofforeigncurrency.

ForeignTaxCredit

SubjecttothePFICrulesdiscussedabove,aU.S.Holderthatpays(whetherdirectlyorthroughwithholding)CanadianincometaxwithrespecttodividendspaidontheOfferedSharesgenerallywill beentitled, attheelectionofsuchU.S.Holder, toreceiveeitheradeductionoracredit forsuchCanadianincometax.Generally,acredit will reduce a U.S. Holder's U.S. federal income tax liability on a dollar-for-dollar basis, whereas a deduction will reduce a U.S. Holder's income subject toU.S.federalincometax.Thiselectionismadeonayear-by-yearbasisandappliestoallforeigntaxespaid(whetherdirectlyorthroughwithholding)byaU.S.Holderduringayear.

Complex limitations apply to the foreign tax credit, including the general limitation that the credit cannot exceed the proportionate share of a U.S. Holder'sU.S. federal income tax liability that such U.S. Holder's "foreign source" taxable income bears to such U.S. Holder's worldwide taxable income. In applying thislimitation, a U.S. Holder's various items of income and deduction must be classified, under complex rules, as either "foreign source" or "U.S. source". Generally,dividendspaidbyaforeigncorporationshouldbetreatedasforeignsourceforthispurpose.However,andsubjecttocertainexceptions,aportionofthedividendspaidbyaforeigncorporationwillbetreatedasU.S.sourceincomeforU.S.foreigntaxcreditpurposes,inproportiontoitsU.S.sourceearningsandprofits,ifU.S.personsown,directlyorindirectly,50percentormoreofthevotingpowerorvalueoftheforeigncorporation'scommonshares.IfaportionofanydividendspaidwithrespecttotheOfferedSharesaretreatedasU.S.sourceincomeundertheserules,itmaylimittheabilityofaU.S.HoldertoclaimaforeigntaxcreditforCanadianwithholdingtaxesimposedinrespectofsuchdividend.Inaddition,theamountofadistributionwithrespecttotheOfferedSharesthatistreatedasa"dividend"maybelowerforU.S.federalincometaxpurposesthanitisforCanadianfederalincometaxpurposes,resultinginareducedforeigntaxcreditallowancetoaU.S.Holder.WithrespecttogainsrecognizedonthesaleofstockofaforeigncorporationbyaU.S.Holder, suchgainsaregenerallytreatedasU.S.sourceforpurposesof theforeigntaxcredit.Theselimitationsarecalculatedseparatelywithrespecttospecificcategoriesofincome.Theforeigntaxcreditrulesarecomplex,andeachU.S.HoldershouldconsultitsownU.S.taxadvisorsregardingtheforeigntaxcreditrules.

BackupWithholdingandInformationReporting

UnderU.S.federalincometaxlawandTreasuryRegulations,certaincategoriesofU.S.Holdersmustfileinformationreturnswithrespecttotheirinvestmentin,orinvolvementin,aforeigncorporation.Forexample,U.S.returndisclosureobligations(andrelatedpenalties)areimposedonindividualswhoareU.S.Holdersthat

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holdcertain specified foreign financial assets in excess of certain threshold amounts. The definition of specified foreign financial assets includes not only financialaccounts maintained in foreign financial institutions, but also, unless held in accounts maintained by a financial institution, any stock or security issued by a non-U.S.person,anyfinancial instrumentorcontract heldfor investmentthathasanissuerorcounterpartyotherthanaU.S.personandanyinterest inanon-U.S.entity.U.S.HoldersmaybesubjecttothesereportingrequirementsunlesstheirOfferedSharesareheldinanaccountatcertainfinancialinstitutions.Penaltiesforfailuretofilecertainoftheseinformationreturnsaresubstantial.U.S.Holdersshouldconsulttheirowntaxadvisorsregardingtherequirementsoffilinginformationreturns,includingtherequirementtofileanIRSForm8938.

PaymentsmadewithintheU.S.orbyaU.S.payororU.S.middleman,ofdividendson,andproceedsarisingfromthesaleorothertaxabledispositionof,OfferedShareswillgenerallybesubjecttoinformationreportingandbackupwithholdingtaxattherateof28%ifaU.S.Holder(a)failstofurnishsuchU.S.Holder'scorrectU.S.taxpayeridentificationnumber(generallyonIRSFormW-9), (b) furnishesanincorrect U.S.taxpayeridentificationnumber, (c) is notifiedbytheIRSthat suchU.S.Holderhaspreviouslyfailedtoproperlyreportitemssubjecttobackupwithholdingtax,or(d)failstocertify,underpenaltyofperjury,thatsuchU.S.HolderhasfurnisheditscorrectU.S.taxpayeridentificationnumberandthattheIRShasnotnotifiedsuchU.S.Holderthatitissubjecttobackupwithholdingtax.However,certainexempt persons generally are excluded from these information reporting and backup withholding rules. Backup withholding is not an additional tax. Any amountswithheldundertheU.S.backupwithholdingtaxruleswillbeallowedasacreditagainstaU.S.Holder'sU.S.federalincometaxliability,ifany,orwillberefunded,ifsuchU.S.HolderfurnishesrequiredinformationtotheIRSinatimelymanner.

ThediscussionofreportingrequirementssetforthaboveisnotintendedtoconstituteanexhaustivedescriptionofallreportingrequirementsthatmayapplytoaU.S.Holder.AfailuretosatisfycertainreportingrequirementsmayresultinanextensionofthetimeperiodduringwhichtheIRScanassessatax,andundercertaincircumstances,suchanextensionmayapplytoassessmentsofamountsunrelatedtoanyunsatisfiedreportingrequirement.EachU.S.Holdershouldconsultitsowntaxadvisorregardingtheinformationreportingandbackupwithholdingrules.

DESCRIPTIONOFTHESECURITIESBEINGDISTRIBUTED

TheCompanyisauthorizedtoissueanunlimitednumberofCommonShareswithoutparvalueofwhich113,372,437CommonShareswereissuedandoutstandingasatthedatehereof.ShareholdersareentitledtoreceivenoticeofandattendallmeetingsofshareholderswitheachCommonShareheldentitlingtheholdertoonevoteonanyresolutiontobepassedatsuchshareholdermeetings.Shareholdersareentitledtodividendsif,asandwhendeclaredbytheboardofdirectorsoftheCompany.Shareholders are entitled upon liquidation, dissolution or winding-up of the Company to receive the remaining assets of the Company available for distribution toshareholders.

PLANOFDISTRIBUTION

UndertheUnderwritingAgreement, theCompanyhasagreedtosell, andtheUnderwritershaveseverallyagreedtopurchase, onthe ClosingDate,17,125,000OfferedSharesattheOfferingPrice,payableincashtotheCompany,againstdeliveryoftheOfferedShares,subjecttocompliancewithallnecessarylegalrequirementsandtotheconditionscontainedintheUnderwritingAgreement.

TheobligationsoftheUnderwritersundertheUnderwritingAgreementareseveralandarenotjoint,norjointandseveral,andmaybeterminatedattheirdiscretionupontheoccurrenceofcertainstatedeventsassetoutintheUnderwritingAgreement.TheUnderwritersare,however,obligatedtotakeupandpayforalloftheOfferedShares(otherthantheOver-AllotmentShares)ifanyoftheOfferedSharesarepurchasedundertheUnderwritingAgreement.

TheOfferingPricewasdeterminedbynegotiationbetweentheCompanyandtheUnderwriters.

OfferedSharessoldbytheUnderwriterstothepublicwillinitiallybeofferedattheOfferingPrice.AftertheUnderwritershavemadeareasonableefforttosellalloftheOfferedSharesattheOfferingPricespecifiedonthecoverpage,theUnderwritersmaychangetheOfferingPriceandtheothersellingtermstoanamountnot

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greaterthantheOfferingPricesetforthonthecoverofthisProspectusSupplement,andthecompensationrealizedbytheUnderwriterswillbedecreasedbytheamountthattheaggregatepricepaidbythepurchasersfortheOfferedSharesislessthanthegrossproceedspaidbytheUnderwriterstotheCompany.UponexecutionoftheUnderwritingAgreement,theUnderwriterswillbeobligatedtopurchasetheOfferedSharesatthepricesanduponthetermsstatedthereinand,asaresult,willthereafterbearanyriskassociatedwithchangingtheOfferingPriceorothersellingterms.

ItisexpectedthattheOfferingwillbeconductedunderthebook-basedsystemandtheCompanywillarrangefortheinstantdepositoftheOfferedSharestoberegisteredtoCDS.Accordingly,asubscriberwhopurchasesOfferedShareswillreceiveacustomerconfirmationfromtheUnderwritersoraCDSParticipantfromorthroughwhomOfferedSharesarepurchased.NobeneficialholderoftheOfferedShareswillreceivedefinitivecertificatesrepresentingtheirOfferedShares.CDSwillrecordtheCDSParticipantswhoholdtheOfferedSharesonbehalfofownerswhohavepurchasedortransferredtheOfferedSharesinaccordancewiththebook-basedsystem.

TheOfferingisbeingmadeconcurrentlyineveryprovinceofCanada,otherthanQuébec,andintheUnitedStatespursuanttotheMJDS.TheOfferedShareswillbeofferedintheUnitedStatesandCanadabytheUnderwriterseitherdirectlyorthroughtheirrespectiveU.S.orCanadianbroker-dealeraffiliatesoragents,asapplicable.OffersandsalesofOfferedSharesoutsideofCanadaandtheUnitedStateswillbemadeinaccordancewithapplicablelawsinsuchjurisdictions.

TheCommonSharesarelistedfortradingontheTSXandNYSEMKTunderthetradingsymbols"PTM"and"PLG",respectively.

Subscriptions will bereceivedsubjecttorejectionorallotmentinwholeorinpart andtherightisreservedtoclosethesubscriptionbooksat anytimewithoutpriornotice.

TheOfferingisexpectedtocloseonoraboutJanuary31,2017.UnderRule15c6-1undertheU.S.ExchangeAct,tradesinthesecondarymarketgenerallyarerequiredtosettleinthreebusinessdays,unlessthepartiestoanysuchtradeexpresslyagreeotherwise.Accordingly,purchaserswhowishtotradetheirOfferedSharesonthedateofthisProspectusSupplementorthenexttwosucceedingbusinessdayswillberequired,byvirtueofthefactthattheOfferedSharesinitiallywillsettleT+5,tospecifyanalternatesettlementcycleatthetimeofanysuchtradetopreventafailedsettlement.PurchasersofOfferedShareswhowishtotradesuchOfferedSharesonthedateofthisProspectusSupplementorthenexttwosucceedingbusinessdaysshouldconsulttheirownadvisor.

Over-AllotmentOption

TheCompanyhasgrantedtheUnderwriterstheOver-AllotmentOption,exercisableinwholeorinpart,atthesolediscretionoftheUnderwriters,foraperiodof30daysafterandincludingtheClosingDate,topurchaseuptoanadditional2,568,750Over-AllotmentSharesattheOfferingPrice,tocoverover-allotments,ifany,andformarketstabilizationpurposes.

ThisProspectusSupplementandtheProspectusalsoqualifythegrantoftheOver-AllotmentOptionandthedistributionoftheOver-AllotmentShares.

UnderwritingCommission

ThefollowingtableshowstheperOfferedShareandtotalUnderwritingCommissiontheCompanywillpaytotheUnderwriters,assumingbothnoexerciseandfullexerciseoftheOver-AllotmentOption.

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Over-AllotmentOptionnotexercised

Over-AllotmentOptionfullyexercised

PerOfferedShare US$ 0.0876 US$ 0.0876Total US$ 1,500,150 US$ 1,725,173

The Company estimates that the total expenses of the Offering payable by the Company, not including the Underwriting Commission, will be approximatelyUS$650,000.PursuanttotheUnderwritingAgreement,theCompanyhasagreedtopaytheactualandaccountableout-of-pocketexpensesoftheUnderwritersandactualandaccountable reasonable fees anddisbursements of theUnderwriters' counsel, not to exceed8.99%ofthegrossproceedsof theOfferingwhencombinedwiththeUnderwriting Commission and any advisory fees paid or payable to any of the Underwriters and disclosed in this Prospectus Supplement that are deemed to beunderwriters'compensationwithinthemeaningoftherulesoftheFinancialIndustryRegulatoryAuthority,Inc.

NoSalesofSimilarSecurities

ExceptascontemplatedbytheUnderwritingAgreement,theCompanyhasagreedthat,subjecttocertainexceptions,itwillnot,withoutthepriorwrittenconsentofBMONesbitt Burns Inc. (not to be unreasonably withheld) on behalf of the Underwriters, directly or indirectly issue, offer, pledge, sell, contract to sell, contract topurchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer, lend or dispose of directly or indirectly, anyCommonSharesorsecuritiesorotherfinancialinstrumentsconvertibleintoorhavingtherighttoacquireCommonSharesorenterintoanyagreementorarrangementunderwhichtheCompanywouldacquireortransfertoanother,inwholeorinpart,anyoftheeconomicconsequencesofownershipofCommonShares,whetherthatagreementorarrangementmaybesettledbythedeliveryofCommonSharesorothersecuritiesorcash,oragreetobecomeboundtodoso,ordisclosetothepublicanyintentiontodoso,duringtheperiodfromthedateoftheUnderwritingAgreementandending90daysfollowingtheClosingDate.

The Company's officers and directors will enter into agreements providing that, subject to certain exceptions, for a period beginning from the date of theUnderwriting Agreement and ending 90 days from the Closing Date, they will not (and shall cause their affiliates not to), without the prior written consent ofBMONesbittBurnsInc.,directlyorindirectly,offer,sell,contracttosell,transfer,assign,pledge,grantanyoptiontopurchase,makeanyshortsaleorotherwisedisposeoformonetizeanyCommonSharesoranyoptionsorwarrantstopurchaseanyCommonShares,oranysecuritiesconvertibleinto,exchangeablefor,orthatrepresenttherighttoreceiveCommonShares,andwillnotenterintoanyswap,forwardorotherarrangementthattransfersalloraportionoftheeconomicconsequencesassociatedwiththeownershipoftheCommonShares(regardlessofwhetheranysucharrangementistobesettledbythedeliveryofsecuritiesoftheCompany,securitiesofanotherperson,cashorotherwise)oragreetodoanyoftheforegoingorpubliclyannounceanyintentiontodoanyoftheforegoing.

IndemnificationandContribution

TheCompanyhas agreedin the Underwriting Agreement to indemnify the Underwriters against certain liabilities, includingliabilities undertheUnitedStatesSecuritiesActof1933,asamended(the"U.S.SecuritiesAct"),andCanadiansecuritieslaws,and,wheresuchindemnificationisunavailable,tocontributetopaymentsthattheUnderwritersmayberequiredtomakeinrespectofsuchliabilities.

PriceStabilization,ShortPositions

InordertofacilitatetheOffering,theUnderwritersmayengageintransactionsthatstabilize,maintainorotherwiseaffectthemarketpriceoftheCommonSharesinaccordancewithapplicablesecurities laws. Specifically, theUnderwriters maysell moreCommonSharesthantheyareobligatedtopurchaseundertheUnderwritingAgreement, creating a short position. A short sale is covered if the short position is no greater than the number of Common Shares available for purchase by theUnderwritersundertheOver-AllotmentOption.TheUnderwriterscancloseoutacoveredshortsalebyexercisingtheOver-AllotmentOptionorpurchasingCommonSharesintheopenmarket.IndeterminingthesourceofCommonSharestocloseoutacoveredshortsale,theUnderwriterswillconsider,amongotherthings,theopenmarket price of CommonSharescomparedtotheprice available under theOver-Allotment Option. TheUnderwritersmayalsosell CommonShares in excess of theOver-AllotmentOption,creatinganakedshortposition.TheUnderwritersmustcloseoutanynakedshortpositionbypurchasingCommonSharesintheopenmarket.AnakedshortpositionismorelikelytobecreatediftheUnderwritersareconcernedthattheremaybedownwardpressureonthepriceoftheCommonSharesintheopenmarketafterpricingthatcouldadverselyaffectinvestorswho

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purchaseintheOffering.AsanadditionalmeansoffacilitatingtheOffering,theUnderwritersmaybidfor,andpurchase,CommonSharesintheopenmarkettostabilizethepriceoftheCommonShares.TheseactivitiesmayraiseormaintainthemarketpriceoftheCommonSharesaboveindependentmarketlevelsorpreventorretardadeclineinthemarketpriceoftheCommonShares.TheUnderwritersarenotrequiredtoengageintheseactivitiesandmayendanyoftheseactivitiesatanytime.

PursuanttothepoliciesofcertainCanadiansecuritiesregulators,theUnderwritersmaynot,throughouttheperiodofdistributionunderthisProspectusSupplement,bidfororpurchaseCommonShares.Theforegoingrestrictionissubjecttocertainexceptions,including:(a)abidorpurchasepermittedunderthebylawsandrulesofapplicableregulatoryauthoritiesandstockexchanges,includingtheUniversalMarketIntegrityRulesforCanadianMarketplacesadministeredbytheInvestmentIndustryRegulatoryOrganizationofCanada,relatingtomarketstabilizationandpassivemarket-makingactivities; (b)abidorpurchasemadeforandonbehalfofacustomerwheretheorderwasnotsolicitedduringtheperiodofdistribution;(c)abidorpurchasetocoverashortpositionenteredintopriortothedistribution;and(d)transactionsincompliancewithU.S.federalsecuritieslaws.AnysuchtradesarepermittedonlyontheconditionthatthebidorpurchaseisnotengagedinforthepurposeofcreatingactualorapparentactivetradinginorraisingthepriceoftheCommonShares.

Affiliations

SomeoftheUnderwritersandtheiraffiliateshaveinthepastengagedin,andmayinthefutureengagein,investmentbankingandothercommercialdealingsintheordinarycourseofbusinesswiththeCompanyforwhichtheyhavereceived,andwouldexpecttoreceive,customaryfeesandcommissions.

Withoutlimitingtheforegoing,since2011,theCompanyhasengagedBMONesbittBurnsInc.asafinancialadvisor,andsince2015,theCompanyhasengagedBMONesbittBurnsInc.andMacquarieCapitalMarketsCanadaLtd.asco-financialadvisors,toevaluatecertainpotentialstrategictransactions.BMONesbittBurnsInc.andMacquarieCapital Markets CanadaLtd. areUnderwriters intheOffering. Todate, notransactionorindependence-basedfeeshavebeenpaidorbecomepayablepursuanttothesearrangementstoBMONesbittBurnsInc.MacquarieCapitalMarketsCanadaLtd.receivedUS$50,000inadvisoryfeesforDecember2016,andmayreceiveadditionaladvisoryfeesofuptoUS$100,000withinthe90-dayperiodafterthedateofthisProspectusSupplement.SuchfeesmaybedeemedtobeunderwritingcompensationinconnectionwiththeOfferingundertherulesoftheFinancialIndustryRegulatoryAuthority,Inc.

NoticetoProspectiveInvestorsintheEuropeanEconomicArea

InrelationtoeachmemberstateoftheEuropeanEconomicAreathathasimplementedtheProspectusDirective(each,a"RelevantMemberState"),witheffectfromandincludingthedateonwhichtheProspectusDirectiveisimplementedinthatRelevantMemberState(the"RelevantImplementationDate"),anofferoftheOfferedSharesdescribedinthisProspectusSupplementwillnotbemadetothepublicinthatRelevantMemberStateotherthan:

• topersonsorentitiesthatare"qualifiedinvestors"asdefinedintheProspectusDirective;

• to fewer than 150 natural or legal persons (other than "qualified investors" as defined in the ProspectusDirective), as permitted under the ProspectusDirective,subjecttoobtainingthepriorconsentoftherepresentativesforanysuchoffer;or

• inanyothercircumstanceswithinArticle3(2)oftheProspectusDirectivethatdonotrequirethepublicationofaprospectuspursuanttotheProspectusDirective,

• provided that no such offering of Offered Shares shall require the publication of a prospectus pursuant toArticle 3 of the Prospectus Directive or tosupplementaprospectuspursuanttoArticle16oftheProspectusDirective.

Each purchaser of Offered Shares described in this Prospectus Supplement located within a Relevant Member State will be deemed to have represented,acknowledgedandagreedthatitisa"qualifiedinvestor"withinthemeaningofArticle2(1)(e)oftheProspectusDirectiveandinthecaseofanyOfferedSharesacquiredbyitasafinancialintermediary,asthattermisusedinArticle3(2)oftheProspectusDirective,theOffered

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SharesacquiredbyitintheOfferinghavenotbeenacquiredonbehalfof,norhavetheybeenacquiredwithaviewtotheirofferorresaleto,personsinanyRelevantMemberStateotherthan"qualifiedinvestors"asdefinedintheProspectusDirective.InthecaseofanyOfferedSharesbeingofferedtoafinancialintermediaryasthattermisusedinArticle3(2)oftheProspectusDirective,eachsuchfinancialintermediarywillbedeemedtohaverepresented,acknowledgedandagreedthattheOfferedSharesacquiredbyitintheOfferinghavenotbeenacquiredonanondiscretionarybasisonbehalfof,norhavetheybeenacquiredwithaviewtotheirofferorresaletopersonsincircumstanceswhichmaygiverisetoanofferofanyOfferedSharestothepublicotherthantheirofferorresaleinaRelevantMemberStateto"qualifiedinvestors"assodefined.

TheCompanyandtheUnderwritersandtheiraffiliateswillrelyuponthetruthandaccuracyoftheforegoingrepresentation,acknowledgementandagreement.

For the purpose of the above provisions, the expression "an offer to the public" in relation to any Offered Shares in any Relevant Member State means thecommunicationinanyformandbyanymeansofsufficientinformationonthetermsoftheofferandtheOfferedSharestobeofferedsoastoenableaninvestortodecidetopurchaseorsubscribefortheOfferedShares,asthesamemaybevariedintheRelevantMemberState,byanymeasureimplementingtheProspectusDirectiveintheRelevantMemberStateandtheexpression"ProspectusDirective"meansDirective2003/71/EC(andanyamendmentsthereto),includingDirective2010/73/EU.

NoticetoProspectiveInvestorsintheUnitedKingdom

TheOfferedSharesarebeingofferedonlyincircumstancesthatcomplyandwillcomplywithallapplicableprovisionsoftheFinancialServicesandMarketsAct2000(the"FSMA")withrespecttoanythingdoneinrelationtosuchofferin,fromorotherwiseinvolvingtheUnitedKingdom;andanyinvitationorinducementtoengageininvestmentactivity(withinthemeaningofSection21oftheFSMA)willonlybecommunicatedorcausedtobecommunicatedinconnectionwiththeissueorsaleoftheOfferedSharesincircumstancesinwhichSection21(1)oftheFSMAdoesnotapply.

ThisProspectusSupplementisonlybeingdistributedto,andisonlydirectedat,personsintheUnitedKingdomthatare"qualifiedinvestors"withinthemeaningofArticle2(1)(e)oftheProspectusDirective(asdefinedherein)andSection86(7)oftheFSMAthatarealso(a)investmentprofessionalsfallingwithinArticle19(5)oftheFinancialServicesandMarketsAct2000(FinancialPromotion)Order2005,asamended(the"Order"),or(b)highnetworthentities,andotherpersonstowhomitmay lawfully be communicated, falling withinArticle 49(2)(a) to (d) of the Order (each such person being referred to as a " relevant person"). This ProspectusSupplementanditscontentsareconfidentialandshouldnotbedistributed,publishedorreproduced(inwholeorinpart)ordisclosedbyrecipientstoanyotherpersonsintheUnitedKingdom.AnypersonintheUnitedKingdomthatisnotarelevantpersonshouldnotactorrelyonthisdocumentoranyofitscontents.

LEGALMATTERS

CertainlegalmattersinconnectionwiththeOfferingwillbepassedupononbehalfoftheCompanybyGowlingWLG(Canada)LLP,astoCanadianlegalmatters,andDorsey&WhitneyLLP,astoU.S.legalmatters.CertainlegalmattersinconnectionwiththeOfferingwillbepassedupononbehalfoftheUnderwritersbyBlake,Cassels&GraydonLLP,astoCanadianlegalmatters,andSkadden,Arps,Slate,Meagher&FlomLLP,astoU.S.legalmatters.

AsofthedateofthisProspectusSupplement,thepartnersandassociatesofGowlingWLG(Canada)LLPandBlake,Cassels&GraydonLLPbeneficiallyown,directlyorindirectly,intheaggregatelessthan1%oftheissuedandoutstandingCommonShares.

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INTERESTOFEXPERTS

Thetechnical information, mineral reserveandmineral resourceestimates andeconomicestimates relatingtotheMaseveMine, theWaterbergProjectandtheCompany'sotherpropertiesincludedorincorporatedbyreferenceinthisProspectusSupplementhasbeenincludedorincorporatedbyreferenceinrelianceonthereport,valuation,statementoropinionofthepersonsdescribedbelow.Thefollowingpersons,firmsandcompaniesarenamedashavingpreparedorcertifiedareport,valuation,statementoropinioninthisProspectusSupplement,eitherdirectlyorinadocumentincorporatedbyreference.

Noneoftheexpertsnamedintheforegoingsectionheld,atthetimetheypreparedorcertifiedsuchstatement,report,opinionorvaluation,receivedaftersuchtimeorwillreceiveanyregisteredorbeneficialinterest,directorindirect,inanysecuritiesorotherpropertyoftheCompanyoroneoftheCompany'sassociatesoraffiliatesother than R. Michael Jones, the President and Chief Executive Officer of the Company, who owns 272,920 Common Shares representing 0.2% of the issued andoutstandingCommonSharesasofthedateofthisProspectusSupplement.

Except as otherwise stated above, none of the aforementioned persons, and the directors, officers, employees and partners, as applicable, of each of theaforementionedpersonsreceivedorwillreceiveadirectorindirectinterestinanypropertyoftheCompanyoranyassociateoraffiliateoftheCompany.

Except as otherwise stated above, none of the aforementioned persons, nor any director, officer, employee, consultant or partner, as applicable, of theaforementionedpersonsiscurrentlyexpectedtobeelected,appointedoremployedasadirector,officeroremployeeoftheCompanyorofanyassociateoraffiliateoftheCompany.

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Name Description

CharlesMuller(B.Sc.(Hons)Geology)Pri.,Sci.Nat.,CJMConsulting(Pty)Ltd.

Co-authoredtheProject1ReportandtheWaterbergPFS;authoredthetechnicalreportentitled"TechnicalReportonProject3ResourceCutEstimationoftheWesternBushveldJointVenture(WBJV)LocatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica"datedAugust31,2010.

RobertL.GoosenB.Eng.(Mining,Engineering),Pr.Eng.(ECSA)ofAdvisian/WorleyParsonsGroup

Co-authoredtheWaterbergPFS.

GertRoets(B.Eng.Mining),Pr.Eng.(ECSA),ofDRAProjectsSA(Pty)Ltd.

Co-authoredtheProject1Report.

GordonCunninghamB.Eng.(Chemical),Pr.Eng.(ECSA)ofTurnberryProjects(Pty)Ltd.

Co-authoredtheProject1ReportandtheWaterbergPFS.

R.MichaelJonesP.Eng.,PlatinumGroupMetalsLtd.

ThePresidentandChiefExecutiveOfficeroftheCompany.Thenon-independentqualifiedpersonforallscientificandtechnicalinformationincludedorincorporatedbyreferencehereinthatisnotattributedtooneoftheabove-namedpersons.

INDEPENDENTAUDITOR

TheCompany'sauditors,PricewaterhouseCoopersLLP,CharteredProfessionalAccountants,ofVancouver,BritishColumbia,reportthattheyareindependentfromtheCompanywithinthemeaningoftheCodeofProfessionalConductofCharteredProfessionalAccountantsofBritishColumbia,Canada,andwithinthemeaningoftheU.S. Securities Act and the applicable rules and regulations thereunder adopted by the SEC. PricewaterhouseCoopers LLP is registered with the Public CompanyAccountingOversightBoard.

TRANSFERAGENTANDREGISTRAR

The transfer agent and registrar for the Common Shares is Computershare Investor Services Inc. at its principal offices in the cities of Toronto, Ontario andVancouver,BritishColumbia.

TheU.S.co-transferagentfortheCommonSharesisComputershareTrustCompany,N.A.,atitsofficesinGolden,Colorado.

[Remainderofpageleftintentionallyblank.]

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Information has been incorporated by reference in this short form base shelf prospectus from documents filed with securities commissions or similar authorities in Canada. Copies of the documents incorporatedherein by reference may be obtained on request,  without charge, from the Corporate Secretary of Platinum Group Metals Ltd. at Suite 788, 550 Burrard Street,  Vancouver,  British Columbia,  Canada, V6C 2B5,telephone (604) 899-5450 and are also available electronically at www.sedar.com.

SHORTFORMBASESHELFPROSPECTUS

PLATINUMGROUPMETALSLTD.US$250,000,000

CommonSharesDebtSecurities

WarrantsSubscriptionReceipts

Units

PlatinumGroupMetalsLtd.(the"Company")mayofferandsell,fromtimetotime(the"Offerings"),commonsharesoftheCompany("CommonShares"),debtsecurities("DebtSecurities"),warrantstopurchaseCommonShares("Warrants"),subscriptionreceipts("SubscriptionReceipts")oranycombinationofsuchsecurities("Units")(all of theforegoingcollectively, the "Securities") upto an aggregate initial offering price of US$250,000,000(or its equivalent in Canadiandollars)duringthe25-monthperiodthatthisshortformbaseshelfprospectus(this"Prospectus"),includinganyamendmentshereto,remainseffective.Securitiesmaybeofferedinamounts,atpricesandontermstobedeterminedbasedonmarketconditionsatthetimeofsaleandsetforthinanaccompanyingprospectussupplement(a"ProspectusSupplement").Inaddition,Securitiesmaybeofferedandissuedinconsiderationfortheacquisitionofotherbusinesses,assetsorsecuritiesbyusoroneofoursubsidiaries.TheconsiderationforanysuchacquisitionmayconsistofanyoftheSecuritiesseparately,acombinationofSecuritiesoranycombinationofamongotherthings,Securities,cashandassumptionofliabilities.

InvestingintheSecuritiesinvolvessignificantrisks.Prospectiveinvestorsshouldcarefullyconsidertheriskfactorsdescribedundertheheading"RiskFactors"inthis Prospectus, in theapplicable Prospectus Supplement withrespect to a particular Offeringandinthedocuments incorporatedbyreferencehereinandtherein.

TheOfferingsaremadebyaCanadianissuerthatispermittedunderamultijurisdictionaldisclosuresystemadoptedbysecuritiesregulatoryauthoritiesinCanadaandtheUnitedStates(the"MJDS")topreparethisProspectusinaccordancewithCanadiandisclosurerequirements.ProspectiveinvestorsintheUnitedStates shouldbeawarethatsuchrequirements aredifferent fromthoseapplicabletoissuersintheUnitedStates. Financial statements incorporatedhereinbyreferencehavebeenpreparedinaccordancewithInternationalFinancialReportingStandards,asissuedbytheInternationalAccountingStandardsBoard("IFRS"), andmaybesubjecttoCanadianauditingandauditorindependencestandards, andthusmaynotbecomparabletofinancialstatementsofUnitedStatescompanies.

ProspectiveinvestorsshouldbeawarethattheacquisitionoftheSecuritiesmayhavetaxconsequencesbothintheUnitedStatesandinCanada.Suchconsequences for investors whoare resident in, or citizens of, the UnitedStates or whoare resident in Canadamaynot be describedfully herein or in anyapplicableProspectusSupplement.ProspectiveinvestorsshouldreadthetaxdiscussioncontainedintheapplicableProspectusSupplementwithrespecttoaparticularOfferingandconsulttheirowntaxadvisorswithrespecttotheirownparticularcircumstances.

The enforcement by investors of civil liabilities under the U.S. federal securities laws may be affected adversely by the fact that the Company isincorporatedororganizedunderthelawsofBritishColumbia,Canada,thatthemajorityoftheCompany'sofficersanddirectorsandsomeoralloftheexpertsnamedinthisProspectusareresidentsofacountryotherthantheUnitedStates,andthatasubstantialportionoftheassetsoftheCompanyandsaidpersonsarelocatedoutsidetheUnitedStates.

NeithertheUnitedStatesSecuritiesandExchangeCommission(the"SEC")noranystateorCanadiansecuritiesregulatorhasapprovedordisapprovedoftheSecurities,passedupontheaccuracyoradequacyofthisProspectusordeterminedifthisProspectusistruthfulorcomplete.Anyrepresentationtothecontraryisacriminaloffense.

NEWISSUE OCTOBER14,2016

NounderwriterhasbeeninvolvedinthepreparationofthisProspectusorperformedanyreviewofthecontentofthisProspectus.

ThespecifictermsoftheSecuritieswithrespecttoaparticularOfferingwillbesetoutintheapplicableProspectusSupplementandmayinclude,whereapplicable(i)inthecaseofCommonShares,thenumberofCommonSharesoffered,theofferingprice,whethertheCommonSharesarebeingofferedforcash,andanyothertermsspecifictotheCommonSharesbeingoffered,(ii)inthecaseofDebtSecurities,thespecificdesignation,theaggregateprincipalamount,thecurrencyorthecurrencyunitforwhichtheDebtSecuritiesmaybepurchased,thematurity,theinterestprovisions,theauthorizeddenominations,theofferingprice,whethertheDebtSecuritiesarebeingofferedforcash,thecovenants,theeventsofdefault,anytermsforredemptionorretraction,anyexchangeorconversionrightsattachedtotheDebtSecuritiesandanyothertermsspecifictotheDebtSecuritiesbeingoffered,(iii)inthecaseofWarrants,theofferingprice,whethertheWarrantsarebeingofferedforcash,thedesignation, the number and the terms of the Common Shares or Debt Securities purchasable upon exercise of the Warrants, any procedures that will result in theadjustment of these numbers, the exercise price, the dates andperiods of exercise, the currencyin whichthe Warrants are issuedandanyother termsspecific totheWarrantsbeingoffered,(iv)inthecaseofSubscriptionReceipts,thenumberofSubscriptionReceiptsbeingoffered,theofferingprice,whethertheSubscriptionReceiptsarebeingofferedforcash,theproceduresfortheexchangeoftheSubscriptionReceiptsforCommonShares,DebtSecuritiesorWarrants,asthecasemaybe,andanyotherterms specific to the Subscription Receipts being offered, and (v) in the case of Units, the designation, number and terms of the Common Shares, Warrants,SubscriptionReceiptsorDebtSecuritiescomprisingtheUnits.Whererequiredbystatute,regulationorpolicy,andwhereSecuritiesareofferedincurrenciesotherthanCanadiandollars,appropriatedisclosureofforeignexchangeratesapplicabletotheSecuritieswillbeincludedintheProspectusSupplementdescribingtheSecurities.

ThisProspectusdoesnotqualifyforissuancedebtsecuritiesinrespectofwhichthepaymentofprincipaland/orinterestmaybedetermined,inwholeorinpart,byreferencetooneormoreunderlyinginterests,including,forexample,anequityordebtsecurity,orastatisticalmeasureofeconomicorfinancialperformance(including,but not limited to, any currency, consumerprice or mortgage index, or the price or value of one or more commodities, indices or other items, or any other item orformula,oranycombinationorbasketoftheforegoingitems).Forgreatercertainty,thisProspectusmayqualifyforissuancedebtsecurities,includingDebtSecuritiesconvertibleintootherSecurities,inrespectofwhichthepaymentofprincipaland/orinterestmaybedetermined,inwholeorinpart,byreferencetopublishedratesofacentralbankingauthorityoroneormorefinancialinstitutions,suchasaprimerateorbankers'acceptancerate,ortorecognizedmarketbenchmarkinterestratessuchasLIBOR,EURIBORoraU.S.federalfundsrate.

AllshelfinformationpermittedunderapplicablelawstobeomittedfromthisProspectuswillbecontainedinoneormoreProspectusSupplementsthatwillbedeliveredtopurchaserstogetherwiththisProspectus.EachProspectusSupplementwillbeincorporatedbyreferenceintothisProspectusforthepurposesofsecuritieslegislationasofthedateoftheProspectusSupplementandonlyforthepurposesofthedistributionoftheSecuritiestowhichtheProspectusSupplementpertains.

ThisProspectusconstitutesapublicofferingoftheSecuritiesonlyinthosejurisdictionswheretheymaybelawfullyofferedforsaleandonlybypersonspermittedtoselltheSecuritiesinsuchjurisdictions.WemayofferandsellSecuritiesto,orthrough,underwritersordealers,directlytooneormoreotherpurchasers,orthroughagentspursuanttoexemptionsfromregistrationorqualificationunderapplicablesecuritieslaws.AProspectusSupplementrelatingtoeachissueofSecuritieswillsetforth the names of anyunderwriters, dealers or agents involvedin the Offering andsale of the Securities and will set forth the terms of the Offering, the methodofdistribution of the Securities, including, to the extent applicable, the proceeds to us and any fees, discounts, concessions or other compensation payable to theunderwriters,dealersoragents,andanyothermaterialtermsoftheplanofdistribution.

InconnectionwithanyOfferings,theunderwritersoragentsmayover-allotoreffecttransactionswhichstabilizeormaintainthemarketpriceoftheSecuritiesofferedatahigherlevelthanthatwhichmightexistintheopenmarket.Suchtransaction,ifcommenced,maybeinterruptedordiscontinuedatanytime.See"PlanofDistribution".

OuroutstandingCommonSharesare listedandpostedfor tradingontheTorontoStockExchange(the"TSX")under thesymbol"PTM"andontheNYSEMKT,LLC(the"NYSEMKT")underthesymbol"PLG".OnOctober13,2016,thelasttradingdayoftheCommonSharespriortothedateofthisProspectus,theclosingpriceoftheCommonSharesontheTSXandNYSEMKTwasCAN$2.71andUS$2.07,respectively.UnlessotherwisespecifiedintheapplicableProspectusSupplement,theDebtSecurities,theWarrants,theSubscriptionReceiptsandtheUnitswillnotbelistedonanysecuritiesexchange.ThereisnomarketthroughwhichtheseSecuritiesmaybesoldandpurchasersmaynotbeabletoresell theseSecurities purchasedunderthisProspectus. ThismayaffectthepricingoftheseSecuritiesinthesecondarymarket,thetransparencyandavailabilityoftradingprices,theliquidityoftheseSecurities,andtheextentofissuerregulation.See"RiskFactors".

Our head office is located at Suite 788, 550 Burrard Street, Vancouver, British Columbia, Canada, V6C2B5. Our registered and records office is located atSuite2300,550BurrardStreet,Vancouver,BritishColumbia,CanadaV6C2B5.

EachofDianaWalters,adirectoroftheCompany,andCharlesMuller,GertRoetsandGordonCunningham,eachofwhomisanamedexpertinthisProspectus,residesoutsideofCanadaandhasappointedPlatinumGroupMetalsLtd.,Suite788,550BurrardStreet,Vancouver,BritishColumbia,CanadaV6C2B5astheiragentforserviceofprocessinCanada.ProspectiveinvestorsareadvisedthatitmaynotbepossibleforinvestorstoenforcejudgmentsobtainedinCanadaagainstMs.Walters,Mr.Muller,Mr.RoetsandMr.Cunningham,eventhoughtheyhaveappointedanagentforserviceofprocess.

ii

TABLEOFCONTENTS

Youshouldrely only onthe information containedin or incorporated byreference in this Prospectus andanyapplicable Prospectus Supplement inconnectionwithaninvestmentintheSecurities.Wehavenotauthorizedanyonetoprovideyouwithdifferentinformation.WearenotmakinganofferoftheSecurities in any jurisdiction where such offer is not permitted. You should assume that the information appearing in this Prospectus or any ProspectusSupplementisaccurateonlyasofthedateonthefrontofthosedocumentsandthatinformationcontainedinanydocumentincorporatedbyreferencehereinorthereinisaccurateonlyasofthedateofthatdocumentunlessspecifiedotherwise.Ourbusiness,financialcondition,resultsofoperationsandprospectsmayhavechangedsincethosedates.

InthisProspectusandanyProspectusSupplement,unlessthecontextotherwiserequires,theterms"we","our","us"andthe"Company"refertoPlatinumGroupMetalsLtd.andourdirectandindirectsubsidiaries.

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PageCAUTIONARYNOTETOUNITEDSTATESINVESTORS 1RESERVEANDRESOURCEDISCLOSURE 1CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS 2CURRENCYPRESENTATIONANDEXCHANGERATEINFORMATION 4NOTICEREGARDINGNON-IFRSMEASURES 6DOCUMENTSINCORPORATEDBYREFERENCE 6ADDITIONALINFORMATION 8DOCUMENTSFILEDASPARTOFTHEREGISTRATIONSTATEMENT 9BUSINESSOFTHECOMPANY 10RISKFACTORS 20USEOFPROCEEDS 45EARNINGSCOVERAGERATIO 45CONSOLIDATEDCAPITALIZATION 45DESCRIPTIONOFEXISTINGINDEBTEDNESS 45PLANOFDISTRIBUTION 45PRIORSALES 46PRICERANGEANDTRADINGVOLUME 47DIVIDENDPOLICY 48DESCRIPTIONOFCOMMONSHARES 48DESCRIPTIONOFDEBTSECURITIES 48DESCRIPTIONOFWARRANTS 54DESCRIPTIONOFSUBSCRIPTIONRECEIPTS 55DESCRIPTIONOFUNITS 56CERTAINFEDERALINCOMETAXCONSIDERATIONS 56LEGALMATTERS 56TRANSFERAGENTANDREGISTRAR 56INTERESTOFEXPERTS 56INDEPENDENTAUDITOR 57ENFORCEABILITYOFCIVILLIABILITIES 57

CAUTIONARYNOTETOUNITEDSTATESINVESTORS

Weare permitted under the MJDSto prepare this Prospectus, any Prospectus Supplement, and the documents incorporated by reference herein andtherein inaccordance with the requirements of Canadian securities laws, which differ fromthe requirements of United States securities laws. All mineral resource and reserveestimates included in this Prospectus, any Prospectus Supplement and the documents incorporated by reference herein and therein, have been or will be prepared inaccordancewithNationalInstrument43-101—StandardsofDisclosureforMineralProjects("NI43-101").NI43-101isaruledevelopedbytheCanadianSecuritiesAdministratorsthatestablishesstandardsforallpublicdisclosureanissuermakesofscientificandtechnicalinformationconcerningmineralprojects.Thesestandardsdiffer significantly from the mineral reserve disclosure requirements of the SEC set out in Industry Guide 7. Consequently, mineral reserve and mineral resourceinformationincludedandincorporatedbyreferenceinthisProspectusandanyProspectusSupplementisnotcomparabletosimilarinformationthatwouldgenerallybedisclosedbyU.S.companiesinaccordancewiththerulesoftheSEC.

Inparticular,IndustryGuide7appliesdifferentstandardsinordertoclassifymineralizationasareserve.Asaresult,thedefinitionsofprovenandprobablemineralreserves used in NI 43-101 differ from the definitions in Industry Guide 7. Under SEC standards, mineralization may not be classified as a "reserve" unless thedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegallyproducedorextractedatthetimethereservedeterminationismade.Amongotherthings, all necessary permits would be required to be in hand or issued imminently in order to classify mineralized material as reserves under the SEC standards.Accordingly,mineral reserveestimatesincludedandincorporatedbyreferenceinthisProspectusandanyProspectusSupplementmaynotqualifyas"reserves"underSECstandards.

In addition, theinformation includedandincorporated byreference in this Prospectus andanyProspectus Supplement mayusethe terms"mineral resources","measuredmineralresources","indicatedmineralresources"and"inferredmineralresources"tocomplywiththereportingstandardsinCanada.IndustryGuide7doesnotcurrentlyrecognizemineralresourcesandU.S.companiesaregenerallynotpermittedtodisclosemineralresourcesindocumentstheyfilewiththeSEC.InvestorsarespecificallycautionednottoassumethatanypartorallofthemineraldepositsinthesecategorieswilleverbeconvertedintomineralreservesunderIndustryGuide7.Further,"inferredmineralresources"haveagreatamountofuncertaintyastotheirexistenceandastowhethertheycanbeminedlegallyoreconomically.Therefore,investorsarealsocautionednottoassumethatalloranypartofaninferredmineralresourceexists.InaccordancewithCanadianrules,estimatesof"inferredmineralresources"cannotformthebasisoffeasibilityor,exceptinlimitedcircumstances,othereconomicstudies.Itcannotbeassumedthatalloranypartof"measuredmineralresources","indicatedmineralresources"or"inferredmineralresources"willeverbeupgradedtoahighercategoryormineralresourcesorthatmineralresourceswillbeclassifiedasmineralreserves.Investorsarecautionednottoassumethatanypartofthereported"measuredmineralresources","indicatedmineralresources"or"inferredmineral resources" included and incorporated by reference in this Prospectus and any Prospectus Supplement is economically or legally mineable. Disclosure of"contained ounces" in a resource is permitted under NI 43-101; however, the SEC normally only permits issuers to report mineralization that does not constitute"reserves"bySECstandardsasin-placetonnageandgradewithoutreferencetounitmeasures.Inaddition,thedocumentsincludedandincorporatedbyreferenceinthisProspectus and any prospectus Supplement may include information regarding adjacent or nearby properties on which we have no right to mine. The SECdoes notnormallyallowU.S.companiestoincludesuchinformationintheirfilingswiththeSEC.Fortheabovereasons,informationincludedandincorporatedbyreferenceinthisProspectusandanyProspectusSupplementthatdescribesourmineralreserveandresourceestimatesorthatdescribestheresultsofpre-feasibilityorotherstudiesisnotcomparabletosimilarinformationmadepublicbyU.S.companiessubjecttothereportinganddisclosurerequirementsoftheSEC.

RESERVEANDRESOURCEDISCLOSURE

Duetotheuncertaintythatmaybeattachedtoinferredmineralresourceestimates,itcannotbeassumedthatalloranypartofaninferredmineralresourceestimatewill be upgraded to an indicated or measured mineral resource estimate as a result of continued exploration. Confidence in an inferred mineral resource estimate isinsufficienttoallowmeaningfulapplicationofthetechnicalandeconomicparameterstoenablean

1

evaluationof economicviability sufficient for public disclosure, except incertainlimitedcircumstances set out inNI43-101. Inferredmineral resourceestimates areexcludedfromestimatesformingthebasisofafeasibilitystudy.Mineralresourcesthatarenotmineralreservesdonothavedemonstratedeconomicviability.

CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS

ThisProspectusandthedocumentsincorporatedbyreferencehereincontain"forward-lookingstatements"withinthemeaningoftheUnitedStatesPrivateSecuritiesLitigationReformActof1995and"forward-lookinginformation"withinthemeaningofapplicableCanadiansecurities legislation(collectively,"Forward-LookingStatements").Allstatements,otherthanstatementsofhistoricalfact,thataddressactivities,eventsordevelopmentsthattheCompanybelieves,expectsoranticipateswill,may,couldormightoccurinthefutureareForward-LookingStatements.Thewords"expect","anticipate","estimate","may","could","might","will","would","should","intend","believe","target","budget","plan","strategy","goals","objectives","projection"orthenegativeofanyofthesewordsandsimilarexpressionsareintendedtoidentifyForward-LookingStatements,althoughthesewordsmaynotbepresentinallForward-LookingStatements.Forward-LookingStatementsincludedorincorporatedbyreferenceinthisProspectusinclude,withoutlimitation,statementswithrespectto:

• productionestimatesandassumptions,includingproductionrate,gradepertonneandsmelterrecovery;

• productiontiming;

• capital-raisingactivities,compliancewithtermsofindebtednessandtheadequacyofcapital;

• revenue,cashflowandcostestimatesandassumptions;

• statementswithrespecttofutureeventsorfutureperformance;

• anticipatedexploration,development,construction,production,permittingandotheractivitiesontheCompany'sproperties;

• theadequacyofcapital,financingneedsandtheavailabilityofandpotentialforreceivingfurthercommitments;

• projecteconomics;

• futuremetalpricesandexchangerates;

• mineralreserveandmineralresourceestimates;and

• potentialchangesintheownershipstructuresoftheCompany'sprojects.

Forward-LookingStatementsreflectthecurrentexpectationsorbeliefsoftheCompanybasedoninformationcurrentlyavailabletotheCompany.Forward-LookingStatementsinrespectofcapitalcosts,operatingcosts,productionrate,gradepertonneandsmelterrecoveryarebasedupontheestimatesinthetechnicalreportsreferredtointhisProspectusandinthedocumentsincorporatedbyreferencehereinandongoingcostestimationwork,andtheForward-LookingStatementsinrespectofmetalpricesandexchangeratesarebaseduponthethreeyeartrailingaveragepricesandtheassumptionscontainedinsuchtechnicalreportsandongoingestimates.

Forward-LookingStatementsaresubjecttoanumberofrisksanduncertaintiesthatmaycausetheactualeventsorresultstodiffermateriallyfromthosediscussedinthe Forward-Looking Statements, and even if events or results discussed in the Forward-Looking Statements are realized or substantially realized, there can be noassurancethattheywillhavetheexpectedconsequencesto,oreffectson,theCompany.Factorsthatcouldcauseactualresultsoreventstodiffermateriallyfromcurrentexpectationsinclude,amongotherthings:

• additionalfinancingrequirements;

• theCompany'shistoryoflosses;

2

• the inability of the Company to generate sufficient cash flow to make payment on its indebtedness under the Project 1 Working Capital Facilities(asdefinedherein)andtherestrictionsimposedbysuchindebtedness;

• the Project 1 WorkingCapital Facilities are securedandthe Companyhas pledgedits shares of PlatinumGroupMetals (RSA)ProprietaryLimited("PTMRSA")totheLenders(asdefinedherein)undertheProject1WorkingCapitalFacilities,whichpotentiallycouldresultinthelossoftheCompany'sinterestinProject1(asdefinedherein),Project3(asdefinedherein),theWaterbergProject(asdefinedherein)andinPTMRSAintheeventofadefaultundertheProject1WorkingCapitalFacilities;

• theCompany'snegativecashflow;

• theCompany'sabilitytocontinueasagoingconcern;

• delaysintheproductionramp-upofProject1,whichcouldresultinadefaultundertheProject1WorkingCapitalFacilities;

• therecanbenoassurancethatundergrounddevelopmentandproductionramp-upatProject1willmeetitsproductionramp-uptimelineorthatproductionatProject1willmeettheCompany'sexpectations;

• delaysin,orinabilitytoachieve,plannedcommercialproduction;

• discrepancies between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs,betweenactualandestimatedmetallurgicalrecoveriesandbetweenestimatedandactualproduction;

• fluctuationsintherelativevaluesoftheU.S.dollar,theRandandtheCanadiandollar;

• volatilityinmetalsprices;

• the failure of the Company or its joint venture partners to fund their pro-rata share of funding obligations for Project 1 or the Waterberg JVProject(asdefinedherein);

• the inability of the Company to find an additional and suitable joint venture partner for Project 1 and Project 3 within such time frame as may bedeterminedbytheSouthAfricanDepartmentofMineralResources(the"DMR");

• anydisputesordisagreementswiththeCompany'sjointventurepartners;

• otherthanProject1,noknownmineralreservesontheCompany'sproperties;

• completionofapre-feasibilitystudyfortheWaterbergProjectissubjecttoeconomicanalysisrequirements;

• theabilityoftheCompanytoretainitskeymanagementemployeesandskilledandexperiencedpersonnel;

• conflictsofinterest;

• litigationorotherlegaloradministrativeproceedingsbroughtagainsttheCompany;

• actualorallegedbreachesofgovernanceprocessesorinstancesoffraud,briberyorcorruption;

• exploration, development and mining risks and the inherently dangerous nature of the mining industry, including environmental hazards, industrialaccidents,unusualorunexpectedformations,safetystoppages(whethervoluntaryorregulatory),pressures,minecollapses,cave-insorfloodingandtheriskofinadequateinsuranceorinabilitytoobtaininsurancetocovertheserisksandotherrisksanduncertainties;

• propertyandmineraltitlerisksincludingdefectivetitletomineralclaimsorproperty;

• changesinnationalandlocalgovernmentlegislation,taxation,controls,regulationsandpoliticaloreconomicdevelopmentsinCanada,SouthAfricaorothercountriesinwhichtheCompanydoesormaycarryoutbusinessinthefuture;

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• equipmentshortagesandtheabilityoftheCompanytoacquirethenecessaryaccessrightsandinfrastructureforitsmineralproperties;

• environmentalregulationsandtheabilitytoobtainandmaintainnecessarypermits,includingenvironmentalauthorizationsandwateruselicenses;

• extremecompetitioninthemineralexplorationindustry;

• delaysinobtaining,orafailuretoobtain,permitsnecessaryforcurrentorfutureoperationsorfailurestocomplywiththetermsofsuchpermits;

• risks of doingbusiness in SouthAfrica, includingbut not limited to labour, economic andpolitical instability andpotential changestoandfailurestocomplywithlegislation;

• the failure to maintain or increase equity participation by HDSAs (as defined herein) in the Company's prospecting and mining operations and tootherwisecomplywiththeMiningCharter(asdefinedherein);and

• theotherrisksdisclosedundertheheading"RiskFactors"inthisProspectusandinthedocumentsincorporatedbyreferenceherein.

Thesefactorsshouldbeconsideredcarefully,andinvestorsshouldnotplaceunduerelianceontheForward-LookingStatements.Inaddition,althoughtheCompanyhasattemptedtoidentifyimportantfactorsthatcouldcauseactualactionsorresultstodiffermateriallyfromthosedescribedintheForward-LookingStatements,theremaybeotherfactorsthatcauseactionsorresultsnottobeasanticipated,estimatedorintended.

ThemineralresourceandmineralreservefiguresreferredtointhisProspectusandthedocumentsincorporatedhereinbyreferenceareestimatesandnoassurancescan be giventhat the indicated levels of platinum, palladium, rhodiumand gold will be produced. Such estimates are expressions of judgment based on knowledge,miningexperience, analysis of drillingresults andindustrypractices. Valid estimates madeat a giventimemaysignificantly changewhennewinformationbecomesavailable.Bytheirnature,mineralresourceandmineralreserveestimatesareimpreciseanddepend,toacertainextent,uponstatisticalinferenceswhichmayultimatelyproveunreliable.AnyinaccuracyorfuturereductioninsuchestimatescouldhaveamaterialadverseimpactontheCompany.

AnyForward-LookingStatementspeaksonlyasofthedateonwhichitismadeand,exceptasmayberequiredbyapplicablesecuritieslaws,theCompanydisclaimsanyintentorobligationtoupdateanyForward-LookingStatement,whetherasaresultofnewinformation,futureeventsorresultsorotherwise.

CURRENCYPRESENTATIONANDEXCHANGERATEINFORMATION

Unlessstatedotherwiseorthecontextotherwiserequires,allreferencestodollaramountsinthisProspectusarereferencestoCanadiandollars.Allreferencesto"CAN$"aretoCanadiandollars,referencesto"US$"aretoUnitedStatesdollarsandreferencesto"R"or"Rand"aretoSouthAfricanRand.

TheauditedconsolidatedfinancialstatementsoftheCompanyasatandforthefinancialyearsendedAugust31,2015and2014,togetherwiththenotestheretoandthe auditor's reports thereon (the "Annual Financial Statements ") are presented in Canadian dollars. Effective September 1, 2015, the Company changed itspresentationcurrencyfromtheCanadiandollartotheUnitedStatesdollar.Accordingly,theCompany'sunauditedinterimcondensedconsolidatedfinancialstatementsforthethreemonthsendedNovember30,2015andthethreeandninemonthsendedMay31,2016(together,the"InterimFinancialStatements",andtogetherwiththeAnnualFinancialStatements,the"FinancialStatements"),eachincorporatedbyreferenceinthisProspectus,arepresentedinUnitedStatesdollars.ThechangeinpresentationcurrencyistobetterreflecttheCompany'sbusinessactivitiesandtoimproveinvestors'abilitytocomparetheCompany'sfinancialresultswithotherpubliclytradedbusinessesintheminingindustry.TheUnitedStatesdollarisalsothecurrencyusedforquotingpricesintheCompany'sproducts.TherehasbeennochangetotheCompany'sfunctionalcurrency,beingtheCanadiandollar,oritssubsidiaries'functionalcurrencies,beingtheRand.

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ForfurtherinformationregardingtheCompany'schangeinitspresentationcurrencytotheUnitedStatesdollar,includingthetranslationofcertaininformationfromCanadian dollars to United States dollars, see the Interim Financial Statements and the management's discussion and analysis of the Company related thereto,incorporatedbyreferenceinthisProspectus.

ThefollowingtablesetsforththerateofexchangefortheUnitedStatesdollarexpressedinCanadiandollarsineffectattheendofeachoftheperiodsindicated,theaverageoftheexchangeratesineffectonthelastdayofeachmonthduringeachoftheperiodsindicated,andthehighandlowexchangeratesduringeachoftheperiodsindicatedineachcasebasedonthenoonrateofexchangeasreportedbytheBankofCanadafortheconversionofUnitedStatesdollarsintoCanadiandollars.

ThenoonrateofexchangeonOctober13,2016asreportedbytheBankofCanadafortheconversionofUnitedStatesdollarsintoCanadiandollarswasUS$1.00equalsCAN$1.3219.

ThefollowingtablesetsforththerateofexchangefortheRandexpressedinCanadiandollarsineffectattheendofeachoftheperiodsindicated,theaverageoftheexchangeratesineffectonthelastdayofeachmonthduringeachoftheperiodsindicated,andthehighandlowexchangeratesduringeachoftheperiodsindicatedineachcasebasedonthenoonrateofexchangeasreportedbytheBankofCanadaforconversionofRandintoCanadiandollars.

The noon rate of exchange on October 13, 2016 as reported by the Bank of Canada for the conversion of Rand into Canadian dollars was one Rand equalsCAN$0.09288.

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TwelveMonthsEndedAugust31, 2015 2014 Averagerateforperiod CAN$1.2102 CAN$1.0776Rateatendofperiod CAN$1.3223 CAN$1.0858Highforperiod CAN$1.3303 CAN$1.1251Lowforperiod CAN$1.0863 CAN$1.0237

NineMonthsEndedMay31, 2016 2015 Averagerateforperiod CAN$1.3363 CAN$1.1868Rateatendofperiod CAN$1.3100 CAN$1.2465Highforperiod CAN$1.4589 CAN$1.2803Lowforperiod CAN$1.2544 CAN$1.1236

TwelveMonthsEndedAugust31, 2015 2014 Averagerateforperiod CAN$0.1026 CAN$0.1026Rateatendofperiod CAN$0.09979 CAN$0.1019Highforperiod CAN$0.1102 CAN$0.1067Lowforperiod CAN$0.09858 CAN$0.0984

NineMonthsEndedMay31, 2016 2015 Averagerateforperiod CAN$0.09023 CAN$0.1028Rateatendofperiod CAN$0.08333 CAN$0.1026Highforperiod CAN$0.09927 CAN$0.1102Lowforperiod CAN$0.08210 CAN$0.09858

NOTICEREGARDINGNON-IFRSMEASURES

This Prospectus and the documents incorporated by reference herein include certain terms or performance measures that are not defined underInternationalFinancial Reporting Standards, as issued by the International Accounting Standards Board (" IFRS"), such as cash costs, all-in sustaining costs and total costs perpayable ounce, realizedprice per ounce, adjustednet income(loss) before tax, adjustednet income(loss) andadjustedbasic earnings(loss) per share. TheCompanybelievesthat,inadditiontoconventionalmeasurespreparedinaccordancewithIFRS,certaininvestorsusethisinformationtoevaluatetheCompany'sperformance.Thedata presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared inaccordancewithIFRS.Thesenon-IFRSmeasuresshouldbereadinconjunctionwiththeFinancialStatements.

DOCUMENTSINCORPORATEDBYREFERENCE

InformationhasbeenincorporatedbyreferenceinthisProspectusfromdocumentsfiledwithsecuritiescommissionsorsimilarauthoritiesinCanada(the"Commissions")andfiledwith,orfurnishedto,theSEC.Copiesofthedocumentsincorporatedhereinbyreferencemaybeobtainedonrequestwithoutchargefrom the Corporate Secretary of the Company at Suite 788, 550 Burrard Street, Vancouver, British Columbia, Canada, V6C 2B5, telephone (604) 899-5450. Thesedocuments are also available through the internet on SEDAR, which can be accessed online at www.sedar.com and on EDGAR, which can be accessed onlineatwww.sec.gov.

ThefollowingdocumentsoftheCompanyarespecificallyincorporatedbyreferenceinto,andformanintegralpartof,thisProspectus:

(a) theannualinformationformoftheCompanydatedNovember24,2015forthefinancialyearendedAugust31,2015(the"AnnualInformationForm"or"AIF");

(b) themanagementinformationcircularoftheCompanydatedJanuary4,2016preparedforthepurposesoftheannualgeneralmeetingoftheCompanyheldon February 26, 2016 at which each of the Company's directors was re-elected and the shareholders approved all other matters submitted to ashareholdervote;

(c) theAnnualFinancialStatements;

(d) themanagement'sdiscussionandanalysisoftheCompanyforthefinancialyearendedAugust31,2015;

(e) theunaudited interimcondensed consolidated financial statements of the Company for the three months ended November 30, 2015, together with thenotesthereto;

(f) themanagement'sdiscussionandanalysisoftheCompanyforthethreemonthsendedNovember30,2015;

(g) theunauditedinterimcondensedconsolidatedfinancialstatementsoftheCompanyforthethreeandninemonthsendedMay31,2016,togetherwiththenotesthereto;

(h) themanagement'sdiscussionandanalysisoftheCompanyfortheninemonthsendedMay31,2016;

(i) theNI43-101technical report entitled "Mineral Resource Update onthe Waterberg Project Locatedin the BushveldIgneousComplex, SouthAfrica"datedApril29,2016(the"April2016WaterbergReport");

(j) theNI43-101technicalreportentitled"AnIndependentTechnicalReportontheMaseveProject(WBJVProjectareas1and1A)locatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica"datedAugust28,2015(the"Project1Report");

(k) thematerial change report of the Company filed November 3, 2015 announcing that it had entered into a second lien credit agreement with LibertyMetals & Mining Holdings, LLC (" Liberty Holdings "), a subsidiary of Liberty Mutual Insurance, for a US$40 million secured loan facility(assubsequentlyamendedonMay3,2016andSeptember19,2016,the"LibertyFacility");

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(l) the material change report of the Company filed November 23, 2015 announcing that the Company had simultaneously drawn down, in full,US$40 million from the Liberty Facility and US$40 million (the "Original Sprott Advance ") from the secured loan facility with SprottResourceLendingPartnership,amongotherlenders(thelendersfromtimetotime,the"SprottLenders")pursuanttoacreditagreementdatedFebruary13,2015(assubsequentlyamendedonNovember19,2015,May3,2016andSeptember19,2016,the"SprottFacility",andtheSprottLenders,togetherwithLibertyHoldings,the"Lenders");

(m) thematerialchangereportoftheCompanyfiledJanuary12,2016announcingthatthebudgetfundedbyJapanOil,GasandMetalsNationalCorporation("JOGMEC"),theCompany'sjointventurepartner,fortheWaterbergProjecthadbeenexpandedfromUS$8.0milliontoUS$8.5millionfortheannualperiodendingMarch31,2016;

(n) thematerialchangereportoftheCompanyfiledJanuary26,2016announcingtheconsolidationoftheCommonSharesonthebasisofonenewCommonSharefortenoldCommonShareseffectiveJanuary26,2016(the"ShareConsolidation");

(o) thematerialchangereportoftheCompanyfiledFebruary9,2016announcingthesuccessfulcompletionofhotcommissioningatProject1;

(p) thematerial change report of the Company filed March 17, 2016 announcing that over 90% of recent infill drilling on the Waterberg Project hadsuccessfullyintersectedthe"T"and"F"targetedlayers;

(q) thematerial changereport oftheCompanyfiledApril 19,2016announcinganincreaseintheresourceestimateforplatinum,palladium,rhodiumandgoldattheWaterbergJVProject;

(r) thematerialchangereportoftheCompanyfiledMay5,2016announcingthemodificationagreementstotheSprottFacilityandtheLibertyFacility,eachdatedMay3,2016(together,the"MayCreditFacilityAmendments");

(s) thematerial change report of the Company filed May 5, 2016 announcing that the Company had entered into an agreement with a syndicate ofunderwriterstobuy,onaboughtdealbasis,11,000,000CommonShares,atapriceofUS$3.00perCommonShare(the"MayOffering");

(t) thematerialchangereportoftheCompanyfiledMay26,2016announcingtheclosingoftheMayOffering;

(u) thematerial change report of the Company filed June 1, 2016 announcing new platinum, palladium and gold assay results for recent drill interceptscompletedontheWaterbergProject;

(v) thematerialchangereportoftheCompanyfiledJuly14,2016announcingfinancialresultsandhighlightsfortheninemonthsendedMay31,2016;

(w) thematerial changereport oftheCompanyfiledSeptember20,2016announcingupdatesonProject 1andtheWaterbergProject andthemodificationagreementstotheSprottFacilityandtheLibertyFacility,eachdatedSeptember19,2016(together,the"SeptemberCreditFacilityAmendments");and

(x) thematerial change report of the Companyfiled October 12, 2016announcing that the Sprott Lenders have provideda US$5million secondadvance(the"SecondSprott Advance") to the Companypursuant to an amendedandrestated credit agreement dated October 11, 2016 (the"Amended&RestatedSprottCreditAgreement"andtheSprottFacility,asamendedandrestated,the"Amended&RestatedSprottFacility",andtogetherwiththeLibertyFacility,the"Project1WorkingCapitalFacilities").

Anydocumentofthetypesreferredtointheprecedingparagraph(excludingpressreleasesandconfidentialmaterialchangereports)orofanyothertyperequiredtobeincorporatedbyreferenceintoashortformprospectuspursuanttoNationalInstrument44-101—ShortFormProspectusDistributionsthatarefiledbyuswithaCommission after the date of this Prospectus and prior to the termination of an Offering under any Prospectus Supplement shall be deemed to be incorporated byreferenceinthisProspectus.Inaddition,anydocumentfiledbyuswiththeSECorfurnishedtotheSEConForm6-Korotherwiseafterthedateofthis

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Prospectus(andpriortotheterminationofanOffering)shallbedeemedtobeincorporatedbyreferenceintothisProspectusandtheregistrationstatementonFormF-10ofwhichthisProspectusformsapart(the"RegistrationStatement")(inthecaseofaReportonForm6-K,ifandtotheextentexpresslyprovidedfortherein).

Anystatement containedin this Prospectus or in a document incorporatedor deemedto be incorporatedbyreference herein shall be deemedto bemodifiedorsupersededforpurposesofthisProspectustotheextentthatastatementcontainedhereinorinanyothersubsequentlyfileddocumentwhichalsoisorisdeemedtobeincorporatedbyreferencehereinmodifiesorsupersedessuchstatement.Themodifyingorsupersedingstatementneednotstatethatithasmodifiedorsupersededapriorstatementorincludeanyotherinformationsetforthinthedocumentitmodifiesorsupersedes.Themakingofamodifyingorsuperseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted amisrepresentation, anuntruestatementof amaterial fact oranomissiontostateamaterial fact thatis requiredtobestatedorthatis necessarytomakeastatement not misleading in light of the circumstances in which it was made. Any statement so modified or superseded shall not constitute a part of thisProspectus,exceptassomodifiedorsuperseded.

AProspectusSupplementcontainingthespecifictermsofanOfferingwillbedeliveredtopurchasersofsuchSecuritiestogetherwiththisProspectusandwillbedeemedtobeincorporated byreference intothis Prospectus as of thedate of suchProspectus Supplement, but onlyfor thepurposes of theOfferingcoveredbythatProspectusSupplement.

Uponanewannualinformationformandrelatedannual financial statements beingfiledbyuswith, andwhererequired, acceptedby,theapplicablesecuritiesregulatory authority during the currency of this Prospectus, the previous annual information form, the previous annual financial statements and all interim financialstatements, material change reports and information circulars and all Prospectus Supplements filed prior to the commencement of our financial year in which a newannualinformationformisfiledshallbedeemednolongertobeincorporatedintothisProspectusforpurposesoffutureoffersandsalesofSecuritieshereunder.

Withoutlimitingtheforegoing,onApril29,2016,theCompanyfiledtheApril2016WaterbergReportwithaneffectivedateofApril18,2016.TheApril2016Waterberg Report supersedes and replaces the technical report titled "An Independent Technical Report on the Waterberg Project Located in the Bushveld IgneousComplex,SouthAfrica"datedSeptember4,2015ontheWaterbergProjectandanyearlierreportsorestimatesofresourcesfortheWaterbergProject.

Reference totheCompany'swebsiteinanydocumentsthatareincorporatedbyreferenceintothisProspectusdonotincorporatebyreferencetheinformationonsuchwebsiteintothisProspectus,andtheCompanydisclaimsanysuchincorporationbyreference.

ADDITIONALINFORMATION

We have filed with the SEC the Registration Statement. This Prospectus, which constitutes a part of the Registration Statement, does not contain all of theinformation contained in the Registration Statement, certain items of which are contained in the exhibits to the Registration Statement as permitted by the rules andregulationsoftheSEC.StatementsincludedorincorporatedbyreferenceinthisProspectusaboutthecontentsofanycontract,agreementorotherdocumentsreferredtoarenotnecessarilycomplete,andineachinstanceyoushouldrefertotheexhibitstotheRegistrationStatementforamorecompletedescriptionofthematterinvolved.Eachsuchstatementisqualifiedinitsentiretybysuchreference.

WearesubjecttotheinformationrequirementsoftheUnitedStatesSecuritiesExchangeActof1934,asamended(the"ExchangeAct"),andapplicableCanadiansecuritieslegislation, andinaccordancetherewithfileandfurnishreportsandotherinformationwiththeSECandwiththesecuritiesregulatorsinCanada.UndertheMJDS,documentsandotherinformationthatwefileandfurnishwiththeSECmaybepreparedinaccordancewiththedisclosurerequirementsofCanada,whicharedifferent fromthoseoftheUnitedStates. Asaforeignprivateissuer, weareexemptfromtherulesundertheExchangeActprescribingthefurnishingandcontentofproxystatements,andourofficers,directorsandprincipalshareholdersareexemptfromthereportingandshort

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-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we are not required to publish financial statements as promptly asU.S.companies.

YoumayreadanydocumentthatwehavefiledwithorfurnishedtotheSECattheSEC'spublicreferenceroominWashington,D.C.YoumayalsoobtaincopiesofthosedocumentsfromthepublicreferenceroomoftheSECat100FStreet,N.E.,Washington,D.C.20549bypayingafee.YoushouldcalltheSECat1-800-SEC-0330oraccessitswebsiteatwww.sec.govforfurtherinformationaboutthepublicreferencerooms.YoumayreadanddownloadthedocumentswehavefiledwiththeSECunderour corporate profile at www.sec.gov. Youmayreadanddownloadanypublicdocumentthat wehavefiledwiththeCanadiansecurities regulatoryauthoritiesunderourcorporateprofileontheSEDARwebsiteatwww.sedar.com.

DOCUMENTSFILEDASPARTOFTHEREGISTRATIONSTATEMENT

ThefollowingdocumentshavebeenorwillbefiledwiththeSECaspartoftheRegistrationStatement:(i)thedocumentsreferredtoundertheheading"DocumentsIncorporatedbyReference";(ii)consentsofPricewaterhouseCoopersLLPandthepersonsnamedunder"InterestofExperts"herein;(iii)powersofattorneyfromcertaindirectorsandofficersoftheCompany;and(iv)theformofIndenture(asdefinedbelow).Acopyoftheformofwarrantindenture,subscriptionreceiptagreementorstatementofeligibilityoftrusteeonFormT-1,asapplicable,willbefiledbypost-effectiveamendmentorbyincorporationbyreferencetodocumentsfiledorfurnishedwiththeSECundertheExchangeAct.

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BUSINESSOFTHECOMPANY

TheCompanyisaplatinum-focusedexplorationanddevelopmentcompanyconductingworkprimarilyonmineralpropertiesithasstakedor acquiredbywayofoptionagreementsorapplicationsintheRepublicofSouthAfrica.

TheCompany'smaterial subsidiaries areonewholly-ownedcompany, onemajority-ownedcompanyanda49.9%holdinginathirdcompany, all of whichareincorporatedunderthecompanylawsoftheRepublicofSouthAfrica.

The Company conducts its South African exploration and development work through its wholly-owned direct subsidiary, PTM RSA. PTM RSA holds theCompany's interests in the Project 1 (also known as the Maseve Mine) and Project 3 platinum mines of what was formerly the Western Bushveld Joint Venture ("Project1"and"Project3",respectively)throughits82.9%holdingsinMaseveInvestments11ProprietaryLimited("Maseve").WesizwePlatinumLtd.("Wesizwe"), through its subsidiary Africa Wide Mineral Prospecting and Exploration Proprietary Limited ("Africa Wide") has a 17.1% ownership interest in Maseve. See"MineralPropertyInterests—Projects1and3oftheWesternBushveldComplex"intheAIF.

On August 20, 2014, an arbitrator ruled that Africa Wide's shareholding in Maseve would be reduced to 21.2766% as a result of its failure to fund itsUS$21.8millionshareofaninitialprojectbudgetandcashcallforProject1thathadbeenunanimouslyapprovedbytheMaseveboardofdirectors.OnMarch3,2014,AfricaWideinformedtheCompanythatitwouldnotbefundingitsUS$21.52millionshareofasecondcashcall.Asaresult,AfricaWide'sownershipofMasevehasbeen further diluted to approximately 17.1%based on the dilution formula in the Maseve Shareholders Agreement (defined below), as confirmed by the arbitration.Correspondingly,theCompany'sownershipinMasevehasincreasedtoapproximately82.9%.See"GeneralDevelopmentsoftheBusiness—AfricaWideDilution"inthe AIF and the risk factor in this Prospectus captioned "The dilution of AfricaWide may have a material adverse effect on the Company's business and resultsofoperations".

TheCompanyalsoowns49.9%ofMnomboWethuConsultantsProprietaryLimited("Mnombo"),ablackeconomicempowerment("BEE")company,whichholdsa26%participatinginterestinboththeWaterbergjointventureproject(the"WaterbergJVProject")andtheWaterbergextensionproject(the"WaterbergExtensionProject"andtogetherwiththeWaterbergJVProject,the"WaterbergProject").

Subsequent to the end of the Company's third fiscal quarter in 2016, the DMR requested an update regarding the Company's efforts to increase the HDSA(asdefinedherein)equityownershippercentageinMasevefrom17.1%to26%followingthedilutionofAfricaWide'sinterestinMaseve.TheCompanyremainsopentoconsideringcommercial andstrategicalternativeswithregardtopossibleBEEtransactionsforMaseve. TheCompanymetwiththeDMRinearlyJune2016andtheDMRrequestedafurtherupdatebyAugust7,2016,whileremindingtheCompanyoftheriskofpotentialactionunderSections47and93oftheMineralandPetroleumResourcesDevelopmentAct,No.28of2002(the"MPRDA")iftheCompanywerenottoincreasetheHDSAownershippercentage.TheCompanybelievesthatanyactioninthisregardisprematuregiventhatthecourtproceedingsbetweentheChamberofMinesandtheDMRinregardtothe"onceempowered,alwaysempowered"principleandtheintroductionoftheNewDraftCharter(asdefinedherein)bothremainpending.

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TheCompanyhasmadeseveralattemptstoscheduleameetingwiththeDMRtofurtherdiscussthisissue.Todate,whiletheCompanyhasbeenadvisedbytheDMRthatthematterwillbediscussedatalaterdate,nosuchmeetinghastakenplaceandtheDMRhasnotissuedanoticeofnon-compliancewiththeMPRDA.SeetheriskfactorsinthisProspectuscaptioned"ThedilutionofAfricaWidemayhaveamaterialadverseeffectontheCompany'sbusinessandresultsofoperations"and"Thefailure to maintain or increase equity participation by HDSAs in the Company's prospecting and mining operations could adversely affect the Company's ability tomaintainitsprospectingandminingrights."

Project1andProject3

Project 1 and Project 3 are located on the Western Limbof the Bushveld Complex, 110 kmwest northwest of Pretoria and 120 kmfromJohannesburg. Theapproximately47km2ofminingrightscomprisingProject1andProject3areownedbyMaseve,theprojectoperatingcompanyinwhichtheCompanyhasan82.9%interestandWesizwe,throughitssubsidiary,AfricaWide,whichhasa17.1%ownershipinterest.Maseveisgovernedbyashareholders'agreementamongPTMRSA,AfricaWideandMaseve(the"MaseveShareholdersAgreement").See"GeneralDevelopmentsoftheBusiness—AfricaWideDilution"intheAIF.InApril2012,MasevewasgrantedaminingrightoverProject1andProject3(the"MiningRight")bytheDMR.

Delaysinundergrounddevelopment,stopingratesandplannedtonnageshaveresultedindelaysinachievingfullcommercialproductionatProject1.ProductionguidanceprovidedforSeptember2016wasnotachievedprincipallyasaresultoftheinabilitytominefromhighergradeandbetterthicknessreefinBlock11ofProject1. The infrastructure required for mining in September 2016, including water pumping and ventilation, was also completed later than scheduled, which delayedproduction.PlannedproductionfromBlock11isnowexpectedinOctober2016.TheCompanycurrentlyexpectscommercialproductiontobeachievedbyearly2017.

ThecurrentProject1mineplancallsforanaggregateofapproximately91,500ouncesplatinum,palladium,rhodiumandgold("4E")(100%projectbasis)inconcentratetobeproducedfromfirstproductionatthemineinearly2016throughtheendofApril2017.Priorproductionguidanceshouldnotbereliedupon.

Project1WorkingCapitalFacilities

TheCompanyannouncedthatithaddrawndownundertheSprottFacilityandtheLibertyFacilityinNovember2015andundertheAmended&RestatedSprottFacilityinOctober2016.TheCompanypaysinterestundertheLibertyFacilityat9.5%overLIBORandinterestundertheAmended&RestatedSprottFacilityat8.5%over LIBOR.Under the Liberty Facility, a production payment of 1.5%of revenues fromProject 1 is payable to Liberty Holdings. Payment andperformance of theCompany'sobligationsundertheProject1WorkingCapitalFacilitiesareguaranteedbyPTMRSAandsecuredbyafirstandsecondprioritysecurityinterestinfavorofthe Lenders in all of the Company's personal property, including a pledge over all of the issued shares in the capital of PTMRSA. The Project 1 Working CapitalFacilitiescontaincovenantsthatincludecertainlimitson,amongotherthings,theabilityoftheCompanyandPTMRSAtocreateindebtedness,createliens,enterintorelatedpartytransactions, disposeofassets, amendoralter their corporatestatusoramalgamate, makeacquisitions, amendorterminatematerial contracts, declareorprovide dividends or distributions, make investments, materially change their businesses, or enter into agreements restricting the ability of their subsidiaries to paydividends, make any other distributions, deliver minerals or perform other obligations under their material agreements. Further, pursuant to theLiberty Facility, theCompanyisobligatedtonotifyLibertyHoldingsiftheCompanyorPTMRSA,oranyoftheirsubsidiaries(includingwithoutlimitationMaseveandMnombo)wishestoundertakeanyfinancings(otherthanafinancingthatisentirelyanequityfinancing)andmustprovideLibertyHoldingswithasummaryofthetermsofsuchfinancing.SubjecttothetermsandconditionsintheLibertyFacility,LibertyHoldingsshallhavearightoffirstoffertoprovidesuchfinancingtotheapplicableentityonthetermscontainedinthenoticeprovided.Also,pursuanttothatcertainintercreditoragreemententeredintoamongtheLenders,theCompanyandPTMRSAinconnectionwiththeProject1WorkingCapitalFacilities(the"IntercreditorAgreement"),andundercertaincircumstancesdescribedtherein,LibertyHoldingshasarighttopurchaseall of theoutstanding obligations under the Amended &Restated Sprott Facility, in which case the Amended &Restated Sprott Facility will be assigned to LibertyHoldings,asLender.

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UndertheMayCreditFacilityAmendments,theSeptemberCreditFacilityAmendmentsandtheAmended&RestatedSprottCreditAgreement,theCompanyandtheLendershaveagreedtoextendthe maturity dates of the Project 1 WorkingCapital Facilities, amendcertain prepayment andrepayment termsandamendcertaineventsofdefaultrelatingtoproductiontargetsatProject1.UnderthetermsoftheSeptemberCreditFacilityAmendmentsandtheAmended&RestatedSprottCreditAgreement, theCompanyandtheLenders alsoagreedthat theCompanymust pay, in partialprepaymentoftheProject 1WorkingCapital Facilities, 50%ofthenetproceedsofanyequityordebtfinancings(excludingintercompanyfinancings)oftheCompanyhavingavalueexceedingUS$1millionintheaggregatethatcloseafterJanuary31,2017,inthecaseoftheAmended&RestatedSprottFacility(the"Amended&RestatedSprottFacilityRepaymentRequirement"),andDecember31,2017,inthecaseoftheLibertyFacility,subjecttothetermsoftheIntercreditorAgreement(insteadofafterJune30,2016aswasstipulatedintheMayCreditFacilityAmendments).

OnOctober12,2016,theCompanyannouncedthattheSprottLendersprovidedtheSecondSprottAdvancetotheCompanypursuanttotheAmended&RestatedSprott CreditAgreement, which increased the Amended & Restated Sprott Facility to US$45 million. The material terms of the Amended &Restated Sprott CreditAgreementinclude:

• interestshallaccrueandbecomepayabletotheSprottLendersmonthlyontheSecondSprottAdvanceatarateofLIBORplus8.5%,thesamerateappliedtotheOriginalSprottAdvance;

• theSecondSprott Advancemayberepaidinsixequal, monthlyinstallments commencingonJuly31,2017,unlesstheSprottLenderselectforearlierrepaymentfromtheproceedsofanequityordebtfinancing(excludinganintercompanyfinancing)priortoDecember31,2017,inwhichcaseallsuchnetproceeds shall be paid to the Sprott Lenders in repayment of the Second Sprott Advance, notwithstanding the Amended & Restated Sprott FacilityRepaymentRequirement;

• theCompanymustobtaincertainregulatoryapprovalsasapost-closingrequirementoftheSecondSprottAdvance;and

• theCompanymustcompleteequityfinancingsraisinggrossproceedsofUS$20millionbyDecember31,2016(the"EquityFinancings").

Otherterms,conditionsandcovenantsrelatedtotheSecondSprottAdvancearesubstantiallythesameasfortheOriginalSprottAdvance,asamended.

AsconsiderationfortheaccommodationsprovidedbytheLendersintheMayCreditFacilityAmendments,theCompanyissuedtotheLendersanaggregateof263,308 Common Shares, representing 1% of the original principal amount payable under the Project 1 Working Capital Facilities. As consideration for theaccommodationsprovidedbytheLendersintheSeptemberCreditFacilityAmendments,theCompanyissuedtotheLendersanaggregateof1,602,628CommonShares,representing5%oftheoriginalprincipalamountpayableundertheProject1WorkingCapitalFacilities.AsconsiderationfortheSecondSprottAdvance,theCompanyhasagreedtoissue113,963CommonSharesbyOctober31,2016,representing5%ofthevalueoftheSecondSprottAdvance(usingtheBankofCanadanoonexchangerateonOctober7,2016).TheCommonShareswerevaluedatCAN$2.9185,whichrepresentedthe10-dayvolumeweightedaveragepriceoftheCommonSharesontheTSXofCAN$3.2428,lessa10%discount.See"PriorSales".

EventsofdefaultundertheProject1WorkingCapitalFacilitiesinclude:

• failuretocompletetheEquityFinancings;

• thefailuretopayprincipalwhendueandpayableorinterest,feesorotheramountspayable;

• thebreachbytheCompanyofanyfinancialcovenant;

• adefaultunderanyotherindebtednessoftheCompany;

• achangeincontroloftheCompany;

• failure to maintain planned production targets, as required by the September Credit Facility Amendments and theAmended &Restated Sprott CreditAgreement;

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• failuretoobtainallrequiredconsents,authorizationsorapprovalsoftheSouthAfricanReserveBank(the"SARB")inconnectionwiththeAmended&RestatedSprottCreditAgreementbyApril5,2017;

• theoccurrenceofanyeventthatcouldhaveamaterialadverseeffect;and

• variouseventsrelatingtothebankruptcyorinsolvencyorwinding-up,liquidationordissolutionorcessationofbusinessoftheCompany.

WaterbergProject

PTMRSAistheoperatoroftheWaterbergProjectwithJOGMECandMnombo.TheWaterbergProjectiscomprisedoftheWaterbergJVProject,acontiguousgrantedprospectingrightareaofapproximately255km2,andtheWaterbergExtensionProject,an864km2areaofgrantedandapplied-forprospectingrightslocatedadjacentandtothenorthoftheWaterbergJVProject,locatedontheNorthernLimboftheBushveldComplex,approximately85kmnorthofthetownofMokopane(formerlyPotgietersrus).

OnSeptember 28, 2009, PTMRSA, Mnomboand JOGMECentered into an agreement, as later amended on May20, 2013(the "JOGMECAgreement"),wherebyJOGMECcouldearnuptoa37%participatinginterestintheWaterbergJVProjectforanoptionalworkcommitmentofUS$3.2millionoverfouryears.Atthesame time, Mnombocould earn a 26%participating interest in exchange for matching JOGMEC's expenditures on a26/74basis (US$1.12million). In April 2012,JOGMECcompleted its US$3.2 million earn-in requirement to earn a 37% interest in the Waterberg JV Project. Following JOGMEC's earn-in, PTM RSA fundedMnombo's26%shareofcostsforUS$1.12millionuntiltheearn-inphaseofthejointventureendedinMay2012.PTMRSAholdstheprospectingrightsgrantedbytheDMRfortheWaterbergJVProject,andMnomboisidentifiedastheCompany'sBEEpartner.

OnJanuary20,2015,PTMRSAandMnomboenteredintoawrittenjointventureagreementeffectiveFebruary1,2012relatingtotheWaterbergExtensionProject,inwhichPTMRSAhasa74%interestandMnombohasa26%interest(the"WaterbergExtensionJVAgreement").PTMRSAholdstheprospectingrightsfiledwiththeDMRfortheWaterbergExtensionProject,andMnomboisidentifiedastheCompany'sBEEpartner.

OnMay26,2015,theCompanyannouncedasecondamendmenttotheJOGMECAgreement(the"JOGMEC2ndAmendment").PursuanttothetermsoftheJOGMEC2nd Amendment, the Waterberg JV Project and the Waterberg Extension Project are to be consolidated and contributed into a newly created operatingcompanynamedWaterbergJVResourcesProprietaryLimited("WaterbergJVCo.").TheCompanyistohold45.65%ofWaterbergJVCo.whileJOGMECistoown28.35% and Mnombo will hold 26%. Through its 49.9% share of Mnombo, the Company will hold an effective 58.62% ofWaterberg JV Co., post-closing. OnceWaterbergJVCo.isfullyorganizedandthetransactionscontemplatedintheJOGMEC2ndAmendmentarecompleted,theWaterbergExtensionJVAgreementwillbedissolved. Based on the June 2014 Waterberg Project resource estimate, the number of ounces owned by each entity did not change with the revised ownershippercentages.UndertheJOGMEC2ndAmendment,JOGMEChascommittedtofundUS$20millioninexpendituresoverathree-yearperiodendingMarch31,2018,ofwhichUS$8millionhasbeenfundedbyJOGMECtoMarch31,2016andthefirstUS$6milliontobespentineachofthefollowingtwo12-monthperiodswillalsobefundedbyJOGMEC.WaterbergProjectexpendituresinexcessofUS$6millionineitherofthefollowing12-monthperiodsaretobefundedbyPTMRSA,MnomboandJOGMECpro-ratatotheirinterestsinWaterbergJVCo.TheCompanyremainstheWaterbergProjectoperatorundertheJOGMEC2ndAmendment.UnderthetermsoftheJOGMEC2ndAmendment,closingofthis transactionwilltakeplaceonadatetobeagreedbetweentheparties,assoonasreasonablypossibleafterthegrantofapprovalbytheDMRunderSection11oftheMPRDAtotransfertitleoftheprospectingrights.Asamatteroflaw,theclosingwillalsobedependentupontheapprovalofthecompetitionauthoritiesundertheSouthAfricanCompetitionAct , 89of1998.Ifclosingofthistransactiondoesnotoccur, theJOGMEC2nd AgreementwillterminateandthepartieswilldefaulttotheJOGMECAgreementarrangement,withsuchportionoftheUS$20millioninexpendituresfundingalreadypaidbyJOGMECbeingdeemedtobeanadvancebyJOGMECtowardsits futurespendingcommitmentson theWaterbergJVProject. TheCompanyandMnombowill berequiredtomake corresponding cash payments in respect of the Waterberg JV Project to pro rata match the advance payments made by JOGMEC, within 120 days of theterminationoftheJOGMEC2ndAmendment,failingwhichtheyshallsuffer

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equitydilutionsundertheJOGMECAgreementasifsuchequivalentprorataamountswereapprovedprogramfundinginwhichtheyelectednottoparticipate.

TheCompanycarriedMnombo's26%shareofexpensesintheWaterbergProjectuntilMarch31,2015.JOGMEChasbeenfundingexpensessinceMarch31,2015underthetermsoftheJOGMEC2ndAmendment.

April2016WaterbergReport

ThefollowingistheextractedsummarysectionfromtheApril2016WaterbergReportpreparedfortheCompanybyMr.CharlesMullerofCJMConsulting,SouthAfrica, (Pty) Ltd. ("CJM"). The April 2016 Waterberg Report is incorporated by reference herein and, for full technical details, reference should be made to thecompletetextoftheApril2016WaterbergReport.

ThefollowingsummarydoesnotpurporttobeacompletesummaryoftheWaterbergProjectandissubjecttoalltheassumptions,qualificationsandproceduressetout in theApril 2016 Waterberg Report and is qualified in its entirety with reference to the full text of the April 2016 Waterberg Report. Readers should read thissummaryinconjunctionwiththeApril2016WaterbergReport.Readersaredirectedtoreviewthefulltextofthereport,availableforreviewundertheCompany'sprofileonSEDARatwww.sedar.comandontheSEC'sEDGARwebsiteatwww.sec.gov,foradditionalinformation.

1.1Introduction

CJMwasrequestedbyPTMRSA,onbehalfoftheCompany,theissuer,tocompletetheApril2016WaterbergReportfortheWaterbergProject.TheWaterbergProject coversaburiedportionoftheNorthernLimboftheBushveldComplexwhereadeposit containingplatinumgroupmetals("PGMs"),goldandbasemetals("Cu","Ni")hasbeendiscoveredthroughdrilling.TheobjectiveoftheApril2016WaterbergReportistoprovideanupdatetothemineralresourcesontheWaterbergProject,tocomplywithdisclosureandreportingrequirementssetforthintheTorontoStockExchangeManual,NI43-101,CompanionPolicy43-101CPtoNI43-101,andForm43-101F1ofNI43-101.

TheApril2016WaterbergReportreviewsthegeology,theexplorationactivitiesandstatesthemostrecentmineralresourceestimationontheWaterbergProject(EffectiveDate:18April-2016).Thereportprovidesanupdateoftheexplorationactivitiescompletedsubsequenttothelastfiledtechnicalreportontheresourceestimatedated20July-2015uptotheeffectivedateof04September-2016tocorrespondtothepublicdisclosureuptothatdate.

1.2WaterbergProjectAreaandLocation

TheWaterbergProjectissome85kmnorthofthetownofMokopane(formerlyPotgietersrus),withinLimpopoProvince,SouthAfricaandcoversanareaalongthe strike length of the previouslyunknownnorthward extension of the Bushveld Complex. TheWaterberg Project can be accessedviadirt roads exiting offsealedhighwayN11.

TheWaterbergProjectiscomprisedofseveralprospectingrightscoveringanareaof111,882ha.TheWaterbergProjectisownedbyajointventureconsistingoftheCompany,Mnombo,andJOGMEC.Conversionoftheprospectingrightintoaminingrightwithintherenewalperiodofthreeyearsisallowed.Theareaoftheprospectingrightsextendssome42kmfromnorthtosouthand42kmfromeasttowest.

TheWaterbergProjectareaisanextensionofthetrendatthenortherntipoftheBushveldComplexandistheresultofsomedetailedgeophysical,geochemicalandgeologicalworkthatindicatedpotential forapackageofBushveldComplexrocksundertheWaterberggroupsedimentarycoverrocks(the"WaterbergGroup").

1.3GeologicalSetting,DepositTypeandMineralization

TheBushveldandMolopoComplexesintheKaapvaalCratonaretwoofthemostwell-knownmafic/ultramaficlayeredintrusionsintheworld.TheBushveldComplexwasintrudedabout2,060millionyearsagointorocksoftheTransvaalSupergroup,largelyalonganunconformitybetweentheMagaliesbergquartziteofthePretoriaGroupandtheoverlyingRooibergfelsites.Itisestimatedtoexceed66,000km2in

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extent, of which about 55% is covered by younger formations. The Bushveld Complex hosts several layers rich in PGMs, chromium and vanadium, andconstitutestheworld'slargestknownresourceofthesemetals.

TheWaterbergProjectissituatedoffthenorthernendofthepreviouslyknownNorthernLimb,wherethemaficrockshaveadifferentsequencetothoseoftheEasternandWesternLimbs.

PGMmineralisationwithintheBushveldpackageunderlyingtheWaterbergProjectishostedintwomainlayers:theTZoneandtheFZone.

TheTZoneoccurswithintheMainZonejustbeneaththecontactoftheoverlayingUpperZone.AlthoughtheTZoneconsistsofnumerousmineralisedlayers,three potential economical layers were identified, T1, T2HWand T2 —Layers. They are composed mainly of anorthosite, pegmatoidal gabbros, pyroxenite,troctolite,harzburgite,gabbronoriteandnorite.

TheF Zone is hosted in a cyclic unit of olivine rich lithologies towards the base of the Main Zone towards the bottomof the Bushveld Complex. This zoneconsistsofalternatingunitsofharzburgite,troctoliteandpyroxenites.TheFZonewasdividedintotheFHandFPlayers.TheFHlayerhassignificantlyhighervolumes of olivine in contrast with the lower lying FP layer, which is predominately pyroxenite. The FH layer is further subdivided into six cyclic unitschemicallyidentifiedbytheirgeochemicalsignature,especiallychrome.Thebaseoftheseunitscanalsobelithologicallyidentifiedbyapyroxenitelayer.

1.4LocalGeology

TheWaterbergProjectislocatedalongthestrikeextensionoftheNorthernLimboftheBushveldComplex.ThegeologyconsistspredominantlyoftheBushveldMainZonegabbros,gabbronorites,norites,pyroxenitesandanorthositicrocktypeswithmoremaficrockmaterialsuchasharzburgiteandtroctolitesthatpartiallygrade into dunites towards the base of the package. In the southern part of the project area, Bushveld Upper Zone lithologies such as magnetite gabbros andgabbronoritesdooccurasintersectedindrillholeWB001andWB002.TheLowerMagnetiteLayeroftheUpperZonewasintersectedonthesouthoftheprojectproperty(Disseldorp)wheredrillholeWB001wasdrilledandintersecteda2.5mthickmagnetiteband.

Ontheproperty,theBushveldpackagestrikessouth-westtonortheastwithageneraldipof34o–38otowardsthewestisobservedfromdrillholecoreforthelayered units intersected on Waterberg property within the Bushveld Package (Figure 1). However, some structural blocks may be tilted at different anglesdependingonstructuraland/ortectoniccontrols.

TheBushveldUpperZoneisoverlainbya120mto760mthickWaterbergGroupwhichisasedimentarypackagepredominantlymadeupofsandstones,andwithin the project area the two sedimentary formations known as the Setlaole and Makgabeng Formations constitute the Waterberg Group. The Waterbergpackageisflatlyingwithdipanglesrangingfromto2oto5o.Figure1givesanoverviewofinterpretedgeologyfortheWaterbergProject.

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Figure1:DrillholelocationandInterpretedGeologyoftheWaterbergProject

1.5ExplorationStatus

TheWaterbergProjectisanadvancedprojectthathasundergonepreliminaryeconomicevaluationswhichhavewarrantedfurtherwork.DrillingtodatehasgiventheconfidencetoclassifymineralresourcesasInferredandIndicated.

1.6SamplePreparation

ThesamplingmethodologyconcurswiththeCompany'sprotocolbasedonindustrybestpractice.Thequalityofthesamplingismonitoredandsupervisedbyaqualifiedgeologist.Thesamplingisdoneinamannerthatincludestheentirepotentiallyeconomicunit, withsufficientshouldersamplingtoensuretheentireeconomiczonesareassayed.

1.7Analysis

Forthepresentdatabase,fieldsampleshavebeenanalysedbytwodifferentlaboratories:theprimarylaboratoryiscurrentlySetPointlaboratories(SouthAfrica).Genalysis(Australia)isusedforrefereetestworktoconfirmtheaccuracyoftheprimarylaboratory.

Samplesarereceived,sorted,verifiedandcheckedformoistureanddriedifnecessary.Eachsampleisweighedandtheresultsarerecorded.Rocks,rockchipsorlumpsarecrushedusingajawcrushertoless

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than10mm.Thesamplesarethenmilledfor5minutestoachieveafinenessof90%lessthan106mm,whichistheminimumrequirementtoensurethebestaccuracyandprecisionduringanalysis.

SamplesareanalysedforPt(ppm),Pd(ppm)Rh(ppm)andAu(ppm)bystandard25gleadfire-assayusingasilvercollector. Rh(ppm)isassayedusingthesamemethodbutwithapalladiumcollectorandonlyforselectedsamples.Afterpre-concentrationbyfireassaytheresultingsolutionsareanalysedusingICP-OES(InductivelyCoupledPlasma—OpticalEmissionSpectrometry).

Thebase metals (copper, nickel, cobalt and chromium) are analysed using ICP-OES(Inductively Coupled Plasma —Optical Emission Spectrometry) after amulti-aciddigestion.Thistechniqueresultsin"almost"totaldigestion.

Thedrilling,samplingandanalyticalaspectsoftheprojectareconsideredtohavebeenundertakentoindustrystandards.Thedataisconsideredtobereliableandsuitableformineralresourceestimation.

1.8Drilling

Thedatafromwhichthestructureofthemineralisedhorizonswasmodelledandgradevaluesestimatedwerederivedfromatotalof293,538metersofdiamonddrilling.Thisreportupdatesthemineralresourceestimateusingthisdataset.Thedrillholedatasetconsistsof294drillholesand459deflections,atthedateofdatacut-off(April1,2016).

Themanagementofthedrillingprogrammes,loggingandsamplinghavebeenundertakenfromtwofacilities:oneatthetownofMarkeninLimpopoProvince,SouthAfricaandtheotheronthefarmGoedetrouw366LRwithintheprospectingrightarea.

Drilledcoreiscleaned,de-greasedandpackedintometalcoreboxesbythedrillingcompany.ThecoreiscollectedfromthedrillingsiteonadailybasisbyPTMpersonnelandtransportedtothecoreyard.Beforethecoreistakenoffthedrillingsite,corerecoveryandthedepthsarechecked.Coreloggingisdonebyhandonapro-formasheetbyqualifiedgeologistsundersupervisionoftheWaterbergProjectgeologist.

1.9QualityControlandQualityAssurance

TheCompanyhasinstitutedacompleteQA/QCprogrammeincludingtheinsertionofblanksandcertifiedreferencematerialsaswellasrefereeanalyses.Theprogrammeisbeingfollowedandisconsideredtobetoindustrystandard.Thedataisasaresult,consideredreliableintheopinionoftheQualifiedPerson.

1.10MineralResources

Thisreportdocumentsthemineralresourceestimate—EffectiveDate:April18,2016.Themineralresourcesarereportedinthetablebelow.InfilldrillingoverportionsoftheWaterbergProjectareaandnewestimationmethodologyhasmadeitpossibletoestimateanewmineralresourceestimateandupgradeportionsofthemineralresourcetotheIndicatedcategory.TheMineralResourceStatementissummarisedinTable1.

Table1FZone

MineralResourceDetails

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Cut-off Tonnage Grade Metal 3PGE+Au Pt Pd Au Rh 3PGE+Au 3PGE+Au g/t Mt g/t g/t g/t g/t g/t Kg Moz

Indicated 2 281.184 0.9 1.9 0.2 0 3.03 851988 27.39 2.5 179.325 1.1 2.2 0.2 0 3.49 625844 20.12 3 110.863 1.2 2.5 0.2 0 3.95 437909 14.08

Inferred

2 177.961 0.8 1.8 0.1 0 2.76 491183 15.79 2.5 84.722 1 2.1 0.2 0 3.35 283819 9.125 3 43.153 1.2 2.5 0.2 0 3.96 170886 5.494

TZone

WaterbergTotal

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Cut-off Tonnage Grade Metal 2PGE+Au Pt Pd Au Rh 2PGE+Au 2PGE+Au g/t Mt g/t g/t g/t g/t g/t Kg Moz

Indicated 2 36.308 1.1 1.8 0.7 — 3.61 131162 4.217 2.5 30.234 1.2 1.9 0.8 — 3.88 117363 3.773 3 22.33 1.3 2.1 0.9 — 4.28 95640 3.075

Inferred

2 23.314 1.1 1.8 0.7 — 3.66 85240 2.741 2.5 21.196 1.1 1.9 0.8 — 3.79 80394 2.585 3 14.497 1.3 2.1 0.9 — 4.28 62082 1.996

Cut-off Tonnage Grade Metal 3PGE+Au Pt Pd Au Rh 3PGE+Au 3PGE+Au g/t Mt g/t g/t g/t g/t g/t Kg Moz

Indicated 2 317.492 0.9 1.9 0.2 0 3.1 983150 31.61 2.5 209.559 1.1 2.2 0.3 0 3.55 743207 23.89 3 133.193 1.2 2.5 0.3 0 4.01 533549 17.15

Inferred

2 201.275 0.9 1.8 0.2 0 2.86 576423 18.53 2.5 105.918 1 2.1 0.3 0 3.44 364213 11.71 3 57.65 1.2 2.4 0.4 0 4.04 232968 7.49

NotestoTable1:

1. MineralresourcesareclassifiedinaccordancewiththeSAMRECstandards.Therearecertaindifferenceswiththe"CIMStandardsonMineralResourcesandReserves";however,inthiscasetheCompanyandtheQPbelievethedifferencesarenotmaterialandthestandardsmaybeconsideredthesame.Mineralresourcesdonothavedemonstratedeconomicviabilityandinferredresourceshaveahighdegreeofuncertainty.Mineralresourcesmightneverbeupgradedorconvertedtoreserves.

2. Mineralresourcesareprovidedona100%projectbasis.Inferredandindicatedcategoriesareseparate.TheestimateshaveaneffectivedateofApril18th2016.Tablesmaynotadd perfectly due to rounding. For the purposes of inclusion of this table from the April 2016 Waterberg Report in this Prospectus, the figures have been subject to furtherrounding.

3. Acut-offgradeof2.5g/t3E(platinum,palladiumandgold)fortheTzoneand2.5g/t4EfortheFzoneisappliedtotheselectedbasecasemineralresources.PriortoJuly20,2015,a2g/tcut-offwasappliedtoresourceestimates.Forcomparisonwithearlierresourcesa2g/tcut-offontheupdatedresourcemodelispresentedabove.Cut-offgradesof3.0g/t4Earealsopresentedascertainminingplansinearlyyearsmayapplyhighercut-offsforthePre-FeasibilityStudy.

4. CutofffortheTandtheFzonesconsideredcosts,smelterdiscounts,concentratorrecoveriesfromthepreviousandongoingengineeringworkcompletedonthepropertybytheCompanyanditsindependentengineers.Spotandthree-yeartrailingaveragepricesandexchangeratesareconsideredforthecut-offconsiderations.Metallurgicalworkindicatesthataneconomicallyattractiveconcentratecanbeproducedfromstandardflotationmethods.

5. MineralresourceswerecompletedbyCharlesMullerofCJMandarereportedinanNI43-101technicalreportforthemineralresourcesreportedherein,effectiveApril18,2016.

6. MineralresourceswereestimatedusingKrigingmethodsforgeological domainscreatedinDatamineStudio3from262motherholesand322deflectionsinmineralization.Aprocessofgeologicalmodellingandcreationofgradeshellsusingindicatingkrigingwascompletedintheestimationprocess.

7. Theestimation of mineral resources have taken into account environmental, permitting, legal, title, taxation, socio-economic, marketing and political factors. The mineralresources may be materially affected by metals prices, exchange rates, labour costs, electricity supply issues or many other factors detailed in the Company's AnnualInformationForm.

8. ThefollowingUnitedStatesdollarpricesbasedonanapproximaterecent3-yeartrailingaverageinaccordancewiththeSECguidancewereusedfortheassessmentofResources;Pt1,243/oz,Pd720/oz,Au1,238/oz,Rh1,015/oz—see"CautionaryNotetoUnitedStatesInvestors".

9. Estimatedgradesandquantitiesforby-productswillbeincludedinrecoverablemetalsandestimatesintheon-goingpre-feasibilitywork.CopperandNickelarethemainvalueby-productsrecoverablebyflotationandforindicatedresourcesareestimatedat0.18%copperand0.10%nickelintheTzone0.07%copperand0.16%nickelintheFzone.

PreviousWaterbergProjectResourcedatedJuly20,2015:

Indicated:121milliontonnesgrading3.24g/t3E(0.97g/tPt,2.11g/tPd,0.16g/tAu,2.5g/tcut-off)

Inferred:246milliontonnesgrading3.25g/t3E,(0.94g/tPt,2.09g/tPd,0.16g/tAu,2.5g/tcutoff)

ThedatathatformedthebasisoftheestimatearethedrillholesdrilledbyPTMwhichconsistofgeologicallogs,thedrillholecollars,thedownholesurveysandtheassaydata,allofwhichwerevalidatedbytheQP.Theareawhereeachlayerwaspresentwasdelineatedafterexaminationoftheintersectionsinthevariousdrillholes.

ThereisnoguaranteethatalloranypartoftheMineralResourcewillbeconvertedtoaMineralReserve.

1.11InterpretationandConclusions

ExplorationdrillingbyPTMhasintersectedlayeredmagmaticPGMmineralisationinwhatisinterpretedtobethenorthernextensionoftheNorthernLimboftheBushveldComplexundertheWaterbergGrouprocks.ThishasconfirmedtheexistenceofmineralisedzoneswithpotentiallyeconomicconcentrationsofPGM's.ImprovedunderstandingofthegeologyallowedimprovedResourceestimationswhichprovidedincreasesintheResourcesreported.

TheEstimationwasundertakenusingbestpractisesintermsofgeostatistics.

TheobjectivesintermsofadherencetotheScopeofthisStudyweremetinthatanupdatedresourcemodelwasproduced.

Thedelineation of the F Zone and T Zone units has been advanced due to better understanding of the geology. As with the previous resource estimate, thismineralresourceestimateusedmineralisedlayersidentifiedwithinthisWaterbergProjectarea.Thedatabaseusedforthisestimateconsistedof294drillholesand459 deflections. The mineralisation is considered open down-dip and along strike. The Waterberg Project represents one of the largest discoveries of PGEmineralizationinrecenthistory.MetallurgicalworkcompletedatMintekalongwithpreviouslypublishedPEAaddstotheconfidenceinthisdiscovery.

1.12Recommendations

Itisrecommendedthatexplorationdrillingcontinuesinordertoadvancethegeologicalconfidenceinthedepositthroughinfilldrilling.Thiswillprovidemoredata for detailed logging and refinedmodelling. This is expected to confirm the geological continuity and allow the declaration of further Indicated MineralResources.

Giventhe results of the diamonddrilling onthe northern area andthe extent of target areas generated bygeophysical surveys, the completion of the plannedexplorationdrillingisrecommendednorthofthelocationofthecurrentexplorationprogramme.Theobjectiveoftheexplorationdrillingwouldbetofindthelimitofthecurrentdeposit,confirmtheunderstandingoftheFZoneandallowappropriateselectionofthepotentialminingcut.ThiswillimprovegeoscientificconfidenceinordertoupgrademineralresourcestotheIndicatedcategory.

Metallurgical and other engineering work completed and underway indicates that a Pre-feasibility study is warranted and recommended to proceed on theWaterbergProject.ThedepositshouldbestudiedformechanisedminingmethodssuchasroomandpillarandlongholeminingasaresultofthethicknessofboththeTandFZones.

OtherProjects

TheCompanyalsoholdsinterests invariousother earlystageexplorationprojects locatedinCanadaandinSouthAfrica. TheCompany continuestoevaluateexplorationopportunitiesbothoncurrentlyownedpropertiesandonnewprospects.

RecentDevelopments

EffectiveJuly1,2016,wesetthesalaryofR.MichaelJones,ourChiefExecutiveOfficer,atCAN$525,000,FrankHallam,ourChiefFinancialOfficer,at$475,000andPeterBusse,ourChiefOperatingOfficer,atCAN$350,000.WealsoestablishedthemaximumdiscretionarycashbonuseligibilitywithrespecttothecalendaryearendedDecember31,2016atupto70%ofsuchsalariesforMessrs.JonesandHallamandupto60%ofsuchsalaryforMr.Busse,basedonmilestonesanddeliverablesestablishedbythecompensationcommitteeoftheCompany.

Furtherdetails concerningtheCompany,includinginformationwithrespect totheCompany'sassets, operationsandhistory, areprovidedintheAIFandotherdocumentsincorporatedbyreferenceintothis Prospectus. Readersareencouragedtothoroughlyreviewthesedocumentsastheycontainimportant informationabouttheCompany.

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RISKFACTORS

AninvestmentintheSecuritiesinvolvesahighdegreeofriskandmustbeconsideredahighlyspeculativeinvestmentduetothenatureoftheCompany'sbusinessand the present stage of exploration and development of its mineral properties. Resource exploration and development is a speculative business, characterized by anumber of significant risks including, among other things, unprofitable efforts resulting not only from the failure to discover mineral deposits but also fromfindingmineraldeposits,which,thoughpresent,areinsufficientinquantityorqualitytoreturnaprofitfromproduction.

ProspectivepurchasersoftheSecuritiesshouldcarefullyconsidertheriskfactorssetoutbelow,aswellastheinformationincludedinanyProspectusSupplementand in documents incorporated by reference in this Prospectus and any applicable Prospectus Supplement, before making an investment decision to purchase theSecurities.Specificreferenceismadetothesectionentitled"RiskFactors"intheAIF.See"DocumentsIncorporatedbyReference".Withoutlimitingtheforegoing,thefollowingriskfactorsshouldbegivenspecialconsiderationwhenevaluatinganinvestmentintheSecurities.Eachoftherisksdescribedhereinandinthesesectionsanddocumentscouldmateriallyandadverselyaffectourbusiness,financialcondition,resultsofoperationsandprospects,causeactualeventstodiffermateriallyfromthosedescribed in the Forward-Looking Statements and information relating to the Company and could result in a loss of your investment. Additional risks not currentlyknowntotheCompany,orthattheCompanycurrentlydeemsimmaterial,mayalsohaveamaterialadverseeffectontheCompany.

RisksRelatingtotheCompany

The Company will require additional financing, which may not be available on acceptable terms, if at all.

TheAmended&RestatedSprottFacilityrequirestheCompanytocompletetheEquityFinancingsbyDecember31,2016.Even iftheEquityFinancingsandanyOfferingsaresuccessfullycompleted,theCompanymayberequiredtosourceadditionalfinancingbywayofprivateorpublicofferingsofequityordebtorthesaleofprojectorpropertyinterestsinordertohavesufficientworkingcapitalforthedevelopmentandoperationofProject1andthecontinuedexplorationontheWaterbergProject,aswellasforgeneralworkingcapitalpurposes.TheProject1WorkingCapitalFacilitiesprovide,however,thattheSprottLenderscanrequirerepaymentoftheSecond Sprott Advance from the proceeds of an equity or debt financing (excluding intercompany financings) prior to December 31, 2017. In addition, 50%of theproceedsfromanyequityordebtfinancings(excludingintercompanyfinancings)withavalueexceedingUS$1millionthatcloseafterJanuary31,2017,inthecaseoftheAmended&RestatedSprottFacility(notincludingfinancingswheretheproceedsareusedtorepaytheSecondSprottAdvance,attheelectionoftheSprottLenders)andDecember31,2017,inthecaseoftheLibertyFacility,aretobepaidtotheLendersinpartialrepaymentoftheProject1WorkingCapitalFacilities,subjecttotermsandconditionsoftheIntercreditorAgreement.

Thesuccessandthepricingofanysuchcapitalraisingand/ordebtfinancingwillbedependentupontheprevailingmarketconditionsatthattime.TherecanbenoassurancethatfinancingwillbeavailabletotheCompanyor,ifit isavailable,thatit willbeofferedonacceptableterms.IfadditionalfinancingisraisedthroughtheissuanceoftheSecurities,thismayhaveadepressiveeffectonthepriceoftheCommonSharesandtheinterestsofshareholdersinthenetassetsoftheCompanymaybediluted.

AnyfailurebytheCompanytoobtainrequiredfinancingonacceptabletermsoronatimelybasiscouldcausetheCompanytodelaydevelopmentofitsmaterialprojectsorcouldresultintheCompanybeingforcedtosellsomeofitsassetsonanuntimelyorunfavorablebasis.Anysuchdelayorsalecouldhaveamaterialadverseeffect ontheCompany'sfinancial condition,resultsofoperationsandliquidity.FailuretocompletetheEquityFinancingsbyDecember31,2016wouldconstituteaneventofdefaultundertheProject1WorkingCapitalFacilities.AnydefaultundertheProject1WorkingCapitalFacilitiescouldresultinthelossoftheCompany'sentireinterestinPTMRSA,andthereforeitsinterestsinProject1,Project3andtheWaterbergProject.

The Company has a history of losses and it anticipates continuing to incur losses.

The Companyhas a history of losses. The Companyanticipates continued losses until it can successfully place one or more of its propertiesintocommercialproductiononaprofitablebasis.ItcouldbeyearsbeforetheCompanyreceivesanyprofitsfromanyproductionofmetals,ifever.IftheCompanyisunabletogenerate

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significantrevenueswithrespecttoitsproperties,theCompanywillnotbeabletoearnprofitsorcontinueoperations.

The Company may be unable to generate sufficient cash to service its  debt,  the terms of the agreements governing the Company's debt may restrict  its  current orfuture operations and the indebtedness may adversely affect the Company's financial condition and results of operations.

TheCompany'sabilitytomakescheduledpaymentsontheProject1WorkingCapitalFacilitieswilldependonitsabilityto successfullyramp-upproductionatProject 1, and on the Company's financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certainfinancial,business,legislative,regulatoryandotherfactorsbeyonditscontrol.IftheCompany'scashflowsandcapitalresourcesareinsufficienttofunditsdebtserviceobligations,theCompanycouldfacesubstantialliquidityproblemsandcouldbeforcedtoreduceordelayinvestmentsandcapitalexpendituresortodisposeofmaterialassetsoroperations,seekadditionaldebtorequitycapitalorrestructureorrefinancetheCompany'sindebtedness,includingindebtednessundertheProject1WorkingCapital Facilities. The Company may not be able to effect any such alternative measures on commercially reasonable terms or at all and, even if successful, thosealternativesmaynotallowtheCompanytomeetitsscheduleddebtserviceobligations.

Inaddition,abreachofthecovenantsundertheProject1WorkingCapitalFacilitiesortheCompany'sotherdebtinstrumentsfromtimetotimecouldresultinaneventofdefaultundertheapplicableindebtedness.Suchadefaultmayallowthecreditorstoacceleratetherelateddebt,mayresultintheimpositionofdefaultinterest,andmayresultintheaccelerationofanyotherdebttowhichacrossaccelerationorcrossdefaultprovisionapplies.Inparticular,acrossdefaultprovisionappliestotheAmended&RestatedSprottFacilityandtheLibertyFacility.IntheeventaLenderacceleratestherepaymentoftheCompany'sborrowings,theCompanymaynothavesufficientassetstorepayitsindebtedness.

The Project 1 Working Capital Facilities contain a number of covenants that impose operating and financial restrictions on the Company and may limit theCompany's ability toengagein acts that maybe in its longtermbest interest. In particular, the Project 1 WorkingCapital Facilities restrict the Company's ability tomodifymaterialcontracts,todisposeofassets,tousetheproceedsfrompermitteddispositions,toincuradditionalindebtedness,toenterintotransactionswithaffiliates,andtograntsecurityinterestsorencumbrancesandtouseproceedsfromfuturedebtorequityfinancings.Inaddition,theCompanymustobtaintheconsentoftheagentundereachProject1WorkingCapitalFacilitytoconsolidateandcontributetheWaterbergJVProjectandtheWaterbergExtensionProjecttoWaterbergJVCo.Suchconsentsmaynotbeunreasonablywithheldbytheagents.Asaresultoftheserestrictions,theCompanymaybelimitedinhowitconductsitsbusiness,maybeunabletoraise additional debt or equity financing, may be unable to compete effectively or to take advantage of newbusiness opportunities or may become in breach of itsobligationstojointventurepartnersandothers,eachofwhichmayaffecttheCompany'sabilitytogrowinaccordancewithitsstrategyormayotherwiseadverselyaffectitsbusinessandfinancialcondition.

Further,theCompany'smaintenanceofsubstantiallevelsofdebtcouldadverselyaffectitsfinancialconditionandresultsofoperationsandcouldadverselyaffectitsflexibilitytotakeadvantageofcorporateopportunities.SubstantiallevelsofindebtednesscouldhaveimportantconsequencestotheCompany,including:

• limitingtheCompany'sabilitytoobtainadditionalfinancingtofundfutureworkingcapital,capitalexpenditures,acquisitionsorothergeneralcorporaterequirements,orrequiringtheCompanytomakenon-strategicdivestitures;

• requiring a substantial portion of the Company's cash flows to be dedicated to debt service payments instead of other purposes, therebyreducingtheamountofcashflowsavailableforworkingcapital,capitalexpenditures,acquisitionsandothergeneralcorporatepurposes;

• increasingtheCompany'svulnerabilitytogeneraladverseeconomicandindustryconditions;

• exposingtheCompanytotheriskofincreasedinterestratesforanyborrowingsatvariableratesofinterest;

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• limitingtheCompany'sflexibilityinplanningforandreactingtochangesintheindustryinwhichitcompetes;

• placingtheCompanyatadisadvantagecomparedtoother,lessleveragedcompetitors;and

• increasingtheCompany'scostofborrowing.

The Company has granted first and second ranking security interests in favour of the Lenders over all of its personal property, subject to certain exceptions, and theCompany  has  pledged  its  shares  of  PTM  RSA  to  the  Lenders  under  the  Project  1  Working  Capital  Facilities,  which  may  have  a  material  adverse  effect  onthe Company.

TosecureitsobligationsundertheProject1WorkingCapitalFacilities(andinthecaseoftheLibertyFacility, the productionpaymentagreementbetweentheCompany,PTMRSAandLibertyHoldings,datedNovember19,2015,asamended,withrespecttoProject1andProject3(the"ProductionPaymentAgreement")),theCompanyhasenteredintoageneralsecurityagreementunderwhichtheCompanyhasgrantedfirstandsecondrankingsecurityinterestsinfavouroftheLendersoverallofitspresentandafter-acquiredpersonalproperty,subjecttocertainexceptions,andasharepledgeagreementpursuanttowhichtheCompanyhasgrantedafirstandsecond priority security interest in favour of the Lenders over all of the issued shares in the capital of PTM RSA. PTM RSA has also guaranteed the Company'sobligationstotheLenders.ThesesecurityinterestsandguaranteemayimpacttheCompany'sabilitytoobtainprojectfinancingfortheWaterbergProjectoritsabilitytosecure other types of financing. The Project 1 Working Capital Facilities have various covenants and provisions, including target production provisions, paymentcovenants and financial tests that must be satisfied and complied with during the term of the Project 1 Working Capital Facilities. There is no assurance that suchcovenantswillbesatisfied.AnydefaultunderProject1WorkingCapitalFacilities,includinganycovenantsthereunder,couldresultinthelossoftheCompany'sentireinterestinPTMRSA,andthereforeitsinterestsinProject1,Project3andtheWaterbergProject.

The Company has a history of negative operating cash flow, and may continue to experience negative operating cash flow.

TheCompanyhashadnegativeoperatingcashflowinrecentfinancialyears.TheCompany'sabilitytoachieveandsustainpositiveoperatingcashflowwilldependonanumberoffactors,includingtheCompany'sabilitytoproduceatProject1onaprofitablebasisandadvancetheWaterbergProjectintoproduction.TotheextentthattheCompanyhasnegativecashflowinfutureperiods,theCompanymayneedtodeployaportionofitscashreservestofundsuchnegativecashflow.TheProject1Working Capital Facilities require that the Company maintain consolidated cash and cash equivalents of at least US$5 million and working capital in excess ofUS$5 million. The Liberty Facility requires that the Company maintain a debt service coverage ratio of at least 1.20 to 1. The Company may be required to raiseadditional funds through the issuance of additional equity or debt securities to satisfy the minimumcash balance requirements under the Project 1 Working CapitalFacilities. The Project 1 Working Capital Facilities provide, however, that a portion of the proceeds from any equity or debt financings (excluding intercompanyfinancings)arerequiredtobepaidtotheLendersinpartialrepaymentoftheProject1WorkingCapitalFacilities,subjecttothetermsandconditionsoftheIntercreditorAgreement.See"BusinessoftheCompany—Project1WorkingCapitalFacilities".TherecanbenoassurancethatadditionaldebtorequityfinancingorothertypesoffinancingwillbeavailableifneededorthatthesefinancingswillbeontermsatleastasfavorabletotheCompanyasthoseobtainedpreviously.

The Company may not be able to continue as a going concern.

The Company has limited financial resources. The Company's ability to continue as a going concern is dependent upon, among other things, the Companyestablishingcommercialquantitiesofmineralreservesandsuccessfullyestablishingprofitableproductionofsuchmineralsor,alternatively,disposingofitsinterestsonaprofitablebasis.Anyunexpectedcosts,problemsordelayscouldseverelyimpacttheCompany'sabilitytocontinueexplorationanddevelopmentactivities.ShouldtheCompany be unable to continue as agoing concern, realization of assets and settlement of liabilities in other than the normal course of business maybe at amountsmateriallydifferentthantheCompany'sestimates.TheamountsattributedtotheCompany'sexplorationpropertiesinitsfinancialstatementsrepresentacquisitionandexplorationcostsandshouldnotbetakentorepresentrealizablevalue.

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There may be further delays in the production ramp-up of Project 1 which could result in a default under the Project 1 Working Capital Facilities and could have amaterial adverse effect on the Company's financial condition and prospects.

Theramp-upofproductionatProject1hasbeenslowerthananticipatedandtheCompanymayexperiencefurtherdelays.Timelinesarebasedonmanagement'scurrentexpectationsandmaybeaffectedbyanumberoffactors,including:

• theavailabilityofadequatefundstocompleteundergrounddevelopment,includingtheanticipatednetproceedsofanOffering,orfundsobtainedthroughalternativesourcesoffinancing;

• theabilityoftheCompanytocompletetheEquityFinancingsbyDecember31,2016;

• consultants'analysesandrecommendations;

• therateatwhichexpendituresareincurred;

• delaysinconstructionschedules;

• contractorperformanceanddeliveryofservices,changesincontractorsortheirscopeofworkoranydisputeswithcontractors;

• availabilityofmajorequipmentandpersonnel;

• theCompany'sabilitytomaintainrequisitepermitsandlicenses(includingawateruselicense,andtheenvironmentalauthorizationheldbyMaseve);

• otherpotentiallyrequiredauthorizationsarisingfromrecentlegislativeamendments;and

• therateofundergrounddevelopmentinthenorthandsouthdeclines.

Someof the abovefactors are beyondthe Company's control andcouldcause management's timelines not to berealized. It is commonfor miningprojects toexperienceunexpectedcosts,problemsanddelays.ThetargetedstartdateforfirstconcentrateproductionatProject1inthefourthquarterofcalendar2015wasdelayed.Delays in production ramp-up at Project 1 have also occurred. While there has been no material cost overrun with regard to capital costs, the delay in ramp-up ofproductionatProject1hascausedadelayintheCompany'sreceiptofanticipatedproductionrevenue.TheCompanyhadplannedtousethisrevenuetocoveraportionoftheongoingcapitalcostsofProject1.AsofSeptember30,2016,theanticipatedproductionrevenueshortfallofapproximatelyUS$42millionhasbeenaccommodatedbyamounts drawndownunder the LibertyFacility andtheAmended&RestatedSprott Facility. Further delaysin theproductionramp-upof Project 1couldhaveamaterial adverse effect on the Company's financial condition and prospects and may also result in a default under the target production provisions of the Project 1WorkingCapitalFacilities,whichmayaccelerateamountsduethereunderandpermittheLenderstorealizeonanyapplicablesecuritythereunder.ThiscouldresultinacompletelossoftheCompany'sassets,includingitsinvestmentinPTMRSA,andthereforeinProject1,Project3andtheWaterbergProject.ThereisnoassurancethatinsuranceforanyinterruptioninproductionatProject1willbeavailabletotheCompanyoneconomictermsorinsuchamountsaswouldbeadequatetocoveralllossesoratall.

Interruptions in production may trigger events of default under the Project 1 Working Capital Facilities. Under the Project 1 Working Capital Facilities, theCompanywillbeindefaultifitfailstomeetrollingthree-monthaverageproductiontargetsatProject1,startingonOctober31,2016.IftheCompanyfailstomeettheseproductiontargets,thereisnoguaranteethatLibertyHoldingsortheSprottLenderswillagreetofurtheramendmentstotheProject1WorkingCapitalFacilities.AnydefaultundertheProject1WorkingCapitalFacilitiescouldresultinthelossoftheCompany'sinterestinPTMRSAandthereforeitsinterestsinProject1,Project3andtheWaterbergProject.

There can be no assurance that underground development and production ramp-up at Project 1 will meet its production ramp-up timeline or be completed at all orthat production at Project 1 will meet the Company's expectations.

The Company is in the process of underground development and production ramp-up at Project 1. While the Company expects commercial productionto beachievedbyearly2017,therecanbenoassurancethattheCompanywillmeetthistarget.Inaddition,theCompanyhascertainexpectationswithrespecttoperformance

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ofProject1,buttherecanbenoassurancethataftertheundergrounddevelopmentandproductionramp-upiscompletethatProject1willperformtosuchexpectations.Delaysintheundergrounddevelopmentandproductionramp-upandlower-than-expectedperformancecouldimpacttheCompany'srevenueandcashfloworresultinaneventofdefaultrelatingtothetargetproductionprovisionsundertheProject1WorkingCapitalFacilities.

UntilsuchtimethatsteadystatecommercialproductionisachievedatProject1,thereisnoguaranteethatProject1willgenerateprojectedrevenueorcashflow.

The Company's properties, including Project 1, may not be brought into a state of commercial production.

AlthoughtheCompanyhascompletedcommissioningatProject1,undergrounddevelopmentandproductionramp-upcontinueandProject1hasnotyetreachedcommercialproduction.Developmentofmineralpropertiesinvolvesahighdegreeofriskandfewpropertiesthatareexploredareultimatelydevelopedintoproducingmines. Thecommercial viability of a mineral deposit is dependent upona numberof factors whichare beyondtheCompany's control, includingtheattributes of thedeposit, commodity prices,government policies and regulation and environmental protection. Fluctuations in the market prices of minerals may render reserves anddepositscontainingrelativelylowergradesofmineralizationuneconomic.ThedevelopmentoftheCompany'sproperties,includingProject1,willrequireobtaininglanduseconsents,permitsandtheconstructionandoperationofmines,processingplantsandrelatedinfrastructure.AlthoughProject1hasbeengrantedthenecessarypermitsandlandusezoning,theCompanyissubjecttoalloftherisksassociatedwithestablishingnewminingoperations,including:

• thetimingandcost,whichcanbeconsiderable,oftheconstructionofminingandprocessingfacilitiesandrelatedinfrastructure;

• theavailabilityandcostofskilledlabourandminingequipment;

• theavailabilityandcostofappropriatesmeltingand/orrefiningarrangements;

• theneedtoobtainandmaintainnecessaryenvironmentalandothergovernmentalapprovalsandpermits,andthetimingofthoseapprovalsandpermits;

• in the event that the required permits are not obtained in a timely manner, the risks of government environmental authorities issuing directives orcommencing enforcement proceedings to cease operations or administrative, civil andcriminal sanctions beingimposedonthe Company, its directorsandemployees;

• theavailabilityoffundstofinanceconstructionanddevelopmentactivities;

• potentialoppositionfromnon-governmentalorganizations,environmentalgroupsorlocalgroupswhichmaydelayorpreventdevelopmentactivities;and

• potentialincreasesinconstructionandoperatingcostsduetochangesinthecostoffuel,power,materialsandsuppliesandforeignexchangerates.

Thecosts,timingandcomplexitiesofmineconstructionanddevelopmentareincreasedbytheremotelocationoftheWaterbergProject,withadditionalchallengesrelatedthereto,includingwater andpowersupplyandothersupport infrastructure. Forexample, water resourcesarescarceat theWaterbergProject. If theCompanyshoulddecidetomineattheWaterbergProject,itwillhavetoestablishsourcesofwateranddeveloptheinfrastructurerequiredtotransportwatertotheprojectarea.Similarly,theCompanywillneedtosecureasuitablelocationbypurchaseorlongtermleaseofsurfaceoraccessrightsattheWaterbergProjecttoestablishthesurfacerightsnecessarytomineandprocess.

Itiscommoninnewminingoperationstoexperienceunexpectedcosts,problemsanddelaysduringdevelopment,constructionandmineramp-up.Accordingly,therearenoassurancesthattheCompany'sproperties,includingProject1,willbebroughtintoastateofcommercialproduction.

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Estimates of mineral reserves and mineral resources are based on interpretation and assumptions and are inherently imprecise.

ThemineralresourceandmineralreserveestimatescontainedinthisProspectusandtheotherdocumentsincorporatedbyreferencehereinhavebeendeterminedandvalued based on assumed future prices, cut off grades and operating costs. However, until mineral deposits are actually mined and processed, mineral reserves andmineral resourcesmustbeconsideredasestimatesonly.Anysuchestimatesareexpressionsofjudgmentbasedonknowledge,miningexperience, analysisofdrillingresults and industry practices. Estimates of operating costs are based on assumptions including those relating to inflation and currency exchange, which may proveincorrect.Estimatesofmineralizationcanbeimpreciseanddependupongeologicalinterpretationandstatisticalinferencesdrawnfromdrillingandsamplinganalysis,whichmayprovetobeunreliable.Inaddition,thegradeand/orquantityofpreciousmetalsultimatelyrecoveredmaydifferfromthatindicatedbydrillingresults.Therecanbenoassurancethatpreciousmetalsrecoveredinsmallscaletestswillbeduplicatedinlargescaletestsunderonsiteconditionsorinproductionscale.Amendmentstothemineplansandproductionprofilesmayberequiredastheamountofresourceschangesoruponreceiptoffurtherinformationduringtheimplementationphaseoftheproject.Extendeddeclinesinmarketpricesforplatinum,palladium,rhodiumandgoldmayrenderportionsoftheCompany'smineralizationuneconomicandresultinreducedreportedmineralization.Anymaterialreductionsinestimatesofmineralization,oroftheCompany'sabilitytodevelopitspropertiesandextractandsellsuchminerals,couldhaveamaterialadverseeffectontheCompany'sresultsofoperationsorfinancialcondition.

Actual capital costs, operating costs, production and economic returns may differ significantly from those the Company has anticipated and there are no assurancesthat any future development activities will result in profitable mining operations.

ThecapitalcoststotaketheCompany'sprojectsintocommercialproductionmaybesignificantlyhigherthananticipated.NoneoftheCompany'smineralpropertieshasanoperatinghistoryuponwhichtheCompanycanbaseestimatesoffutureoperatingcosts.DecisionsaboutthedevelopmentoftheCompany'smineralpropertieswillultimatelybebaseduponfeasibilitystudies.Feasibilitystudiesderiveestimatesofcashoperatingcostsbasedupon,amongotherthings:

• anticipatedtonnage,gradesandmetallurgicalcharacteristicsoftheoretobeminedandprocessed;

• anticipatedrecoveryratesofmetalsfromtheore;

• cashoperatingcostsofcomparablefacilitiesandequipment;and

• anticipatedclimaticconditions.

Capitalcosts,operatingcosts,productionandeconomicreturnsandotherestimatescontainedinstudiesorestimatespreparedbyorfortheCompanymaydiffersignificantlyfromthoseanticipatedbytheCompany'scurrentstudiesandestimates,andtherecanbenoassurancethattheCompany'sactualcapitalandoperatingcostswillnotbehigherthancurrentlyanticipated.Todate,costescalationinRandtermshasbeensubstantiallyoffsetbyaweakerRand,butthereisnoguaranteethatthisoutcome will continue. As a result of higher capital and operating costs, production and economic returns may differ significantly from those the Company hasanticipated.

The Company is subject to the risk of fluctuations in the relative values of the U.S. dollar, the Rand and the Canadian dollar.

TheCompanymaybeadverselyaffectedbyforeigncurrencyfluctuations.EffectiveSeptember1,2015,theCompanyadoptedU.S.dollarsasthecurrencyforthepresentationofitsfinancialstatements.Accordingly,thefinancialstatementsincorporatedbyreferenceinthisProspectusarepresentedinCanadiandollars,inthecaseofthe fiscal years ended August 31, 2015 and 2014, and in U.S. dollars, in the case of the three- and nine-month periods ended May 31, 2016 andMay 31, 2015.Historically,theCompanyhasprimarilygeneratedfundsthroughequityinvestmentsintotheCompanydenominatedinCanadianorU.S.dollars.Inthenormalcourseofbusiness, the Companyenters into transactions for the purchase of supplies andservices primarily denominated in Randor Canadian dollars. The Companyalso hasassets,cashandliabilitiesdenominatedinRand,Canadian

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dollarsandU.S.dollars.SeveraloftheCompany'soptionstoacquirepropertiesorsurfacerightsinSouthAfricamayresultinpaymentsbytheCompanydenominatedinRandorinU.S.dollars.Exploration,developmentandadministrativecoststobefundedbytheCompanyinSouthAfricawillalsobedenominatedinRand.Settlementofsales of minerals fromtheCompany'sprojects, once commercial production commences, will be in Rand, andwill be converted to U.S. dollars to makepayment ofprincipalandinterestontheProject1WorkingCapitalFacilities.FluctuationsintheexchangeratesbetweentheU.S.dollarandtheRandorCanadiandollarmayhaveamaterialadverseeffectontheCompany'sfinancialresults.

Inaddition,SouthAfricahasinthepastexperienceddoubledigitratesofinflation.IfSouthAfricaexperiencessubstantialinflationinthefuture,theCompany'scostsinRandtermswillincreasesignificantly,subjecttomovementsinapplicableexchangerates.InflationarypressuresmayalsocurtailtheCompany'sabilitytoaccessglobalfinancialmarketsinthelongertermanditsabilitytofundplannedcapitalexpenditures,andcouldmateriallyadverselyaffecttheCompany'sbusiness,financialconditionandresultsofoperations.PotentialdowngradestoSouthAfrica'ssovereigncurrencyratingsbyinternationalratingsagenciesalsowouldlikelyadverselyaffectthevalueoftheRandrelativetotheCanadianorU.S.dollar.TheSouthAfricangovernment'sresponsetoinflationorothersignificantmacro-economicpressuresmayinclude the introduction of policies or other measures that could increase the Company's costs, reduce operating margins andmaterially adverselyaffect its business,financialconditionandresultsofoperations.

Metal prices are subject to change, and low prices or a substantial or extended decline or volatility in such prices could materially and adversely affect the value ofthe Company's mineral properties and potential future results of operations and cash flows.

Metal prices have historically been subject to significant price fluctuations. Noassurance may be given that metal prices will remain stable.SignificantpricefluctuationsovershortperiodsoftimemaybegeneratedbynumerousfactorsbeyondthecontroloftheCompany,including:

• domesticandinternationaleconomicandpoliticaltrends;

• expectationsofinflation;

• currencyexchangefluctuations;

• interestrates;

• globalorregionalconsumptionpatterns;

• speculativeactivities;and

• increasesordecreasesinproductionduetoimprovedminingandproductionmethods.

LowmetalpricesorsignificantorcontinuedreductionsorvolatilityinmetalpricesmayhaveanadverseeffectontheCompany'sbusiness,includingtheamountoftheCompany'smineralreserves,theeconomicattractivenessoftheCompany'sprojects,theCompany'sabilitytoobtainfinancinganddevelopprojects,theamountoftheCompany'srevenuesorprofitorlossandthevalueoftheCompany'sassets.AnimpairmentinthevalueoftheCompany'sassetswouldrequiresuchassetstobewrittendowntotheirestimatednetrecoverableamount.TheCompanyhasnotyetdeterminedwhetherawritedownofassetswillberequiredasatAugust31,2016.

The failure of the Company or its joint venture partners to fund their pro-rata share of funds under the respective joint ventures may have a material adverse effecton the Company's business and results of operations.

TheCompany,throughitssubsidiaries, participatesinjointventureswithvariouspartners. Inparticular, PTMRSA,AfricaWideandMasevearepartiestotheMaseveShareholdersAgreementrelatedtotheexplorationanddevelopmentofProject1andProject3.OnOctober18,2013,AfricaWideadvisedtheCompanythatitwould not be funding its approximately US$21.8 million share of a six-month budget and cash call unanimously approved by the board of directors of Maseve. OnMarch3,2014,AfricaWideadvisedtheCompanythatitwouldnotbefundingitsapproximatelyUS$21.52millionshareofasecondcashcall.AfricaWide'sdecisionmayresultinsignificantadverseeffectsontheCompanyandMaseve,includingdelays,increases

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inexpenses,lessadvantageousfinancingtermsand,potentially,thehaltingofoperationsatProject1.Forexample,asaresultofAfricaWide'sdecisionnottofunditscashcalls,aprocurementfreezewasimplementedonProject1forapproximately12weeksfromlate2013into2014,whichresultedindelaystotheacquisitionandprocurementofvariousgoodsandservices,delayingmillandsurfaceinfrastructureconstruction.AnyfailurebyPTMRSA,AfricaWideoranyfutureshareholderundertheMaseveShareholdersAgreementtocontributeitspro-ratashareofacashcallwouldresultindilutionofthatparty'sinterestinproportiontotheshortfall,andcouldhaveamaterialadverseeffectontheCompanyasdiscussedabove.

Pursuant to the termsof the JOGMEC2nd Amendment, JOGMEChas beenfundingall workonthe Waterberg Project in accordance with a US$20millioncommitment. If the corporatization of the Waterberg Project is completed and the Waterberg Project becomes held by Waterberg JV Co., it is anticipated that theprocedures governing further funding for theWaterberg Project will be set forth in a newshareholders' agreement among PTMRSA, JOGMECand Mnombo. Thisagreementisintheprocessofbeingnegotiated,basedonprovisionssetforthintheJOGMECAgreement,asamendedbytheJOGMEC2ndAmendment.IfclosingoftheJOGMEC2ndAmendmentdoesnotoccur,theJOGMEC2ndAgreementwillterminateandthepartieswilldefaulttotheJOGMECAgreementarrangement,withsuch portion of the US$20 million in expenditures funding already paid by JOGMEC being deemed to be an advance by JOGMEC towards its future spendingcommitmentsontheWaterbergJVProject.TheCompanyandMnombowillberequiredtomakecorrespondingcashpaymentsinrespectoftheWaterbergJVProjecttoproratamatchtheadvancepaymentsmadebyJOGMEC,within120daysoftheterminationoftheJOGMEC2ndAmendment,failingwhichtheyshallsufferequitydilutionsundertheJOGMECAgreementasifsuchequivalentprorataamountswereapprovedprogramfundinginwhichtheyelectednottoparticipate.

PriortoJOGMEC'sUS$20millioncommitment,theCompanyfundedMnombo's26%shareoftheworkontheWaterbergProject.TheabilityofMnombotorepaythe Company for advances as at August 31, 2016 of approximately Rand 25.53 million (approximately US$1.74 million as at August 31, 2016) or to fund futureinvestmentintheWaterbergProject maybeuncertain. If theCompanyfails tofundMnombo'sfuturecapital obligationsfortheWaterbergProject, Mnombomayberequiredtoobtainfundingfromalternativesources,whichmaynotbeavailableonfavorableterms,oratall.IfMnomboisunabletofunditsshareofsuchwork,thismaydelay project expenditures and may result in dilution of Mnombo's interest in the Waterberg Project and require the sale of the diluted interests to another qualifiedBEEentity.

BecausethedevelopmentoftheCompany'sjointventureprojectsdependsontheabilitytofinancefurtheroperations,anyinabilityoftheCompanyoroneormoreofitsjointventurepartnerstofunditsrespectivefundingobligationsandcashcallsinthefuturecouldrequiretheotherpartners,includingtheCompany,toincreasetheirfundingoftheproject,whichtheymaybeunwillingorunabletodoonatimelyandcommerciallyreasonablebasis,oratall.Theoccurrenceoftheforegoing,thefailureofanypartner,includingtheCompany,toincreasetheirfundingasrequiredtocoveranyshortfall,aswellasanydilutionoftheCompany'sinterestsinitsjointventuresasaresultofitsownfailuretosatisfyacashcall,mayhaveamaterialadverseeffectontheCompany'sbusinessandresultsofoperations.

The dilution of Africa Wide may have a material adverse effect on the Company's business and results of operations.

Under the termsof the Maseve Shareholders Agreement, the board of directors of Maseve maymakecash calls onPTMRSAandAfrica Wide. AfricaWidedeclinedtofunditsshareofcashcallsinOctober2013andinMarch2014.Asaresultofthefirstmissedcashcall,theCompanyenteredintoarbitrationproceedingsagainstAfricaWidetodeterminetheextentofthedilutionofAfricaWide'sinterestinMaseve,inaccordancewiththetermsoftheMaseveShareholdersAgreement.OnAugust20,2014,anarbitratordeterminedthatAfricaWide'sshareholdinginMasevewouldbereducedto21.2766%.Basedonthearbitrationaward,AfricaWidehasbeenfurtherdilutedtoapproximately17.1%asaresultofAfricaWide'sfailuretofundthesecondcashcallandthereforetheCompany'sshareholdinginMasevehasincreased to approximately 82.9%. In addition, as a result of the transactions explained under the risk factor captioned "The failure to maintain or increase equityparticipationbyHDSAsintheCompany'sprospectingandminingoperationscouldadverselyaffecttheCompany'sabilitytomaintainitsprospectingandminingrights",thereisnoguaranteetheDMRwouldrecognizeAfricaWideasaqualifiedBEEentity.TocomplywiththeAmendedBroad-BasedSocio-EconomicEmpowermentCharterfortheSouthAfricanMiningIndustry(the"MiningCharter"),Masevewasrequiredtohave26%ownershipby

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aqualifiedBEEentitybyDecember31,2014inordertomaintaintheMiningRightingoodstanding.SubsequenttotheendoftheCompany'sthirdfiscalquarterof2016,theDMRrequestedanupdateregardingtheCompany'seffortstoincreasetheHDSAequityownershippercentageinMasevefrom17.1%to26%.TheCompanymetwiththeDMRinearlyJune2016andtheDMRrequestedafurtherupdatebyAugust7,2016,whileremindingtheCompanyoftheriskofpotentialactionunderSections47and93oftheMPRDAiftheCompanywerenottoincreasetheHDSAownershippercentage.TheCompanyhasmadeseveralattemptstoscheduleameetingwiththeDMRtofurtherdiscussthisissue.Todate,whiletheCompanyhasbeenadvisedbytheDMRthatthematterwillbediscussedatalaterdate,nosuchmeetinghastakenplaceandtheDMRhasnotissuedanoticeofnon-compliancewiththeMPRDA.

InadditiontounaffiliatedBEEqualifiedcompanies,theCompanyhasconsideredMnomboastheBEEcompanyforsuchatransactionandremainsopentootherpossibilities.ShouldMnomboacquireaninterestinMaseve,aswithfundingtodatefortheWaterbergProject,theCompanywouldexpecttocoverMnombo'sshareofanycashcalls. If Mnombowasnot deemedtobeasuitable BEEcompanyorif theCompanywasunsuccessful inreachinganagreement onthetermsofMnombo'sinvestment in Maseve, the Company would be required to reach an agreement with another qualified BEE entity and, failing that, the Company may face possiblesuspensionorcancellationoftheMiningRightunderaprocessgovernedbySection47oftheMPRDA.

Any disputes or disagreements with the Company's joint venture partners could materially and adversely affect the Company's business.

TheCompanyparticipatesinjointventuresandmayenterintoothersimilararrangementsinthefuture.PTMRSAisapartytotheMaseveShareholdersAgreementrelatedtotheexplorationanddevelopmentofProject1andProject3.Inaddition,PTMRSAisalsoapartytotheWaterbergExtensionJVAgreementandtheJOGMECAgreement,asamendedbytheJOGMEC2ndAmendment,relatedtotheexplorationanddevelopmentoftheWaterbergProject.IfthecorporatizationoftheWaterbergProjectiscompleted,PTMRSAwillbecomepartytoashareholders'agreementgoverningWaterbergJVCo.PTMRSAisalsoa49.9%shareholderofMnomboandtherelationshipamongtheshareholdersofMnomboisgovernedbyaformalshareholders'agreement.Anydisputeordisagreementwithajointventurepartner,anychangeintheidentity,managementorstrategicdirectionofajointventurepartner,oranydisagreementamongtheMnomboshareholders,includingwithrespecttoMnombo'sroleintheWaterbergProject,couldmateriallyadverselyaffecttheCompany'sbusinessandresultsofoperations.IfadisputearisesbetweentheCompanyandajointventurepartnerortheotherMnomboshareholdersthatcannotberesolvedamicably,theCompanymaybeunabletomoveitsprojectsforwardandmaybeinvolvedinlengthyandcostlyproceedingstoresolvethedispute,suchasthedisputethatrecentlyledtoarbitrationwithAfricaWide,whichcouldmateriallyandadverselyaffecttheCompany'sbusinessandresultsofoperations.

Most of the Company's properties contain no known mineral reserves.

OtherthanProject1,alloftheCompany'spropertiesareintheexplorationstage,meaningthattheCompanyhasnotdeterminedwhethersuchpropertiescontainmineral reserves that are economically recoverable. The Company may never discover metals in commercially exploitable quantities at these properties. Failure todiscovereconomicallyrecoverablereservesonamineralpropertywillrequiretheCompanytowriteoffthecostscapitalizedforthatpropertyinitsfinancialstatements.

Substantial additional workwill berequiredinordertodetermineif anyeconomicdeposits exist ontheCompany'sproperties outsideofProject 1. Substantialexpenditures are required to establish mineral reserves through drilling and metallurgical and other testing techniques. No assurance can be given that any level ofrecovery of any mineral reserves will be realized or that any identified mineral deposit will ever qualify as a commercial mineable ore bodythat can be legally andeconomicallyexploited.

Completion of a pre-feasibility study for the Waterberg Project is subject to economic analysis requirements.

Completionofapre-feasibilitystudyfortheWaterbergProjectissubjecttocompletionofapositiveeconomicanalysisofthemineraldeposit.

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If the Company is unable to retain key members of management, the Company's business might be harmed.

TheCompany'sdevelopmenttodatehasdepended,andinthefuturewillcontinuetodepend,ontheeffortsofitsseniormanagementincluding:R.MichaelJones,PresidentandChiefExecutiveOfficerandadirectoroftheCompany;FrankR.Hallam,ChiefFinancialOfficerandCorporateSecretaryandadirectoroftheCompany;andPeterBusse, ChiefOperatingOfficer oftheCompany.TheCompanycurrentlydoesnot, anddoesnotintendto, havekeypersoninsurancefortheseindividuals.DeparturesbymembersofseniormanagementcouldhaveanegativeimpactontheCompany'sbusiness,astheCompanymaynotbeabletofindsuitablepersonneltoreplace departingmanagement ona timely basis or at all. Theloss of anymember of thesenior management teamcouldimpair theCompany's ability toexecute itsbusinessplanandcouldthereforehaveamaterialadverseeffectontheCompany'sbusiness,resultsofoperationsandfinancialcondition.

If the Company is unable to procure the services of skilled and experienced personnel, the Company's business might be harmed.

ThereiscurrentlyashortageofskilledandexperiencedpersonnelintheminingindustryinSouthAfrica.ThecompetitionforskilledandexperiencedemployeesisexacerbatedbythefactthatminingcompaniesoperatinginSouthAfricaarelegallyobligedtorecruitandretainhistoricallydisadvantagedSouthAfricans("HDSAs"),as defined respectively by the MPRDAand the Broad-Based Black Economic Empowerment Act, 2003 (the "BEEAct"), and women with the relevant skills andexperienceatlevelsthatmeetthetransformationobjectivessetoutintheMPRDAandtheMiningCharter.SkilledandexperiencedpersonnelareespeciallyimportantatProject 1 since the deposit does not lend itself to mechanized methods. If the Company is unable to attract and retain sufficiently trained, skilled or experiencedpersonnel,itsbusinessmaysufferanditmayexperiencesignificantlyhigherstafforcontractorcosts,whichcouldhaveamaterialadverseeffectonitsbusiness,resultsofoperationsandfinancialcondition.

Conflicts of interest may arise among the Company's officers and directors as a result of their involvement with other mineral resource companies.

CertainoftheCompany'sofficers anddirectors are, andothersmaybecome,associatedwithothernatural resourcecompaniesthat acquireinterestsinmineralproperties.R.MichaelJones,PresidentandChiefExecutiveOfficerandadirectoroftheCompany,isalsothePresidentandChiefExecutiveOfficerandadirectorofWestKirklandMiningInc.("WKM"),apubliccompanywithmineralexplorationpropertiesinOntarioandNevada,andadirectorofNextractionEnergyCorp.("NE"), a public company with oil properties in Alberta, Kentucky and Wyoming. Frank Hallam, Chief Financial Officer and Corporate Secretary and a director of theCompany,isalsoadirector,ChiefFinancialOfficerandCorporateSecretaryofWKM,andadirectorofNE.EricCarlson,adirectoroftheCompany,isadirectorofNE.DianaWalters,adirectoroftheCompany,wasformerlyanexecutiveofficerofLibertyHoldings,asignificantshareholderoftheCompany,theLenderundertheLibertyFacility,andtheholderofaproductionpaymentrightundertheProductionPaymentAgreement.

Suchassociationsmaygiverisetoconflictsofinterestfromtimetotime.Asaresultofthesepotentialconflictsofinterests,theCompanymaymisstheopportunitytoparticipateincertaintransactions,whichmayhaveamaterialadverseeffectontheCompany'sfinancialposition.TheCompany'sdirectorsarerequiredbylawtoacthonestlyandingoodfaithwithaviewtothebestinterestsoftheCompanyandtodiscloseanyinterestthattheymayhaveinanyprojectoropportunityoftheCompany.Ifasubjectinvolvingaconflictofinterestarisesatameetingoftheboardofdirectors,anydirectorinaconflictmustdisclosehisinterestandabstainfromvotingonsuchmatter.

The Company may become subject to litigation and other legal proceedings that may adversely affect the Company's financial condition and results of operations.

All companies are subject to legal claims, with and without merit. The Company's operations are subject to the risk of legal claims by employees,unions,contractors, lenders, suppliers, joint venturepartners, shareholders, governmental agenciesorothersthroughprivateactions, classactions, administrativeproceedings,regulatoryactionsorotherlitigation.TheoutcomeoflitigationandotherlegalproceedingsthattheCompany

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maybeinvolvedinthefuture,particularlyregulatoryactions,isdifficulttoassessorquantify.Plaintiffsmayseekrecoveryofverylargeorindeterminateamounts,andthemagnitudeofthepotentiallossrelatingtosuchlawsuitsmayremainunknownforsubstantialperiodsoftime.Defenseandsettlementcostscanbesubstantial,evenwithrespecttoclaimsthathavenomerit.Duetotheinherentuncertaintyofthelitigationprocess,thelitigationprocesscouldtakeawayfromthetimeandeffortoftheCompany'smanagementandcouldforcetheCompanytopaysubstantiallegalfees.TherecanbenoassurancethattheresolutionofanyparticularlegalproceedingwillnothaveanadverseeffectontheCompany'sfinancialpositionandresultsofoperations.

An actual or alleged breach or breaches in governance processes or fraud, bribery and corruption may lead to public and private censure, regulatory penalties, lossof licenses or permits and may damage the Company's reputation.

The Company is subject to anti-corruption laws and regulations, including the Canadian Corruption of Foreign Public Officials Act and certainrestrictionsapplicable to U.S. reportingcompanies imposedbythe U.S. ForeignCorrupt Practices Act of 1977, as amended, andsimilar anti-corruption andanti-bribery lawsinSouthAfrica,whichgenerallyprohibitcompaniesfrombribingormakingotherprohibitedpaymentstoforeignpublicofficialsinordertoobtainorretainanadvantageinthe course of business. The Company's Code of Business Conduct and Ethics, among other governance and compliance processes, may not prevent instances offraudulentbehavioranddishonestynorguaranteecompliancewithlegalandregulatoryrequirements.TheCompanyisparticularlyexposedtothepotentialforcorruptionandbriberyowingtothefinancialscaleoftheminingbusinessinSouthAfrica.InMarch2014,theOrganisationforEconomicCooperationandDevelopment("OECD") released its Phase 3 Report on Implementing the OECDAnti-bribery Convention in South Africa, criticizing South Africa for failing to enforce the anti-briberyconventiontowhichithasbeenasignatorysince2007.Theabsenceofenforcementofcorporateliabilityforforeignbriberycoincideswithrecentgrowthincorporateactivity in South Africa's economic environment. Allegations of bribery, improper personal influence or officials holding simultaneous business interests have beenlinkedinrecentyearstothehighestlevelsoftheSouthAfricangovernment.TotheextentthattheCompanysuffersfromanyactualorallegedbreachorbreachesofrelevantlaws,includingSouthAfricananti-briberyandcorruptionlegislation,itmayleadtoregulatoryandcivilfines,litigation,publicandprivatecensureandlossofoperatinglicensesorpermitsandmaydamagetheCompany'sreputation.TheoccurrenceofanyoftheseeventscouldhaveanadverseeffectontheCompany'sbusiness,financialconditionandresultsofoperations.

RisksRelatedtotheMiningIndustry

Mining is inherently dangerous and is subject to conditions or events beyond the Company's control, which could have a material adverse effect on the Company'sbusiness.

Hazardssuchas fire, explosion, floods, structural collapses, industrial accidents, unusual or unexpectedgeological conditions, groundcontrolproblems,poweroutages, inclement weather, cave-ins and mechanical equipment failure are inherent risks in the Company's mining operations. These and other hazards may causeinjuriesordeathtoemployees,contractorsorotherpersonsattheCompany'smineralproperties,severedamagetoanddestructionoftheCompany'sproperty,plantandequipmentandmineralproperties,andcontaminationof,ordamageto,theenvironment,andmayresultinthesuspensionoftheCompany'sexplorationanddevelopmentactivitiesandanyfutureproductionactivities.SafetymeasuresimplementedbytheCompanymaynotbesuccessfulinpreventingormitigatingfutureaccidentsandtheCompany may not be able to obtain insurance to cover these risks at economically feasible premiums or at all. Insurance against certain environmental risks is notgenerallyavailabletotheCompanyortoothercompanieswithintheminingindustry.

Inaddition,fromtimetotimetheCompanymaybesubjecttogovernmentalinvestigationsandclaimsandlitigationfiledonbehalfofpersonswhoareharmedwhileatitspropertiesorotherwiseinconnectionwiththeCompany'soperations.TotheextentthattheCompanyissubjecttopersonalinjuryorotherclaimsorlawsuitsinthefuture,itmaynotbepossibletopredicttheultimateoutcomeoftheseclaimsandlawsuitsduetothenatureofpersonalinjurylitigation.Similarly,iftheCompanyissubject to governmental investigations or proceedings, the Company may incur significant penalties and fines, and enforcement actions against it could result in thecessationofcertainoftheCompany'sminingoperations.DuringtheperiodofFebruaryandMarch2013,operationsatProject1haltedforapproximatelyonemonthduetoanoticeunderSection54oftheMineHealthandSafetyAct,No.29of2006issuedinrelationtoasurfaceworkerfatalitythatoccurredonsite.Since

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March2013,MasevehasreceivedseveralnoticesunderSection54thathaveresultedinshort-termhaltstooperations.Ifclaims,lawsuits,governmentalinvestigationsorproceedings,includingSection54notices,areresolvedagainsttheCompany,theCompany'sfinancialperformance,financialpositionandresultsofoperationscouldbemateriallyadverselyaffected.

The Company's prospecting and mining rights are subject to title risks.

TheCompany'sprospectingandminingrightsmaybesubjecttopriorunregisteredagreements,transfers,claimsandtitlemaybeaffectedbyundetecteddefects.AsuccessfulchallengetothepreciseareaandlocationoftheseclaimscouldresultintheCompanybeingunabletooperateonitspropertiesaspermittedorbeingunabletoenforceitsrightswithrespecttoitsproperties.ThiscouldresultintheCompanynotbeingcompensatedforitspriorexpendituresrelatingtotheproperty.Titleinsuranceis generally not available for mineral properties and the Company's ability to ensure that it has obtained secure claims to individual mineral properties or miningconcessions may be severely constrained. These or other defects could adversely affect the Company's title to its properties or delay or increase the cost of thedevelopmentofsuchprospectingandminingrights.

The Company is subject to significant governmental regulation.

TheCompany'soperationsandexplorationanddevelopmentactivitiesinSouthAfricaandCanadaaresubjecttoextensivefederal,state,provincial,territorialandlocallawsandregulationgoverningvariousmatters,including:

• environmentalprotection;

• managementanduseofhazardousandtoxicsubstancesandexplosives;

• managementoftailingsandotherwastegeneratedbytheCompany'soperations;

• managementofnaturalresources;

• exploration,developmentofmines,productionandpost-closurereclamation;

• exportsand,inSouthAfrica,potentiallocalbeneficiationquotas;

• pricecontrols;

• taxation;

• regulationsconcerningbusinessdealingswithlocalcommunities;

• labourstandards,BEElawsandregulationsandoccupationalhealthandsafety,includingminesafety;and

• historicandculturalpreservation.

Failuretocomplywithapplicablelawsandregulationsmayresultincivil orcriminalfinesoradministrativepenaltiesorenforcementactions,includingordersissued by regulatory or judicial authorities enjoining or curtailing operations, requiring corrective measures, installation of additional equipment, remedial actions orrecoveryofcostsiftheauthoritiesattendtoremediationofanyenvironmentalpollutionordegradation,anyofwhichcouldresultintheCompanyincurringsignificantexpenditures.Environmentalnon-profitorganizationshavebecomeparticularlyvigilantinSouthAfricaandfocusontheminingsector.Severalsuchorganizationshaverecentlyinstitutedactionsagainstminingcompanies.TheCompanymayalsoberequiredtocompensateprivatepartiessufferinglossordamagebyreasonofabreachofsuchlaws,regulationsorpermittingrequirements.Itisalsopossiblethatfuturelawsandregulations,oramorestringentenforcementofcurrentlawsandregulationsbygovernmentalauthorities,couldcauseadditionalexpense,capitalexpenditures,restrictionsonorsuspensionsoftheCompany'soperationsanddelaysinthedevelopmentoftheCompany'sproperties.

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The Company may face equipment shortages, access restrictions and lack of infrastructure.

Naturalresourceexploration,developmentandminingactivitiesaredependentontheavailabilityofmining,drillingandrelatedequipmentintheparticularareaswheresuchactivitiesareconducted.AlimitedsupplyofsuchequipmentoraccessrestrictionsmayaffecttheavailabilityofsuchequipmenttotheCompanyandmaydelayexploration,developmentorextractionactivities.Certainequipmentmaynotbeimmediatelyavailable,ormayrequirelongleadtimeorders.Adelayinobtainingnecessaryequipmentformineralexploration,includingdrillrigs,couldhaveamaterialadverseeffectontheCompany'soperationsandfinancialresults.

Mining,processing,developmentandexplorationactivitiesalsodepend,toonedegreeoranother, ontheavailabilityofadequateinfrastructure. Reliableroads,bridges,powersources,fuelandwatersupplyandtheavailabilityofskilledlabourandotherinfrastructureareimportantdeterminantsthataffectcapitalandoperatingcosts. At the Waterberg Project, additional infrastructure will be required prior to commencement of mining. At Project 1, the Company's most advanced project,constructionissubstantiallycompleteandproductionramp-upisunderway.Theestablishmentandmaintenanceofinfrastructure,andservicesaresubjecttoanumberofrisks,includingrisksrelatedtotheavailabilityofequipmentandmaterials,inflation,costoverrunsanddelays,politicaloppositionandrelianceuponthirdparties,manyofwhichareoutsidetheCompany'scontrol.ThelackofavailabilityonacceptabletermsorthedelayintheavailabilityofanyoneormoreoftheseitemscouldpreventordelaydevelopmentorongoingoperationoftheCompany'sprojects.

Explorationofmineralpropertiesislessintrusive,andgenerallyrequiresfewersurfaceandaccessrights,thanpropertiesdevelopedformining.TheCompanyhasnotsecuredanysurfacerightsattheWaterbergProjectotherthanthoseaccessrightslegislatedbytheMPRDA.IfadecisionismadetodeveloptheWaterbergProject,orotherprojects inwhichtheCompanyhasyet tosecureadequate surfacerights, theCompanywill needtosecuresuchrights. Noassurances canbeprovidedthat theCompany will be able to secure required surface rights on favorable terms, or at all. Any failure by the Company to secure surface rights could prevent or delaydevelopmentoftheCompany'sprojects.

The Company's operations are subject to environmental laws and regulations that may increase the Company's costs of doing business and restrict its operations.

Environmental legislation ona global basis is evolving in a manner that will ensure stricter standards andenforcement, increased fines andpenalties for non-compliance, more stringent environmental assessment of proposed development and a higher level of responsibility and potential liability for companies and theirofficers,directors,employeesand,potentially,shareholders.CompliancewithenvironmentallawsandregulationsmayrequiresignificantcapitaloutlaysonbehalfoftheCompanyandmaycausematerialchangesordelaysintheCompany'sintendedactivities.TherecanbenoassurancethatfuturechangestoenvironmentallegislationinCanadaorSouthAfricawillnotadverselyaffecttheCompany'soperations.EnvironmentalhazardsmayexistontheCompany'spropertieswhichareunknownatpresentandwhichhavebeencausedbypreviousorexistingownersoroperatorsforwhichtheCompanycouldbeheldliable.Furthermore,futurecompliancewithenvironmentalreclamation, closure and other requirements may involve significant costs and other liabilities. In particular, the Company's operations and exploration activities aresubjecttoCanadianandSouthAfricannationalandprovinciallawsandregulationsgoverningprotectionoftheenvironment.Suchlawsarecontinuallychangingand,ingeneral,arebecomingmoreonerous.See"SouthAfricanRegulatoryFramework—Environment"intheAIF.

Amendments tocurrentlaws,regulationsandpermitsgoverningoperationsandactivitiesofminingcompanies,ormorestringentimplementationthereof,couldhave a material adverse impact on the Company and cause increases in capital expenditures or production costs or a reduction in levels of production at producingpropertiesorrequireabandonmentordelaysindevelopmentofnewminingproperties.

EnvironmentalhazardsmayexistontheCompany'spropertiesthatareunknownatthepresenttime,andthatmayhavebeencausedbypreviousownersoroperatorsorthatmayhaveoccurrednaturally.Thesehazards,aswellasanypollutioncausedbytheCompany'sminingactivities,maygiverisetosignificantfinancialobligationsinthefutureandsuchobligationscouldhaveamaterialadverseeffectontheCompany'sfinancialperformance.

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The mineral exploration industry is extremely competitive.

Theresourceindustryisintenselycompetitiveinallofitsphases.MuchoftheCompany'scompetitionisfromlarger,establishedminingcompanieswithgreaterliquidity, greater access to credit and other financial resources, and that may have newer or more efficient equipment, lower cost structures, more effective riskmanagementpoliciesandproceduresand/orgreaterabilitythantheCompanytowithstandlosses.TheCompany'scompetitorsmaybeabletorespondmorequicklytonew laws or regulations or emerging technologies, or devote greater resources to the expansion of their operations, than the Company can. In addition, current andpotentialcompetitorsmaymakestrategicacquisitionsorestablishcooperativerelationshipsamongthemselvesorwiththirdparties.CompetitioncouldadverselyaffecttheCompany'sabilitytoacquiresuitablenewproducingpropertiesorprospectsforexplorationinthefuture.CompetitioncouldalsoaffecttheCompany'sabilitytoraisefinancingtofundtheexplorationanddevelopmentofitspropertiesortohirequalifiedpersonnel.TheCompanymaynotbeabletocompetesuccessfullyagainstcurrentandfuturecompetitors,andanyfailuretodosocouldhaveamaterialadverseeffectontheCompany'sbusiness,financialconditionorresultsofoperations.

The Company requires various permits in order to conduct its current and anticipated future operations, and delays or a failure to obtain such permits, or a failure tocomply with the terms of any such permits that the Company has obtained, could have a material adverse impact on the Company.

TheCompany'scurrentandanticipatedfutureoperations,includingfurtherexploration,developmentactivitiesandcommencementofcommercialproductionontheCompany'sproperties,requirepermitsfromvariousnational,provincial,territorialandlocalgovernmentalauthoritiesinthecountriesinwhichtheCompany'spropertiesarelocated.Compliancewiththeapplicableenvironmentallegislation,permitsandlanduseconsentsisrequiredonanongoingbasis,andtherequirementsundersuchlegislation,permitsandconsentsareevolvingrapidlyandimposingadditionalrequirementsforProject1.TheWaterbergProjectprospectingrightsissuedbytheDMRarealsosubjecttolanduseconsentsandcompliancewithapplicablelegislationonanongoingbasis.

Inaddition,thedurationandsuccessofeffortstoobtain,amendandrenewpermitsarecontingentuponmanyvariablesnotwithintheCompany'scontrol.Shortageofqualifiedandexperiencedpersonnel inthevariouslevels of governmentcouldresult indelaysorinefficiencies. Backlogwithinthepermittingagencies couldalsoaffectthepermittingtimelineoftheCompany'svariousprojects.Otherfactorsthatcouldaffectthepermittingtimelineincludethenumberofotherlargescaleprojectscurrentlyinamoreadvancedstageofdevelopment,whichcouldslowdownthereviewprocess,andsignificantpublicresponseregardingaspecificproject.Aswell,itcanbedifficulttoassesswhatspecificpermittingrequirementswillultimatelyapplytoalloftheCompany'sprojects.

RisksofDoingBusinessinSouthAfrica

Labour disruptions and increased labour costs could have an adverse effect on the Company's results of operations and financial condition.

Although the Company's employees are not unionized at this time, contractors operating on the Project 1 mine site in South Africa have employees that areunionized. Asaresult, tradeunionscouldhaveasignificant impact ontheCompany'slabourrelations, aswell asonsocial andpolitical reforms. Thereis arisk thatstrikes or other types of conflict with unions or employees may occur at any of the Company's operations, particularly where the labour force is unionized. Labourdisruptionsmaybeusedtoadvocatelabour,politicalorsocialgoalsinthefuture.Forexample,labourdisruptionsmayoccurinsympathywithstrikesorlabourunrestinothersectorsoftheeconomy.SouthAfricanemploymentlawsetsoutminimumtermsandconditionsofemploymentforemployees,whichformthebenchmarkforallemploymentcontracts.DisruptionsintheCompany'sbusinessduetostrikesorfurtherdevelopmentsinSouthAfricanlabourlawsmayincreasetheCompany'scostsoralter its relationship with its employees and trade unions, which may have an adverse effect on the Company's financial condition and operations. South Africa hasrecentlyexperiencedwidespreadillegalstrikesandviolence.

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Interruptions, shortages or cuts in the supply of electricity or water could lead to disruptions in production and a reduction in the Company's operating capacity.

TheCompanyprocuresall of theelectricity necessaryfor its operationsfromESKOMHoldingsLimited ("ESKOM"), SouthAfrica's state ownedelectricityutility, and no significant alternative sources of supply are available to it. ESKOMhas suffered fromprolonged underinvestment in newgenerating capacity which,combinedwithincreaseddemand,hasledtoelectricityshortagesinrecentyears.Since2008,ESKOMhasinvestedheavilyinnewbaseloadpowergenerationcapacity,butitsprincipalproject,apowerstationknownasMedupi,hasbeensubjecttodelays,withthelastunitscheduledforcommissioningin2019.Inaddition,ESKOMisheavilydependentoncoaltofuelitselectricityplants.Accordingly,ifcoalminingcompaniesexperiencelabourunrestordisruptionstoproduction(whichhaveoccurredhistorically in South Africa, including a coal strike by approximately 30,000 National Union of Mineworkers members which lasted for approximately one week inOctober2015),orifheavyrains,particularlyduringthesummermonthsinSouthAfrica,adverselyimpactcoalproductionorcoalsupplies,ESKOMmayhavedifficultysupplyingsufficientelectricitysupplytotheCompany.

TheCompanyprocureswaterfromMagaliesWater,thestatutory,state-ownedwaterauthorityintheCompany'sareaofoperations.TheCompanyisdependentontheavailabilityofwaterinitsareasofoperationsandinparticularontheabilityofMagaliesWatertoprovideitwithsufficientallocationofwatertoenableittoconductitsbusiness.ShiftingrainfallpatternsandincreasingdemandsontheexistingwatersupplyhavecausedwatershortagesintheCompany'sareasofoperations.

If electricity or water supplies are insufficient or unreliable, the Companymay be unable to operate as anticipated, which maydisrupt production and reducerevenues.

Any adverse decision in respect of the Company's mineral rights and projects in South Africa under the MPRDA could materially affect the Company's projects inSouth Africa.

WiththeenactmentoftheMPRDA,theSouthAfricanstatebecamethesoleregulatorofallprospectingandminingoperationsinSouthAfrica.Allprospectingandmininglicensesandclaimsgrantedintermsofanypriorlegislationbecameknownasthe"oldorderrights".AllprospectingandminingrightsgrantedintermsoftheMPRDAare"neworderrights".Thetreatmentofnewapplicationsandpendingapplicationsisuncertainandanyadversedecisionbytherelevantregulatoryauthoritiesunder the MPRDA may adversely affect title to the Company's mineral rights in South Africa, which could stop, materially delay or restrict the Company fromproceedingwithitsexplorationanddevelopmentactivitiesoranyfutureminingoperations.

A wide range of factors and principles must be taken into account by the South African Minister of Mineral Resources (the "Minister") when consideringapplicationsforneworderrights.Thesefactorsincludetheapplicant'saccesstofinancialresourcesandappropriatetechnicalabilitytoconducttheproposedprospectingor mining operations, the environmental impact of the operation, whether the applicant holds an environmental authorization and, in the case of prospecting rights,considerations relating to fair competition. Other factors include considerations relevant to promoting employment and the social and economic welfare of all SouthAfricansandshowingcompliancewiththeprovisionsregardingtheempowermentofHDSAsintheminingindustry.AlloftheCompany'soldorderprospectingrightsinrespectofProject1andProject3werefirstconvertedintoneworderprospectingrightsandsubsequently,inApril2012,weresupersededbytheMiningRight.AlloftheCompany'scurrentprospectingrightsareneworderrights.

TheassessmentofsomeoftheprovisionsoftheMPRDAortheMiningChartermaybesubjectiveandisdependentupontheviewsoftheDMRastowhethertheCompany is in compliance.Maseve's social and labour plan, for instance, contains both quantitative and qualitative goals, targets and commitments relating to theCompany'sobligationstoitsemployeesandcommunityresidents, theachievementofsomeofwhicharenotexclusivelywithintheCompany'scontrol.CertainofthesocioeconomicprojectsidentifiedinthesocialandlabourplanhaveprovedinappropriateorunviablegivenprevailingconditionsandlevelsoftrainingwithinthelocalcommunitiesinthevicinityofProject1.SuchprojectshavebeenidentifiedandtheCompanyhasconsultedwiththeDMRregardingacourseofaction.AnapplicationisbeingmadetotheDMRtoamendthesocialandlabourplantotargetmoreappropriateandviableprojects.IfMaseveisfoundtobeinnon-compliancewithits

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socialandlabourplan,theMinistermayinstitutetheSection47processdiscussedbelow.Atthistime,theCompanyhasnotreceivedanoticeofnon-compliancefromtheDMR.

TheMinisterhasthediscretiontocancelorsuspendminingrightsunderSection47(1)oftheMPRDAasaconsequenceoftheCompany'snon-compliancewiththeMPRDA,environmentallegislation,theMiningCharter,thetermsofitsMiningRightandprospectingrightsorifminingisnotprogressingoptimally.TheSection47processinvolvesmultiple,successivestageswhichincludegrantingtheCompanyareasonableopportunitytoshowwhyitsrightsshouldnotbecancelledorsuspended.Pursuant to the terms of the provisions of Section 6(2)(e)(iii) of thePromotionof AdministrativeJusticeAct , No. 3 of 2000("PAJA") read with Section 6of theMPRDA, the Minister can direct the Company to take remedial measures. If such remedial measures are not taken, the Minister must again give the Company areasonable opportunity to make representations as to why such remedial measures were not taken. The Minister must then properly consider the Company's furtherrepresentations(whichconsiderationsmustalsocomplywithPAJA)andonlythenistheMinisterentitledtocancelorsuspendaminingright.AnysuchcancellationorsuspensionwillbesubjecttojudicialreviewifitisnotincompliancewiththeMPRDAorPAJA,oritisnotlawful,reasonableandprocedurallyfairunderSection33(1)oftheSouthAfricanConstitution.

Failure by the Company to meet its obligations in relation to its Mining Right or prospecting rights or the Mining Charter could lead to the suspension orcancellationofsuchrightsandthesuspensionoftheCompany'sotherrights,whichwouldhaveamaterialadverseeffectontheCompany'sbusiness,financialconditionandresultsofoperations.

The failure to maintain or increase equity participation by HDSAs in the Company's prospecting and mining operations could adversely affect the Company's abilityto maintain its prospecting and mining rights.

TheCompanyissubjecttoanumberofSouthAfricanstatutesaimedatpromotingtheacceleratedintegrationofHDSAs,includingtheMPRDA,theBEEActandthe Mining Charter. To ensure that socio-economic strategies are implemented, the MPRDA provides for the Mining Codes which specify empowerment targetsconsistentwiththeobjectivesoftheMiningCharter. TheMiningCharterScorecardrequirestheminingindustry'scommitmentofapplicantsinrespectofownership,management,employmentequity,humanresourcedevelopment,procurementandbeneficiation.ForownershipbyBEEgroupsinminingenterprises,theMiningCharterScorecardsetsa26%targetbyDecember31,2014.

TheSouthAfricangovernmentawardsprocurementcontracts,quotas,licenses,permitsandprospectingandminingrightsbasedonnumerousfactors,includingthedegreeofHDSAownership.TheMPRDAandMiningChartercontainprovisionsrelatingtotheeconomicempowermentofHDSAs.OneoftherequirementswhichmustbemetbeforetheDMRwillissueaprospectingrightorminingrightisthatanapplicantmustfacilitateequityparticipationbyHDSAsintheprospectingandminingoperationswhichresultfromthegrantingoftherelevantrights.Asamatterofstatedpolicy,theDMRrequiresaminimumof26%HDSAownershipforthegrantofapplicationsforminingrights.TheMiningCharterrequiredaminimumof26%HDSAownershipbyDecember31,2014.

TheCompanyhassoughttosatisfytheforegoingrequirementsbypartnering,attheoperatingcompanylevel,withcompaniesdemonstrating26%HDSAownership.TheCompanyhaspartneredwithAfricaWidewithrespecttoMaseve,whichownstheMiningRight,andhaspartneredwithMnombowithrespecttotheWaterbergJVProjectandfortheprospectingrightsandapplicationsovertheWaterbergExtensionProject.

TheCompanybelievesthatAfricaWidewasmajorityownedbyHDSAsin2002,whenitfirstpartneredwiththeCompany.However,theCompany'scontractualarrangementswithAfricaWidedonotcurrentlyrequireAfricaWidetomaintainanyminimumlevelofHDSAownershiportocertifythelevelofsuchownershiptotheCompany.In2007,Wesizwe(whichwasthenmajorityownedbyHDSAs)acquired100%ofthesharesofAfricaWide.Onanapplicationofthemodifiedflow-throughprinciples,AfricaWideremainedanHDSAcompany.OnDecember8,2008,theCompanyenteredintocertainagreementstoconsolidateandrationalizetheownershipof the Western Bushveld Joint Venture (the "Consolidation Transaction"). Under the terms of the Consolidation Transaction, the Company transferred its 18.5%interestinProject2ofwhatwasformerlytheWesternBushveldJointVenturetoWesizwe,thereforeprovidingattributableunitsofproductionandfurtherenhancingtheownershipofminingassetsbyHDSAcompanies.Underthesametransaction,Rustenburg

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PlatinumMinesLimited,awhollyownedsubsidiaryofAngloAmericanPlatinumLimited("Amplats")acquiredathenapproximately26.9%interestinWesizwe.In2011, Jinchuan Group Limited of China and China Africa Development Fund, with the approval of the DMR and notwithstanding that the transaction resulted inWesizwenotbeingmajorityownedbyHDSAs,acquiredathenapproximately45%interestinWesizwe.AlthoughAmplats'interestisheldforpreferentialdispositiontoaqualifiedBEEpurchaser,HDSAsdonotcurrentlyownamajorityoftheWesizweequity.InApril2012,MasevewasgrantedtheMiningRightbytheDMRwhich,bystatedpolicy,isanacknowledgementofMaseve'sBEEcompliancestatusasbeingacceptabletotheDMR.Therecanbenoassurancewhen,orif,thetransferofAmplats'interestinWesizwetoaqualifiedBEEpurchaserwilloccur.Also,therecanbenoassurancethattheHDSAownershipmaynotbere-assessedorthatthecriteriaforHDSAownershipmaynotbeinterpreteddifferentlyinthefuture.IfonlythedirectshareholdingsofAfricaWideanditsparentareconsidered,andotherfactorswhichwere considered by the DMR at the time of grant are set aside, Maseve, solely on flow-through principles, would have been, and remains, below the 26% HDSAownershiplevel.

Further, on August 20, 2014, an award in the binding arbitration with respect to the calculation of dilution to the ownership of Africa Wide in Maseve wascompleted and delivered to the Company. The arbitrator ruled in favor of the Company on all matters in contention. The favourable award reduced Africa Wide'sshareholdinginMaseveto21.2766%.AsaresultofAfricaWide'sdecisiononMarch3,2014nottofunditsUS$21.52millionshareofasecondcashcalldeliveredinFebruary2014,AfricaWide'sownershipinMasevewasfurtherreducedtoapproximately17.1%basedonthedilutionformulaintheMaseveShareholdersAgreement,asconfirmedbythearbitration.UntiltheCompanysellsthedilutedpercentageinterestinMasevepreviouslyheldbyAfricaWidetoanalternative,qualifiedBEEcompany,Masevewillhavelessthan26%HDSAownership.

TheCompanyissatisfiedthatMnomboismajority-ownedbyHDSAs.ThecontractualarrangementsbetweenMnombo,theCompanyandtheHDSAsrequiretheHDSAstomaintainaminimumlevelofHDSAownershipinMnomboofmorethan50%.However,if at anytimeMnombobecomesacompanythatisnotmajorityownedbyHDSAs,theownershipstructureoftheWaterbergJVProjectandtheprospectingrightsandapplicationsovertheWaterbergExtensionProjectmaybedeemednottosatisfyHDSArequirements.

AstheCompanyhashistoricallypartneredwithBEEgroupsorcompaniesthatwereHDSA-controlledatthetimeonallofitsmaterialprojectsinSouthAfricaatalevel of 26% at an operating or project level it relies upon the continuing consequences of such transactions (the so-called "once empowered, always empowered"principle)forownershipcompliancewiththeMiningCharterinregardtoMaseve.

Thereiscurrentlynolegalorregulatorycertaintyoverwhethertheprincipleof"onceempowered,alwaysempowered"(i.e.,whetheracompanythathasreacheditsempowermenttargetsundertheMiningCharterwillremainempoweredifitsHDSAparticipationsubsequentlyfallsbelowrequiredthresholds)wouldapply.TheDMRandtheChamberofMinesofSouthAfrica(actingonbehalfoftheminingindustry)arecurrentlyengagedinlitigationwhichmayresultinsomeclarityonthe"onceempowered,alwaysempowered"principle,butthisislikelytobealengthyprocessandnoassurancecanbegivenregardingtheultimateoutcomeofsuchlitigationoritsimpactontheCompany.Inaddition,anapplicationhasbeenfiledintheHighCourtofSouthAfricatohavetheMiningCharteritselfsetaside.

OnApril 15, 2016, theReviewedBroadBasedBlack-EconomicEmpowerment Charter for theSouthAfricanMiningandMinerals Industry (the"NewDraftCharter")waspublishedforcomment.Interestedpartiesweregivenaperiodof30daysfromdateofpublicationtomakesubmissionstotheDMR.TheDMRcontinuestoengagewiththeChamberofMinesandwiththeindustryinregardtotheNewDraftCharter.TheNewDraftCharterrequiresminingcompaniestomaintain26%BEEownershipthroughoutthelifeofthemine.Ifadoptedinitscurrentform,theNewDraftCharterwillrequireMasevetoconcludefurtherBEEtransactionstoincreaseitsBEEownershiplevelto26%oncemore.However,theNewDraftCharterenvisagesthatminingcompanieswillbegivenaperiodofthreeyearswithinwhichtoachievecompliance.

Subject to conditions contained in the Company's prospecting and mining rights, the Company may be required to obtain approval from the DMR prior toundergoinganychangeinitsempowermentstatusundertheMiningCharter.Inaddition,iftheCompanyoritsBEEpartnersarefoundtobeinnon-compliancewiththerequirementsoftheMiningCharterandotherBEEregulations,includingfailuretoretaintherequisitelevelof

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HDSAownership,theCompanymayfacepossiblesuspensionorcancellationofitsminingrightsunderaprocessgovernedbySection47oftheMPRDA.

Inaddition,therehavebeenanumberofproposalsmadeatgovernmentallevelinSouthAfricaregardingamendmentsandclarificationstothemethodologyfordetermining HDSAownershipand control of mining businesses, including the Mineral and PetroleumResources Development Amendment Bill, 2013, which creategreater uncertainty in measuring the Company's progress towards, and compliance with, its commitments under the Mining Charter and other BEE regulations. Ifimplemented,anyoftheseproposalscouldresultin,amongotherthings,strictercriteriaforqualificationasanHDSAinvestor.

TheCompanyisobligedtoreportonitscompliancewiththeMiningCharter,includingitspercentageofHDSAshareholding,totheDMRonanannualbasis.TheCompany's2015reportwassubmittedonMay3,2016.Althoughnofeedbackhasbeenreceivedinregardtoeitherthe2014orthe2015filing,theCompanyreceivedarequestfromtheDMRsubsequenttotheendofitsthirdfiscalquarterin2016toprovideanupdateastoitsplantoachievea26%HDSAequityownershippercentageforMaseve.TheCompanymetwiththeDMRinearlyJune2016andtheDMRrequestedafurtherupdatebyAugust7,2016,whileremindingtheCompanyoftheriskofpotentialactionunderSections47and93oftheMPRDAiftheCompanywerenottoincreasetheHDSAownershippercentage.TheCompanyhasmadeseveralattemptstoscheduleameetingwiththeDMRtofurtherdiscussthisissue.Todate,whiletheCompanyhasbeenadvisedbytheDMRthatthematterwillbediscussedatalaterdate,nosuchmeetinghastakenplaceandtheDMRhasnotissuedanoticeofnon-compliancewiththeMPRDA.

IftheCompanyisrequiredtoincreasethepercentageofHDSAownershipinanyofitsoperatingcompaniesorprojects,theCompany'sinterestsmaybediluted.Inaddition,itispossiblethatanysuchtransactionsorplans,ortheinvestmentbyanewBEEpartnerinMasevetoattaina26%interestbyqualifiedBEEcompanies,mayneedtobeexecutedatadiscounttothepropereconomicvalueoftheCompany'soperatingassetsorit mayalsoprovenecessaryfortheCompanytoprovidevendorfinancing or other support in respect of some or all of the consideration, which may be on non-commercial terms. Under the terms of the Maseve ShareholdersAgreement,ifMaseveisinstructedbytheDMRtoincreaseitsHDSAownership,anyagreedcostsordilutionofinterestsshallbeborneequallybytheCompanyandAfricaWide,notwithstandingthatAfricaWideholds17.1%oftheequityafterthesecondmissedcashcall.

Currently, theSouthAfricanDepartmentofTradeandIndustryisresponsibleforleadinggovernmentactionontheimplementationofBEEinitiativesundertheauspices of theBEEActandthegenericBEECodesofGoodPractice(the"GenericBEECodes"), whilecertainindustrieshavetheir owntransformationchartersadministeredbytherelevantgovernmentdepartment(inthiscase,theDMR).TheBroadBasedBlackEconomicEmpowermentAmendmentAct,No.16of2013(the"BEEAmendmentAct") cameintooperationonOctober 24, 2014. Amongother matters, theBEEAmendment Act amendsthe BEEAct to maketheBEEAct theoverridinglegislationinSouthAfricawithregardtoBEErequirements(the"TrumpingProvision")andwillrequireallgovernmentalbodiestoapplytheGenericBEECodesorotherrelevantcodeofgoodpracticewhenprocuringgoodsandservicesorissuinglicensesorotherauthorizationsunderanyotherlaws,andpenalizefrontingormisrepresentationofBEEinformation.TheTrumpingProvisioncameintoeffectonOctober24,2015.However,onOctober30,2015,theSouthAfricanMinisterofTradeandIndustryexemptedtheDMRfromapplyingtheTrumpingProvisionforaperiodoftwelvemonthsonthebasisthatthealignmentoftheMiningCharterwiththeBEEActandtheGenericBEECodeswasanongoingprocess.TheNewDraftCharterpurportstoaligntheMiningCharterwiththeGenericBEECodes.ItisunclearwhethertheNewDraftCharterwillbefinalizedbeforetheexemptionperiodfromapplicationoftheTrumpingProvisionexpiresonOctober31,2016.Thisexemptionperiodmaybefurtherextendedgiventhatsuchalignmentisstill ongoing.IftheNewDraftCharterisnotfinalizedbeforetheexemptionperiodexpiresandafurtherexemptionperiodisnotgranted,theGenericBEECodeswillapply.Generallyspeaking,theamendedGenericBEECodeswillmakeBEE-compliancemoreoneroustoachieve. TheGeneric BEECodesaresubstantially different fromtheMiningCharter and, if theyweretoapplytotheminingindustry, wouldplacetheindustry at adisadvantage.See"SouthAfricanRegulatoryFramework—BlackEconomicEmpowermentintheSouthAfricanMiningIndustry"intheAIF.

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TheGenericBEECodeswillrequireMnombotobe51%heldandcontrolledbyHDSAstoqualifyitasa"black-controlledcompany"andhenceaqualifiedBEEentity.Mnomboispresently50.1%ownedandcontrolledbyHDSAs.

IftheCompanyisunabletoachieveormaintainitsempoweredstatusundertheMiningCharterorcomplywithanyotherBEEregulationsorpolicies,itmaynotbeable tomaintain itsexisting prospecting and mining rights and/or acquire any newrights and therefore would be obliged to suspend or dispose of someor all of itsoperationsinSouthAfrica,whichwouldlikelyhaveamaterialadverseeffectontheCompany'sbusiness,financialconditionandresultsofoperations.

Socio-economic  instability  in  South  Africa  or  regionally,  including  the  risk  of  resource  nationalism,  may  have  an  adverse  effect  on  the  Company's  operationsand profits.

TheCompanyhasownershipinterestsinsignificantprojectsinSouthAfrica.Asaresult,itissubjecttopoliticalandeconomicrisksrelatingtoSouthAfrica,whichcouldaffect aninvestment intheCompany. SouthAfricawastransformedintoademocracyin1994. Thegovernment policies aimedat redressingthedisadvantagessufferedbythemajorityofcitizensunderpreviousgovernmentsmayimpacttheCompany'sSouthAfricanbusiness.Inadditiontopoliticalissues,SouthAfricafacesmanychallengesinovercomingsubstantialdifferencesinlevelsofeconomicdevelopmentamongitspeople.LargepartsoftheSouthAfricanpopulationdonothaveaccesstoadequateeducation,healthcare,housingandotherservices,includingwaterandelectricity.

Thisissuewasparticularlyacuteinlate2012whenwildcatstrikesandviolenceoccurrednearProject1andgenerallyatotherplatinummines.Therecanbenoassurance thatwild cat strikes and violence will not occur at the Company's properties in the future. Wild cat strikes and violence at Project 1 may have a materialnegativeimpactontheprojectanditsstart-upmineoperations.TheCompanyalsofacesanumberofrisksfromdeliberate,maliciousorcriminalactsrelatingtotheseinequalities,includingtheft,fraud,briberyandcorruption.

TheCompanyisalsosubjecttotheriskofresourcenationalism,whichencompassesarangeofmeasures,suchasexpropriationortaxation,wherebygovernmentsincrease their economic interest in natural resources, with or without compensation. Althoughwholesale nationalization was rejected bythe ruling party, the AfricanNationalCongress(the"ANC"),leadingintothe2014nationalelections,aresolutionadoptedbytheANConnationalizationcallsforstateinterventionintheeconomy,including"stateownership".AwiderangeofstakeholdershaveproposedwaysinwhichtheStatecouldextractgreatereconomicvaluefromtheSouthAfricanminingindustry.Acallforresourcenationalizationhasalsobeenmadebyanewpoliticalparty,theEconomicFreedomFighters,undertheleadershipofJuliusMalema.

TheCompanycannotpredictthefuturepolitical, socialandeconomicdirectionofSouthAfricaorthemannerinwhichgovernmentwillattempttoaddressthecountry's inequalities. Actions taken by the South African government, or by its people without the sanction of law, could have a material adverse effect on theCompany'sbusiness.Furthermore,therehasbeenregional,politicalandeconomicinstabilityincountriesnorthofSouthAfrica,whichmayaffectSouthAfrica.SuchfactorsmayhaveanegativeimpactontheCompany'sabilitytoown,operateandmanageitsSouthAfricanminingprojects.

Changes  in  South  African  State  royalties  where  many  of  the  Company's  mineral  reserves  are  located  could  have  an  adverse  effect  on  the  Company's  results  ofoperations and its financial condition.

The Mineral and PetroleumResources Royalty Act, No. 28 of 2008 (the " RoyaltyAct") effectively came into operation on May1, 2009. The Royalty Actestablishesavariableroyaltyrateregime,inwhichtheprevailingroyaltyratefortheyearofassessmentisassessedagainstthegrosssalesoftheextractorduringtheyear.Theroyaltyrateiscalculatedbasedontheprofitabilityofthemine(earningsbeforeinterestandtaxes)andvariesdependingonwhetherthemineralistransferredinrefinedorunrefinedform.Formineralresourcestransferredinunrefinedform,theminimumroyaltyrateis0.5%ofgrosssalesandthemaximumroyaltyrateis7%ofgrosssales.Formineralresourcestransferredinrefinedform,themaximumroyaltyrateis5%ofgrosssales.Theroyaltywillbeataxdeductibleexpense.Theroyaltybecomespayablewhenthemineralresourceis"transferred,"whichreferstothedisposalofamineralresource,theexportofamineralresourceortheconsumption,theft,destructionorlossofamineralresource.TheRoyaltyActallowstheholderofaminingrighttoenterintoanagreementwiththetaxauthoritiestofixthepercentageroyaltythatwillbepayablein

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respectofallminingoperationscarriedoutinrespectofthatresourceforaslongastheextractorholdstheright.Theholderofaminingrightmaywithdrawfromsuchagreementatanytime.

ThefeasibilitystudiescoveringtheCompany'sSouthAfricanprojectsmadecertainassumptionsrelatedtotheexpectedroyaltyratesundertheRoyaltyAct.IfandwhentheCompanybeginsearningrevenuefromitsSouthAfricanminingprojects,andiftheroyaltiesundertheRoyaltyActdifferfromthoseassumedinthefeasibilitystudies,thisnewroyaltycouldhaveamaterial andadverseimpactontheeconomicviabilityoftheCompany'sprojectsinSouthAfrica,aswellasontheCompany'sprospects,financialconditionandresultsofoperations.

Characteristics  of  and  changes  in  the  tax  systems  in  South  Africa  could  materially  adversely  affect  the  Company's  business,  financial  condition  and  resultsof operations.

TheCompany'ssubsidiariespaydifferenttypesofgovernmentaltaxesinSouthAfrica,includingcorporationtax,payrolltaxes,VAT,stateroyalties,variousformsofduties,dividendwithholdingtaxandinterestwithholdingtax.ThetaxregimeinSouthAfricaissubjecttochange.

Afterhavingpublishedanumberofpapersontheintroductionofacarbontax,theSouthAfricangovernmentreleasedthedraftCarbonTaxBillinNovember2015forcommentbyinterestedparties.Greenhousegasemissionsfromthecombustionoffossilfuels,fugitiveemissionsinrespectofcommodities,fuelortechnology,andgreenhousegasemissionsfromindustrialprocessesandproductusewillbesubjecttoacarbontax.Duringthefirstphaseofimplementation(ending2020),itisproposedthattheemissionofgreenhousegassesbetaxedatR120pertonneofthecarbondioxideequivalentofthegreenhousegasemitted,whichrateisexpectedtoincreaseby10%perannum.Emissionfactorswillbeusedinordertocalculatethecarbondioxideequivalentofthegreenhousegassesemitted.Variousallowanceswillbeavailablefortaxpayerstoreducetheirfinalcarbontaxliabilitybyuptoamaximumof95%.OnJune20,2016,theSouthAfricangovernmentalsoreleasedthedraftregulationsinrespect ofthecarbonoffset allowance. Taxpayerscanqualifyforacarbonoffset allowanceuptoamaximumof10%.Thecarbonoffsetallowancewillnotenableataxpayertoreduceitsfinalcarbontaxliabilitybeyondthemaximumof95%statedabove.Whenthetaxfreethresholdsaretakenintoaccount,theeffectivetaxratewillrangebetweenR6andR48pertonofcarbondioxideequivalent.Schedule2tothedraftCarbonTaxBillliststhesectorsandindustriesinwhichtaxpayerswillbeliableforcarbontax.Miningcompanies,dependingonthenatureoftheiractivities,willgenerallyfallwithinthesesectors.TheMinisterofEnvironmentalAffairswillpublishanoticeindicatingwhichactivitieswillrenderapersonliableforthecarbontax.Theagricultural,forestryandwastesectorswillinitiallybeexcluded.ThedraftCarbonTaxBillissilentonthesecondphasepost2020,butitisgenerallyexpectedtoresultinagradualramp-upofthecarbontax.Therateandallowanceswillbereviewedforthesecondphaseofimplementation.Itisexpectedthatthefinallegislationwillcomeintooperationsometimein2017.

TheANCheldapolicyconferenceinJune2012atwhichthe"StateInterventionintheMineralsSector"report(the"SIMSReport")commissionedbytheANCwasdebated.TheSIMSReportincludesaproposalforasupertaxof50%ofallprofitsabovea15%returnoninvestment,whichwouldapplyinrespectofallmetalsandminerals.Ifasupertaxisimplemented,theCompanymayrealizelowerafter-taxprofitsandcashflowsfromitscurrentminingoperationsandmaydecidenottopursuecertainnewprojects,assuchataxcouldrendertheseopportunitiesuneconomic.

ItisalsopossiblethattheCompanycouldbecomesubjecttotaxationinSouthAfricathatisnotcurrentlyanticipated,whichcouldhaveamaterialadverseeffectonitsbusiness,financialconditionandresultsofoperations.

The Company's land in South Africa could be subject to land restitution claims which could impose significant costs and burdens.

TheCompany'sprivatelyheldlandcouldbesubjecttolandrestitutionclaimsundertheRestitutionofLandRightsAct,No.22of1994,asamended(the"LandClaimsAct")andtheRestitutionofLandRightsAmendmentAct,No.15of2014("RestitutionAmendmentAct"),whichtookeffectonJuly1,2014.UndertheLandClaims Act and the Restitution Amendment Act, any person who was dispossessed of rights in land in South Africa after June 19, 1913 as a result of past raciallydiscriminatorylawsorpracticeswithoutpaymentofjustandequitable

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compensation,andwholodgesaclaimonorbeforeJune30,2019,isgrantedcertainremedies.Asuccessfulclaimantmaybegrantedeitherreturnofthedispossessedland(referredtoas"restoration")orequitableredress(whichincludesthegrantingofanappropriaterightinalternativestate-ownedland,paymentofcompensationor"alternativerelief").Ifrestorationisclaimed,theLandClaimsActrequiresthefeasibilityofsuchrestorationtobeconsidered.Restorationoflandmayonlybegivenincircumstanceswhereaclaimantcanusethelandproductivelywiththefeasibilityofrestorationdependentonthevalueoftheproperty.

TheSouthAfricanMinisterofRuralDevelopmentandLandReformmaynotacquireownershipoflandforrestitutionpurposeswithoutacourtorderunlessanagreement has been reachedbetween the affected parties. The Land Claims Act also entitles the South African Minister of Rural Development and Land Reformtoacquireownershipoflandbywayofexpropriationeitherforclaimantswhoareentitledtorestitutionofland,or,inrespectoflandoverwhichnoclaimhasbeenlodgedbuttheacquisitionofwhichisdirectlyrelatedtooraffectedbysuchclaim,willpromoterestitutionoflandtoclaimants oralternativerelief. ExpropriationwouldbesubjecttoprovisionsoflegislationandtheSouthAfricanConstitutionwhichprovide,ingeneral,forjustandequitablecompensation.

TheCompanyhasnotbeennotifiedofanylandclaimstodateovertheCompany'sproperties.Thereisnoguarantee,however,thatanyoftheCompany'sprivatelyheldlandrightscouldnotbecomesubjecttoacquisitionbythestatewithouttheCompany'sagreement,orthattheCompanywouldbeadequatelycompensatedforthelossofitslandrights.AnysuchclaimscouldhaveanegativeimpactontheCompany'sSouthAfricanprojectsandthereforeanadverseeffectonitsbusiness,operatingresultsandfinancialcondition.

South African foreign exchange controls may limit repatriation of profits.

TheCompanywillmostlikelyneedtorepatriatefundsfromitsforeignsubsidiariestofulfillitsbusinessplansandmakepaymentsontheProject1WorkingCapitalFacilities.SincecommencingbusinessinSouthAfrica,theCompanyhasloanedorinvestedapproximatelyCAN$782.36millionasatAugust31,2016intoPTMRSAinSouthAfrica.TheCompanyobtainedapprovalfromtheSARBinadvanceforitsinvestmentsintoSouthAfrica.TheCompanyanticipatesthatitwillloanthemajorityoftheproceedsfromanOfferingtoPTMRSAwiththeadvanceapprovaloftheSARB.AlthoughtheCompanyisnotawareofanylaworregulationthatwouldpreventtherepatriationoffundsithasloanedorinvestedintoSouthAfricabacktotheCompanyinCanada,noassurancecanbegiventhattheCompanywillbeabletorepatriatefundsbacktoCanadainatimelymannerorwithoutincurringtaxpaymentsorothercostswhendoingso,duetolegalrestrictionsortaxrequirementsatlocalsubsidiarylevelsorattheparentcompanylevel,whichcostscouldbematerial.

SouthAfrica'sexchangecontrolregulationsrestricttheexportofcapitalfromSouthAfrica.AlthoughtheCompanyisnotitselfsubjecttoSouthAfricanexchangecontrolregulations,theseregulationsdorestricttheabilityoftheCompany'sSouthAfricansubsidiariestoraiseanddeploycapitaloutsidethecountry,toborrowmoneyincurrenciesotherthantheRandandtoholdforeigncurrency. Exchangecontrolregulationscouldmakeit difficult fortheCompany'sSouthAfricansubsidiariesto:(a)exportcapitalfromSouthAfrica;(b)holdforeigncurrencyorincurindebtednessdenominatedinforeigncurrencieswithoutapprovaloftherelevantSouthAfricanexchangecontrolauthorities;(c)acquireaninterestinaforeignventurewithoutapprovaloftherelevantSouthAfricanexchangecontrolauthoritiesandcompliancewithcertaininvestmentcriteria;and(d)repatriatetoSouthAfricaprofitsofforeignoperations.WhiletheSouthAfricangovernmenthasrelaxedexchangecontrolsinrecentyears, it is difficult to predict whether or how it will further relax or abolish exchange control measures in the foreseeable future. There can be no assurance thatrestrictionsonrepatriationofearningsfromSouthAfricawillnotbeimposedontheCompanyinthefuture.

Community relations may affect the Company's business.

MaintainingcommunitysupportthroughapositiverelationshipwiththecommunitiesinwhichtheCompanyoperatesiscriticaltocontinuingsuccessfulexplorationanddevelopment.Asabusinessintheminingindustry,theCompanymaycomeunderpressureinthejurisdictionsinwhichitexploresordevelops,todemonstratethatotherstakeholdersbenefitandwillcontinuetobenefitfromtheCompany'scommercialactivities.TheCompanymayfaceoppositionwithrespecttoitscurrentandfuturedevelopmentandexploration

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projectswhichcouldmateriallyadverselyaffectitsbusiness,resultsofoperations,financialconditionandCommonShareprice.

RisksRelatingtotheOfferingsandtheSecurities

The Company has never paid dividends and does not expect to do so in the foreseeable future.

TheCompanyhasnotpaidanydividendssinceincorporationandithasnoplanstopaydividendsintheforeseeablefuture.TheCompany'sdirectorswilldetermineifandwhendividendsshouldbedeclaredandpaidinthefuturebasedontheCompany'sfinancialpositionattherelevanttime.Further,theProject1WorkingCapitalFacilitieslimittheCompany'sabilitytopaydividends,andmakedistributionsorotherpaymentsbasedonsharecapital.Inaddition,theCompany'sabilitytodeclareandpaydividendsmaybeaffectedbytheSouthAfricangovernment'sexchangecontrols.See"SouthAfricanRegulatoryFramework—ExchangeControl"intheAIF.

The Common Share price has been volatile in recent years.

In recent years, the securities markets in the United States and Canada have experienced a high level of price and volume volatility, and the market price ofsecuritiesofmanycompanies,particularlythoseconsideredexplorationordevelopment-stageminingcompanies,haveexperiencedwidefluctuationsinpricewhichhavenot necessarily been related to the operating performance, underlying asset values or prospects of such companies. In particular, after giving effect to the ShareConsolidation,thepersharepriceoftheCommonSharesontheTSXfluctuatedfromahighofCAN$5.25toalowofCAN$1.35andontheNYSEMKTfromahighofUS$4.04toalowofUS$0.96duringthetwelve-monthperiodendingOctober13,2016.Therecanbenoassurancethatcontinualfluctuationsinpricewillnotoccur.

The factors influencing such volatility include macroeconomic developments in North America and globally, and market perceptions of the attractiveness ofparticularindustries.ThepriceoftheCommonSharesisalsolikelytobesignificantlyaffectedbyshorttermchangesinpreciousmetalpricesorothermineralprices,currency exchange fluctuations and the Company's financial condition or results of operations as reflected in its earnings reports. Other factors unrelated to theperformanceoftheCompanythatmayhaveaneffectonthepriceoftheCommonSharesandotherSecuritiesincludethefollowing:

• theextentofanalystcoverageavailabletoinvestorsconcerningthebusinessoftheCompanymaybelimitedifinvestmentbankswithresearchcapabilitiesdonotfollowtheCompany'ssecurities;

• lessening in trading volume and general market interest in the Company's securities may affect an investor's ability to trade significant numbers ofsecuritiesoftheCompany;

• changestoSouthAfricanlawsandregulationsmighthaveanegativeeffectonthedevelopmentprospects,timelinesorrelationshipsfortheCompany'smaterialproperties;

• thesizeoftheCompany'spublicfloatmaylimittheabilityofsomeinstitutionstoinvestintheCompany'ssecurities;and

• asubstantialdeclineinthepriceofthesecuritiesoftheCompanythatpersistsforasignificantperiodoftimecouldcausetheCompany'ssecuritiestobedelistedfromanexchange,furtherreducingmarketliquidity.

Securitiesclassactionlitigationoftenhasbeenbroughtagainstcompaniesfollowingperiodsofvolatilityinthemarketpriceoftheirsecurities.TheCompanymayinthefuturebethetargetofsimilarlitigation.Securitieslitigationcouldresultinsubstantialcostsanddamagesanddivertmanagement'sattentionandresources.

The Company's growth, future profitability and ability to obtain financing may be impacted by global financial conditions.

Globalfinancialconditionscontinuetobecharacterizedbyextremevolatility.Inrecentyears,globalmarketshavebeenadverselyimpactedbythecreditcrisisthatbeganin2008,theEuropeandebtcrisisandsignificantfluctuationsinfuelandenergycostsandmetalsprices.Manyindustries,includingtheminingindustry,havebeenimpactedbythesemarketconditions.Globalfinancialconditionsremainsubjecttosudden

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andrapid destabilizations in response to future economic shocks, as government authorities may have limited resources to respond to future crises. A continued orworsened slowdownin the financialmarkets or other economic conditions, including but not limited to consumer spending, employment rates, business conditions,inflation, fuel andenergycosts, consumerdebtlevels, lackofavailablecredit, thestateof thefinancial markets, interest rates andtaxrates, mayadverselyaffect theCompany'sgrowthandprofitability.Futureeconomicshocksmaybeprecipitatedbyanumberofcauses,includingdebtcrises,acontinuedriseinthepriceofoilandother commodities, the volatility of metal prices, geopolitical instability, terrorism, the devaluation and volatility of global stockmarkets, health crises and naturaldisasters.AnysuddenorrapiddestabilizationofglobaleconomicconditionscouldimpacttheCompany'sabilitytoobtainequityordebtfinancinginthefutureontermsfavourabletotheCompanyoratall.Insuchanevent,theCompany'soperationsandfinancialconditioncouldbeadverselyimpacted.

The exercise of outstanding stock options or warrants will result in dilution to the holders of Common Shares.

TheissuanceofCommonSharesupontheexerciseoftheCompany'soutstandingstockoptionswillresultindilutiontotheinterestsofshareholders,andmayreducethetradingpriceoftheCommonShares.AdditionalstockoptionsandwarrantstopurchaseCommonSharesmaybeissuedinthefuture.Exercisesofthesesecurities,oreventhepotentialoftheirexercise,mayhaveanadverseeffectonthetradingpriceoftheCommonShares.TheholdersofstockoptionsorwarrantsarelikelytoexercisethemattimeswhenthemarketpriceoftheCommonSharesexceedstheexercisepriceofthesecurities.Accordingly,theissuanceofCommonSharesuponexerciseofthestockoptionsandwarrantswilllikelyresultindilutionoftheequityrepresentedbythethenoutstandingCommonSharesheldbyothershareholders.TheholdersofstockoptionsorwarrantscanbeexpectedtoexerciseorconvertthematatimewhentheCompanywould,inalllikelihood,beabletoobtainanyneededcapitalontermswhicharemorefavorabletotheCompanythantheexercisetermsprovidedbythesestockoptionsandwarrants.

Future sales or issuances of equity Securities could decrease the value of the Common Shares, dilute investors' voting power and reduce the Company's earningsper share.

TheCompanymaysellequitySecuritiesinOfferings(includingthroughthesaleofDebtSecuritiesconvertibleintoequitySecurities) andmayissueadditionalequity Securities to finance operations, exploration, development, acquisitions or other projects. The Company cannot predict the size of future issuances of equitySecuritiesorthesizeandtermsoffutureissuancesofDebtSecuritiesorotherSecuritiesconvertibleintoequitySecuritiesortheeffect,ifany,thatfutureissuancesandsales of the Securities will haveon the market price of the CommonShares. Anytransaction involving the issuance of previously authorized but unissued CommonShares, or Securities convertible intoCommonShares, wouldresult indilution, possiblysubstantial, toshareholders. Exercisesof presentlyoutstandingstockoptionsmayalsoresultindilutiontoshareholders.

TheboardofdirectorsoftheCompanyhastheauthoritytoauthorizecertainoffersandsalesoftheSecuritieswithoutthevoteof,orpriornoticeto,shareholders.Basedontheneedforadditionalcapitaltofundexpectedexpendituresandgrowth,itislikelythattheCompanywillissuetheSecuritiestoprovidesuchcapital.SuchadditionalissuancesmayinvolvetheissuanceofasignificantnumberofCommonSharesatpriceslessthanthecurrentmarketprice.

SalesofsubstantialamountsoftheSecurities,ortheavailabilityoftheSecuritiesforsale,couldadverselyaffecttheprevailingmarketpricesfortheSecuritiesanddiluteinvestors' earnings per share. Adecline in the market prices of the Securities couldimpair the Company's ability to raise additional capital throughthe sale ofadditionalSecuritiesshouldtheCompanydesiretodoso.

Judgments based upon the civil liability provisions of the United States federal securities laws may be difficult to enforce.

TheabilityofinvestorstoenforcejudgmentsofUnitedStatescourtsbaseduponthecivilliabilityprovisionsoftheUnitedStatesfederalsecuritieslawsagainsttheCompany,itsdirectorsandofficers,andtheexpertsnamedhereinmaybelimitedduetothefactthattheCompanyisincorporatedoutsideoftheUnitedStates,amajorityofsuchdirectors,officers,andexpertsresideoutsideoftheUnitedStatesandasubstantialportionoftheassetsoftheCompanyandsaidpersonsarelocatedoutsidetheUnitedStates.Thereisuncertaintyasto

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whether foreign courts would: (a) enforce judgments of United States courts obtained against the Company, its directors and officers or the experts named hereinpredicateduponthecivilliabilityprovisionsoftheUnitedStatesfederalsecuritieslaws;or(b)entertainoriginalactionsbroughtinCanadiancourtsagainsttheCompanyorsuchpersonspredicateduponthefederalsecuritieslawsoftheUnitedStates,assuchlawsmayconflictwithCanadianlaws.

There may be adverse Canadian tax consequences for a foreign controlled Canadian company that acquires the Securities of the Company.

Certainadversetaxconsiderationsmaybeapplicabletoashareholderthat is acorporationresident inCanadaandis, orbecomes, controlledbyanon-residentcorporation for the purposes of the "foreign affiliate dumping" rules in the Income Tax Act (Canada)(the "TaxAct"). Such shareholders should consult their taxadvisorswithrespecttotheconsequencesofacquiringtheSecurities.

The Company may be a "passive foreign investment company" in its current and future tax years, which may have adverse U.S. federal income tax consequences forU.S. investors.

PotentialinvestorsintheSecuritieswhoareU.S.taxpayersshouldbeawarethattheCompanymaybeclassifiedasa"passive foreigninvestmentcompany"or"PFIC"foritscurrenttaxyearendingAugust31,2017,andmaybeaPFICinfuturetaxyears.IftheCompanyisaPFICforanytaxyearduringaU.S.taxpayer'sholdingperiod of the Securities, then such U.S. taxpayer generally will be required to treat any gain realized upon a disposition of the Securities or any so-called "excessdistribution"receivedontheSecurities,asordinaryincome,andtopayaninterestchargeonaportionofsuchgainorexcessdistribution.Incertaincircumstances,thesum of the tax and the interest charge may exceed the total amount of proceeds realized on the disposition, or the amount of excess distribution received, by theU.S.taxpayer.Subjecttocertainlimitations,thesetaxconsequencesmaybemitigatedifaU.S.taxpayermakesatimelyandeffective"qualifiedelectingfund"or"QEF"election(a"QEFElection")underSection1295oftheInternalRevenueCodeof1986,asamended(the"Code")oramark-to-marketelection(a"Mark-to-MarketElection")underSection1296oftheCode.Subject tocertainlimitations, suchelectionsmaybemadewithrespecttotheSecurities, provided,however, thataQEFElection may not be made with respect to Warrants and Debt Securities convertible into Common Shares and that the Mark-to-Market Election may only apply toCommonShares.AU.S.taxpayerwhomakesatimelyandeffectiveQEFElectiongenerallymustreportonacurrentbasisitsshareoftheCompany'snetcapitalgainandordinaryearningsforanyyearinwhichtheCompanyisaPFIC,whetherornottheCompanydistributesanyamountstoitsshareholders.AU.S.taxpayerwhomakestheMark-to-MarketElectiongenerallymustincludeasordinaryincomeeachyeartheexcessofthefairmarketvalueofCommonSharesoverthetaxpayer'sbasistherein.EachpotentialinvestorwhoisaU.S.taxpayershouldconsultitsowntaxadvisorregardingtheU.S.federal,U.S.stateandlocal,andforeigntaxconsequencesofthePFICrulesandtheacquisition,ownership,anddispositionofSecuritiesacquiredpursuanttothisProspectus.

The Company is an "emerging growth company" and the Company cannot be certain whether the reduced disclosure requirements applicable to emerging growthcompanies will make the Securities less attractive to investors.

TheCompanyisan"emerginggrowthcompany,"asdefinedintheU.S.JumpstartOurBusinessStartupsActof2012,andintendstotakeadvantageofexemptionsfromvariousrequirementsthatareapplicabletootherpubliccompaniesthatareemerginggrowthcompanies,includingnotbeingrequiredtocomplywiththeauditorattestation requirements of Section 404of the U.S. Sarbanes-Oxley Act of 2002for so long as the Companyis an emerging growth company. The CompanycannotpredictifinvestorswillfindtheSecuritieslessattractivebecausetheCompany'sindependentauditorswillnothaveattestedtotheeffectivenessoftheCompany'sinternalcontrols.IfsomeinvestorsfindtheSecuritieslessattractiveasaresultoftheCompany'sindependentauditorsnotattestingtotheeffectivenessoftheCompany'sinternalcontrolsorasaresultofotherexemptionsthattheCompanymaytakeadvantageof, theremaybealessactivetradingmarketfortheSecuritiesandthevalueoftheSecuritiesmaybeadverselyaffected.

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The Company has discretion in the use of the net proceeds from an Offering.

TheCompanyintendstoallocate thenet proceedsit will receivefromanOfferingas describedunder "Useof Proceeds" inthis ProspectusandtheapplicableProspectusSupplement,however,theCompanywillhavediscretionintheactualapplicationofthenetproceeds.TheCompanymayelecttoallocatethenetproceedsdifferentlyfromthatdescribedin"UseofProceeds"inthisProspectusandtheapplicableProspectusSupplementiftheCompanybelievesitwouldbeintheCompany'sbestintereststodoso.TheCompany'sinvestorsmaynotagreewiththemannerinwhichtheCompanychoosestoallocateandspendthenetproceedsfromanOffering.ThefailurebytheCompanytoapplythesefundseffectivelycouldhaveamaterialadverseeffectonthebusinessoftheCompany.

There is an absence of a public market for certain of the Securities.

ThereisnopublicmarketfortheDebtSecurities,Warrants,SubscriptionReceiptsorUnitsand,unlessotherwisespecifiedintheapplicableProspectusSupplement,theCompanydoesnotintendtoapplyforlistingoftheDebtSecurities, Warrants, SubscriptionReceiptsorUnitsonanysecurities exchanges. If theDebtSecurities,Warrants, SubscriptionReceipts or Units are tradedafter their initial issuance, theymaytradeat a discount fromtheir initial offeringprices dependingonprevailinginterestrates(asapplicable),themarketforsimilarsecuritiesandotherfactors,includinggeneraleconomicconditionsandtheCompany'sfinancialcondition.TherecanbenoassuranceastotheliquidityofthetradingmarketfortheDebtSecurities,Warrants,SubscriptionReceiptsorUnits,orthatatradingmarketforthesesecuritieswilldevelopatall.

The  Debt  Securities  will  be  structurally  subordinated  to  any  indebtedness  of  the  Company's  subsidiaries  and  the  Company's  ability  to  service  indebtedness  isdependent on the results of operations of, and payments received from, its subsidiaries.

TheCompanycarries onits business throughcorporate subsidiaries, andthemajority of its assets are heldincorporate subsidiaries. TheCompany'sresultsofoperationsandabilitytoserviceindebtedness,includingtheDebtSecurities,aredependentupontheresultsofoperationsofthesesubsidiariesandthepaymentoffundsbythesesubsidiariestotheCompanyintheformofloans,dividendsorotherwise.TheCompany'ssubsidiarieswillnothaveanobligationtopayamountsduepursuanttoanyDebtSecuritiesortomakeanyfundsavailableforpaymentonDebtSecurities,whetherbydividends,interest,loans,advancesorotherpayments.Inaddition,thepaymentofdividendsandthemakingofloans,advancesandotherpaymentstotheCompanybyitssubsidiariesmaybesubjecttostatutoryorcontractualrestrictions.TheIndenturewouldnotlimittheCompany'sabilityortheabilityofitssubsidiariestoincurindebtedness.SuchindebtednessoftheCompany'ssubsidiarieswouldbestructurallyseniortotheDebtSecurities.Intheeventoftheliquidationofanysubsidiary,theassetsofthesubsidiarywouldbeusedfirsttorepaytheobligationsofthesubsidiary,includingindebtednessandtradepayables,priortobeingusedbytheCompanytopayitsindebtedness,includinganyDebtSecurities.

Changes in interest rates may cause the market price or value of the Debt Securities to decline.

Prevailinginterest rateswill affect themarketpriceorvalueoftheDebtSecurities. ThemarketpriceorvalueoftheDebt Securitiesmaydeclineasprevailinginterestratesforcomparabledebtinstrumentsrise,andincreaseasprevailinginterestratesforcomparabledebtinstrumentsdecline.

Fluctuations in foreign currency markets may cause the value of the Debt Securities to decline.

Debt Securities denominated or payable in foreign currencies may entail significant risk. These risks include, without limitation, the possibility of significantfluctuationsintheforeigncurrencymarkets,theimpositionormodificationofforeignexchangecontrolsandpotentialliquidityinthesecondarymarket.TheseriskswillvarydependinguponthecurrencyorcurrenciesinvolvedandwillbemorefullydescribedintheapplicableProspectusSupplement.

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USEOFPROCEEDS

UnlessotherwisespecifiedintheapplicableProspectusSupplement,thenetproceedsfromthesaleofSecuritieswillbeusedtoadvanceourbusinessobjectivesandfor general corporate purposes, including funding ongoing operations and/or working capital requirements, repaying indebtedness outstanding from time to time,discretionarycapitalprogramsandpotentialfutureacquisitions.EachProspectusSupplementwillcontainspecificinformationconcerningtheuseofproceedsfromthatsaleofSecurities.

AllexpensesrelatingtoanOfferingandanycompensationpaidtounderwriters,dealersoragents,asthecasemaybe,willbepaidoutoftheproceedsfromthesaleofsuchSecurities,unlessotherwisestatedintheapplicableProspectusSupplement.

EARNINGSCOVERAGERATIO

EarningscoverageratioswillbeprovidedasrequiredintheapplicableProspectusSupplementwithrespecttotheissuanceofDebtSecurities.

CONSOLIDATEDCAPITALIZATION

SincethedateoftheunauditedinterimcondensedconsolidatedfinancialstatementsoftheCompanyforthethreeandninemonthsendedMay31,2016,whichareincorporated by reference in this Prospectus, there has been no material change to the share and loan capital of the Company on a consolidated basis, other than asdisclosedinthisProspectus.SubsequenttoMay31,2016andpriortothedateofthisProspectus,noCommonSharesreservedforissuancepursuanttooutstandingstockoptionshavebeenissuedpursuanttotheexerciseofoutstandingoptions.See"PriorSales"and"DescriptionofExistingIndebtedness".

DESCRIPTIONOFEXISTINGINDEBTEDNESS

TheCompanyenteredintotheSprottFacilitywiththeSprottLendersonFebruary16,2015,asamendedbyamodificationagreemententeredintoonNovember19,2015,theMayCredit FacilityAmendmentsandtheSeptemberCredit FacilityAmendments, andtheLibertyFacilitywithLibertyHoldingsonNovember2,2015,asamendedbytheMayCreditFacilityAmendmentsandtheSeptemberCreditFacilityAmendments.TheCompanysimultaneouslydrewdown,infull,US$40millionfromtheLibertyFacilityandtheOriginalSprott AdvancefromtheSprott FacilityinNovember2015.TheCompanyenteredintotheMayCredit FacilityAmendmentsonMay3,2016andtheSeptemberCreditFacilityAmendmentsonSeptember19,2016modifyingtheSprottFacilityandtheLibertyFacility,whereintheLendersagreedtoextendthematuritydatesoftheSprottFacilityandtheLibertyFacility,amendcertainprepaymentandrepaymenttermsandamendcertaineventsofdefaultrelatingtoproductiontargetsatProject1.TheCompanyenteredintotheAmended&RestatedSprottFacilityonOctober11,2016andimmediatelydrewdowntheSecondSprottAdvance.TheCompanypaysinterestundertheLibertyFacilityat9.5%overLIBORandinterestundertheAmended&RestatedSprottFacilityat8.5%overLIBOR.PaymentandperformanceoftheCompany'sobligationsundertheProject1WorkingCapitalFacilitiesareguaranteedbyPTMRSAandsecuredbyafirstandsecondprioritysecurityinterestinfavoroftheLendersinalloftheCompany'spersonalproperty,includingapledgeoveralloftheissuedsharesinthecapitalofPTMRSA.See"BusinessoftheCompany—Project1WorkingCapitalFacilities".

PLANOFDISTRIBUTION

WemayselltheSecurities,separatelyortogether:(a)tooneormoreunderwritersordealers;(b)throughoneormoreagents;or(c)directlytooneormoreotherpurchasers.EachProspectusSupplementwillsetforththetermsoftheapplicableOffering,includingthenameornamesofanyunderwritersoragents,thepurchasepriceorpricesoftheSecuritiesandtheproceedstotheCompanyfromthesaleoftheSecurities. Inaddition, Securitiesmaybeofferedandissuedinconsiderationfortheacquisition(an"Acquisition")ofotherbusinesses,assetsorsecuritiesbyusoroursubsidiaries.TheconsiderationforanysuchAcquisitionmayconsistofanyoftheSecuritiesseparately,acombinationofSecuritiesoranycombinationof,amongotherthings,securities,cashandassumptionofliabilities.

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TheSecuritiesmaybesoldfromtimetotimeinoneormoretransactionsatafixedpriceorpriceswhichmaybechangedoratmarketpricesprevailingatthetimeofsale,atpricesrelatedtosuchprevailingmarketpricesoratnegotiatedprices,includingsalesmadedirectlyontheTSX,orNYSEMKT,ifapplicable,orotherexistingtradingmarketsfortheCommonShares.ThepricesatwhichtheSecuritiesmaybeofferedmayvaryasbetweenpurchasersandduringtheperiodofdistribution.If,inconnectionwithanOfferingatafixedpriceorprices,theunderwritershavemadeabonafideefforttosellalloftheSecuritiesattheinitialofferingpricefixedintheapplicableProspectusSupplement,thepublicofferingpricemaybedecreasedandthereafterfurtherchanged,fromtimetotime,toanamountnotgreaterthantheinitialpublic offering price fixed in such Prospectus Supplement, in which case the compensation realized by the underwriters will be decreased by the amount that theaggregatepricepaidbypurchasersfortheSecuritiesislessthanthegrossproceedspaidtousbytheunderwriters.

Underwriters, dealers or agents who participate in the distribution of Securities may be entitled under agreements to be entered into with the Company toindemnification by us against certain liabilities, including liabilities under theUnited States Securities Act of 1933 , as amended, and applicable Canadian securitieslegislation,ortocontributionwithrespecttopaymentswhichsuchunderwriters,dealersoragentsmayberequiredtomakeinrespectthereof.Theunderwriters,dealersoragentswithwhomweenterintoagreementsmaybecustomersof,engageintransactionswith,orperformservicesfor,usintheordinarycourseofbusiness.

InconnectionwithanyofferingofSecurities,exceptasotherwisesetoutinaProspectusSupplementrelatingtoaparticularOffering,theunderwritersordealers,asthecasemaybe,mayover-allotoreffecttransactionsintendedtofixorstabilizethemarketpriceoftheSecuritiesatalevelabovethatwhichmightotherwiseprevailintheopenmarket.Suchtransactions,ifcommenced,maybediscontinuedatanytime.

PRIORSALES

Duringthe12monthsprecedingthedateofthisProspectus,theCompanyhasissuedoragreedtoissueCommonSharesatthefollowingprices:

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DateofIssuance Numberof

CommonShares IssuancePrices (CAN$)

November20,2015(1) 348,584(2) 3.05November20,2015(1) 348,584(3) 3.05March11,2016 2,250(4) 2.00May13,2016 131,654(5) 3.87May13,2016 131,654(6) 3.87May26,2016 11,000,000(7) 3.89September30,2016 801,314(8) 3.30September30,2016 801,314(9) 3.30October2016 113,963(10) 2.9185

TOTAL 13,679,317

Notes:

(1) ThenumberofCommonSharesandtheissuepricehavebeenadjustedtoreflecttheShareConsolidation.(2) IssuedpursuanttotheSprottFacility.(3) IssuedpursuanttotheLibertyFacility.(4) Issuedpursuanttotheexerciseofstockoptions.(5) IssuedtotheSprottLenderspursuanttotheMayCreditFacilityAmendments.(6) IssuedtoLibertyHoldingspursuanttotheMayCreditFacilityAmendments.(7) IssuedpursuanttotheMayOffering.(8) IssuedtotheSprottLenderspursuanttotheSeptemberCreditFacilityAmendments.(9) IssuedtoLibertyHoldingspursuanttotheSeptemberCreditFacilityAmendments.(10) TobeissuedpriortoOctober31,2016totheSprottLenderspursuanttotheAmended&RestatedSprottCreditAgreement.

Duringthe12monthsprecedingthedateofthisProspectus,theCompanyhasissuedthefollowingsecuritiesconvertibleintoCommonSharesatthefollowingprices:

PRICERANGEANDTRADINGVOLUME

TheCommonSharesarelistedfortradingontheTSXunderthetradingsymbol"PTM"andontheNYSEMKTunderthetradingsymbol"PLG".ThefollowingtablessetforthinformationrelatingtothetradingoftheCommonSharesontheTSXandtheNYSEMKTfortheperiodsindicated:

TSX(1)—"PTM"

NYSEMKT(1)—"PLG"

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DateofIssuance Numberof

OptionsIssued(1) ExercisePrices(1) (CAN$) December22,2015 1,016,550(2) 2.00

Notes:

(1) ThenumberofoptionsissuedandtheexercisepricehavebeenadjustedtoreflecttheShareConsolidation.(2) StockoptionsissuedpursuanttotheCompany'sstockoptionplan.EachoptionisexercisableforoneCommonShare.

Period High Low Volume (CAN$) (CAN$) October1to13,2016 3.66 2.67 617,417September,2016 3.97 3.50 1,039,057August,2016 4.63 3.59 1,568,123July,2016 4.95 3.79 2,665,700June,2016 4.64 3.51 1,827,030May,2016 4.74 3.42 1,788,239April,2016 5.07 3.16 3,329,126March,2016 5.25 2.51 3,111,955February,2016 3.00 1.41 4,237,233January,2016 2.05 1.35 1,223,459December,2015 3.00 1.75 2,166,542November,2015 3.45 2.80 208,371October,2015 4.30 3.00 645,474

Period High Low Volume (US$) (US$) October1to13,2016 2.80 2.02 3,056,356September,2016 3.08 2.66 4,474,440August,2016 3.56 2.75 7,993,488July,2016 3.98 2.87 10,608,231June,2016 3.57 2.73 8,766,770May,2016 3.71 2.65 7,089,516April,2016 3.91 2.46 10,796,958March,2016 4.04 1.86 8,742,239February,2016 2.19 1.01 15,083,013January,2016 1.51 0.96 1,462,689December,2015 2.26 1.25 1,624,307November,2015 2.65 2.03 738,390October,2015 3.40 2.26 1,518,493

(1) ThepriceandvolumehavebeenadjustedtoreflecttheShareConsolidation.

DIVIDENDPOLICY

WehavenotdeclaredanydividendsordistributionsontheCommonSharessinceourincorporation.Weintendtoretainourearnings,ifany,tofinancethegrowthanddevelopmentofouroperationsanddonotpresentlyanticipatepayinganydividendsordistributionsintheforeseeablefuture.Ourboardofdirectorsmay,however,declare from time to time such cash dividends or distributions out of the monies legally available for dividends or distributions as the board of directors considersadvisable.Anyfuturedeterminationtopaydividendsormakedistributionswillbeatthediscretionoftheboardofdirectorsandwilldependonourcapitalrequirements,resultsofoperationsandsuchotherfactorsastheboardofdirectorsconsidersrelevant.

DESCRIPTIONOFCOMMONSHARES

OurauthorizedsharecapitalconsistsofanunlimitednumberofCommonShares.AsatthedateofthisProspectus, 90,459,656CommonSharesareissuedandoutstanding.

ShareholdersareentitledtoreceivenoticeofandattendallmeetingsofshareholderswitheachCommonShareheldentitlingtheholdertoonevoteonanyresolutiontobepassedatsuchshareholdermeetings.Shareholdersareentitledtodividendsif,asandwhendeclaredbytheboardofdirectorsoftheCompany.Shareholdersareentitleduponliquidation,dissolutionorwinding-upoftheCompanytoreceivetheremainingassetsoftheCompanyavailablefordistributiontoshareholders.

DESCRIPTIONOFDEBTSECURITIES

InthissectiondescribingtheDebtSecurities,theterm"Company"refersonlytoPlatinumGroupMetalsLtd.withoutanyofitssubsidiaries.ThissectiondescribesthegeneraltermsthatwillapplytoanyDebtSecuritiesissuedpursuanttothisProspectus.ThespecifictermsoftheDebtSecurities,andtheextenttowhichthegeneraltermsdescribedinthissectionapplytothoseDebtSecurities,willbesetforthintheapplicableProspectusSupplement.TheDebtSecuritieswillbeissuedinoneormoreseriesunderanindenture(the"Indenture")tobeenteredintobetweentheCompanyandoneormoretrustees (the"Trustee")that will benamedinaProspectusSupplementforaseriesofDebtSecurities.Totheextentapplicable,theIndenturewillbesubjecttoandgovernedbytheUnitedStatesTrustIndentureActof1939,asamended. Acopyof the formof the Indenture to be entered into hasbeen filed with the SECas an exhibit to the Registration Statement. Thedescription of certainprovisionsoftheIndentureinthissectionisnotintendedtobecompleteandisqualifiedinitsentiretybyreferencetotheprovisionsoftheIndenture.TermsusedinthissummarythatarenototherwisedefinedhereinhavethemeaningascribedtothemintheIndenture.

WemayissueDebtSecuritiesandincuradditionalindebtednessotherthanthroughanOfferingofDebtSecuritiespursuanttothisProspectus.WemayberequiredtoobtaintheconsentofourlendersfortheissuanceofcertainDebtSecurities,dependingontheirspecificterms.

General

TheIndenturedoesnotlimittheamountofDebtSecuritieswhichwemayissueundertheIndenture,andwemayissueDebtSecuritiesinoneormoreseries.DebtSecuritiesmaybedenominatedandpayableinanycurrency.UnlessotherwiseindicatedintheapplicableProspectusSupplement,theIndenturepermitsus,withouttheconsentoftheholdersofanyDebtSecurities,toincreasetheprincipalamountofanyseriesofDebtSecuritieswehavepreviouslyissuedundertheIndentureandtoissuesuchincreasedprincipalamount.

Theapplicable ProspectusSupplement will set forththefollowingtermsrelatingtotheDebt Securities offeredbysuchProspectusSupplement (the"OfferedSecurities"):

• thespecificdesignationoftheOfferedSecurities;anylimitontheaggregateprincipalamountoftheOfferedSecurities;thedateordates,ifany,onwhichtheOfferedSecuritieswill matureandtheportion(if lessthanall of theprincipal amount)oftheOfferedSecuritiestobepayableupondeclarationofaccelerationofmaturity;

• therateorratesatwhichtheOfferedSecuritieswillbearinterest,ifany,thedateordatesonwhichanysuchinterestwillbegintoaccrueandonwhichanysuchinterestwillbepayableandtherecorddatesforanyinterestpayableontheOfferedSecuritieswhichareinregisteredform;

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• thetermsandconditionsunderwhichwemaybeobligatedtoredeem,repayorpurchasetheOfferedSecuritiespursuanttoanysinkingfundoranalogousprovisionsorotherwise;

• thetermsandconditionsuponwhichwemayredeemtheOfferedSecurities,inwholeorinpart,atouroption;

• whethertheOfferedSecuritieswillbeissuableinregisteredformorbearerformorboth,and,ifissuableinbearerform,therestrictionsastotheoffer,saleanddeliveryoftheOfferedSecuritieswhichareinbearerformandastoexchangesbetweenregisteredformandbearerform;

• whethertheOfferedSecuritieswillbeissuableintheformofregisteredglobalsecurities("GlobalSecurities"),and,ifso,theidentityofthedepositaryforsuchregisteredGlobalSecurities;

• the denominations in which registered Offered Securities will be issuable, if other than denominations of US$1,000and anymultiple thereof, andthedenominationsinwhichbearerOfferedSecuritieswillbeissuable,ifotherthanUS$1,000;

• eachofficeoragencywherepaymentsontheOfferedSecuritieswillbemade(ifotherthantheofficesoragenciesdescribedunder"Payment"below)andeachofficeoragencywheretheOfferedSecuritiesmaybepresentedforregistrationoftransferorexchange;

• ifotherthanU.S.dollars,thecurrencyinwhichtheOfferedSecuritiesaredenominatedorthecurrencyinwhichwewillmakepaymentsontheOfferedSecurities;

• theterms,ifany,onwhichtheOfferedSecuritiesmaybeconvertedorexchangedforotheroftheSecuritiesorsecuritiesofotherentities;

• anyothertermsoftheOfferedSecuritieswhichapplysolelytotheOfferedSecurities,ortermsgenerallyapplicabletotheDebtSecuritieswhicharenottoapplytotheOfferedSecurities;and

• ifnotobtainedasatthedateofsuchProspectusSupplement,anyconsentsrequiredtobeobtainedwithrespecttotheissuanceoftheOfferedSecurities.

UnlessotherwiseindicatedintheapplicableProspectusSupplement:

• holdersmaynottenderDebtSecuritiestousforrepurchase;and

• the rate or rates of interest on the Debt Securities will not increase if we become involved in a highly leveraged transaction or we are acquired byanotherentity.

WemayissueDebtSecuritiesundertheIndenturebearingnointerestorinterestataratebelowtheprevailingmarketrateatthetimeofissuance.WemayofferandsellDebtSecuritiesatadiscountbelowtheirstatedprincipalamount.WewilldescribeintheapplicableProspectusSupplementanyCanadianandU.S.federalincometax consequences and other special considerations applicable to any discounted Debt Securities or other Debt Securities offered and sold at par which are treated ashavingbeenissuedatadiscountforCanadianand/orU.S.federalincometaxpurposes.

Any Debt Securities we issue will be our direct, unconditional and unsecured obligations and will rank equally among themselves and with all of our otherunsecured, unsubordinated obligations, except to the extent prescribed by law. Debt Securities we issue will be structurally subordinated to all existing and futureliabilities,includingtradepayablesandotherindebtedness,ofoursubsidiaries.

Wewill agree to file with the Trustee annual reports and the information, documents, and other reports that we are required to file with the SECpursuant toSection13orSection15(d)oftheExchangeActorpursuanttoSection314oftheUnitedStatesTrustIndentureActof1939,asamended.

Form,Denomination,ExchangeandTransfer

Unless otherwise indicated in the applicable Prospectus Supplement, we will issue Debt Securities only in fully registered form without coupons, and indenominationsofUS$1,000andmultiplesofUS$1,000.DebtSecuritiesmaybepresentedforexchangeandregisteredDebtSecuritiesmaybepresentedforregistrationoftransferinthemannersetforthintheIndentureandintheapplicableProspectusSupplement,withoutservicecharges.Wemay,however,requirepaymentsufficienttocoveranytaxesorothergovernmentalchargesduein

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connectionwiththeexchangeortransfer.WewillappointtheTrusteeassecurityregistrar.BearerDebtSecuritiesandthecouponsapplicabletobearerDebtSecuritiestheretowillbetransferablebydelivery.

Payment

UnlessotherwiseindicatedintheapplicableProspectusSupplement, wewill makepaymentsonregisteredDebtSecurities(otherthan GlobalSecurities)attheofficeoragencyoftheTrustee,exceptthatwemaychoosetopayinterest(a)bycheckmailedtotheaddressofthepersonentitledtosuchpaymentasspecifiedinthesecurityregisteror(b)bywiretransfertoanaccountmaintainedbythepersonentitledtosuchpaymentasspecifiedinthesecurityregister.Unlessotherwiseindicatedinthe applicableProspectus Supplement, we will pay any interest due on registered Debt Securities to the persons in whose name such registered Debt Securities areregisteredonthedayordays,specifiedintheapplicableProspectusSupplement.

RegisteredGlobalSecurities

RegisteredDebtSecuritiesofaseriesmaybeissuedinwholeorinpartinglobalformthatwillbedepositedwith,oronbehalfof,a depositaryidentifiedintheProspectusSupplement.GlobalSecuritieswillberegisteredinthenameofafinancialinstitutionthatweselect,andtheDebtSecuritiesincludedintheGlobalSecuritiesmaynotbetransferredtothenameofanyotherdirectholderunlessthespecialcircumstancesdescribedbelowoccur.ThefinancialinstitutionthatactsasthesoledirectholderoftheGlobalSecuritiesiscalledthe"Depositary".AnypersonwishingtoownDebtSecuritiesissuedintheformofGlobalSecuritiesmustdosoindirectlybyvirtueofanaccountwithabroker,bankorotherfinancialinstitutionthat,inturn,hasanaccountwiththeDepositary.

SpecialInvestorConsiderationsforGlobalSecurities

Ourobligations,aswellastheobligationsoftheTrusteeandthoseofanythirdpartiesweemployedortheTrustee,runonlytopersonswhoareregisteredasholdersofDebtSecurities.Forexample,oncewemakepaymenttotheregisteredholder,wehavenofurtherresponsibilityforthepaymentevenifthatholderislegallyrequiredtopassthepaymentalongtoaninvestorbutdoesnotdoso.Asanindirectholder,aninvestor'srightsrelatingtoaGlobalSecuritywillbegovernedbytheaccountrulesoftheinvestor'sfinancialinstitutionandoftheDepositary,aswellasgenerallawsrelatingtodebtsecuritiestransfers.

AninvestorshouldbeawarethatwhenDebtSecuritiesareissuedintheformofGlobalSecurities:

• theinvestorcannothaveDebtSecuritiesregisteredinhisorherownname;

• theinvestorcannotreceivephysicalcertificatesforhisorherinterestintheDebtSecurities;

• theinvestormustlooktohisorherownbankorbrokeragefirmforpaymentsontheDebtSecuritiesandprotectionofhisorherlegalrightsrelatingtotheDebtSecurities;

• theinvestormaynotbeabletosellinterestsintheDebtSecuritiestosomeinsurancecompaniesandotherinstitutionsthatarerequiredbylawtoholdthephysicalcertificatesofDebtSecuritiesthattheyown;

• theDepositary'spolicieswillgovernpayments,transfers,exchangeandothermattersrelatingtotheinvestor'sinterestintheGlobalSecurity.WeandtheTrusteewillhavenoresponsibilityforanyaspectoftheDepositary'sactionsorforitsrecordsofownershipinterestsintheGlobalSecurity.WeandtheTrusteealsodonotsupervisetheDepositaryinanyway;and

• theDepositarywillusuallyrequirethatinterestsinaGlobalSecuritybepurchasedorsoldwithinitssystemusingsame-dayfunds.

SpecialSituationsWhenGlobalSecurityWillbeTerminated

In a few special situations described below, a Global Security will terminate and interests in it will be exchanged for physical certificates representing DebtSecurities.Afterthatexchange,aninvestormaychoosewhethertoholdDebtSecuritiesdirectlyorindirectlythroughanaccountatitsbankorbrokeragefirm.Investors

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mustconsulttheirownbanksorbrokerstofindouthowtohavetheirinterestsinDebtSecuritiestransferredintotheirownnames,sothattheywillbedirectholders.

ThespecialsituationsforterminationofaGlobalSecurityare:

• when the Depositary notifies us that it is unwilling, unable or no longer qualified to continue as Depositary (unless a replacement Depositary isnamed);and

• whenandifwedecidetoterminateaGlobalSecurity.

TheProspectusSupplementmaylistsituationsforterminatingaGlobalSecuritythatwouldapplyonlytotheparticularseriesofDebtSecuritiescoveredbytheProspectusSupplement.WhenaGlobalSecurityterminates,theDepositary(andnotusortheTrustee)isresponsiblefordecidingthenamesoftheinstitutionsthatwillbetheinitialdirectholders.

EventsofDefault

Theterm"EventofDefault"withrespecttoDebtSecuritiesofanyseriesmeansanyofthefollowing:

(a) defaultinthepaymentoftheprincipalof(oranypremiumon)anySecurityofthatseriesatitsmaturity;

(b) defaultinthepaymentofanyinterest onanySecurityofthatserieswhenit becomesdueandpayable,andcontinuanceofsuchdefault foraperiodof30days;

(c) defaultinthedepositofanysinkingfundpaymentwhenthesamebecomesduebythetermsoftheDebtSecuritiesofthatseries;

(d) defaultintheperformance,orbreach,ofanyothercovenantoragreementofoursintheIndentureinrespectoftheDebtSecuritiesofthatseries(otherthanacovenantoragreementforwhichdefaultorbreachisspecificallydealtwithelsewhereintheIndenture),wheresuchdefaultorbreachcontinuesforaperiodof90daysafterwrittennoticetousbytheTrusteeortheholdersofatleast25%inprincipalamountofalloutstandingDebtSecuritiesaffectedthereby;

(e) certaineventsofbankruptcy,insolvencyorreorganization;or

(f) anyotherEventsofDefaultprovidedwithrespecttotheDebtSecuritiesofthatseries.

IfanEventofDefaultdescribedinclause(a),(b),(c),(d)or(f)aboveoccursandiscontinuingwithrespecttoDebtSecuritiesofanyseries,thentheTrusteeortheholdersofnotlessthan25%inaggregateprincipalamountoftheoutstandingDebtSecuritiesofthatseriesmayrequiretheprincipalamount(or,iftheDebtSecuritiesofthatseriesareOriginalIssueDiscountSecuritiesorIndexedSecurities(eachasdefinedintheIndenture),suchportionoftheprincipalamountasmaybespecifiedinthetermsofthatseries)ofalltheoutstandingDebtSecuritiesofthatseriesandanyaccruedbutunpaidinterestonsuchDebtSecuritiesbepaidimmediately.IfanEventofDefaultdescribedinclause(e)aboveoccursandiscontinuing,thentheprincipalamountofalloftheDebtSecuritiesofthatseriesthenoutstandingwillautomatically,andwithoutanydeclarationoranyotheractiononthepartoftheTrusteeortheholdersofDebtSecurities,becomedueandpayableimmediately.

However,atanytimeafteradeclarationofaccelerationwithrespecttoDebtSecuritiesofanyserieshasbeenmadeandbeforeajudgmentordecreeforpaymentofthemoneyduehasbeenobtained,theEventofDefaultgivingrisetosuchdeclarationofaccelerationwillbedeemedtohavebeenwaivediftheCompanyhaspaidtheTrusteeallamountsdueandtheEventofDefaulthasbeencuredorwaivedinaccordancewiththetermsoftheIndenture,bytheholdersofamajorityinprincipalamountoftheoutstandingDebtSecuritiesofsuchseries.TheapplicableProspectusSupplementwillcontainprovisionsrelatingtoaccelerationofthematurityofaportionoftheprincipalamountofOriginalIssueDiscountSecuritiesorIndexedSecuritiesupontheoccurrenceofanyEventofDefaultandthecontinuationthereof.

Exceptduringdefault,theTrusteeisnotobligatedtoexerciseanyofitsrightsandpowersundertheIndentureattherequestordirectionofanyoftheholders,unlesstheholdershaveofferedtotheTrusteereasonableindemnity.Iftheholdersprovidereasonableindemnity,theholdersofamajorityinprincipalamountoftheoutstandingDebtSecuritiesofallseriesaffectedbyanEventofDefaultmay,subjecttocertain

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limitations,directthetime,methodandplaceofconductinganyproceedingforanyremedyavailabletotheTrustee,orexercisinganytrustorpowerconferredontheTrustee,withrespecttotheDebtSecuritiesofallseriesaffectedbysuchEventofDefault.

NoholderofaDebtSecurityofanyserieswillhaveanyrighttoinstituteanyproceedings,unless:

• suchholderhaspreviouslygiventotheTrusteewrittennoticeofacontinuingEventofDefaultwithrespecttotheDebtSecuritiesofthatseries;

• theholdersofatleast25%inprincipalamountoftheoutstandingDebtSecuritiesofallseriesaffectedbysuchEventofDefaulthavemadewrittenrequestandhaveofferedreasonableindemnitytotheTrusteetoinstitutesuchproceedingsastrustee;and

• theTrusteehasfailedtoinstitutesuchproceedings,andhasnotreceivedfromtheholdersofamajorityintheaggregateprincipalamountofoutstandingDebt Securities of all series affected by such Event of Default a direction inconsistent with such request, within 60 days after such notice, requestandoffer.

However,theselimitationsdonotapplytoasuitinstitutedbytheholderofaDebtSecurityfortheenforcementofpaymentofprincipaloforinterestonsuchDebtSecurityonoraftertheapplicableduedateofsuchpayment.

WewillberequiredtofurnishtotheTrusteeannuallyanofficers'certificateastotheperformanceofcertainofourobligationsundertheIndentureandastoanydefaultinsuchperformance.

Defeasance

Whenweusetheterm"defeasance",wemeandischargefromsomeorallofourobligationsundertheIndenturewithrespecttoDebtSecuritiesofaparticularseries.If wedeposit withtheTrusteesufficient cashorgovernmentsecurities topaytheprincipal, interest, anypremiumandanyothersumsduetothestatedmaturityoraredemptiondateoftheDebtSecuritiesofaparticularseries,thenatouroption:

• We will be discharged from our obligations with respect to the Debt Securities of such series with certain exceptions, and the holders of the DebtSecuritiesoftheaffectedserieswillnotbeentitledtothebenefitsoftheIndentureexceptforregistrationoftransferandexchangeofDebtSecuritiesandreplacementoflost,stolenormutilatedDebtSecuritiesandcertainotherlimitedrights.Suchholdersmaylookonlytosuchdepositedfundsorobligationsforpayment;or

• WewillnolongerbeunderanyobligationtocomplywithcertaincovenantsundertheIndenture,andcertainEventsofDefaultwillnolongerapplytous.

ToexercisedefeasancewealsomustdelivertotheTrustee:

• anopinionofU.S.counseltotheeffectthatthedepositandrelateddefeasancewouldnotcausetheholdersoftheDebtSecuritiesoftheapplicableseriestorecognizeincome,gainorlossforU.S.federalincometaxpurposesandthatholdersoftheDebtSecuritiesofthatserieswillbesubjecttoU.S.federalincometaxonthesameamounts,inthesamemannerandatthesametimesaswouldhavebeenthecaseifsuchdefeasancehadnotoccurred;and

• anopinionofCanadiancounselorarulingfromCanadaRevenueAgencythattherewouldbenosuchrecognitionofincome,gainorlossforCanadianfederalorprovincialtaxpurposesandthatholdersoftheDebtSecuritiesofsuchserieswillbesubjecttoCanadianfederalandprovincialincometaxonthesameamounts,inthesamemannerandatthesametimesaswouldhavebeenthecaseifsuchdefeasancehadnotoccurred.

Inaddition, noEventofDefault withrespecttotheDebtSecuritiesoftheapplicableseriescanhaveoccurredandwecannotbeaninsolventpersonundertheBankruptcyandInsolvencyAct(Canada).InorderforU.S.counseltodelivertheopinionthatwouldallowustobedischargedfromallofourobligationsundertheDebtSecuritiesofanyseries,wemusthavereceivedfrom,ortheremusthavebeenpublishedby,theInternalRevenueServicearuling,ortheremusthavebeenachangeinlawsothatthedepositanddefeasancewouldnotcauseholdersoftheDebtSecuritiesofsuchseriestorecognizeincome,gainorlossforU.S.federalincometax

52

purposesandsothatsuchholderswouldbesubjecttoU.S.federalincometaxonthesameamounts,inthesamemannerandatthesametimeaswouldhavebeenthecaseifsuchdefeasancehadnotoccurred.

ModificationsandWaivers

WemaymodifyoramendtheIndenturewiththeconsentoftheholdersofamajorityinaggregateprincipalamountoftheoutstandingDebtSecuritiesofallseriesaffected by such modification or amendment provided, however, that we must receive consent from the holder of each outstanding Debt Security of such affectedseriesto:

• changethestatedmaturityoftheprincipaloforinterestonsuchoutstandingDebtSecurity;

• reducetheprincipalamountoforinterestonsuchoutstandingDebtSecurity;

• reducetheamountoftheprincipalpayableupontheaccelerationofthematurityofanoutstandingOriginalIssueDiscountSecurity;

• adverselyaffectanyrightofrepaymentattheoptionoftheholderofanyDebtSecurities;

• changetheplaceorcurrencyofpaymentsonsuchoutstandingDebtSecurity;

• impairtherighttoinstitutesuitfortheenforcementofanypaymentonorwithrespecttoanyDebtSecurity;

• adverselyaffectanyrighttoconvertorexchangetheDebtSecurityasprovidedpursuanttotheIndenture;

• reducethepercentageinprincipalamountofoutstandingDebtSecuritiesofsuchseriesfromwhichtheconsentofholdersisrequiredtomodifyoramendtheIndentureorwaivecompliancewithcertainprovisionsoftheIndentureorwaivecertaindefaults;or

• modify any provisions of the Indenture relating to modifying or amending the Indenture or waiving past defaults or covenants except as otherwisespecified.

TheholdersofamajorityinprincipalamountofDebtSecuritiesofanyseriesmaywaiveourcompliancewithcertainrestrictiveprovisionsoftheIndenturewithrespecttosuchseries.TheholdersofamajorityinprincipalamountofoutstandingDebtSecuritiesofallserieswithrespecttowhichanEventofDefaulthasoccurredmaywaiveanypastdefaultundertheIndenture,exceptadefaultinthepaymentoftheprincipalof,orintereston,anySecurityorinrespectofanyitemlistedaboverequiringtheconsentoftheholderofeachoutstandingDebtSecurityofsuchaffectedseries.

TheIndentureortheDebtSecuritiesmaybeamendedorsupplemented,withouttheconsentofanyholderofsuchDebtSecurities,inorderto,amongotherthings,cureanyambiguityorinconsistencyortomakeanychange,inanycase,thatdoesnothaveamateriallyadverseeffectontherightsofanyholderofsuchDebtSecurities.

ConsenttoJurisdictionandService

UndertheIndenture,wewillirrevocablyappointanauthorizedagentuponwhichprocessmaybeservedinanysuit,actionorproceedingarisingoutoforrelatingtotheIndentureandtheDebtSecuritiesandforactionsbroughtunderfederalorstatesecuritieslawsbroughtinanyfederalorstatecourtlocatedinTheCityofNewYork(hereinafterreferredtoasaNewYorkCourt),andwillsubmittosuchnon-exclusivejurisdiction.

GoverningLaw

TheIndentureandtheDebtSecuritieswillbegovernedbyandconstruedinaccordancewiththelawsoftheStateofNewYork.

EnforceabilityofJudgments

SincealloftheassetsoftheCompanyareoutsidetheUnitedStates,anyjudgmentobtainedintheUnitedStatesagainst uswouldneedtobesatisfiedbyseekingenforcement of such judgment in a court located outside of the United States from our assets. We have been advised by our Canadian counsel, Gowling WLG(Canada)LLP,thatthereisdoubtastotheenforceabilityinCanadabyacourt inoriginalactions, orinactionstoenforcejudgmentsofUnitedStatescourts, ofcivilliabilitiespredicateduponUnitedStatesfederalsecuritieslaws.

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TheTrustee

TheTrusteeundertheIndenturewillbenamedintheapplicableProspectusSupplement.

DESCRIPTIONOFWARRANTS

WemayissueWarrantstopurchaseCommonSharesorDebtSecurities.ThissectiondescribesthegeneraltermsthatwillapplytoanyWarrantsissuedpursuanttothisProspectus.

WarrantsmaybeofferedseparatelyortogetherwithotherSecuritiesandmaybeattachedtoorseparatefromanyotherSecurities.UnlesstheapplicableProspectusSupplementotherwiseindicates,eachseriesofWarrantswillbeissuedunderaseparatewarrantindenturetobeenteredintobetweenusandoneormorebanksortrustcompaniesactingasWarrantagent.TheWarrantagentwillactsolelyasouragentandwillnotassumearelationshipofagencywithanyholdersofWarrantcertificatesorbeneficialownersofWarrants.TheapplicableProspectusSupplementwillincludedetailsofthewarrantindentures,ifany,governingtheWarrantsbeingoffered.ThespecifictermsoftheWarrants,andtheextenttowhichthegeneraltermsdescribedinthissectionapplytothoseWarrants,willbesetoutintheapplicableProspectusSupplement.

Notwithstandingtheforegoing,wewillnotofferWarrantsforsaleseparatelytoanymemberofthepublicinCanadaunlesstheOfferingisinconnectionwithandformspartoftheconsiderationforanacquisitionormergertransaction.

TheProspectusSupplementrelatingtoanyWarrantsthatweofferwilldescribetheWarrantsandthespecifictermsrelatingtotheOffering.Thedescriptionwillinclude,whereapplicable:

• thedesignationandaggregatenumberofWarrants;

• thepriceatwhichtheWarrantswillbeoffered;

• thecurrencyorcurrenciesinwhichtheWarrantswillbeoffered;

• thedateonwhichtherighttoexercisetheWarrantswillcommenceandthedateonwhichtherightwillexpire;

• thedesignation,numberandtermsoftheCommonSharesorDebtSecurities,asapplicable,thatmaybepurchaseduponexerciseoftheWarrants,andtheproceduresthatwillresultintheadjustmentofthosenumbers;

• theexercisepriceoftheWarrants;

• the designation and terms of the Securities, if any, with which the Warrants will be offered, and the number of Warrants that will be offered witheachSecurity;

• if the Warrants are issued as a Unit with another Security, the date, if any, onand after which the Warrants andtheother Security will beseparatelytransferable;

• anyminimumormaximumamountofWarrantsthatmaybeexercisedatanyonetime;

• anyterms,proceduresandlimitationsrelatingtothetransferability,exchangeorexerciseoftheWarrants;

• whethertheWarrantswillbesubjecttoredemptionorcalland,ifso,thetermsofsuchredemptionorcallprovisions;

• materialUnitedStatesandCanadianfederalincometaxconsequencesofowningtheWarrants;and

• anyothermaterialtermsorconditionsoftheWarrants.

WarrantcertificateswillbeexchangeablefornewWarrantcertificatesofdifferentdenominationsattheofficeindicatedintheProspectusSupplement.Priortotheexercise of theirWarrants, holders of Warrants will not have any of the rights of holders of the Securities subject to the Warrants. We may amend the warrantindenture(s) andtheWarrants, withouttheconsentoftheholdersoftheWarrants, tocureanyambiguity, tocure, correct orsupplementanydefectiveorinconsistentprovisionorinanyothermannerthatwillnotprejudicetherightsoftheholdersofoutstandingWarrants,asagroup.

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DESCRIPTIONOFSUBSCRIPTIONRECEIPTS

WemayissueSubscriptionReceipts,separatelyortogether,withCommonShares,DebtSecuritiesorWarrants,asthecasemaybe.TheSubscriptionReceiptswillbeissuedunderasubscriptionreceiptagreement.ThissectiondescribesthegeneraltermsthatwillapplytoanySubscriptionReceiptsthatwemayofferpursuanttothisProspectus.

TheapplicableProspectusSupplementwillincludedetailsofthesubscriptionreceiptagreementcoveringtheSubscriptionReceiptsbeingoffered.WewillfileacopyofthesubscriptionreceiptagreementrelatingtoanOfferingwithsecuritiesregulatoryauthoritiesinCanadaandtheUnitedStatesafterwehaveenteredintoit.ThespecifictermsoftheSubscriptionReceipts,andtheextenttowhichthegeneraltermsdescribedinthissectionapplytothoseSubscriptionReceipts,willbesetforthintheapplicableProspectusSupplement.Thisdescriptionwillinclude,whereapplicable:

• thenumberofSubscriptionReceipts;

• thepriceatwhichtheSubscriptionReceiptswillbeofferedandwhetherthepriceispayableininstalments;

• conditionstotheexchangeofSubscriptionReceiptsintoCommonShares,DebtSecuritiesorWarrants,asthecasemaybe,andtheconsequencesofsuchconditionsnotbeingsatisfied;

• theproceduresfortheexchangeoftheSubscriptionReceiptsintoCommonShares,DebtSecuritiesorWarrants;

• thenumberofCommonSharesorWarrantsthatmaybeexchangeduponexerciseofeachSubscriptionReceipt;

• theaggregateprincipalamount,currencyorcurrencies,denominationsandtermsoftheseriesofDebtSecuritiesthatmaybeexchangeduponexerciseoftheSubscriptionReceipts;

• thedesignationandtermsofanyotherSecuritieswithwhichtheSubscriptionReceiptswillbeoffered,ifany,andthenumberofSubscriptionReceiptsthatwillbeofferedwitheachSecurity;

• thedatesorperiodsduringwhichtheSubscriptionReceiptsmaybeexchangedintoCommonShares,DebtSecuritiesorWarrants;

• termsapplicabletothegrossornetproceedsfromthesaleoftheSubscriptionReceiptsplusanyinterestearnedthereon;

• materialUnitedStatesandCanadianfederalincometaxconsequencesofowningtheSubscriptionReceipts;

• anyotherrights,privileges,restrictionsandconditionsattachingtotheSubscriptionReceipts;and

• anyothermaterialtermsandconditionsoftheSubscriptionReceipts.

SubscriptionReceiptcertificateswillbeexchangeablefornewSubscriptionReceiptcertificatesofdifferentdenominationsattheofficeindicatedintheProspectusSupplement.PriortotheexchangeoftheirSubscriptionReceipts,holdersofSubscriptionReceiptswillnothaveanyoftherightsofholdersoftheSecuritiessubjecttotheSubscriptionReceipts.

Under the subscription receipt agreement, a Canadian purchaser of Subscription Receipts will have a contractual right of rescission following the issuance ofCommonShares,DebtSecuritiesorWarrants,asthecasemaybe,tosuchpurchaser,entitlingthepurchasertoreceivetheamountpaidfortheSubscriptionReceiptsuponsurrenderoftheCommonShares,DebtSecuritiesorWarrants,asthecasemaybe,ifthisProspectus,theapplicableProspectusSupplement,andanyamendmentthereto,containsamisrepresentation,providedsuchremedyforrescissionisexercisedwithin180daysofthedatetheSubscriptionReceiptsareissued.Thisrightofrescissiondoes not extend to holders of Subscription Receipts whoacquire such Subscription Receipts froman initial purchaser, on the open market or otherwise, or to initialpurchaserswhoacquireSubscriptionReceiptsintheUnitedStatesorotherjurisdictionsoutsideCanada.

SuchsubscriptionreceiptagreementwillalsospecifythatwemayamendanysubscriptionreceiptagreementandtheSubscriptionReceipts,tocureanyambiguity,tocure,correctorsupplementanydefectiveor

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inconsistentprovisionorinanyothermannerthatwillnotmateriallyandadverselyaffecttheinterestsoftheholder.

DESCRIPTIONOFUNITS

WemayissueUnitscomprisedofoneormoreoftheotherSecuritiesdescribedinthisProspectusinanycombination.EachUnitwillbeissuedsothattheholderoftheUnit is alsotheholder of eachof theSecurities includedintheUnit. Thus, theholder of a Unit will havetherights andobligations of a holder of eachincludedSecurity.Theunitagreement,ifany,underwhichaUnitisissuedmayprovidethattheSecuritiesincludedintheUnitmaynotbeheldortransferredseparately,atanytimeoratanytimebeforeaspecifieddate.TheparticulartermsandprovisionsofUnitsofferedbyanyProspectusSupplement,andtheextenttowhichthegeneraltermsandprovisionsdescribedbelowmayapplythereto,willbedescribedintheProspectusSupplementfiledinrespectofsuchUnits.

CERTAINFEDERALINCOMETAXCONSIDERATIONS

TheapplicableProspectusSupplementwilldescribecertainCanadianandU.S.federalincometaxconsequencestoinvestors describedthereinofacquiringanySecuritiesofferedthereunder.

LEGALMATTERS

CertainlegalmattersrelatedtotheSecuritiesofferedbythisProspectuswillbepassedupononourbehalfbyGowlingWLG(Canada)LLPwithrespecttoCanadianlegalmattersandbyDorsey&WhitneyLLPwithrespecttoU.S.legalmatters.

TRANSFERAGENTANDREGISTRAR

The transfer agent and registrar for the Common Shares is Computershare Investor Services Inc. at its principal offices in the cities of Toronto, Ontario andVancouver,BritishColumbia.

INTERESTOFEXPERTS

Thetechnicalinformation,mineralreserveandmineralresourceestimatesandeconomicestimatesrelatingtoProject1,theWaterberg JVProject,theWaterbergExtensionProjectandtheCompany'sotherpropertiesincludedorincorporatedbyreferenceinthisProspectushasbeenincludedorincorporatedbyreferenceinrelianceonthereport,valuation,statementoropinionofthepersonsdescribedbelow.Thefollowingpersons,firmsandcompaniesarenamedashavingpreparedorcertifiedareport,valuation,statementoropinioninthisProspectus,eitherdirectlyorinadocumentincorporatedbyreference.

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Name Description

CharlesMuller(B.Sc.(Hons)Geology)Pri.Sci.Nat.,CJMConsulting,SouthAfrica,(Pty)Ltd.

Co-authoredtheProject1Report;authoredthetechnicalreportentitled"TechnicalReportonProject3ResourceCutEstimationoftheWesternBushveldJointVenture(WBJV)LocatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica"datedAugust31,2010;andauthoredtheApril2016WaterbergReport.

GertRoets(B.Eng.Mining),Pr.Eng.(ECSA),ofDRAProjectsSA(Pty)Ltd.

Co-authoredtheProject1Report.

GordonCunninghamB.Eng.(Chemical),Pr.Eng.(ECSA)ofTurnberryProjects(Pty)Ltd.

Co-authoredtheProject1Report.

R.MichaelJonesP.Eng.,PlatinumGroupMetalsLtd.

ThePresidentandChiefExecutiveOfficeroftheCompany.Thenon-independentqualifiedpersonforallscientificandtechnicalinformationincludedorincorporatedbyreferencehereinthatisnotattributedtooneoftheabove-namedpersons.

Noneoftheexpertsnamedintheforegoingsectionheld,atthetimetheypreparedorcertifiedsuchstatement,report,opinionorvaluation,receivedaftersuchtimeorwillreceiveanyregisteredorbeneficialinterest,directorindirect,inanysecuritiesorotherpropertyoftheCompanyoroneoftheCompany'sassociatesoraffiliatesother than R. Michael Jones, the President and Chief Executive Officer of the Company, who owns 272,920 Common Shares representing 0.3% of the issued andoutstandingCommonSharesasofthedateofthisProspectus.

Except as otherwise stated above, none of the aforementioned persons, and the directors, officers, employees and partners, as applicable, of each of theaforementionedpersonsreceivedorwillreceiveadirectorindirectinterestinanypropertyoftheCompanyoranyassociateoraffiliateoftheCompany.

Except as otherwise stated above, none of the aforementioned persons, nor any director, officer, employee, consultant or partner, as applicable, of theaforementionedpersonsiscurrentlyexpectedtobeelected,appointedoremployedasadirector,officeroremployeeoftheCompanyorofanyassociateoraffiliateoftheCompany.

INDEPENDENTAUDITOR

Ourauditors,PricewaterhouseCoopersLLP,CharteredProfessionalAccountants,ofVancouver,BritishColumbia,reportthattheyareindependentfromuswithinthe meaning of the Code of Professional Conduct of Chartered Professional Accountants of British Columbia, Canada, and within the meaning of theUnitedStatesSecuritiesActof1933,asamendedandtheapplicablerulesandregulationsthereunderadoptedbytheSEC.PricewaterhouseCoopersLLPisregisteredwiththePublicCompanyAccountingOversightBoard.

ENFORCEABILITYOFCIVILLIABILITIES

WeareacompanyorganizedandexistingundertheBusinessCorporationsAct(BritishColumbia).Amajorityofourdirectorsandofficers,andsomeoralloftheexpertsnamedinthisProspectus,areresidentsofCanadaorotherwiseresideoutsidetheUnitedStates,andallorasubstantialportionoftheirassets,andasubstantialportionofourassets,arelocatedoutsidetheUnitedStates.WehaveappointedanagentforserviceofprocessintheUnitedStates,butitmaybedifficultforholdersofSecuritieswhoresideintheUnitedStatestoeffectservicewithintheUnitedStatesuponthosedirectors,officersandexpertswhoarenotresidentsoftheUnitedStates.ItmayalsobedifficultforholdersofSecuritieswhoresideintheUnitedStatestorealizeintheUnitedStatesuponjudgmentsofcourtsoftheUnitedStatespredicateduponourcivilliabilityandthecivilliabilityofourdirectors,officersandexpertsundertheUnitedStatesfederalsecuritieslaws.AfinaljudgmentforaliquidatedsuminfavourofaprivatelitigantgrantedbyaUnitedStatescourtandpredicatedsolelyuponcivilliabilityunderUnitedStatesfederalsecuritieslawswould,subjecttocertainexceptionsidentifiedinthelawofindividualprovincesandterritoriesofCanada,likelybeenforceableinCanadaiftheUnitedStatescourtinwhichthejudgmentwasobtainedhadabasisforjurisdictioninthematterthatwouldberecognizedbythedomesticCanadiancourtforthesamepurposes.ThereisasignificantriskthatagivenCanadiancourtmaynothavejurisdictionormaydeclinejurisdictionoveraclaimbasedsolelyuponUnitedStatesfederalsecuritieslawonapplicationoftheconflictoflawsprinciplesoftheprovinceorterritoryinCanadainwhichtheclaimisbrought.

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TABLEOFCONTENTSPROSPECTUSSUPPLEMENTPROSPECTUSIMPORTANTNOTICEABOUTINFORMATIONINTHISPROSPECTUSSUPPLEMENTCAUTIONARYNOTEREGARDINGFORWARDLOOKINGSTATEMENTSCAUTIONARYNOTETOUNITEDSTATESINVESTORSRESERVEANDRESOURCEDISCLOSUREDESCRIPTIONOFEXISTINGINDEBTEDNESSDOCUMENTSINCORPORATEDBYREFERENCEADDITIONALINFORMATIONDOCUMENTSFILEDASPARTOFTHEREGISTRATIONSTATEMENTENFORCEABILITYOFCIVILLIABILITIESCURRENCYPRESENTATIONANDEXCHANGERATEINFORMATIONNOTICEREGARDINGNON-IFRSMEASURESPROSPECTUSSUPPLEMENTSUMMARYTHEOFFERINGRISKFACTORSCONSOLIDATEDCAPITALIZATIONUSEOFPROCEEDSPRIORSALESPRICERANGEANDTRADINGVOLUMECERTAINCANADIANFEDERALINCOMETAXCONSIDERATIONSCERTAINUNITEDSTATESFEDERALINCOMETAXCONSIDERATIONSDESCRIPTIONOFTHESECURITIESBEINGDISTRIBUTEDPLANOFDISTRIBUTIONLEGALMATTERSINTERESTOFEXPERTSINDEPENDENTAUDITORTRANSFERAGENTANDREGISTRARTABLEOFCONTENTSCAUTIONARYNOTETOUNITEDSTATESINVESTORSRESERVEANDRESOURCEDISCLOSURECAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTSCURRENCYPRESENTATIONANDEXCHANGERATEINFORMATIONNOTICEREGARDINGNON-IFRSMEASURESDOCUMENTSINCORPORATEDBYREFERENCEADDITIONALINFORMATIONDOCUMENTSFILEDASPARTOFTHEREGISTRATIONSTATEMENTBUSINESSOFTHECOMPANYFigure1:DrillholelocationandInterpretedGeologyoftheWaterbergProjectTable1FZoneMineralResourceDetailsTZoneWaterbergTotalRISKFACTORSUSEOFPROCEEDSEARNINGSCOVERAGERATIOCONSOLIDATEDCAPITALIZATIONDESCRIPTIONOFEXISTINGINDEBTEDNESSPLANOFDISTRIBUTIONPRIORSALESPRICERANGEANDTRADINGVOLUMEDIVIDENDPOLICYDESCRIPTIONOFCOMMONSHARESDESCRIPTIONOFDEBTSECURITIESDESCRIPTIONOFWARRANTSDESCRIPTIONOFSUBSCRIPTIONRECEIPTSDESCRIPTIONOFUNITSCERTAINFEDERALINCOMETAXCONSIDERATIONSLEGALMATTERSTRANSFERAGENTANDREGISTRARINTERESTOFEXPERTSINDEPENDENTAUDITORENFORCEABILITYOFCIVILLIABILITIES