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ANNUAL INFORMATION FORM OF PLATINUM GROUP METALS LTD.FOR YEAR ENDED: AUGUST 31, 2015

Annual Information Form  November 24, 2015

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TABLE OF CONTENTS

|                                                                                        | Page
|--------------------------------------------------------------------------------------- | ----
|PRELIMINARY
      NOTES                                                                 | 1   
|CORPORATE
      STRUCTURE                                                               | 5   
|GENERAL
      DEVELOPMENT OF THE BUSINESS                                               | 7   
|DESCRIPTION
      OF THE COMPANYS BUSINESS                                             | 11  
|MINERAL
      PROPERTY INTERESTS                                                        | 14  
|SOUTH
      AFRICAN REGULATORY FRAMEWORK                                                | 42  
|RISK
      FACTORS                                                                      | 57  
|DIVIDENDS
      AND DISTRIBUTIONS                                                       | 80  
|MARKET
      FOR SECURITIES                                                             | 80  
|ESCROWED
      SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTION ON TRANSFER | 81  
|DIRECTORS
      AND OFFICERS                                                            | 81  
|LEGAL
      PROCEEDINGS AND REGULATORY ACTIONS                                          | 84  
|INTEREST
      OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS                        | 84  
|TRANSFER
      AGENTS AND REGISTRARS                                                    | 85  
|MATERIAL
      CONTRACTS                                                                | 85  
|INTERESTS
      OF EXPERTS                                                              | 85  
|ADDITIONAL
      INFORMATION                                                            | 86  

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- 1 

Platinum Group Metals Ltd. 2015 Annual Information Form

PRELIMINARY NOTES

Date of Information

All information in this Annual Information Form (AIF)
of Platinum Group Metals Ltd. (Platinum Group or the Company)
is as of August 31, 2015 unless otherwise indicated.

List of Abbreviations and Glossary of Mining Terms

Schedule B attached hereto is a list of abbreviations and
glossary of mining terms used in this AIF.

Financial Information

Reference is made in this AIF to the consolidated audited
financial statements of the Company for the year ended August 31, 2015 (the
Financial Statements), a copy of which may be obtained online at
www.sedar.com.

All financial information in this AIF is prepared in accordance
with International Financial Reporting Standards (IFRS) as issued by
the International Accounting Standards Board.

Cautionary Note Regarding Forward-Looking Statements

This AIF and the documents incorporated by reference herein
contain forward-looking statements and forward-looking information within
the meaning of applicable U.S. and Canadian securities legislation
(collectively, Forward-Looking Statements). All statements, other than
statements of historical fact, that address activities, events or developments
that the Company believes, expects or anticipates will, may, could or might
occur in the future are Forward-Looking Statements. The words expect,
anticipate, estimate, may, could, might, will, would, should,
intend, believe, target, budget, plan, strategy, goals,
objectives, projection or the negative of any of these words and similar
expressions are intended to identify Forward-Looking Statements, although these
words may not be present in all Forward-Looking Statements. Forward-Looking
Statements included or incorporated by reference in this AIF include, without
limitation, statements with respect to:


    capital-raising activities and the adequacy of
    capital;
    revenue, cash flow and cost estimates and
    assumptions;
    production estimates and assumptions, including
    production rate, grade per tonne and smelter recovery;
    project economics;
    future metal prices and exchange rates;
    mineral reserve and mineral resource estimates;
    production timing; and
    potential changes in the ownership structures
of the Companys projects.


Forward-Looking Statements reflect the current expectations or
beliefs of the Company based on information currently available to the Company.
Forward-Looking Statements in respect of capital costs, operating costs,
production rate, grade per tonne and smelter recovery are based upon the
estimates in the technical reports described herein and ongoing cost estimation
work, and the Forward-Looking Statements in respect of metal prices and exchange
rates are based upon the three year trailing average prices and the assumptions
contained in such technical reports and ongoing estimates.

Forward-Looking Statements are subject to a number of risks and
uncertainties that may cause the actual events or results to differ materially
from those discussed in the Forward-Looking Statements, and even if events or
results discussed in the Forward-Looking Statements are realized or
substantially realized, there can be no assurance that they will have the
expected consequences to, or effects on, the Company. Factors that could cause
actual results or events to differ materially from current expectations include,
among other things:

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- 2 

Platinum Group Metals Ltd. 2015 Annual Information Form

| | uncertainty of production, development plans and cost
      estimates for the Project 1 platinum mine (Project 1) of what was
      formerly the Western Bushveld Joint Venture (the WBJV);                                                                                                                                      
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                      
| | failure of the Company or its joint venture partners to
      fund their pro-rata share of funding obligations for Project 1 or the
      Waterberg JV Project (defined below) and the Waterberg Extension Project
      (defined below) (together with the Waterberg JV Project, the Waterberg
      Projects);                   
|  |                                                                                                                                                                                                                                                                                                                                      
| | additional financing requirements;                                                                                                                                                                                                                                                                                                   
|  |                                                                                                                                                                                                                                                                                                                                      
| | the Companys history of losses and ability to continue
      as a going concern;                                                                                                                                                                                                                                                    
|  |                                                                                                                                                                                                                                                                                                                                      
| | the Companys negative cash flow;                                                                                                                                                                                                                                                                                                    
|  |                                                                                                                                                                                                                                                                                                                                      
| | the inability of the Company to make payments on its
      indebtedness, and restrictions on the Companys operations owing to its
      indebtedness;                                                                                                                                                                               
|  |                                                                                                                                                                                                                                                                                                                                      
| | no known mineral reserves on most of the Companys
      properties and delays in, or inability to achieve, planned commercial
      production;                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                                                      
| | completion of a pre-feasibility study for the Waterberg
      JV Project is subject to resource upgrade and economic analysis
      requirements;                                                                                                                                                                                    
|  |                                                                                                                                                                                                                                                                                                                                      
| | discrepancies between actual and estimated mineral
      reserves and mineral resources, between actual and estimated development
      and operating costs, between actual and estimated metallurgical recoveries
      and between estimated and actual production;                                                                
|  |                                                                                                                                                                                                                                                                                                                                      
| | fluctuations in the relative values of the Canadian
      Dollar as compared to the Rand and the U.S. Dollar;                                                                                                                                                                                                                        
|  |                                                                                                                                                                                                                                                                                                                                      
| | volatility in metals prices;                                                                                                                                                                                                                                                                                                         
|  |                                                                                                                                                                                                                                                                                                                                      
| | the inability of the Company to generate sufficient cash
      flow to make payment on its indebtedness under the Sprott Facility (as
      defined herein) or the LMM Facility (as defined herein);                                                                                                                                 
|  |                                                                                                                                                                                                                                                                                                                                      
| | the Companys pledge of its shares of Platinum Group
      Metals (RSA) (Proprietary) Limited (PTM RSA) to Sprott
      Resource Lending Partnership (Sprott) under the Sprott Facility
      and the subordinated pledge of its shares of PTM RSA to Liberty Metals
      & Mining Holdings, LLC (LMM) under the LMM Facility;
|  |                                                                                                                                                                                                                                                                                                                                      
| | as the Sprott Facility and the LMM Facility are secured,
      the Company could potentially lose its interest in Project 1, Project 3
      (as defined herein) and in the Waterberg Projects in the event of a
      default under the Sprott Facility or the LMM Facility or the LMM Facility;                                    
|  |                                                                                                                                                                                                                                                                                                                                      
| | difficulty enforcing certain judgments involving United
      States federal securities laws;                                                                                                                                                                                                                                        
|  |                                                                                                                                                                                                                                                                                                                                      
| | delays in the start-up of the Project 1 platinum mine,
      which could result in a default under the Sprott Facility or the LMM
      Facility;                                                                                                                                                                                    
|  |                                                                                                                                                                                                                                                                                                                                      
| | the ability of the Company to retain its key management
      employees and skilled and experienced personnel;                                                                                                                                                                                                                       
|  |                                                                                                                                                                                                                                                                                                                                      
| | conflicts of interest;                                                                                                                                                                                                                                                                                                               

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- 3 

Platinum Group Metals Ltd. 2015 Annual Information Form

| | any disputes or disagreements with the Companys joint
      venture partners;                                                                                                                                                                                                                                                                                                                                                                                      
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | the costs of increasing Black Economic Empowerment
      (BEE) in the Companys mining and prospecting operations;                                                                                                                                                                                                                                                                                                                                                
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | certain potential adverse Canadian tax consequences for
      foreign-controlled Canadian companies that acquire common shares of the
      Company;                                                                                                                                                                                                                                                                                                                
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | the Companys designation as a passive foreign
      investment company and potential adverse U.S. federal income tax
      consequences for U.S. shareholders;                                                                                                                                                                                                                                                                                                   
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | actual or alleged breaches of governance processes or
      instances of fraud, bribery or corruption;                                                                                                                                                                                                                                                                                                                                                              
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | litigation or other legal or administrative proceedings
      brought against the Company;                                                                                                                                                                                                                                                                                                                                                                          
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | exploration, development and mining risks and the
      inherently dangerous nature of the mining industry, including
      environmental hazards, industrial accidents, unusual or unexpected
      formations, safety stoppages (whether voluntary or regulatory), pressures,
      mine collapses, cave-ins or flooding and the risk of inadequate insurance
      or inability to obtain insurance to cover these risks and other risks and
      uncertainties;
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | property and mineral title risks including defective
      title to mineral claims or property;                                                                                                                                                                                                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | changes in national and local government legislation,
      taxation, controls, regulations and political or economic developments in
      Canada, South Africa or other countries in which the Company does or may
      carry out business in the future;                                                                                                                                                                                                        
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | equipment shortages and the ability of the Company to
      acquire the necessary access rights and infrastructure for its mineral
      properties;                                                                                                                                                                                                                                                                                                                
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | environmental regulations and the ability to obtain and
      maintain necessary permits, including environmental authorizations;                                                                                                                                                                                                                                                                                                                                   
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | extreme competition in the mineral exploration industry;                                                                                                                                                                                                                                                                                                                                                                                                            
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | risks of doing business in South Africa, including but
      not limited to labour, economic and political instability, potential
      changes to legislation and interruptions or shortages in the supply of
      electricity or water;                                                                                                                                                                                                                          
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | no expectation of paying dividends, share price
      volatility, global financial conditions and dilution due to future
      issuances of equity securities; and                                                                                                                                                                                                                                                                                                  
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | the other risks disclosed under the heading Risk
      Factors in this AIF.                                                                                                                                                                                                                                                                                                                                                                                       

These factors should be considered carefully, and investors
should not place undue reliance on the Companys Forward-Looking Statements. In
addition, although the Company has attempted to identify important factors that
could cause actual actions or results to differ materially from those described
in Forward-Looking Statements, there may be other factors that cause actions or
results not to be as anticipated, estimated or intended.

The mineral resource and mineral reserve figures referred to in
this AIF and the documents incorporated herein by reference are estimates and no
assurances can be given that the indicated levels of platinum, palladium,
rhodium and gold will be produced. Such estimates are expressions of judgment
based on knowledge, mining experience, analysis of drilling results and industry
practices. Valid estimates made at a given time may significantly change when
new information becomes available. By their nature, mineral resource and mineral
reserve estimates are imprecise and depend, to a certain extent, upon
statistical inferences which may ultimately prove unreliable. Any
inaccuracy or future reduction in such estimates could have a material adverse
impact on the Company.

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- 4 

Platinum Group Metals Ltd. 2015 Annual Information Form

Any Forward-Looking Statement speaks only as of the date on
which it is made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any Forward-Looking
Statement, whether as a result of new information, future events or results or
otherwise.

Reserve and Mineral Resource Disclosure

Due to the uncertainty that may be attached to inferred mineral
resource estimates, it cannot be assumed that all or any part of an inferred
mineral resource estimate will be upgraded to an indicated or measured mineral
resource estimate as a result of continued exploration. Confidence in an
inferred mineral resource estimate is insufficient to allow meaningful
application of the technical and economic parameters to enable an evaluation of
economic viability sufficient for public disclosure, except in certain limited
circumstances set out in National Instrument 43-101  Standards of Disclosure
for Mineral Projects (NI 43-101). Inferred mineral resource
estimates are excluded from estimates forming the basis of a feasibility study.

Mineral resources that are not mineral reserves do not have
demonstrated economic viability.

Cautionary Note to U.S. Investors

Estimates of mineralization and other technical information
included or incorporated by reference herein have been prepared in accordance
with NI 43-101. The definitions of proven and probable reserves used in NI
43-101 differ from the definitions in SEC Industry Guide 7 of the United States
Securities and Exchange Commission (the SEC). Under SEC Industry Guide
7 standards, a final or bankable feasibility study is required to report
reserves, the three-year historical average price is used in any reserve or cash
flow analysis to designate reserves and the primary environmental analysis or
report must be filed with the appropriate governmental authority. As a result,
the reserves reported by the Company in accordance with NI 43-101 may not
qualify as reserves under SEC standards. In addition, the terms mineral
resource, measured mineral resource, indicated mineral resource and
inferred mineral resource are defined in and required to be disclosed by NI
43-101; however, these terms are not defined terms under SEC Industry Guide 7
and normally are not permitted to be used in reports and registration statements
filed with the SEC. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Investors are cautioned not to assume that any
part or all of the mineral deposits in these categories will ever be converted
into reserves. Inferred mineral resources have a great amount of uncertainty
as to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category. Under Canadian securities
laws, estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. See Reserve and
Resource Disclosure. Additionally, disclosure of contained ounces in a
resource is permitted disclosure under Canadian securities laws; however, the
SEC normally only permits issuers to report mineralization that does not
constitute reserves by SEC standards as in place tonnage and grade without
reference to unit measurements. Accordingly, information contained in this AIF
and the documents incorporated by reference herein containing descriptions of
the Companys mineral deposits may not be comparable to similar information made
public by U.S. companies subject to the reporting and disclosure requirements of
United States federal securities laws and the rules and regulations thereunder.

Currency Presentation and Exchange Rate Information

Unless stated otherwise or the context otherwise requires, all
references to dollar amounts in this AIF are references to Canadian Dollars. The
Companys accounts are maintained in Canadian Dollars. All references to U.S.
Dollars or to US$ are to United States Dollars. All references to R or to
Rand are to South African Rand.

The following table sets forth the rate of exchange for the
U.S. Dollar expressed in Canadian Dollars in effect at the end of each of the
indicated periods, the average of the exchange rates in effect on the last day
of each month during each of the periods indicated, and the high and low
exchange rates during each of the periods indicated based on the noon rate of exchange as
reported by the Bank of Canada for the conversion of U.S. Dollars into Canadian
Dollars.

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- 5 

Platinum Group Metals Ltd. 2015 Annual Information Form

U.S.
      Dollar to Canadian Dollars
    Year Ended August 312015
    2014
    2013Rate at end of period
    $1.3223
    $1.0858
    $1.0553Average rate for period
    $1.2102
    $1.0792
    $1.0111High for period
    $1.3303
    $1.1251
    $1.0576Low for period
    $1.0863
    $1.0237
    $0.9710


The noon rate of exchange on November 24, 2015 as reported by
the Bank of Canada for the conversion of U.S. Dollars into Canadian Dollars was
US$1.00 equals $1.3308.

The following table sets forth the rate of exchange for the
South African Rand expressed in Canadian Dollars in effect at the end of each of
the indicated periods, the average of the exchange rates in effect on the last
day of each month during each of the periods indicated, and the high and low
exchange rates during each of the periods indicated based on the noon rate of
exchange as reported by the Bank of Canada for the conversion of South African
Rand into Canadian Dollars.

South
      African Rand to Canadian Dollars
    Year Ended August
      312015
    2014
    2013Rate
      at end of period
    $0.0998
    $0.1019
    $0.1029Average rate for period
    $0.1026
    $0.1026
    $0.1108High
      for period
    $0.1102
    $0.1067
    $0.1200Low
      for period
    $0.0986
    $0.0984
    $0.1003


The noon rate of exchange on November 24, 2015 as reported by
the Bank of Canada for the conversion of South African Rand into Canadian
Dollars was R1 equals $0.0950.

Terms used and not defined in this AIF that are defined in
National Instrument 51-102 - Continuous Disclosure Obligations (NI
51-102) shall bear that definition. Other definitions are set out in
National Instrument 14-101 - Definitions.

Notice Regarding Non-GAAP Measures

This AIF may include certain terms or performance measures
commonly used in the mining industry that are not defined under IFRS as issued
by the International Accounting Standards Board, which is incorporated in the
Handbook of the Canadian Institute of Chartered Accountants, such as cash costs,
all-in sustaining costs and total costs per payable ounce, realized price per
ounce, adjusted net income (loss) before tax, adjusted net income (loss) and
adjusted basic earnings (loss) per share. We believe that, in addition to
conventional measures prepared in accordance with IFRS, certain investors use
this information to evaluate our performance. The data presented is intended to
provide additional information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with IFRS. These
non-GAAP measures should be read in conjunction with our financial statements.

CORPORATE STRUCTURE

The Company was amalgamated on February 18, 2002 under the
Business Corporations Act (British Columbia) (BCBCA) pursuant to
an order of the Supreme Court of British Columbia approving an amalgamation
between Platinum Group Metals Ltd. and New Millennium Metals Corporation. On
January 25, 2005, the Company was transitioned under the BCBCA.

On February 22, 2005, the Companys shareholders passed a
special resolution to: (a) amend the authorized share capital from 1,000,000,000
common shares without par value to an unlimited number of common shares without par value; (b) remove the Pre-existing
Company Provisions; and (c) adopt new articles. On February 27, 2014, the
shareholders passed an ordinary resolution approving the advance notice policy
of the Company and an alteration to the Companys Articles to include provisions
requiring advance notice of director nominees from shareholders, as described in
the Companys information circular for its annual meeting of shareholders held
on February 27, 2014.

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- 6 

Platinum Group Metals Ltd. 2015 Annual Information Form

The Companys head office is located at:

788  550 Burrard StreetVancouver,
British ColumbiaCanada, V6C 2B5

The Companys registered office is located at:

Gowling Lafleur Henderson LLP 2300
- 550 Burrard Street Vancouver, British Columbia Canada, V6C 2B5

The Company is a platinum-focused exploration and development
company conducting work primarily on mineral properties it has staked or
acquired by way of option agreements or applications in the Republic of South
Africa and in Canada.

Platinum Group Metals Ltd. and its Principal Subsidiaries

The Companys material subsidiaries are one wholly-owned
company, one majority-owned company and a 49.9% holding in a third company, all
of which are incorporated under the company laws of the Republic of South
Africa.



The Company conducts its South African exploration and
development work through its wholly-owned direct subsidiary, Platinum Group
Metals (RSA) (Proprietary) Limited (PTM RSA). PTM RSA holds the
Companys interests in Project 1 and Project 3 (Project 3) of what was
formerly the WBJV through its 82.9% holdings in Maseve Investments 11 (Pty)
Limited (Maseve). Wesizwe Platinum Ltd. (Wesizwe), through its
subsidiary Africa Wide Mineral Prospecting and Exploration (Pty) Ltd.
(Africa Wide) has a 17.1% ownership interest in Maseve. See Mineral
Property Interests  Projects 1 and 3 of the Western Bushveld Complex below.

On August 20, 2014, an arbitrator ruled that Africa Wides
shareholding in Maseve would be reduced to 21.2766% as a result of a failure to
fund its US$21.8 million share of a unanimously approved Project 1 cash call by
the Maseve board of directors. This was the first cash call ever presented to
Africa Wide for their share of Project 1 development costs. On March 3, 2014,
Africa Wide informed the Company that it would not be funding its US$21.52
million share of a second unanimously approved cash call. As a result, Africa
Wides ownership of Maseve has been further diluted to approximately 17.1% based
on the dilution formula in the Maseve Shareholders Agreement among PTM RSA,
Africa Wide and Maseve (the Maseve Shareholders Agreement), as confirmed by
the arbitrator. Likewise, the Companys ownership in Maseve has increased to
approximately 82.9% . See Africa Wide Dilution below for more information.

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- 7 

Platinum Group Metals Ltd. 2015 Annual Information Form

The Company also owns 49.9% of Mnombo Wethu Consultants (Pty)
Limited (Mnombo), a BEE company, which holds a 26% participating
interest in the Waterberg Projects.

The Company holds 100% of the shares of Platinum Group Metals
(Barbados) Ltd., a dormant holding company incorporated under the laws of
Barbados originally set up to hold and manage potential PGM opportunities.

PTM RSA previously held 100% of the shares of Wesplats Holding
(Proprietary) Limited, a holding company incorporated under the laws of South
Africa and originally set up to acquire surface rights. Wesplats was voluntarily
wound up and officially deregistered by the Companies and Intellectual Property
Commission (CIPC) of South Africa on September 16, 2015.

The Company previously held a 37% interest in Wildebeest
Platinum (Pty) Limited, a company set up to hold prospecting rights. Wildebeest
was voluntarily wound up and officially deregistered by the CIPC on June 30,
2015.

GENERAL DEVELOPMENT OF THE BUSINESS

Since its formation in 2002, the Company has been engaged in
the acquisition, exploration and development of platinum and palladium
properties. The Company currently holds interests in platinum properties in the
Western and Northern Limbs of the Bushveld Complex in South Africa and in
Canada. The Companys business is conducted primarily in South Africa, and to a
lesser extent, in Ontario, the Northwest Territories and Newfoundland and
Labrador in Canada.

At present the Company is focused on the commissioning of the
Project 1 platinum mine, estimated to occur within December, 2015. Full
commercial production is estimated to occur after a two-year ramp-up period
subsequent to the commissioning of the plant.

The Company is also advancing the exploration and assessment of
the Waterberg Projects. A pre-feasibility study for the Waterberg Projects, now
underway, will target a large, thick PGM resource with the objective to model a
large-scale, fully-mechanized mine. A substantial portion of the Waterberg
Projects prospecting area remains unexplored.

Recent Developments

US$40 million working capital facility draw downOn November 20, 2015, the Company drew down US$40 million working capital
facility pursuant to a credit agreement (the Sprott Credit Agreement)
with Sprott and others executed on February 16, 2015 (the Sprott
Facility). See details below. Pursuant to the terms of the Sprott Credit
Agreement, the Company paid a draw down fee of US$800,000 (being 2% of the
amount being drawn down under the Facility) paid in 3,485,839 common shares of
the Company.

Additional US$40 million loan facility  On November 20,
2015, the Company also drew down US$40 million from a loan facility (the LMM
Facility) LMM Facility pursuant to a credit agreement (the LMM Credit
Agreement) entered into on November 2, 2015 with its largest shareholder,
LMM, a subsidiary of Liberty Mutual Insurance. Pursuant to the terms of the LMM
Credit Agreement, the Company paid a draw down fee of US$800,000 to LMM, being
2% of the amount being drawn down under the LMM Facility, paid in 3,485,839
common shares of the Company.

The interest rate on the LMM Facility is 9.5% over LIBOR.
Interest payments on the LMM Facility will be accrued and capitalized until
December 31, 2016, and then paid to LMM quarterly thereafter. The first 20% of
principal is to be repaid on December 31, 2018 and then in tranches of 10% of
the principal at the end of each calendar quarter beginning on March 31, 2019 and
for each of the next 7 quarters of the LMM Facility.

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- 8 

Platinum Group Metals Ltd. 2015 Annual Information Form

Pursuant to the LMM Credit Agreement the Company entered into a
life of mine Production Payment Agreement (PPA) with LMM. Under the
PPA, the Company agreed to pay to LMM a production payment of 1.5% of net
proceeds received on concentrate sales or other minerals from the Project 1
platinum and palladium mine (the Production Payment). The Company has
the right, but not the obligation, to buy back 1% of the 1.5% Production Payment
for US$17.5 million until January 1, 2019 and then for US$20 million until
December 31, 2021.

If the Company exercises its right to buy back a portion of the
production payment, then the LMM Facility payback will be deferred, with 10% of
the principal and capitalized interest to be repaid on each of September 30,
2019 and December 31, 2019, followed by 20% of principal and capitalized
interest to be repaid on each of March 31, 2020, June 30, 2020, September 30,
2020 and December 31, 2020.

Sprott, in first lien position, agreed to amend its original
terms and enter into an inter-creditor agreement to allow for the second lien
position for LMM. The Sprott Facility is to be repaid during 2017. Events of
default under the Sprott Facility are also treated as events of default under
the LMM Facility, and vice versa. Under the LMM Facility, the Company has
provided a subordinated pledge of 100% of the shares of PTM RSA. The LMM
Facility is subordinated to the Sprott Facility and scheduled to be repaid after
Sprott. An event of default under the PPA triggers the payment of a termination
fee based on a net present value of the Production Payments to be made under the
PPA at a 5% discount rate. An event of default under the Sprott Facility or the
LMM Facility is also treated as an event of default under the PPA. The Company
holds the right to terminate the PPA upon payment of the termination fee.

The PPA is secured with the second lien position of the LMM
Facility until it is repaid. The PPA will be acknowledged in any subsequent debt
arrangement of the Company. The Company has a right to refinance the Sprott
Facility or the LMM Facility, subject to certain rights granted to LMM under the
PPA.

Three Year History

The following is a summary of the Companys noteworthy
developments over the last three fiscal years.

Fiscal 2013 Developments

Initial Independent Mineral Resource Estimate for Waterberg- On September 4, 2012, the Company announced an initial 3E inferred mineral
resource estimate for the newly discovered Waterberg deposit.

Off-take Agreement for Project 1 - On September 11,
2012, Rustenburg Platinum Mines Limited (RPM), a wholly owned
subsidiary of Anglo American Platinum Limited (Amplats), exercised its
first right of refusal to purchase the off-take of concentrate from the Project
1 platinum mine. Following a competitive tender process, in July 2012 Platinum
Group received terms for smelter off-take for Project 1 that were attractive to
the venture and Anglos 60-day right of refusal was triggered. A binding life of
mine concentrate off-take agreement with RPM was executed in April 2013.

$180 Million Public Offering - On January 4, 2013, the
Company closed a previously announced public offering of common shares. The
Company issued 225 million common shares at a price of $0.80 per Common Share,
for aggregate gross proceeds of $180 million. BMO Capital Markets, RBC Capital
Markets and GMP Securities L.P. acted as joint bookrunners on the offering and
Raymond James Ltd., Stifel Nicolaus Canada Inc., CIBC and Cormark Securities
Inc. acted as co-managers on the Offering. The intended use of the net proceeds
from the offering were to partially fund its 74% share of Phase 2 development
costs at the Project 1 platinum mine, its 63% obligation towards ongoing
exploration and engineering work on the Waterberg project and for general
working capital purposes. The common shares were offered by way of a short form
prospectus filed in all provinces of Canada, and in the United States by way of
a registration statement filed with the SEC.

Second Independent Mineral Resource Estimate for Waterberg- On February 1, 2013, the Company announced an updated 3E inferred mineral
resource estimate for the Waterberg JV Project.

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- 9 

Platinum Group Metals Ltd. 2015 Annual Information Form

Fiscal 2014 Developments

Third Independent Mineral Resource Estimate for WaterbergOn September 3, 2013, the Company announced an updated independent
inferred mineral resource estimate for the Waterberg JV Project.

Africa Wide Dilution - On October 18, 2013, Africa Wide
informed the Company that it would not be funding its approximate US$21.8
million share of a project budget and cash call for Project 1 that had been
unanimously approved by the Maseve board of directors. As a result of Africa
Wides failure to fund its share of the initial cash call, the Company entered
into arbitration proceedings with Africa Wide to determine the extent of the
dilution of Africa Wides ownership in Maseve (the Africa Wide
Dilution), and therefore Project 1 and Project 3, in accordance with the
terms of the Maseve Shareholders Agreement. The Company also delayed certain
expenditures on Project 1 from October 2013 to January 2014 so that the Company
could raise additional equity financing. On August 20, 2014, an arbitrator
determined that Africa Wides shareholding in Maseve would be reduced to
21.2766% . As a result of Africa Wides decision not to fund its US$21.52
million share of a second cash call delivered in February 2014, Africa Wides
ownership in Maseve was further diluted to approximately 17.1% based on the
dilution formula in the Maseve Shareholders Agreement, as confirmed by the
arbitration. Likewise, the Companys ownership in Maseve has therefore increased
to approximately 82.9% . The Company expects that it will be required to fund
100% of Maseves cash requirements and since 2014 has loaned Maseve such
required amounts.

Project 1 New Lender Mandate  On November 11, 2013, the
Company entered into a new mandate letter with three commercial banking groups
to arrange for up to a US$195 million project finance loan to develop the
Project 1 platinum mine. The new mandate was to build on work and due diligence
conducted up until October 18, 2013 under an earlier mandate. The proposed
revised facility agreement would not rely on Wesizwe or Africa Wide to provide
any covenants, guarantees or consents. See "Termination of Project 1 New Lender
Mandate in Fiscal 2015 Developments below.

$175 Million Public Offering  On December 31, 2013, the
Company closed a previously announced public offering of common shares. The
Company issued 148.5 million common shares at a price of $1.18 per share, for
aggregate gross proceeds of $175.23 million. BMO Capital Markets and GMP
Securities L.P. led a team of underwriters which included CIBC World Markets
Inc., RBC Dominion Securities Inc., Barclays Capital Canada Inc., PI Financial
Corp., Raymond James Ltd. and Dundee Securities Ltd. which had agreed to buy the
shares on a bought deal basis. The Company intended to use the net proceeds of
the offering to partially fund Phase 2 development at the Project 1 platinum
mine, to fund the Companys portion of ongoing exploration and engineering work
on the Waterberg JV Project, to fund the Companys portion of ongoing
exploration work on the Waterberg Extension Project and for general working
capital purposes. The common shares were offered by way of a short form
prospectus filed in all provinces of Canada, except for Quebec, and in the
United States by way of a registration statement filed with the SEC.

Waterberg PEAOn February 14, 2014, the
Companyannounced positive results from an independent Preliminary
Economic Assessment on the Waterberg JV Project. The project was advanced to the
pre-feasibility stage. As disclosed in the Companys press release dated October
21, 2014, the Preliminary Economic Assessment is outdated and no longer valid.
Accordingly, the Preliminary Economic Assessment should not be relied upon.

Fourth Independent Mineral Resource Estimate for Waterberg On June 11, 2014, the Company announced an increase in the estimated
inferred mineral resource at the Waterberg JV Project and adjacent Waterberg
Extension Project.

Fiscal 2015 Developments

Termination of Project 1 New Lender Mandate - On
November 3, 2014, the Company announced the termination of the mandate for a
US$195 million term loan facility previously entered into with a syndicate of
lenders and announced on November 11, 2013.

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Platinum Group Metals Ltd. 2015 Annual Information Form

Sprott US$40 Million Senior Secured Loan Facility - On
December 9, 2014, the Company announced that the Company had entered into a term
sheet with Sprott for the Sprott Facility in the amount of US$40 million at an
interest rate of LIBOR plus 8.50%, compounded and payable monthly. Later, on
February 16, 2015, the Company entered into the Sprott Credit Agreement with
regard to the Sprott Facility. The Company plans to use the proceeds of the
Sprott Facility for the development and operation of the Project 1 platinum mine
and for general working capital purposes. The Sprott Facility matures on
December 31, 2017.

The Company made or will be obligated to make certain payments
to Sprott, including (a) a bonus payment made concurrently with execution and
delivery of the Sprott Credit Agreement in the amount of US$1,500,000, being
3.75% of the principal amount of the Sprott Facility, payable in 2,830,188
common shares of the Company issued on February 16, 2015 at a deemed price per
share equal to US$0.53 per common share of the Company; (b) a draw down payment
to Sprott of US$800,000, being equal to 2% of the amount being drawn down under
the Sprott Facility, payable in 3,485,839 common shares issued on November 20,
2015 at a deemed price equal to US$0.23 per common share of the Company; (c) a
structuring fee comprised of a cash payment in the amount of US$100,000, paid
concurrently with the execution and delivery of the term sheet for the Sprott
Facility; and (d) a standby fee payable monthly until December 31, 2015 in cash
equal to 4% per annum of the un-advanced principal amount of the Facility.

US$113.8 Million Public Offering  On December 31, 2014,
the Company announced the closing of a previously announced public offering of
common shares (the Offered Shares). The Company issued 214.8 million
Offered Shares at a price of US$0.53 per Offered Share, for aggregate gross
proceeds of US$113.844 million. The Offered Shares issued include 7.2 million
common shares issued pursuant to the exercise of an over-allotment option. BMO
Capital Markets and GMP Securities L.P. acted as the underwriters and agreed to
buy the Offered Shares on a bought deal basis. The net proceeds of the offering
were intended to fund Phase 2 development at the Project 1 platinum mine. The
Shares were offered by way of a short form prospectus filed in all provinces of
Canada, except for Quebec, and were offered in the United States pursuant to a
registration statement filed under the Canada/U.S. multi-jurisdictional
disclosure system.

Waterberg Unitization On May 26, 2015, the Company
announced that the Japan Oil, Gas and Metals National Corporation
(JOGMEC) had committed to fund the next US$20 million of joint venture
funding at Waterberg. In conjunction with JOGMECs firm funding commitment, the
Company, JOGMEC and empowerment partner Mnombo agreed to consolidate the
Waterberg JV Project and the Waterberg Extension Project into one unitized
project area, which is referred to as the Waterberg Projects. The resulting new
ownership interests in the Waterberg Projects on unitization be as follows:

| |  | Platinum Group: | 45.65%(1)
| | - | --------------- | ---------
| |   |                 |          
| |  | JOGMEC:         | 28.35%   
| |   |                 |          
| |  | Mnombo:         | 26.00%   

| | (1) | Platinum Group indirectly owns an additional 12.97%
      interest in the Waterberg Projects through its 49.9% interest in Mnombo,
      for a total 58.62% interest in the Waterberg
Projects.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Platinum Group will increase its direct and indirect effective
interest in the old Waterberg JV Project area from 49.98% currently to 58.62% .
Platinum Group will decrease its effective interest in the old Waterberg
Extension Project from 87% to 58.62% . JOGMEC will decrease its interest in the
old Waterberg Joint Venture from 37% to 28.35% and increase its interest in the
old Waterberg Extension Project from zero to 28.35% . See further details below.

Project 1 Mineral Resources and Reserves Update  On
July 15, 2015, the Company announced that mineral resources and mineral reserves
for Project 1 had been updated to account for the planned increased use of
mechanized mining methods where the deposit is estimated to be thicker and
accessible from nearby completed underground development. The updated mineral
reserves were calculated using current three-year trailing metal prices and
current cost estimates to July 2015, updated detailed surface and underground drilling results and a revised mine plan. See
details at Summary of Mineral Reserves and Mineral Resource Estimates below.

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Platinum Group Metals Ltd. 2015 Annual Information Form

Fifth Independent Mineral Resource Estimate for Waterberg On July 22, 2015 the Company reported an updated independent platinum,
palladium and gold (collectively referred to as 3E) resource estimate
for the Waterberg Projects, effective July 20, 2015. Mineral resources at
Waterberg on a 100% project basis increased to an estimated 25.64 million ounces
3E in the Inferred category plus 12.61 million ounces 3E in the Indicated
category, from 29 million ounces of platinum, palladium, rhodium and gold,
(collectively referred to as 4E) Inferred in June 2014. See details at
Summary of Mineral Reserves and Mineral Resource Estimates below.

Significant Acquisitions

The Company has not made any significant acquisitions during
its most recently completed financial year for which disclosure is required
under Part 8 of NI 51-102.

DESCRIPTION OF THE COMPANYS BUSINESS

General

The Company is a platinum-focused exploration, development and
operating company conducting work primarily on mineral properties it has staked
or acquired by way of option agreements or applications in the Republic of South
Africa and in Canada.

Currently, the Company considers Project 1 platinum mine and
the Waterberg Projects to be material mineral properties. The Company also holds
interests in various early-stage exploration projects located in Canada and in
South Africa, including Project 3, which is located adjacent to and to the north
of Project 1. The Company continues to evaluate exploration opportunities both
on currently owned properties and on new prospects.

Principal Products

Our principal product once production commences at the Project
1 platinum mine will be a PGM bearing concentrate. The concentrate will contain
certain amounts of eight elements payable to the Companys account comprised of
platinum, palladium, rhodium, gold, ruthenium, iridium, copper and nickel. All
of the PGM bearing concentrate produced at Project 1 is to be delivered and sold
to Amplats in accordance with the terms of a life-of-mine off-take agreement for
Project 1 with RPM. The off-take agreement followed a competitive tender process
and the exercise of a right of first refusal by RPM. The concentrate from
Project 1 is planned for delivery to the RPM Waterval smelter, approximately 40
km away by truck.

Specialized Skill and Knowledge

Various aspects of our business require specialized skills and
knowledge, including the areas of geology, engineering, operations, drilling,
metallurgy, permitting, logistical planning and implementation of exploration
programs as well as legal compliance, finance and accounting. We face
competition for qualified personnel with these specialized skills and knowledge,
which may increase our costs of operations or result in delays.

Due to the requirement for specialized skills and knowledge,
the Company has contracted the services of an experienced and professional HR
company, Requisite Business Solutions (Pty) Ltd. (RBS), to provide site
and office human resources, organization design and planning services to Project
1. RBS specializes in the mining industry, and their team of professional
engineers, psychologists and human resources practitioners has an intimate
understanding of organization design & development, including knowledge of
the applied legislation, mining techniques and associated labour practices. RBS
has assisted the Company in completing a Local Skills Assessment in six
communities to help identify candidates for leadership and staff positions as
per Maseves Social and Labour Plan (the Social andLabour Plan) andhuman resources development
obligations. Community members have been hired and more are currently undergoing
medical examinations, training and induction.

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- 12 

Platinum Group Metals Ltd. 2015 Annual Information Form

Social or Environmental Policies

Corporate Social Responsibility

Being a responsible corporate citizen means protecting the
natural environment associated with our business activities, providing a safe
workplace for our employees and contractors, and investing in infrastructure,
economic development, and health and education in the communities where we
operate so that we can enhance the lives of those who work and live there beyond
the life of such operations. We take a long-term view of our corporate
responsibility, which is reflected in the policies that guide our business
decisions, and in our corporate culture that fosters safe and ethical behaviour
across all levels of Platinum Group. Our goal is to ensure that our engagement
with our stakeholders, including our workforce, industry partners, and the
communities where we operate, is continued, mutually beneficial and transparent.
By building such relationships and conducting ourselves in this manner, we can
address specific concerns of our stakeholders and work cooperatively and
effectively towards achieving this goal.

Social and Labour Plan

The Social and Labour Plan was compiled pursuant to the South
African Department of Mineral Resources (DMR) guidelines for social and
labour plans and submitted in accordance with section 46 of the MPRDA (defined
below). The objective of the Social and Labour Plan is to align the Companys
social and labour principles with the related requirements established under the
Mining Charter (defined below). These requirements for Maseve include promoting
employment, advancement of the social and economic welfare of all South
Africans, contributing toward the transformation of the mining industry and
contributing towards the socio-economic development of the communities proximal
to the Project 1 mine. Contractors are required to comply with the Social and
Labour Plan and policies, including commitment to employment equity and BEE,
proof of competence in terms of regulations, commitment to undertake training
programs, compliance with all Maseve policies relating to recruitment, training,
health and safety, etc. In terms of human resources training, the Social and
Labour Plan establishes objectives for adult-based education training,
learnerships and development of skills required by mining industry, portable
skills training for transition into industries other than mining, education
bursaries and internships. The Social and Labour Plan also establishes local
economic development objectives for projects such as community centre
refurbishment, high school refurbishment, water and reticulation projects,
housing development, establishment of recreational parks and various other
localized programmes for small scale industry, agriculture, entrepreneurship and
health and education.

Labour in South Africa

The gold and platinum mining industries in South Africa have
recently witnessed significant labour unrest and demands for higher wages by
certain labour groups. Both legal and illegal or unprotected strikes have
occurred at several mines since the beginning of August 2012. In June 2014, the
Association of Mineworkers and Construction Union accepted a negotiated wage
settlement to end a five month long strike affecting a significant proportion of
the platinum industry. To date, the Company has seen no adverse labour action on
its site at the Project 1 mine.

The primary union at the Project 1 platinum mine representing
the workers of Maseves primary underground mining contractor, JIC Mining
Services (JIC), is the National Union of Mineworkers (NUM).
The Company maintains an active dialogue with JIC, NUM and its own employees.
JIC recently agreed to terms with NUM for a labour contract at the Project 1
platinum mine for a two-year period ending September 2017. In the future, should
higher salaries and wages occur across the industry, the Company will likely be
required to comply with higher pay bands, and the resulting increase in the cost
of labour. See Risk Factors.

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- 13 

Platinum Group Metals Ltd. 2015 Annual Information Form

Environmental Compliance

The Companys current and future exploration and development
activities, as well as future mining and processing operations, if warranted,
are subject to various federal, state, provincial and local laws and regulations
in the countries in which the Company conducts its activities. These laws and
regulations govern the protection of the environment, prospecting, development,
production, taxes, labour standards, occupational health, mine safety, hazardous
substances and other matters. Company management expects to be able to comply
with those laws and does not believe that compliance will have a material
adverse effect on the Companys competitive position. The Company intends to
obtain and maintain all licences and permits required by all applicable
regulatory agencies in connection with its mining operations and exploration
activities. The Company intends to maintain standards of compliance consistent
with contemporary industry practice.

Competitive Conditions

The global PGM mining industry has historically been
characterised by long-term rising demand from global automotive and fabrication
sectors on the one hand and constrained supply sources on the other. South
Africas PGM mining sector has been the largest and fastest growing sector in
the South African mining industry until recently, representing approximately 80%
of global supply. Since mid-2012 global economic uncertainty, recycling and slow
growth have created a weak market for PGMs. Lower market prices for PGMs
combined with labour unrest has caused stoppages and closures of some higher
cost platinum mines and shafts in South Africa. Almost all of the South African
platinum supply comes from the geographic constraints of the Western, Northern
and Eastern Limbs of the Bushveld Complex, resulting in a high degree of
competition for mineral rights and projects. South Africas PGM mining sector
remains beholden to economic developments in the global automotive industry
which accounts for approximately 32% of the total global demand for platinum. A
prolonged downturn in global automobile and light truck sales, resulting in
depressed platinum prices, often results in declining production as unprofitable
mines are shut down. Alternatively, strong automobile and light truck sales
combined with strong fabrication demand for platinum, most often results in a
more robust industry, creating competition for resources, including funding,
labour, technical experts, power, water, materials and equipment. The South
African industry is dominated by three or four producers, who also control
smelting and refining facilities. As a result, there is general competition for
access to these facilities on a contract basis. As the Company moves towards
production on Project 1, it will become exposed to many of the risks of
competition described herein. See Risk Factors.

Employees and Contractors

The Companys current complement of managers, staff and
consultants in Canada consists of approximately 9 individuals and the Companys
complement of managers, staff, consultants, security and casual workers in South
Africa consists of approximately 270 individuals, inclusive of approximately 18
individuals active at the Waterberg Projects.

The Waterberg Projects are operated by the Company utilizing
its own staff and personnel as described above. Contract drilling, geotechnical
and support services are utilized as required.

Project 1 is operated by the Company on an owner
managed-contractor basis. In the last 18 months the Company has undertaken the
hiring of full time local mining specialists in South Africa as part of an
operational readiness plan while the Company drives toward first production at
Project 1. The expanded management team has taken over many duties and
responsibilities previously assigned to contractors, resulting in improved
planning and execution capabilities at Project 1. In addition, the safety record
at Project 1 has systematically improved to good levels with the addition of
these new management personnel and through a focus on safety. The Project 1
management teams have frequent interaction and dialogue with the inspectorate
branch of the DMR and follows their guidance carefully.

As at October 31, 2015, the Company had 90 permanent and
temporary staff, 11 technical services personnel, 106 security personnel and 15
human resources and labour consultants assigned to Project 1, while underground
mining contractor JIC has approximately 1054 people, including mining
sub-contractors assigned to working on both the north and south mine areas at
Project 1. JIC was engaged in July 2011. Having been appointed in December 2010,
DRA Mining (Pty) Ltd., the engineering, procurement, construction and management
(EPCM) contractor, completed its initial engagement with the Company
for Phase 1 establishment of the underground development of the north mine
declines in mid-2012, after which Company personnel assumed management over
underground services provided by JIC. In December 2012, DRA Mineral Projects
(Pty) Ltd. (DRA)1 was formally engaged as the EPCM
contractor for commencement of Phase 2 infrastructure, including mill and
flotation circuit construction. A dedicated project manager for the Company has
overseen the construction work and planning at Project 1, as well as the EPCM
work and costs.

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Platinum Group Metals Ltd. 2015 Annual Information Form

At October 31, 2015, DRA was managing approximately 571 people
working onsite at Project 1 assigned to the construction of surface and
underground infrastructure, tailings facility construction and piping and
mechanical and electrical installations of the concentrator plant. At October
31, 2015, there were approximately 1,847 people onsite with approximately 57%
working on the underground development team active on the Project 1 platinum
mine.

The Company has worked closely for several years with local
communities and human resource specialists RBS in order to create a database of
local persons interested in work at Project 1, including their skill and
experience details. The Company has set a target of 30% local employment for the
mine, including persons under the employ of contractors. As at October 31, 2015,
approximately 22% of the onsite Project 1 workforce was comprised of local
persons from surrounding communities.

Foreign Operations

The Company conducts the majority of its business in South
Africa. South Africa has a large and well-developed mining industry,
particularly in the area where the Project 1 is located. This, among other
factors, means the infrastructure in the area is well-established, with
well-maintained roads and highways as well as electricity distribution networks,
water supply and telephone and communication systems. Electrical generating
capacity has been strained by demand in recent years in South Africa, but
additional capacity is currently underway. Additional water infrastructure will
also be required. See Risk Factors.

There is also access to materials and skilled labour in the
region due to the existence of many platinum and chrome mines in the immediate
vicinity. Smelter complexes and refining facilities are also located in the
area. South Africa has an established government, police force and judiciary as
well as financial, health care and social institutions, although such
institutions underwent significant change following the fall of apartheid and
free elections in 1994, and are continuing to be developed. The system of
mineral tenure was overhauled by new legislation in 2002, which came into force
in 2004. Since 1994, South Africa has been considered an emerging democracy. See
Risk Factors.

MINERAL PROPERTY INTERESTS

Under IFRS, the Company defers all acquisition, exploration and
development costs related to mineral properties. The recoverability of these
amounts is dependent upon the existence of economically recoverable mineral
reserves, the ability of the Company to obtain the necessary financing to
complete the development of the property, and any future profitable production;
or alternatively upon the Companys ability to dispose of its interests on an
advantageous basis.

The Companys key development project and exploration targets
are located in the Bushveld Complex in South Africa. The Bushveld Complex is
comprised of a series of distinct layers or reefs, three of which contain the
majority of the economic concentrations of platinum group metals (together,
PGMs, and the subset of 4E PGMs consisting of platinum, palladium,
rhodium and gold, or the subset of 3E PGMs consisting of platinum, palladium and
gold) within the Bushveld Complex: (i) the Merensky Reef (Merensky or
MR), which occurs around the Western Limb of the Bushveld Complex, (ii)
the Upper Group 2 Layer or Reef (UG2), which occurs around the Eastern
Limb of the Bushveld Complex and (iii) the Platreef (Platreef), found
within the Northern Limb. These reefs exhibit extensive geological continuity
and predictability and have an established history of economic PGM production.
The Merensky, UG2 and Platreef have been producing PGMs since the
1920s, 1970s and 1990s, respectively.

______________________________

1 DRA Mineral Projects (Pty) Ltd., a separate
operating company, as defined above in this AIF.

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Platinum Group Metals Ltd. 2015 Annual Information Form

Overview of the Bushveld Complex (Map not drawn to scale)



Notes:

| | 1 | Anglo American Platinum Limited owns a 33%
  stake.            
| | - | ---------------------------------------------------------------
| | 2 | Comprised of Bathopele, Siphumelele and Thembelani
      mines.

Projects 1 and 3 of the Western Bushveld Complex

Project 1 and Project 3 are located adjacent to each other on
the Western Limb of the Bushveld Complex, 110 km west northwest of Pretoria and
120 km from Johannesburg. The approximately 47 km2 of mining rights
comprising Project 1 and Project 3 are owned by project operating company
Maseve, of which the Company owns an 82.9% interest and Wesizwe, through its
subsidiary Africa Wide, owns 17.1% .

To date, the majority of the Companys exploration and
development activities have been focused on Project 1 in order to advance it
into production. On July 7, 2008, the Company announced the results of a
feasibility study on Project 1. On November 25, 2009, the Company published an
updated feasibility study for Project 1. On April 4, 2012, Maseve was issued a
letter of grant for the Mining Right by the DMR. The Mining Right was notarially
executed on the commencement date of May 15, 2012 and registered on August 3,
2012. During 2012 and into early 2013, the Company completed Phase 1 development
at Project 1. Phase 1 included surface infrastructure, lay down areas,
electrical and water connections, twin decline development and some lateral
development.

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- 16 

Platinum Group Metals Ltd. 2015 Annual Information Form

Phase 2 development at Project 1 commenced in early January
2013. Phase 2 includes the completion of an additional twin decline access into
the deposit, a milling, concentrating and tailings facility and extensive
underground development. Plant and facility construction are substantially
complete and commissioning is underway. First production is planned during
December, 2015. Full commercial production is estimated to occur after a two-
year ramp-up period subsequent to the commissioning of the plant.

Technical Reports

Readers are encouraged to read the following technical reports,
from which certain of the disclosure regarding Project 1 and Project 3 in this
AIF has been derived:

|1. | Technical Report on Project 3 Resource Cut Estimation of
      the Western Bushveld Joint Venture (WBJV) Located on the Western Limb of
      the Bushveld Igneous Complex, South Africa, dated August 31, 2010 (the
      Project 3 Report), prepared by Charles J. Muller; and                                                                                                                                                                                                                                                                                                                                 
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|2. | An Independent Technical Report on the Maseve Project
      (WBJV Project areas 1 and 1A) located on the Western Limb of the Bushveld
      Igneous Complex, South Africa (the Project 1 Report) dated
      August 28, 2015 with an effective date of July 15, 2015 for the estimate
      of mineral resources and reserves, prepared by Charles J. Muller (B. Sc.
      (Hons) Geology) Pri. Sci. Nat., of CJM Consulting (Pty) Ltd.; Gert Roets
      (B. Eng. Mining), Pr. Eng. (ECSA), of DRA Projects; and Gordon Cunningham,
      B. Eng. (Chemical), Pr. Eng. (ECSA) of Turnberry Projects (Pty)
  Ltd.

(collectively, the WBC Reports).

Although adjacent and on strike to the north of Project 1,
Project 3 is not material to the Company at this time and the discussion below
details only Project 1.

The following summary is qualified in its entirety with
reference to the full text of the Project 1 Report, which is incorporated by
reference herein.

The Project 1 Report complies with disclosure and reporting
requirements set forth in the Toronto Stock Exchange Manual, NI 43-101 Standards
of Disclosure for Mineral Projects, Companion Policy 43-101CP to NI 43-101, and
Form 43-101F1 of NI 43-101. The report reviews the geology, exploration and
development activities at Project 1 and states the most recent mineral reserve
and resource estimates with an effective date of July 15, 2015.

The WBC Reports are subject to certain assumptions,
qualifications and procedures described therein. Readers are encouraged to
review the full text of the WBC Reports, available for review under the
Companys profile on SEDAR at www.sedar.com and on the SECs EDGAR
website at www.sec.gov, for additional information.

Project 1 Summary (Excerpted from the Project 1 Report)

Introduction

Since the update on the Feasibility Study in 2009, changes to
the mining methodology and method of access, on and off reef development have
been reviewed. In the 2009 Updated Feasibility Study, access development was to
be via 3 decline systems with trackless development and ore transport, with
raise development, ledging, equipping and stoping being conventional hand held
mining methodology.

Reason for Updated NI43-101 Report

The Mineral Resources and Mineral Reserves for Project 1 have
been updated to account for the planned increased use of mechanized mining
methods where the deposit is estimated to be thicker and accessible from nearby
completed underground development. The updated Mineral Reserves have been
calculated using current three year trailing metal prices and current cost
estimates, updated detailed surface and underground drilling results and a
revised mine plan.

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Platinum Group Metals Ltd. 2015 Annual Information Form

Production guidance for 2016 is 116,000 ounces platinum,
palladium, rhodium and gold (4E) (100% Project basis) and 185,000
ounces 4E in 2017 in concentrate. Steady state has been estimated to be 250,000
ounces 4E per year.

Exclusive of smelter discount, on site costs are estimated to
be US$526 (12R/US$) per 4E ounce for the life of mine on the Merensky Reef
including copper, nickel and other minor elements as a credit and US$774 per 4E
ounce on the UG2 (12R/US$). The planned increased use of mechanized mining
methods in areas near current development, and a slightly weaker Rand has
resulted in similar cost guidance to earlier estimates despite increased labour
and other cost escalation in Rand terms.

Ownership

The Western Bushveld Joint Venture (WBJV) Maseve
property is located in the western limb of the Bushveld Igneous Complex
(BIC), 110km West-NorthWest of Pretoria and 120km from Johannesburg.
The WBJV is owned by Maseve Investments 11 (Pty.) Ltd. 82.9% owned by Platinum
Group Metals (RSA) (Pty) Ltd a wholly-owned subsidiary of Platinum Group Metals
Ltd Canada, the issuer. The resources of the WBJV Project 1 and 1A are located
approximately 1km from the active Merensky reef (MR) mining face at the
operating Bafokeng Rasimone Platinum Mine (BRPM) along strike. BRPM
completed opencast mining on the UG2 Reef within 100m of the WBJV property
boundary.

The government of South Africa has custodianship of all of the
country's mineral and petroleum resources under the Mineral and Petroleum
Resources Development Act, No. 28 of 2002. Maseve holds a mining right issued by
the State under the Mineral and Petroleum Resources Development Act, 2002.

Geology

The WBJV property is partly situated in a layered igneous
complex known as the BIC and its surrounding sedimentary footwall rocks. The BIC
is unique and well known for its layering and continuity of economic horizons
mined for platinum, palladium and other platinum group elements (PGEs), chrome
and vanadium.

The area is structurally complex with numerous phases of
faulting as well as soft-crystalline deformation within the MR and UG2 layers.

Major structures, which occur within the WBJV area, include the
Caldera and Elands Faults, Chaneng dyke and a major North-South trending
feature, which can be observed across the entire Pilanesberg Complex. These
East-West trending structures dip steeply (between 80° and 90°). The magnetics
indicate that the Chaneng Dyke dips steeply to the North. This is consistent
with similar structures intersected underground on the neighbouring BRPM, which
all dip steeply Northward.

Mineralisation

The potential economic horizons in the WBJV Maseve Project area
are the MR and UG2 situated in the Critical Zone of the Rustenburg Layered Suite
(RLS) of the BIC. These horizons are known for their continuity. The MR
and UG2 are mined at the BRPM adjoining the WBJV property as well as on other
contiguous platinum mine properties. In general, the layered package dips at
less than 20° and local variations in the reef attitude have been modelled. The
MR and UG2, in the Project Area, generally dip between 4° and 42°, averaging
22°.

The precious metals occur in a variety of forms. One or more of
the metals may be present in combination with sulphur, arsenic, selenium or
tellurium metallic particles of PGEs or of PGEs alloyed with base metals are
also found. Additional PGEs are found in solid solution in base metal sulphide
particles.

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Platinum Group Metals Ltd. 2015 Annual Information Form

Project Status

The database for the Maseve Project available for mineral
resource estimation comprises a total of 669 drill holes (comprising of original
parent holes only, excluding deflections). The MR Mineral Resource estimate is
based on 366 intercepts and the UG2 mineral resource estimate is based on 415
intercepts. An additional 213 drillholes were included in the resource estimate
Update which comprise new holes drilled by PTM in the time elapsed since the
previous resource estimate of 2009.

At the stage of this resource estimate, the Project was in
construction and mine building with reconnaissance underground development
continuing and plant development in progress. This is planned to expand to a
fully operational mine with commissioning in 2015.

Resources

Mineral resource estimation was conducted using Datamine
Studio and Minesofts geostatistical package RES adopting an ordinary kriging
method of resource estimation. In keeping with industry best practice in mineral
resource estimation, allowance is made for known and expected geological losses.
From drill data and other known information areas with no reef have been
delineated and excluded from mineral resource estimation. These areas comprise
35% of the project area. Within expected reef areas, further geological losses
of up to 14% for the MR and 13% for the UG2 were applied to the area to
accommodate for areas of potentially un-mineable structural and geological
conditions, and this was considered in the Mineral Resource estimate. This
geological loss considers losses for faults, dykes, potholes and areas of iron
replacement pegmatite. Structural loss estimates are based on drilling, field
mapping and remote sense data, which include a high resolution aeromagnetic
survey.

Total measured and Indicated mineral resources amount to 6.63
million ounces (Moz) of 4E (platinum, palladium, rhodium and gold) for
Maseve Project area. The mineral resource estimate for the Maseve Project area
is shown in the following tables.

Table-1: Mineral Resource Estimate for the Maseve Project

Merensky - Mining
      Cut 100% Project BasisResource Category
    Cut-off
    Tonnage
    Grade
    Metal
    ReefWidth4E
    
    Pt
    Pd
    Rh
    Au
    4E
    
    4Ecmg/t
    Mt
    g/t
    g/t
    g/t
    g/t
    g/t
    kg
    Moz
    cmMeasured
    300
    9.266
    3.35
    1.41
    0.21
    0.26
    5.23
    48,461
    1.558
    152Indicated
    300
    12.552
    3.65
    1.54
    0.23
    0.29
    5.71
    71,672
    2.304
    141Total
    300
    21.818
    3.53
    1.49
    0.21
    0.28
    5.51
    120,133
    3.862
    146Inferred
    300
    0.196
    2.32
    0.98
    0.14
    0.18
    3.62
    710
    0.023
    118


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Platinum Group Metals Ltd. 2015 Annual Information Form

UG2 - Mining Cut 100% Project
      BasisResource Category
    Cut-off
    Tonnage
    
    
    Grade
    
    
    Metal
    
    Reef Width4E
    
    Pt
    Pd
    Rh
    Au
    4E
    
    4Ecmg/t
    Mt
    g/t
    g/t
    g/t
    g/t
    g/t
    kg
    Moz
    cmMeasured
    300
    8.496
    2.29
    0.94
    0.36
    0.04
    3.63
    30,841
    0.992
    140Indicated
    300
    14.183
    2.46
    1.01
    0.39
    0.04
    3.90
    55,314
    1.778
    136Total
    300
    22.679
    2.39
    0.99
    0.38
    0.04
    3.80
    86,155
    2.770
    137Inferred
    300
    0
    0
    0
    0
    0
    0
    0
    0
    0


Mineral Reserves

The mineral reserves are fully included within the measured and
indicated mineral resources, and are not in addition to them.

The mineral reserve statement for the WBJV project 1 and 1A
(Maseve) is based on the South African Code for the Reporting of Exploration
Results, Mineral resource and Mineral reserves (SAMREC code). There is no
material difference between the SAMREC and CIM code for mineral reserve
estimation in this case.

The SAMREC code definition of a Mineral Reserve is:

A Mineral Reserve is the
economically mineable material derived from a Measured or Indicated Mineral
Resource or both. It includes diluting and contaminating materials and allows
for losses that are expected to occur when the material is mined. Appropriate
assessments to a minimum of a Pre-Feasibility Study for a project and a Life of
Mine Plan for an operation must have been completed, including consideration of,
and modification by, realistically assumed mining, metallurgical, economic,
marketing, legal, environmental, social and governmental factors (the modifying
factors). Such modifying factors must be disclosed.

Mineral reserves are reported as inclusive of diluting and
contaminating uneconomic and waste material delivered for treatment or
dispatched from the mine without treatment.

The CIM code definition for a Mineral Reserve:

A Mineral Reserve is the economically
mineable part of a Measured and/or Indicated Mineral Resource. It includes
diluting materials and allowances for losses, which may occur when the material
is mined or extracted and is defined by studies at Pre-Feasibility or
Feasibility level as appropriate that include application of Modifying Factors.
Such studies demonstrate that, at the time of reporting, extraction could
reasonably be justified.

The reference point at which mineral
reserves are defined, usually the point where the ore is delivered to the
processing plant, must be stated. It is important that, in all situations where
the reference point is different, such as for a saleable product, a clarifying
statement is included to ensure that the reader is fully informed as to what is
being reported.

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Platinum Group Metals Ltd. 2015 Annual Information Form

For this technical report, the CIM mineral reserves for the
WBJV project 1 and 1A has been stated under the SAMREC Code. The point of
reference is ore delivery to the RoM silo at the processing plant.

Mineral reserves are sub-divided in order of increasing
confidence into probable mineral reserves and proven mineral reserves. A
probable mineral reserve has a lower level of confidence than a proven mineral
reserve.

A probable reserve is the economically mineable part of an
indicated resource, and in some circumstances a measured resource. This is
demonstrated by at least a Pre-Feasibility Study (PFS) including
adequate information on mining, processing, metallurgical, economic and other
factors that demonstrate, at the time of reporting, the economic extraction can
be justified.

A proven reserve is the economically mineable part of a
measured resource demonstrated by the same level and factors as above. A proven
mineral reserve implies that there is a high degree of confidence. All mining
and permit approvals need not be in place for the declaration of reserves.



The conversion to mineral reserves was undertaken at 2.5g/t
stope cut-off grade for both MR and UG2 reefs. From the mineral resource as
estimated in this report, each stope has been fully diluted, comprising of a
planned dilution and additional dilution for all aspects of the mining process.
There are no inferred mineral resources included in the Reserves. The Qualified
Person for the Statement of Reserves is Mr. G. Roets (DRA Projects SA (Pty) Ltd)
(DRA).

The conversion of the 2015 Updated Mineral Resource Estimate to
Reserves differs from the 2009 Updated Feasibility Study Reserve calculation in
the following aspects:

| | > | A lower planning face cut-off grade of 2.5g/t
      (vs 3.5g/t from 2009 Updated Feasibility Study (FS)) was used,
| | - | --------------------------------------------------------------------------------------------------------------------

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Platinum Group Metals Ltd. 2015 Annual Information Form

| | > | The software used for reserve valuation is
      Datamine. Studio5 was used for mine design and EPS for production
      scheduling.
| | - | ------------------------------------------------------------------------------------------------------------------------------------

The Mineral Reserve statement has been calculated based on the
outcome of the updated reserve calculation and economic evaluation and is
detailed in 1-2.

Table 1-2: Mineral Reserve 4E Statement

Estimated Total Reserve 100% Project
      BasisReserve tonnes -
      Mt
    Pt g/t
    Pd g/t
    Rh g/t
    Au g/t
    Reserve 4E
      Grade - g/t
    Reserve 4E
      Content  t
    Reserve 4E
      Content  MozMR Proven and Probable
    17.525
    2.94
    1.24
    0.18
    0.23
    4.59
    80.401
    2.585UG2 Proven and Probable
    14.914
    2.01
    0.83
    0.32
    0.03
    3.19
    47.649
    1.532Total
    32.439
    2.51
    1.05
    0.25
    0.14
    3.95
    128.050
    4.117


Prill splits are calculated using the individual metal grades
reported as a percentage of the total 4E grade.

Table 1-2: MR and UG2 Prill Split

Merensky
      ReserveReserve
      tonnes - Mt
    Pt g/t
    Pd g/t
    Rh g/t
    Au g/t
    Reserve
      4E Grade - g/t
    Reserve
      4E Content - t
    Reserve
      4E Content - MozProven
    7.082
    2.89
    1.22
    0.18
    0.22
    4.51
    31.905
    1.025Probable
    10.443
    2.98
    1.26
    0.18
    0.23
    4.65
    48.496
    1.560Total
    17.525
    2.94
    1.24
    0.18
    0.23
    4.59
    80.401
    2.585


UG2
      ReserveReserve
      tonnes - Mt
    Pt g/t
    Pd g/t
    Rh g/t
    Au
    g/t
    Reserve
      4E Grade - g/t
    Reserve
      4E Content t -
    Reserve
      4E Content Moz -Proven
    5.452
    1.95
    0.80
    0.31
    0.03
    3.09
    16.821
    0.540Probable
    9.462
    2.05
    0.85
    0.33
    0.03
    3.26
    30.828
    0.992Total
    14.914
    2.01
    0.83
    0.32
    0.03
    3.19
    47.649
    1.532


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Mining Operations

Geotechnical Factors

The main findings in the geological and rock engineering
investigations that influenced on-reef mine design are discussed below:

| | > | The MR has an average dip of 15.31° and an
      average stoping width of 142cm at a cut-off grade of 2.5g/t,
| | - | -------------------------------------------------------------------------------------------------------------

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Platinum Group Metals Ltd. 2015 Annual Information Form

| | > | The UG2 reef has an average dip of 16° and an average
      stoping width of the mine is 129cm at a cut-off grade of 2.5g/t,                                                                                                                                                                                                                                                               
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                            
| | > | Certain mining blocks have the potential for increased
      mechanization, while other blocks have a greater potential for mining
      methods more suitable to narrow, steep dipping ore bodies. Currently
      predicted dip, structure and width can further be confirmed by additional
      drilling, either from surface or from underground with stope definition
      drilling,
| |   |                                                                                                                                                                                                                                                                                                                                                                                            
| | > | A complex geological structure with faults and dykes
      intersecting the ore body subdivides the deposit into a number of discrete
      mining blocks, each of which requires access development on different
      mining elevations. The resultant blocks of ground left un-mined add to the
      regional stability of the mine.                                                   

After application of appropriate pay limits, the MR reserve
contains 40% more recoverable metal than the UG2 and is therefore the primary
target. The parting between the MR and the UG2 reserve varies in thickness from
contact in the West to 70m in the East and deeper part of the deposit. Mining of
both reefs generally only occurs when the parting is greater than 20m as
prescribed by the rock engineer.

Mining Methods Selected

The geological and structural models, in conjunction with
geotechnical considerations, formed the basis of the mining methods that were
selected to provide the best practical outcome under the given conditions. The
selected methods had to be versatile and easily interchangeable with the lowest
impact on production during transition between mining methods. The mining
methods would also have to be able to integrate with the trackless environment
that would supply access and service all of the mining areas.

Final Chosen Mining Methods:

| | > | Bord and Pillar
| | - | ---------------

| |  | Bord and pillar mining was considered in flatter dipping
      areas with a maximum dip of 15o and where the actual seam height of the
      reef was conducive to the increased mining heights required for the bord
      and pillar equipment.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | > | Conventional Mining
| | - | -------------------

| |  | The conventional mining method was considered in the
      steepest dipping areas. Raises can be developed at a maximum dip (or
      apparent dip) of 34o, thus giving the best and most practical outcome
      under high variability conditions with the lowest replacement rates.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | > | Hybrid Mining
| | - | -------------

| |  | The hybrid mining method was considered in the
      moderate to steeper dipping areas where the bord and pillar method is not
      eligible. This method took precedence over the conventional method where
      applicable, due to the on-reef access which allows a quicker reef access
      and a faster production build-up. The method also requires a more
      favourable development replacement rate.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Mine Design

The updated Life of Mine (LoM) design, as illustrated
in Figure 1-2 and Figure 1-3, makes use of the twin decline system to access the
underground workings. Initially during the development phase, men, material and
rock will be transported by trackless mobile machinery. At steady state
production, men and rock will be transported by chairlift and conveyor systems
respectively (Refer to Section 18 of this report).

Mining methods have been adapted from the Updated Feasibility
Study to include geological, geotechnical, engineering and timing modifications.
Maseve will be operated as a trackless development (access development is
off-reef and production development is on-reef) and a partially conventional,
hybrid, and bord and pillar mechanised mine using diesel mobile
mining equipment. The overall on-reef / hand held methods applied in the
conventional and hybrid mining methods have not changed significantly from the
conventional methods described in the previous study. The thicker reef
(partially due to the lower cut-off grade and additional drilling information)
and a deliberate drive towards a higher degree of mechanization, allows for a
bord and pillar mining method to be applied in the deeper, shallower dipping
areas of the mine.

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The mine design is focused on reducing waste footwall
development by replacing most of the previously footwall located off-reef
production development in the earlier design with on-reef production
development. This accommodates the trackless mining method approach and delivers
a faster Run of Mine (RoM) production build-up. The approach also
allows for a reduced overall mining cost but it does however result in a
moderately higher dilution percentage.

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This report documents the modifying factors including updated
geological model, optimized mining plan and updated financial and economic
models in support of the updated mineral reserves. The cost analysis and
accuracy estimates have been updated to reflect changes in capital and operating
costs associated with adjustments in the mine plan and current prices.

This document provides details of the mine plan modifications
and associated layouts related to the updated mineral reserves. These changes
include:

| | > | Two decline systems at North Shaft and South
      Shaft to access the ore body (the 2009 Updated Feasibility Study included
      a three decline system),
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                            
| | > | Mining blocks have changed in geometry,
      position and strike,                                                                                         
| |   |                                                                                                                                                            
| | > | Dimensions and cross sectional areas of ends
      for the material decline, material ramp decline and strike drives.                                      

Realised development rates have been higher than estimated in
the 2009 Updated FS. Updated rates have a positive effect on the LoM scheduling.
Realised development rates average:

| | > | Material decline 100m per month,                                               
| | - | -------------------------------------------------------------------------------
| |   |                                                                                
| | > | Material ramp decline 80m per month,                                           
| |   |                                                                                
| | > | Strike ramps 60m per month,                                                    
| |   |                                                                                
| | > | Increase size of diesel equipment fleet from
      52kW/ktpm to over 65kW/ktpm.

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Platinum Group Metals Ltd. 2015 Annual Information Form

Ventilation requirements for the modified layout consider:

| | > | Intake airway capacity with two declines is
      less than with three declines,
| | - | --------------------------------------------------------------------------------
| |   |                                                                                 
| | > | Raise Bore Hole (RBH) size and location,                                      
| |   |                                                                                 
| | > | Main fan(s) operating point, location and
      phase-in.                       

Ventilation

Subsequent to the updated mine designs completed in March 2012,
changes were made to mine design to improve the viability of the Maseve Project.
Some of the proposed changes have impacted on the original ventilation designs
and specifications. The ventilation section assesses the impact of the
significant changes on ventilation designs and associated costs.

The ventilation strategy considers safety and health in
accordance with the Mine Health and Safety Act (MHSA, Act 29 of 1996)
and complies with Maseve health and safety requirements. The primary ventilation
quantity for Maseve is 1 100m3/s; dictated by the need to dilute diesel
emissions, remove heat and dilute blasting fumes (during re-entry period). The
primary ventilation quantity satisfies the mine heat load without the need for
refrigeration. It must be noted however that, wet-bulb temperatures will exceed
27.5°C and approach 29.0°C and heat tolerance screening of the underground work
force will be required. Interactive computer simulation of heat and air flow was
used to determine ventilation requirements over the LoM for maximum depth and
strike.

The mining plan is based on steady state production of 160 000
reef tonnes per month. During the first phase of the project, the primary ore
body will be MR and accordingly discussion in this report focusses on access of
the MR. Later UG2 will provide replacement tonnes and will be ventilated
utilising the existing MR infrastructure by extending established intake and
returns to UG2 as required (e.g. step raise bore holes (RBHs), drop raises,
horizontal intake and return airways). The strategy will mine UG2 within a
specific mining block only after the overlying MR block has mined out, i.e.,
the two reefs will not be mined simultaneously from the same area.

In general, each mining block will be ventilated as a separate
district while at the same time utilising as much common infrastructure as
practically achievable. Fresh air will be introduced to mining blocks through a
combination of the main North and South access decline systems and strategically
located fresh air RBHs. Air returns through return RBHs equipped with fans.
Generally returns will serve more than one block, but in some cases a blocks
will require a dedicated return to surface. It should be noted that RBHs were
phased in to meet the production requirements as provided.

Metallurgical Testwork and Recovery

Three sets of testwork have been conducted on the WBJV
Elandsfontein deposit by SGS Lakefield for the Pre-Feasibility Study (PFS) and
Mintek for the 2009 Updated Feasibility Study (UFS). SGS Lakefield
completed metallurgical testwork on UG2 and MR (December 2006 and January 2007
respectively) reefs to characterise the ores and evaluate metallurgical
performance. From comminution testwork, the UG2 ore was classified as being of
medium to hard hardness. The ore could be treated using a standard MF2 circuit
and the predicted recoveries were 82% (4E) with a grade of 150g/t. The predicted
PGM recovery and grade for MR were 94% and 179g/t (4E) respectively. Copper and
Nickel recoveries achieved were 89% and 59.5% respectively at grades of 2.4% and
3.6% . The testwork was conducted at a fine grind of 90% passing 75μm. The
testwork was conducted with limited samples (four cores samples).

The Mintek 2009 UFS metallurgical testwork was conducted on MR
and UG2 samples collected across the target mining area. The mineralogy, grade
and ore occurrence exhibited marked variability. The MR grade varied from 1.9g/t
to 8.5g/t (4E) with an average of 5.3g/t. The testwork was conducted with a
location composite with a grade of 2.5g/t. Both MF1 and MF2 circuit
configurations were tested. The overall MR MF1 recovery and grade were 86% (4E)
and 61g/t respectively. It was also demonstrated during the rougher rate tests
that for MF1, recovery increased with grinds being 88.9%, 90.1% and 94% for
grinds of 40%, 60% and 90% passing 75μm respectively. The overall copper and
nickel recoveries were 86% and 57%. Respective grades for copper and nickel were
1.6% and 2.1% . For MF2 overall 4E recovery and grade were 91% and 85g/t
respectively. Overall copper and nickel recoveries were 84% and 58% respectively
at grades of 2% and 2.8% .

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Platinum Group Metals Ltd. 2015
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The UG2 testwork gave overall recovery of 86% at a grade of
102g/t with chromite grade less than 4%.

Mintek conducted confirmatory testwork in 2012 from nine MR
drill core samples collected across the mining area. The testwork demonstrated
that the ore was not significantly different to the other ores tested
previously. The samples also demonstrated marked variability with 4E grade
varying between 1.6g/t and 6.6g/t. Copper and nickel grades were 0.14% and 0.17%
.. Comminution testwork classified the ore as being hard. Rougher rates for MF2
and MF1 were 94% and 91% respectively. The cleaner efficiency was 95%, giving
predicted recoveries of 89.3% and 86.5% for MF2 and MF1 respectively. The
testwork also demonstrated an increase in recovery for the MF1 configuration for
increase in fineness from 40%, 60% and 80% passing 75μm, with the extended time
recoveries for the 60% and 80% being close to each other. From the MF2 locked
cycle testwork overall 4E recovery and grade were 87.1% and 135g/t respectively
at a mass pull of 3.3% . Copper and nickel recoveries were 88% and 64% at grades
of 1.9% and 3.5% respectively.

Tailings thickening tests conducted yielded a flux of 0.7m2/hr
tonne.

DFS metallurgical testwork for UG2 was conducted, with seven
drill core samples at an overall grind of 80% passing 75μm applying an MF2
configuration. Metallurgical characterisation confirmed that the response was
variable but similar to ores tested previously. Overall 4E recovery and grade
were 79% and 109g/t respectively. The chromite grade in concentrate was 3.7% .

Process Plant Design

The process plant design utilises a standard
mill-float-mill-float (MF2) circuit configuration that is applied to treat PGM
ores of the BIC. The plant has been designed to treat ore at a rate of 165
000tpm. The design offers flexibility to treat a blend of MR and UG2 at a
predetermined ratio. The MR is the target of initial mining. The mining ramp-up
to steady state production of 165 000tpm is over a three-year period.
Construction of the concentrator is in two phases, initially with an MF1 circuit
during the ramp-up period. The completion of the MF2 circuit will only be
decided after reviewing the mining production ramp-up in 2017.

The MF1 circuit offers lower start-up costs, early revenue and
good ore stockpile management. Only equipment required for the MF1 circuit will
be installed with all services (power, water and air) completed during this
phase. Main equipment installed in phase 1 includes the primary mill, secondary
flotation bank (redeployed to primary rougher flotation in this phase), tailings
thickener and disposal system and concentrate thickener and filter. The
concentrate filter was sized for the full plant capacity (60m2), but
only enough plates (48m2) to handle the phase 1 throughput were
installed. Sufficient civil work will be completed in phase 1 to minimise
interrupting production and allow for safe construction during completion of the
MF2 plant.

The MF1 circuit will treat between 80 000 and 115 000tpm at a
grind of just over 60% passing 75μm. The MF1 testwork shows that for this grind
MF1 recoveries are between 1% and 3% lower than MF2 for extended residence time.
The secondary rougher installed in the initial phase offers long residence time.
The MF1 recovery has been discounted by 1.5% for the initial phase.

Any confirmatory testwork required for the UG2 ore will be
determined at a later stage.

Infrastructure

The PTM Maseve site is divided into four secure areas, the
operational site is primarily focussed East of the R565 Provincial road namely
North Shaft, Plant and South Shaft. The training and induction centre functions
are primarily focused West of the R565 at the Training Centre. Each shaft and
the plant is equipped with its own offices, change house, control room,
maintenance, storage and general management facilities. Senior management offices are located
near the concentrator, central to all operational areas.

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Platinum Group Metals Ltd. 2015
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The main Eskom supply is located close to North Shaft and the
generator station, bulk fuel storage and Power Factor Correction (PFC)
equipment is strategically located close to the main consumer substation. The
mine is not completely self-sufficient on generator power, however, is able to
supply 13% of it planned maximum demand with the two generators currently on
site.

All critical infrastructure from electrical to bulk materials
handling has been designed to accommodate full production out of a single shaft,
which provides for any variation in production scheduling that might occur
between North Shaft and South Shaft over the LoM.

Other important facilities to note on site are:

| | > | Medical clinic facilities,                                
| | - | ----------------------------------------------------------
| |   |                                                           
| | > | Potable water and waste water management
      facilities,
| |   |                                                           
| | > | Sewerage treatment works,                                 
| |   |                                                           
| | > | Tailing Storage Facility (TSF),                         
| |   |                                                           
| | > | Security buildings,                                       
| |   |                                                           
| | > | Visitors centre,                                          
| |   |                                                           
| | > | Shaft head explosive delivery facilities,                 

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Platinum Group Metals Ltd. 2015 Annual Information Form

| | > | Fire water pump stations.
| | - | -------------------------

Environmental Studies, Permitting and Social or Community
Impact

Baseline studies have been undertaken within the WBJV Project 1
(Maseve) area, in support of an Environmental Impact Assessment (EIA)
and Environmental Management Plan (EMP), which is part of the mining
right application. These studies were conducted to comply with local legislation
as well as international requirements and consisted of the following:

| | > | Soils, land use and land capability study,
| | - | ------------------------------------------
| |   |                                           
| | > | Fauna and flora Report,                   
| |   |                                           
| | > | Hydrological study,                       
| |   |                                           
| | > | Groundwater specialist report,            
| |   |                                           
| | > | Air quality impact assessment,            
| |   |                                           
| | > | Ground vibration and air blast,           
| |   |                                           
| | > | Visual impact,                            
| |   |                                           
| | > | Archaeological assessment,                
| |   |                                           
| | > | Traffic assessment.                       

The EIA summarises relevant results of the environmental and
social baseline of the WBJV Project 1 (Maseve) area.

Maseve holds the following governmental authorizations:

| | > | The Environmental Impact Assessment and Environmental
      Management Plan (EIA and EMP) was approved by the Department of Mineral
      Resources in terms of the Mineral and Petroleum Resources Development Act
      (No. 28 of 2002) on the 15 May 2012.                                              
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                             
| | > | The Department of Economic Development, Environmental,
      Conservation and Tourism (DEDECT) granted to Maseve an
      environmental authorisation in terms of the NEMA to commence with the
      construction of infrastructure and facilities on 13 September 2013, ref:
      30/5/1/2/3/2/1/528EM.
| |   |                                                                                                                                                                                                                                                                                                             
| | > | Environmental authorization NWP/EIA/135/2010 issued by
      the Rural, Environmental and Agricultural Department of the North West
      Provincial Government and correction thereto dated 4 March 2015;                                                                                                  
| |   |                                                                                                                                                                                                                                                                                                             
| | > | Waste management license 12/9/11/L628/7 (WML) issued by
      the Department of Environmental Affairs in terms of the National
      Environmental Management: Waste Act No. 59 of 2008 (NEMWA) for a treatment
      plant to be utilized during Phase 2 of the Project 1.                                 
| |   |                                                                                                                                                                                                                                                                                                             
| | > | Water Use License 03/A22F/ABCGIJ/2596 (WUL) issued by the
      Department of Water and Sanitation in terms of Chapter 4 of the National
      Water Act, 1998 (Act No. 36 of 1998) for various water uses on the Mining
      Right Area on 16 July 2015.                                                  

Maseve has a programme of work in place to comply with the
necessary environmental, social and community requirements. Key work includes:

| | > | EIA / EMP in accordance with the MPRDA, the National
      Environmental Management Act (NEMA) as well as the Equator
      Principles (EP).
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                 
| | > | Stakeholder Engagement Process in accordance with the
      NEMA principles.                                                                    

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Platinum Group Metals Ltd. 2015
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| | > | Specialist investigations in support of the EIA / EMP.                                                                 
| | - | -----------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                        
| | > | Integrated Water Use License Application (IWULA)
      in compliance with the National Water Act (NWA).            
| |   |                                                                                                                        
| | > | Integrated Waste Management License in compliance with
      the National Environmental Management Waste Act (NEMWA).

Maseve posted an environmental rehabilitation guarantee of R
58.5 million as a requirement of the mining right application.

There are several communities within the proposed project area
whom are affected by the WBJV Project 1 (Maseve).

Production schedule

The WBJV Project 1 (Maseve) LoM for both the MR as well as the
UG2 is just over 21 years (21.03), of which MR is 11.62 years and UG2 10.94
years. See Graph 1-3 below.



The production profile follows a phased approach to the planned
160 000tpm at steady state. In the initial phase to October 2017, the MR
production builds up to 115 000tpm. Production then builds up to 160 000tpm and
reaches steady state in September 2018 where it remains for the LoM.

The tail of the production schedule for the MR starts in
January 2025 and final reef tonnes for the MR is scheduled for May 2026. In
order to keep the mill fed at 160 000tpm, the UG2 reef starts production in November 2024, where it builds up steadily to the required 160
000 tonnes of reef in May 2026, supplementing the tail of MR. Steady state of
the UG2 reef lasts up to May 2032 from where the tail of the UG2 reef decreases
to final reef tonnes schedule in July 2035.

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The production for each of the individual mining methods
selected for the WBJV Project 1 (Maseve) is as shown in Graph 1-4 below.



The average mining height (on both reef horizons) for
conventional mining is 142cm, 146cm for Hybrid mining and 190cm for bord and
pillar.

Operating Costs

Table 1-4 below sets out key operating cost details of the
technical report.

Table 1-4: Key Operating Cost Details

ZAR:USD = 12.00

ZAR per tonne
      milled
    USD per tonne
      milledOn Mine Operating
      Cost
    896
    75By- &
      Co-Product Credits
    (106)
    (9)


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ZAR:USD = 12.00

ZAR per tonne
      milled
    USD per tonne
      milledTotal Net Mine
      Site Cash Cost
    791
    66


ZAR per 4E oz
      in concentrate
    USD per 4E oz
      in concentrateOn Mine Operating
      Cost
    8
      392
    699By- &
      Co-Product Credits
    (989)
    (82)Total Net Mine Site Cash Cost
    7 403
    617


| | > | On-mine operating costs include all mining costs, milling
      costs, support services and on-mine overheads,
| | - | --------------------------------------------------------------------------------------------------------------
| |   |                                                                                                               
| | > | By-& co-product credits consist of the revenue
      derived from Ru, Ir, Ni and Cu.                          

The life of mine on-mine operating cost is estimated to be
ZAR896 per tonne milled or ZAR8 392 per oz 4E (Pt, Pd, Au and Rh) produced in
concentrate.

Capital Costs

The project capital cost is anticipated to be ZAR5 070m to the
start of production. An approximate additional ZAR708m will be spent on capital
to achieve peak production of 165 000tpm by mid-2018. LoM Capital expenditure
including sustaining capex is estimated at ZAR6 418m.

Table 1-5: Capital Cost Summary

ZAR millionSunk to July 2015
    4,505Capital
      Expenditure to Production
    265Capitalised
      Operating Cost to Production
    300Total Capital
      Expenditure to Production
    5,070Remaining LoM
      Capital Excl. Sustaining Capital
    860Sustaining Capital
      LoM
    487Total LoM
      Capital Expenditure
    6
      418


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Figure 1-5: Capital Expenditure Profile



Economic Analysis

The production schedule is as shown above in Graph 1-3 and
Graph 1-4. This schedule has been based on the mining plan as developed by the
project team and metallurgical results as determined by test work. The capital
and operating costs as determined by the project team are included. The toll
refining contract has been ratified and the numbers have been incorporated into
the financial model.

The following prices, based on a 3-year trailing average in
accordance with U.S. Securities and Exchange Commission ("SEC") guidance,
was used for the assessment of resources and reserves.

Table 1-6: Average 3 year Trailing Metal Prices used in
Financial Model

Metal
    Price
    UnitPlatinum
    1 408
    USD/ozPalladium
    744
    USD/ozRhodium
    1 126
    USD/ozGold
    1 374
    USD/ozCopper
    3.18
    USD/lbNickel
    7.11
    USD/lbIridium
    731
    USD/oz


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Metal
    Price
    UnitRuthenium
    73
    USD/oz


The exchange rate between the ZAR and the USD is fixed at
ZAR12.00:USD1.00 in the financial model throughout the LoM. The pricing and
exchange rates above results in the estimated basket prices shown in Table 1-7
below.

Table 1-7: Basket Prices

Basket Prices per 4E
    ZAR/4E Oz
    ZAR/4E kg
    USD/4E Oz
    USD/4E KgMerensky Reef
    14
      590
    469
      093
    1 216
    39
      091UG Reef
    14
      487
    465
      776
    1 207
    38
      815Combined in LoM
    14
      553
    467
      902
    1 213
    38
      992


The economic evaluation is summarised in Table 1-8 below.

Table 1-8: Economic Evaluation Summary

NPV @ 5%
    NPV @ 10%Economic Evaluation Summary
    ZAR million
    USD million
    ZAR million
    USD million
    IRRCash flow since start of project
    1 597
    133
    (368)
    (31)
    8.8%Cash
      flow from July 2015 (reporting date)
    6 340
    528
    4 226
    352
    49.8%


The IRR of the project is based on estimated cash flows from
July 2015 onwards is 49.8% .

Conclusion and Recommendations

The Project Area represents measured and Indicated mineral
resources. The definitions of the mineral resource classification are in
accordance with the definitions stated in the SAMREC Code and the CIM Mineral
Resource Classifications and comply with disclosure standards of NI 43-101.

The updated geological model has increased confidence in the
western areas where iron replacement bodies within the ore body have been
delineated out of the mineral resource more accurately, based on known and
interpreted localities of such bodies. Based on data spatial localities, the
mineral resource estimate was computed from relatively large blocks, i.e. 100m X
100m blocks.

Rolls in the mineralized reefs, mainly along the marginal zone
on the western portion of the deposit have been modelled to detail and the mine
plan adjusted accordingly to optimize underground layout and haulage.

The Maseve WBJV Project 1 and 1A areas are at development level
and thus have had sufficient exploration completed that any material exploration
activities and engineering studies have been concluded for these areas. The site
infrastructure and processing plant completed to date is appropriate for the
mine plan ahead. The project completed and the investment to date allows the
project to have an attractive profile, at 3-year average trailing metal prices
and reserves, in the current environment.

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Waterberg Projects

The Waterberg Projects are comprised of the Waterberg JV
Project, a contiguous granted prospecting right area of approximately 255
km2 and the Waterberg Extension Project, an area of granted and
applied-for prospecting rights with a combined area of approximately 864
km2 located adjacent and to the north of the Waterberg JV Project,
both located on the Northern Limb of the Bushveld Complex, approximately 85 km
north of the town of Mokopane (formerly Potgietersrus).

The Waterberg Projects are located on a newly-discovered
extension of the Northern Limb of the Bushveld Complex. Amplats' Mogalakwena
mine is a Platreef asset also located on the Northern Limb. The Waterberg
Projects are the subject of an ongoing pre-feasibility study being completed by
mine building and engineering firm DRA. The pre-feasibility study for the
Waterberg JV Project will target a large, thick PGM resource. The objective of
the pre-feasibility study will be to model a large-scale, fully-mechanized mine.
A substantial portion of the Waterberg Projects prospecting area remain
unexplored.

The Waterberg Projects are derived from a group of exploration
projects that came from a regional target initiative by the Company conceived in
2007 and 2008. The projects target a previously unknown extension to the
Northern Limb of the Bushveld Complex in South Africa. The Company selected this
target from a list of new ideas provided by a team of South African
geoscientists. Detailed geophysical and other work indicated potential for a
package of Bushveld Complex rocks under the sedimentary Waterberg formation
cover rocks. Previous mineral exploration activities in the area were limited
due to the extensive sedimentary cover. Exploration by the Company therefore
progressed through preliminary exploration activities to delineate initial drill
targets to primarily drilling focused work now that a deposit has been
discovered.

The Waterberg Projects are managed and explored according to a
joint technical committee and are currently planned for development according
with the objective of achieving a best outcome scenario for shareholders and
stakeholders.

Technical Report

Technical information in this AIF regarding the Waterberg
Projects is derived from the NI 43-101 technical report entitled An Independent
Technical Report on the Waterberg Project located in the Bushveld Igneous
Complex, South Africa dated September 4, 2015 with an effective date of July
20, 2015 for the estimate of mineral resources (the July 2015 Waterberg
Report), prepared by Charles J. Muller (B. Sc. (Hons) Geology) Pri. Sci.
Nat., of CJM Consulting (Pty) Ltd. The following summary is qualified in its
entirety with reference to the full text of the July 2015 Waterberg Report,
which is incorporated by reference herein. Readers are directed to review the
full text of the report, available for review under the Companys profile on
SEDAR at www.sedar.com and on the SECs EDGAR website at www.sec.gov, for
additional information.

The July 2015 Waterberg Report complies with disclosure and
reporting requirements set forth in the Toronto Stock Exchange Manual, NI 43-101
Standards of Disclosure for Mineral Projects, Companion Policy 43-101CP to NI
43-101, and Form 43-101F1 of NI 43-101. The report reviews the geology, the
exploration activities and states the most recent mineral resource estimation
with an effective date of July 20, 2015.

Waterberg Projects Summary (Excerpted from the July 2015
Waterberg Report)

Introduction

CJM Consulting (South Africa) Pty Limited (CJM) has been
requested by Platinum Group Metals (RSA) (Pty) Ltd (PTM), on behalf of Platinum
Group Metals Ltd (PTML), the issuer, to complete an Independent Technical Report
for the Waterberg Project. The project is targeting a previously unknown
extension to the Northern Limb of the Bushveld Complex where a deposit
containing Platinum Group Metals (PGMs), gold and base metals (Cu, Ni) has been
discovered. The objective of this report is to provide and comply with
disclosure and reporting requirements set forth in the Toronto Stock Exchange
Manual, National Instrument 43-101 Standards of Disclosure for Mineral Projects
(NI 43-101), Companion Policy 43-101CP to NI 43-101, and Form 43-101F1 of NI
43-101.

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Project Area and Location

The Waterberg Project is some 85km north of the town of
Mokopane (formerly Potgietersrus) and covers an area along the strike length of
the previously unknown northward extension of the Bushveld Complex.

Waterberg Project

The Waterberg Project is comprised of several prospecting
rights covering an area of 111,882ha. Conversion of the prospecting right into a
mining right within the renewal period of three years is allowed. The area of
the prospecting rights extends some 42km from north to south and 42km from east
to west.

The Project Area is an extension of the trend at the northern
tip of the Bushveld Complex and is the result of some detailed geophysical,
geochemical and geological work that indicated potential for a package of
Bushveld Complex rocks under the Waterberg Group cover rocks.

Geological Setting, Deposit Type and
Mineralisation

The Bushveld and Molopo Complexes in the Kaapvaal Craton are
two of the most well-known mafic/ultramafic layered intrusions in the world. The
Bushveld complex was intruded about 2,060 million years ago into rocks of the
Transvaal Supergroup, largely along an unconformity between the Magaliesberg
quartzite of the Pretoria Group and the overlying Rooiberg felsites. It is
estimated to exceed 66,000km2 in extent, of which about 55% is
covered by younger formations. The Bushveld Complex hosts several layers rich in
Platinum Group Metals (PGM), chromium and vanadium, and constitutes the world's
largest known resource of these metals.

The Waterberg Project is situated off the northern end of the
previously known Northern Limb, where the mafic rocks have a different sequence
to those of the Eastern and Western Limbs.

PGM mineralisation within the Bushveld package underlying the
Waterberg Project is hosted in two main layers: the T Zone and the F Zone.

The T Zone occurs within the Main Zone just beneath the contact
of the overlaying Upper Zone. Although the T Zone consists of numerous
mineralised layers, three potential economical layers were identified, T1, T2HW
and T2 - Layers. They are composed mainly of anorthosite, pegmatoidal gabbros,
pyroxenite, troctolite, harzburgite, gabbronorite and norite.

The F Zone is hosted in a cyclic unit of olivine rich
lithologies towards the base of the Main Zone towards the bottom of the Bushveld
Complex. This zone consists of alternating units of harzburgite, troctolite and
pyroxenites. The F Zone was divided into the FH and FP layers. The FH layer has
significantly higher volumes of olivine in contrast with the lower lying FP
layer, which is predominately pyroxenite. The FH layer is further subdivided
into six cyclic units chemically identified by their geochemical signature,
especially chrome. The base of these units can also be lithologically identified
by a pyroxenite layer.

Project Geology

The Waterberg Project is located along the strike extension of
the Northern Limb of the Bushveld Complex. The geology consists predominantly of
the Bushveld Main Zone gabbros, gabbronorites, norites, pyroxenites and
anorthositic rock types with more mafic rock material such as harzburgite and
troctolites that partially grade into dunites towards the base of the package.
In the southern part of the project area, Bushveld Upper Zone lithologies such
as magnetite gabbros and gabbronorites do occur as intersected in drillhole
WB001 and WB002. The Lower Magnetite Layer of the Upper Zone was intersected on
the south of the project property (Disseldorp) where drillhole WB001 was drilled
and intersected a 2.5m thick magnetite band.

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A general dip of 34o - 38o towards the west is observed from
drillhole core for the layered units intersected on Waterberg property within
the Bushveld Package (Error! Reference source not found.). However, some
blocks may be tilted at different angles depending on structural and /or
tectonic controls. And generally the Bushveld package strikes south-west to
north-east.

The Bushveld Upper Zone is overlain by a 120m to 760m thick
Waterberg Group which is a sedimentary package predominantly made up of
sandstones, and within the project area the two sedimentary formations known as
the Setlaole and Makgabeng Formations constitute the Waterberg Group. The
Waterberg package is flat lying with dip angles ranging from to 2o to 5o.
Error! Reference source not found. gives an overview of interpreted
geology for the Waterberg Project.



Exploration Status

The Waterberg Project is at an advanced exploration status and
includes Inferred and Indicated Mineral Resource estimates. Exploration further
north has investigated the interpreted strike extension of the Bushveld Complex.
As a result of this drilling program portions of this area are classified as an
Inferred Mineral Resource. A multidisciplinary project team established by PTM
identified and ranked 108 Southern African targets through an interactive
process using an expert ranking system. These are located in mafic to ultramafic
rocks and have the potential, or have already been shown, to host PGM and Ni
deposits. Targets were characterised by varying maturity. In addition, an
innovative approach was adopted, which also resulted in the identification and
definition of out of the box targets defining some 12 targets. Application for
the prospecting rights in respect of four of these targets was made.

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Farm boundaries were defined for these various target areas.
Project activities began with the deed searches, detailed desk top studies of
the selected areas, and the subsequent compilation of prospecting right
applications.

Topographical and aerial maps for Waterberg at a scale of
1:10,000 were used for surface mapping. A combination of the surface maps and
the public aeromagnetic and gravity maps formed the basis for the structural
map.

Ground exploration work undertaken includes geological mapping
and ground verification of the geology presented in various government and
academic papers. The major faults and SMZ geology described was confirmed to
exist within the property. Contact relationships with the Bushveld Complex were
not seen due to the Waterberg cover rock and quaternary sand deposits.

Data for any outcrop observed (or control point) was recorded.
Each of such outcrop points had the following recorded in the field book:
points name, description of the outcrops rock, identified rock name, XY
coordinate points, and if well oriented the dip and strike for the outcrop.

In March 2010, two north-south geo-chemical sampling lines were
undertaken. Sampling stations were made at intervals of 25m. Each sample hole
was allowed to go to a minimum depth of 50cm to 1.00m at most.

During December 2011 and January 2012, two additional
north-south geo-chemical sampling lines on the property Niet Mogelyk 371LR were
also sampled. These two lines were done to target the east-west trending dykes
that are running through this property and the sampling stations were set at 50m
apart.

During January 2013, an additional three geo-chemical lines
were taken on the farms Bayswater 370LR and Niet Mogelyk 371LR. These samples
were taken to investigate soil anomalies discovered by the previous sampling
programs.

Initial detailed ground geophysical surveys were confined to
the Waterberg Project and were funded by the JV partner JOGMEC. The detailed
airborne survey was completed predominantly over the Waterberg Extension
Project, with some overlap over the defined Bushveld edge geology on the
advanced stage Waterberg JV Project to obtain response characteristics.

A second phase of Geophysical Survey was also conducted on the
area from mid-August 2011 to September 2011.

Two additional north-south ground magnetics lines were surveyed
over the farm Ketting 368LR in November 2012. This information was used to
interpret and locate east-west striking structures.

An airborne gravity survey was completed on 100m and 200m line
spacing. An interpretation of the results of the survey suggests that there may
be continuity to the Bushveld Complex rocks to the northwest and north, which
has the potential to host PGM mineralisation within the Project area.

PTM contracted FUGRO Airborne Surveys (Pty) Ltd. to conduct
airborne FALCON® gravity gradiometry and total field magnetic surveys. The
target for the survey was the interpreted edge sub-cropping of the Bushveld
Complex to which the Waterberg sediments form the regional hanging wall.
Conducted in April 2013, the survey was comprised of 2306.16 line kilometres of
Airborne Gravity Gradiometry (AGG) data and 2469.35 line kilometres of magnetic
and radiometric data. The total extent of the survey covered approximately 25km
of interpreted Bushveld Complex edge in the north-eastern part of the Project
area.

Interpretation was based on creating a starting model using the
known geology from drilling at further north and linking it to the airborne
response. The geologic units were modelled in three dimensions in order to
facilitate a three dimensional stochastic inversion of the geometry and density
of the units making use of the gravity gradient data. Average rock unit densities
were extrapolated from the adjacent Waterberg JV Project.

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A total of nine ground gravity traverses were completed by
Geospec Instruments (Pty) Ltd along roads and tracks. The survey lines were
designed to traverse across the projected edge of the Bushveld Complex in the
same area covered by the airborne survey as ground confirmation of the airborne
results. The two surveys were compared and good correlation between gravity data
sets noted. In planning the ground survey, one control line over the known
deposit edge at the point where it projected from the southern part of the
Project was completed in order to acquire a signature profile over a known
source to compare the remaining regional lines. The interpretation of the linked
ground gravity profiles suggests that there may be a northwest trending
continuity to the Bushveld Complex rocks which have the potential to host PGM
mineralisation.

Sample Preparation

The sampling methodology concurs with PTM protocol based on
industry best practice. The quality of the sampling is monitored and supervised
by a qualified geologist. The sampling is done in a manner that includes the
entire potentially economic unit.

Analysis

For the present database, field samples have been analysed by
two different laboratories: the primary laboratory is currently Set Point
laboratories (South Africa). Genalysis (Australia) is used for referee test work
to confirm the accuracy of the primary laboratory.

Samples are received, sorted, verified and checked for moisture
and dried if necessary. Each sample is weighed and the results are recorded.
Rocks, rock chips or lumps are crushed using a jaw crusher to less than 10mm.
The samples are then milled for 5 minutes in a Labtech Essa LM2 mill to achieve
a fineness of 90% less than 106μm, which is the minimum requirement to ensure
the best accuracy and precision during analysis.

Samples are analysed for Pt (ppm), Pd (ppm) Rh (ppm) and Au
(ppm) by standard 25g lead fire-assay using a silver collector. Rh (ppm) is
assayed using the same method but with a palladium collector and only for
selected samples. After pre-concentration by fire assay the resulting solutions
are analysed using ICP-OES (Inductively Coupled PlasmaOptical Emission
Spectrometry).

The base metals (copper, nickel, cobalt and chromium) are
analysed using ICP-OES (Inductively Coupled Plasma  Optical Emission
Spectrometry) after a multi-acid digestion. This technique results in almost
total digestion.

The drilling, sampling and analytical aspects of the project
are considered to have been undertaken to industry standards. The data is
considered to be reliable and suitable for mineral resource estimation.

Drilling

The data from which the structure of the mineralised horizons
was modelled and grade values estimated were derived from a total of 248,748
meters of diamond drilling. This report updates the mineral resource estimate
using this dataset. The drillhole dataset consists of 231 drillholes and 373
deflections.

The management of the drilling programmes, logging and sampling
have been undertaken from two facilities: one at the town of Marken in Limpopo
Province, South Africa and the other on the farm Goedetrouw 366LR within the
prospecting right area.

Drilled core is cleaned, de-greased and packed into metal core
boxes by the drilling company. The core is collected from the drilling site on a
daily basis by PTM personnel and transported to the coreyard. Before the core is
taken off the drilling site, core recovery and the depths are checked. Core
logging is done by hand on a pro-forma sheet by qualified geologists under
supervision of the Project Geologist.

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Based on the target generation and the results of the
geochemical sampling and geochemical surveys, two drillholes were initially
drilled between July and October 2010 on the farm Disseldorp 369LR. A total of
1934.77m was drilled for the first two drillholes in 2010. Drilling resumed in
2011 on the farm Ketting 368LR. The geological information revealed by this
drillhole led to the extension of the drilling campaign in 2012, 2013 and 2014.

Subsequent to the drillholes used for the mineral resource
estimate of 12 June 2014, an additional 53,684m representing 56 exploration
drillholes and 58 deflections have been completed on the southern part of the
Waterberg Project, the JV. These consist primarily of infill drilling within the
previous drilling grid. A combined total of 197,570m meters and 182 diamond
drillholes that have been drilled by the end of December 2014. Based on the
strike projections from the southern JV area, modelling of regional government
data, detailed airborne gradient gravity and total field magnetic responses
along with ground gravity confirmation, drill targets were generated and
drilling commenced in October 2013 on the farm Early Dawn 361LR in the northern
project extension.

Subsequent to the drillholes used for the mineral resource
estimate of 12 June 2014, an additional 17,775m in 12 exploration drillholes and
26 deflections were completed on the northern part of the project area, the
Extension, achieving a total of 51,177.91 meters and 49 diamond drillholes. Of
these drillholes, 39 were drilled on the farms Early Dawn 361LR and Goedetrouw
366LR portion 1.

Quality Control and Quality Assurance

PTM have instituted a complete QA/QC programme including the
insertion of blanks and certified reference materials as well as referee
analyses. The programme is being followed and is considered to be to industry
standard. The data is as a result, considered reliable.

Mineral Resources

This report documents the mineral resource estimate - Effective
Date: 20 July 2015. The mineral resources are reported in the table below.
Infill drilling over portions of the project area and new estimation methodology
has made it possible to estimate a new mineral resource estimate and upgrade
portions of the mineral resource to the Indicated category. The Mineral Resource
Statement is summarised in Table 2.

Table 2: Summary of Mineral Resources effective 20 July
2015 on 100% Project Basis

T Zone 2.5 g/t Cut-off

Resource Category
    Cut-off
    Tonnage
    Grade
    Metal2PGE+Au
    Pt
    Pd
    Au
    2PGE+Au
    Cu
    Ni
    2PGE+Aug/t
    Mt
    g/t
    g/t
    g/t
    g/t
    %
    %
    kg
    MozIndicated
    2.5
    16.53
    1.28
    2.12
    0.85
    4.25
    0.16
    0.09
    70253
    2.26Inferred
    2.5
    33.56
    1.25
    2.09
    0.83
    4.17
    0.13
    0.08
    139945
    4.50


F Zone 2.5 g/t Cut-off

Resource
      Category
    Cut-off
    Tonnage
    Grade
    Metal2PGE+Au
    Pt
    Pd
    Au
    2PGE+Au
    Cu
    Ni
    2PGE+Aug/t
    Mt
    g/t
    g/t
    g/t
    g/t
    %
    %
    kg
    MozIndicated
    2.5
    104.47
    0.93
    2.00
    0.15
    3.08
    0.06
    0.16
    321768
    10.35Inferred
    2.5
    212.75
    0.93
    2.01
    0.15
    3.09
    0.07
    0.17
    657398
    21.14


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Platinum Group Metals Ltd. 2015
Annual Information Form

2PGE+Au = Platinum Group Elements (Pd+Pt) and Au. The
cut-offs for Mineral Resources have been established by a qualified person after
a review of potential operating costs and other factors. The Mineral Resources
stated above are shown on a 100% basis, that is, for the Waterberg Project as a
whole entity. Conversion Factor used  kg to oz = 32.15076. Numbers may not add
due to rounding. Resources do not have demonstrated economic viability.

Mineral Resources at Waterberg on a 100% project basis have
increased to an estimated 25.64 million ounces 2PGE+Au in the Inferred category
plus 12.61 million ounces 2PGE+Au in the Indicated category, from 29 million
ounces 3PGE+Au Inferred in June 2014:

| |  | Inferred 246 million tonnes grading 3.25 g/t 3E (0.98 g/t
      Pt, 2.11 g/t, Pd, 0.16 g/t Au, 2.50 g/t cut-off);                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                 
| |  | Indicated 121 million tonnes grading 3.24 g/t 3E (0.97g/t
      Pt, 2.11 g/t, Pd, 0.16g/t Au, 2.5 g/t cut-off);                                                                                                 
| |   |                                                                                                                                                                                                                 
| |  | Previous Resource: Inferred 287 million tonnes grading
      3.15 g/t 4E, (0.94g/t Pt, 1.92 g/t Pd, 0.04 g/t Rh, 0.25 g/t Au, 2.0 g/t
      cut-off), (Ken Lomberg Alan Goldschmidt QPs effective June 12, 2014)

|1. | The Mineral Resources are classified in accordance with
      the SAMREC standards. There are certain differences with the "CIM
      Standards on Mineral Resources and Reserves"; however, in this case the QP
      believes the differences are not material and the standards may be
      considered the same. Mineral Resources do not have demonstrated economic
      viability and Inferred resources have a high degree of uncertainty.
      Mineral Resources may never be upgraded or converted to
reserves.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|2. | The Mineral Resources and are provided on a 100% project
      basis and Inferred and Indicated categories are separate and the estimates
      have an effective date of July 20th 2015.                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|3. | A cut-off grade of 2.5g/t 3E for both the T and the F
      Zones is applied to the selected base case Mineral Resources. Previously a
      2g/t 4E cut-off was applied to the resources. For comparison with the
      previous resources a 2g/t cut-off on the updated resource model is
      presented above.                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|4. | Cut off for the T and the F Zones considered costs,
      smelter discounts, concentrator recoveries from previous engineering work
      completed on the property by the Company. The Resource model was cut-off
      at an arbitrary depth of 1250m, although intercepts of the deposit do
      occur below this depth.                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|5. | Mineral Resources were completed by Charles Muller of CJM
      Consulting.                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|6. | Mineral Resources were estimated using Kriging methods
      for geological domains created in Datamine from 220 original holes and 270
      deflections. A process of geological modelling and creation of grade
      shells using indicating kriging was completed in the estimation
      process.                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|7. | The estimation of Mineral Resources has taken into
      account environmental, permitting and legal, title, taxation,
      socio-economic, marketing and political factors.                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|8. | The Mineral Resources may be materially affected by
      metals prices, exchange rates, labour costs, electricity supply issues or
      many other factors detailed in the Company's Annual Information
    Form.                                                                                                                                                                                                                                                                                                       

The data that formed the basis of the estimate are the
drillholes drilled by PTM which consist of geological logs, the drillhole
collars, the downhole surveys and the assay data. The area where each layer was
present was delineated after examination of the intersections in the various
drillholes.

There is no guarantee that all or any part of the Mineral
Resource will be converted to a Mineral Reserve.

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Platinum Group Metals Ltd. 2015
Annual Information Form

Interpretation and Conclusions

Exploration drilling by PTM has intersected layered magmatic
PGM mineralisation in what is interpreted to be the northern extension of the
Northern Limb of the Bushveld Complex under the Waterberg Group rocks. This has
confirmed the existence of mineralised zones with potentially economic
concentrations of PGMs. Improved understanding of the geology allowed improved
Resource estimations which provided increases in the Resources reported.

The Estimation was undertaken using best practises in terms of
geostatistics.

The objectives in terms of adherence to the Scope of this Study
were met in that an updated resource model was produced.

The delineation of the F Zone and T Zone units has been
advanced due to better understanding of the geology. As with the previous
resource estimate, this mineral resource estimate used mineralised layers
identified within this project area. The database used for this estimate
consisted of 231 drillholes and 374 deflections, of those 220 relevant
drillholes and 270 deflections were used for estimation. The mineralisation is
considered open down-dip and along strike.

Recommendations

It is recommended that exploration drilling continues in order
to advance the geological confidence in the deposit through infill drilling.
This will provide more data for detailed logging and refined modelling. This is
expected to confirm the geological continuity and allow the declaration of
further Indicated Mineral Resources.

Given the results of the diamond drilling on the northern area
and the extent of target areas generated by geophysical surveys, the completion
of the planned exploration drilling is recommended north of the location of the
current exploration programme. The objective of the exploration drilling would
be to find the limit of the current deposit, confirm the understanding of the F
Zone and allow appropriate selection of the potential mining cut. This will
improve geoscientific confidence in order to upgrade mineral resources to the
Indicated category.

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

Non-Material Mineral Property Interests

The non-material mineral property interests of the Company
include the War Springs and Tweespalk projects located in South Africa and
various mineral property interests in Ontario, Canada, the Northwest
Territories, Canada and Newfoundland and Labrador, Canada. These non-material
property interests are not, individually or collectively, material to the
Company and are also described in the Companys Financial Statements and
Managements Discussion and Analysis for the year ended August 31, 2015, copies
of which may be obtained online at www.sedar.com.

SOUTH AFRICAN REGULATORY FRAMEWORK

The Company is subject to South African government regulations
that affect all aspects of the Companys operations. Accordingly, the sections
below set out the primary laws and regulatory concepts to which the Company is
subject.

Black Economic Empowerment in the South African Mining
Industry

The transition from an apartheid regime to a democratic regime
brought with it a commitment by the South African state, as enshrined in the
Constitution, to take legislative and other measures to redress the results of
past racial discrimination against black South Africans, or as the Mining
Charter defines them, HDSAs. The MPRDA uses the term historically
disadvantaged person with reference to HDSAs.

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Platinum Group Metals Ltd. 2015
Annual Information Form

Under the MPRDA, the concept includes any association, the
majority of whose members are HDSAs as well as juristic persons if HDSAs own and
control the majority of the shares and control the majority of the shareholders
votes. The Mineral and Petroleum Resources Development Amendment Bill, 2013 to
the MPRDA (the Amendment Bill) was approved by the Parliamentary
Portfolio Committee on Mineral Resources and by the National Council of
Provinces during March 2014, as well as by the national parliament during April
2014. The Amendment Bill was returned to Parliament by the President due to
concerns over the constitutionality of various provisions. It is uncertain
whether the Amendment Bill in its current form will be assented to, as queries
have been raised regarding the administrative processes followed in passing the
Amendment Bill. In the event the Amendment Bill is passed in its current form,
it will, among other things, amend the term HDSA to refer to South African
citizens, a category of persons or a community, disadvantaged by unfair
discrimination before the Constitution came into operation which should be
representative of the demographics of the country. In addition, the Amendment
Bill will amend the definition of the MPRDA to include the Mining Charter, the
Codes of Good Practice for the Minerals Industry (the Mining Codes) and
the Housing and Living Conditions Standards for the Minerals Industry,
2009 (Standards), as discussed below. The effect of the Amendment
Bill will be to give the South African Minister of Mineral Resources (the
Minister) the authority to suspend or cancel prospecting or mining
rights in the event that the holder is in breach of the Mining Charter, the
Mining Codes or the Standards.

This concept and process to take legislative and other measures
to redress the results of past racial discrimination against black South
Africans is known in South Africa as broad-based black economic empowerment, or
BEE. The mining industry was one of many industries identified by the South
African government as requiring reform to bring about equitable benefit from
South Africas mineral industry to all South Africans and to promote local and
rural development and social upliftment of communities affected by mining.

The regulatory regime governing the South African mining
industry has therefore fundamentally changed over the past decade. Legislation
governing mining and BEE within the mining sector includes, among other laws,
the MPRDA, the Mining Codes and the Standards pursuant to the MPRDA, the Mining
Charter, the Mining Charter Scorecard and the Mining Titles Registration Act
No. 16 of 1967 (as amended). The aforementioned legislation, however, is
industry specific and the generic BEE regulatory framework in South Africa
regulated in terms of the BEE Act, which sets outs the South African
governments policy in respect of the promotion of BEE. The BEE Act also permits
the Minster of Trade and Industry to publish generic BEE Codes of Good Practice
(Generic BEE Codes), being codes of good practice that address, among
other things, the indicators to measure BEE and the weightings to be attached to
such indicators.

The Generic BEE Codes were originally published in 2007 and set
out seven indicators or elements in terms of which BEE compliance is measured.
Each element has a scorecard in terms of which various sub-elements are set out,
together with a target for compliance with each sub-element and a corresponding
number of weighting points. An entitys BEE compliance is measured in terms of
each of these scorecards and the aggregate score will then determine that
entitys BEE compliance level. Independent BEE verification agencies are
authorized to verify an entitys compliance and provide it with a verification
certificate which will set out its score and confirm its BEE compliance level.
The seven elements of BEE compliance set out in the original Generic BEE Codes
are ownership (which measures the extent to which black people own the measured
entity), management control (which measures the extent to which black people
form part of the board of directors and top management of the entity),
employment equity (which measures the extent to which black people are employed
with the various management levels of the entity), skills development (which
measures the extent to which the entity has undertaken skills training for the
benefit of its black employees), preferential procurement (which measures the
extent to which the entity procures goods and services from BEE compliant and
black-owned companies), enterprise development (which measures the extent to
which the entity has contributed towards the development of black-owned or BEE
compliant companies), and socio-economic development (which measures the extent
to which the entity has contributed towards the economic development of black
people).

The original Generic BEE Codes were amended on October 11, 2013
and such amendments became effective from May 1, 2015. Generally-speaking the
amended Generic BEE Codes seek to make BEE compliance more onerous to achieve. The total number of points
required to achieve certain levels of BEE compliance have been increased. The
elements of management control and employment equity have been consolidated into
a single element referred to only as management control, and the elements of
preferential procurement and enterprise development have been consolidated into
a single element referred to as supplier and enterprise development. The
elements of ownership, skills development and supplier and enterprise
development are classified as priority elements to which minimum thresholds of
compliance attach and subjects an entity to a penalty of a reduction in its BEE
compliance status by one level if the entity fails to achieve any of such
minimum thresholds.

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Platinum Group Metals Ltd. 2015
Annual Information Form

In addition, the BEE Act has recently been amended by The
Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013 (the
BEE Amendment Act), which came into operation on October 24, 2014.

The provisions of the new section 3(2) set out in the BEE
Amendment Act states that in the event of any conflict between this Act and
any other law in force immediately prior to the date of commencement of the
Broad-Based Black Economic Empowerment Act, 2013, this Act prevails if the
conflict specifically relates to a matter dealt with in this Act (the
Trumping Provision). The BEE Amendment Act provides that section 3(2)
will come into effect one year after the date on which the President proclaims
the BEE Amendment Act into law and therefore became operative on October 24,
2015. However, on October 30, 2015 the Minister of Trade and Industry exempted
the DMR from applying the BEE Trumping Provision for a period of twelve months
on the basis that the alignment of the Mining Charter with the BEE Act and the
BEE Codes is still ongoing.

The new section 10(1)(a) set out in the BEE Amendment Act
provides that every organ of state and public entity must apply any relevant
code of good practice issued in terms of this Act in determining qualification
criteria for the issuing of licences, concessions or other authorizations in
respect of economic activity in terms of any law. This will require all
governmental bodies to apply the Generic BEE Codes or other relevant codes of
good practice when procuring goods or services or issuing licenses or other
authorizations under any other laws, and to penalize fronting or
misrepresentation of BEE information.

The provisions of section 3(2) and 10(1)(a) indicate that the
DMR would be obliged to apply the provisions of the BEE Act and of any BEE code
of good practice gazetted in terms of the BEE Act when issuing rights,
permissions or permits in terms of the MPRDA in the future.

A code of good practice refers to the Generic BEE Codes or any
sector-specific code of good practice which has been developed and gazetted in
terms of the provisions of the BEE Act after consultation with the relevant
industry stakeholders and the Department of Trade and Industry. It does not
include the Mining Charter. The implications of the above provisions of the BEE
Amendment Act are that unless a mining sector code is developed and gazetted, or
unless a further exemption is granted by Ministers of Trade and Industry, prior
to 1 November 2016, the DMR would not be entitled to apply the Mining Charter
when issuing rights, permissions or permits (after commencement of the
abovementioned sections of the BEE Amendment Act) and would be required to apply
the Generic BEE Codes. While the target for ownership under the Generic BEE
Codes is the same as in the Mining Charter i.e. 26%, the remaining elements in
terms of which BEE compliance is measured are materially different from those
set out in the Mining Charter. In addition, the extent of BEE compliance is
determined under the Generic BEE Codes with reference to an entitys overall
score and corresponding BEE compliance level, and the Mining Charters scorecard
does not contain the same methodology. Thus, if the Generic BEE Codes were to
apply to the mining industry, it would place the industry at a disadvantage and
create uncertainty. The DMR and industry bodies are aware of the implications of
the Trumping Provision and are likely to address this in the near future.

The new section 10(2)(a) set out in the BEE Amendment Act
provides that the Minister may, after consultation with the relevant organ
of state or public entity, exempt the organ of state or public entity from a
requirement contained in subsection (1) or allow a deviation therefrom if
particular objectively verifiable facts or circumstances applicable to the organ
of state or public entity necessitate a deviation. Such an exemption or
deviation is required to be published in the government gazette. It seems
possible but it is not certain whether the DMR could apply for such an exemption
in respect of the mining industry.

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Platinum Group Metals Ltd. 2015
Annual Information Form

It is important to bear in mind that none of the Mining
Charter, the Mining Charter Scorecard or the Mining Codes are drafted as
legislative documents. They are instruments of policy and as such are frequently
ambiguous, loosely worded and difficult to interpret with precision.

The MPRDA seeks to facilitate participation by HDSAs in mining
ventures. Complying with the HDSA regime is a prerequisite for being granted and
maintaining prospecting and mining rights. Every application for a mining right
under the MPRDA must demonstrate that the granting of such right will:

| | substantially and meaningfully expand
      opportunities for HDSAs, including women, to enter the mineral and
      petroleum industry in order to benefit from the exploitation of the
      nations mineral and petroleum resources; and
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                             
| | promote employment and advance the social and
      economic welfare of all South Africans.                                                                                                                                                 

The Mining Charter

The original mining charter was developed to give substance and
guidance to the empowerment provisions under the Mining Charter, which came into
effect on August 13, 2004. The Mining Charter set out a number of targets which
were to be achieved by mining companies by 2009 and 2014. Among other targets,
mining companies had to achieve a 15% HDSA ownership by 2009 and a 26% HDSA
ownership by 2014. Ownership relates to ownership of mining assets, whether
through the holding of equity, partnership, joint venture or direct holding. On
July 14, 2004, the (then) Department of Minerals and Energy released a
clarification document (Clarification Document) to provide policy
guidance on the interpretation and implementation of the MPRDA and the Mining
Charter. This document was intended to clarify the BEE requirements for unused
mining or prospecting licenses and pending prospecting right applications.
However, the Clarification Document concluded by stating that all other
applications for rights not mentioned in the Clarification Document and in the
custodianship of the state will be subject to a minimum of 26% BEE
participation. Consequently, and as a matter of policy, the DMR required and
continues to require a minimum 26% HDSA ownership for the grant of all new
mining right applications.

Notwithstanding the uncertainties in BEE legislation applicable
to mining companies with regard to the measurement of HDSA ownership, it is
accepted practice (as confirmed in section 2.1.2 of the Mining Codes) that the
so-called flow-through and modified flow-through principles are applicable to
the calculation of indirectly held HDSA interests (i.e. where there is partial
HDSA ownership in a corporate structure above the level of the company holding
the prospecting or mining right). In terms of the flow-through principle, the
level of indirect ownership, proportionally reduced to reflect partial HDSA
shareholding in intermediate companies, would be calculated to determine the
proportional indirect HDSA shareholding in the company holding the right. Under
the modified flow-through principle, a company with more than 50% HDSA ownership
(defined as a HDSA Company in the Mining Charter) may, at any one level in a
corporate structure, attribute 100% HDSA ownership to that company for the
purposes of applying the flow-through principle.

On September 13, 2010, the current Mining Charter came into
effect setting targets (some of which remain the same as those in the previous
mining charter) to be achieved by mining companies by December 31, 2014 (the
implementation of which needs to be reported to the DMR by mining companies in
2015), which targets include:

| | Ownership: this entails 26% meaningful economic
      participation by HDSAs and 26% full shareholder rights for HDSAs. The
      Mining Charter refers to BEE entities as opposed to HDSA companies but
      retains the 26% ownership target.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                 
| | Housing and living conditions: occupancy rate
      of employee accommodations of one person per room and all conversion of
      employee hostels must be fully achieved.                                                                      

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Platinum Group Metals Ltd. 2015
Annual Information Form

| | Procurement and enterprise development:
|- | ---------------------------------------

| |  | a minimum procurement of 40% of capital goods, 70% of
      services and 50% of consumer goods from BEE entities; and                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                  
| |  | ensure that multinational suppliers of capital goods
      contribute at least 0.5% of their annual income generated from local
      mining companies towards a fund for the purposes of socio- economic
      development of local communities.

| | Employment equity: 40% HDSA participation at
      Board level, at executive committee level, in middle management, in junior
      management and 40% HDSA participation within core skills.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                              
| | Human resource development: 5% human resource
      development expenditure focused on HDSAs as a percentage of total annual
      payroll.                                                  
|  |                                                                                                                                                                                              
| | Mine community development: implementation of
      approved community projects.  Sustainable development and growth:                                                                       

| |  | implementation of approved EMP measured
      annually against the approved plans;                                         
| | - | ---------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                            
| |  | implementation of action plans on health and
      safety measured annually against the approved plans; and                
| |   |                                                                                                                            
| |  | utilization of South African based research
      facilities for the analysis of all South African sourced mineral samples.

| | Beneficiation: contribute a percentage of additional
      production volume towards local beneficiation of mineral commodities in
      accordance with the beneficiation strategy introduced pursuant to the
      terms of section 26 of the MPRDA. No such strategy has yet been finalized.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                
| | Reporting: submission of annual reports to the DMR in
      respect of compliance with the Mining Charter.                                                                                                                                                                                     

The Mining Charter includes targets, measures and weightings by
which mining right holders are assessed against the obligations according to the
Mining Charter Scorecard. Failure of a company to meet its obligations in
relation to the Mining Charter could lead to the suspension or cancellation of
its New Order Rights and could have a negative impact on applications for New
Order Rights.

New Order Mining and Prospecting Rights Under the MPRDA

All of the Companys prospecting and mining rights are
so-called new order rights (i.e. rights granted under the MPRDA) as opposed to
old order rights, being rights granted under pre-MPRDA legislation. Under the
MPRDA, mining companies operating in South Africa were required to apply for
conversion of old order rights into new order prospecting and mining rights
issued by the South African state in terms of the MPRDA. New order rights in
respect of mining are granted for a maximum period of 30 years, with renewals of
up to 30 years at a time. Prospecting rights are valid for a period of five
years, with one renewal of up to three years. Furthermore, the MPRDA provides
for a retention period after prospecting of up to three years with one renewal
of up to two years, subject to certain conditions. The holder of a prospecting
right granted under the MPRDA has the exclusive right to apply for and, subject
to compliance with the requirements of the MPRDA, to be granted, a mining right
in respect of the prospecting area in question.

The new order rights are transferable only with the approval of
the Minister and are subject to various terms and conditions, including
commencement of operations within specified periods, maintenance of continuing
and active operations and compliance with work programs, social and labour
plans, EMPs and empowerment requirements.

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New order rights can be suspended or cancelled by the Minister
if a holder has breached its obligations under the terms of the rights and has
failed to remedy such breach after written notice of the breach from the
Minister and after being given an opportunity to respond. In addition, mining
rights could potentially be cancelled for non-compliance with the Mining
Charter.

Resource Nationalism

The concept of resource nationalism encompasses a range of
measures, such as expropriation or taxation, whereby governments increase their
economic interest in corporate entities exploiting natural resources, with or
without compensation. The current South African government has publically stated
that it does not intend to nationalize the mining industry.

At its 53rd national conference in December 2012, the ANC
debated the SIMS Report, and wholesale nationalization was rejected. It was
resolved that state intervention in the economy would focus on beneficiation.
Strategic minerals, which include platinum group metals, coal and iron ore, will
be identified and special public policy measures may be put in place. Further
state interventions could include state ownership through the state mining
company, and mineral resource rents through the imposition of new taxes or a
super-profits tax.

Environment

South Africa has a comprehensive and constantly evolving
environmental regulatory framework. The Constitution entrenches the right to an
environment that is not harmful to human health or well-being and imposes a duty
to protect the environment for the benefit of present and future generations
through reasonable legislative and other measures. The Constitution and NEMA, as
well as various other related laws, grant legal standing to a wide range of
people and interest groups to bring legal proceedings to enforce their
environmental rights, such that claims can be made against private and public
entities as well as the South African government.

Environmental impacts of mineral resource operations (including
prospecting and mining of mineral resources and exploration and production of
petroleum) are, at present, primarily regulated by three pieces of legislation,
namely, the MPRDA, NEMA and the National Water Act No. 36 of 1998 (the
NWA).

South African environmental law is largely permit-based and
requires businesses whose operations may have an environmental impact to obtain
licenses and authorizations from various governmental authorities for those
operations. These typically contain conditions that may be reviewed periodically
to make the environmental standards which the holder is required to meet more
stringent. Environmental legislation also stipulates general compliance
requirements and incorporates a polluter pays principle, by imposing a duty on
specified parties to take reasonable measures to assess and address pollution
(even that which was authorized by law). A failure to take such measures may
result in governmental authorities taking measures against, and recovering costs
from, a wider range of parties than the one on whom the duty primarily rests.
This latter group includes a successor in title to a person or a shareholder of
a company, who caused the pollution, although the potential liability of
shareholders has not yet been considered by South African courts. This aspect of
the law is retrospective in its application.

NEMA provides for the appointment of Environmental Management
Inspectors (EMIs) and Environmental Mineral Resource Inspectors
(EMRIs) at the Department of Environmental Affairs and DMR
respectively. These EMIs and EMRIs have wide-ranging powers and can undertake
both announced and unannounced inspections and investigations. These have
occurred at some of South Africas major industrial facilities. Criminal
prosecutions have been initiated and enforcement notices issued following a
number of these inspections. A focus of the inspections to date by EMIs has been
primarily on the cement and refinery sectors, as well as the alloy, iron and
steel industry. In the previous few years, EMIs have, however, focused their
attention on those industries that impact heavily on air quality, including the
platinum sector.

Under NEMA, it is a criminal offence for any person unlawfully
and intentionally or negligently to commit any act or omission which causes, has
caused or is likely to cause significant pollution or degradation of the
environment or unlawfully and intentionally or negligently commit any act or
omission which detrimentally affects or is likely to affect the environment in
a significant manner. A maximum fine of up to Rand 10 million and/or a prison
term of up to ten years may be imposed for such an offence.

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Directives or compliance notices can also be issued under NEMA
or the MPRDA for the temporary or permanent shut down of facilities at a mining
operation or the entire mining operation. Directors and certain employees can
also be held criminally liable in their personal capacity under NEMA.

The environmental regulation of mining is under transition.
When the transition is complete, NEMA will be the primary environmental
legislation regulating mining and not the MPRDA. Due to this transition, the
majority of the MPRDA's environmental regulation provisions were deleted
("Pre MPRDA Amendment Act Environmental Provisions") and the National
Environmental Management Laws Amendment Act, No. 25 of 2014 ("NEMLAA")
has introduced specific provisions regulating mining into NEMA. The Minister of
Mineral Resources will however retain the bulk of his environmental regulation
competencies under the NEMLAA's amendments, to be undertaken in accordance with
NEMA. This creates some gaps, as not all of the necessary amendments have yet
commenced under the MPRDA or necessary regulations published under NEMA.

Under the Pre MPRDA Amendment Act Environmental Provisions,
before 8 December 2014, Environmental Management Plans and Programmes
("EMPlan" and "EMP") were required to be approved by the relevant
delegated authority at the DMR before a prospecting right or mining right
respectively became effective.

This position changed on 8 December 2014 when the 2015 EIA
Regulations commenced under NEMA, replacing the 2010 EIA Regulations. Activities
that commenced after this date required an environmental authorisation, as do
associated infrastructure, structures and earthworks directly related to the
prospecting and extraction of a mineral resource. The 2015 EIA, as well as the
repealed EIA Regulations published in 2006 and 2010, also regulate activities
over certain thresholds that are incidental to mining, such as vegetation
clearance, road construction, construction of facilities in proximity to a
watercourse and storage of dangerous goods.

There are presently no provisions in force in the MPRDA or NEMA
regarding pending EMP/EMPlan applications and pending applications for
amendments of such EMP/EMPlans. Certain 2013 amendments to the MPRDA (following
the implementation of the Mineral and Petroleum Resources Development Act No. 49
of 2008 ("MPRDA Amendment Act, 2008")) introduced various transitional
arrangements. Such provisions, however, have also not yet commenced. The 2013
amendments provide that an EMP or EMPlan approved under the MPRDA before and at
the time of the NEMA 2008 Amendment Act coming into force will be deemed to have
been approved and an environmental authorisation issued in terms of NEMA. The
Amendment Bill proposes the inclusion of an additional section, whereby all
pending applications lodged under the MPRDA before the NEMLAA came into force
would be processed under the MPRDA, as if the NEMLAA is not in operation. The
Amendment Bill also amends MPRDA Amendment Act, 2008's transitional provisions
to correct the incorrect reference of the NEMA 2008 Amendment Act to the NEMLAA.
The Amendment Bill is not, however, anticipated to be enacted into law in the
near future and these gaps will remain.

NEMA listed activities also require an environmental
authorisation before being undertaken and no person may commence such an
activity unless the competent authority has granted an environmental
authorisation. It is a criminal offence to commence such an activity without the
required environmental authorisation. A person who has commenced such an
activity without an environmental authorisation may apply for rectification of
this state of affairs.

Under the NWA, water cannot be owned, but is instead held in
trust for the people of South Africa under the States custodianship. An
authorization is required to undertake certain water uses specified in the NWA.
This includes water storage, abstraction, disposal of waste water into the
environment, dewatering a mine; and impacting on watercourse. Generally, large
scale water users, such as mines, are required to either apply for water use
licenses or, in certain cases, only to register water uses. In certain instances
an entity may continue with a water use that was conducted lawfully under the
predecessor to the NWA, the Water Act, No. 54 of 1956, without the
requirement for a water use license. Use without authorization may be considered
unlawful. Regulations published under the NWA regulate water use in relation to
mining activities, providing for limitations on the location of mining
infrastructure and requirements for separation of dirty and clean water systems.
If a water use or water management is deemed unlawful, the Department of Water
and Sanitation (DWS) may issue administrative directives to enforce the
NWAs provisions and criminal proceedings can also be instituted. Penalties for
offenses include a maximum fine and/or imprisonment of Rand 200,000 and five
years, respectively. Upon a second conviction, the maximum fine and/or
imprisonment are Rand 400,000 and ten years, respectively. While significant progress has been made by the DWS in processing
pending water use licenses, a backlog remains.

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The National Environmental Management Air Quality Act No. 39
of 2004 (AQA) regulates air pollution in South Africa and prohibits
the undertaking of activities listed under AQA, including certain mining related
and processing activities, without an Atmospheric Emission License. Minimum
emission standards have been set for each listed activity. Facilities that were
operational before these regulations came into force were afforded a "grace
period" within which to comply with the more stringent air emission standards
contained in the regulations until 2015. Such facilities will need to comply
with even more stringent air emission standards from 2020. If a facility does
not comply with the 2015 air emission standards, upgrading of the facilities
will be necessary in the short term. Additional upgrades may also be required
before 2020 to comply with the 2020 air emission standards. Alternatively an
application to postpone the time period for compliance with air emission
standards may be possible but the grant of any postponement cannot be
guaranteed.

The Waste Act regulates the storage, treatment and disposal of
waste, among other things, including waste generated by the mining sector. The
provisions of the Waste Act are also relevant generally to the Companys
operations. Waste management licences are required for certain waste management
activities, dependent on certain thresholds in relation to the waste. Under
recent amendments to Regulations published under the Waste Act, waste management
licenses are no longer required for waste storage however such activities must
comply with certain norms and standards. Residue stockpiles and deposits
relating to prospecting, mining, exploration or production activities regulated
under the MPRDA were previously exempt from the Waste Act. This has been changed
by recent amendments under theNEMLAA and waste management licenses will
now be required from the Minister for residue stockpiles and deposits from
September 2, 2014, if they constitute waste and if they fall above the
thresholds for which a waste management license is required, unless an entity
lawfully conducted these activities prior to September 2, 2014.

Both the MPRDA and NEMA have provisions regulating
rehabilitation and closure, which are not entirely consistent. The MPRDA
provides that a mineral right holder remains liable for any environmental
liability, pollution, ecological degradation, the pumping and treatment of
extraneous water, compliance to the conditions of the environmental
authorisation and the management and sustainable closure of a mine, until the
Minister of Mineral Resources has issued a closure certificate
("Rehabilitation and Closure Liability"). NEMA provides that a mineral
right holder remains responsible for Rehabilitation and Closure Liability
notwithstanding the issue of a closure certificate.

When the Minister issues a closure certificate, he may retain
any portion of such financial provision for latent and residual safety, health
or environmental impact which may become known in the future.

The Pre-MPRDA Amendment Act Environmental Provisions required
that financial provision for environment rehabilitation and closure costs must
be provided by an applicant for a mineral right prior to the approval of an EMP
or EMPlan. NEMA now requires that this financial provision must be made prior to
the issuing of an environmental authorisation under NEMA.

A mining or prospecting right can be cancelled under the MPRDA
if there is non-compliance with environmental legislation.

In April 2012, Maseve posted an environmental rehabilitation
guarantee of Rand 58.5 million (approximately $7.56 million at the time) as a
requirement of Maseves mining right application. In October 2012, Maseve
entered into an agreement with a third party insurer whereby a bond would be
posted to the credit of the DMR against the Companys Rand 58.5 million
environmental guarantee for its Mining Right and the Companys posted guarantee
would be released back to the Company. The process was completed in fiscal 2013
and the posted guarantee has been returned to the Company. As a term of the
agreement with the third party insurer, in October 2012, Maseve posted Rand 12
million on deposit with the Standard Bank of South Africa against its
environmental guarantee obligation and will make further annual deposits of
approximately Rand 12 million per annum until the full amount of the
environmental guarantee is returned and the third party arrangement will be
wound up or renewed at Maseves election. Interest on deposits will accrue to
Maseve and Maseve will pay an annual fee of approximately Rand 600,000 to the
insurer.

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Mine Safety

Mine safety in South Africa is governed by the MHSA, which is
enforced by the Inspectorate of Mine Health and Safety, a part of the DMR. The
reporting provisions of the MHSA are aligned with the International Labour
Organizations Code of Practice on Recording and Notification of Occupational
Accidents and Diseases. Under the MHSA, the Company is obligated, among other
things, to ensure, as far as reasonably practicable, that the Companys mines
are designed, constructed and equipped to provide conditions for safe operation
and a healthy working environment and the mines are commissioned, operated,
maintained and decommissioned in such a way that employees can perform their
work without endangering their health and safety or that of any other person.
The Company is also obliged to ensure, as far as reasonably practicable, that
persons who are not employees, but who may be directly affected by the Companys
mining activities are not exposed to any hazards relating to their health and
safety. The MHSA also permits mine inspectors to issue safety compliance notices
to mines under section 55 of the MHSA and, should the inspectors feel that the
action is warranted, to temporarily close part or all of the operations under
powers conferred by section 54 of the MHSA, pending compliance with the
directives issued under the compliance notice.

An employer who has been instructed to temporarily close a mine
or any part thereof in a section 54 notice has the remedy of approaching the
Labour Court for urgent relief to suspend the operation of the section 54 notice
until a review application to set aside that notice is determined by the Labour
Court.

The Mine Health and Safety Amendment Act, No. 74 of
2008, which came into effect on May 30, 2009, criminalizes violations of the
MHSA, increases the maximum fines to Rand 1 million per occurrence and creates
the possibility that mining licenses could be revoked for continued safety
violations. A number of guidelines on the implementation of mandatory codes of
practice under sections 9(2) and 9(3) of the MHSA have been issued by the Chief
Inspector of Mines and govern the provision of personal protective equipment for
women in the SA Mining Industry; trackless mobile machines; cyanide management;
underground rail bound equipment; conveyor belt installation for transport of
mineral, material or personnel; and risk-based fatigue management.

Royalty Payments

The Royalty Act, imposes a royalty on the first transfer of
refined or unrefined minerals, payable to the state, calculated on the actual or
deemed gross sales amount at the statutorily determined saleable condition (i.e.
whether the mineral is in a refined or unrefined condition as determined in
accordance with Schedule 1 and 2, respectively, of the Royalty Act).

The royalty rate in respect of refined minerals is calculated
by dividing earnings before interest and taxes, or EBIT (as defined for
purposes of the Royalty Act), by the product of 12.5 times gross revenue,
calculated as a percentage, plus an additional 0.5% . EBIT refers to the taxable
mining income of the holder of the right (with certain exceptions such as no
deduction for interest payable and foreign exchange losses) before assessed
losses but after capital expenditure. There is also an arms length adjustment,
where applicable. A maximum royalty rate of 5% of revenue applies to refined
minerals.

The royalty rate in respect of unrefined minerals is calculated
by dividing EBIT by the product of nine times gross revenue, calculated as a
percentage, plus an additional 0.5% . A maximum royalty rate of 7% applies to
unrefined minerals.

Mining Taxation Review

In the 2013 Budget Speech, the Minister of Finance announced
that the mineral and petroleum royalty regime has broadened the South African
tax base and allowed for increased revenue during periods of high commodity
prices, while providing relief to marginal mines when commodity prices and
profitability are low. The broader review of the South African tax system will
consider whether this approach is sufficiently robust and assess what the most
appropriate mining tax regime is to ensure that South Africa remains a
competitive investment destination.

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To give effect to announcements made by the Minister of Finance
in his 2013 budget speech, the Davis Tax Committee was established to assess
South Africas tax policy framework and its role in supporting the objectives of
inclusive growth, employment, development and fiscal sustainability. The Terms
of Reference of the Davis Tax Committee includes a review of the current mining
tax regime. The Davis Tax Committee submitted its First Interim Report on Mining
on 1 July 2015 and made various recommendations, including that:

| |  | the mining corporate income tax regime be aligned with
      the tax system applicable to other taxpaying sectors generally, leaving
      the royalty system to respond to the non-renewable nature of mineral
      resources; and             
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                  
| |  | the upfront capital expenditure write-off regime be
      discontinued and replaced with an accelerated capital expenditure
      depreciation regime in parity with the write-off periods provided for in
      respect of manufacturing assets.

Exchange Control

South African law provides for Exchange Control which, among
other things, regulates the flow of capital from the Common Monetary Area of
South Africa, Lesotho and Swaziland (CMA). The Currency and
Exchanges Act, No. 9 of 1933 empowers the President of South Africa to make
regulations in regard to any matter directly or indirectly relating to currency,
banking or exchanges. The Minister of Finance is responsible for all matters
regarding exchange control policy, and certain of these powers and functions
have been delegated to the South African Reserve Bank, more specifically the
Financial Surveillance Department.

The Exchange Control Regulations, which are administered by the
Financial Surveillance Department are applied throughout the CMA and regulate
transactions involving South African exchange control residents, including
companies. The basic purpose of the Exchange Control Regulations is to mitigate
the negative effects caused by a decline of foreign capital reserves in South
Africa, which may result in the devaluation of the Rand against other
currencies. It is the stated objective of the authorities to achieve equality of
treatment between residents and non-residents for exchange control purposes as
it relates to inflows and outflows of capital. While the South African
government has relaxed exchange controls in recent years, the Company expects
current exchange controls to remain in place for the foreseeable future.

The Company is subject to various forms of such controls. The
Company is generally not permitted to export capital from South Africa, hold
foreign currency, incur indebtedness denominated in foreign currencies or
acquire an interest in a foreign venture without the approval of the relevant
South African exchange control authorities.

However, there are no exchange control restrictions between the
members of the CMA as they form a single exchange control territory. Lesotho,
Namibia and Swaziland have their own exchange control authorities as well as
their own acts or regulations and rulings but in terms of the Common Monetary
Area Agreement, their application must be at least as strict as that of South
Africa. Accordingly the Company will not require the approval of the Financial
Surveillance Department for investments and transfers of funds from South Africa
to other CMA countries.

Carbon Tax/Climate Change Policies

After having published a number of papers on the introduction
of a carbon tax, the South African government released the draft Carbon Tax Bill
in November 2015 for comment by interested parties. Greenhouse gas emissions
from the combustion of fossil fuels, fugitive emissions in respect of
commodities, fuel or technology, and greenhouse gas emissions from industrial
processes and product use will be subject to a carbon tax. During the first
phase of implementation (ending 2020), it is proposed that the emission of
greenhouse gasses be taxed at R120 per tonne of the carbon dioxide equivalent of
the greenhouse gas emitted, which rate is expected to increase by 10% per annum.
Emission factors will be used in order to calculate the carbon dioxide
equivalent of the greenhouse gasses emitted. Various allowances will be
available for taxpayers to reduce their final carbon tax liability by up to a
maximum of 95%. The Minister of Environmental Affairs will publish a notice
indicating which activities will render a person liable for the carbon tax. The agricultural, forestry
and waste sectors will initially be excluded. The rate and allowances will be
reviewed for the second phase of implementation (after 2020). It is expected
that the final legislation will come into operation on 1 January 2017.

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In May 2013, the South African government released the Carbon
Tax Policy Paper which serves as an update to the Carbon Tax Discussion Paper on
the introduction of a carbon-pricing mechanism in South Africa with the aim of
reducing the emission of greenhouse gases. Currently, the Carbon Tax Policy
Paper proposes that the carbon tax be implemented in accordance with a phased
approach. The first phase will be for five years, effective from January 1, 2016
to December 31, 2020. During the first phase, it is proposed that carbon tax be
introduced at Rand 120 per ton of carbon dioxide equivalent, increasing at 10%
per annum. Further, 60% of emissions would initially be tax exempt. When the tax
free thresholds are taken into account, the effective tax rate will range
between Rand 12 and Rand 48 per ton of carbon dioxide equivalent.

The second phase for the implementation of the carbon tax will
be for another 5 years from 2020 to 2025.

To date, the South African government has not issued any
further updates on the status of the Carbon Tax Policy Paper. During April 2014
the South African Government issued a Carbon Offset Paper for public comment.
The Carbon Offset Paper gives effect to the 2014 Budget Review that noted, along
with carbon tax, that it is proposed that a carbon offset scheme is introduced
to complement the policy package to address climate change and protect
households and businesses.

South African Companies Act

The Companys South African subsidiaries are subject to the
South African Companies Act, No. 71 of 2008 (Companies Act)
which came into force on May 1, 2011. The aim of the Companies Act is to
modernize company law in South Africa so that it is comparable with leading
jurisdictions around the world.

The Companies Act has introduced numerous new legal concepts
into South African company law, and there are therefore some areas of
uncertainty in the application and implementation of the Companies Act in these
early stages of its existence. Various compliance obligations have been brought
about for companies and their boards, including a requirement to ensure that a
companys constitutional documents are aligned with the Companies Act, and that
any shareholders agreements that are in place are aligned with the companys
memorandum of incorporation and the Companies Act. There was essentially a
two-year grace period for such alignment process to take place, in that,
subject to certain exceptions, for two years after the commencement date of the
Companies Act (May 1, 2011), a pre-existing companys shareholders agreement
and/or constitutional documents would have prevailed in the case of any
inconsistency with the Companies Act. The position currently, after the lapse of
the grace period, is that a companys memorandum of incorporation prevails over
the shareholders agreement and the Companies Act in turn prevails over both.
Although not peremptory, the Company has registered new memoranda of
incorporation for the Companys South African subsidiaries.

The Companies Act also requires that certain categories of
companies have in place certain committees, namely audit committees (for all
public and state owned companies) and social and ethics committees (for all
listed public companies and state owned companies as well as other companies
that reach a certain public interest score in terms of the Companies
Regulations, 2011). The public interest score takes into account the number of
shareholders and employees of the company, as well as the amount of the
companys debt and annual turnover.

Failure to comply with the Companies Act can lead to compliance
notices being issued by the CIPC, administrative fines and civil liability for
damages caused by non-compliance. The Companys South African subsidiaries may
also be liable under the Companies Act to any other person for any loss or
damage suffered by that person as a result of the Companys subsidiarys
non-compliance with the Companies Act.

The Companies Act extends shareholders rights and recourse
against companies and directors. Also, directors, prescribed officers and
committee members will now face more extensive and stricter grounds for personal liability for their actions in carrying out their
functions within the company than was the case under the previous regime. The
Companies Act introduces class action suits against companies, directors and
company officers by persons whose rights are affected by the company. Companies
will thus face a greater risk of litigation and the costs thereof. Minority
shareholders rights in the context of mergers and other fundamental
transactions have also been increased substantially, such as the introduction of
appraisal rights and the ability to set aside and review special resolutions
approving such transactions. This could result in the hindrance of such
transactions.

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The Companies Act has also introduced fairly extensive
regulation of financial assistance given among related and inter related
companies, in that there must be shareholder approval, compliance with solvency
and liquidity tests, and fairness and reasonableness in relation to such
financial assistance. This for instance affects intra group loan and security
arrangements, as well transactions with third parties where guarantees or other
security within a group of companies is given. This affects financial assistance
given by South African companies, and would accordingly affect financial
assistance given by South African companies to non-South African related
entities.

The Companies Act prohibits companies from creating any further
par value shares. If a company wishes to increase its share capital, it will
have to convert all of its pre-existing par value shares into shares of no par
value. The revenue authorities have issued a ruling with respect to the tax
treatment of such conversions to the effect that such conversions shall not be
viewed as disposals. This may become relevant in respect of the Companys
South African subsidiaries should their share capital be required to be
increased at any stage for whatever reason.

An important innovation of the Companies Act is that of
business rescue, which is modelled to some extent on the United States Chapter
11 bankruptcy procedures. Business rescue is a largely non-judicial, commercial
process that aims to rescue a financially distressed company and maximize the
likelihood of the companys continued existence on a solvent basis.

Companies in South Africa can be deregistered if they fail to
timeously lodge their annual returns. This means that the company ceases to
exist as a separate juristic person, and that all of its rights and assets
devolve to the state by operation of law. A companys registration can be
reinstated by application either to the CIPC or the High Court. Currently, under
the Companies Act there is uncertainty in the case-law around the exact legal
consequences of such reinstatement and whether the rights and assets
automatically re-vest, with retrospective effect, in the company. The Company
ensures that at all times the requisite filings and returns of its South African
subsidiaries with CIPC are up-to-date and thereby ensures that such subsidiaries
are not deregistered.

Land Use

While national and provincial laws and policies exist and may
be developed for land use planning (including the Spatial Planning and Land
Use Management Act, No. 16 of 2013, which has been assented to but is not
yet in force), municipalities are constitutionally empowered to regulate the
effective administration of land use planning within their respective
jurisdictions. Land use regulation is primarily implemented through restrictive
conditions of title registered against the title deeds of properties, zoning
schemes which determine and administer land use rights and the restrictions on
such rights. The zoning schemes reflect all permissible land use rights on
properties within the municipalitys area of jurisdiction. Deviations from the
zoning scheme are only permissible upon application for the necessary departure,
land use consent or re-zoning application as regulated by the applicable scheme.

While previously it was in dispute whether municipal planning
had the power to regulate mining activities, April 2012 Constitutional Court
judgments in the cases of Maccsand (Proprietary) Limited v City of Cape Town
and Others and Minister for Mineral Resources v Swartland Municipality and
others confirmed that town planning approvals and consents are required for
mining activities. A High Court decision has indicated that such consents will
likewise be required for prospecting activities. The effect of these judgments
is that all mining and prospecting operations need to be conducted on land which
is appropriately zoned for mining or prospecting. Mining companies run the risk
of being interdicted from continuing with their operations pending a re-zoning
if the land on which they are operating is not appropriately zoned. The
practical implications of complying with these judgments are numerous. These
include that there may be different land uses on one property,
particularly where only prospecting is taking place. These implications will
need to be considered further by the Companys operations. This is further
complicated by the fact that there are several provincial land use planning laws
for different provinces.

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In addition to statutory controls, certain private law rights
may also impact on land use planning in general. Zoning schemes are subject to
the real rights created by restrictive conditions of title. The implication is
that if zoning schemes permit a land use which is prohibited by a restrictive
condition of title, such condition will first have to be removed in terms of the
relevant legislation (Removal of Restrictions Act, No. 84 of 1967).
Servitudes may also impact on land use planning, for instance servitudes
registered in respect of infrastructure. Contravention of these real rights may
result in a demolition order being granted in respect of unlawful development.

Another aspect which requires consideration is who should apply
for such re-zoning. Although land owners would typically be the applicant, the
Companys operations are not always conducted on land which the Company owns.
Accordingly, the Company has been required to request amendments to zoning
schemes in municipalities in which the Company intends to prospect or mine and
has obtained rezoning permission in regard to Project 1.

Dealing in precious metals

All operations which acquire, refine, beneficiate, possess or
dispose of gold, any metals of the platinum group, or any ores of such metals,
are required to obtain authorisations to do so under the Precious Metals Act No.
37 of 2007. These authorisations include metal beneficiation licences, refining
licences and precious metals export approvals. Applications for such
authorisations must be made to the South African Diamond and Precious Metals
Regulator. Refining licences can be issued for up to 30 years, whilst precious
metals beneficiation licences can be issued for periods of up to ten years. The
issue of certain licences under the Precious Metals Act requires that the
applicant be complaint with the BEE provisions of the Mining Charter.

Land Claims

Under the Land Claims Act, as amended, any person who was
dispossessed of rights in land in South Africa after June 19, 1913 as a result
of past racially discriminatory laws or practices without payment of just and
equitable compensation is granted certain remedies and is entitled to redress.
Under the Land Claims Act, persons entitled to institute a land claim were
required to lodge their claims by December 31, 1998.

The Land Claims Act also entitles the South African Minister of
Rural Development and Land Reform to acquire ownership of land by way of
expropriation either for claimants who are entitled to restitution of land, or,
in respect of land over which no claim has been lodged but the acquisition of
which is directly related to or affected by such claim, will promote restitution
of land to claimants or alternative relief. Expropriation would be subject to
provisions of legislation and the Constitution, which provide, in general, for
just and equitable compensation.

The South African Minister of Rural Development and Land Reform
may not, however, restore land to a claimant without a court order or an
agreement being reached between the affected parties for the purposes of
achieving restitution.

The Restitution Amendment Act took effect on July 1, 2014. The
Restitution Amendment Act introduced significant amendments to the Land Claims
Act, most notably allowing for land claims by persons previously disposed of
land under apartheid laws to again be submitted, despite the previous cut-of
date having expired approximately 15 years ago. The new period for lodging
claims will be until June 30, 2019, which may arguably create a possible
resurgence of new restitution claims.

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In order to substantiate a claim for restitution, a person is
required to demonstrate that:

| | he/she is a person or it is a deceased estate
      dispossessed of a right in land after June 19, 1913, as a result of past
      racially discriminatory laws or practices;                                                                                                 
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                               
| | he/she is the direct descendant of a person referred to
      above who has died without lodging a claim and has no ascendant who: (i)
      is a direct descendant of a person referred to above and (ii) has lodged a
      claim for the restitution of a right in land; or
|  |                                                                                                                                                                                                                                                                               
| | it is a community or part of a community dispossessed of
      a right in land after June 19, 1913, as a result of past racially
      discriminatory laws or practices.                                                                                                      

Under the Land Claims Act a successful claimant may be granted
either return of the dispossessed land (referred to as restoration) or
equitable redress (which includes the granting of an appropriate right in
alternative state-owned land; or payment of compensation). If restoration is
claimed, the Land Claims Act requires, inter alia, the feasibility of
such restoration to be considered. Under recent case law, restoration of land
may only be given in circumstances where a claimant can use the land
productively, with the feasibility of restoration being dependent on the costs.

The procedure for lodging a land claim is that a claim must be
lodged with the Land Claims Commissioner. The land claim will then be
investigated by the Land Claims Commissioner, after which the claim will be
published in the Government Gazette and in the media circulating nationally and
in the relevant province. The Land Claims Act provides that, if at any stage
during the course of the investigation of a land claim, it becomes evident that:

| | there are two or more competing claims in
      respect of the same land (whether by communities or otherwise); or                                   
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                      
| | the land that is subject to the claim is not
      state-owned land, and the owner or holder of rights in such land is
      opposed to the claim; or
|  |                                                                                                                                                      
| | there is any other issue which might usefully
      be resolved through mediation and negotiation,                                                   

the Chief Land Claims Commissioner may direct the parties
concerned to attempt to settle their dispute through mediation or negotiation.
It further provides that if, upon completion of an investigation of a land
claim, it is agreed that it is not possible to settle the claim by mediation or
negotiation, the claim may be referred to the Land Claims Court for final
determination.

Beneficiation

The beneficiation of mineral resources in South Africa is
regulated by three main pieces of legislation, namely the MPRDA, through section
26 thereof, the Precious Metals Act, No. 37 of 2005 and the Diamonds
Act, No. 58 of 1986 (as amended).

In addition to the legislative framework aimed at promoting
local beneficiation of minerals, the DMR has developed and adopted a
beneficiation strategy which identifies value chains for the purpose of
beneficiation of certain minerals in South Africa (which is also in line with
the developmental goals set-out in the National Development Plan adopted by the
South African government). The Mining Charter (as discussed above) also includes
an incentive for mining companies to offset the value of the level of
beneficiation achieved by the company against a portion of its HDSA ownership
requirement, not exceeding 11%, in an effort to promote local beneficiation.

The legislation at the center of the initiation or promotion of
beneficiation of mineral resources is the MPRDA. Section 26 of the MPRDA
regulates the Ministers power to initiate and promote beneficiation of minerals
in South Africa. The term beneficiation was not defined by the MPRDA. The
MPRDA Amendment Act, 2008introduced a definition for beneficiation, which will
again be amended by the Amendment Bill. The Amendment Bill defines beneficiation
as, "the transformation, value addition ordownstream beneficiation of a mineral and petroleum resource
(or a combination of minerals) to a higher value product, over baselines to be
determined by the Minister, which can either be consumed locally or
exported". As the section currently reads, the Minister may prescribe levels
of beneficiation of a particular mineral should he establish, on advice from the
Minerals and Mining Board and consulting with the Minister of Trade and
Industry, that a particular mineral can be beneficiated economically in South
Africa. Further, a person who intends to beneficiate any minerals mined in South
Africa, outside of the country may only do so with the written consent of and in
consultation with the Minister.

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- 56 

Platinum Group Metals Ltd. 2015
Annual Information Form

The Amendment Bill, if signed into law in its present form,
will radically amend the current provisions of section 26. The Amendment Bill
will oblige the Minister to initiate the downstream beneficiation of minerals or
mineral products in South Africa by designating certain minerals or mineral
products for local beneficiation. The Amendment Bill refers to both designated
minerals and strategic minerals, however only the definition of designated
minerals is used in the body of the Amendment Bill. The term designated
minerals is used in the context of the promotion of local beneficiation of
minerals or mineral products in South Africa at prescribed levels in terms of
section 26. It is not clear how the term strategic minerals differs from
designated minerals, or in what context the Minister will be able to declare a
mineral as a strategic mineral.

The Amendment Bill provides that the Minister must, in
consultation with Ministers of other national government departments, designate
certain minerals or mineral products for local beneficiation. However before
declaring a mineral or mineral product as a designated mineral for local
beneficiation, the Minister must take into consideration the national
developmental imperatives (such as macro-economic stability, energy security,
industrialization, food security and infrastructure development) of South Africa
and the advice of the Ministerial Council as contemplated by the new section 56B
of the Amendment Bill. Once the Minister deems a mineral or mineral product to
constitute a designated mineral for local beneficiation after completing the
aforesaid process, the Minister must designate such mineral or mineral product
in the Government Gazette as a designated mineral and further indicate that:

| | the conditions required to ensure security of
      supply of the mineral or mineral product;             
|- | ----------------------------------------------------------------------------------------------------------
|  |                                                                                                           
| | the percentage of the mineral or mineral
      product which must be offered to local beneficiators; and  
|  |                                                                                                           
| | the prescribed quality, quantity and timelines
      at duration which the mineral must be made available.

It would appear from section 26(2B) of the Amendment Bill that
there is no obligation on the producer or mining company to make available the
designated mineral or mineral product at a price determined by the Minister.
However the producer might require Ministerial consent to sell the mineral or
mineral product on the export market. This uncertainty will need to be clarified
by regulation or by conditions imposed by the Minister in respect of a
designated mineral. There is however a risk that delays caused by this approval
process could further deter investment in the Company as investors might be
cautious to investing in the development of a mineral which could potentially be
restricted from export.

Labour Relations Act

The Constitution gives every person the right to fair labour
practices. The Labour Relations Act, No. 66 of 1995 (LRA) is the
principal legislation that gives effect to the framework in which employees,
employers and industrial relations at an individual and collective level are
regulated. As a premise the LRA regulates the manner in which employees,
employers, trade unions and employers organizations interact and engage with
one another in the work place. This includes processes related to collective
bargaining, wage determination, determination of terms and conditions of
employment, the formulation of industrial policy and employee participation in
the decision-making processes.

The LRA framework holistically is geared at the protection of
employee and employer rights through various structures. Principally the LRA
allows for the creation of trade unions and employers organizations. The extent
of entitlement of the trade union is subject to the size of its membership base.
Depending on the number of employees who are members of the trade union, the
trade union will be allowed access to the workplace, representation at the
workplace, to have meetings at the workplace and to access to information
concerned with the employment of the employees. To be entitled to enter into
collective agreements with the employer, the trade union must have as its
members the majority of the employees at the workplace. The LRA endorses a co-operative
approach whereby two or more trade unions can aggregate their membership for the
purposes of achieving majority status in a collective bargaining unit or forum.

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- 57 

Platinum Group Metals Ltd. 2015
Annual Information Form

Collective agreements entered into between the trade union and
the employer will bind all employees employed by the employer, regardless of
their trade union affiliations, for the whole period of the agreement. The LRA
does not provide for a statutory duty to bargain collectively or otherwise, and
therefore such conduct is purely a voluntary decision.

At a greater level the LRA allows for the creation of
bargaining and statutory councils. Such councils can be established both for
more than one registered trade union or employers organization. Such councils
will be established per sector or area. Councils in this regard will, amongst
others, be entitled to conclude collective agreements and to engage in the
resolution of disputes.

If a dispute between the employer and employee arises the LRA
clearly delineates the lawful context in which this may occur. As a premise the
LRA strictly stipulates and regulates the requirements for a lawful strike,
lockout or picketing. In this regard the LRA expressly identifies who is allowed
to engage in industrial action of this nature, which processes must be followed
and for which purposes employees and employers may engage in such industrial
action. Should the industrial action require the parties to engage in a process
of consultation and negotiation, the LRA also prescribes the procedures to be
followed.

If the conduct of the parties, for whatever reason, result in
the dismissal of employees the LRA establishes the Commission for Conciliation,
Mediation and Arbitration (CCMA) as a principal forum for the
resolution of disputes resulting from the dismissal. The LRA defines unlawful
dismissals as being either automatically or not automatically unfair. The type
of dismissal will depend on the nature thereof and the prevailing circumstances
at the time of dismissal, an example being dismissals arising from operational
requirements.

A process of mediation and conciliation is pre-emptory in this
regard. Should the dispute remain unresolved, parties will be required to enter
into a process of arbitration, and the award made by the Commissioner would be
final.

Employment Equity Act

Subject to recent amendments to the Employment Equity Act,
No. 55 of 1998 (EEA) it is imperative that regard must be had of
the necessity to remunerate employees equally based on the principle of equal
pay for work of equal value. Work will be identified as of equal value when the
work done by the employee is the same, substantially the same or of equal value
when compared to an appropriate comparator.

To determine whether differentiation between employees occurs,
the EEA identifies 22 listed grounds upon which an employer could potentially
differentiate between employees. Differentiation in this regard is presumed to
be unfair discrimination between employees. The EEA furthermore identifies an
arbitrary ground of differentiation as a ground upon which unfair
discrimination can take place.

Should an employer be guilty of not remunerating employees
equally based on the principle of equal pay for work of equal value,
discriminating against an employee on a listed ground, or of sexual harassment,
the EEA also identifies the CCMA as the forum of first instance to resolve the
dispute through a process of conciliation. Should the dispute remain unresolved
after conciliation, the matter may either be referred to the Labour Court for
adjudication, or remain with the CCMA for arbitration if the requirements
imposed by the EEA are met.

RISK FACTORS

The Companys securities should be considered a highly
speculative investment due to the nature of the Companys business and present
stage of exploration and development of its mineral properties. Resource
exploration and development is a speculative business, characterized by a number
of significant risks including, among other things, unprofitable efforts
resulting not only from the failure to discover mineral deposits but also from finding mineral
deposits, which, though present, are insufficient in quantity or quality to
return a profit from production. Investors should carefully consider all of the
information disclosed in the Companys Canadian and U.S. regulatory filings
prior to making an investment in the Company. Without limiting the foregoing,
the following risk factors should be given special consideration when evaluating
an investment in the Companys securities. Additional risks not currently known
to the Company, or that the Company currently deems immaterial, may also impair
the Companys operations.

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- 58 

Platinum Group Metals Ltd. 2015
Annual Information Form

Risks Relating to the Company

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

Under the terms of the Maseve Shareholders Agreement, the board
of directors of Maseve may make cash calls on PTM RSA and Africa Wide. Africa
Wide declined to fund its share of cash calls in October 2013 and in March 2014.
As a result of the first missed cash call, the Company entered into arbitration
proceedings against Africa Wide to determine the extent of the dilution of
Africa Wides interest in Maseve, in accordance with the terms of the Maseve
Shareholders Agreement. On August 20, 2014, an arbitrator determined that Africa
Wides shareholding in Maseve would be reduced to 21.2766% . Based on the
arbitration award, Africa Wide has been further diluted to approximately 17.1%
as a result of Africa Wides failure to fund the second cash call and therefore
the Companys shareholding in Maseve has increased to approximately 82.9% . In
addition, as a result of the transactions explained under the risk factor The
failure to maintain or increase equity participation by HDSAs in the Companys
prospecting and mining operations could adversely affect the Companys ability
to maintain its prospecting and mining rights, there is no guarantee the DMR
would recognize Africa Wide as a qualified BEE entity. To comply with the Mining
Charter, Maseve must demonstrate 26% ownership by a qualified BEE entity in
order to maintain the Mining Right in good standing. If the Company is required
to increase Maseves HDSA ownership by the DMR, the Company would need to reach
an agreement with another qualified BEE entity and, failing that, the Company
may face possible suspension or cancellation of its mining rights under a
process governed by section 47 of the MPRDA.

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 effect on the Companys business and results of
operations.

The Company, through its subsidiaries, participates in joint
ventures with various partners. In particular, PTM RSA, Africa Wide and Maseve
are parties to the Maseve Shareholders Agreement related to the exploration and
development of Project 1 and Project 3. On October 18, 2013, Africa Wide advised
the Company that it would 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. On March 3, 2014, Africa Wide advised the Company that it
would not be funding its approximately US$21.52 million share of a second cash
call. As a result of Africa Wides decision to not fund its cash calls, a
procurement freeze was implemented on Project 1 for approximately 12 weeks from
late 2013 into 2014, which resulted in delays to the acquisition and procurement
of various goods and services, delaying mill and surface infrastructure
construction. Any failure by PTM RSA, Africa Wide or any future shareholder
under the Maseve Shareholders Agreement to contribute its pro-rata share
of a cash call would result in dilution of that partys interest in proportion
to the shortfall, and could have a material adverse effect on the Company as
discussed above.

PTM RSA, the Company (as guarantor of PTM RSA), Mnombo and
JOGMEC are parties to the JOGMEC Agreement, as amended, which governs the joint
venture in respect of the Waterberg JV Project. Under the JOGMEC Agreement, PTM
RSA, Mnombo and JOGMEC may elect to fund programs that have been approved by a
management committee composed of a representative of each of the three joint
venture partners, provided that voting power for each representative is
proportional to the respective joint venture partners interest. In the event
that PTM RSA, Mnombo or JOGMEC fails to contribute its respective
pro-rata share of program costs after electing to fund a program, or
twice elects not to fund a program, then its respective participating interest
in the joint venture will be diluted in proportion to the shortfall. If the
interest of one or more of the partners is reduced to less than 10%, or if one
or more of the partners elects not to fund a program to achieve commercial production,
then the diluted partners or partners interest will be deemed transferred to
the remaining partner(s) and such diluted partner(s) will be entitled to a 1.0%
NSR royalty in the aggregate. Thus, if only one partner is diluted below 10%, it
will receive the entire 1.0% NSR royalty, but if two or more partners are each
diluted below 10%, then they will share the 1.0% NSR royalty. To date, the
Company has funded Mnombos 26% share of the work on the Waterberg JV Project.
If the Company ceases to fund Mnombos share of the work for the Waterberg JV
Project, Mnombo may be required to obtain funding from alternative sources,
which may not be available on favorable terms, or at all. If Mnombo is unable to
fund its share of such work, this may delay project expenditures and may result
in dilution of Mnombos interest in the Waterberg JV Project and require the
sale of the diluted interests to another qualified BEE entity.

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- 59 

Platinum Group Metals Ltd. 2015
Annual Information Form

On 22 May 2015, the JOGMEC Agreement was amended with effect
from 1 April 2015 ("2ndAmendment"). In terms of
the 2nd Amendment, the parties agreed to corporatize the joint
venture between them and thus incorporated the company Waterberg JV Resources
Proprietary Limited ("Waterberg JV Resources"). Waterberg JV Resources
was added as a party to the JOGMEC Agreement and it was furthermore agreed that
the Waterberg Extention Project would be included to form part of the unitized,
corporatized joint venture. Once the corporatization of Waterberg JV Resources
is finalised, the parties' respective interests, through shareholdings in
Waterberg JV Resources, shall be as follows: PTM RSA 45.65%; JOGMEC 28.35% and
Mnombo Wethu 26%.

Since March 31, 2015, JOGMEC has been funding all work on the
Waterberg Projects in accordance with the 2nd Amendment to the JOGMEC
Agreement, as described above.

Because the development of the Companys joint venture projects
depends on the ability to finance further operations, any inability of the
Company or one or more of its joint venture partners to fund its respective
pro-rata cash calls in the future could require the other partners,
including the Company, to increase their funding of the project, which they may
be unwilling or unable to do on a timely and commercially reasonable basis, or
at all. The occurrence of the foregoing, the failure of any partner, including
the Company, to increase their funding as required to cover any shortfall, as
well as any dilution of the Companys interests in its joint ventures as a
result of its own failure to satisfy a cash call, may have a material adverse
effect on the Companys business and results of operations.

The Companys current cash may not be sufficient to fund
its business as currently planned and the Company therefore may require
additional financing, which may not be available on acceptable terms, if at all.

The Company may be required to source additional financing by
way of private or public offerings of equity or debt or the sale of project or
property interests in order to have sufficient working capital for the remaining
development and operation of Project 1 and continued exploration on the
Waterberg Projects, as well as for general working capital purposes.

The success and the pricing of any such capital raising and/or
debt financing will be dependent upon the prevailing market conditions at that
time. There can be no assurance that financing will be available to the Company
or, if it is available, that it will be offered on acceptable terms. If
additional financing is raised through the issuance of equity or convertible
debt securities of the Company, this may have a depressive effect on the price
of its common shares and the interests of shareholders in the net assets of the
Company may be diluted.

Any failure by the Company to obtain required financing on
acceptable terms or on a timely basis could cause the Company to delay
development of its material projects or could result in the Company being forced
to sell some of its assets on an untimely or unfavourable basis. Any such delay
or sale could have a material adverse effect on the Companys financial
condition, results of operations and liquidity.

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- 60 

Platinum Group Metals Ltd. 2015
Annual Information Form

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

The Company has no present source of revenue. The Company's
ability to make scheduled payments on its indebtedness will depend on its
ability to successfully complete construction of the Project 1 platinum mine and
place the mine into production, and on the Companys financial condition and
operating performance, which are subject to prevailing economic and competitive
conditions and to certain financial, business, legislative, regulatory and other
factors beyond its control. If the Companys cash flows and capital resources
are insufficient to fund its debt service obligations, the Company could face
substantial liquidity problems and could be forced to reduce or delay
investments and capital expenditures or to dispose of material assets or
operations, seek additional debt or equity capital or restructure or refinance
the Companys indebtedness. The Company may not be able to effect any such
alternative measures on commercially reasonable terms or at all and, even if
successful, those alternatives may not allow the Company to meet its scheduled
debt service obligations.

In addition, a breach of the covenants under the covenants
governing the Companys debt instruments from time to time, including the Sprott
Facility and the LMM Facility, could result in an event of default under the
applicable indebtedness. Such a default may allow the creditors to accelerate
the related debt, may result in the acceleration of any other debt to which a
cross acceleration or cross default provision applies. The Company may not have
sufficient assets to repay its indebtedness.

The Companys debt instruments contain a number of restrictive
covenants that will impose operating and financial restrictions on the Company
and may limit the Companys ability to engage in acts that may be in its long
term best interest. In particular, restrictions apply to the Companys ability
to dispose of assets and use the proceeds from those dispositions and
restrictions may also apply to the Companys ability to raise debt or certain
types of equity capital to be used to repay other indebtedness when it becomes
due. As a result of these restrictions, the Company may be limited in how it
conducts its business and may be unable to raise additional debt or equity
financing to operate during general economic or business downturns, or unable to
compete effectively or to take advantage of new business opportunities, each of
which restrictions may affect the Companys ability to grow in accordance with
its strategy.

Further, the Companys maintenance of substantial levels of
debt could adversely affect its financial condition and results of operations
and could adversely affect its flexibility to take advantage of corporate
opportunities. Substantial levels of indebtedness could have important
consequences to the Company, including:

| | limiting the Companys ability to obtain additional
      financing to fund future working capital, capital expenditures,
      acquisitions or other general corporate requirements, or requiring the
      Company to make non-strategic divestitures;                                           
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                    
| | requiring a substantial portion of the Companys cash
      flows to be dedicated to debt service payments instead of other purposes,
      thereby reducing the amount of cash flows available for working capital,
      capital expenditures, acquisitions and other general corporate purposes;
|  |                                                                                                                                                                                                                                                                                                    
| | increasing the Companys vulnerability to general adverse
      economic and industry conditions;                                                                                                                                                                                                  
|  |                                                                                                                                                                                                                                                                                                    
| | exposing the Company to the risk of increased interest
      rates for any borrowings at variable rates of interest;                                                                                                                                                                               
|  |                                                                                                                                                                                                                                                                                                    
| | limiting the Companys flexibility in planning for and
      reacting to changes in the industry in which it competes;                                                                                                                                                                             
|  |                                                                                                                                                                                                                                                                                                    
| | placing the Company at a disadvantage compared to other,
      less leveraged competitors; and                                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                    
| | increasing the Companys cost of borrowing.                                                                                                                                                                                                                                                        

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- 61 

Platinum Group Metals Ltd. 2015
Annual Information Form

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

The Company has a history of losses. None of the Companys
properties is currently in production, and there is no certainty that the
Company will succeed in placing any of its properties into production in the
near future, if at all.

The Company anticipates continued losses until it can
successfully place one or more of its properties into commercial production on a
profitable basis. It could be years before the Company receives any revenues
from any production of metals, if ever. If the Company is unable to generate
significant revenues with respect to its properties, the Company will not be
able to earn profits or continue operations.

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

The Company has had negative operating cash flow in recent
financial years. The Companys ability to achieve and sustain positive operating
cash flow will depend on a number of factors, including the Companys ability to
advance any of its material properties into production. To the extent that the
Company has negative cash flow in future periods, the Company may need to deploy
a portion of its cash reserves to fund such negative cash flow. The Company may
be required to raise additional funds through the issuance of additional equity
or debt securities. There can be no assurance that additional debt or equity
financing or other types of financing will be available if needed or that these
financings will be on terms at least as favourable to the Company as those
obtained previously.

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

The Company has limited financial resources and no operating
revenues. The Companys ability to continue as a going concern is dependent
upon, among other things, the Company establishing commercial quantities of
mineral reserves on its properties and obtaining the necessary financing to
develop and profitably produce such minerals or, alternatively, disposing of its
interests on a profitable basis. Any unexpected costs, problems or delays could
severely impact the Companys ability to continue exploration and development
activities. Should the Company be unable to continue as a going concern,
realization of assets and settlement of liabilities in other than the normal
course of business may be at amounts materially different than the Companys
estimates. The amounts attributed to the Companys exploration properties in its
financial statements represent acquisition and exploration costs and should not
be taken to represent realizable value.

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

Other than Project 1, all of the Companys properties are in
the exploration stage, meaning that the Company has not determined whether such
properties contain mineral reserves that are economically recoverable. The
Company may never discover metals in commercially exploitable quantities at
these properties. Failure to discover economically recoverable reserves on a
mineral property will require the Company to write off the costs capitalized for
that property in its financial statements.

Substantial additional work will be required in order to
determine if any economic deposits exist on the Companys properties outside of
the Project 1 platinum mine. Substantial expenditures are required to establish
mineral reserves through drilling and metallurgical and other testing
techniques. No assurance can be given that any level of recovery of any mineral
reserves will be realized or that any identified mineral deposit will ever
qualify as a commercial mineable ore body that can be legally and economically
exploited.

The Companys properties, including the Project 1
platinum mine, may not be brought into a state of commercial production.

Development of mineral properties involves a high degree of
risk and few properties that are explored are ultimately developed into
producing mines. The commercial viability of a mineral deposit is dependent upon
a number of factors which are beyond the Companys control, including the
attributes of the deposit, commodity prices, government policies and regulation and
environmental protection. Fluctuations in the market prices of minerals may
render reserves and deposits containing relatively lower grades of
mineralization uneconomic. The development of the Companys properties,
including the Project 1 platinum mine, will require obtaining land use consents,
permits and the construction and operation of mines, processing plants and
related infrastructure. Although the Project 1 property has been granted the
necessary land use zoning, the Company is subject to all of the risks associated
with establishing new mining operations, including:

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- 62 

Platinum Group Metals Ltd. 2015
Annual Information Form

| | the timing and cost, which can be considerable,
      of the construction of mining and processing facilities and related
      infrastructure;                                                                                                                                                                                                         
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                         
| | the availability and cost of skilled labour and
      mining equipment;                                                                                                                                                                                                                                                                                 
|  |                                                                                                                                                                                                                                                                                                                                                         
| | the availability and cost of appropriate
      smelting and/or refining arrangements;                                                                                                                                                                                                                                                                   
|  |                                                                                                                                                                                                                                                                                                                                                         
| | the need to obtain necessary environmental and
      other governmental approvals and permits, and the timing of those
      approvals and permits;                                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                                                                         
| | in the event that the required permits are not
      obtained before construction commences, the risks of government
      environmental authorities issuing directives or commencing enforcement
      proceedings to cease operations or administrative, civil and criminal
      sanctions being imposed on the Company, its directors and employees;
|  |                                                                                                                                                                                                                                                                                                                                                         
| | the availability of funds to finance
      construction and development activities;                                                                                                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                                                                         
| | potential opposition from non-governmental
      organizations, environmental groups or local groups which may delay or
      prevent development activities; and                                                                                                                                                                                       
|  |                                                                                                                                                                                                                                                                                                                                                         
| | potential increases in construction and
      operating costs due to changes in the cost of fuel, power, materials and
      supplies and foreign exchange rates.                                                                                                                                                                                       

The costs, timing and complexities of mine construction and
development are increased by the remote location of the Companys mining
properties (other than Project 1 and Project 3, which are not remotely located
and have both power and water supply lines crossing the property), with
additional challenges related thereto, including water and power supply and
other support infrastructure. For example, water resources are scarce at the
Companys Waterberg Projects. If the Company should decide to mine at the
Waterberg Projects, it will have to establish sources of water and develop the
infrastructure required to transport water to the project area. Similarly, the
Company will need to secure a suitable location by purchase or long term lease
of surface or access rights at the Waterberg Projects to establish the surface
rights necessary to mine and process.

It is common in new mining operations to experience unexpected
costs, problems and delays during development, construction and mine ramp-up.
Accordingly, there are no assurances that the Companys properties, including
the Project 1 platinum mine, will be brought into a state of commercial
production.

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

The mineral resource and mineral reserve estimates contained in
this AIF and the other documents incorporated by reference herein have been
determined and valued based on assumed future prices, cut off grades and
operating costs. However, until mineral deposits are actually mined and
processed, mineral reserves and mineral resources must be considered as
estimates only. Any such estimates are expressions of judgment based on
knowledge, mining experience, analysis of drilling results and industry
practices. Estimates of operating costs are based on assumptions including those
relating to inflation and currency exchange, which may prove incorrect.
Estimates of mineralization can be imprecise and depend upon geological
interpretation and statistical inferences drawn from drilling and sampling
analysis, which may prove to be unreliable. In addition, the grade and/or
quantity of precious metals ultimately recovered may differ from that indicated by drilling results. There can
be no assurance that precious metals recovered in small scale tests will be
duplicated in large scale tests under onsite conditions or in production scale.
Amendments to the mine plans and production profiles may be required as the
amount of resources changes or upon receipt of further information during the
implementation phase of the project. Extended declines in market prices for
platinum, palladium, rhodium and gold may render portions of the Companys
mineralization uneconomic and result in reduced reported mineralization. Any
material reductions in estimates of mineralization, or of the Companys ability
to develop its properties and extract and sell this mineralization on expected
terms, could have a material adverse effect on the Companys results of
operations or financial condition.

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- 63 

Platinum Group Metals Ltd.
2015 Annual Information Form

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

Completion of a pre-feasibility study for the Waterberg JV
Project is subject to: (i) a positive upgrading of the resource estimate from
Inferred Resources, and (ii) completion of a positive economic analysis of the
mineral deposit.

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

The capital costs to take the Companys projects into
production may be significantly higher than anticipated. None of the Companys
mineral properties has an operating history upon which the Company can base
estimates of future operating costs. Decisions about the development of the
Companys mineral properties will ultimately be based upon feasibility studies.
Feasibility studies derive estimates of cash operating costs based upon, among
other things:

| | anticipated tonnage, grades and metallurgical
      characteristics of the ore to be mined and processed;
|- | ---------------------------------------------------------------------------------------------------------
|  |                                                                                                          
| | anticipated recovery rates of metals from the
      ore;                                                 
|  |                                                                                                          
| | cash operating costs of comparable facilities
      and equipment; and                                   
|  |                                                                                                          
| | anticipated climatic conditions.                                                                         

Capital costs, operating costs, production and economic returns
and other estimates contained in studies or estimates prepared by or for the
Company may differ significantly from those anticipated by the Companys current
studies and estimates, and there can be no assurance that the Companys actual
capital and operating costs will not be higher than currently anticipated. For
example, operating costs per tonne at the Project 1 platinum mine are expected
to increase principally as a result of escalating prices for labour, power and
consumables, such as drill steel, roof bolts, explosives and fuel. Higher
capital and operating costs may cause production and economic returns to differ
significantly from those the Company has anticipated.

The Company is subject to the risk of fluctuations in the
relative values of the Canadian Dollar as compared to the South African Rand and
the United States Dollar.

The Company may be adversely affected by foreign currency
fluctuations. Historically, the Company has primarily generated funds through
equity investments into the Company denominated in Canadian Dollars. In the
normal course of business, the Company enters into transactions for the purchase
of supplies and services denominated in South African Rand. The Company also has
assets, cash and certain liabilities denominated in South African Rand. Several
of the Companys options to acquire properties or surface rights in South Africa
may result in payments by the Company denominated in South African Rand or in
U.S. Dollars. Exploration, development and administrative costs to be funded by
the Company in South Africa will also be denominated in South African Rand.
Settlement of sales of minerals from the Companys projects, once commercial
production commences, will be in Rand, and will be converted to U.S. Dollars to
make payment of principal and interest if the Company should enter into any U.S.
Dollar denominated debt or loan arrangements.

---

- 64 

Platinum Group Metals Ltd. 2015
Annual Information Form

Fluctuations in the exchange rates between the Canadian Dollar
and the South African Rand or U.S. Dollar may have a material adverse effect on
the Companys financial results. During the year ended August 31, 2015, the
Company recorded a foreign currency translation adjustment of approximately $8.9
million as a loss in other comprehensive loss, which was primarily the result of
translating the Companys Rand-denominated assets and liabilities in South
Africa at weaker Rand/Canadian Dollar exchange rates on August 31, 2015.

In addition, South Africa has in the past experienced double
digit rates of inflation. If South Africa experiences substantial inflation in
the future, the Companys costs in South African Rand terms will increase
significantly, subject to movements in applicable exchange rates. Inflationary
pressures may also curtail the Companys ability to access global financial
markets in the longer term and its ability to fund planned capital expenditures,
and could materially adversely affect the Companys business, financial
condition and results of operations. The South African governments response to
inflation or other significant macro-economic pressures may include the
introduction of policies or other measures that could increase the Companys
costs, reduce operating margins and materially adversely affect its business,
financial condition and results of operations.

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

Metal prices have historically been subject to significant
price fluctuations. No assurance may be given that metal prices will remain
stable. Significant price fluctuations over short periods of time may be
generated by numerous factors beyond the control of the Company, including:

| | domestic and international economic and
      political trends;                                                  
|- | -----------------------------------------------------------------------------------------------------------------
|  |                                                                                                                  
| | expectations of inflation;                                                                                       
|  |                                                                                                                  
| | currency exchange fluctuations;                                                                                  
|  |                                                                                                                  
| | interest rates;                                                                                                  
|  |                                                                                                                  
| | global or regional consumption patterns;                                                                         
|  |                                                                                                                  
| | speculative activities, including the trading
      in platinum, palladium and rhodium exchange-traded funds; and
|  |                                                                                                                  
| | increases or decreases in production due to
      improved mining and production methods.                        

Significant or continued reductions or volatility in metal
prices may have an adverse effect on the Companys business, including the
amount of the Companys mineral reserves, the economic attractiveness of the
Companys projects, the Companys ability to obtain financing and develop
projects and, if the Companys projects enter the production phase, the amount
of the Companys revenues or profit or loss.

The Company may be unable to generate sufficient cash to
make payments on the indebtedness and the terms of the Sprott Facility or the
LMM Facility may restrict the Companys current or future operations.

The Company has no present source of revenue. The Companys
ability to make payments on any indebtedness under the Sprott Facility or the
LMM Facility will depend on its ability to successfully complete construction of
the Project 1 platinum mine and place the mine into production, and on the
Companys financial condition and operating performance, which are subject to
prevailing economic and competitive conditions and to certain financial,
business, legislative, regulatory and other factors beyond its control. If the
Companys cash flows and capital resources are insufficient to fund its debt
service obligations, the Company could face substantial liquidity problems and
could be forced to reduce or delay investments and capital expenditures or to
dispose of material assets or operations, seek additional debt or equity capital
or restructure or refinance the Companys indebtedness, including indebtedness
under the Sprott Facility or the LMM Facility. The Company may not be able to
effect any such alternative measures on commercially reasonable terms or at all and, even
if successful, those alternatives may not allow the Company to meet its
scheduled debt service obligations.

---

- 65 

Platinum Group Metals Ltd. 2015
Annual Information Form

In addition, a breach of the covenants under the Sprott
Facility, the LMM Facility or the Companys other debt instruments from time to
time could result in an event of default under the applicable indebtedness. Such
a default may allow the creditors to accelerate the related debt, may result in
the acceleration of any other debt to which a cross acceleration or cross
default provision applies. In the event a lender accelerates the repayment of
the Companys borrowings, the Company may not have sufficient assets to repay
its indebtedness.

The Sprott Facility and the LMM Facility contain a number of
covenants that impose significant operating and financial restrictions on the
Company and may limit the Companys ability to engage in acts that may be in its
long-term best interest. In particular, the Sprott Facility and the LMM Facility
restrict the Companys ability to modify material contracts, to dispose of
assets and to use the proceeds from those dispositions, to incur additional
indebtedness and grant security interests or encumbrances and to use proceeds
from future debt or equity financings. As a result of these restrictions, the
Company may be limited in how it conducts its business, may be unable to raise
additional debt or equity financing to operate during general economic or
business downturns, or may be unable to compete effectively or to take advantage
of new business opportunities, each of which restrictions may affect the
Companys ability to grow in accordance with its strategy.

| | limiting the Companys ability to obtain
      additional financing to fund future working capital, capital expenditures,
      acquisitions or other general corporate requirements, or requiring the
      Company to make non-strategic divestitures;                                                 
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                          
| | requiring a substantial portion of the
      Companys cash flows to be dedicated to debt service payments instead of
      other purposes, thereby reducing the amount of cash flows available for
      working capital, capital expenditures, acquisitions and other general
      corporate purposes;
|  |                                                                                                                                                                                                                                                                                                          
| | increasing the Companys vulnerability to
      general adverse economic and industry conditions;                                                                                                                                                                                                        
|  |                                                                                                                                                                                                                                                                                                          
| | exposing the Company to the risk of increased
      interest rates for any borrowings at variable rates of interest;                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                          
| | limiting the Companys flexibility in planning
      for and reacting to changes in the industry in which it competes;                                                                                                                                                                                   
|  |                                                                                                                                                                                                                                                                                                          
| | placing the Company at a disadvantage compared
      to other, less leveraged competitors; and                                                                                                                                                                                                           
|  |                                                                                                                                                                                                                                                                                                          
| | increasing the Companys cost of borrowing.                                                                                                                                                                                                                                                              

The Company has granted a first ranking security interest
in favour of Sprott over all of its personal property, subject to certain
exceptions. The Company has pledged its shares of PTM RSA to Sprott under the
Sprott Facility, which may have a material adverse effect on the
Company.

The Company secured the Sprott Facility for the development and
operation of Project 1, and has arranged such facility. The Company has entered
into a general security agreement under which the Company granted first ranking
security interests in favour of Sprott over all of its present and
after-acquired personal property, subject to certain exceptions, and a share
pledge agreement pursuant to which the Company granted a first priority security
interest in favour of Sprott over all of the issued shares in the capital of PTM
RSA. Under the Sprott Facility, PTM RSA guaranteed the Companys obligations to
Sprott. These security interests and guarantee may adversely affect the
Companys ability to obtain project financing for the Waterberg Projects or its
ability to secure other types of financing. The terms of the Sprott Credit
Agreement has various covenants, including payment covenants and financial tests
that must be satisfied during the term of the Sprott Facility. There is no
assurance that such covenants will be satisfied. Any default under Sprott
Facility including any covenants thereunder, could result in the loss of the Companys entire interest in PTM RSA, and therefore its
interests in Project 1, Project 3 and the Waterberg Projects.

---

- 66 

Platinum Group Metals Ltd. 2015
Annual Information Form

There may be a delay in the start-up of the Project 1
platinum mine, which could result in a default under the Sprott Facility or the
LMM Facility and could have a material adverse effect on the Companys financial
condition and prospects.

The anticipated timelines for the completion of Phase 2 of the
development of the Project 1 platinum mine and the commencement and ramp-up of
production may prove to be inaccurate. Timelines are based on managements
current expectations and may be affected by a number of factors, including:

| | consultants analyses and recommendations;                                                                                                                                                                                                                                                                         
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                    
| | the rate at which expenditures are incurred;                                                                                                                                                                                                                                                                       
|  |                                                                                                                                                                                                                                                                                                                    
| | delays in construction schedules;                                                                                                                                                                                                                                                                                  
|  |                                                                                                                                                                                                                                                                                                                    
| | further postponement of electrical distribution
      infrastructure by ESKOM Holdings Limited;                                                                                                                                                                                                                    
|  |                                                                                                                                                                                                                                                                                                                    
| | availability of major equipment and personnel;                                                                                                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                                    
| | the issuance of a directive under section 54 of the MHSA
      by the DMR on the respective mine health and safety responsibilities over
      land owned by Maseve under which RBPlat has prospecting rights and with
      respect to which responsibilities Maseve and RBPlat have concluded an
      agreement;
|  |                                                                                                                                                                                                                                                                                                                    
| | the Companys ability to obtain requisite funding,
      permits and licenses (including a water use license, an amendment to the
      environmental authorization held by Maseve and a possible amendment to
      Maseves environmental management program);                                                   
|  |                                                                                                                                                                                                                                                                                                                    
| | other potentially required authorizations arising from
      recent legislative amendments; and                                                                                                                                                                                                                    
|  |                                                                                                                                                                                                                                                                                                                    
| | the rate of underground development in the north and
      south declines.                                                                                                                                                                                                                                         

Some of the above factors are beyond the Companys control and
could cause managements timelines not to be realized. It is common for mining
projects to experience unexpected costs, problems and delays. The targeted start
date for first concentrate production at Project 1 in December, 2015 may be
delayed and a delay in the start-up of the Project 1 platinum mine could have a
material adverse effect on the Companys financial condition and prospects. A
delay may also result in a default under the Sprott Facility and the LMM
Facility, which may accelerate amounts due thereunder and permit Sprott, LMM and
any other lenders thereunder to realize on any applicable security thereunder.
This could result in a complete loss of the Companys assets, including its
investment in PTM RSA, and therefore in Project 1, Project 3 and the Waterberg
Projects. There is no assurance that insurance for any delay in start-up at the
Project 1 platinum mine will be available to the Company on economic terms or in
such amounts as would be adequate to cover all losses or at all.

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

The Companys development to date has depended, and in the
future will continue to depend, on the efforts of its senior management
including: R. Michael Jones, President and Chief Executive Officer and a
director of the Company; Frank R. Hallam, Chief Financial Officer and Corporate
Secretary and a director of the Company; and Peter Busse, Chief Operating
Officer of the Company. The Company currently does not, and does not intend to,
have key person insurance for these individuals. Departures by members of senior
management could have a negative impact on the Companys business, as the
Company may not be able to find suitable personnel to replace departing
management on a timely basis or at all. The loss of any member of the senior
management team could impair the Companys ability to execute its business plan and could therefore have a material
adverse effect on the Companys business, results of operations and financial
condition.

---

- 67 

Platinum Group Metals Ltd. 2015
Annual Information Form

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

There is currently a shortage of skilled and experienced
personnel in the mining industry in South Africa. The competition for skilled
and experienced employees is exacerbated by the fact that mining companies
operating in South Africa are legally obliged to recruit and retain historically
disadvantaged persons or HDSAs, as defined respectively by the MPRDA and the BEE
Act, with the relevant skills and experience at levels that meet the
transformation objectives set out in the MPRDA and the Mining Charter. Skilled
and experienced personnel are especially important at the Project 1 platinum
mine since the deposit does not lend itself to mechanized methods. If the
Company is unable to attract and retain sufficiently trained, skilled or
experienced personnel, its business may suffer and it may experience
significantly higher staff or contractor costs, which could have a material
adverse effect on its business, results of operations and financial condition.

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

Certain of the Companys officers and directors are, and others
may become, associated with other natural resource companies that acquire
interests in mineral properties. R. Michael Jones, President and Chief Executive
Officer and a director of the Company, is also the President and Chief Executive
Officer and a director of West Kirkland Mining Inc. (WKM), a public
company with mineral exploration properties in Ontario and Nevada, and a
director of Nextraction Energy Corp. (NE), a public company with oil
properties in Alberta, Kentucky and Wyoming. Frank Hallam, Chief Financial
Officer and Corporate Secretary and a director of the Company, is also a
director, Chief Financial Officer and Corporate Secretary of WKM, a director of
Lake Shore Gold Corp., a public company with producing and exploration
properties in Ontario, and a director of NE. Eric Carlson, a director of the
Company, is a director of NE. Barry Smee, a director of the Company, is a
director of Almaden Minerals Ltd., a company with projects in Mexico, the United
States and Canada. Diana Walters, a director of the Company, was formerly an
executive officer of LMM, a shareholder of the Company that invests in mining
companies.

Such associations may give rise to conflicts of interest from
time to time. As a result of these potential conflicts of interests, the Company
may miss the opportunity to participate in certain transactions, which may have
a material adverse effect on the Companys financial position. The Companys
directors are required by law to act honestly and in good faith with a view to
the best interests of the Company and to disclose any interest that they may
have in any project or opportunity of the Company. If a subject involving a
conflict of interest arises at a meeting of the board of directors, any director
in a conflict must disclose his interest and abstain from voting on such matter.

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

The Company participates in joint ventures and may enter into
other similar arrangements in the future. PTM RSA is a party to the Maseve
Shareholders Agreement related to the exploration and development of Project 1
and Project 3. The Company may sell certain of its interests in Maseve to a BEE
company, which will reduce the Companys level of control. In addition, PTM RSA
is also a party to the JOGMEC Agreement, as amended, related to the exploration
and development of the Waterberg JV Project property, whereby the interests of
the Company, JOGMEC and Mnombo are 37%, 37% and 26% (before the closing of the
Waterberg Consolidation), respectively. PTM RSA is also a 49.9% shareholder of
Mnombo and the relationship among the shareholders of Mnombo is governed by a
formal shareholders agreement. Prior to signing the 2nd Amendment
the Company was negotiating a joint venture agreement with Mnombo with respect
to the Waterberg Extension Project to formalize the present oral joint venture
agreement. Any dispute or disagreement with a joint venture partner, any change
in the identity, management or strategic direction of a joint venture partner,
or any disagreement among the Mnombo shareholders, including with respect to
Mnombos role in the Waterberg Extension Project and the terms of the planned
joint venture agreement for the Waterberg Extension Project, could materially
adversely affect the Companys business and results of operations. If a
dispute arises between the Company and a joint venture partner or the other
Mnombo shareholders that cannot be resolved amicably, the Company may be unable
to move its projects forward and may be involved in lengthy and costly
proceedings to resolve the dispute, such as the dispute that recently led to
arbitration with Africa Wide, which could materially and adversely affect the
Companys business and results of operations.

---

- 68 

Platinum Group Metals Ltd. 2015
Annual Information Form

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

The Company is subject to anti-corruption laws and regulations,
including certain restrictions applicable to U.S. reporting companies imposed by
the U.S. Foreign Corrupt Practices Act of 1977 and similar anti-corruption and
anti-bribery laws in South Africa and Canada. The Companys Code of Business
Conduct and Ethics, among other governance and compliance processes, may not
prevent instances of fraudulent behaviour and dishonesty nor guarantee
compliance with legal and regulatory requirements. The Company is particularly
exposed to the potential for corruption and bribery owing to the financial scale
of the mining business in South Africa. In March 2014, the Organization for
Economic Cooperation and Development released its Phase 3 Report on Implementing
the OECD Anti-bribery Convention in South Africa, criticizing South Africa for
failing to enforce the anti-bribery convention to which it has been a signatory
since 2007. The absence of enforcement of corporate liability for foreign
bribery coincides with recent growth in corporate activity in South Africa's
economic environment. Allegations of bribery, improper personal influence or
officials holding simultaneous business interests have been linked in recent
years to the highest levels of the South African government. To the extent that
the Company suffers from any actual or alleged breach or breaches of relevant
laws, including South African anti-bribery and corruption legislation, it may
lead to regulatory and civil fines, litigation, public and private censure and
loss of operating licenses or permits and may damage the Companys reputation.
The occurrence of any of these events could have an adverse effect on the
Companys business, financial condition and results of operations.

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 venture partners,
shareholders, governmental agencies or others through private actions, class
actions, administrative proceedings, regulatory actions or other litigation. The
outcome of litigation and other legal proceedings that the Company may be
involved in the future, particularly regulatory actions, is difficult to assess
or quantify. Plaintiffs may seek recovery of very large or indeterminate
amounts, and the magnitude of the potential loss relating to such lawsuits may
remain unknown for substantial periods of time. Defense and settlement costs can
be substantial, even with respect to claims that have no merit. Due to the
inherent uncertainty of the litigation process, the litigation process could
take away from the time and effort of the Companys management and could force
the Company to pay substantial legal fees. There can be no assurance that the
resolution of any particular legal proceeding will not have an adverse effect on
the Companys financial position and results of operations.

Risks Related to the Mining Industry

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s business.

Hazards such as fire, explosion, floods, structural collapses,
industrial accidents, unusual or unexpected geological conditions, ground
control problems, power outages, inclement weather, cave-ins and mechanical
equipment failure are inherent risks in the Companys mining operations. These
and other hazards may cause injuries or death to employees, contractors or other
persons at the Companys mineral properties, severe damage to and destruction of
the Companys property, plant and equipment and mineral properties, and
contamination of, or damage to, the environment, and may result in the
suspension of the Companys exploration and development activities and any
future production activities. Safety measures implemented by the Company may not
be successful in preventing or mitigating future accidents and the Company may not be able to obtain insurance
to cover these risk at economically feasible premiums or at all. Insurance
against certain environmental risks is not generally available to the Company or
to other companies within the mining industry.

---

- 69 

Platinum Group Metals Ltd. 2015
Annual Information Form

In addition, from time to time the Company may be subject to
governmental investigations and claims and litigation filed on behalf of persons
who are harmed while at its properties or otherwise in connection with the
Companys operations. To the extent that the Company is subject to personal
injury or other claims or lawsuits in the future, it may not be possible to
predict the ultimate outcome of these claims and lawsuits due to the nature of
personal injury litigation. Similarly, if the Company is subject to governmental
investigations or proceedings, the Company may incur significant penalties and
fines, and enforcement actions against it could result in the cessation of
certain of the Companys mining operations. During the period February/March
2013, operations at Project 1 halted for approximately one month due to a notice
under section 54 of the MHSA issued in relation to a surface worker fatality
that occurred onsite. Since March 2013, Maseve has received several notices
under section 54 that have resulted in short-term halts to operations. If
claims, lawsuits, governmental investigations or proceedings, including section
54 notices or any administrative proceedings regarding Maseves environmental
authorization, are resolved against the Company, the Companys financial
performance, financial position and results of operations could be materially
adversely affected.

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

The Companys prospecting and mining rights may be subject to
prior unregistered agreements, transfers, claims and title may be affected by
undetected defects. A successful challenge to the precise area and location of
these claims could result in the Company being unable to operate on its
properties as permitted or being unable to enforce its rights with respect to
its properties. This could result in the Company not being compensated for its
prior expenditures relating to the property. Title insurance is generally not
available for mineral properties and the Companys ability to ensure that it has
obtained secure claims to individual mineral properties or mining concessions
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 the
development of such prospecting and mining rights.

The Company is subject to significant governmental
regulation.

The Companys operations and exploration and development
activities in South Africa and Canada are subject to extensive federal, state,
provincial, territorial and local laws and regulation governing various matters,
including:

| | environmental protection;                                                                                      
|- | ---------------------------------------------------------------------------------------------------------------
|  |                                                                                                                
| | management and use of hazardous and toxic
      substances and explosives;                                     
|  |                                                                                                                
| | management of tailings and other waste
      generated by the Companys operations;                            
|  |                                                                                                                
| | management of natural resources;                                                                               
|  |                                                                                                                
| | exploration, development of mines, production
      and post-closure reclamation;                              
|  |                                                                                                                
| | exports and, in South Africa, potential local
      beneficiation quotas;                                      
|  |                                                                                                                
| | price controls;                                                                                                
|  |                                                                                                                
| | taxation;                                                                                                      
|  |                                                                                                                
| | regulations concerning business dealings with
      local communities;                                         
|  |                                                                                                                
| | labour standards, BEE laws and regulations and
      occupational health and safety, including mine safety; and
|  |                                                                                                                
| | historic and cultural preservation.                                                                            

Failure to comply with applicable laws and regulations may
result in civil or criminal fines or administrative penalties or enforcement
actions, including orders issued by regulatory or judicial authorities enjoining
or curtailing operations or requiring corrective measures,
installation of additional equipment or remedial actions, any of which could
result in the Company incurring significant expenditures. The Company may also
be required to compensate private parties suffering loss or damage by reason of
a breach of such laws, regulations or permitting requirements. It is also
possible that future laws and regulations, or a more stringent enforcement of
current laws and regulations by governmental authorities, could cause additional
expense, capital expenditures, restrictions on or suspensions of the Companys
operations and delays in the development of the Companys properties.

---

- 70 

Platinum Group Metals Ltd. 2015
Annual Information Form

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

Natural resource exploration, development and mining activities
are dependent on the availability of mining, drilling and related equipment in
the particular areas where such activities are conducted. A limited supply of
such equipment or access restrictions may affect the availability of such
equipment to the Company and may delay exploration, development or extraction
activities. Certain equipment may not be immediately available, or may require
long lead time orders. A delay in obtaining necessary equipment for mineral
exploration, including drill rigs, could have a material adverse effect on the
Companys operations and financial results.

Mining, processing, development and exploration activities also
depend, to one degree or another, on the availability of adequate
infrastructure. Reliable roads, bridges, power sources, fuel and water supply
and the availability of skilled labour and other infrastructure are important
determinants that affect capital and operating costs. At each of the Companys
projects, additional infrastructure will be required prior to commencement of
mining. At Project 1, the Companys most advanced project, the Company is in the
process of constructing additional infrastructure, including additional power
and water; however, such efforts are subject to a number of risks, including
risks related to the availability of equipment and materials, inflation, cost
overruns and delays, political opposition and reliance upon third parties, many
of which are outside the Companys control. The lack of availability on
acceptable terms or the delay in the availability of any one or more of these
items could prevent or delay development of the Companys projects.

Exploration of mineral properties is less intrusive, and
generally requires fewer surface and access rights, than properties developed
for mining. The Company has not secured any surface rights at the Waterberg
Projects other than those access rights legislated by the MPRDA. If a decision
is made to develop the Waterberg Projects, or other projects in which the
Company has yet to secure adequate surface rights, the Company will need to
secure such rights. No assurances can be provided that the Company will be able
to secure required surface rights on favourable terms, or at all. Any failure by
the Company to secure surface rights could prevent or delay development of the
Companys projects.

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 on a global basis is evolving in a
manner that will ensure stricter standards and enforcement, increased fines and
penalties for non-compliance, more stringent environmental assessment of
proposed development and a higher level of responsibility and potential
liability for companies and their officers, directors, employees and,
potentially, shareholders. Compliance with environmental laws and regulations
may require significant capital outlays on behalf of the Company and may cause
material changes or delays in the Companys intended activities. There can be no
assurance that future changes to environmental legislation in Canada or South
Africa will not adversely affect the Companys operations. Environmental hazards
may exist on the Companys properties which are unknown at present and which
have been caused by previous or existing owners or operators for which the
Company could be held liable. Furthermore, future compliance with environmental
reclamation, closure and other requirements may involve significant costs and
other liabilities. In particular, the Companys operations and exploration
activities are subject to Canadian and South African national and provincial
laws and regulations governing protection of the environment. Such laws are
continually changing and, in general, are becoming more onerous, such as the
recent amendments under the NEMLAA. See South African Regulatory Framework 
Environment.

---

- 71 

Platinum Group Metals Ltd. 2015
Annual Information Form

Amendments to current laws, regulations and permits governing
operations and activities of mining companies, or more stringent implementation
thereof, could have a material adverse impact on the Company and cause increases
in capital expenditures or production costs or a reduction in levels of
production at producing properties or require abandonment or delays in
development of new mining properties.

Environmental hazards may exist on the Companys properties
that are unknown at the present time, and that may have been caused by previous
owners or operators or that may have occurred naturally. These hazards, as well
as any pollution caused by the Company's mining activities, may give rise to
significant financial obligations in the future and such obligations could have
a material adverse effect on the Companys financial performance.

The mineral exploration industry is extremely
competitive.

The resource industry is intensely competitive in all of its
phases. Much of the Companys competition is from larger, established mining
companies with greater liquidity, greater access to credit and other financial
resources, and that may have newer or more efficient equipment, lower cost
structures, more effective risk management policies and procedures and/or
greater ability than the Company to withstand losses. The Companys competitors
may be able to respond more quickly to new laws or regulations or emerging
technologies, or devote greater resources to the expansion of their operations,
than the Company can. In addition, current and potential competitors may make
strategic acquisitions or establish cooperative relationships among themselves
or with third parties. Competition could adversely affect the Companys ability
to acquire suitable new producing properties or prospects for exploration in the
future. Competition could also affect the Companys ability to raise financing
to fund the exploration and development of its properties or to hire qualified
personnel. The Company may not be able to compete successfully against current
and future competitors, and any failure to do so could have a material adverse
effect on the Companys business, financial condition or results of operations.

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 to comply with the terms of any such permits that the
Company has obtained, could have a material adverse impact on the
Company.

The Companys current and anticipated future operations,
including further exploration, development activities and commencement of
production on the Companys properties, require permits from various national,
provincial, territorial and local governmental authorities in the countries in
which the Companys properties are located. Compliance with the applicable
environmental legislation, permits and land use consents is required on an
ongoing basis, and the requirements under such legislation, permits and consents
are evolving rapidly. The Waterberg Projects prospecting rights issued by the
DMR are also subject to land use consents and compliance with applicable
legislation on an ongoing basis.

In addition, the duration and success of efforts to obtain,
amend and renew permits are contingent upon many variables not within the
Companys control. Shortage of qualified and experienced personnel in the
various levels of government could result in delays or inefficiencies. Backlog
within the permitting agencies could also affect the permitting timeline of the
Companys various projects. Other factors that could affect the permitting
timeline include the number of other large scale projects currently in a more
advanced stage of development, which could slow down the review process, and
significant public response regarding a specific project. As well, it can be
difficult to assess what specific permitting requirements will ultimately apply
to all of the Companys projects.

Risks of Doing Business in South Africa

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 are unionized. As a result, trade unions could have a significant
impact on the Companys labour relations, as well as on social and political
reforms. There is a risk that strikes 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. Labour disruptions may be used to advocate labour,
political or social goals in the future. For example, labour disruptions may
occur in sympathy with strikes or labour unrest in other sectors of the economy.
South African employment law sets out minimum terms and conditions of employment
for employees, which form the benchmark for all employment contracts.
Disruptions in the Companys business due to strikes or further developments in
South African labour laws may increase the Companys costs or alter its
relationship with its employees and trade unions, which may have an adverse
effect on the Companys financial condition and operations. South Africa has
recently experienced widespread illegal strikes and violence.

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Platinum Group Metals Ltd. 2015
Annual Information Form

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

The Company has ownership interests in significant projects in
South Africa. As a result, it is subject to political and economic risks
relating to South Africa, which could affect an investment in the Company. South
Africa was transformed into a democracy in 1994. The government policies aimed
at redressing the disadvantages suffered by the majority of citizens under
previous governments may impact the Companys South African business. In
addition to political issues, South Africa faces many challenges in overcoming
substantial differences in levels of economic development among its people.
Large parts of the South African population do not have access to adequate
education, health care, housing and other services, including water and
electricity.

There can be no assurance that wild cat strikes and violence
will not occur at the Companys properties in the future. Wild cat strikes and
violence at the Project 1 platinum mine may have a material negative impact on
the project and its startup mine operations. The Company also faces a number of
risks from deliberate, malicious or criminal acts relating to these
inequalities, including theft, fraud, bribery and corruption.

The Company is also subject to the risk of resource
nationalism, which encompasses a range of measures, such as expropriation or
taxation, whereby governments increase their economic interest in natural
resources, with or without compensation. Although wholesale nationalization was
rejected by the ruling party, the African National Congress, leading into the
2014 national elections, a resolution adopted by the African National Congress
on nationalization calls for state intervention in the economy, including state
ownership. A wide range of stakeholders have proposed ways in which the State
could extract greater economic value from the South African mining industry. A
call for resource nationalisation has also been made by a new political party,
the Economic Freedom Fighters under the leadership of Julius Malema.

The Company cannot predict the future political, social and
economic direction of South Africa or the manner in which government will
attempt to address the country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 the Companys business. Furthermore, there has been
regional, political and economic instability in countries north of South Africa,
which may affect South Africa. Such factors may have a negative impact on the
Companys ability to own, operate and manage its South African mining projects.

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

The Companys privately held land could be subject to land
restitution claims under the Restitution of Land Rights Act, No. 22 of
1994, as amended (the Land Claims Act) and the Restitution of
Land Rights Amendment Act, No. 15 of 2014 (Restitution Amendment
Act), which took effect on July 1, 2014. Under the Land Claims 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 racially discriminatory
laws or practices without payment of just and equitable compensation, and who
lodges a claim on or before June 30, 2019, is granted certain remedies. A
successful claimant may be granted either return of the dispossessed land
(referred to as "restoration") or equitable redress (which includes the
granting of an appropriate right in alternative state-owned land, payment of
compensation or "alternative relief"). If restoration is claimed, the
Land Claims Act requires the feasibility of such restoration to be considered.

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Platinum Group Metals Ltd.
2015 Annual Information Form

Restoration of land may only be given in circumstances where a
claimant can use the land productively with the feasibility of restoration
dependent on the value of the property.

The South African Minister of Rural Development and Land Reform
may not acquire ownership of land for restitution purposes without a court order
unless an agreement has been reached between the affected parties. The Land
Claims Act also entitles the South African Minister of Rural Development and
Land Reform to acquire ownership of land by way of expropriation either for
claimants who are entitled to restitution of land, or, in respect of land over
which no claim has been lodged but the acquisition of which is directly related
to or affected by such claim, will promote restitution of land to claimants or
alternative relief. Expropriation would be subject to provisions of legislation
and the South African Constitution which provide, in general, for just and
equitable compensation.

The Company has not been notified of any land claims to date
over the Companys properties. There is no guarantee, however, that any of the
Companys privately held land rights could not become subject to acquisition by
the state without the Companys agreement, or that the Company would be
adequately compensated for the loss of its land rights. Any such claims could
have a negative impact on the Companys South African projects and therefore an
adverse effect on its business, operating results and financial condition.

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 in South Africa.

With the enactment of the MPRDA, the South African state became
the sole regulator of all prospecting and mining operations in South Africa. All
prospecting and mining licenses and claims granted in terms of any prior
legislation became known as the old order rights. All prospecting and mining
rights granted in terms of the MPRDA are new order rights. The treatment of
new applications and pending applications is uncertain and any adverse decision
by the relevant regulatory authorities under the MPRDA may adversely affect
title to the Companys mineral rights in South Africa, which could stop,
materially delay or restrict the Company from proceeding with its exploration
and development activities or any future mining operations.

A wide range of factors and principles must be taken into
account by the South African Minister of Mineral Resources when considering
applications for new order rights. These factors include the applicants access
to financial resources and appropriate technical ability to conduct the proposed
prospecting or mining operations, the environmental impact of the operation 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 South Africans and showing compliance with
the provisions regarding the empowerment of HDSAs in the mining industry. All of
the Companys old order prospecting rights in respect of Project 1 and Project 3
were first converted into new order prospecting rights and subsequently, in
April 2012, were superseded by the Mining Right. All of the Companys current
prospecting rights are new order rights.

The assessment of some of the provisions of the MPRDA or the
Mining Charter may be subjective and is dependent upon the views of the DMR as
to whether the Company is in compliance. The Social and Labour Plan, for
instance, contains both quantitative and qualitative goals, targets and
commitments relating to the Companys obligations to its employees and community
residents, the achievement of some of which are not exclusively within the
Companys control. Certain of the socio-economic projects identified in the
Social and Labour Plan have proved inappropriate or unviable given prevailing
conditions and levels of training within the local communities in the vicinity
of Project 1. Such projects have been identified and the Company has consulted
with the DMR regarding a course of action. An application is being made to the
DMR to amend the Social and Labour Plan to target more appropriate and viable
projects. However, if Maseve is found to be in noncompliance with its Social and
Labour Plan, the Minister may institute the section 47 process discussed below.
At this time, the Company has not received a notice of noncompliance from the
DMR.

The Minister has the discretion to cancel or suspend mining
rights under section 47(1) of the MPRDA as a consequence of the Companys
noncompliance with the MPRDA, the Mining Charter, the terms of its Mining Right
and prospecting rights or if mining is not progressing optimally. The section 47
process involves multiple, successive stages which include granting the
Company a reasonable opportunity to show why its rights should not be cancelled
or suspended. Pursuant to the terms of the provisions of section 6(2)(e)(iii) of
the Promotion of Administrative Justice Act No. 3 of 2000 (PAJA) read
with section 6 of the MPRDA, the Minister can direct the Company to take
remedial measures. If such remedial measures are not taken, the Minister must
again give the Company a reasonable opportunity to make representations as to
why such remedial measures were not taken. The Minister must then properly
consider the Companys further representations (which considerations must also
comply with PAJA) and only then is the Minister entitled to cancel or suspend a
mining right. Any such cancellation or suspension will be subject to judicial
review if it is not in compliance with the MPRDA or PAJA, or it is not lawful,
reasonable and procedurally fair under section 33(1) of the South African
Constitution.

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Platinum Group Metals Ltd. 2015
Annual Information Form

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 or cancellation of such rights and the suspension of the Companys
other rights, which would have a material adverse effect on the Companys
business, financial condition and results of operations.

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

The Company is subject to a number of South African statutes
aimed at promoting the accelerated integration of HDSAs, including the MPRDA,
the BEE Act and the Mining Charter. To ensure that socio-economic strategies are
implemented, the MPRDA provides for the Mining Codes which specify empowerment
targets consistent with the objectives of the Mining Charter. The Mining Charter
Scorecard requires the mining industrys commitment of applicants in respect of
ownership, management, employment equity, human resource development,
procurement and beneficiation. For ownership by BEE groups in mining
enterprises, the Mining Charter Scorecard sets a 26% target by December 31,
2014. The Company has historically partnered with BEE groups or companies that
were HDSA controlled at the time on all of its material projects in South Africa
at a level of 26% at an operating or project level.

The South African government awards procurement contracts,
quotas, licenses, permits and prospecting and mining rights based on numerous
factors, including the degree of HDSA ownership. The MPRDA and Mining Charter
contain provisions relating to the economic empowerment of HDSAs. One of the
requirements which must be met before the DMR will issue a prospecting right or
mining right is that an applicant must facilitate equity participation by HDSAs
in the prospecting and mining operations which result from the granting of the
relevant rights. As a matter of stated policy, the DMR requires a minimum of 26%
HDSA ownership for the grant of applications for mining rights. The Mining
Charter requires a minimum of 26% HDSA ownership by December 31, 2014.

The Company has sought to satisfy the foregoing requirements by
partnering, at the operating company level, with companies demonstrating 26%
HDSA ownership. The Company has partnered with Africa Wide with respect to
Maseve, which owns the Mining Right to Projects 1 and 3, and has partnered with
Mnombo with respect to the Waterberg JV Project and for the prospecting rights
and applications over the Waterberg Extension.

The Company believes that Africa Wide was majority owned by
HDSA individuals in 2002, when it first partnered with the Company. However, the
Companys contractual arrangements with Africa Wide do not currently require
Africa Wide to maintain any minimum level of HDSA ownership or to certify the
level of such ownership to the Company. In 2007, Wesizwe (which was then
majority owned by HDSA individuals) acquired 100% of the shares of Africa Wide.
On an application of the flow-through principles, Africa Wide remained an HDSA
company. On December 8, 2008, the Company entered into certain agreements to
consolidate and rationalize the ownership of the WBJV (the Consolidation
Transaction). Under the terms of the Consolidation Transaction, the Company
transferred its 18.5% interest in Project 2 to Wesizwe, therefore providing
attributable units of production and further enhancing the ownership of mining
assets by HDSA companies. Under the same transaction, Amplats acquired a then
approximately 26.9% interest in Wesizwe. In 2011, Jinchuan Group Limited of
China and China Africa Development Fund, with the approval of the DMR and
notwithstanding that the transaction resulted in Wesizwe not being majority
owned by HDSAs, acquired a then approximately 45% interest in Wesizwe.

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Platinum Group Metals Ltd. 2015
Annual Information Form

Although Amplats interest is held for preferential disposition
to a qualified BEE purchaser, HDSA individuals do not currently own a majority
of the Wesizwe equity. In April 2012, Maseve was granted a Mining Right over
Projects 1 and 3 by the DMR and the grant of the Mining Right by the DMR, by
stated policy, is an acknowledgement of Maseves BEE compliance status as being
acceptable to the DMR. There can be no assurance when, or if, the transfer of
Amplats interest in Wesizwe to a qualified BEE purchaser will occur. Also,
there can be no assurance that the HDSA ownership may not be re-assessed or that
the criteria for HDSA ownership may not be interpreted differently in the
future. If only the direct shareholdings of Africa Wide and its parent are
considered, and other factors which were 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% HDSA ownership level.

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 was completed and delivered to the Company. The arbitrator
ruled in favor of the Company on all matters in contention. The favorable award
reduced Africa Wides shareholding in Maseve to 21.2766% . As a result of Africa
Wides decision on March 3, 2014 not to fund its US$21.52 million share of a
second cash call delivered in February 2014, Africa Wides ownership in Maseve
was further reduced to approximately 17.1% based on the dilution formula in the
Maseve Shareholders Agreement, as confirmed by the arbitration.

There is currently no legal or regulatory certainty over
whether the principle of "once empowered, always empowered" (i.e., whether a
company that has reached its empowerment targets under the Mining Charter will
remain empowered if its HDSA participation subsequently falls below required
thresholds) would apply. The DMR and the Chamber of Mines of South Africa
(acting on behalf of the mining industry) are currently engaged in litigation
which may result in some clarity on the principle "once empowered, always
empowered", but this is likely to be a lengthy process and no assurance can be
given regarding the ultimate outcome of such litigation or its impact on the
Company. In addition, an application has been filed in the High Court of South
Africa to have the Mining Charter itself set aside.

The Company is satisfied that Mnombo is majority owned by HDSA
individuals. The contractual arrangements between Mnombo, the Company and the
HDSA shareholders require the HDSA shareholders to maintain a minimum level of
HSDA ownership in Mnombo of more than 50%. However, if at any time Mnombo
becomes a company that is not majority owned by HDSA individuals, the ownership
structure of the Waterberg JV Project and the prospecting rights and
applications over the Waterberg Extension Project may be deemed not to satisfy
HDSA requirements.

Subject to conditions contained in the Companys prospecting
and mining rights, the Company may be required to obtain approval from the DMR
prior to undergoing any change in its empowerment status under the Mining
Charter. In addition, if the Company or its BEE partners are found to be in
non-compliance with the requirements of the Mining Charter and other BEE
regulations, including failure to retain the requisite level of HDSA ownership,
the Company may face possible suspension or cancellation of its mining rights
under a process governed by section 47 of the MPRDA.

In addition, there have been a number of proposals made at
governmental level in South Africa regarding amendments and clarifications to
the methodology for determining HDSA ownership and control of mining businesses,
including the Amendment Bill, which create greater uncertainty in measuring the
Companys progress towards, and compliance with, its commitments under the
Mining Charter and other BEE regulations. If implemented, any of these proposals
could result in, among other things, stricter criteria for qualification as an
HDSA investor.

The Company is obliged to report on its compliance with the
Mining Charter, including its percentage of HDSA shareholding, to the DMR on an
annual basis. The Company submitted a report on March 31, 2014 and has yet to
receive any feedback from the DMR in regard thereto.

If the Company is required to increase the percentage of HDSA
ownership in any of its operating companies or projects, the Companys interests
may be diluted. In addition, it is possible that any such transactions or plans,
or the investment by a new BEE partner in Maseve to attain a 26% interest by
qualified BEE companies, may need to be executed at a discount to the proper
economic value of the Companys operating assets or it may also prove necessary
for the Company to provide vendor financing 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 Shareholders Agreement, if Maseve is instructed by the DMR to increase
its HDSA ownership, any agreed costs or dilution of interests shall be borne
equally by the Company and Africa Wide, notwithstanding that Africa Wide holds
17.1% of the equity after the second missed cash call.

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Platinum Group Metals Ltd. 2015
Annual Information Form

Currently, the South African Department of Trade and Industry
is responsible for leading government action on the implementation of BEE
initiatives under the auspices of the BEE Act and the Generic BEE Codes, while
certain industries have their own transformation charters administered by the
relevant government department (in this case, the DMR). The BEE Amendment Act
came into operation on October 24, 2014. Among other matters, the BEE Amendment
Act amends the BEE Act to make the BEE Act the overriding legislation in South
Africa with regard to BEE through the Trumping Provision and will require all
governmental bodies to apply the Generic BEE Codes or other relevant code of
good practice when procuring goods and services or issuing licenses or other
authorizations under any other laws, and penalize fronting or misrepresentation
of BEE information. The Trumping Provision came into effect on October 24, 2015.
However, on 30 October 2015 the South African Minister of Trade and Industry
exempted the DMR from applying the BEE Trumping Provisions for a period of
twelve months on the basis that the alignment of the Mining Charter with the BEE
Act and the BEE Codes is still ongoing. Generally speaking, the amended Generic
BEE Codes will make BEE-compliance more onerous to achieve. The Generic BEE
Codes are substantially different from the Mining Charter and, if they were to
apply to the mining industry, would place the industry at a disadvantage. See
South African Regulatory Framework  Black Economic Empowerment in the South
African Mining Industry.

The Trumping Provision will require Mnombo to be 51% held and
controlled by HDSAs to qualify it as a black-controlled company and hence a
qualified BEE entity. Mnombo is presently 50.1% HDSA owned and controlled.

If the Company is unable to achieve or maintain its empowered
status under the Mining Charter or comply with any other BEE regulations or
policies, it may not be able to maintain its existing prospecting and mining
rights and/or acquire any new rights and therefore would be obliged to suspend
or dispose of some or all of its operations in South Africa, which would likely
have a material adverse effect on the Companys business, financial condition
and results of operations.

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 of operations and its financial condition.

The Mineral and Petroleum Resources Royalty Act, 2008
(Royalty Act) effectively came into operation on May 1, 2009. The
Royalty Act establishes a variable royalty rate regime, in which the prevailing
royalty rate for the year of assessment is assessed against the gross sales of
the extractor during the year. The royalty rate is calculated based on the
profitability of the mine (earnings before interest and taxes) and varies
depending on whether the mineral is transferred in refined or unrefined form.
For mineral resources transferred in unrefined form, the minimum royalty rate is
0.5% of gross sales and the maximum royalty rate is 7% of gross sales. For
mineral resources transferred in refined form, the maximum royalty rate is 5% of
gross sales. The royalty will be a tax deductible expense. The royalty becomes
payable when the mineral resource is transferred, which refers to the disposal
of a mineral resource, the export of a mineral resource or the consumption,
theft, destruction or loss of a mineral resource. The Royalty Act allows the
holder of a mining right to enter into an agreement with the tax authorities to
fix the percentage royalty that will be payable in respect of all mining
operations carried out in respect of that resource for as long as the extractor
holds the right. The holder of a mining right may withdraw from such agreement
at any time.

The feasibility studies covering the Companys South African
projects made certain assumptions related to the expected royalty rates under
the Royalty Act. If and when the Company begins earning revenue from its South
African mining projects, and if the royalties under the Royalty Act differ from
those assumed in the feasibility studies, this new royalty could have a material
and adverse impact on the economic viability of the Companys projects in South
Africa, as well as on the Companys prospects, financial condition and results
of operations.

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Platinum Group Metals Ltd. 2015
Annual Information Form

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

The Companys subsidiaries pay different types of governmental
taxes in South Africa, including corporation tax, payroll taxes, VAT, state
royalties, various forms of duties, dividend withholding tax and interest
withholding tax. The tax regime in South Africa is subject to change.

After having published a number of papers on the introduction
of a carbon tax, the South African government released the draft Carbon Tax Bill
in November 2015 for comment by interested parties. Greenhouse gas emissions
from the combustion of fossil fuels, fugitive emissions in respect of
commodities, fuel or technology, and greenhouse gas emissions from industrial
processes and product use will be subject to a carbon tax. During the first
phase of implementation (ending 2020), it is proposed that the emission of
greenhouse gasses be taxed at R120 per tonne of the carbon dioxide equivalent of
the greenhouse gas emitted, which rate is expected to increase by 10% per annum.
Emission factors will be used in order to calculate the carbon dioxide
equivalent of the greenhouse gasses emitted. Various allowances will be
available for taxpayers to reduce their final carbon tax liability by up to a
maximum of 95%. The Minister of Environmental Affairs will publish a notice
indicating which activities will render a person liable for the carbon tax. The
agricultural, forestry and waste sectors will initially be excluded. The rate
and allowances will be reviewed for the second phase of implementation (after
2020). It is expected that the final legislation will come into operation on 1
January 2017.

The ANC held a policy conference in June 2012 at which the
State Intervention in the Minerals Sector report commissioned by the ANC was
debated. The report includes a proposal for a super tax of 50% of all profits
above a 15% return on investment, which would apply in respect of all metals and
minerals. If a super tax is implemented, the Company may realize lower after-tax
profits and cash flows from its current mining operations and may decide not to
pursue certain new projects, as such a tax could render these opportunities
uneconomic.

It is also possible that the Company could become subject to
taxation in South Africa that is not currently anticipated, which could have a
material adverse effect on its business, financial condition and results of
operations.

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

The Company procures electricity from Eskom, South Africa's
state-owned electricity utility. Eskom is the sole supplier of electricity to
the Company's operations, and no significant alternative sources of supply are
available to it. Eskom has suffered from prolonged underinvestment in new
generating capacity which, combined with increased demand, has led to
electricity shortages in recent years. Since 2008, Eskom has invested heavily in
new base load power generation capacity, but its principal project, a power
station known as Medupi, has been subject to delays, with the last unit
scheduled for commissioning in 2019. In addition, Eskom is heavily dependent on
coal to fuel its electricity plants. Accordingly, if coal mining companies
experience labour unrest or disruptions to production (which have occurred
historically in South Africa, including a coal strike by approximately 30,000
NUM members which lasted for approximately one week in October 2015), or if
heavy rains, particularly during the summer months in South Africa, adversely
impact coal production or coal supplies, Eskom may have difficulty supplying
sufficient electricity supply to the Company.

The Company procures water from Magalies Water, the statutory,
state-owned water authority in the Company's area of operations. The Company is
dependent on the availability of water in its areas of operations and in
particular on the ability of Magalies Water to provide it with sufficient
allocation of water to enable it to conduct its business. Shifting rainfall
patterns and increasing demands on the existing water supply have caused water
shortages in the Company's areas of operations.

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Platinum Group Metals Ltd. 2015
Annual Information Form

Risks Relating to the Companys Common Shares

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

The Company has not paid any dividends since incorporation and
it has no plans to pay dividends in the foreseeable future. The Companys
directors will determine if and when dividends should be declared and paid in
the future based on the Companys financial position at the relevant time. All
of the common shares are entitled to an equal share of any dividends declared
and paid. In addition, the Companys ability to pay dividends may be affected by
the South African governments exchange controls. See South African Regulatory
Framework  Exchange Control.

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 of securities of many companies, particularly those considered
exploration or development-stage mining companies, have experienced wide
fluctuations in price which have not necessarily been related to the operating
performance, underlying asset values or prospects of such companies. In
particular, the per share price of the common shares on the Toronto Stock
Exchange fluctuated from a high of $1.16 to a low of $0.33 and on the NYSE MKT
LLC from a high of US$1.06 to a low of US$0.25 during the twelve month period
ending August 31, 2015. There can be no assurance that continual fluctuations in
price will not occur.

The factors influencing such volatility include macroeconomic
developments in North America and globally, and market perceptions of the
attractiveness of particular industries. The price of the common shares is also
likely to be significantly affected by short term changes in precious metal
prices or other mineral prices, currency exchange fluctuations and the Companys
financial condition or results of operations as reflected in its earnings
reports. Other factors unrelated to the performance of the Company that may have
an effect on the price of the common chares include the following:

| | the extent of analyst coverage available to
      investors concerning the business of the Company may be limited if
      investment banks with research capabilities do not follow the Companys
      securities;                         
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                              
| | lessening in trading volume and general market
      interest in the Companys securities may affect an investors ability to
      trade significant numbers of securities of the Company;                                                  
|  |                                                                                                                                                                                                                                              
| | changes to South African laws and regulations
      might have a negative effect on the development prospects, timelines or
      relationships for the Companys material properties;                                                       
|  |                                                                                                                                                                                                                                              
| | the size of the Companys public float may
      limit the ability of some institutions to invest in the Companys
      securities; and                                                                                                     
|  |                                                                                                                                                                                                                                              
| | a substantial decline in the price of the
      securities of the Company that persists for a significant period of time
      could cause the Companys securities to be delisted from an exchange,
      further reducing market liquidity.

Securities class action litigation often has been brought
against companies following periods of volatility in the market price of their
securities. The Company may in the future be the target of similar litigation.
Securities litigation could result in substantial costs and damages and divert
managements attention and resources.

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

Global financial conditions continue to be characterized by
extreme volatility. Many industries, including the mining industry, are impacted
by these market conditions. Global financial conditions remain subject to sudden
and rapid destabilizations in response to future economic shocks, as government
authorities may have limited resources to respond to future crises. A continued
or worsened slowdown in the financial markets or other economic conditions, including but
not limited to, consumer spending, employment rates, business conditions,
inflation, fuel and energy costs, consumer debt levels, lack of available
credit, the state of the financial markets, interest rates and tax rates, may
adversely affect the Companys growth and profitability. Future economic shocks
may be precipitated by a number of causes, including the ongoing European debt
crisis, a continued rise in the price of oil and other commodities, the
volatility of metal prices, geopolitical instability, terrorism, the devaluation
and volatility of global stock markets and natural disasters. Any sudden or
rapid destabilization of global economic conditions could impact the Companys
ability to obtain equity or debt financing in the future on terms favourable to
the Company or at all. In such an event, the Companys operations and financial
condition could be adversely impacted.

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- 79 

Platinum Group Metals Ltd. 2015
Annual Information Form

Future sales or issuances of equity securities could
decrease the value of the Common Shares, dilute investors voting power and
reduce the Companys earnings per share.

The Company may sell additional equity securities in subsequent
offerings (including through the sale of securities convertible into equity
securities) and may issue additional equity securities to finance operations,
exploration, development, acquisitions or other projects. The Company cannot
predict the size of future issuances of equity securities or the size and terms
of future issuances of debt instruments or other securities convertible into
equity securities or the effect, if any, that future issuances and sales of the
Companys securities will have on the market price of the common shares. Any
transaction involving the issuance of previously authorized but unissued shares,
or securities convertible into common shares, would result in dilution, possibly
substantial, to security holders. Exercises of presently outstanding share
options may also result in dilution to security holders.

The board of directors of the Company has the authority to
authorize certain offers and sales of additional securities without the vote of,
or prior notice to, shareholders. Based on the need for additional capital to
fund expected expenditures and growth, it is likely that the Company will issue
additional securities to provide such capital. Such additional issuances may
involve the issuance of a significant number of common shares at prices less
than the current market price.

Sales of substantial amounts of the Companys securities, or
the availability of such securities for sale, could adversely affect the
prevailing market prices for the Companys securities and dilute investors
earnings per share. A decline in the market prices of Companys securities could
impair the Companys ability to raise additional capital through the sale of
securities should the Company desire to do so.

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

Certain adverse tax considerations may be applicable to a
shareholder that is a corporation resident in Canada and is, or becomes,
controlled by a non-resident corporation for the purposes of the proposed
foreign affiliate dumping rules in the Income Tax Act (Canada). Such
shareholders should consult their tax advisors with respect to the consequences
of acquiring common shares.

The Company is likely a passive foreign investment
company, which may have adverse U.S. federal income tax consequences for U.S.
shareholders.

U.S. investors in its common shares should be aware that the
Company believes it was classified as a passive foreign investment company
(PFIC) during the tax year ended August 31, 2015, and based on current
business plans and financial expectations, the Company expects that it may be a
PFIC for the current tax year and may be a PFIC in future tax years. If the
Company is a PFIC for any year during a U.S. shareholders holding period, then
such U.S. shareholder generally will be required to treat any gain realized upon
a disposition of common shares, or any so-called excess distribution received
on its common shares, as ordinary income, and to pay an interest charge on a
portion of such gain or distributions, unless the shareholder makes a timely and
effective qualified electing fund election (QEF Election) or a
mark-to-market election with respect to its common shares. A U.S. shareholder
who makes a QEF Election generally must report on a current basis its share of
the Companys net capital gain and ordinary earnings for any year in which the
Company is a PFIC, whether or not the Company distributes any amounts to its
shareholders. However, U.S. shareholders should be aware that there can be no assurance that the Company will satisfy the record
keeping requirements that apply to a qualified electing fund, or that the
Company will supply U.S. shareholders with information that such U.S.
shareholders require to report under the QEF Election rules, in the event that
the Company is a PFIC and a U.S. shareholder wishes to make a QEF Election.
Thus, U.S. shareholders may not be able to make a QEF Election with respect to
their common shares. A U.S. shareholder who makes the mark-to-market election
generally must include as ordinary income each year the excess of the fair
market value of its common shares over the shareholders basis therein. Each
U.S. shareholder should consult its own tax advisors regarding the PFIC rules
and the U.S. federal income tax consequences of the acquisition, ownership, and
disposition of common shares.

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- 80 

Platinum Group Metals Ltd. 2015
Annual Information Form

DIVIDENDS AND DISTRIBUTIONS

The Company has not declared nor paid dividends or
distributions on its common shares in any of its three most recently completed
financial years.

There following restrictions could prevent the Company from
paying dividends or distributions:

|(a) | the exchange controls of the Government of South Africa.
      See South African Regulatory Framework - Exchange Control;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(b) | In 2012, the Government of South Africa replaced the
      longstanding secondary tax on corporations with a dividend tax levied on
      shareholders. Before the new dividend tax became law, secondary tax on
      corporations had been levied at a rate of 10% on all dividends declared by
      companies resident in South Africa. The current rate of dividends tax is
      15%. Under an existing tax treaty between Canada and South Africa, the
      effective rate under the new dividend tax in South Africa on dividends
      paid from Maseve and PTM RSA to the Company will be 5% of the gross amount
      of dividends, provided the Company continues to hold at least 10% of the
      capital of PTM RSA. Dividend taxes are to be withheld by corporations in
      South Africa on behalf of shareholders and remitted to the South African
      Revenue Service.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(c) | Both the Sprott Facility and the LMM Facility specify
      that the Company may not declare and pay dividends during the terms of
      those agreements, except with the prior written consent of Sprott and/or
      LMM, as applicable,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

The Company has no current dividend or distribution policy and
has no present intention to change its dividend or distribution policy, as it
anticipates that all available funds will be invested to finance the growth of
its business. The Companys directors will determine if and when dividends
should be declared and paid in the future based on the Companys financial
position at the relevant time.

MARKET FOR SECURITIES

Trading Price and Volume

The common shares are listed on the TSX under the symbol PTM
and on the NYSE MKT (formerly the NYSE Amex) under the symbol PLG.

The following tables provide information as to the high and low
trading prices of the common shares during the 12 months of the most recently
completed financial year as well as the volume of common shares traded for each
month:

Toronto Stock Exchange  PTM

Month
    High (C$/share)1
    Low (C$/share)(1)
    Volume (# of shares)September, 2014
    $1.19
    $0.98
    4,630,253October, 2014
    $1.00
    $0.85
    2,227,709November, 2014
    $1.10
    $0.67
    2,554,816December, 2014
    $0.74
    $0.51
    7,561,291


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- 81 

Platinum Group Metals Ltd. 2015
Annual Information Form

Month
    High (C$/share)1
    Low (C$/share)(1)
    Volume (# of shares)January, 2015
    $0.71
    $0.50
    8,149,596February, 2015
    $0.71
    $0.57
    1,920,441March, 2015
    $0.73
    $0.60
    1,970,305April, 2015
    $0.74
    $0.50
    4,370,939May, 2015
    $0.59
    $0.51
    6,686,491June, 2015
    $0.55
    $0.49
    2,460,829July, 2015
    $0.51
    $0.38
    3,889,313August, 2015
    $0.44
    $0.32
    2,039,351


Note:

|(1) | Based on intra-day highs and
lows.
|--- | ----------------------------------

NYSE MKT  PLG

Month
    High (US$/share)1
    Low (US$/share)(1)
    Volume (# of shares)September, 2014
    $1.08
    $0.87
    3,745,813October, 2014
    $0.92
    $0.73
    3,645,874November, 2014
    $0.94
    $0.62
    2,969,314December, 2014
    $0.67
    $0.45
    7,541,990January, 2015
    $0.57
    $0.42
    10,804,166February, 2015
    $0.56
    $0.46
    5,873,294March, 2015
    $0.58
    $0.47
    6,842,345April, 2015
    $0.60
    $0.41
    7,022,811May, 2015
    $0.49
    $0.42
    3,735,005June, 2015
    $0.45
    $0.39
    3,718,212July, 2015
    $0.44
    $0.30
    5,748,849August, 2015
    $0.34
    $0.24
    4,938,153


Note:

|(2) | Based on intra-day highs and
lows.
|--- | ----------------------------------

Prior Sales

During the 12 months preceding the date of this AIF, the
Company has issued the following stock options (Options) convertible
into common shares at the following exercise prices:

Date of Issuance
    Number of Options Issued(1)
    Exercise PricesFebruary 16, 2015
    9,405,000
    $0.65TOTAL
    9,405,000


Note:

|(1) | Each Option is exercisable into one common
  share.
|--- | ---------------------------------------------------

ESCROWED SECURITIES AND SECURITIES SUBJECT
TOCONTRACTUAL RESTRICTION ON TRANSFER

There are no securities of the Company held, to the Companys
knowledge, in escrow or that are subject to a contractual restriction on
transfer.

DIRECTORS AND OFFICERS

Name, Occupation and Security Holding

Name, Province or State and Country of
      Residence, Positions and Offices
    Principal Occupation or Employment during the
      preceding five years
    Director since(6)R. MICHAEL JONES(4) British Columbia,
      Canada President, CEO and Director
    Professional Geological Engineer. President and Chief
      Executive Officer of the Company and a predecessor company from 2000 to
      the present.
    February 18, 2002


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Platinum Group Metals Ltd. 2015
Annual Information Form

Name, Province or
      State and Country of Residence, Positions and
      Offices
    Principal Occupation or Employment during the
      preceding five years
    Director since(6)FRANK R. HALLAM(4) British Columbia,
      Canada CFO, Corporate Secretary and Director
    Chartered Accountant. Chief Financial Officer of the
      Company and the founder of a predecessor company from 1983 to the present.
    February 18, 2002BARRY SMEE(1)(2)(3) British Columbia,
      Canada Director
    Geologist and Geochemist. President of Smee &
      Associates, a private consulting, geological and geochemistry company,
      from 1990 to the present.
    February 18, 2002IAIN McLEAN(1)(2)(3) British Columbia,
      Canada Chairman and Director
    General Management Consultant and Chartered Engineer.
      Chief Operating Officer, MineSense Technologies, a technology company
      based in Vancouver, B.C. from Aug 2014 to Sep 2015; Regional Vice
      President, Gemcom Software/Dassault Systemes GEOVIA from June 2010 to July
      2014.
    February 18, 2002ERIC CARLSON(1) British Columbia,
      Canada Director
    Chartered Accountant. Chief Executive Officer of Anthem
      Works Ltd., a real estate investment, development and management company,
      from July 1994 to the present.
    February 18, 2002TIMOTHY D. MARLOW(3)(4) British
      Columbia, Canada Director
    Chartered Mining Engineer and Consultant. President of
      Philippine Gold Consulting LLC from 1995  2014; President of Marlow &
      Associates from 1995 to the present.
    June 15, 2011DIANA WALTERS(1)(2) North Salem, New
      York, USA Director
    Consulting specialist primarily in natural resources,
      principal investing, investment banking/finance and industry management.
      President and CEO of Liberty Metals and Mining Holdings, LLC from Jan 2010
      to Oct 2014.
    July 16, 2013PETER BUSSE British Columbia, Canada COO
    Professional Mining Engineer. Chief Operating Officer of
      the Company from Oct 2007 to the present.
    N/A


Notes:

|(1) | Member of the Audit Committee                      
|--- | ---------------------------------------------------
|(2) | Member of the Compensation Committee               
|(3) | Member of the Governance and Nominating
  Committee
|(4) | Member of the Disclosure
Committee                 

As of November 24, 2015, directors and executive officers of
the Company, as a group, beneficially own, control or direct, directly or
indirectly, approximately 5,208,450 common shares representing approximately
0.67% of the Companys issued and outstanding common shares.

The term of office for each director of the Company expires at
the annual general meeting of shareholders where they can be nominated for
re-election.

Corporate Cease Trade Orders, Bankruptcies, Penalties or
Sanctions

Except as disclosed below, no director or executive officer of
the Company (or any of their personal holding companies) is, or during the ten
years preceding the date of this AIF has been, a director, chief executive
officer or chief financial officer of any company, including the Company, that:

|(i)  | was subject to an order that was issued while the
      director or executive officer was acting in the capacity as director,
      chief executive officer or chief financial order; or                                                                                                                                                  
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                           
|(ii) | was subject to an order that was issued after the
      director or executive officer ceased to be a director, chief executive
      officer or chief financial officer and which resulted from an event
      that occurred while that person was acting in the capacity as
director, chief executive officer or chief financial officer;

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- 83 

Platinum Group Metals Ltd. 2015
Annual Information Form

Mr. Jones and Mr. Hallam are directors of Nextraction Energy
Corp. (NE), which is currently the subject of a Cease Trade Order of
the BCSC issued on May 8, 2015 for failing to file a comparative financial
statement for its financial year ended December 31, 2014 and a Form 51-102F1
Management's Discussion and Analysis for the period ended December 31, 2014 (the
Required Records). NE is working on a financing and reorganization so
that it can complete the Required Records.

For the purposes hereof, order means:

| | (a) | a cease trade order;                                                                                 
| | --- | -----------------------------------------------------------------------------------------------------
| |     |                                                                                                      
| | (b) | an order similar to a cease trade order; or                                                          
| |     |                                                                                                      
| | (c) | an order that denied the relevant company access to any
      exemption under securities legislation,

that was in effect for a period of more than 30 consecutive
days.

No director or executive officer of the Company, or a
shareholder holding a sufficient number of securities of the Company to affect
materially the control of the Company, (or any of their personal holding
companies):

|(i)  | is, as at the date of this AIF or during the ten years
      preceding the date of this AIF has been, a director or executive officer,
      of any company, including the Company, that while the director or
      executive officer was acting in that capacity or within a year of that
      person ceasing to act in that capacity, became bankrupt, made a proposal
      under any legislation relating to bankruptcy or insolvency or was subject
      to or instituted any proceedings, arrangement, or compromise with
      creditors, or had a receiver, receiver manager, or trustee appointed to
      hold its assets; or
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(ii) | has, within the ten years before the date of this AIF,
      become bankrupt, made a proposal under any legislation relating to
      bankruptcy or insolvency, or become subject to or instituted any
      proceedings, arrangement or compromise with creditors, or had a receiver,
      receiver manager or trustee appointed to hold the assets of that director
      or executive officer.                                                                                                                                                                                                                                        

No director or executive officer of the Company, or a
shareholder holding a sufficient number of securities of the Company to affect
materially the control of the Company, (or any of their personal holding
companies) has been subject to:

|(i)  | any penalties or sanctions imposed by a court relating to
      securities legislation or by a securities regulatory authority or has
      entered into a settlement agreement with a securities regulatory
      authority; or
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                 
|(ii) | any other penalties or sanctions imposed by a court or
      regulatory body which would likely be considered important to a reasonable
      investor in making an investment decision.                                        

Conflicts of Interest

Certain of the Companys directors and officers may serve as
directors or officers of other companies or have significant shareholdings in
other resource companies and, to the extent that such other companies may
participate in ventures in which the Company may participate, the directors of
the Company may have a conflict of interest in negotiating and concluding terms
respecting the extent of such participation. In the event that such a conflict
of interest arises at a meeting of the Companys directors, a director who has
such a conflict will abstain from voting for or against the approval of such
participation or such terms. Such companies may, from time to time, compete with
the Company for business opportunities. In addition, several companies may
participate in the acquisition, exploration and development of natural resource
properties thereby allowing for their participation in larger programs,
permitting involvement in a greater number of programs and reducing financial
exposure in respect of any one program. It may also occur that a particular
company will assign all or a portion of its interest in a particular program to
another of these companies due to the financial position of the company
making the assignment. In accordance with the laws of British Columbia the
directors of the Company are required to act honestly, in good faith and in the
best interests of the Company. In determining whether or not the Company will
participate in a particular program and the interest therein to be acquired by
it, the directors will primarily consider the degree of risk to which the
Company may be exposed and its financial position at that time.

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- 84 

Platinum Group Metals Ltd. 2015
Annual Information Form

The directors and officers of the Company are aware of the
existence of laws governing the accountability of directors and officers for
corporate opportunity and requiring disclosures by the directors of conflicts of
interest and the Company will rely upon such laws in respect of any directors
and officers conflicts of interest or in respect of any breaches of duty by any
of its directors and officers. All such conflicts will be disclosed by such
directors or officers in accordance with the laws of British Columbia shall
govern themselves in respect thereof to the best of their ability in accordance
with the obligations imposed upon them by law. The Company leases office space
from a company with a director in common, and provides administrative services
to several companies with directors or management in common. The directors and
officers of the Company are not aware of any conflicts of interests involving
the Companys mineral properties.

Code of Ethics

The Company has adopted a Code of Business Conduct and Ethics
(the Code) that applies to all of its directors, officers and
employees, including the Chief Executive Officer and Chief Financial Officer.
The Code includes provisions covering conflicts of interest, ethical conduct,
compliance with applicable government laws, rules and regulations, disclosure in
reports and documents filed with, or submitted to, the SEC, reporting of
violations of the Code and accountability for adherence to the Code. A copy of
the Code is posted on the Companys website, at
www.platinumgroupmetals.net.

LEGAL PROCEEDINGS AND REGULATORY ACTIONS

Legal Proceedings

During the most recently completed financial year, there were
no legal proceedings to which the Company is or was the subject of. The Company
knows of no legal proceedings to be contemplated.

Regulatory Actions

There are no penalties or sanctions imposed against the Company
by a court relating to securities legislation or by a securities regulatory
authority during the Companys financial year. There are no other penalties or
sanctions imposed by a court or regulatory body against the Company that would
likely be considered important to a reasonable investor in making an investment
decision. There are no settlement agreements entered into by the Company before
a court relating to securities legislation or with a securities regulatory
authority during the Companys financial year.

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

No director, executive officer or person or company that
beneficially owns, or controls or directs, directly or indirectly, more than ten
percent of the common shares of the Company, or any associate or affiliate of
the foregoing, has had any material interest, direct or indirect, in any
transaction within the three most recently completed financial years or during
the current financial year that has materially affected or is reasonable
expected to materially affect the Company.

---

- 85 

Platinum Group Metals Ltd. 2015
Annual Information Form

TRANSFER AGENTS AND REGISTRARS

The Companys transfer agent and registrar is Computershare
Investor Services Inc. in Canada and Computershare Trust Company, N.A. in the
USA. The registers of transfers of the common shares of the Company are located
in Vancouver, British Columbia and Toronto, Ontario in Canada and in Golden, CO
in the USA.

MATERIAL CONTRACTS

Except for contracts entered into in the ordinary course of
business, the only material contracts that we have entered in the financial year
ended August 31, 2015, or before the last financial year but still in effect,
are as follows:

|1. | Shareholders Rights Plan Agreement dated July 9, 2012
      between the Company and Computershare Investor Services Inc. as Rights
      Agent and approved by the Shareholders on January 8, 2013;
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                    
|2. | The Maseve Shareholders Agreement among PTM RSA, Africa
      Wide and Maseve dated April 24, 2008; and                                                                                            
|   |                                                                                                                                                                                                    
|3. | The JOGMEC Agreement, as amended, dated October 12, 2009
      among the Company, JOGMEC and Mnombo governing the Waterberg Joint
      Venture.                                                   

Other than the above, there are no contracts other than
contracts entered into in the ordinary course of business of the Company (See
Mineral Property Interests), that are material to the Company and that were
entered into within the most recently completed financial year of the Company or
before the most recently completed financial year of the Company and which are
still in effect.

INTERESTS OF EXPERTS

Names of Experts

The following persons or companies are named as having prepared
or certified a report, valuation, statement or opinion described in or included
in a filing, or referred to in a filing, made under NI 51-102 by the Company
during, or relating to the Companys most recently completed financial year,
whose profession or business gives authority to the report, valuation, statement
or opinion made by the person of company.

Name
    DescriptionCharles Muller (B. Sc. (Hons) Geology) Pri. Sci. Nat.,
      CJM Consulting (Pty) Ltd.
    Authored the Project 3 Report and the July 2015 Waterberg
      Report, each of which is referred to herein. Co-authored the Project 1
      Report, also referred to herein.Gert Roets (B. Eng. Mining), Pr. Eng. (ECSA), of DRA
      Mineral Projects (Pty) Ltd.
    Co-authored the Project 1 Report, which is referred to
      herein.Gordon Cunningham, B. Eng. (Chemical), Pr. Eng. (ECSA) of
      Turnberry Projects (Pty) Ltd.
    Co-authored the Project 1 Report, which is referred to
      herein.R. Michael Jones, P. Eng. Platinum Group
    The President and Chief Executive Officer of the Company.
      The non-independent Qualified Person for the disclosure in the material
      change reports of the Company dated October 2, 2013, October 17, 2013,
      October 21, 2013, November 11, 2013, November 14, 2013, November 26, 2013,
      December 9, 2013, February 14, 2014, March 4, 2014, June 12, 2014, and
      July 22, 2014 and certain disclosure contained herein.


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- 86 

Platinum Group Metals Ltd. 2015
Annual Information Form

Interests of Experts

There were no registered or beneficial interests, direct or
indirect, in any securities or other property of the Company or of one of the
Companys associates or affiliates (a) held by the persons or companies named
above (experts), and if the expert is not an individual, by the designated
professionals of that expert, when that expert prepared the report, valuation,
statement or opinion referred to above; (b) received by an expert named above
and, if the expert is not an individual, by the designated professionals of that
expert, after the time that expert prepared the report, valuation, statement or
opinion referred to above; or (c) to be received by an expert named above and,
if the expert is not an individual, by the designated professionals of that
expert, except for R. Michael Jones or other than compensation in cash for their
services.

None of the aforementioned experts, nor any directors, officers
or employees of an expert referred to above, is currently expected to be
elected, appointed or employed as a director, officer or employee of the Company
or of any associate or affiliate of the Company.

In addition, PricewaterhouseCoopers LLP are the external
auditor of the Company who have issued an independent auditors report dated
November 24, 2015 in respect of the Companys consolidated statements of
financial position of the Company as at August 31, 2015 and August 31, 2014 and
the related consolidated statements of loss and comprehensive loss, changes in
equity and cash flows for the years ended August 31, 2015 and August 31, 2014.
PricewaterhouseCoopers LLP has advised that they are independent of the Company
within the meaning of the Rules of Professional Conduct of the Institute of
Chartered Accountants of British Columbia and the rules of the SEC.

ADDITIONAL INFORMATION

Additional Information

Additional information relating to the Company may be found on
SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Additional information, including directors and officers
remuneration and indebtedness, principal holders of the Companys securities and
securities authorized for issuance under equity compensation plans, if
applicable, is contained in the Companys information circular for its most
recent annual meeting of shareholders.

Additional financial information is provided in the Companys
Financial Statements and Managements Discussion and Analysis for the year ended
August 31, 2015.

Copies of the above may be obtained, on the Companys website
www.platinumgroupmetals.net; on the SEDAR website at
www.sedar.com; on the SECs EDGAR website at www.sec.gov; or by
calling the Companys investor relations personnel at 604-899-5450.

Audit Committee

Pursuant to National Instrument 52 110  Audit
Committees (NI 52-110), companies that are required to file an AIF
are required to provide certain disclosure with respect to their audit
committee. The Companys audit committee (Audit Committee) is
responsible for reviewing the Companys financial reporting procedures, internal
controls and the performance of the Companys external auditors.

Audit Committee Charter

The text of the Audit Committee Charter attached hereto as
Schedule A.

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- 87 

Platinum Group Metals Ltd. 2015
Annual Information Form

Audit Committee Composition and Background

The Audit Committee is comprised of Eric Carlson (Chairman),
Iain McLean, Barry Smee and Diana Walters. All four members of the Audit
Committee are independent and financially literate, meaning they are able to
read and understand the Companys financial statements and to understand the
breadth and level of complexity of the issues that can reasonably be expected to
be raised by the Companys financial statements.

In addition to each members general business experience, the
education and experience of each member of the Audit Committee that is relevant
to the performance of his or her responsibilities as a member of the Audit
Committee are set forth below:

Eric H. Carlson, B.Comm, Chartered
Accountant - Mr. Carlson has over 20 years of real estate investment,
development and management experience and he has been the President of Anthem
Works Ltd. (Anthem) since July 1994. Anthem is an investment group that
specializes in the acquisition, development and management of Class B retail,
multi-family residential and office properties in high growth markets in Canada
and the USA.

Iain D. C. McLean, B.Sc.Eng (ARSM),
M.B.A., MIMM. C. Eng.  Mr. McLean has experience as a senior executive in
several public companies managing operations, listings, capital raising, etc. He
also has experience in underground mining operations in the UK and South Africa.

Dr. Barry W. Smee, Ph.D., P.Geo -
Professional geologist/geochemist with 46 years in mineral exploration as a
quality control and laboratory audit expert.

Diana Walters  Ms. Walters has over 25
years in the financial services sector and has served on the audit committee of
other publicly-traded companies.

The board of directors has determined that each of Mr. McLean
and Mr. Carlson is an audit committee financial expert within the meaning of the
regulations promulgated by the SEC and is independent within the meaning of the
NYSE-MKT LLC Company Guide. Mr. McLean has an M.B.A. from Harvard Business
School and a B.Sc (Eng.) in Mining from the Imperial College of Science and
Technology (London, England). In addition to his education, Mr. McLean has
gained relevant experience acting as the Chief Operating Officer of several
private technology companies since 1995 and as the Vice President of Operations
at Ballard Power Systems from 1993 to 1995. Mr. Carlson is a Chartered
Accountant and holds a Bachelor of Commerce degree from the University of
British Columbia.

Reliance on Certain Exemptions

At no time since the commencement of the Companys most
recently completed financial year has the Company relied on any of the
exemptions set out in Section 2.4 (De Minimis Non-audit Services),
Section 3.2 (Initial Public Offerings), Section 3.4 (Events Outside
Control of Member), Section 3.5 (Death, Disability or Resignation of
Audit Committee Member),Subsection 3.3(2)(Controlled Companies),3.6(Temporary Exemption for Limited and Exceptional Circumstances)
or Section 3.8 (Acquisition of Financial Literacy) of NI 52-110, or an
exemption from NI 52-110, in whole or in part, granted under Part 8 of NI
52-110.

Audit Committee Oversight

At no time since the commencement of the Companys most
recently completed financial year was a recommendation of the Audit Committee to
nominate or compensate an external auditor not adopted by the board of
directors.

Pre-Approval Policies and Procedures

The Companys Audit Committee is authorized to review the
performance of the Companys independent auditors and pre-approves all audit and
non-audit services to be provided to the Company by its independent auditor. Prior to granting any pre-approval, the
Audit Committee must be satisfied that the performance of the services in
question is not prohibited by applicable securities laws and will not compromise
the independence of the independent auditor. All non-audit services performed by
the Companys auditor for the fiscal year ended August 31, 2015 and August 31,
2014 have been pre-approved by the Audit Committee.

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Platinum Group Metals Ltd. 2015
Annual Information Form

External Auditor Service Fees (By Category)

The aggregate fees billed by the Companys current independent
auditor, PricewaterhouseCoopers LLP, during the fiscal years ended August 31,
2015 and 2014 are set forth below:

Year ended August 31,
      2015
    Year ended August 31,
      2014Audit Fees
    $274,000
    $304,475Audit-Related
      Fees(1)
    $66,000
    $68,512Tax
      Fees(2)
    $6,000
    $6,300All Other
      Fees(3)
    $3,000
    $5,545Total
    $349,000
    $384,832


Notes:

|(1) | The aggregate fees billed for assurance and related
      services that are reasonably related to the performance of the audit or
      review of our financial statements, which are not included under the
      heading Audit Fees.                             
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | The aggregate fees billed for professional services
      rendered for tax compliance, tax advice and tax planning, including
      restructuring advice.                                                                                                            
|(3) | The aggregate fees billed for products and services other
      than as set out under the headings Audit Fees, Audit Related Fees and
      Tax Fees. These fees related to agreed review procedures on the transfer
      of certain South African properties.

---

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Platinum Group Metals Ltd. 2015 Annual Information Form

SCHEDULE A

PLATINUM GROUP METALS LTD.(the Corporation)

AUDIT COMMITTEE CHARTER

|1. | General
|-- | -------

The Board of Directors of the Corporation (the Board)
has established an Audit Committee (the Committee) to assist the Board
in fulfilling its oversight responsibilities. The Committee will review and
oversee the financial reporting and accounting process of the Corporation, the
system of internal control and management of financial risks, the external audit
process, and the Corporations process for monitoring compliance with laws and
regulations and its own code of business conduct. In performing its duties, the
Committee will maintain effective working relationships with the Board,
management, and the external auditors and monitor the independence of those
auditors. To perform his or her role effectively, each Committee member will
obtain an understanding of the responsibilities of Committee membership as well
as the Corporations business, operations and risks.

The Corporations independent auditor is ultimately accountable
to the Board and to the Committee. The Board and Committee, as representatives
of the Corporations shareholders, have the ultimate authority and
responsibility to evaluate the independent auditor, to nominate annually the
independent auditor to be proposed for shareholder approval, to determine
appropriate compensation for the independent auditor, and where appropriate, to
replace the outside auditor. In the course of fulfilling its specific
responsibilities hereunder, the Committee must maintain free and open
communication between the Corporations independent auditors, Board and
Corporation management. The responsibilities of a member of the Committee are in
addition to such members duties as a member of the Board.

|2. | Members
|-- | -------

The Board will in each year appoint a minimum of three (3)
directors as members of the Committee. All members of the Committee shall be
non-management directors and shall be independent within the meaning of all
applicable U.S. and Canadian securities laws and the rules of the Toronto Stock
Exchange and the NYSE MKT LLC (collectively, the Applicable
Regulations), unless otherwise exempt under the Applicable Regulations.

None of the members of the Committee may have participated in
the preparation of the financial statements of the Corporation or any current
subsidiary of the Corporation at any time during the past three years.

All members of the Committee shall be able to read and
understand fundamental financial statements and must be able to read and
understand fundamental financial standards and satisfy all applicable financial
literacy requirements of the Applicable Regulations. Additionally, at least one
member of the Committee shall: (a) be financially sophisticated, in that he or
she shall have past employment experience in finance or accounting, requisite
professional certification in accounting, or any other comparable experience or
background which results in the individuals financial sophistication, which may
include being or having been a chief executive officer, chief financial officer,
or other senior officer with financial oversight responsibilities; and (b) be an
audit committee financial expert within the meaning of U.S. federal securities
laws.

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Platinum Group Metals Ltd. 2015 Annual Information Form

|3. | Duties
|-- | ------

The Committee will have the following duties:

| |  | Gain an understanding of whether internal control
      recommendations made by external auditors have been implemented by
      management.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | Gain an understanding of the current areas of greatest
      financial risk and whether management is managing these effectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | Review significant accounting and reporting issues,
      including recent professional and regulatory pronouncements, and
      understand their impact on the financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | Review any legal matters which could significantly impact
      the financial statements as reported on by the Corporations counsel and
      engage outside independent counsel and other advisors whenever as deemed
      necessary by the Committee to carry out its duties.                                                                                                                                                                                                                                                                                                                                                   
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | Review the Corporations annual and quarterly financial
      statements, including Managements Discussion and Analysis with respect
      thereto, and all annual and interim earnings press releases, prior to
      public dissemination, including any certification, report, opinion or
      review rendered by the external auditors and determine whether they are
      complete and consistent with the information known to Committee members;
      determine that the auditors are satisfied that the financial statements
      have been prepared in accordance with generally accepted accounting
      principles.
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | Pay particular attention to complex and/or unusual
      transactions such as those involving derivative instruments and consider
      the adequacy of disclosure thereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | Focus on judgmental areas, for example those involving
      valuation of assets and liabilities and other commitments and
      contingencies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | Review audit issues related to the Corporations material
      associated and affiliated companies that may have a significant impact on
      the Corporations equity investment.                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | Meet with management and the external auditors to review
      the annual financial statements and the results of the audit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | Evaluate the fairness of the interim financial statements
      and related disclosures including the associated Managements Discussion
      and Analysis, and obtain explanations from management on whether:                                                                                                                                                                                                                                                                                                                                                                                                                    

| |  | actual financial results for the interim period
      varied significantly from budgeted or projected results;                                        
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                       
| |  | generally accepted accounting principles have
      been consistently applied;                                                                        
| |   |                                                                                                                                                       
| |  | there are any actual or proposed changes in
      accounting or financial reporting practices; or                                                     
| |   |                                                                                                                                                       
| |  | there are any significant or unusual events or
      transactions which require disclosure and, if so, consider the adequacy of
      that disclosure.

| |  | Review the external auditors proposed audit scope and
      approach and ensure no unjustifiable restriction or limitations have been
      placed on the scope.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  | Recommend to the Board an external auditor to be
      nominated for appointment by the Corporations shareholders. Subject to
      the appointment of the Corporations external auditor by the Corporations
      shareholders, the Committee will be directly responsible for the
      appointment, compensation, retention and oversight of the work of external
      auditor engaged for the purpose of preparing or issuing an auditors
      report or performing other audit, review or attest services for the Corporation, including
the resolution of disagreements between management and the external auditor
regarding financial reporting. The Corporations external auditor shall report
directly to the Committee.

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Platinum Group Metals Ltd. 2015 Annual Information Form

| |  | Review with the Corporations management, on a
      regular basis, the performance of the external auditors, the terms of the
      external auditors engagement, accountability and experience.                          
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                             
| |  | Pre-approve all non-audit services and tax
      services to be provided to the Corporation or its subsidiary entities by
      the external auditor, or other registered accounting firm.                                  
| |   |                                                                                                                                                                                                                             
| |  | Consider at least annually the independence of
      the external auditors, including reviewing the range of services provided
      in the context of all consulting services obtained by the Corporation,
      including:

| |  | insuring receipt from the independent auditor of a formal
      written statement delineating all relationships between the independent
      auditor and the Company, consistent with the Independence Standards Board
      Standard No. 1 and related Canadian regulatory body standards;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                             
| |  | considering and discussing with the independent auditor
      any relationships or services, including non-audit services, that may
      impact the objectivity and independence of the independent auditor; and                                                                           
| |   |                                                                                                                                                                                                                                                                                             
| |  | as necessary, taking, or recommending that the Board
      take, appropriate action to oversee the independence of the independent
      auditor.                                                                                                                                           

| |  | Ensure that adequate procedures are in place for the
      review of the Corporations public disclosure of financial information
      extracted or derived from the Corporations financial statements, other
      than the public disclosure contained in the Corporations financial
      statements, Managements Discussion and Analysis and annual and interim
      earnings press releases; and must periodically assess the adequacy of
      those procedures.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | Review any significant disagreement among management and
      the external auditors in connection with the preparation of the financial
      statements.                                                                                                                                                                                                                                                                                                                 
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | Review and approve the Corporations hiring policies
      regarding partners, employees and former partners and employees of the
      present and former external auditors of the Corporation.                                                                                                                                                                                                                                                                           
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | Establish a procedure for:                                                                                                                                                                                                                                                                                                                                                                                                                                                 

| |  | the confidential, anonymous submission by
      employees of the Corporation of concerns regarding questionable accounting
      or auditing matters; and          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                    
| |  | the receipt, retention and treatment of
      complaints received by the Corporation regarding accounting, internal
      accounting controls, or auditing matters.

| |  | Meet separately with the external auditors to
      discuss any matters that the committee or auditors believe should be
      discussed privately in the absence of management.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                 
| |  | Endeavour to cause the receipt and discussion
      on a timely basis of any significant findings and recommendations made by
      the external auditors.                      
| |   |                                                                                                                                                                                 
| |  | Ensure that the Board is aware of matters which
      may significantly impact the financial condition or affairs of the
      business.                                        
| |   |                                                                                                                                                                                 
| |  | Review and oversee all related party
      transactions within the meaning of the Applicable Regulations.                                                                       
| |   |                                                                                                                                                                                 
| |  | Perform other functions as requested by the
      Board.                                                                                                                        

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Platinum Group Metals Ltd. 2015
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| |  | If necessary, institute special investigations
      and, if appropriate, hire special counsel or experts to assist, and set
      the compensation to be paid to such special counsel or other experts.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                         
| |  | Review and re-assess annually the adequacy of
      this Charter and recommend updates to this charter; receive approval of
      changes from the Board.                                               
| |   |                                                                                                                                                                                                         
| |  | With regard to the Corporations internal
      control procedures, the Committee is responsible to:                                                                                                    

| |  | review the appropriateness and effectiveness of the
      Corporations policies and business practices which impact on the
      financial integrity of the Corporation, including those related to
      internal auditing, insurance, accounting, information services and systems
      and financial controls, management reporting and risk management; and
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                  
| |  | review compliance under the Corporations business
      conduct and ethics policies and to periodically review these policies and
      recommend to the Board changes which the Committee may deem appropriate;
      and                                                                                                                                      
| |   |                                                                                                                                                                                                                                                                                                                                                                  
| |  | review any unresolved issues between management and the
      external auditors that could affect the financial reporting or internal
      controls of the Corporation; and                                                                                                                                                                                     
| |   |                                                                                                                                                                                                                                                                                                                                                                  
| |  | periodically review the Corporations financial and
      auditing procedures and the extent to which recommendations made by the
      internal audit staff or by the external auditors have been implemented.                                                                                                                                                  

|4. | Chair
|-- | -----

The Committee will in each year appoint the Chair of the
Committee from among the members of the Committee. In the Chairs absence, or if
the position is vacant, the Committee may select another member as Chair. The
Chair will not have a casting vote.

|5. | Meetings
|-- | --------

The Committee will meet at least once every calendar quarter.
Special meetings shall be convened as required. Notices calling meetings shall
be sent to all members of the Committee, all Board members and the external
auditor. The external auditor of the Corporation must be given reasonable notice
of, and has the right to appear before and to be heard at, each meeting of the
Committee. At the request of the external auditor, the Committee must convene a
meeting of the Committee to consider any matter that the external auditor
believes should be brought to the attention of the Board or shareholders of the
Corporation.

The Committee may invite such other persons (e.g. without
limitation, the President or Chief Financial Officer) to its meetings, as it
deems appropriate.

|6. | Quorum
|-- | ------

A majority of members of the Committee, present in person, by
teleconferencing, or by videoconferencing, or by any combination of the
foregoing, will constitute a quorum.

|7. | Removal and Vacancy
|-- | -------------------

A member may resign from the Committee, and may also be removed
and replaced at any time by the Board, and will automatically cease to be a
member as soon as the member ceases to be a director of the Corporation. The
Board will fill vacancies in the Committee by appointment from among the
directors in accordance with Section 2 of this Charter. Subject to quorum
requirements, if a vacancy exists on the Committee, the remaining members will
exercise all of the Committees powers.

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Platinum Group Metals Ltd. 2015 Annual Information Form

|8. | Authority
|-- | ---------

The Committee may:

| |  | engage independent counsel and other advisors
      as it determines necessary to carry out its duties.
| | - | -------------------------------------------------------------------------------------------------------
| |   |                                                                                                        
| |  | set and pay the compensation for any advisors
      employed by the Committee; and                     
| |   |                                                                                                        
| |  | communicate directly with the internal and
      external auditors.                                    

The Committee may also, within the scope of its
responsibilities, seek any information it requires from any employee and from
external parties, to obtain outside legal or professional advice, and to ensure
the attendance of Corporation officers at meetings as appropriate.

|9. | Secretary and
Minutes
|-- | ---------------------

The Chair of the Committee will appoint a member of the
Committee or other person to act as Secretary of the Committee for purposes of a
meeting of the Committee. The minutes of the Committee meetings shall be in
writing and duly entered into the books of the Corporation, and will be
circulated to all members of the Board.

|10. | Funding
|--- | -------

The Corporation shall provide for appropriate funding, as
determined by the Committee, for payment of (a) compensation to any registered
public accounting firm engaged for the purposes of preparing or issuing an audit
report or performing other audit, review or attest services for the Corporation;
(b) compensation to any advisers employed by the Committee; and (c) ordinary
administrative expenses of the Committee that are necessary or appropriate in
carry out its duties.

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Platinum Group Metals Ltd. 2015
Annual Information Form

SCHEDULE B

List of Abbreviations and Glossary of Mining Terms

The following is a list of abbreviations and a glossary of
certain mining terms used in this AIF:

3E refers to platinum, palladium
  and gold, collectively.

4E refers platinum, palladium, rhodium and gold,
collectively.

amsl refers to above mean sea level.

anomalous refers to a sample or location that either
(i) the concentration of an element(s) or (ii) geophysical measurement is
significantly different from the average background values in the area.

anomaly refers to the geographical area corresponding
to anomalous geochemical or geophysical values.

anorthosite is an intrusive igneous rock characterized
by a predominance of plagioclase feldspar (90-100%), and a minimal mafic
component (010%). Pyroxene, ilmenite, magnetite, and olivine are the mafic
minerals most commonly present.

anticlines is a ridge or ridge-shaped fold of
stratified rock in which the strata slope downward from the crest.

apatite is a widely occurring pale green to purple
mineral, consisting of calcium phosphate with some fluorine, chlorine, and other
elements.

assay is an analysis to determine the quantity of one
or more elemental components.

Au refers to gold.

basket price per 4E ounce refers to the aggregate
value for one combined ounce of platinum, palladium, rhodium and gold, based on
the prill split, or ratio of representative metals, for each of the four
elements contained in the combined 4E ounce, valued at a stated price per ounce
for those same elements.

blebs is a small particle.

chromitite is an igneous cumulate rock composed mostly
of the mineral chromite. It is found in layered intrusions.

cm refers to centimetres.

Cu refers to copper.

cupellation is a refining process for nonoxidizing
metals, such as silver and gold, in which a metallic mixture is oxidized at high
temperatures and base metals are separated by absorption into the walls of a
cupel.

deposit is a mineralized body, which has been
physically delineated by sufficient drilling, trenching, and/or underground
work, and found to contain a sufficient average grade of metal or metals to
warrant further exploration and/or development expenditures. Such a deposit does
not qualify as a commercially mineable ore body or as containing ore reserves,
until final legal, technical, and economic factors have been resolved.

diamond drill is a type of rotary drill in which the
cutting is done by abrasion rather than percussion. The cutting bit is set with
diamonds and is attached to the end of the long hollow rods through which water
is pumped to the cutting face. The drill cuts a core of rock that is covered in
long cylindrical sections, an inch or more in diameter.

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dolerite is a dark basic intrusive igneous rock
consisting of plagioclase feldspar and a pyroxene.

dunite is a green to brownish coarse-grained igneous
rock consisting largely of olivine.

early-stage exploration project refers to a property
that has been subjected to a limited amount of physical testing and systematic
exploration work with no known extensive zone of mineralization.

exploration stage refers to the stage where a company
is engaged in the search for minerals deposits (reserves), which are not in
either the development or production stage.

fault is a fracture in a rock across which there has
been displacement.

felsic, felsites and feldspathic
refers to an igneous rock that contains a group of light-colored silicate
minerals, including feldspar, feldspathoid, quartz, and muscovite.

fracture is a break in a rock, usually along flat
surfaces.

gabbro is an intrusive rock comprised of a mixture of
mafic minerals and feldspars.

grade is the concentration of an ore metal in a rock
sample, given either as weight percent for base metals (i.e., Cu, Zn, Pb) or in
grams per tonne (g/t) or ounces per short ton (oz/t) for precious or platinum
group metals.

g/t refers to grams per tonne.

ha refers to hectares.

harzburgite is a variety of peridotite consisting
mostly of the two minerals, olivine and low-calcium (Ca) pyroxene (enstatite).
It commonly contains a few percent chromium-rich spinel as an accessory mineral.

ICP refers to inductively coupled plasma, a laboratory
technique used for the quantitative analysis of samples (soil, rock, etc.) taken
during field exploration programs.

indicated mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence sufficient to allow
the appropriate application of technical and economic parameters, to support
mine planning and evaluation of the economic viability of the deposit. The
estimate is based on detailed and reliable exploration and testing information
gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely enough for
geological and grade continuity to be reasonably assumed.

inferred mineral resource is that part of a mineral
resource for which quantity and grade or quality can be estimated on the basis
of geological evidence and limited sampling and reasonably assumed, but not
verified, geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes.

intrusive is a rock mass formed below earths surface
from molten magma, which was intruded into a pre-existing rock mass and cooled
to solid.

isopach is a line on a map or diagram connecting
points beneath which a particular stratum or group of strata has the same
thickness.

km refers to kilometres.

kriging is the numerical modeling by applying
statistics to resource calculations (or other earth sciences problems). The
method recognizes that samples are not independent and that spatial continuity
between samples exists.

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Platinum Group Metals Ltd. 2015
Annual Information Form

m refers to metres.

ML/day refers to megalitre/day.

mafic is a rock type consisting of predominantly iron
and magnesium silicate minerals with little quartz or feldspar minerals.

magmatic means pertaining to magma, a naturally
occurring silicate melt, which may contain suspended silicate crystals,
dissolved gases, or both; magmatic processes are at work under the earths
crust.

measured mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape, physical
characteristics are so well established that they can be estimated with
confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits, workings
and drill holes that are spaced closely enough to confirm both geological and
grade continuity.

mineralization refers to minerals of value occurring
in rocks.

mineral reserve is the economically mineable part of a
measured or indicated mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on mining,
processing, metallurgical, economic and other relevant factors that demonstrate,
at the time of reporting, that economic extraction can be justified. A mineral
reserve includes diluting materials and allowances for losses that may occur
when material is mined.

mineral resource is a concentration or occurrence of
natural, solid, inorganic or fossilized organic material in or on the Earths
crust in such form and quantity and of such a grade or quality that it has
reasonable prospects for economic extraction. The location, quantity, grade,
geological characteristics and continuity of a mineral resource are known,
estimated or interpreted from specific geological evidence and knowledge.

MR refers to Merensky Reef.

MVA refers to megavolt ampere.

NI 43-101 refers to National Instrument 43-101 
Standards of Disclosure for Mineral Projects of the Canadian Securities
Administrators which sets out Canadian securities reporting guidelines for
mining companies.

Ni is an abbreviation for nickel.

noritic is a coarse-grained igneous rock, very similar
to gabbro but containing orthopyroxene instead of clinopyroxene.

olivine is a mineral silicate of iron and magnesium,
principally (Mg, Fe) 2SiO4, found in igneous and metamorphic rocks and used as a
structural material in refractories and in cements.

orthopyroxenite is a member of the pyroxene group of
minerals having an orthorhombic crystal structure, such as enstatite and
hypersthenes.

ounce or oz refers to a troy ounce having a
weight of 31.103 grams.

outcrop refers to an exposure of rock at the earths
surface.

overburden is any material covering or obscuring rocks
from view.

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pegmatoid is an igneous rock that has the
coarse-grained texture of a pegmatite but that lacks graphic intergrowths or
typically granitic composition.

Pd refers to palladium.

PGM refers to platinum group metals, i.e. platinum,
palladium, rhodium and gold.

PGE refers to mineralization containing platinum group
elements, i.e. platinum, palladium, rhodium and gold.

plagioclase is a form of feldspar consisting of
aluminosilicates of sodium and/or calcium, common in igneous rocks and typically
white.

ppb refers to parts per billion.

probable mineral reserve is the economically mineable
part of an indicated, and in some circumstances a measured mineral resource
demonstrated by at least a preliminary feasibility study. This study must
include adequate information on mining, processing, metallurgical, economic, and
other relevant factors that demonstrate, at the time of reporting, that economic
extraction can be justified.

proven mineral reserve is the economically mineable
part of a measured mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on mining,
processing, metallurgical, economic and other relevant factors that demonstrate,
at the time of reporting, that economic extraction is justified

Pt refers to platinum.

pyroxenite refers to a relatively uncommon
dark-coloured rock consisting chiefly of pyroxene; pyroxene is a type of rock
containing sodium, calcium, magnesium, iron, titanium and aluminum combined with
oxygen.

Qualified Person as used in this AIF means a Qualified
Person as that term is defined in NI 43-101.

quartz is a common rock-forming mineral (SiO2).

quartzite is an extremely compact, hard, granular rock
consisting essentially of quartz. It often occurs as silicified sandstone, as in
sarsen stones.

Rh refers to rhodium, a platinum metal. Rhodium shares
some of the notable properties of platinum, including its resistance to
corrosion, its hardness and ductility. Wherever there is platinum in the earth,
there is rhodium as well. In fact, most rhodium is extracted from a sludge that
remains after platinum is removed from the ore. A high percentage of rhodium is
also found in certain nickel deposits in Canada.

stope is an underground excavation from which ore has
been extracted.

tailings is the material that remains after all metals
considered economic have been removed from ore during milling.

tonne refers to a metric tonne having a weight of
1,000 kilograms or 2,205 pounds.

troctolite is a gabbro made up mainly of olivine and
calcic plagioclase, often having a spotted appearance likened to a trouts back.

UG2 refers to Upper Group 2 Chromitite Layer or Reef.

ultramafic refers to types of rock containing
relatively high proportions of the heavier elements such as magnesium, iron,
calcium and sodium; these rocks are usually dark in colour and have relatively
high specific gravities.

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Platinum Group Metals Ltd. 2015
Annual Information Form

xenolith is a rock fragment which becomes enveloped in
a larger rock during the latters development and hardening.

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