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Platinum Group
Metals Ltd. (An Exploration and Development Stage
Company) Supplementary Information and MD&A For the year ended August 31, 2013



This Managements
Discussion and Analysis is prepared as of November 26, 2013



A copy of this
report will be provided to any shareholder who requests it.

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

MANAGEMENTS DISCUSSION AND ANALYSIS

This managements discussion and analysis (MD&A)
of Platinum Group Metals Ltd. (Platinum Group, the Company or
PTM) is dated as of November 26, 2013 and focuses on the Companys
financial condition and results of operations for the year ended August 31,
2013. This MD&A should be read in conjunction with the Companys
consolidated audited financial statements for the year ended August 31, 2013
together with the notes thereto (the Financial Statements).

The Company prepares its financial statements in accordance
with International Financial Reporting Standards (IFRS). All dollar
figures included therein and in the following MD&A are quoted in Canadian
Dollars unless otherwise noted. 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.

PRELIMINARY NOTES

NOTE REGARDING FORWARD-LOOKING STATEMENTS:

This MD&A and the documents incorporated by reference
herein contain forward-looking statements and forward-looking information
within the meaning of applicable US 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 MD&A include,
without limitation, statements with respect to:


    revenue, cash flow and cost
      estimates and assumptions;
    production estimates and
      assumptions, including production rate, grade per tonne and smelter
    recovery;
    project economics;
    project debt financing;
    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

2

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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:

| | inability of the Company to find an additional and
      suitable joint venture partner for the Project 1 (as defined herein) and
      Project 3 (as defined herein) platinum mines;                                                                                                                                                                                                                                                                               
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | failure of the Company or its joint venture partners to
      fund their respective pro-rata share of funding obligations;                                                                                                                                                                                                                                                                                                                                          
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | additional financing requirements;                                                                                                                                                                                                                                                                                                                                                                                                                                  
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | history of losses and ability to continue as a going
      concern;                                                                                                                                                                                                                                                                                                                                                                                                 
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | no known mineral reserves on most of the Companys
      properties and delays in, or inability to achieve, planned commercial
      production;                                                                                                                                                                                                                                                                                                                    
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | 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 South African Rand and the United States Dollar;                                                                                                                                                                                                                                                                                                                                
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | metals price volatility;                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | difficulty enforcing certain judgments involving United
      States federal securities laws;                                                                                                                                                                                                                                                                                                                                                                       
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | the Companys potential guarantee obligations under the
      proposed New Project Loan Facility (as defined herein), if consummated;                                                                                                                                                                                                                                                                                                                               
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | delays in the start-up of the Project 1 platinum mine
      which could result in a default under the New Project Loan Facility, if
      consummated;                                                                                                                                                                                                                                                                                                              
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | the ability of the Company to retain its key management
      employees; conflicts of interest;                                                                                                                                                                                                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | 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;                                                                                                                                                                                                                                                                                                   
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | 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;                                                                                                                                                                                                                                                                                                                                                                     

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

| | 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 and potential
      changes to legislation;                                                                                         
|  |                                                                                                                                                                                                                                                             
| | 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 MD&A.                                                                                                                                                                              

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 MD&A are estimates and no assurances can be given that the indicated
levels of platinum (Pt), palladium (Pd), rhodium (Rh)
and gold (Au) (collectively referred to as 4E) 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. While the Company believes that the mineral resource and mineral
reserve estimates included in this MD&A are well established, 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.

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.

NOTE TO U.S. INVESTORS REGARDING RESOURCE ESTIMATES:

Estimates of mineralization and other technical information
included or incorporated by reference herein has been prepared in accordance
with National Instrument 43-101  Standards of Disclosure for Mineral
Projects(NI 43-101). The definitions of proven and probable
reserves used in NI 43-101 differ from the definitions in the United States
Securities and Exchange Commission (SEC) Industry Guide 7. 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.
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 MD&A 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.

4

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

TECHNICAL AND SCIENTIFIC INFORMATION:

The technical and scientific information contained in this
MD&A has been reviewed and approved by R. Michael Jones, P.Eng, President
and Chief Executive Officer and a director of the Company. Mr. Jones is a
non-independent qualified person as defined in NI 43-101 (a Qualified
Person).

1.      DESCRIPTION OF
BUSINESS

Platinum Group Metals Ltd. is a British Columbia, Canada
company amalgamated on February 18, 2002 pursuant to an order of the Supreme
Court of British Columbia approving an amalgamation between Platinum Group
Metals Ltd. and New Millennium Metals Corporation. 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 in
the Republic of South Africa and in Canada.

The Companys business is currently focused on the construction
of the Project 1 platinum mine (Project 1) and the exploration and
initial engineering on the newly discovered Waterberg Platinum deposit, where
the Company is the operator of the Waterberg joint venture project (the
Waterberg JV Project) with the Japanese Oil, Gas and Metals National
Corporation (JOGMEC) and Mnombo Wethu Consultants (Pty) Ltd.
(Mnombo). The Company has also expanded its exploration on to the
prospecting rights covering 530 square kilometers immediately adjacent and north
of the Waterberg JV Project property (the Waterberg Extension Project
and, together with the Waterberg JV Project, the Waterberg Projects).
As a result of the resource scale and thickness of the Waterberg deposit, the
Waterberg Projects have increased in importance in the Companys business over
the past year.

The Companys current complement of managers, staff and
consultants in Canada consist of approximately 13 individuals and the Companys
complement of managers, staff, consultants and casual workers in South Africa
consist of approximately 139 individuals.

Project 1 is operated by the Company on an owner
managed-contractor basis. At present the Company has 20 of its staff, 41
technical services and security staff and 11 human resources and labour
consultants assigned to Project 1. JIC Mining Services (JIC) has
approximately 429 people assigned to both the north and south mine areas at
Project 1. Engineering, procurement, construction and management (EPCM)
contractor DRA Mining (Pty) Ltd. 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. Since December 2012 DRA Mineral Projects
(Pty) Ltd. (DRA) has been formally engaged as EPCM contractor for
commencement of Phase 2 surface infrastructure including mill and flotation
circuit construction. DRA is managing approximately 589 people working on site
at Project 1 assigned to earthworks, civil construction of surface
infrastructure, civil construction of the concentrator plant and perimeter
security fencing. Of the people working on site at Project 1 in South Africa at
present, approximately 20% are people from the local communities surrounding
Project 1.

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

General management and support services in South Africa have
grown in the year in response to growth at Project 1 and the Waterberg Projects.
New office premises were leased in the fourth fiscal quarter in Canada due to
the expiration of lease arrangements and new offices were leased in South Africa
due to growth. In addition to its existing general office space, the Company
utilizes facilities at the Company-owned Sundown Ranch property for Project 1
mine site administration, site induction and staff services and uses a secure
compound and core storage facility at the Company-owned Elandsfontein Farm,
adjacent to Project 1. The Company also rents a secure compound for core
storage, administration and field services near the Waterberg Projects.

New Personnel

The Company is following a plan and strategy with regard to the
hiring of new personnel as Project 1 advances. During the year ended August 31,
2013 the Companys South African operating subsidiary hired a senior Financial
Manager, a Safety Health and Environment Manager, a Social and Labor Plan
Coordination & Execution Manager, a senior Cost Engineer, a Cost Accountant
as well as several other technical and administrative staff members.

2.    PROPERTIES

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 evaluates the carrying value of its property
interests on a regular basis. Any properties management deems to be impaired are
written down to their estimated net recoverable amount or written off. For more
information on mineral properties, see below and Notes 4 and 5 of the Companys
Financial Statements.

South African Properties

The Company conducts its South African exploration and
development work through its wholly-owned direct subsidiary Platinum Group
Metals RSA (Pty.) Ltd. (PTM RSA). Development of Project 1 is conducted
through Maseve Investments 11 (Pty) Ltd. (Maseve), a company that will
be held 77.55% (1)by PTM RSA and 22.45% by Africa Wide Mineral
Prospecting and Exploration (Pty) Limited (Africa Wide), which is in
turn owned 100% by Johannesburg Stock Exchange listed Wesizwe Platinum Limited
(Wesizwe).

|(1) | Subsequent to August 31, 2013, Africa Wide failed to meet
      its US$21.8 million share of a cash call for Project 1. Based on the
      dilution formula contained in the Maseve Shareholders Agreement (the
      Maseve Shareholders Agreement) the Company has calculated that
      once it has paid its 74% share of the approved cash call into Maseve,
      Africa Wide will be diluted by 4.98% to a holding in Maseve of 21.02%.
      Africa Wide has instead calculated its dilution at 3.55%, reducing their
      shareholding, in their opinion, to 22.45%. At meetings of the shareholders
      and then of the board of directors of Maseve held on November 11, 2013
      resolutions were unanimously approved to issue shares in Maseve to PTM RSA
      in order to dilute Africa Wide by 3.55% with the possible further dilution
      of another 1.43% being referred to arbitration for determination according
      to the terms of the Maseve Shareholders Agreement.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Company is the operator of the Waterberg Projects,
consisting of the Waterberg JV Project and the Companys exploration on
prospecting rights on the Waterberg Extension Project. The Company conducts all
of its exploration activities at the Waterberg Projects through PTM RSA. As a
result of the resource scale and thickness of the Waterberg deposit, exploration
activities at the Waterberg Projects have increased in importance in the
Companys business over the past year.

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Projects 1 and 3  Operations in the Period

During the year ended August 31, 2013, the Company incurred
$69.5 million in development costs for Project 1 and did not incur any
significant costs on Project 3, located adjacent to and to the north of Project

1. In the prior year comparative period, total Project 1 and
Project 3 expenditures amounted to $16.4 million. At August 31, 2013, the
Company carries total deferred development costs related to Project 1 of $235
million and another $3.2 million related to Project 3. Africa Wides
non-controlling 26% interest in Maseve as at August 31, 2013 is recorded at
$51.4 million.

The Phase 1 development program was budgeted at R856.83 million
(approximately US$100 million at the time). Including the effect of both
increases and decreases in scope, Phase 1 was completed in March 2013 at a total
cost of R777.20 million; however a further amount of R81.3 million related to
deferred expenditures for electrical services is still expected to be incurred,
bringing the Phase 1 total cost essentially to budget. Phase 1 was completed
approximately 12 weeks behind original schedule as set at commencement. Schedule
delays occurred as a result of the time taken to obtain permits and sub-optimal
civil contractor performance early in Phase 1 related to electrical procurement,
construction of sumps and high wall steel work installation. These delays caused
difficulty in the scheduling of duties and handover between civil and
underground contractors. Initial underground mining cycle times and face advance
were less than planned as well, a situation which was later rectified. During
the period from February to March 2013 advance was halted or delayed for
approximately a month due to a Notice under Section 54 of the Mine Health and
Safety Act (1996) as described below.

The north decline box cut excavation brings the working area
down an access ramp from surface for 128 metres linear and 20 metres vertical to
where the north declines enter the underground. From the portal entrance or
collar the north declines are now approximately 1,374 metres linear (at
October 31) and approximately 215 metres vertical (at October 31) into the
underground. Approximately 1,033 (at October 31) metres of lateral development,
reef drives and ventilation headings have been completed. Multiple cross cuts
between declines of 10 metres in length and multiple re-muck bays have also been
installed as well as sumps and water management facilities. A ventilation raise
bore was commenced in August 2013 and completed in October 2013.

On March 28, 2013 the Merensky Reef was intercepted in the
north declines as had been projected in the mine geological model. An
underground drive along the strike of the deposit has now advanced on the
Merensky reef northward for approximately 146 metres (258 at October 31). Raise
developments into the mine blocks has commenced and continues. Shallow Merensky
Reef mine blocks are exhibiting rolling features where the critical zone of the
Bushveld Igneous Complex is in close proximity to the Transvaal Sediment floor
rocks. This condition, referred to as an abutment facies of the Merensky Reef,
is common to the shallow portions of the adjacent operating mine. Small scale
stock piling of Merensky Reef material on surface has begun. As development
opens areas of Merensky reef, an evaluation of the initial mining blocks will be
completed by Company geologists and engineers. The north declines are continuing
from the shaft bottom infrastructure targeting deeper mine blocks. At several
locations near the bottom of the north declines localised rock conditions have
required the installation of additional support.

Crews working on the north declines regularly achieve rates of
face advance at the planned 100 metres per month as described in the technical
report entitled Updated Technical Report (Updated Feasibility Study Western
Bushveld Joint Venture Project 1 (Elandsfontein and Frischgewaagd) dated
November 20, 2009 with an effective date of October 8, 2009 prepared by Gordon
I. Cunningham, Charles J. Muller, Timothy V. Spindler and Byron Stewart (the
2009 UFS). The rate of underground development in the north and south
declines continues to be an important factor with respect to future mine
production rates. Delays in underground development, stopping rates and planned
tonnages may result in delayed start-up of production and may have a negative
impact on peak funding and working capital requirements.

During the year ending August 31, 2012, geo-technical drilling
and survey work was completed at the planned site of the twin southern declines.
A tender process was completed and the Company awarded a contract for earthworks
and civil construction at the south decline site. This work commenced after a
mining right for Project 1 was granted in April 2012 (the Mining
Right). As of the date of this MD&A, the south box cut is complete and underground mining has now
advanced the twin declines for approximately 88 metres (148 metres at October
31). The south decline Phase 2 development is behind the original planned
schedule. The development of the south declines has progressed slower than
anticipated due to poor ground conditions in the first 50 metres vertical from
surface. Work to deal with these conditions included grouting, void filling and
the installation of steel sets. The south declines are in a position to advance
into more competent rock. Development rates are improving as vertical depth
increases.

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

On June 14, 2013 the Company announced that as a result of the
slower development rates in the south mine and a one month project delay as a
result of Section 54 safety work stoppages, the targeted start date for first
concentrate production had been adjusted by six months to mid-2015.

As of the date of this MD&A, approximately $190 million has
been invested in Phase 1 and Phase 2 construction and estimated initial
production and concentrate sales in mid-2015 are expected to be further delayed.
The amount of time for the further delay of first concentrate sales depends on
the delay in final financing arrangements for the Project 1 and other factors.
The ramp-up profile for production from commencement forward over the following
two years is similar to previous projections. Delays in ramp-up profile could
occur if underground development rates fall behind plan, potentially resulting
in delayed revenue from concentrate sales, which would negatively impact peak
funding requirements.

Since late 2012 the Company and DRA have been working on design
work and preparations for the Phase 2 construction of milling, concentrating and
tailings facilities. Tenders for the Primary Mill components, mining development
and equipment and other project expenditures have been adjudicated and orders
have now been placed resulting in a commitment of R1.167 billion ($120 million
at August 31, 2013) over the next two years. The primary run of mine ball mill
has been ordered from Outotec RSA (Pty) Ltd. and cleaner flotation cells have
been ordered from Metso Mining and Construction (South Africa) Pty Ltd. Phase 2
construction at Project 1 commenced in early January 2013 and earth works and
laydown areas for mill and concentrator facilities are now mostly complete.
Foundations for major mill and concentrator components are above ground as well.
Civil engineering and construction work is well advanced and on schedule.
Expected deliveries for all major components remain on schedule. Ancillary
servicing for the north decline site, including buildings, piping, cabling,
fencing and security, has been completed.

Electrical generating capacity has been overwhelmed by demand
in recent years in South Africa, but additional capacity is currently under
construction. See Risk Factors.

South African power utility company ESKOM (ESKOM) gave
notice to Maseve in March 2013 that it will be unable to install a planned
132KVA power infrastructure for delivery of a full 40 megavolt ampere
(MVA) service to Project 1 as originally scheduled. Notwithstanding
this the Company expects that power requirements for Project 1 will be met as
and when required. Power lines and a sub-station at commercial scale have been
installed on site. A construction supply of 1.5 MVA was installed to the
property in 2012. ESKOM has completed installation of transformers for an
initial 10MVA service to site and commissioning of that service occurred in
October 2013. The mining and milling operations of Project 1 do not require more
than 20 MVA for several years and the full 40MVA service is not required until
2017 and beyond in the current mine plan. ESKOMs engineers and the Company have
approved a plan to use an existing 88KVA regional infrastructure to provide the
mine site with power as needed during ramp-up and documentation for this change
is in progress.

The Company has paid deposits to ESKOM of R51.71 million
(approximately $5.32 million at August 31, 2013) of R142.22 million in estimated
costs (approximately $14.63 million at August 31, 2013) for ESKOMs work in
designing and constructing infrastructure for the delivery of electrical power
to the property.

In February 2013 the National Energy Regulator of South Africa
approved an 8% annual rate increase in the electricity tariff for the next five
years. This escalation is within the general sensitivities for total costs as
considered in the 2009 UFS. Increased power costs will affect all producers of
platinum in South Africa.

8

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

At full capacity the Project 1 mine is estimated to require a
maximum water supply of 6 megalitres/day (ML/day). In 2011, Maseve
entered into an agreement with regional water supplier Magalies Water
(Magalies) for a temporary 0.5 ML/day water supply. The construction of
a water pipeline to site was completed in 2012 and the temporary water supply is
now in service. On site water management infrastructure was built at a scale
suitable for full scale production for Project 1. An agreement between Maseve
and Magalies for a permanent water supply of 6 ML/day was executed in late
November 2012 and full scale service is expected to begin when required.
Magalies, Wesizwe and Maseve are currently cooperating to design, purchase and
install a pipeline connected to Magalies local supply for delivery of full scale
service as planned to both Project 1 and Wesizwes nearby operations. Magalies
currently has existing capacity to supply Project 1, but will need to complete
new regional infrastructure to meet expected mine and municipal demand in the
future.

On September 5, 2012, Maseve received notice from Rustenburg
Platinum Mines Ltd. (RPM) regarding RPMs exercise of its 60-day right
of first refusal to enter into an agreement with Maseve on terms equivalent to
indicative terms agreed to by Maseve with another commercial off-taker for the
sale of concentrate produced from Project 1 and Project 3. Formal legal off-take
agreements were executed in April 2013 based on the third party indicative
terms. The terms of the executed off-take agreement with RPM are not materially
different than those modeled in the 2009 UFS.

Working with a third party specialist, the Company has acquired
and maintains insurance coverage in South Africa for Project 1 including
policies for course of construction, wrap around liability and a South African
special risks policy.

Project 1 - Safety

The Company considers safety at Project 1 to be its first
priority. A formalized safety training, testing and monitoring regime
administered by a third party specialized consulting firm has been underway for
Project 1 since commencement of Phase 2 and continues at present.

On February 13, 2013 Moshiko Molepo, an employee of a surface
earth works contractor, was involved in an incident on surface at the Project 1
mine site and subsequently died while receiving medical care. A formal inquiry
with respect to the fatality was commenced on August 20, 2013 for three days and
was then adjourned. The inquiry was scheduled to reconvene in late 2013 but was
postponed to March 2014. The Company does not anticipate any material claims
being brought against it arising from this incident.

As a result of the tragic incident, on February 14, 2013 a
notice under Section 54 of the Mine Health and Safety Act (1996) (the Notice)
required the Company to stop all operations on site pending compliance with
various instructions in the Notice and until upliftment of the Notice by the
principal inspector of mines. The Notice was uplifted on March 5, 2013 and the
Company resumed mine building operations and underground development.

Project 1 - Financial Overview

The Company completed a definitive feasibility study in July
2008 and the 2009 UFS in October 2009 for Project 1, which was at that time a
portion of the Western Bushveld Joint venture (WBJV) in South Africa.
Included in each study is a declaration of four element or 4E reserve ounces
of combined platinum, palladium, rhodium and gold at the time of publication.

The base case for the 2009 UFS was modeled using 3 year
trailing metal prices at September 2009, including US$1,343 per ounce platinum,
an exchange rate of R8 to the U.S. Dollar. Since April 2013 there has been
significant volatility in the market prices for base metals and for gold and
other precious metals such as platinum and palladium. In recent months the Rand
has weakened to approximately 10 to each 1 US$. Weakening metal prices or a
stronger Rand will each have a negative effect on peak funding estimates for
Project 1. The escalation of costs, metal price volatility, production ramp up
timing and Rand volatility are all material risk factors for Project 1.

9

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

The Company completed an equity financing in October 2010 and a
portion of the proceeds was used to initiate a US$100 million Phase 1
development and bulk sample program at Project 1, which also included surface
and earth works.

In April 2012, the Company completed a revised cost budget
estimate based on post-2009 UFS work for inclusion in a financial model for the
Lenders. The Company referred to industry sources and Qualified Persons for
updated cost information and also applied experience gained during procurement
and construction under the Phase 1 development program currently underway. The
revised peak funding estimate, which is calculated in Rand, was published in
April 2012 and includes both Phase 1 and Phase 2 in their entirety. The revised
estimate was approximately US$506 million (at R8 to the US$) for the
construction and commissioning of Project 1, representing an escalation of
approximately 14% since the 2009 UFS. Operating costs per tonne were estimated
to have escalated approximately 24% since the 2009 UFS. These operating cost
escalation estimates are in keeping with inflation rates and industry experience
in South Africa since 2009.

On June 14, 2013 the Company announced that as a result of
slower than planned development rates in the south mine, and a one month project
delay as a result of Section 54 safety work stoppages, the targeted start date
for first concentrate production had been adjusted by six months to mid-2015. As
of the date of this MD&A, approximately $190 million has been invested in
Phase 1 and Phase 2 construction and estimated initial production and
concentrate sales in mid-2015 are expected to be further delayed. The amount of
time for the further delay of first concentrate sales depends on the delay in
final financing arrangements for the Project 1 and other factors. The ramp-up
profile for production from commencement forward over the following two years is
similar to previous projections.

The Company is seeing escalation in Rand terms at Project 1 in
areas such as labour, diesel fuel, power and certain supplies. These escalations
have been consistent with those seen in the South African mining industry in
general over recent years. Major service contracts and equipment purchase
contracts are collectively in keeping with previous cost estimates plus industry
escalation. The Companys original cost estimates were modelled at 8 Rand to the
US Dollar. With the Rand currently at or near 10 Rand to the US dollar these
cost escalations are substantially offset in dollar terms, however, diesel
petroleum products are marked to US$ prices and a weakening Rand has the effect
of raising Rand based fuel costs.

When based on longer term metal price assumptions the net
effect of escalation and project delays was estimated by the Company in June,
2013 at less than a 10% increase from previous cost estimates in US dollars,
however weakening metal price assumptions or a stronger Rand will each have a
negative effect on peak funding estimates for Project 1. Delays in underground
development or delays in delivery of ore tonnage to surface stockpiles will also
have a negative effect on peak funding requirements. The escalation of costs,
metal price volatility, production ramp up timing and Rand volatility are all
material risk factors for Project 1. At the time of writing, as a result of the
decision of Africa Wide on October 18, 2013 not to fund an approved cash call by
Maseve and the consequent delays in finalization of the Project 1 finance
package including project lending, a procurement freeze has been implemented on
Project 1. This delay in implementing construction contracts combined with
potential delays in ramping-up mining ore may result in a decision to further
delay the completion of mill construction and the first concentrate sales.

Apart from delays and updated financial estimates, the general
mine plan for Project 1 is substantially unchanged from the 2009 UFS with a
steady state production rate of 275,000 4E platinum, palladium, rhodium and gold
derived from decline accessed Merensky and UG-2 ore.

Project 1- Senior Loan Facility

On August 1, 2011, the Company entered into an agreement
mandating a syndicate of banks (the Lenders) to arrange for a US$260
million project finance loan to Maseve for the development of Phase 2 of Project
1 (the Original Proposed Loan Facility).By late 2012 the Original
Proposed Loan Facility had advanced through detailed technical, financial and
legal due diligence. Credit committee approval by the Lenders was announced on
December 6, 2012. Closing and draw down of the Original Proposed Loan Facility
was still subject to the negotiation and execution of definitive documentation
and certain conditions precedent, including, among other things, the Company matching
certain financial ratios including debt to equity for the full cost to complete,
as determined by the banks at the time of draw down, the acquisition and
maintenance of all requisite permits and licences and the establishment of an
agreed metals hedging program. The Company was also to be responsible for its
74% share of a cost overrun facility, estimated to be between US$50 million and
US$100 million on a 100% basis, and working capital as needed to satisfy the
Lenders requirements. The Company would have been required to fund its 74%
share of Project 1 funding over and above that which would have been provided by
the Original Proposed Loan Facility.

10

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

The issuance of additional equity capital, if available, to
fund project capital requirements and a cost overrun facility may result in
substantial dilution to existing shareholders and would require the approval of
the New Lenders (as defined below).

On October 18, 2013 the 26% partner in the Project 1 platinum
mine, Africa Wide, a subsidiary of Wesizwe, informed the Company that they would
not be funding their approximate US$21.8 million share of a budget and cash call
unanimously approved by the board of directors of the Project 1 operating
company Maseve. Africa Wide was also to be a guarantor and obligor to the above
mentioned Original Proposed Loan Facility. Subsequent to their announcement on
October 18, 2013 the Company began working with potential lenders to
re-structure the Original Proposed Loan Facility wherein the Company will be the
primary guarantor and obligor.

On November 8, 2013 the Company entered into a new mandate
letter with Barclays Bank PLC, Absa Corporate and Investment Bank, a division of
Absa Bank Limited, Caterpillar Financial SARL and Societe Generale (the New
Lenders) for a US$195 million project loan facility (the New Project
Loan Facility). The new mandate letter is subject to the finalization of a
facility agreement and, among other conditions, the New Lenders financial and
continued technical due diligence of the Company and the receipt of necessary
regulatory approvals for the sale of Africa Wides diluted interest in Maseve to
a qualified BEE entity. The loan facility agreement will require a cost overrun
facility and metal and currency hedging, as well as normal conditions
precedent.

There is no certainty that the Company will be able to
successfully complete the New Project Loan Facility. Failure by the Company to
complete the New Project Loan Facility or alternative financing for Project 1,
or to provide its share of required funding may result in the delay or
indefinite postponement of exploration, development, or production on any or all
of the Companys properties, or even a loss of property interests.

As a part of the New Project Loan Facility the Company will be
required to guarantee the obligations of Maseve by a pledge to the New Lenders
of its interests in the capital of Maseve and its interests in the Waterberg
Projects. See Risk Factors.

As a result of the failure to fund their share of the above
mentioned cash call, and determined in accordance with the dilution provisions
of the Maseve Shareholders Agreement, the Company estimates that Africa Wide
will dilute from 26% to approximately a 21.02% (1)interest in Maseve
and therefore Project

1. As Africa Wide is the Companys BEE partner for Project 1,
and legislation and regulations in South Africa require a 26% equity stake in
mining rights to remain in good standing, the Company immediately advised the
Department of Mineral Resources of the Government of South Africa (DMR)
of Africa Wides decision and the dilution implications as a result thereof. The
DMR has provided the Company with a letter stating that it will apply the
provisions of the Minerals and Petroleum Development Act 28 of 2002
("MPRDA") related to any administrative processes or decisions to be
conducted or taken within a reasonable time and in accordance with the
principles of lawfulness, reasonableness and procedural fairness in giving the
Company the opportunity to remedy the effect of Africa Wides dilution. The
Company is currently working on a plan to sell the diluted percentage interest
in Maseve previously held by Africa Wide into another bona fide BEE company when
shares in Maseve are issued to PTM RSA to account for the dilution of Africa
Wide.

|(1) | Based on the dilution formula contained in the Maseve
      Shareholders Agreement the Company has calculated that once it has paid
      its 74% share of the approved cash call into Maseve, Africa Wide will be
      diluted by 4.98% to a holding in Maseve of 21.02%. Africa Wide has instead
      calculated its dilution at 3.55%, taking them down to a holding of 22.45% in
their opinion. At meetings of the shareholders and then of the board of
directors of Maseve held on November 11, 2013 resolutions were unanimously
approved to issue shares in Maseve to PTM RSA to dilute Africa Wide by 3.55%
with the possible further dilution of another 1.43% sent to arbitration for
determination according to the terms of the Maseve Shareholders Agreement. See
previous comments above.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Labour in South Africa

There has recently been significant labour unrest and demands
for higher wages by certain labour groups across the gold and platinum mining
industries in South Africa. Both legal and illegal or unprotected strikes have
occurred at several mines since the beginning of August 2012. In limited cases,
wage increases have been agreed to by the management of some mining companies.
To date, the Company has seen no adverse labour action on its site at the
Project 1 mine.

The Company has worked closely with local communities and human
resource specialists Requisite Business Solutions (Pty) Ltd. for several years
in order to create a database of local persons interested in work at the Project
1 mine, including their skill and experience details. The Company has set a
minimum target of 30% local employment for the mine, including persons under the
employ of contractors. At present approximately 20% of the onsite workforce is
comprised of local persons from the surrounding communities.

The primary union at Project 1 representing the workers of
underground mining contractor JIC is the National Union of Mineworkers
(NUM). The Company maintains an active dialogue with JIC, NUM and its
own employees. Should higher salaries and wages occur across the industry, the
Company will likely be required to comply with higher pay bands, and an increase
in labour costs, and therefore higher operating costs could occur. See Risk
Factors.

Project 1 and 3 - Mineral Resources and Reserves

The Company provided a statement of mineral reserves for
Project 1 in the 2009 UFS and an updated statement of mineral resources for
Project 1 in a NI 43-101 technical report dated November 20, 2009 entitled An
Independent Technical Report on Project Areas 1 and 1A of the Western Bushveld
Joint Venture (WBJV) Located on the Western Limb of the Bushveld Igneous
Complex, South Africa (the Project 1 Report). An updated NI 43-101
technical report dated August 31, 2010 entitled 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 (the Project
3 Report) was later filed with respect to Project 3. Project 1 hosts an
estimated 2.801 million measured four element or 4E ounces of platinum,
palladium, rhodium and gold (14.067 million tonnes @ 6.19 grams/tonne
(g/t), 5.361 million indicated 4E ounces (30.392 million tonnes @ 5.49
g/t) and 0.047 million inferred 4E ounces (0.176 million tonnes @ 8.33 g/t).
Project 3 hosts an estimated 1.939 million indicated 4E ounces (11.104 million
tonnes @ 5.43 g/t) and 0.076 million inferred 4E ounces (0.443 million tonnes @
1.47 g/t). Of the mineral resources stated above for Project 1, there are 1.756
million 4E ounces (11.764 million tonnes @ 4.64) categorized as proven mineral
reserves and 2.91 million 4E ounces (19.782 million tonnes @ 4.57 g/t)
categorized as probable mineral reserves. Mineral reserves and mineral resources
reported above are from combined Merensky and UG2 reef tonnes. The Company will
hold a 77.55% interest in the 4E ounces attributable to Project 1 and Project 3
pending the planned sale of Africa Wides diluted interest in Maseve into
another bona fide BEE Company as described above. Additional information
regarding grades, prill splits, sampling and reserve and resource calculations
can be found in the technical reports described above as filed on SEDAR at
www.sedar.comand on EDGAR at www.sec.gov.

Mineral reserves are a sub-set of measured and indicated
mineral resources included in the UFS and take into account mining factors and
are not in addition to the mineral resources.

Cautionary Note to U.S. Investors with respect to the
information above:The Company uses the terms measured resources,
indicated resources, and inferred resources, which are recognized and
required by Canadian regulations but not recognized by the SEC. Resources are
not reserves and so do not have demonstrated economic viability.
Inferred resources have a great amount of uncertainty as to their existence, and
great uncertainty as to their economic and legal feasibility. Furthermore, under
Canadian rules, estimates of inferred resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that measured and indicated mineral resources will ever
be converted into reserves or that part or all of an inferred resource exists or
is economically or legally minable. In the following tables, the Company also
presents proven and probable reserves calculated under NI 43-101, which differs
from the standards of SEC Industry Guide 7. In addition, while disclosure of
contained ounces in a resource is permitted disclosure under Canadian securities
laws, 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, the disclosure below may differ
materially from the reserve estimates and other disclosures that would be
provided by a U.S. public company.

12

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Project 1 - History of Acquisition

On October 26, 2004, the Company entered into a joint venture
agreement forming the WBJV among the Company (37% interest held through PTM
RSA), Anglo American Platinum Limited (Anglo) (37% interest held
through its subsidiary RPM), and Africa Wide (26% interest held directly) in
relation to a platinum exploration and development project on combined mineral
rights covering approximately 67km2on the Western Bushveld Complex
of South Africa. The WBJV property was divided into three distinct project
areas, namely Projects 1, 2 and 3. In April 2007, Anglo contributed an
additional 5km2area of prospecting rights into the WBJV. Africa Wide
was subsequently acquired by Wesizwe, a Johannesburg Stock Exchange-listed
company, in September 2007.

On December 8, 2008, the Company entered into certain
agreements to consolidate and rationalize the ownership of the WBJV (the
Consolidation Transaction). On April 22, 2010, the Consolidation
Transaction was completed and the WBJV was dissolved. As a result Wesizwe
retained 100% of Project 2 and Maseve obtained 100% of Projects 1 and 3. The
combined area covered by the mineral rights for Projects 1 and 3 held through
Maseve comprises approximately 47km2ofthe original
72km2.

The Company also received a 37% interest in Maseve in exchange
for its share of Projects 1 and 3. Wesizwe received a 45.25% initial interest in
Maseve in exchange for the mineral rights it transferred to Maseve. In exchange
for rescinding its 18.5% of Project 2 to Wesizwe, the Company received an
additional 17.75% interest in Maseve, bringing its holdings in Maseve to 54.75%
..

Through the Consolidation Transaction the Company acquired the
Maseve Subscription Right entitling it to subscribe for a further 19.25%
interest in Maseve, from treasury, in exchange for a subscription amount of
R408.81 million. On January 14, 2011, the Company exercised the Maseve
Subscription Right in the amount of R408.81 million (approximately $59 million
at the time), thereby increasing its effective shareholding in Maseve to 74%.
The subscription funds were placed in escrow for application towards Africa
Wides 26% share of expenditures for Projects 1 and 3 (the Escrowed Maseve
Funds). As of August 31, 2013 approximately R98.69 million ($10.2 million)
of the Escrowed Maseve Funds, including earned interest, remained in escrow. The
Escrowed Maseve Funds were fully utilized against Africa Wides share of Project
1 expenditures by early November 2013.

Under the terms of the Consolidation Transaction agreements,
RPM held a 60-day right of first refusal on the sale of ore or concentrate
produced from Project 1, Project 2 and Project 3. On September 5, 2012, Maseve
received notice from RPM that they would exercise RPMs right of first refusal
to enter into an agreement with Maseve on terms equivalent to terms agreed to by
Maseve with another commercial off-taker for the planned sale of concentrate
produced from Project 1. A formal off-take agreement between RPM and Maseve was
executed in April 2013.

As a result of their decision on October 18, 2013 to not fund
their approximate US$21.8 million share of an approved cash call as described
above, and determined in accordance with the dilution provisions of the Maseve
Shareholders Agreement, the Company estimates that Africa Wide will dilute from
26% to approximately a 21.02% interest in Maseve and therefore Project 1 and as
a result the Company will see an increase in its share of Maseve to approximately a 78.98% .
See further details at Project 1- Senior Loan Facility above. As discussed
above the Company plans to sell diluted percentage interests in Maseve to a
qualified BEE company to comply with the empowerment aspects of the MPRDA.

13

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Waterberg JV Project, South Africa

PTM RSA applied for a prospecting right for the Waterberg JV
Project area in 2009 and in September 2009 the DMR granted PTM RSA a prospecting
right for the requested area. Later in October 2009, PTM RSA entered into an
agreement (the JOGMEC Agreement) with JOGMEC and Mnombo whereby JOGMEC
could earn up to a 37% participating interest in the Waterberg JV Project for an
optional work commitment of US$3.2 million over four years, while at the same
time Mnombo could earn a 26% participating interest in exchange for matching
JOGMECs expenditures on a 26/74 basis (US$1.12 million). See further details at
History of Acquisition below.

Activities in the period ended August 31, 2013

Drilling on the Waterberg JV Project area has resulted in the
inferred mineral resources discussed below. Drilling was underway at May 31,
2013 with fifteen machines operating on a roughly 250 metre grid, with several
machines on 500 metre or greater step outs. Subsequent to May 31, 2013 the
number of rigs was reduced as the planned drilling on the joint venture area
neared completion. At August 31, 2013 there was one rig working on the joint
venture property and by mid-September, 2013 drilling was stopped and engineering
work had commenced.

In April 2012, JOGMEC completed their US$3.2 million earn in
requirement to earn a 37% interest in the Waterberg JV Project. Following
JOGMECs earn-in the Company funded Mnombos 26% share of costs for US$1.12
million and the earn-in phase of the joint venture ended in May, 2012. An
approved post earn-in 2012 budget for the joint venture was initially set by the
joint venture partners at US$8.37 million. In February 2013 the joint venture
partners increased the post earn-in budget to US$13.0 million. A further 2013
budget in the amount of US$7.0 million was later approved. To August 31, 2013
approximately US$18.6 million has been spent on the joint venture. The Company
has funded the Companys and Mnombos combined 63% share of this work for a cost
of US$11.7 million with the remaining US$6.88 million funded by JOGMEC. At
August 31, 2013 an amount of US$0.5 was due and receivable from JOGMEC. The
Company has approved its own budget for calendar 2013 to fund its 63% share
(including Mnombos 26% share) of 2013 work expenditures for the joint venture.

Waterberg JV Project - Mineral Resources

On September 5, 2012 the Company announced an initial mineral
resource for the Waterberg JV Project property. The details are contained in the
technical report entitled Updated Exploration Results and Mineral Resource
Estimate for the Waterberg Platinum Project, South Africa located on the
Northern Limb of the Bushveld Complex, with an effective date of November 5,
2012 (the Waterberg Report), prepared by Kenneth Lomberg, B.Sc. (Hons)
Geology, B. Com., M. Eng. Pr.Sci.Nat., MGSSA, of Coffey Mining (SA) Pty Ltd.
(Coffey). In the report the independent Qualified Person recommends a
forward 2013 budget in the amount of $10.0 million, which the Company is
undertaking with the joint venture partners as described above.

On February 1, 2013 the Company announced an updated inferred
mineral resource estimate on the Waterberg JV Project property. On March 18,
2013 the Company filed the associated National Instrument 43-101 technical
report. The report, entitled Revised and Updated Mineral Resource Estimate for
the Waterberg Platinum Project, South Africa (Latitude 23° 22′ 01S, Longitude
28° 49′ 42E) is dated effective February 1, 2013 and was prepared by Kenneth
Lomberg, B.Sc. (Hons) Geology, B. Com., M. Eng. Pr.Sci.Nat., MGSSA, of Coffey,
supporting the disclosure of the updated inferred mineral resource estimate.

On September 3, 2013 the Company announced a further updated
inferred mineral resource estimate on the Waterberg JV Project property. This
latest estimate is based on exploration and drilling results to the end of July,
2013. The updated inferred mineral resource estimates 167 million tonnes grading
3.26 grams per tonne of platinum, palladium and gold (2PGE+Au) for a total of
17.523 million ounces. Significant copper and nickel credits are also present.
On October 17, 2013 the Company filed the associated National Instrument 43-101
technical report. The report, entitled Revised and Updated Mineral Resource
Estimate for the Waterberg Platinum Project, South Africa (Latitude 23° 22′
01S, Longitude 28° 49′ 42E) is dated effective September 2, 2013 and was
prepared by Kenneth Lomberg, B.Sc. (Hons) Geology, B. Com., M. Eng. Pr.Sci.Nat.,
MGSSA, of Coffey Mining (SA) Pty Ltd. The report supports the disclosure of the
updated inferred mineral resource estimate. (See the resource details and metal
splits in the table below).

14

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

The shallowest edge of the known deposit on the Waterberg JV
Project property is on the T2 layer at approximately 130 metres below surface.
All resources estimates for the Waterberg JV Project property have been
restricted to 1,000 meters vertical as a preliminary economic cut-off. All
layers remain open to depth beyond the resource model. The deposit is 5.5
kilometers long on the Waterberg JV Project property and is limited to the north
by the property boundary. The deposit remains open along strike to the north
beyond the Waterberg JV Project boundary extending on to prospecting rights
where Platinum Group holds an 87% effective interest with the balance held by a
private BEE partner. See Waterberg Extension Project Licenses below.

Mechanized mining methods, milling and infrastructure
requirements for the Waterberg JV Project platinum deposit are all being studied
as part of a Preliminary Economic Assessment (PEA) being conducted by South
African engineering firm Worley Parsons TWP. As announced in May 2013, estimated
recoveries for platinum, palladium and gold (2PGE+Au) in scoping flotation tests
completed at SGS Labs in South Africa averaged 88% for the T2 layer and 83% for
the F layer. The resource announced September 3, 2013 and the baseline
metallurgical work will form the basis of the PEA due to be completed at the end
of 2013.

Resource Details

The latest resource was calculated using 111 bore holes with a
total of 301 pierce points including deflections. The drill intersection data
was supplied to Coffey, independent consultants. The resource model was created
by Coffey and a number of iterations were done to confirm the validity. Grade
estimation was completed using IDW2 methodology and studied at various cut-off
grades. The previous split of the FH and FP layers were merged into one F zone.
The average thickness was calculated for the T zones that have distinct rock
layer characteristics. The F zone is located consistently near the floor of the
Bushveld Complex and is associated with an olivine rich rock layer and the
average thickness of 3.0 metres to 30 metres was defined by a grade cut-off. An
area of F layer related to an interpreted depression in the floor rocks where
thickness of the mineralization is greater than 12 meters has been given the
name Super F. This zone will be considered separately for larger scale
underground mining methods in the ongoing PEA.

Inferred 2PGE+Au Resource Estimate, August 29, 2013

The three main mineralized layers for which an inferred mineral
resource estimate is declared are presented below (as at September 2, 2013):

ThicknessM
    TonnesMt
    Pt(g/t)
    Pd(g/t)
    Au(g/t)
    2PGE+Au(g/t)
    Pt:Pd:Au
    2PGE+Au(koz)
    Cu(%)
    Ni(%)
    Cu (t)
    Ni (t)T1
    2.30
    8.50
    1.04
    1.55
    0.47
    3.06
    34:51:15
    842
    0.17
    0.10
    14,500
    8,400T2
    3.77
    39.16
    1.16
    2.04
    0.84
    4.04
    29:50:21
    5,107
    0.18
    0.10
    69,400
    37,600T Total
    3.38
    47.66
    1.14
    1.95
    0.77
    3.86
    30:50:20
    5,948
    0.18
    0.10
    83,900
    46,000F Total
    3.0 to 30.0
    119.05
    0.91
    1.98
    0.13
    3.02
    30:65:5
    11,575
    0.07
    0.17
    78,800
    202,200Total
    
    166.71
    0.98
    1.97
    0.32
    3.26
    30:60:10
    17,523
    0.10
    0.15
    162,700
    248,200


Note: The T1 and F layers are reported with a
      2g/t 2PGE+Au cut-offThe T2
      layer is reported based on the selection of a mining cut of a minimum of
      2m consistently across all deflections


15

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Notes:

|(1) | The Qualified Person for the information in the table
      above, derived from the Waterberg Report, is Kenneth Lomberg, who was
      independent of the Company as of the date of the Waterberg
  Report.                                                                                                                                                                                                                                                                               
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(2) | Mineral resources which are not mineral reserves do not
      have demonstrated economic viability. The estimate of mineral resources
      may be materially affected be environmental, permitting, legal, marketing
      or other relevant issues. The quantity and grade of reported inferred
      mineral resources in this estimate are conceptual in nature. There is no
      guarantee that all or any part of the mineral resource will be converted
      to a mineral reserve.

Cautionary Note to U.S. Investors with respect to the
information in the tables above and discussion:In the preceding tables, the
Company presents inferred resources, which are recognized and required by
Canadian regulations but not recognized by the SEC. Resources are not
reserves and so do not have demonstrated economic viability. Inferred
resources have a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. Furthermore, under
Canadian rules, estimates of inferred resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that part or all of an inferred resource exists or is
economically or legally minable. In addition, while disclosure of contained
ounces in a resource is permitted disclosure under Canadian securities laws, the
SEC normally only permits issuers to report mineralization that does not
constitute reserves by SEC standards as in place tonnage and grade without
references to unit measurements. Accordingly, the disclosure below may differ
materially from the disclosure that would be provided by a U.S. public company.

In order to be considered as a mineral resource estimate, it is
necessary to consider the reasonable prospects for economic extraction of the
mineral resource under consideration. For the Waterberg JV Project property, a
high level economic analysis was conducted which confirmed that the estimated
mineral resource at the Waterberg JV Project met this requirement.

History of Acquisition

Under the terms of the JOGMEC Agreement any mineral products
derived by the joint venture from the property are to be taken by each
participant in proportion to its then participating interest in the joint
venture. Provided JOGMEC or its nominee holds at least a 30% interest in the
Waterberg JV Project, JOGMEC or its nominee has the exclusive right to direct
the marketing of the mineral products of the other participants for a 10-year
period from first commercial production on an equivalent to commercially
competitive arms length basis and has the first right of refusal to purchase at
prevailing market prices any mineral products taken by another participant as
its share of joint venture output.

On November 7, 2011, the Company entered into an agreement
whereby the Company acquired 49.9% of the issued and outstanding shares of
Mnombo from its shareholders in exchange for cash payments totaling R1.2 million
and agreeing to pay for Mnombos 26% share of project costs to feasibility
(bringing the Companys share of project costs to 63%). When combined with the
Companys 37% direct interest in the Waterberg JV Project (taking into
consideration the JOGMEC earn-in), the 12.974% indirect interest held by the
Company through Mnombo brings the Companys effective interest in the Waterberg
JV Project to 49.974% . Mnombo remains over 50% held for the benefit of
historically disadvantaged persons or historically disadvantaged South Africans
(HDSAs), as defined respectively by the MPRDA and the Amendment of the
Broad-Based Socio-Economic Empowerment Charter for the South African Mining and
Minerals Industry, 2010 ("Mining Charter") and is a qualified BEE
corporation under theBroad-Based Black Economic Empowerment Act, 2003
(the BEE Act).

16

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

During 2012 the Company made application to the DMR to acquire
three additional prospecting rights adjacent to the west (one farm for
39km2), north (one farm for 63km2) and east (one farm for
16km2) of the existing Waterberg JV Project area. The farm to the
east was granted in January 2013. The farms to the west and north were granted
October of 2013. These three new prospecting rights cover a total area of
118km2, bringing the total combined area in the joint venture with
JOGMEC and Mnombo to 255km2.

Waterberg Extension Project Licenses

During early 2012 the Company applied to the DMR for further
prospecting rights adjacent to the north and east of the existing and applied
for joint venture area. This area of new prospecting rights known as the
Waterberg Extension Projectis not included in the pre-existing Waterberg
JV Project property. The Company holds a direct 74% interest and Mnombo holds a
26% interest in this new Waterberg Extension Projectarea, leaving the
Company with an 86.974% effective interest. During February and March of 2013
the Company received letters from the DMR advising the Company that prospecting
right applications comprising the Waterberg Extension Projecthad been
accepted. During October of 2013 prospecting permits covering 489km2of the applied for Waterberg Extension Projectarea had been
granted. At the time of writing this MD&A a further 471km2of
prospecting permit applications are in process with the DMR for addition to the
Waterberg Extension Project, none of which are directly on the trend of
the primary exploration target.

In late March and early April 2013 the Company conducted a
Fugro differential gravity and magnetic airborne survey in the Waterberg Region.
Approximately 2,500 line kms were flown at 100 metre and 200 metre spacing over
and along strike from the known deposit area. Interpretation of the airborne
gravity and magnetic surveys by the Company provide a clear target for drilling
northward over approximately a further 20 to 25 kilometers. Physical prospecting
activities on these new license areas commenced in October, 2013. Ground gravity
and magnetic lines have now been completed and these support the interpretation
of airborne data as described above. Multiple boreholes along strike are planned
to be drilled and at the time of writing several drill holes have intercepted
mineralization on the extension area. See the Companys news release dated
October 21, 2013.

Non-Material Mineral Property Interests

Other non-material mineral property interests of the Company
include the War Springs and Tweespalk projects located in South Africa, the
Sable Joint Venture (as defined below) and the Companys various mineral
property interests in Ontario, Canada and Northwest Territories, Canada. These
non-material property interests are not, individually or collectively, material
to the Company and are described below.

South Africa  Other Properties

Expenditures during the period ended August 31, 2013 on
projects in South Africa other than Project 1, Project 3 and the Waterberg
Projects totaled $0.25 million (August 31, 2012 - $0.49 million).

War Springs and Tweespalk Properties, South Africa

Since 2005, the Company has been actively exploring its War
Springs and Tweespalk projects, which are located on the Northern Limb of the
Bushveld Complex in South Africa. The War Springs property covers 22km2and is located 24km south of the Anglo open pit Mogalakwena Mine (formerly
the PPRust platinum mine) along the same Platreef section of the Bushveld
Complex. Exploration has consisted of diamond drilling, geophysical surveys and
ground prospecting. In March 2008, the Company reported an inferred resource on
a 100% basis of 1.676 million ounces 2PGE+Au at a grade of 1.11 g/t with a minor
credit for copper and nickel. See Cautionary Note to U.S. Investors.
Additional information regarding grade, prill splits, sampling and resource
calculations can be found in an NI 43-101 technical report dated June 18, 2009
entitled Revised Inferred Mineral Resource Declaration War Springs
(Oorlogsfontein 45K2), Northern Limb Platinum Property, Limpopo Province,
Republic of South Africa filed on SEDAR at www.sedar.comand on EDGAR at www.sec.gov.

17

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Subject to vendor payments due upon a decision to mine, the
Company holds a 70% interest in the War Springs project and Africa Wide and
Taung Platinum Exploration (Pty) Ltd. (Taung Platinum) each hold a 15%
interest carried to feasibility study. Taung Platinum is an affiliated company
of Moepi Platinum (Pty) Ltd., which is Platmin Ltd.s BEE partner in South
Africa.

In March 2009, the Company announced an option agreement with
JOGMEC, pursuant to which JOGMEC may earn 35% (one half of the Companys
interest) of Platinum Groups interest in the War Springs project by incurring
US$10 million in expenses over five years. Since March 2009 a total of 17,222
metres of drilling in 20 boreholes have been completed on the War Springs
project with JOGMEC funding. Total expenditures incurred by JOGMEC to August 31,
2011 on War Springs amounted to approximately $2.9 million. During the year
ended August 31, 2012, the drilling program was completed and JOGMEC indicated
that it does not plan to fund further work on this project. The Company is
considering further work or possible joint ventures for the project at this
time.

Sable Joint Venture, South Africa

During 2009, the Company acquired prospecting rights in South
Africa on the Western Limb of the Bushveld Complex, west of Pretoria and then
entered into a joint venture agreement (the Sable Joint Venture) with
Sable Platinum Mining (Pty) Limited (Sable Platinum). Sable Platinum is
earning a 51% interest in exchange for funding approximately R 42.0 million
(approximately $6 million in 2009) in work on the project, while a private BEE
group will hold 26%. The Company was the operator of the project until mid-March
2012, after which time operatorship was transitioned to Sable Platinum.

Canadian Properties

Mineral property acquisition and exploration costs deferred
during the period ended August 31, 2013 on projects in Canada totalled $0.20
million (August 31, 2012- $1.9 million).

Thunder Bay, Ontario

The Company maintains various mineral rights positions in the
Lac des Iles and Thunder Bay North areas of the Thunder Bay Mining District,
Ontario as a strategic holding against increasing prices for palladium and
platinum. At the beginning of fiscal year 2012, the Company held 100% interest
in a total of 360km2in this region; however during the year a number
of peripheral claims and low priority properties were dropped and their
associated deferred costs were written off. The core long term holding in the
Lac des Iles area consisting of the 8 claim Shelby Lake and South Legris
properties has been maintained. These 8 claims are subject to 2.0% net smelter
return (NSR) royalties, which the Company may buy back. During the year
the Disraeli, Cold Case, Taman, Right Angle, Diagonal and North Y claims were
abandoned. Land holdings by the Company within the Thunder Bay Mining District
at the time of this MD&A total 276km2.In the Sudbury Mining
District, the Company retains a majority interest in an additional 47km2of mineral rights at the Agnew Lake property after the dropping of several
claims during the period.

To date, five properties staked or acquired since 2011 have
been drill tested for younger intrusive targets and a new type of platinum
mineralization found in the district based on airborne geophysics survey
results, geological ground work, geochemistry and compilation of historic data.
A total of 4,274 metres have been drilled in 17 holes, of which 2,891 metres in
nine holes have been drilled on 100% owned properties. Diamond drilling
completed within the previous fiscal year ended August 31, 2012 totaled 1,350
metres in five holes, four of which were on the Triangle Property and one on the
Badger Property. Two of the holes on the Triangle Property were extensions of
previously drilled holes to allow for downhole geophysical surveys.

To date none of the drilling by the Company on the younger
intrusive targets has intersected the new type of platinum mineralization found
in the district. No mineral reserves or mineral resources have been established
on any of the properties. The Company is now considering its potential programs
for the remainder of 2013 in Thunder Bay in context of its other Canadian and
global exploration opportunities.

18

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Providence, Northwest Territories

In September 2011, the Company purchased the Providence
Copper-Nickel-Cobalt-Platinum Group Metals (Cu-Ni-Co-PGM) property from
Arctic Star Exploration Corp. (Arctic Star) for a payment of $50,000
and a 1.0% NSR royalty. During the period the core 11 (eleven) of the 13
original claims have been converted to Lease and annual rent payments of $28,021
(due June 30 annually) have been made. Total acquisition costs to date are
$106,092.

During the period ending August 31, 2013, $74,000 in
exploration costs were incurred on the Companys Northwest Territories
exploration program. Expenditures from the preceding fiscal year included
research and compilation, camp maintenance, fuel purchase and supply, a gravity
survey, geology, diamond drilling and assays. The Company has an active land use
permit to conduct exploration on the property and maintain a camp.

The 2 mineral claims and 11 mineral leases comprising the
Providence property measure approximately 134km2and are located
approximately 70km west of the Diavik Diamond Mine, NWT. The property covers
approximately 20km of a belt of mafic to ultramafic rocks that is host to the
first discovery of magmatic Cu-Ni-Co-PGM massive sulphide mineralization in the
Slave Craton. Drilling by the Company and historic drilling by Arctic Star has
shown that the Cu-Ni-Co-PGM mineralization is hosted within, and at the base of
the ultramafic flow/intrusive sill sequence. The dimensions of the massive
sulphide mineralization defined to date ranges in thickness from 0.3m to 5.0m
and have been intercepted in drilling over a 75m strike length and down for
300m. The mineralized horizon has been drill tested over a 450m strike length to
the east where disseminated sulphides with anomalous PGM values occur. The
mineralized horizons remain open to depth and the eastern hole shows there is
possibility of further horizon development along the belt.

Since acquisition, the Company has completed a total of 3150m
of diamond drilling in 14 holes. Exploration programs in the year to date
consisted of camp supply, and diamond drilling with assays. Work on the property
commenced in mid-March, 2012. A step out drill program to further define the
extents of known Cu-Ni-Co-PGM mineralized zone was completed by August 15,
2012.

Ni-Cu-Co-PGM grade values are consistent with near surface
(maximum 115 metre vertical depth) massive sulphide intercepts by previous
operators and the mineralization remains open at depth. Significant grades from
disseminated sulphide mineralization intercepts were identified in the 2012
drilling program. No mineral reserves or mineral resources have been established
on any of the properties. Currently the company is assessing exploration results
to date in order to make a decision on further exploration work.

Newfoundland and Labrador

During the period, on August 9, 2013 the Company entered into
an option agreement with Benton Resources Corp. on the 261km2Mealy
Lake Property, southwestern Labrador, in exchange for the Company making a
one-time cash payment of $51,000 on signing (paid) and $2.4 million over four
years in exploration expenditures to earn a 71% interest. To date compilation of
available public data has taken place to facilitate the planning of an
exploration program.

In addition to the Mealy Lake Project, the Company also staked
the 45km2Atikonak Property in southwestern Labrador for a total
acquisition cost of $10,800. The Atikonak Property was staked based on favorable
geology and positive results from the regional compilation of public data for
the area.

The Mealy and Atikonak Properties cover a Paleoproterezoic aged
layered mafic intrusive suite of rocks that have sulphide mineralization within
adjacent properties. These properties are central to a recently developed area
of Cu, Ni and PGM exploration.

19

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

3.             
DISCUSSION OF OPERATIONS AND FINANCIAL CONDITION

A)            
Results of Operations

Year Ended August 31, 2013

For the year ended August 31, 2013, the Company incurred a net
loss of $12.1 million (August 31, 2012  loss of $10.2 million.) General and
administrative expenses totaled $6.9 million (August 31, 2012 - $5.4 million)
with the increase correlating to an increase in the overall expenditures by the
Company. A foreign exchange loss of $8.2 million was recorded for the year
(August 31, 2012 - $3.6 million), with the greater loss being due to the weaker
Rand at year end when the Companys cash balances held in Rand were translated
into Canadian dollars. Other comprehensive loss for the year was $40.3 million
(August 31, 2012 - $43.3 million) with the loss being mainly due to the
translation of net assets carried in Rand in our South African subsidiaries to
their Canadian dollar value at year end. At August 31, 2012, the Rand was valued
at approximately 8.54 Rand to the Canadian Dollar versus 9.72 at August 31,
2013.

Interest earned in the year totaled $5.0 million as compared to
$3.9 million in the comparative year. The higher interest earned is due to
higher cash holdings during the year.

Fourth Quarter 2013

For the quarter ended August 31, 2013, the Company incurred a
loss after taxes of $ 1.4 million (August 31, 2012  loss of $ 3.6 million.)
General and administrative expenses totaled $2.8 million (August 31, 2012 -
$1.16 million). Comprehensive loss of $3.7 million (August 31, 2012 - $11.4
million) for the quarter was incurred.

Foreign exchange losses have caused volatility in the Companys
net loss as the Companys South African subsidiaries hold significant assets in
South African Rand, which must be translated to Canadian dollars for
presentation in the Companys financial statements.

Annual Financial Information

The following tables set forth selected financial data from the
Companys annual audited financial statements and should be read in conjunction
with those financial statements:

(In thousands of dollars, except for share data)

Year endedAug
      31, 2013
    Year endedAug
      31, 2012
    Year endedAug
      31, 2011Interest income
    $5,002(1)
    $3,943(1)
    $3,785(1)Net loss
    $12,369
    $10,588
    $8,892Basic loss per share
    $0.04 (2)
    $0.06(2)
    $0.05(2)Diluted loss per share
    $0.04 (2)
    $0.06(2)
    $0.05(2)Total assets
    $389,980(3)
    $243,734(3)
    $280,788(3)Long term debt
    Nil
    Nil
    NilDividends
    Nil
    Nil
    Nil


Explanatory Notes:

|(1) | The Companys only significant source of income during
      the years ending August 31, 2011 to 2013 was interest income from interest
      bearing accounts held by the Company. The amount of interest earned
      correlates directly to the interest rate at the time and the amount of
      cash on hand during the year referenced.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

|(2) | Basic loss per share is calculated using the weighted
      average number of common shares outstanding. The Company uses the treasury
      stock method for the calculation of diluted earnings per share. Diluted
      per share amounts reflect the potential dilution that could occur if
      securities or other contracts to issue common shares were exercised or
      converted to common shares. In periods when a loss is incurred, the effect
      of potential issuances of shares under options and share purchase warrants
      would be anti-dilutive, and accordingly basic and diluted loss per share
      are the same.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(3) | At August 31, 2012, the Companys assets decreased
      compared to the year ending August 31, 2011 as a result of the weaker
      Rand, as assets carried in Rand in our South African subsidiaries were
      converted to their Canadian dollar value at year end. The increase in
      total assets between 2012 and 2013 were primarily from increased cash
      balances from the equity offering that closed January 4,
  2013.                                                                                                                                                                                                       

Quarterly Financial Information

The following table sets forth selected quarterly financial
information for each of the last eight quarters:

(In thousands of dollars, except for share data)

|Quarter Ending    | Interest & Other Income(1) | Net (Loss) | Basic (Loss) Earnings
|----------------- | -------------------------- | ---------- | ---------------------
|                  |                            | Income(2)  | per Share            
|August 31, 2013   | $1,056                     | ($1,355)   | ($0.01)              
|May 31, 2013      | $1,376                     | ($10,015)  | ($0.03)              
|February 28, 2013 | $1,984                     | $279       | ($0.00)              
|November 30, 2012 | $586                       | ($1,715)   | ($0.01)              
|August 31, 2012   | $823                       | ($3,492)   | ($0.02)              
|May 31, 2012      | $959                       | ($2,040)   | ($0.01)              
|February 29, 2012 | $1,078                     | $645       | $0.00                
|November 30, 2011 | $1,083                     | ($5,313)   | ($0.03)              

Explanatory Notes:

|(1) | The Company earns interest income from interest bearing
      accounts and deposits. The balance of funds held in Rand can also affect
      the amount of interest earned, as Rand balances earn significantly higher
      rates of interest than can be earned at present in Canadian
  dollars.                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                          
|(2) | Net (loss) income by quarter is often materially affected
      by the timing and recognition of large non-cash items. It is also
      significantly impacted by the movement of the Rand against the Canadian
      dollar as the Company holds a significant portion of its cash in Rand,
      which must be translated to Canadian dollars at the end of the reporting
      period.

B)             
Dividends

The Company has never declared nor paid dividends on its common
shares. The Company has no present intention of paying dividends on its common
shares, as it anticipates that all available funds will be invested to finance
its business.

C)             
Trend Information

Other than the financial obligations as set out in the table
provided at item F) below, there are no demands or commitments that will result
in, or that are reasonably likely to result in, the Companys liquidity either
increasing or decreasing at present or in the foreseeable future. The Company
will require additional capital in the near future to meet both its contractual
and non-contractual project related expenditures. It is unlikely that the
Company will generate sufficient operating cash flow to meet all of these
expenditures in the foreseeable future. Accordingly, the Company will need to
raise additional capital through debt financing, by issuance of securities, or
by a sale or partnering of project interests in order to meet its ongoing cash requirements. See discussions at item 3. A)
Results of Operations above and at item F). Liquidity and Capital Resources
below.

21

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

D)             
Related Party Transactions

During the year ended August 31, 2013 an amount of $167,620
(August 31, 2012 - $168,000) was paid to independent directors for directors
fees and services. At August 31, 2013, $nil was included in accounts payable
(August 31, 2012 - $34,000).

During the year ended August 31, 2013 an amount of $1,237,800
(August 31, 2012 - $774,501) was paid to non-independent directors for directors
fees and services.

During the year ended August 31, 2013, the Company provided
accounting, secretarial and reception services at market rates for day-to-day
administration and accounting to Nextraction Energy Corp. (NE), a
company with three directors in common (R. Michael Jones, Frank Hallam and Eric
Carlson). Fees received have been credited by the Company against its own
administrative costs. The Company received service fees of $108,400 (August 31,
2012 - $139,700) during the period from NE.

During the year ended August 31, 2013, the Company provided
accounting, secretarial and reception services at market rates for day-to-day
administration and accounting to West Kirkland Mining (WKM), a company
with two directors in common (R. Michael Jones, Frank Hallam). Fees received
have been credited by the Company against its own administrative costs. The
Company received service fees of $102,000 (August 31, 2012 - $102,000) during
the period from WKM.

The Company had an office lease agreement with Anthem Works
Ltd. (Anthem), a company with a director in common (Eric Carlson).
During the year ended, the Company accrued or paid Anthem $160,634 under the
office lease agreement (August 31, 2012 - $125,747). This office lease was
terminated in July 2013.

All of the above transactions are in the normal course of
business and were completed and measured at estimated market rates.

E)             
Off-Balance Sheet Arrangements

The Company does not have any special purpose entities nor is
it party to any off-balance sheet arrangements.

F)            
 Liquidity and Capital Resources

On January 4, 2013, the Company issued 225,000,000 common
shares at a price of $0.80 per common share, for aggregate gross proceeds of
$180,000,000. Net proceeds to the Company were $168,857,000, after underwriters
fees and other expenses of the offering. At present the Company is using the
balance of the proceeds from this offering to continue work at Project 1, the
Waterberg Extension Project and at the Waterberg JV Project and for general
working capital requirements.

Proceeds from the January 4, 2013 financing were used primarily
to fund Phase 2 construction at Project 1, for exploration and engineering on
the Waterberg Projects and for general and administrative purposes. A tabular
reconciliation of the Companys approximate actual use of proceeds for the
period December 1, 2012 to October 31, 2013 versus the planned 12 month use of
proceeds for the period December 1, 2012 to November 30, 2013, as stated in the
prospectus from the January 4, 2013 offering, follows below:

22

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Platinum Group Metals Ltd. (Exploration and Development
Stage Company)Supplementary Information and MD&AFor the year ended
August 31, 2013

|(In
      thousands of dollars)                                        |   |                      |     |   |                   |  
|---------------------------------------------------------------------- | - | -------------------- | --- | - | ----------------- | -
|                                                                       |   | Estimated Proceeds & |     |   | Actual Proceeds & |  
|                                                                       |   | Available Funds Per  |     |   | Available Funds   |  
|                                                                       |   | 2013 Short Form      |     |   |                   |  
|                                                                       |   | Prospectus Offering  |     |   |                   |  
|Working capital as at
      November 30, 2012                          | $ | 12,680               |     | $ | 12,680            |  
|Gross proceeds of January 2013 offering                                |   | 180,000              |     |   | 180,000           |  
|Underwriter fee and other
      related costs of January 2013 offering |   | (10,435              | )   |   | (11,143           | )
|12 month Original Proposed Loan Facility Draw
      Down               |   | 24,420               | (1) |   | --                |  
|Estimated Available Funds                                              | $ | 206,665              |     | $ | 181,537           |  

|                                                                                         |   | Estimated Use of     |      |   | Actual Use of       |     
|---------------------------------------------------------------------------------------- | - | -------------------- | ---- | - | ------------------- | ----
|                                                                                         |   | Proceeds & Available |      |   | Proceeds &          |     
|                                                                                         |   | Funds Per 2013 Short |      |   | Available Funds     |     
|                                                                                         |   | Form Prospectus      |      |   | December 1, 2012    |     
|                                                                                         |   | Offering             |      |   | to October 31, 2013 |     
|Companys share of estimated
      cost to complete Phase 1                              | $ | (7,275               | )    | $ | (7,480              | )   
|Companys share of estimated 12 months of
      costs for Phase 2                        |   | (106,000             | )    |   | (83,568             | )(2)
|Companys share of 12 months
      of exploration expenditures at the Waterberg Projects |   | (6,000               | )    |   | (7,141              | )(3)
|Companys estimated 12 month net G&A
      expenses                                      |   | (3,600               | )    |   | (3,193              | )(4)
|Companys funding towards its
      share of cost overrun account                        |   | (74,000              | )(5) |   | --                  |     
|Estimated Use of Funds                                                                   | $ | (196,875             | )    | $ | (101,382            | )   
|                                                                                         |   |                      |      |   |                     |     
|Estimated Excess Working Capital                                                         | $ | 9,790                |      | $ | 80,155              | (6) 

|(1) | Calculated as 74% of the estimated draw down amount
      available under the terms of the Originally Proposed Loan Facility to
      November 30, 2013.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Estimated Phase 2 Expenditures for November 2013 total
      $15,600.                                                                                   
|(3) | Estimated Company share of November 2013 Waterberg
      Projects exploration expenditures totals $600.                                                 
|(4) | Estimated November 2013 G&A costs total
  $300.                                                                                                         
|(5) | Calculated as 74% of the maximum possible value of the
      cost overrun facility per the Originally Proposed Loan Facility.                           
|(6) | As at October 31, 2013 before the deduction for November
      amounts detailed in items 2, 3 and 4 above.                                              

As at November 25, 2013 the Company held approximately $83.0
million in total cash on hand, which is sufficient to fund the estimated
general, exploration and development operations of the Company for calendar
2013. However the Company does not have adequate funds to complete construction
of the mine at Project 1. The Company requires additional financing from
external sources, such as the planned New Project Loan Facility, in order to
meet the requirements of its business plan through 2014 and carry out the future
development of its projects.

On December 6, 2012 the Company announced that a syndicate of
lead arrangers had obtained credit committee approval for the US$260 million
Original Proposed Loan Facility for the construction of the Project 1 platinum
mine. Closing and draw down of the Original Proposed Loan Facility was subject
to the negotiation and execution of final documentation and satisfaction of
conditions precedent.

23

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

On October 18, 2013 the 26% partner in the Project 1 platinum
mine, Africa Wide, a subsidiary of Wesizwe, informed the Company that it would
not be funding its approximate US$21.8 million share of a budget and cash call
unanimously approved by the board of directors of Project 1 operating company
Maseve. Africa Wide was also to be a guarantor and obligor to the above
mentioned project loan facility. As a result of Africa Wides decision, the
Company anticipates that it will be required to fund 100% of the Maseve cash
call.

On November 8, 2013 the Company entered into a new mandate
letter with the New Lenders for the US$195 million New Project Loan Facility.
The new mandate letter is subject to the finalization of a facility agreement
and, among other conditions, the New Lenders financial and continued technical
due diligence of the Company and the receipt of necessary regulatory approvals
for the sale of Africa Wides diluted interest in Maseve to a qualified BEE
entity. See further details at Project 1- Senior Loan Facility above.

As a part of the New Project Loan Facility, the Company will be
required to guarantee the obligations of Maseve. The Company will pledge to the
New Lenders its interests in the capital of Maseve and its interests in the
Waterberg Projects. See Risk Factors.

There is no certainty that the Company will be able to
successfully re-structure a project loan facility. Failure by the Company to
complete the New Project Loan Facility or alternative financing for Project 1,
or to provide its share of required funding may result in the delay or
indefinite postponement of exploration, development, or production on any or all
of the Companys properties, or even a loss of property interests. In the event
that adequate financing is not arranged and available to the Company in the
short term, the Company will need to alter its business plan.

The completion of the New Project Loan Facility is subject to a
number of risks, including, without limitation, risks relating to changes in
general market conditions, the condition of the Company or its properties, and
economic, social or political conditions in South Africa. No assurances can be
given that such facility will be consummated on any particular timeline or on
the terms described herein, or at all. Funding under the New Project Loan
Facility, if consummated, is expected to be subject to certain conditions,
including, without limitation, that the Company acquire and maintain all
requisite permits and licenses and establish an agreed metals hedging program.
The Company may be unable to satisfy such conditions on favourable terms, or at
all. In particular, if the New Project Loan Facility is consummated, any
inability of the Company to fund their required equity contributions thereunder
will prevent funding and utilization of such facility and may result in a
default thereunder.

The completion and utilization of the New Project Loan
Facility, combined with the Companys cash on hand, will not fully fund the
Companys business plan, including the construction of Project 1. The Company
will be required to source additional financing by way of private or public
offerings of equity, debt or sale of project or property interests in order to
complete the construction of Project 1 and have sufficient working capital for
continued exploration on the Waterberg Projects, as well as for general working
capital purposes.

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 in
satisfaction of the Companys R58.5 million (approximately $7.56 million at the
time) environmental guarantee for its Mining Right. As a term of the agreement
with the third party insurer, in October 2012, Maseve posted R12 million on
deposit with The Standard Bank of South Africa against its environmental
guarantee obligation and will make further annual deposits of approximately R12
million per annum until the full amount of the environmental guarantee is again
on deposit and the third party arrangement will be wound up, or renewed at
Maseves election. Interest on deposits will accrue to Maseve. Maseve will also
pay an annual fee of approximately R600,000 to the insurer as compensation
against their providing the bond described above.

Accounts receivable at year end totaled $6.9 million (August
31, 2012 - $4.7 million) being comprised mainly of value added taxes refundable
in South Africa and amounts owed by joint venture partners. Accounts payable and
accrued liabilities at year end totaled $25.06 million (August 31, 2012 - $7.78
million).

24

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Apart from net interest earned on cash deposits during the year
ended August 31, 2013 of $5.0 million (August 31, 2012 - $3.94 million), the
Company had no sources of income. The Companys primary source of capital has
been from the issuance of equity. At August 31, 2013 the Company had
unrestricted cash and cash equivalents on hand of $111.78 million compared to
$17.67 million at August 31, 2012. The increase in cash since August 31, 2012 is
primarily due to the Companys equity offering closed on January 4, 2013 less
expenditures on Project 1 and ongoing general and administration costs. At
August 31, 2013 exchange rates, and including interest earned, an additional
cash balance of $10.16 million (August 31, 2012 - $30.51) remained in escrow in
a restricted cash account on behalf of Wesizwe. To August 31, 2013 a total of
$32 million (August 31, 2012  $19 million) has been applied from escrow against
Wesizwes 26% share of project expenditures.

The Company receives lump sum cash advances at various times as
laid out in agreed budgets from its partners to cover the costs of joint venture
projects.

The following table discloses the Companys contractual
obligations. The Company currently has no long term debt or loan
obligations.

Payments by period in Canadian Dollars (in
thousands)

< 1
    
    
    1  3
    
    
    4  5
    
    
    > 5
    
    
    TotalYear
    
    
    Years
    
    
    Years
    
    
    YearsLease Obligations
    
    403
    
    
    861
    
    
    964
    
    
    1,023
    
    
    3,251ESKOMPower(1)
    
    9,313
    
    
    -
    
    
    -
    
    
    -
    
    
    9,313Magalies Water
    
    14,536
    
    
    -
    
    
    -
    
    
    
    
    
    14,536Insurance contracts
    
    61
    
    
    -
    
    
    -
    
    
    -
    
    
    61Concentrator Plant and
      Surface Infrastructure
    
    28,236
    
    
    3,819
    
    
    -
    
    
    -
    
    
    32,055Mining Development
    
    47,866
    
    
    33,132
    
    
    -
    
    
    -
    
    
    80,998Mining Equipment
    
    6,975
    
    
    76
    
    
    -
    
    
    -
    
    
    7,051Totals
    $
    107,390
    
    $
    37,888
    
    $
    964
    
    $
    1,023
    
    $
    147,265


Explanatory Notes:

|(7) | The Companys project operating subsidiary Maseve has
      entered into a long term electricity supply agreement with ESKOM. Under
      the agreement the Company received connection and service for a 10MVA
      construction power supply in October 2013. A total 40 MVA production power
      supply is now planned for delivery in stages to 2017. Remaining connection
      fees and guarantees for the full service total Rand 90,508,735 ($9.3
      million at August 31, 2013).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The above contracts are subject to the following estimated
break fees (in 000s) in the event of cancellation:

Concentrator Plant & Surface Infrastructure
    $
    14,097Mining Development
    
    10,012Mining Equipment
    
    6,382Other Property Expenditures
    
    5,126Total
    $
    35,617


Break fees are estimated by means of contractual notice
periods, work in progress costs and normal costs associated with the unwinding
and disestablishment of certain contractors.

25

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

On March 26, 2013 the Company waived an outstanding condition
precedent to a water off-take agreement with the Magalies Water Board for the
long term supply of water to the Project 1 mine site. The agreement is now in
effect. Pursuant to a 50/50 sharing agreement with Wesizwe, the Company will be
responsible for the cost of regional infrastructure to deliver water to the
Project 1 mine site in an amount not to exceed R73.0 million (approximately
$7.51 million at August 31, 2013). In order to source water for its own nearby
project Wesizwe will be required to pay for its 50% share of the cost as
described above. Wesizwe indicated to the Company on November 11, 2013 that they
will comply with the sharing agreement.

Outstanding Share Data

The Company has an unlimited number of common shares authorized
for issuance without par value. At August 31, 2013, there were 402,759,542
common shares outstanding, 15,808,500 incentive stock options outstanding at
exercise prices of $0.96 to $2.57. At November 26, 2013, there were 402,759,542
common shares outstanding and 14,676,500 incentive stock options outstanding.
During the period ending August 31, 2013, the Company made no changes to the
exercise price of outstanding options through cancellation and re-grant or
otherwise.

4.          
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.

Risks Relating to our Company

The inability of the Company to find a suitable joint
venture partner for Project 1 and Project 3 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 to meet
project expenditures, which are determined annually and adjusted each quarter
based on a review of Maseves financial performance and progress. Such cash
calls are to be made in proportion to the joint venture partners shareholdings
in Maseve. In October 2013, Africa Wide declined to fund its share of a cash
call by the board of directors of Maseve. As a result, and determined in
accordance with the dilution provisions of the Maseve Shareholders Agreement,
the Company estimates that Africa Wide will dilute from 26% to approximately a
21.02% interest in Maseve and therefore Project 1 and Project 3. In order to
maintain the Mining Right in good standing, Maseve must have 26% BEE ownership
by December 31, 2014 and the Company must therefore find a bona fide BEE company
to acquire Africa Wides diluted points of interest in Maseve. There is no
guarantee that the Company will be able find such a partner on commercially
reasonable terms, if at all, or that such partner would be acceptable to the
Lenders of the New Project Loan Facility. The Company is considering selling the
diluted percentage interest points in Maseve to Mnombo. Should that occur, the
Company would be responsible for approximately 49.9% of cash calls due to Maseve
owing to the Companys stake in Mnombo. If the Company is unsuccessful in
finding a suitable partner and reaching an agreement on the terms of the new
partners investment in Maseve, the Mining Right could be suspended or cancelled
by the DMR. Under the terms of the Maseve Shareholders Agreement, if Maseve is
instructed by the DMR to increase its BEE ownership, any agreed costs or
dilution of interests shall be borne equally by the Company and Africa Wide,
notwithstanding that Africa Wide will hold only 22.45% of the equity in Maseve, subject to the shareholder and board-approved issuance of
shares in Maseve to the Company to account for the dilution of Africa Wide and
to the upcoming arbitration.

26

---

Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

The failure of the Company or its joint venture partners
to fund their respective 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 is a party to the Maseve
Shareholders Agreement related to the exploration and development of Project 1
and Project 3. On October 18, 2013, Africa Wide, the Companys 26% BEE partner
in Maseve, 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. As a result of this decision, it has been
necessary to renegotiate and restructure the Original Proposed Loan Facility for
Project 1 and delay certain expenditures on Project 1. The Company will also be
required to find a new BEE partner to ensure that the ownership of Maseve
complies with the BEE requirements of South African law. Africa Wides decision
may result in significant adverse effects on the Company and Maseve, including
delays in the development and financing plan, increases in expenses, less
advantageous financing terms and, potentially, the failure of planned financing
and the halting of development on Project

1. Any failure by PTM RSA, Africa Wide or a future joint
venture partner under the Maseve Shareholders Agreement to contribute its
pro-rata share of a cash call, would result in dilution of that partner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, 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.

In addition, 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
venture(s) 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 will not be sufficient to fund
its business as currently planned for the next 12 months, and the Company
therefore requires additional financing, which may not be available on
acceptable terms, if at all.

The Company currently does not have adequate funds to satisfy
all of its planned financial requirements for the next 12 months relating to the
exploration, development and operation of its projects. The Company therefore
requires additional financing from external sources, such as debt financing,
equity financing or joint ventures, in order to meet such requirements and carry
out the future development of its projects and external growth opportunities.
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. The
Company will be required to obtain approval from the New Lenders before making a
public offer of its shares. There can be no assurance that such 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 the Common Shares and the interests of shareholders in the net assets of the
Company may be diluted.

27

---

Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

The Company is seeking to secure the New Project Loan Facility
for Maseve. At the present time, no binding commitments have been signed by the
New Lenders with respect to the New Project Loan Facility. The New Lenders are
under no obligation to provide the New Project Loan Facility on the terms
described in this MD&A, or at all. The completion of the New Project Loan
Facility on the terms described in this MD&A is subject to a number of
risks, including, without limitation, risks relating to the ability of the
Company to find a suitable BEE partner, regulatory requirements, litigation,
changes in general market conditions, the condition of the Company or its
properties, and economic, social or political conditions in South Africa. No
assurances can be given that such facility will be consummated on the timeline
or on the terms described herein, or at all. In addition, funding under the New
Project Loan Facility, if consummated, is expected to be subject to certain
conditions, including, without limitation, that the Company restructure certain
of its holdings, secure additional equity funding, acquire and maintain all
requisite permits and licenses and establish an agreed metals hedging program.
The Company may be unable to satisfy such conditions on favourable terms, or at
all. In particular, if the New Project Loan Facility is consummated, any
inability of the Company, Africa Wide or any joint venture partner to fund its
required equity contributions thereunder will prevent funding and utilization of
such facility and may result in a default thereunder, or in the case of Africa
Wide being unable to fund, the Company may be required to fund the shortfall to
avoid a default under such facility.

The completion and utilization of the New Project Loan
Facility, combined with the Companys cash on hand, will not fully fund the
Companys business plan, including the construction of Project 1. The Company
will be required to source additional financing by way of private or public
offerings of equity, debt or sale of project or property interests in order to
complete the construction of Project 1 and have sufficient working capital for
continued exploration on the Waterberg Projects, as well as for general working
capital purposes.

Any failure by the Company to obtain required financing on
acceptable terms 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.

The Company has a history of losses, and it anticipates
continuing to incur losses for the foreseeable future.

Apart from income for the year ended August 31, 2010 of $26.66
million, the Company has a history of losses. None of the Companys properties
are 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 for the foreseeable
future 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 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.

28

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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

Other than with respect to the Project 1 platinum mine, 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. As a result, the Company is subject to all of the risks
associated with establishing new mining operations, including:

| | 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;              
|  |                                                                                                                                                                  
| | 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 has 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.

29

---

Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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 MD&A 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 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 on-site conditions or in
production scale. 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. 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.
Any material reductions in estimates of mineralization, or of the Companys
ability to extract this mineralization, could have a material adverse effect on
the Companys results of operations or financial condition. The effect of any
reductions in estimates at the Project 1 platinum mine may be exacerbated given
the relatively small size of the deposit and short mine life of the project.

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 estimated to have increased by approximately 24% since the 2009 UFS, principally as a result of increased prices for
labour, power and consumables, such as drill steel, roof bolts, explosives and
fuel. In addition, construction costs at the Project 1 platinum mine are
estimated to have increased by approximately 14% since the 2009 UFS, primarily
as a result of increased labour, construction and capital equipment costs. As a
result of higher capital and operating costs, production and economic returns
may differ significant from those the Company has anticipated.

30

---

Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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. The Company is primarily funded 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. 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, 2013, the Company recorded a foreign currency
translation adjustment of approximately $28.2 million as a loss in other
comprehensive income, which was primarily the result of translating the
Companys Rand denominated assets and liabilities in South Africa, and cash
balances held in Rand, at weaker exchange rates to the Rand from Canadian
Dollars at fiscal year-end on August 31, 2013.

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; and                                                              
|  |                                                                                          
| | increases or decreases in
      production due to improved mining and production methods.

31

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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.

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

The ability of investors to enforce judgments of United States
courts based upon the civil liability provisions of the United States federal
securities laws against the Company, its directors and officers, and the experts
named herein may be limited due to the fact that the Company is incorporated
outside of the United States, a majority of such directors, officers, and
experts reside outside of the United States and their assets may be located
outside the United States. There is uncertainty as to whether foreign courts
would: (a) enforce judgments of United States courts obtained against the
Company, its directors and officers or the experts named herein predicated upon
the civil liability provisions of the United States federal securities laws; or
(b) entertain original actions brought in Canadian courts against the Company or
such persons predicated upon the federal securities laws of the United States,
as such laws may conflict with Canadian laws.

The Company will be required to provide a guarantee under
the New Project Loan Facility, if consummated and secured.

The Company is currently negotiating and seeking to secure the
New Project Loan Facility on behalf of Maseve. The Company expects that such
facility, if consummated and if secured, will obligate the Company to provide a
guarantee of the obligations of Maseve thereunder and indirectly pledge its
interest in the capital of Maseve and its interests in the Waterberg Projects.
Maseve holds the Mining Right to the Project 1 platinum mine. It is expected
that the terms of the New Project Loan Facility agreements, if consummated and
if secured, will have various covenants, including financial tests that must be
satisfied during the term of the New Project Loan Facility. There can be no
assurance that such tests will be satisfied. Any default under the New Project
Loan Facility, including any covenants thereunder, could result in the loss of
the Companys entire interest in Maseve and the Project 1 platinum mine and its
interests in the Waterberg Projects.

There may be a delay in the start-up of the Project 1
platinum mine, which could result in a default under the New Project Loan
Facility, if consummated and secured.

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, availability of major equipment and
personnel and the Companys ability to obtain requisite funding, permits and
licenses and the Companys ability to execute necessary agreements, some of
which factors are beyond the Companys control, and which 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 has been postponed by approximately
six months to mid-2015 and any further 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 New
Project Loan Facility, if consummated and secured, which may accelerate amounts
due thereunder and permit the Lenders to realize on any applicable security
thereunder. This could result in a complete loss of the Companys investment in
Maseve 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.

32

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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.

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 South Africans and women 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 WKM, a public company with mineral exploration
properties in Ontario and Nevada, and a director of 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 and a director
of MAG Silver Corp. (MAG Silver), a public company with mineral
exploration properties in Mexico, Lake Shore Gold Corp., a public company with
producing and exploration properties in Ontario, and NE. Eric Carlson, a
director of the Company, is also a director of MAG Silver and NE. Barry Smee, a
director of the Company, is also a director of Almaden MineralsLtd., a
company with projects in Mexico, the United States and Canada.

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. Although the Companys level of control over Maseve will increase
as a result of the increase of its percentage interest above 75%, the Company
will not control all matters relating to Maseves business. The Company is
entering into arbitration proceedings against Africa Wide to determine the
extent of Africa Wide's dilution of shareholding in Maseve following its failure
to meet the October 18, 2013 cash call described above. Further, the Company
anticipates being required to sell certain of its interests in Maseve to a HDSA
company, which will reduce the Companys level of control. In addition, PTM RSA
is also a party to a letter agreement with JOGMEC and Mnombo 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%, respectively.
JOGMEC has advised the Company that it intends to transfer its interest in the
Waterberg JV Project pursuant to an auction process. 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. Any change in the identity,
management or strategic direction of one or more of the Companys joint venture
partners, including any disagreement among the Mnombo shareholders, could
materially adversely affect the Companys business and results of operations.
Additionally, 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, which could materially
and adversely affect the Companys business and results of operations.

33

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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 the 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, 2013,and
based on current business plans and financial expectations, the Company expects
that it will 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
the 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 the Common Shares over the taxpayer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.

34

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Risks Related to the Mining Industry

Mining is inherently dangerous and 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, explosions, inclement weather, cave-ins,
flooding 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.

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 closing of certain
of the Companys mining operations. During the period from February to March
2013 advance was halted or delayed for approximately a month due to a Notice
under Section 54 of the Mine Health and Safety Act (1996). If claims and
lawsuits or governmental investigations or proceedings are finally resolved
against the Company, the Companys financial performance, financial position and
results of operations could be materially adversely affected. See Project 1 
Safety above.

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 claim 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 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 toxic
      substances and explosives;                       
|  |                                                                                    
| | management of tailings and other
      waste generated by the Companys operations;
|  |                                                                                    
| | management of natural resources;                                                   

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

| | 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 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 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.

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 securing additional infrastructure, including additional power and
water; however, such efforts are subject to a number of risks, including risks
related to inflation, cost overruns and delays, political opposition, and
reliance upon third parties, many of which factors 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 believes that it has the necessary surface access rights
to develop Project 1; however, 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.

36

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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 for companies and
their officers, directors and employees. 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.
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 restrictive.

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.

The Company has not made any material expenditure for
environmental compliance to date. However, 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 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, 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 South
African and Canadian national, provincial, territorial and local governmental
authorities. The Mining Right for Project 1 platinum mine issued by the DMR is
subject to environmental authorizations, water use licenses, land use consents
and compliance with applicable legislation on an ongoing basis. The Waterberg
Projects prospecting rights issued by the DMR are subject to environmental
authorizations, land use consents and compliance with applicable legislation on an
ongoing basis. The Company cannot be certain that all permits that it now or in
the future may require for its operations will be obtainable on reasonable terms
or at all. Delays or a failure to obtain such licenses and permits, or a failure
to comply with the terms of any such licenses and permits that the Company has
obtained, could have a material adverse impact on the Company.

37

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

In addition, the duration and success of efforts to obtain 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.
In South Africa, it has become established practice to negotiate wages and
conditions of employment with the unions every two years through the Chamber of
Mines of South Africa. 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.

South African foreign exchange controls may limit
repatriation of profits

South Africas exchange control regulations restrict the export
of capital from South Africa. Although the Company is not itself subject to
South African exchange control regulations, these regulations do restrict the
ability of the Companys South African subsidiaries to raise and deploy capital
outside the country, to borrow money in currencies other than the South African
Rand and to hold foreign currency. Exchange control regulations could make it
difficult for the Companys South African subsidiaries to: (a) export capital
from South Africa; (b) hold foreign currency or incur indebtedness denominated
in foreign currencies without approval of the relevant South African exchange
control authorities; (c) acquire an interest in a foreign venture without
approval of the relevant South African exchange control authorities and
compliance with certain investment criteria; and (d) repatriate to South Africa
profits of foreign operations. While the South African government has relaxed
exchange controls in recent years, it is difficult to predict whether or how it
will further relax or abolish exchange control measures in the foreseeable
future. There can be no assurance that restrictions on repatriation of earnings
from the South Africa will not be imposed on the Company in the future.

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.

38

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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.

This issue was particularly poignant in late 2012 when wild-cat
strikes and violence occurred near the Project 1 platinum mine and generally at
other platinum mines. Although the Company has not had issues at this time at
its sites, 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 start-up mine operations. The Company faces a number of risks
from deliberate, malicious or criminal acts, 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. The value of the natural mineral
endowment of South Africa has become one of the major debating points in
deciding how best to advance the empowerment of its historically disadvantaged
individuals, groups and communities, and policies relating to resource
nationalism are being debated in South Africa. The African National Congress
(ANC) held a policy conference in June 2012 at which the State
Intervention in the Minerals Sector report (SIMS Report), commissioned
by the ANC, was debated. A further conference was held in December 2012 to
choose a candidate to lead the party into the general elections in 2014 and to
give further policy guidelines. Although wholesale nationalization was rejected,
the resolution on nationalization calls for state intervention in the economy,
including state ownership. This policy is evidenced in the amendments proposed
to the MPRDA by the Mineral and Petroleum Resources Development Amendment Bill,
2013 ("Amendment Bill") which envisages a 20% free carried interest in
favour of the State in future petroleum projects. At the time of this writing,
the Amendment Bill is still being considered by the Parliamentary Portfolio
Committee on Mineral Resources.

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 South African Restitution of Land Rights Act1994 (the Land Claims Act). Under the Land Claims Act, any person
who was dispossessed of rights in land in South Africa as a result of past
racially discriminatory laws or practices without payment of just and equitable
compensation is granted certain remedies, including the restoration of the land
against payment to the owner of compensation by the state. Under the Land Claims
Act, persons entitled to institute a land claim were required to lodge their
claims by December 31, 1998. The Company has not been notified of any land
claims to date, but any claims of which it is notified in the future could have
a material adverse effect on its right to the properties to which the claims
relate and, as a result, on the Companys business, operating results and
financial condition.

The South African Restitution of Land Rights Amendment Act2004 (the Amendment Act) became law on February 4, 2004. Under the
Land Claims Act, the South African Minister for Agriculture and Land Affairs
(the Land Minister), may not acquire ownership of land for restitution
purposes without a court order unless an agreement has been reached between the
affected parties. The Amendment Act, however, entitles the Land Minister to
acquire ownership of land by way of expropriation either for claimants who do
not qualify for restitution, or, in respect of land as to which no claim has
been lodged but the acquisition of which is directly related to or affected by
a claim, the acquisition of which would promote restitution to those entitled or
would encourage alternative relief to those not entitled. Expropriation would be
subject to provisions of legislation and the South African Constitution (the
Constitution) which provides, in general, for just and equitable
compensation. There is, however, no guarantee 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, which could have a negative impact
on the Companys South African projects and therefore an adverse effect on its
business and financial condition.

39

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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. Maseves 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.

The South African Minister of Mineral Resources has the
discretion to cancel or suspend mining rights under section 47(1) of the MPRDA
as a consequence of the Companys non-compliance 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. In 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 by it. 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 Constitution.

Failure 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.

40

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

The failure to maintain or increase equity participation
by historically disadvantaged South Africans (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 socioeconomic strategies are
implemented, the MPRDA provides for the Codes of Good Practice for the Minerals
Industry (the Codes) which specify empowerment targets consistent with
the objectives of 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 the 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 Project. Until the recent dilution
of Africa Wides interest in Maseve, the Companys BEE partners held a 26%
interest in the respective operating company or project. 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. 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, Anglo
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. Although
Anglos 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 Anglos 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 was below the 26% HDSA ownership level prior
to its dilution in October 2013.

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 51%. 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.

41

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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 section 47 of the MPRDA. See Risk Factors  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.

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.

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 maintain a 26% interest by
bona fide 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, subject to the upcoming arbitration, only 22.45% of the equity.

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 Broad Based Black Economic
Empowerment Codes of Good Practice (Codes of Good Practice), while
certain industries have their own transformation charters administered by the
relevant government department (in this case, the DMR). The Broad-based Black
Economic Empowerment Bill ("BEE Bill") proposes changes to the BEE Act
which, if implemented, would provide a standard framework for the measurement of
BEE compliance across all sectors of the economy. There is a risk that all of
the industry specific transformation charters, including the Mining Charter
under which the Company has agreed targets with the DMR and against which the
Company currently measures its compliance through the Mining Charter Scorecard,
may be superseded, in which case the Company would be required to comply with
the criteria set forth under the BEE Act and any new or revised Codes of Good
Practice. The BEE Bill has passed through the parliamentary process and is
awaiting signing into law. However, the impacts of the BEE Bill are uncertain
and the Company cannot predict the scope or timing of such amendments or
modifications to the BEE Act, Codes of Good Practice or the Mining Charter, and
the impact that these amendments or modifications may have on its business.

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.

42

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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.
The minimum royalty rate is 0.5% and the maximum royalty rate for mineral
resources transferred in unrefined form 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.

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, community royalties, various forms of duties, dividend withholding
tax and interest withholding tax. The tax regime in South Africa is subject to
change.

The ruling party, the ANC, held a policy conference in June
2012 at which the SIMS Report commissioned by the ANC was debated. The SIMS
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 profits 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.

Carbon Tax/Climate Change Policies

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 1 January 2015
to 31 December 2019. During the first phase, it is proposed that carbon tax be
introduced at R120 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 R12 and R48 per ton of carbon dioxide equivalent.

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

The second phase to 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.

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.

The Companys 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 $1.51 to a low of $0.75 and on the NYSE MKT
LLC (NYSE MKT) from a high of US$1.52 to a low of US$0.77 during the
twelve month period ending August 31, 2013. 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 Shares 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;                                                  
|  |                                                                                                                                                                                                                                              
| | 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.

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

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. Following the credit crisis that began in 2008, global
markets continue to be adversely impacted by the European debt crisis and high
fuel and energy costs. 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.

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 for the Common Shares.

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.

5.          
OUTLOOK

At present Platinum Group is continuing with construction at
Project 1 with current contractors and has stopped significant new contracts.
Africa Wides failure to fund its share of Project 1 costs on an ongoing basis
has resulted in the need for the Company to restructure its financial plan for
the completion of Project

1. See Project 1 - Senior Loan Facility, Liquidity and
Capital Resources and Risk Factors above for a further discussion.

The Companys key business objectives for 2013 and into 2014
will be to restructure and close the New Project Loan Facility or other
financing for Project 1, continue with the underground development and mine
construction at Project 1 and continue exploration on both the Waterberg JV
Project property and the Waterberg Extension Project.

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Commencement of Phase 2 development at Project 1 began in
January 2013 and will utilize the Companys cash on hand in measured stages
until the proposed New Project Loan Facility or other financing is completed and
in place. In the event that the New Project Loan Facility is not completed and
available to the Company by the beginning of calendar 2014, the Company would
likely need to alter its business plan. A first alternative business plan would
be the sourcing and completion of alternative debt and/or equity financing in
order to complete the existing Phase 2 development schedule, although there is
no guarantee that such funding would be available to the Company. A second
option would be the suspension of Phase 2 development and the potential sale of
ore from underground workings at Project 1 already established. In this second
scenario, a milling and concentrating facility would not be immediately built
and the construction of such facilities would be postponed until funding became
available.

The Company plans to continue working withits joint
venture partner JOGMEC, who is also providing funding, to conduct exploration on
the Waterberg JV Project. A preliminary economic assessment is being undertaken
for the Joint Venture project and is targeted for completion at the end of
calendar 2013.

6.         
 CRITICAL ACCOUNTING ESTIMATES

The preparation of our consolidated financial statements in
conformity with IFRS requires management to use estimates and assumptions that
affect the reported amounts of assets and liabilities, as well as income and
expenses. The Companys accounting policies are described in note 2 of our
audited annual consolidated financial statements for the year ended August 31,
2013.

Review of asset carrying values and impairment

In accordance with the Companys accounting policy, each asset
or cash generating unit is evaluated every reporting period to determine whether
there are any indications of impairment. If any such indication exists, a formal
estimate of recoverable amount is performed and an impairment loss is recognised
to the extent that the carrying amount exceeds the recoverable amount. The
recoverable amount of an asset or cash generating group of assets is measured at
the higher of fair value less costs to sell and value in use.

The determination of fair value less costs to sell and value in
use requires management to make estimates and assumptions about expected
production, commodity prices, reserves, operating costs, closure and
rehabilitation costs and future capital expenditures. The estimates and
assumptions are subject to risk and uncertainty; hence there is the possibility
that changes in circumstances will alter these projections, which may impact the
recoverable amount of the assets. In such circumstances some or all of the
carrying value of the assets may be further impaired or the impairment charge
reduced with the impact recorded in the income statement.

Asset Retirement Obligations

The amounts recorded for asset retirement costs are based on
estimates included in closure and remediation plans. These estimates are based
on engineering studies of the work that is required by environmental laws. These
estimates include an assumption on the rate at which costs may inflate in future
periods. Actual costs and the timing of expenditures could differ from these
estimates.

Income and Resource Taxes

The determination of our future tax liabilities and assets
involves significant management estimation and judgment involving a number of
assumptions. In determining these amounts we interpret tax legislation in a
variety of jurisdictions and make estimates of the expected timing of the
reversal of future tax assets and liabilities. We also make estimates of our
future earnings which affect the extent to which potential future tax benefits
may be used. We are subject to assessment by various taxation authorities, which
may interpret tax legislation in a manner different from our view. These
differences may affect the final amount or the timing of the payment of taxes.
When such differences arise we make provision for such items based on our best
estimate of the final outcome of these matters.

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

Determination of ore reserve and mineral resource
estimates

The Company estimates its ore reserves and mineral resources
based on information compiled by Competent Persons as defined by NI 43-101.
Reserves determined in this way are used in the calculation of depreciation,
amortization and impairment charges, and for forecasting the timing of the
payment of close down and restoration costs. In assessing the life of a mine for
accounting purposes, mineral resources are only taken into account where there
is a high degree of confidence of economic extraction. There are numerous
uncertainties inherent in estimating ore reserves, and assumptions that are
valid at the time of estimation may change significantly when new information
becomes available. Changes in the forecast prices of commodities, exchange
rates, production costs or recovery rates may change the economic status of
reserves and may, ultimately, result in reserves being restated. Such changes in
reserves could impact on depreciation and amortization rates, asset carrying
values and provisions for close down and restoration costs.

7.         
 DISCLOSURE CONTROLS AND INTERNAL CONTROL OVER FINANCIAL REPORTING

The Company maintains a set of disclosure controls and
procedures designed to ensure that information required to be disclosed in
filings made pursuant to both SEC and Canadian Securities Administrators
requirements are recorded, processed, summarized and reported in the manner
specified by the relevant securities laws applicable to the Company. Disclosure
controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by an issuer in the
reports that it files or submits under the applicable securities legislation is
accumulated and communicated to the issuers management, including its principal
executive and principal financial officers, or persons performing similar
functions, as appropriate to allow timely decisions regarding required
disclosure. The Chief Executive Officer and the Chief Financial Officer have
evaluated the Companys disclosure control procedures as of August 31, 2013
through inquiry, review and testing, as well as by drawing upon their own
relevant experience. The Chief Executive Officer and the Chief Financial Officer
have concluded that as at August 31, 2013 the Companys disclosure control
procedures were effective.

The Companys management, including the Chief Executive Officer
and the Chief Financial Officer, is responsible for establishing and maintaining
adequate internal control over financial reporting, and evaluating the
effectiveness of the Companys internal control over financial reporting as at
each fiscal year end. Management has used the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) framework to evaluate the
effectiveness of the Companys internal control over financial reporting as at
August 31, 2013. Based on this evaluation, management has concluded that as at
August 31, 2013, the Companys internal controls over financial reporting was
effective.

Changes in Internal Controls over Financial
Reporting

No change in the Companys internal control over financial
reporting occurred during the quarter ended August 31, 2013 that has materially
affected, or is reasonably likely to materially affect, the issuers internal
control over financial reporting.

Exemption from Section 404(b) of the Sarbanes-Oxley
Act

Under the Jumpstart Our Business & Startups Act (JOBS
Act) emerging growth companies are exempt from Section 404(b) of the
Sarbanes-Oxley Act, which generally requires public companies to provide an
independent auditor attestation of managements assessment of the effectiveness
of their internal control over financial reporting. The Company qualifies as an
emerging growth company under the JOBS Act and therefore has not included an
independent auditor attestation of managements assessment of the effectiveness
of its internal control over financial reporting in this MD&A or in its
audited annual consolidated financial statements for the year ended August 31,
2013.

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Platinum Group Metals Ltd. (Exploration and Development Stage Company)Supplementary Information and MD&AFor the year ended August 31, 2013

8.            
 OTHER INFORMATION

Additional information relating to the Company for the year
ending August 31, 2013 may be found on SEDAR at www.sedar.comand on EDGAR at www.sec.gov.Readers are encouraged to review the
Companys audited annual consolidated financial statements for the year ended
August 31, 2013 together with the notes thereto as well as the Companys 2013
Annual Information Form.

On July 10, 2012, the Company announced that its board of
directors had approved the adoption of a shareholder rights plan dated July 9,
2012 subject to shareholder approval. The shareholder rights became effective,
subject to shareholder ratification within six months of the date the
shareholder rights plan was adopted. The shareholders rights plan was voted upon
and approved by shareholders at the Companys annual general meeting on January
8, 2013.

LIST OF DIRECTORS AND
OFFICERS

| | a) | Directors:                  | b) | Officers:                                 
| | -- | --------------------------- | -- | ------------------------------------------
| |    | R. Michael Jones            |    | R. Michael Jones (Chief Executive Officer)
| |    | Frank R. Hallam (Secretary) |    | Frank R. Hallam (Chief Financial Officer) 
| |    | Iain McLean                 |    | Peter C. Busse (Chief Operating Officer)  
| |    | Eric Carlson                |    | Kris Begic (VP, Corporate Development)    
| |    | Barry W. Smee               |    |                                           
| |    | Timothy Marlow              |    |                                           
| |    | Diana Walters               |    |                                           

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