Platmin Limited - Market Release



    /NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER
    UNITED STATES NEWSWIRE SERVICES/

    TORONTO, Jan. 14 /CNW/ - Platmin Limited ("Platmin" or the "Company";
TSX/AIM: PPN) is pleased to announce its financial accounts and its
Management's Discussion and Analysis of Financial Condition and Results of
Operations for the period ended 30 November, 2007

    INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
    RESULTS OF OPERATIONS

    (For the three and nine month periods (Quarter 3) ended
    November 30, 2007)

    January 8, 2008

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    This Interim Management's Discussion and Analysis of Financial Condition
and Results of Operations ("Interim MD&A") for the three and nine month
periods ended November 30, 2007 contains "forward-looking information" which
may include, but is not limited to, statements with respect to the future
financial and operating performance of the Company, its subsidiaries and
affiliated companies, and its mineral projects, the future price of platinum
or other Platmin Group Minerals ("PGM"s), the estimation of mineral resources,
the realization of mineral resource estimates, costs of production, capital
and exploration expenditures, costs and timing of the development of new
deposits, costs and timing of the development of new mines, costs and timing
of future exploration, requirements for additional capital, government
regulation of mining operations and exploration operations, timing and receipt
of approvals, licenses, and conversions under South African mineral
legislation, environmental risks, title disputes or claims, limitations of
insurance coverage and the timing and possible outcome of pending litigation
and regulatory matters. Often, but not always, forward-looking statements can
be identified by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Platmin
Limited ("Platmin") and/or its subsidiaries and/or its affiliated companies to
be materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such factors include,
among others, general business, economic, competitive, political and social
uncertainties; the actual results of current exploration activities;
conclusions of economic evaluations and studies; fluctuations in the value of
the United States dollar relative to the Canadian dollar or South African
rand; changes in project parameters as plans continue to be refined; future
prices of platinum or other PGMs; possible variations of ore grade or recovery
rates; failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry; political
instability, insurrection or war; the effect of HIV/AIDS on labour force
availability and turnover; delays in obtaining governmental approvals or
financing or in the completion of development or construction activities, as
well as those factors communicated in the section entitled "Risk Factors" of
Platmin's previously filed prospectus which can be viewed at www.sedar.com.
Although Platmin has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions,
events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date of this
Interim MD&A and Platmin disclaims any obligation to update any
forward-looking statements, whether as a result of new information, future
events or results or otherwise. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements due to the inherent uncertainty therein. The South African
government has introduced the Mineral and Petroleum Royalty Bill (the "Royalty
Bill"), which proposes a royalty payable to the South African government for
PGMs at the rate of three to six percent of gross sales. The proposed
legislation has not yet been passed but is scheduled to become effective in
2009. The provision of any legislation resulting from the Royalty Bill and the
effect of such legislation remains uncertain.

    Introduction

    Information in this Interim MD&A is intended to supplement the unaudited
interim consolidated financial statements of Platmin for the three and nine
month periods ended November 30, 2007 and the notes thereto (collectively, the
"Financial Statements"), which are expressed in United States dollars and
prepared in accordance with Canadian generally accepted accounting principles
("Canadian GAAP"). References to quarters are to the financial quarters and
not to calendar quarters, unless otherwise stated.
    This Interim MD&A should be read in conjunction with the annual audited
consolidated financial statements of the Company for the year ended February
28, 2007. These documents can be found at www.sedar.com and at
www.platmin.com.

    Overview

    Platmin is incorporated under the federal laws of Canada and its common
shares are listed on the Toronto Stock Exchange ("TSX") and the AIM Market on
the London Stock Exchange ("AIM"). The Company completed its initial public
offering ("IPO") and listing on the TSX and AIM simultaneously on August 10,
2006 and trades under the symbol "PPN" on both exchanges.
    Platmin is a mineral exploration Company engaged in the exploration for,
and development of, PGM deposits in South Africa. Platmin is exploring for
PGMs on its four key projects: Pilanesberg, M'Phatlele, Grootboom, and Loskop.
Platmin's goal is to become a significant producer of PGMs through the
development and operation of several mines on its key projects. Management's
development plan envisages the development of a mine on the Pilanesberg
Project, while making progress in exploration, resource delineation and
feasibility work on the other key projects.

    Overall Performance

    The Company recorded a net loss for the quarter ended November 30, 2007
of US$1.02 million, or US$0.01 per share, compared with a net loss of US$2.29
million, or US$0.02 per share, for the quarter ended November 30, 2006. The
Company recorded a net loss for the 9 months ended November 30, 2007 of
US$5.89 million, or US$0.06 per share, compared with a net loss of
US$5.15 million, or US$0.07 per share, for the 9 months ended November 30,
2006. The increase in loss was principally the result of an increase in
management fees, consulting fees, and professional fees and corporate
administrative expenditure of the Company.
    The Company follows the practice of capitalizing all costs related to
acquisition, exploration and development of mineral exploration properties
until such time as the mineral properties are put into commercial production,
sold, or become impaired. If commercial production commences, these
capitalized costs will be amortized prospectively on a unit-of-production
basis. In the nine months ended November 30, 2007, the Company's deferred
exploration expense increased to US$26.58 million from US$21.50 million as at
the financial year ended February 28, 2007.
    During the quarter ended November 30, 2007 a total of 3,667,500 options
were exercised under the company's share incentive scheme, using the cashless
option, resulting in the issue of 2,859,933 common shares. A further 300,000
options were exercised under the company's share incentive scheme, at an
option price of US$0.63 per share, raising US$189,000 resulting in the issue
of 300,000 common shares. During the quarter ended November 30, 2007, no new
options were issued.
    As at November 30, 2007, the Company had 2,990,000 exercisable share
options out of 3,615,000 options outstanding the Company's share option
incentive scheme, which, if exercised in full, would raise US$3,559,375
through the issuance of an additional 2,990,000 common shares. As at November
30, 2007, the Company had 99,534,871 common shares in issue.
    The Company is conducting exploration which includes drilling and bulk
sample programs. The Pilanesberg trial pit was completed in March 2007 where a
trial mining and bulk sampling program was successfully carried out. It has no
operating business segment and no revenue generating activities. Expenditures
on exploration of mineral properties constitute the Company's only operations
and all exploration expenses are deferred on the balance sheet as long as the
respective interest in the property is maintained and not impaired. Corporate
and administration expenses, as well as any general exploration expenditures,
are charged to the statement of operations, deficit and comprehensive loss,
when incurred.

    

    1.  Selected Quarterly Information

                              Quarter Ended
                         ----------------------------------------------------
                            November    August       May  February  November
                             30 2007  31, 2007  31, 2007  28, 2007  30, 2006
                         ----------------------------------------------------
    Loss for the period
     (US$000)                  1.020     1.888     2.971     1.886     2.289
    Net loss per common
     share (US$)                0.01      0.02      0.03      0.02      0.02


                              August       May  February  November
                            31, 2006  31, 2006  28, 2006  30, 2005
    -------------------------------------------------------------------------
    Loss for the period
     (US$000)                    952     1.911     2.701       714
    Net loss per common
     share (US$)                0.02      0.03      0.05      0.02

    

    The Company does not generate revenue and expenditure is related to the
administration expenditure required to manage the exploration activities of
the Company. During the quarter ended November 30, 2006, there was additional
expenditure specific to the Company's listing.

    Results of Operations

    Quarter ended November 30, 2007 compared to the quarter ended
    November 30, 2006

    There was no revenue in either quarter and the Company has no revenue
generating operations or mineral production. Interest income of
US$0.69 million was recorded in the quarter ended November 30, 2007 compared
to US$0.44 million in the quarter ended November 30, 2006.
    The loss for the quarter ended November 30, 2007 was US$1.02 million
compared with US$2.29 million in the quarter ended November 30, 2006.
    Administrative expenses totaled US$1.72 million for the quarter ended
November 30, 2007, compared to the corresponding prior year quarter amount of
US$2.61 million. There was a foreign exchange gain of US$0.65 million in the
third quarter ended November 30, 2007 compared with a foreign exchange loss of
US$0.52 million in the corresponding prior year quarter ended November 30,
2006.
    A total of US$1.45 million of deferred exploration expenditures was
capitalized in the quarter ended November 30, 2007 compared with
US$1.34 million in the quarter ended November 30, 2006.

    Nine months ended November 30, 2007 compared to the nine months ended
    November 30, 2006

    There was no revenue in either period and the Company has no revenue
generating operations or mineral production. Interest income of
US$2.06 million was recorded in the 9 months ended November 30, 2007 compared
to US$0.67 million in the nine months ended November 30, 2006.
    The loss for the nine months ended November 30, 2007 was US$5.88 million
compared with US$5.15 million in the nine months ended November 30, 2006.
    Administrative expenses totaled US$8.02 million for the nine months ended
November 30, 2007 compared to the corresponding prior year nine months amount
of US$5.64 million. The largest expense was an amount of US$2.25 million as a
result of an increase in management and consulting fees due to the employment
of additional expertise to assist in the transformation of the company from
exploration to development. There was a foreign exchange gain of
US$0.62 million in the first nine months compared with a foreign exchange loss
of US$0.01 million in the corresponding prior year nine months ended November
30, 2006. The increase in office expenditure and professional fees are mainly
as a result of the Company's dual listings on the TSX and on the AIM, and an
increase in staffing and office accommodation costs, inherent with the
Company's growth.
    A total of US$5.07 million of deferred exploration expenditures was
capitalized in the nine months ended November 30, 2007 compared with
US$5.55 million in the prior year corresponding nine months.

    Results of Operations by Project

    In the quarter ended November 30, 2007, the Company spent US$1.45 million
on exploration expenditures. Of this, 26% was spent on the Pilanesberg
Project, 52% was spent on M'Phatlele and 10% was spent on the Grootboom
Project. Other projects accounted for 12% of the total exploration
expenditure. A summary of the expenditures by project along with proposed
programs is set forth below.

    Pilanesberg Project

    Exploration activity and drilling at the Pilanesberg Project has been
ongoing since 2002 resulting in advancing the Mineral Resource to a stage
where a Definitive Feasibility Study could be conducted on two of the
properties comprising the Pilanesberg Project. The total exploration
expenditure for the quarter ended November 30, 2007 was US$0.42 million,
bringing the Company's total expenditures since inception on this project to
US$16.52 million.
    In the 2007 fiscal year, the Company upgraded the resources and completed
a Definitive Feasibility Study on the Tuschenkomst and Ruighoek Properties.
Further earlier stage exploration remained ongoing on several of the other
properties comprising the Pilanesberg Project. In addition four of the
properties were transferred into a special purpose vehicle "Pilanesberg
Platinum Mines" which then made application for a Mining Right covering
Tuschenkomst, Witkleifontein, Rooderand (Portion3) and Ruighoek (various
portions). In addition to general exploration, significant expenditure has
also been incurred on the Definitive Feasibility Study (DFS). The summarized
results of the DFS are presented below:

    The positive results of the Pilanesberg Project Feasibility Study ("FS")
confirm a robust project. Platmin's Board of Directors has given approval to
proceed with the development of the project.

    DFS completed by SRK Consulting ("SRK"), based on Proven and Probable PGE
Mineral Reserves totalling 4.4 million ounces ("Moz") of 3PGEs + Au (3.2 Moz
attributable to Platmin).

    Life of Mine ("LoM") 16 years with production planned to commence early
2009 with an average production rate of 250,000 oz/year 3PGE+Au in concentrate
for the first 11 years.

    Base Case Internal Rate of Return ("IRR") of 21.7% in real terms and
31.3% in nominal terms (ungeared after tax).

    Base Case Net Present Value at an 8% real discount rate (ungeared after
tax) ("NPV (8%)") of ZAR1.82 billion (US$260 million).

    Payback period on capital of 2.5 years following first production.

    Average operating margin of 46% over LoM.

    The presence of Ruthenium and Iridium in ores and concentrates which will
be co-produced with the 3PGEs has the potential to improve project values,
positively affecting the IRR and NPV of the project.
    Engineering firm Dowding Reynard and Associates ("DRA") has been
appointed to implement the design and construction phase of the project.
    Some of the properties comprising the Pilanesberg Project have shallow
underground mining potential between 150m to 500m below surface which will be
targeted in later phases of exploration once opencast mining has exposed the
ore bodies sufficiently to evaluate the potential of underground mining. 
Early stage exploration remains ongoing on many of the other properties
comprising the Pilanesberg project.

    Work Program

    The civil construction of the plant commenced in October 2007 and as at
November 30th 2007 the plant construction was 10% complete, with 100% to be
completed by mid 2008.
    Platmin also plans to conduct further exploration in the Pilanesberg
Project area focusing on: advancing earlier stage properties, through programs
of soil sampling, trenching and ultimately drilling; and exploration of new
areas which are currently under application.
    Platmin is also actively looking at potential acquisition opportunities
in the vicinity of the Pilanesberg Project that could add resources and
further extend the life of planned mining operations.

    M'Phatlele Project

    In the quarter ended November 30, 2007, a total of US$0.77 million was
spent on the M'Phatlele project, bringing the cumulative amount of
expenditures on the project by the Company to US$6.48 million, other than
acquisition costs.
    The budget for M'Phatlele in the 2008 fiscal year is US$8.01 million. The
priority aspects of the work for the 2008 fiscal year includes drilling to
further evaluate the Merensky Reef and UG2 Chromitite Layer to depths of 
1500m aiming at increasing the Inferred Mineral Resource base, as well as
shallow infill drilling of the Merensky Reef on the eastern side of the
property and further drilling targeting the UG2 at depths of approximately
750m (Merensky Reef at approximately 550m) with a view to upgrading further
portions of the Inferred Mineral Resource to the Indicated category.
    Platmin recently announced a revised Mineral Resource for the M'Phatlele
project on the basis of drilling down to 1000m on the UG2 Chromitite Layer.
The revised estimate by SRK consulting upgraded 45.5% of the Mineral Resource
into the Indicated category. Total Mineral Resources are now as follows;  
Indicated Mineral Resources of 34.87Mt at 5.07g/t (3PGE+Au) for 5.69 Moz
(3.09Moz attributable to Platmin) and Inferred Mineral Resources of 48.58Mt at
4.37g/t (3PGE+Au) for 6.82Moz. (3.70Moz attributable to Platmin). The revised
Mineral Resource estimate forms the basis for the Pre-Feasibility Study
currently underway with SRK consulting.
    The largest expenditure in the 2008 fiscal year is expected to be
activities related to the feasibility study including metallurgical test work,
and revision of resource models to include mining dilution (various
scenarios), geotechnical investigations and the environmental impact
assessment/management program.

    Work Program

    Platmin has completed the drilling program down to 1000m. The results of
this drilling along with the assay results have allowed for re-modeling of the
Merensky Reef and UG2 Chromitite Layer as well as an upgrade of the mineral
resource. Drilling to 1500m level is in progress and is expected to be
completed early in 2008. Further shallow infill drilling is currently being
conducted on the Merensky Reef. A pre-feasibility study to assess all aspects
of mining the M'Phatlele resource down to about 500m is currently in progress
and is expected to be completed in the second quarter 2009.
    The Mining Right application has been submitted on 12 December 2007, and
has been accepted by the DME.

    Grootboom Project

    In the quarter ended November 30, 2007, the Company spent US$0.16 million
on Grootboom and Annex Grootboom, bringing the expenditure for the project to
date to US$2.31 million.
    The Company has recently completed a positive scoping study for the
Grootboom Project, and is now progressing with a pre-feasibility study to
assess the potential for designing and constructing a stand alone operation
producing 86,000oz PGMs per year.
    A prospecting program involving refinement of the density and 6PGE Nis
analysis of the material on the Grootboom Tailings Dam has been completed. A
revised Mineral Resource estimate is due to follow. Flotation test-work has
been completed and plant design for the processing of the tailings is at an
advanced stage.
    Mining Right Applications for both the Grootboom UG2 and Grootboom
Tailings Projects have been submitted in November 2007 and have been accepted.

    Work Program

    Platmin plans to undertake the following work program on the Grootboom
Project:

    Completion of the Pre-feasibility study is expected in the first quarter
of 2009. The Scoping stage of the Environmental Impact Assessment is expected
to be completed by December 2007. Further bench scale metallurgical and
geotechnical test work on the Annex Grootboom property is planned as part of
the inputs into the Pre-feasibility study. Infill drilling in the Grootboom
Valley Resource area to firm up on the geological model, prior to proceeding
to detailed mine planning is currently in progress and expected to be complete
by early 2008. (2500m of diamond drilling is planned).
    The DME has granted The Company permission to take a bulk sample for
trial mining and metallurgical test work from Grootboom Hill. Road building to
the bulk sample portal site is expected to commence in February 2008.

    Loskop Project

    Lonmin is the operator of the Loskop Project and funds all exploration
expenditures on the project (except for a portion of Rietfontein as mentioned
below) as part of their option to acquire 50% in the joint venture. Limited
expenditure has been incurred by Platmin as a result of this. A total of
approximately US$0.03 million was spent by Platmin on the Loskop Project
during the quarter ended November 30, 2007 versus US$0.05 million during the
same period in the prior fiscal year. The Company has spent US$0.48 million to
November 30, 2007 on this project. The Company has budgeted US$4.05 million,
which includes a pre-feasibility study and bulk sampling over and above the
payment of option moneys paid, for contributing to exploration expenses in the
current fiscal year. Lonmin has completed its earn-in on Rietfontein, which
has resulted in the formation of the first joint venture.

    Work Program

    Future expenditure on a portion of the Loskop project called the
"Rietfontein JV" or "first joint venture" will fall into a JV whereby the
Company (through Boynton) and Lonmin will contribute on a 50/50 basis. The
remainder of the project is solely funded by Lonmin. The proposed work program
on the Rietfontein JV involves the geological modeling and resource estimation
as well as an evaluation of the scoping study. The decision to proceed with a
pre-feasibility study will be made by Quarter 1 2008. Earlier stage
exploration will continue on the remainder of the Loskop Project area and will
include drilling, evaluation of existing data and resource estimation where
appropriate. A revised resource estimate is to be done on the Rietfontein and
De Wagendrift properties by mid 2008.

    Other Projects

    Platmin is also active with exploration on several other projects other
than its four Key Projects. Current activities include - Drilling on Golden
Valley, a satellite to the Bushveld Complex where a low grade Ni_Cu_PGE
resource has previously been reported from disseminated sulphides towards the
base of a small mafic/ultramafic intrusion. Soil surveys are in progress on
the TDK Project which comprises the farms Tweelaagte 175 JP, Diamant 206 JP
and Kleingenoeg 174 JP all located close to the Pilanesberg Project.
Reconnaissance work is underway on the Bashoek Project (Paul Bodenstein
Landgoed 579 JQ), Rietfontein 338JQ, Strydfontein 12 JP and Malope Dome
Project (Nootigezien 761 KS and Goedverwacht 763 KS). These projects are
located on and around the Bushveld Complex.

    Liquidity and Capital Resources

    As at November 30, 2007, the Company had cash and cash equivalents of
US$28.08 million on hand, as compared with US$43.41 million at February 28,
2007. The Company finances its exploration and development activities by
raising capital from equity markets and through contributions by joint venture
partners.
    During the quarter ended November 30, 2007, a total of 3,667,500 options
were exercised under the company's share incentive scheme, using the cashless
option, resulting in the issue of 2,859,933 common shares. A Further 300,000
options were exercised under the company's share incentive scheme, at an
average of US$0.63 per share, raising US$189,000 resulting in the issue of
300,000 common shares.
    As at November 30, 2007, the Company had 99,534,871 common shares in
issue.
    The Company also had 2,990,000 exercisable share options out of the
3,615,000 options outstanding in the Company's share option incentive scheme,
which, if exercised, in full, would raise US$3,559,375 through the issuance of
an additional 2,990,000 common shares.
    The Company's principal subsidiary, Boynton, operates in South Africa and
as a result is subject to the South African Reserve Bank ("SARB") exchange
control regulations. Loans from Platmin to Boynton, which amounted to
US$56 million at November 30, 2007, and the interest rate charged require SARB
approval. Repayment of loans also requires approval which is normally not
allowed within six months of advancing the loan.
    Thin capitalization rules are also applied by the South African Revenue
Services ("SARS") that restricts the amount of borrowings that could attract
interest to three times the shareholders' capital. Interest paid in excess of
this amount is deemed to be dividends and attracts secondary tax on companies
at 12.5% of the "dividends" paid.
    The Company's principal requirements for cash over the next six months
will be deferred exploration expenditures and expenditures related to
preparation for the construction of the Company's commencement of mining
operations on its Pilanesberg Project.
    Project financing proposals for the Pilanesberg project are currently
underway with Standard Bank of South Africa, having been appointed the lead
Arranger and Project Financier, to raise US$200 million in senior Project
debt.
    The Company has also successfully entered into an underwriting agreement
with a syndicate of underwriters, to purchase 9,500,000 common shares at a
price of Cdn$8.50 per share, to raise gross proceeds of Cdn$80,750,000. The
net proceeds will be used principally to advance the development of the
Company's Pilanesberg project. The offering closed on December 6, 2007 and the
proceeds, net of Brokers commission, of Cnd$74,283,540 were received on
December 6, 2007.
    The over-allotment option has been exercised in full which resulted in
the issuance of an additional 1,425,000 common shares at an exercise price of
Cdn$8.50 per share, for gross proceeds of Cdn$12,112,500. The offering closed
on December 6, 2007 and the proceeds, net of Brokers commission, of
Cnd$11,506,860 for the over-allotment, were received on December 21, 2007.
    The number of common shares in issue will increase to 110,459,871 common
shares, after taking the above into account.
    The construction of, and commencement of production from, the Pilanesberg
Project, as well as the M'Phatlele Project and Grootboom Project, will require
that the Company raise additional funds through debt and equity issuances. The
estimated amount of such additional financing is currently being assessed and
an announcement on the raising of funds will be made shortly.
    Funding requirements for Platmin's projects have historically been
satisfied through the advance of shareholders' loans (normally requested by
way of cash calls) or subscription for shares (rights issues to shareholders).
The shareholders' agreements or joint venture agreements of Platmin's
subsidiaries also generally make provision for the Board of each relevant
company to seek finance on behalf of each company, although this has not been
utilized to date.
    Should Platmin's Black Economic Empowerment (BEE) partners not fund their
requirements in the future, Platmin would consider available alternatives,
including funding the requirements in the near to medium term by way of
inter-company loans, equity (which would dilute such BEE partners), or
potentially seeking to replace its BEE partners. Funding may also be provided
by way of inter-company loans from Platmin to its BEE partners directly, which
would then allow the BEE partners to utilize such funding to contribute in its
own capacity towards a cash call. In such event, funding contributions by BEE
partners (although funded by Platmin) would be treated either as equity or
booked to the loan account between the joint venture entity and Company.
    Platmin has funded a total of approximately US$14.70 million on behalf of
its BEE partners, relating to funds raised by way of cash calls of its
subsidiaries, by way of loan accounts, over the last two fiscal periods (years
ended February 28, 2007 and February 28, 2006) and to date. All such amounts
remain in inter-company loan accounts.

    Off-Balance Sheet Arrangements

    The Company has not entered into any off-balance sheet transactions.

    Related Party Transactions

    During the fiscal year, the Company has provided a bridging finance
facility to Moepi Capital (now Moepi Platinum) to assist the BEE party in
acquiring an interest in Boynton Investments and in the process, to
consolidate the BEE interest in the Group.

    Proposed Transactions

    The Company is continually reviewing merger, acquisition, investment and
joint venture transactions and opportunities with the goal to enhance
shareholder value. This is typical practice in the mineral exploration and
development industry.
    At the current time there are no reportable proposed transactions.

    BEE

    During the fiscal year ended February 28, 2007, the Company's subsidiary,
Boynton, entered into two agreements whereby the effective holding of the
Company in Boynton would reduce from 82% to 73.7% while Boynton's
participation in two projects would increase. Although the outcome is
balanced, this transaction served to simplify the title to the projects and
the relationship with the Company's BEE partners. As mentioned above under the
Grootboom Project, Boynton completed a transaction previously entered into
granting it an option to acquire the mining rights in respect of the Annex
Grootboom property adjacent to the Grootboom Project and Scheiding nearby the
M'Phatlele Project upon completion of a bankable feasibility study.
    Platmin has achieved the minimum 26% BEE ownership interest (required by
April 30, 2014 onward) when the Department of Minerals and Energy approved an
agreement to consolidate the Pilanesberg Project ownership structure. Through
this transaction, Boynton issued 8% of its own shares for all the shares in
Taung Minerals that it did not yet own, increasing its effective holding from
54% to 100%. Taung Minerals is the vehicle that held the mineral rights to
Tuschenkomst and Ruighoek properties.

    Critical Accounting Estimates

    The Company's significant accounting principles and methods of
application are disclosed in note 3 of the Company's consolidated financial
statements for the year ended February 28, 2007. The following is a discussion
of the critical accounting policies and estimates which management believes
are important for an understanding of the Company's financial results.

    "Exploration and development costs" - The costs relating to the
acquisition, exploration and development of mineral properties, less
recoveries, are capitalized by property until the commencement of commercial
production. If commercially profitable ore reserves are developed, capitalized
costs of the related project are reclassified as mining assets and amortized
on a unit of production method. If it is determined that capitalized
acquisition, exploration and development costs are not recoverable over the
estimated life of the property, or the project is sold or abandoned, the
project is written down to its net realizable value.
    The recoverability of amounts recorded for exploration and development
costs is dependent upon the discovery of economically recoverable reserves,
the ability of the Company to obtain the necessary financing to complete the
exploration and development, and future profitable production or proceeds from
the disposition thereof. The amounts shown as exploration and development
costs do not necessarily represent present or future values.
    As at November 30, 2007, the Company had capitalized US$26.58 million of
exploration and development costs. The comparative figure as at February 28,
2007 was US$21.50 million.

    "Stock Based Compensation" - The Company recognizes compensation expense
when stock options are granted. The fair value of options granted has been
estimated at the date of grant using the Black-Scholes option pricing model
with the following weighted average assumptions:

    Options issued prior to June 1, 2007: risk free interest rate of 3.5%,
    expected dividend yield of nil, expected volatility of 100%, and expected
    option life of 3.5 years.

    Options issued subsequent to June 1, 2007, but prior to November 30,
    2007: risk free interest rate of 4.5%, expected dividend yield of nil,
    expected volatility of 66%, based on the volatility of the Platmin share
    price, and expected option life of 3 years.

    The estimated fair value of the options is expensed over the options'
vesting periods. The full impact of the expense relating to all stock options
granted to employees has been included in the consolidated statement of
operations, deficit and comprehensive loss, for the quarters ended November
30, 2007 and August 31, 2007, amounted to US$0.42 million, prior quarter
US$0.63 million, respectively.
    The factors affecting stock-based compensation include estimates of when
stock options might be exercised and the stock price volatility. The timing
for exercise of options is out of the Company's control and will depend, among
other things, upon a variety of factors including the market value of Company
shares and financial objectives of the holders of these options.

    "Recent changes in accounting policies and initial adoption." - In
January 2005, the Canadian Institute of Chartered Accountants ("CICA") issued
Handbook Sections 3855, "Financial Instruments - Recognition and Measurement",
1530, "Comprehensive Income", and 3865, "Hedges". These new standards are
effective for interim and annual financial statements relating to fiscal years
commencing on or after October 1, 2006 on a prospective basis. The Company has
adopted these new standards effective March 1, 2007.
    The Company has evaluated the impact of these new standards on its
consolidated financial statements and determined that no adjustments are
currently required.

    Financial Instrument and Other Instruments

    The only financial instruments which the Company has are cash and cash
equivalents, other receivables, accounts payable and accrued liabilities which
are short-term financials instruments whose fair value approximates their
carrying value given that their maturity period is short.

    Outstanding Share Data

    Platmin has an unlimited number of common shares without par value. At
November 30, 2007, there were 99,534,871 common shares outstanding.
    Platmin has outstanding stock options and warrants to purchase common
shares. As at November 30, 2007, there were 2,990,000 outstanding options
exercisable for common shares. As at November 30, 2007, there were a further
625,000 share options which have not vested, which, if exercised, would result
in the issue of an additional 625,000 common shares. The total options
outstanding at November 30, 2007, totaled 3,615,000 options.
    As at November 30, 2007, there were no more warrants outstanding.
    The Company has also successfully entered into an underwriting agreement
with a syndicate of underwriters, to purchase 9,500,000 common shares at a
price of Cdn$8.50 per share, to raise gross proceeds of Cdn$80,750,000. The
net proceeds will be used principally to advance the development of the
Company's Pilanesberg project. The offering closed on December 6, 2007 and the
proceeds, net of Brokers commission, of US$78,619,632 were received on
December 6, 2007.
    The over-allotment option has been exercised in full which resulted in
the issuance of an additional 1,425,000 common shares at an exercise price of
Cdn$8.50 per share, for gross proceeds of Cdn$12,112,500. This brings the
gross proceeds raised in the offering to approximately Cdn$92,862,500.
    This increases the number of common shares in issue to 110,459,871 after
taking the above into account.

    Risks and Uncertainties

    The Company is in the business of exploration and development of mineral
properties with the objective of commercial production of the properties
directly or through third parties. There are numerous risks associated with
this business and specific risks with regards to the South African mining
environment.
    On May 1, 2004, the Mineral and Petroleum Resources Development Act
("MPRDA") came into effect in South Africa. As a result of the MPRDA, the
state has become the custodian of all mineral rights within the country and
will issue prospecting and mining rights to parties on application.
    Rights held as at May 1, 2004 are known as "old order" rights and must be
lodged for conversion into "new order" rights within a transition period being
two years from May 1, 2004 for old order prospecting rights and five years
from May 1, 2004 for old order mining rights. All 15 of the Company's old
order prospecting rights have been successfully converted into new order
rights, on its four most advanced projects.
    Although the Company has taken steps to verify title to mineral
properties in which it has an interest, in accordance with industry standards
for the current stage of exploration of such properties, these procedures do
not guarantee the Company's title. Property title may be subject to
unregistered prior agreements and non-compliance with regulatory requirements.
    Readers are urged to review the section titled "Risk Factors" appearing
in Platmin's previously filed prospectus and its AIF for the financial year
ended February 28, 2007, which can be viewed at www.sedar.com.

    Internal control over financial reporting

    Management is responsible for establishing and maintaining an adequate
system of internal control over financial reporting. It has directed efforts
to improve internal control over financial reporting. This is a process
designed to provide reasonable assurance regarding reliability of financial
reporting and the preparation of consolidated financial statements for
external reporting purposes in accordance with Canadian GAAP. Because of its
inherent limitations, internal control over financial reporting may not
prevent or detect misstatements. Management has assessed the effectiveness of
the Company's internal control over financial reporting and concluded that the
Company's internal control over financial reporting was effective as of the
end of the financial year ended February 28, 2007.

    Environmental Matters

    The Company conducts exploration on its key projects and prospects
subject to mineral exploration permit applications made to and issued by the
DME. For each exploration program, a plan of rehabilitation is included with
the application and where required the appropriate bond or funds are lodged
with the relevant agent of the DME in respect of the rehabilitation work which
may have to be carried out when the exploration program is completed and no
further work is planned on the property. All such environmental plans or bonds
are in the normal course of the business. The Company has placed a separate
environmental bond with the DME of US$0.49 million in respect of
rehabilitation of the bulk sample test conducted on its Pilanesberg project.
Depending on the outcome of this bulk test and the recommended sequence of
further work, this bond may be converted into further bonds to be issued for
on-going development work on the project.
    On August 31, 2007 the Pilanesberg Independent Technical Report for the
Positive Pilanesberg Feasibility was filed. The DME required a rehabilitation
guarantee of $7,026,901 before approving the application for a mining right.
This guarantee was provided on September 12, 2007. This guarantee consists of
an insured underlying guarantee issued by a short term insurance company which
requires an annual investment insurance premium of US$ 651,621 for each of 3
years. The first premium of US$ 651,621 is reflected as the rehabilitation
investment.

    

                               Platmin Limited

                 Unaudited Consolidated Financial Statements
         For the Three and Nine month Periods ended November 30, 2007
             (expressed in U.S. dollars, unless otherwise stated)


                         (a development stage entity)




    Consolidated Balance Sheets
    -------------------------------------------------------------------------

                                                   --------------------------
                                                   November 30,  February 28,
                                                           2007          2007
                                                          $ 000         $ 000

    Assets

    Current assets
    Cash and cash equivalents                           28,078        43,408
    Restricted cash (note 4)                             1,590             -
    Loans due from related parties (note 5)             14,701        13,552
    Receivables                                          1,598           418
    Prepaid expenses                                         5            68
                                                   --------------------------
                                                        45,972        57,446

    Property, plant and equipment (note 7)               8,993           785

    Rehabilitation investment (note 15)                    652             -

    Mineral rights (note 9)                              1,108         1,108

    Mineral exploration properties (note 10)             4,619         4,619

    Deferred exploration expenses (note 10)             26,576        21,503
                                                   --------------------------
                                                        87,920        85,461
                                                   --------------------------
                                                   --------------------------


    Liabilities

    Current liabilities
    Accounts payable                                     5,840         3,221
    Accrued liabilities                                      -           155
                                                   --------------------------
                                                         5,840         3,376

    Loan payable (note 14)                               1,452           659

    Asset retirement obligation (note 7)                   493           493
                                                   --------------------------
                                                         7,785         4,528
                                                   --------------------------

    Shareholders' Equity

    Common shares (note 11)                            104,254        99,542

    Contributed surplus (note 11)                        2,849         2,480

    Deficit                                            (26,968)      (21,089)
                                                   --------------------------
                                                        80,135        80,933
                                                   --------------------------
                                                        87,920        85,461
                                                   --------------------------
                                                   --------------------------
    Contingencies and commitments (note 17)



    Consolidated Statements of Operations, Deficit and Comprehensive Loss
    -------------------------------------------------------------------------


                                  Three months ended       Nine months ended
                                      November 30             November 30
                                    2007        2006        2007        2006
                                   $ 000       $ 000       $ 000       $ 000

    Administrative
     expenses
    Management and
     consulting fees               1,707       1,622       7,021       4,313
    Travelling and
     promotion                       110          69         283         205
    Rental                            46          19         135          53
    Office                           373         285         844         689
    Professional fees                 35          62         173         218
    Interest                          65           -         128          50
    Amortization of
     property, plant and
     equipment                        26          34          55          98
    Foreign exchange
     (gain)/loss                    (646)        518        (615)         14
                             ------------------------------------------------
                                  (1,716)     (2,609)     (8,024)     (5,640)

    Research and development
     costs                             -        (117)         82        (169)

    Deferred exploration
     costs written off                 -           -          (4)        (47)
                             ------------------------------------------------
                                  (1,716)     (2,726)     (7,946)     (5,856)

    Other income                       5          (2)          5          39
    Interest income                  691         439       2,062         665
                             ------------------------------------------------

    Loss and comprehensive
     loss for the period          (1,020)     (2,289)     (5,879)     (5,152)

    Deficit - Beginning
     of period                   (25,948)    (16,914)    (21,089)    (14,051)
                             ------------------------------------------------
    Deficit - End of period      (26,968)    (19,203)    (26,968)    (19,203)
                             ------------------------------------------------
                             ------------------------------------------------

    Basic and diluted loss
     per common share
     (note 8)                       0.01        0.02        0.06        0.07

    Weighted average number
     of common shares         97,676,177  91,744,644  95,535,694  71,453,980




    Consolidated Statements of Cash Flows
    -------------------------------------------------------------------------

                                  Three months ended       Nine months ended
                                      November 30             November 30
                                    2007        2006        2007        2006
                                   $ 000       $ 000       $ 000       $ 000

    Cash provided by/
     (used in)

    Operating activities
    Loss for the period           (1,020)     (2,289)     (5,879)     (5,152)
    Non-cash items
      Amortization of property,
       plant and equipment            26          34          55          98
      Loss on sale of property,
       plant and equipment             -           2           6           -
      Stock-based compensation
       expense                       420         375       1,818       1,528
      Foreign exchange gain         (646)          -        (615)          -
    Changes in non-cash
     working capital items
     (note 6)                      2,464         331       1,347       2,017
                             ------------------------------------------------
                                   1,244      (1,547)     (3,268)     (1,509)
                             ------------------------------------------------

    Investing activities
    Purchase of property,
     plant and equipment          (6,749)         (4)     (8,239)       (112)
    Proceeds from disposal
     of property, plant and
     equipment                         -           4          15          10
    Increase in restricted
     cash                            (59)          -      (1,590)          -
    Increase in rehabilitation
     investment                     (652)          -        (652)          -
    Increase in deferred
     exploration expenses         (1,450)     (1,336)     (5,073)     (5,546)
                             ------------------------------------------------
                                  (8,910)     (1,336)    (15,539)     (5,648)
                             ------------------------------------------------

    Financing activities
    Increase in loan
     receivable                     (197)     (8,863)     (1,149)     (8,944)
    Increase in loan payable         299           -         793           -
    Issue of common shares           189       1,695       3,264      51,976
    Share issue expenses               -         (85)          -      (5,824)
                             ------------------------------------------------
                                     291      (7,253)      2,908      37,208
                             ------------------------------------------------

    Net increase/(decrease)
     in cash and cash
     equivalents during
     the period                   (7,375)    (10,136)    (15,899)     30,051

    Effect of exchange rate
     changes on cash held in
     foreign currencies              645                     569

    Cash and cash equivalents
     - Beginning of period        34,808      60,122      43,408      19,935
                             ------------------------------------------------
    Cash and cash equivalents
     - End of period              28,078      49,986      28,078      49,986
                             ------------------------------------------------

    Supplementary information
    Interest paid                     65           -         128         165
                             ------------------------------------------------




    Notes to the Consolidated Financial Statements
    -------------------------------------------------------------------------

    1   Nature of operations

    Platmin Limited (the "Company") is a development stage Natural Resources
    Company engaged in the acquisition and exploration of Platinum Group
    Metal ("PGM") properties, which was incorporated under the Canada
    Business Corporation Act on May 23, 2003. These financial statements have
    been prepared using Canadian generally accepted accounting principles
    applicable to a going concern, which contemplates the realization of
    assets and settlement of liabilities in the normal course of business as
    they come due. The Company is in the process of exploring, evaluating and
    developing its mineral properties and projects and has recorded losses
    and net cash outflows from operations for the past two years. The Company
    is also required to make expenditures (as outlined in note 17 to the
    financial statements) in the near term to keep its mineral property
    rights current.

    The Company's ability to advance its exploration properties is dependent
    upon its ability to fund its working capital and exploration requirements
    and eventually to generate positive cash flows, either from operations or
    the sale of a property.

    All 15 of the Company's old order prospecting rights have been
    successfully converted into new order rights under the current South
    African mineral legislation.

    2   Basis of presentation

    These unaudited interim consolidated financial statements should be read
    in conjunction with the Company's audited consolidated financial
    statements and related notes included in the Company's annual report to
    shareholders for the year ended February 28, 2007. These unaudited
    interim consolidated financial statements do not include all disclosure
    requirements of Canadian generally accepted accounting principles for
    annual financial statements, but have been prepared using the same
    accounting policies as included in note 3 of the Company's annual
    financial statements for the year ended February 28, 2007, except for the
    adoption of the new CICA Handbook standards relating to financial
    instruments, comprehensive income, and hedges, as described in note 3
    below.

    3   Summary of significant accounting policies

    Financial Instruments, Comprehensive Income and Hedges

    Cash and cash equivalents, receivables, accounts payable and accrued
    liabilities are short-term financial instruments whose fair values
    approximate their carrying values.

    In January 2005, the CICA issued Handbook Sections 3855, "Financial
    Instruments - Recognition and Measurement", 1530, "Comprehensive Income",
    and 3865, "Hedges". These new standards are effective for interim and
    annual financial statements relating to fiscal years commencing on or
    after October 1, 2006 on a prospective basis. The Company has adopted
    these new standards effective March 1, 2007.

    The Company has evaluated the impact of these new standards on its
    consolidated financial statements and determined that no adjustments are
    currently required.

    4   Restricted cash

    On June 27, 2007 a guarantee of $1,590,146 was provided to Eskom for the
    ordering of the critical long lead time material, to reduce the project
    lead time. This guarantee was issued by ABSA Bank Limited and shall lapse
    after 24 months after the date of issue or on completion of delivery of
    the services contracted for. The restricted cash is accounted for at fair
    value.

    5   Loans due from related parties

                                                   November 30,  February 28,
                                                           2007          2007
                                                          $ 000         $ 000
                                                   ------------  ------------

    Moepi Capital (Pty) Ltd.(1)                         14,487        13,369
    5 Brothers Mining (Pty) Ltd.                             3             3
    Private Preview Investments (Pty) Ltd.                 166           120
    Tafida Investments (Pty) Ltd.                            3             3
    Born Free Investments 144(Pty) Ltd.                      -             4
    Born Free Investments 330(Pty) Ltd.                      -             4
    Keenan Investments (Pty) Ltd.                           42            38
    Dream World Investments (Pty) Ltd                        -             3
    Moepi Resources Limited                                  -             6
    Crowned Cormorant Investments 13 (Pty) Ltd.              -             2
                                                   --------------------------
                                                        14,701        13,552
                                                   --------------------------
                                                   --------------------------

    The above entities are related to the Company through contractual
    arrangements in relation to potential prospecting permit applications.

    These loans, except as identified below, bear no interest and have no
    fixed terms of repayment.

    (1) The loan receivable from Moepi Capital (Pty) Ltd relates to bridging
    finance advanced to Moepi Capital during fiscal 2007. The loan bears
    interest at LIBOR. The repayment of this loan has been extended by one
    year, and the loan is repayable in full on November 1, 2008.

    The shares in Boynton that were acquired by Moepi at the same time as the
    loan are held by Platmin as security for the loan.

    6   Supplementary cash flow information

        Changes in non-cash working capital items are as follows:


                              For the three months        For the Nine months
                                             ended                      ended
                          November 30, November 30, November 30, November 30,
                                  2007         2006         2007         2006
                                 $ 000        $ 000        $ 000        $ 000
                          ---------------------------------------------------

    Receivables                (1,051)          68       (1,180)         219
    Prepaid expenses               71           (2)          63          331
    Accounts payable            3,528          167        2,619        1,355
    Accrued liabilities           (84)          98         (155)         110
                          ---------------------------------------------------
    Increase                    2,464          331        1,347        2,017
                          ---------------------------------------------------

    7   Property, plant and equipment
                                                            November 30, 2007
                          ---------------------------------------------------
                          ---------------------------------------------------
                                               Cost  Accumulated          Net
                                                    amortization
                                              $ 000        $ 000        $ 000
                          ---------------------------------------------------
    Vehicles                                   355          138          217
    Computer equipment                         193          133           60
    Computer software                           90           63           27
    Office equipment                            30           15           15
    Furniture and fittings                      96           24           72
    Other equipment                             16           13            3
    Leasehold Improvements                      85           11           74
    Plant Construction                       8,032            -        8,032
    Rehabilitation asset                       493            -          493
                          ---------------------------------------------------
                                             9,390          397        8,993
                          ---------------------------------------------------
                          ---------------------------------------------------

                                                            February 28, 2007
                          ---------------------------------------------------
                          ---------------------------------------------------
                                               Cost  Accumulated          Net
                                                    amortization
                                              $ 000        $ 000        $ 000
                          ---------------------------------------------------
    Vehicles                                   353          154          199
    Computer equipment                         175          118           57
    Computer software                           58           52            6
    Office equipment                            22           13            9
    Furniture and fittings                      36           18           18
    Other equipment                             14           11            3
    Rehabilitation asset                       493            -          493
                          ---------------------------------------------------
                                             1,151          366          785
                          ---------------------------------------------------
                          ---------------------------------------------------

    The DME required a guarantee of $493,325 before approving the application
    for a bulk sample. The full amount has been provided for in fiscal 2007.
    The final retirement obligation will only be established on completion of
    the bankable feasibility study, and would be provided for once
    construction has commenced.

    8   Loss per share

    Basic loss per share is calculated by dividing the net loss attributable
    to shareholders by the weighted average number of common shares
    outstanding during the period.

                              For the three months        For the Nine months
                                             ended                      ended
                          November 30, November 30, November 30, November 30,
                                  2007         2006         2007         2006
                                 $ 000        $ 000        $ 000        $ 000

    Loss attributable
     to shareholders
     ($000)                     1,020        2,289        5,879        5,152
    Weighted average
     number of common
     shares                97,676,177   91,744,644   95,535,694   71,453,980
                          ---------------------------------------------------
    Basic and diluted
     loss per common
     share in US$ per
     share                       0.01         0.02         0.06         0.07
                          ---------------------------------------------------
                          ---------------------------------------------------

    On August 10, 2006, the Company converted preferred shares into common
    shares and implemented a ten-for-one split of its common shares. The
    split is reflected as if it took place at the beginning of all reporting
    periods presented.

    As the Company is reporting a loss for all periods presented and all
    potential common shares are anti-dilutive, diluted loss per share equals
    basic loss per share. There are no other securities with potential
    dilutive effect as at November 30, 2007 other than the outstanding
    options described in note 12.

    9   Mineral rights

                                                   November 30,  February 28,
                                                           2007          2007
                                                          $ 000         $ 000
                                                   ------------  ------------

    Balance - beginning and end of period                1,108         1,108
                                                   ------------  ------------
                                                   ------------  ------------

    Boynton is the registered owner of an undivided share of all mineral
    rights (excluding chrome) in respect of certain portions of the property
    known as Vogelstruisnek 173, Registration Division J.P., North West
    Province and of all mineral rights (excluding chrome) over certain
    portions of the farm, Ruighoek 169, Registration Division J.P., North
    West Province.

    Both of these properties form part of the Pilanesberg project and the new
    order prospecting rights have been granted in terms of the MPRDA.

    10  Mineral exploration properties and deferred exploration expenses

        Mineral exploration properties
         - Acquisition cost                        November 30,  February 28,
                                                          2007          2007
                                                   --------------------------
        Balance brought forward and carried
         forward                                         4,619         4,619
                                                   --------------------------
                                                   --------------------------

        Deferred exploration expenses              November 30,  February 28,
                                                          2007          2007
                                                   --------------------------
        Balance brought forward                         21,503        13,787
        Additions                                        5,073         8,260
        Revenue credited                                     -          (544)
                                                   --------------------------
        Balance carried forward                         26,576        21,503
                                                   --------------------------
                                                   --------------------------


    The acquisition cost and deferred exploration expenses by project are set
    out as follows:

                              November 30, 2007         February 28, 2007
                          ------------------------  -------------------------
                                          Deferred                  Deferred
                          Acquisition  exploration  Acquisition  exploration
                                 cost     expenses         cost     expenses
                                $ 000        $ 000        $ 000        $ 000
                          ------------------------  -------------------------
    Pilanesberg project
      Tuschenkomst                 25        9,074           25        7,833
      Witkleifontein                -        1,875            -        1,665
      Rooderand                     -        1,421            -        1,148
      Ruighoek                      -        3,480            -        3,067
      Vogelstruisnek                -           56            -           50
      Bakhoutrantje                 -           47            -           30
      Palmietfontein                -          532            -          531
      Rietfontein 380JS             -           32            -            -
    M'Phatlele project          3,055        6,475        3,055        4,181
    Grootboom project
      Grootboom                 1,514        1,747        1,514        1,469
      Grootboom Tailings            -           65            -           42
      Annex                         -          495            -          454
    Loskop project
      Loskop 2                      -          481            -          388
      Rietfontein 70JS              -            6            -           33
    Golden Valley                   -          150            -           59
    Oorlogsfontein                  -           84            -           84
    Apiesboomen                     -           37            -           94
    Woolrich area 2                 -            3            -            3
    Woolrich area 3                 -            3            -            3
    Woolrich area 4                 -            2            -            2
    Veeplaats                       -           14            -           10
    Vogelenzang                     -           75            -           71
    Setseka area                   25            7           25            7
    Defacto area                    -           18            -           16
    Scheiding                       -          227            -          224
    Bashoek                         -            9            -            5
    Tweelaagte, Diamant &
     Kleingenoeg                    -           54            -           34
    Moloena JV (Ruighoek
     (Ptn5) & Vogelstruisnek
     (Ptn2))                        -           86            -            -
      Strydfontein                  -           11            -            -
    Nooitgezien &
     Goedverwagt                    -            4            -            -
                          ------------------------  -------------------------
                                4,619       26,570        4,619       21,503
                          ------------------------  -------------------------
                          ------------------------  -------------------------

    11  Share capital

    (a) Common shares

    An unlimited number of common shares without par value have been
    authorized.

                                                         Number       Amount
                                                      of shares         $000
                                                  -------------  ------------
        Balance, March 1, 2006                        4,866,950       27,286
        Rights Issue                                    733,154       14,663
        Exercise of options                              10,000           62
        Conversion of preferred shares                2,173,000       12,483
                                                  -------------  ------------

        Balance, August 10, 2006 - before
         ten-for-one split                            7,783,104       54,494
                                                  -------------  ------------

        Ten-for-one split                            77,831,040
        Common shares - issued for IPO               11,375,000       40,565
        Over allotment - option under IPO             1,706,250        6,160
        Exercise of options                             873,460          990
        Fair value of options exercised                       -          422
        Fair value of warrants exercised                      -        1,459
        Exercise of warrants                          2,000,000        1,460
        Broker compensation options exercised            17,063           60
        Share issue expenses                                  -       (6,068)
                                                  -------------  ------------
        Balance, February 28, 2007 and
         May 31, 2007                                93,802,813       99,542
                                                  -------------  ------------
                                                  -------------  ------------

        Balance, June 1, 2007                        93,802,813       99,542
        Broker compensation options exercised           767,813        2,913
        Exercise of options                           4,964,245          351
        Fair value of options exercised                       -        1,448
        Share issue expenses                                  -            -
                                                  -------------  ------------
        Balance, November 30, 2007                   99,534,871      104,254
                                                  -------------  ------------
                                                  -------------  ------------

    On January 17, 2006, the Company announced a one-for-nine shares held
    rights issue at $20 per share. The first round closed on February 27,
    2006 and the Company received $11,169,200. During fiscal 2007, the
    Company received $3,493,800 for the second and third rounds of the rights
    issue.  All the shares related to this rights issue were issued during
    fiscal 2007.

    On August 10, 2006, the Company's shares were listed on the Toronto Stock
    Exchange ("TSX") and the Alternative Investment Market of the London
    Stock Exchange ("AIM").  On this day, the 2,173,000 preference shares
    were converted into common shares taking the total common shares prior to
    a ten-for-one split to 7,783,104. These 7,783,104 common shares were then
    subject to a ten-for-one split giving a total of 77,831,040 common shares
    outstanding after the split.

    In the initial public offering on August 10, 2006, 11,375,000 common
    shares were issued. On August 25, 2006, the underwriters exercised the
    over allotment option and the Company issued a further 1,706,250 common
    shares.

    (b) Preferred shares

    An unlimited number of preferred shares have been authorised.

    The preferred shares were converted on August 10, 2006 to common shares
    on a one-for-one basis. They had no preferential rights over the common
    shares other than a preferential right to repayment of capital on
    liquidation.

    (c) Contributed surplus


                                                    November 30, February 28,
                                                           2007         2007
                                                          $ 000        $ 000
                                                  ---------------------------

        Balance - Beginning of period                     2,480        2,147
        Surplus - Vesting of previously issued
         options                                          1,837        2,215
        Surplus - Warrants exercised                          -       (1,460)
        Surplus - Options cancelled                         (20)           -
        Surplus - Options exercised (cash)                 (427)           -
        Surplus - Options exercised (cashless)           (1,021)        (422)
                                                  -------------- ------------
        Balance - End of period                           2,849        2,480
                                                  -------------- ------------

    12  Stock option plan and warrants

    The Board of Directors adopted a resolution dated May 3, 2005, which
    established a stock option plan (the "Plan"), pursuant to which options
    may be granted to directors, officers, employees and persons providing
    ongoing and contract services to the Company. The purpose of the Plan is
    to attract persons by offering to such persons the opportunity to acquire
    (or to increase) an equity interest in the Company through the purchase
    of shares under the Plan. Subject to adjustment made in the case of a
    share split of the issued common shares of the Company, the aggregate
    number of common shares that may be issuable pursuant to options granted
    under the Plan is up to 9% of the outstanding common shares of the
    Company and shall be calculated on an as-needed basis. Prior to the
    establishment of the Plan, options were issued to directors and
    employees, at the discretion of management, to compensate for services
    provided.

    Details of stock options issued under and prior to the Plan, are as
    follows:
                                                                    Weighted
                                                                     average
                                                         Number     exercise
                                                     of options      price $
                                                  -------------  ------------

        Movement during fiscal 2007

        Options outstanding, March 1, 2006              635,128         9.72
        Granted                                         350,000        20.00
        Exercised                                       (10,000)       (6.25)
                                                  --------------
        Options outstanding, November 30, 2006 -
         before the ten-for-one split                   975,128        13.44
                                                  --------------
        Options outstanding, September 1, 2006 -
         after the ten-for-one split                  9,751,280         1.34
        Granted                                         934,876         3.68
        Exercised - compensation options                (17,063)       (3.53)
        Exercised - options                            (873,460)       (1.09)
        Options cancelled - resignations               (160,000)       (1.20)
                                                  --------------
        Options outstanding, February 28, 2007        9,635,633         1.58
                                                  --------------
                                                  --------------
        Options exercisable, February 28, 2007        7,695,313         1.53
                                                  --------------
                                                  --------------

        Movement during fiscal 2008

        Options outstanding, March 1, 2007            9,635,633         1.58
        Granted                                         750,000         6.00
        Exercised - compensation options               (767,813)       (3.79)
        Exercised - options                          (5,962,820)       (1.03)
        Options cancelled - resignations                (40,000)       (0.70)
                                                  --------------
        Options outstanding, November 30, 2007        3,615,000         1.99
                                                  --------------
        Options exercisable, November 30, 2007        2,990,000         1.19
                                                  --------------

    On June 7, 2006, prior to the TSX and AIM listings and the ten-for-one
    split, 10,000 options were exercised at $6.25 per option.

    During the third quarter of fiscal 2007, 30,000 options at $0.63 and
    130,000 options at $1.20 were exercised.

    As part of the listing process, a total of 767,813 compensation options
    at CAD 4.00 were issued to the brokers. On November 24, 2006, 17,063 of
    these broker options were exercised at $3.53.

    During the fourth quarter of fiscal 2007, 10,000 options at $0.20, 50,000
    options at $0.63 and 653,460 options at $1.20 were exercised.

    On June 1, 2007 and August 28, 2007 respectively 600,000 options at $5.74
    and 150,000 options at $7.04 were granted.

    On June 5, 2007 50,000 options at $0.90 were exercised.

    The remaining broker options of 767,813 options were exercised during
    July 2007 at $3.79.

    During July 2007 a total of 605,000 options at $1.20 were exercised. In
    August 2007 a total of 955,320 options at $1.20 were exercised. These
    options were a cashless exercise as per the Plan, calculated on the five
    day average price.

    On August 14, 2007 270,000 options at $0.20 and 100,000 options at $0.63
    were exercised and 15,000 cashless options were exercised at $1.20.

    During September 2007 a total of 300,000 at $0.63 and 62,500 cashless
    options at $1.20 were exercised. In October 2007 a total of 75,000
    options at $3.86 were exercised and in November 2007 30,000 options at
    $5.74 and 3,500,000 options at $2.00 were exercised. These options were a
    cashless exercise as per the Plan, calculated on the five day average
    price.


                                                       Exercise    Number of
    Exercise date                                       price $      options
                                                  ---------------------------
    Options exercised during third quarter
     fiscal 2008

    September 7, 2007                                      0.63      300,000
    September 13, 2007                                     1.20       62,500
    October 18, 2007                                       3.86       75,000
    November 9, 2007                                       5.74       30,000
    November 12, 2007                                      2.00    3,500,000
                                                                  -----------
                                                                   3,967,500
                                                                  -----------
    Options exercised during second quarter
     fiscal 2008

    June 5, 2007                                           0.90       50,000
    July 13, 2007                                          3.79      316,509
    July 20, 2007                                          1.20      140,000
    July 27, 2007                                          1.20      465,000
    July 31, 2007                                          3.79      451,304
    August 8, 2007                                         1.20       75,000
    August 10, 2007                                        1.20      520,320
    August 12, 2007                                        1.20      360,000
    August 14, 2007                                        0.35      385,000
                                                                  -----------
                                                                   2,763,133
                                                                  -----------

                                                       Exercise    Number of
    Exercise date                                       price $      options
                                                  ---------------------------
    Options exercised during fiscal 2007

    June 7, 2006                                           6.25       10,000
    September 20, 2006                                     0.63       30,000
    September 20, 2006                                     1.20       65,000
    October 4, 2006                                        1.20       10,000
    October 31, 2006                                       1.20       55,000
    November 24, 2006                                      3.53       17,063
    December 4, 2006                                       0.20       10,000
    January 22, 2007                                       1.20       75,000
    February 15, 2007                                      1.20      578,460
    February 21, 2007                                      0.63       50,000
                                                                  -----------
                                                                  -----------
                                                                     900,523
                                                                  -----------
                                                                  -----------

    As at November 30, 2007, the following options were exercisable and
    outstanding:

                                 Exercisable                Outstanding
                             ------------------------------------------------
                             Exercise    Number of     Exercise    Number of
    Expiry date               price $      options      price $      options
    -------------------------------------------------------------------------

    February 10, 2008            0.20      800,000         0.20      800,000
    November 3, 2010             1.20      500,000         1.20      500,000
    December 6, 2010             1.20    1,520,000         1.20    1,520,000
    September 18, 2011           3.86            -         3.86       75,000
    June 1, 2012                 5.74      170,000         5.74      570,000
    August 28, 2012              7.04            -         7.04      150,000
                                         ----------                ----------
    Weighted average             1.19    2,990,000         1.99    3,615,000
                                         ----------                ----------
                                         ----------                ----------

    As at February 28, 2007, the following options were exercisable and
    outstanding:

                                 Exercisable                Outstanding
                             ------------------------------------------------
                             Exercise    Number of     Exercise    Number of
    Expiry date               price $      options      price $      options
    -------------------------------------------------------------------------

    September 6, 2007            0.20    1,090,000         0.20    1,090,000
    September 6, 2007            0.63      400,000         0.63      400,000
    August 10, 2007              0.90       50,000         0.90       50,000
    August 10, 2007              3.51      665,437         3.51      665,437
    August 25, 2007              3.51      102,376         3.51      102,376
    November 3, 2010             1.20      500,000         1.20      500,000
    December 6, 2010             1.20    2,262,500         1.20    3,177,820
    April 12, 2011               2.00    2,625,000         2.00    3,500,000
    September 18, 2011           3.86            -         3.86      150,000
                                         ----------                ----------

    Weighted average             1.53    7,695,313         1.58    9,635,633
                                         ----------                ----------
                                         ----------                ----------

    Stock-based compensation expense is reflected in the consolidated
    statements of operations and deficit as follows:

                                                    November 30, February 28,
                                                           2007         2007
                                                           $000         $000
                                                    ------------ ------------

    Management and consulting fees                        1,818        2,215
                                                    ------------ ------------
                                                    ------------ ------------

    The fair value of stock options granted is recorded as an increase in
    contributed surplus.

    The fair value of stock options issued, which had not been charged to
    employee expenses, was $1,576,175 (2007: $213,248).

    The fair value of each option granted was estimated on the grant date
    using the Black-Scholes option pricing model with the following weighted
    average assumptions:

                                                    November 30, February 28,
                                                           2007         2007
                                                    ------------ ------------

    Expected dividend yield                                 0.0%         0.0%
    Expected volatility                                   66.08%       100.0%
    Risk-free interest rate                                 4.5%         3.5%
    Expected life                                       3 years    3.5 years


        Warrants

    The details of warrants issued are as follows:

                                                                    Weighted
                                                                     average
        Movement during fiscal 2007                    Number of    exercise
                                                        warrants     price $
                                                     ------------ -----------

        Warrants outstanding, March 1, 2006              200,000        7.30
                                                     ------------ -----------
                                                     ------------ -----------

        Warrants outstanding, September 1, 2006 -
         after ten-for-one split                       2,000,000        0.73
        Exercise of warrants                          (2,000,000)      (0.73)
                                                     ------------ -----------
        Warrants outstanding, February 28, 2007                -           -
                                                     ------------ -----------
                                                     ------------ -----------

    The warrants were exercised on November 7, 2006, which resulted in
    2,000,000 common shares being issued for $1,460,000.

    There have been no warrants issued during fiscal 2008.

    13  Related party transactions

    Ledima Investments (Pty) Ltd

    During the nine months, transactions took place between Boynton and
    Ledima Investments (Pty) Ltd, over which one of the Boynton directors,
    appointed November 29, 2006, exercised significant influence. Consulting
    services totalling $52,964 were undertaken by Ledima Investments (Pty)
    Ltd. These services were provided to Boynton at the exchange amount,
    which is the amount agreed to by each party, which was considered by the
    Board of Directors to be fair, and was paid in full. This contractual
    arrangement was terminated on 31 May 2007.

    14  Loan payable

    The long-term loan from Corridor Mining Resources (a subsidiary of
    Limpopo Economic Development Enterprise, previously Northern Province
    Development Corporation) bears interest at South African prime rate which
    is currently 14,5%, until otherwise agreed by the shareholders, and has
    no fixed terms of repayment. The loan is used by Mahube to fund
    exploration activities.  The loan is to be repaid from the proceeds
    generated by the M'Phatlele project in Tameng, a subsidiary of Mahube.
    The increase in the loan is due to the increase in exploration activities
    and feasibility study cost.

    15  Rehabilitation investment

    On August 31, 2007 the Pilanesberg Independent Technical Report for the
    Positive Pilanesberg Feasibility was filed. The DME required a
    rehabilitation guarantee of $7,026,901 before approving the application
    for a mining right. This guarantee was provided on September 12, 2007.
    This guarantee consists of an insured underlying guarantee issued by a
    short term insurance company which requires an annual investment
    insurance premium of US$ 651,621 for each of 3 years. The first premium
    of US$ 651,621 is reflected as the rehabilitation investment.

    16  Segmented information

    The Company operates in one geographic segment, South Africa, and one
    industry segment, exploration of precious metals properties, mainly
    platinum group elements.

    Funds raised by the Company are held in USD, GBP and CAD interest bearing
    accounts in Canada (74.38%) and Guernsey (25.62%) until required by the
    South African operations.

    17  Contingencies and commitments

    -   The Company has guaranteed the rehabilitation of numerous exploration
        targets. As at November 30, 2007, the total guarantees held by banks
        were $701,326 (February 28, 2007 - $66,255).

    -   Boynton has a prior agreement with Impala Platinum Limited (Impala)
        for the right of first refusal to purchase PGM concentrate produced
        by Boynton from the farms, Ruighoek 169JP, Vogelstruisnek 173JP and
        Palmietfontein 208JP. Should Boynton elect not to accept the terms
        proposed by Impala, a break fee of $2,089,573 in aggregate will be
        payable to Impala.

    -   Boynton has an obligation, which cannot be quantified, pro rata to
        its shareholding in Mahube to provide funding to Tameng to undertake
        the necessary exploration and development on the M'Phatlele project.
        The consequence of not contributing accordingly results in dilution
        of Boynton's shareholding.

    -   Boynton has undertaken to provide enough funding up to completion of
        a first bankable feasibility study, subject to a maximum of
        $1,393,049, on projects held by Setseka. The completion of a
        feasibility study is at Boynton's sole discretion; Boynton has the
        right to withdraw from prospecting on any particular property held in
        the joint venture.

    -   In respect of a joint venture agreement with Western Platinum Ltd.
        (Lonmin JV), Lonmin will contribute a maximum of $627 per hectare
        towards mineral rights existing under the joint venture and towards
        any additional mineral rights included later. Any costs beyond $627
        per hectare will be shared equally between Lonmin and Boynton.

    -   Boynton has entered into an agreement with Codoca Beleggings CC
        (Codoca) where Codoca will transfer its mineral rights to Boynton. A
        deposit of $242,840 was paid to Codoca.

        The remaining balances will be paid by Boynton if the following
        requirements are met:

        Payment of 50% of  the balance of the consideration amount within 30
        days of being notified by the DME that a prospecting right in terms
        of the MPRDA has been granted and issued to Boynton, enabling and
        entitling Boynton to commence prospecting activities and also in
        respect of Codoca's undivided share in the mineral rights. The
        remaining balance for this, less the deposit, will be $222,860.

    -   A Prospecting Contract was entered into on April 28, 2005 between
        Boynton and a BEE company, Sephaku, BHP and Samancor with respect to
        the farm Annex Grootboom 335KT ("Annex Grootboom"). In terms of the
        agreement, Samancor as the holder of certain old order rights
        pertaining to Annex Grootboom 335KT and Scheiding 407KS (Scheiding),
        was obligated to apply for conversion of these rights under the
        provisions of the MPRDA. Subsequent to a conversion being granted,
        Samancor is obligated in terms of the agreement to transfer the
        rights to PGM's and all metals and minerals mineralogically
        associated therewith on Annex Grootboom and Scheiding (the "PGM
        rights"), to BHP.

        Samancor lodged an application for conversion of the mining licence
        in December 2006. In terms of the same agreement, Sephaku was
        appointed to carry out exploration activities on Annex Grootboom and
        Scheiding on a contract basis.

        In terms of the agreement, Sephaku has the right to, within one month
        of the completion of a Bankable Feasibility Study on Annex Grootboom,
        acquire from BHP the PGM Rights for cash consideration of $8.00 per
        resource ounce as determined in a Bankable Feasibility Study in
        accordance with the SAMREC Code.

    -   Pilanesberg Platinum Mines (Pty) Ltd ("PPM"), a subsidiary of the
        Company, has entered into an agreement with Metso Minerals for the
        supply, delivery, erection and commissioning of primary and secondary
        ball mills for PPM. On August 22, 2007 a deposit of $1,141,788 was
        paid to Metso Minerals to start work on the above mentioned order.
        Should the Company elect not to continue with this order with Metso
        Minerals, a break fee of $1,868,756, in aggregate will be payable.

    -   On August 31, 2007 the Pilanesberg Independent Technical Report for
        the Positive Pilanesberg Feasibility was filed. The DME required a
        rehabilitation guarantee of $7,026,901 before approving the
        application for a mining right. This guarantee was provided on
        September 12, 2007. This guarantee consists of an insured underlying
        guarantee issued by a short term insurance company which requires an
        annual investment insurance premium of US$ 651,621 for each of 3
        years. The first premium of US$ 651,621 is reflected as a
        rehabilitation asset (refer to note 15).

    18  Minimum lease payments

                                                         1 Year    2-5 Years
                                                     -----------  -----------

        Office Rental                                  $164,238     $648,204
                                                     -----------  -----------


    During the first quarter of 2008, the Company's subsidiary, Boynton,
    entered into an operating lease agreement for the rental of offices. The
    lease commenced on April 1, 2007, for a period of five years. The monthly
    rental will escalate by 8% per annum as per the agreement. The Company
    has the right to renew the lease for a further period of up to five
    years, provided in writing at least Nine months prior to the termination
    of the initial period.

    19  Subsequent events

    The Company successfully entered into an underwriting agreement with a
    syndicate of underwriters, to purchase 9,500,000 common shares at a price
    of Cdn$8.50 per share, to raise gross proceeds of Cdn$80,750,000. The net
    proceeds will be used principally to advance the development of the
    Company's Pilanesberg project. The offering closed on December 6, 2007
    and the proceeds, net of brokers' commission, of Cnd$74,283,540, were
    received on December 6, 2007.

    The over-allotment option has been exercised in full which resulted in
    the issuance of an additional 1,425,000 common shares at an exercise
    price of Cdn$8.50 per share, for gross proceeds of Cdn$12,112,500. The
    offering closed on December 6, 2007 and the proceeds, net of Brokers
    commission, of Cnd$11,506,860 for the over-allotment, were received on
    December 21, 2007.

    This increases the number of common shares in issue to 110,459,871 after
    taking the above into account.

    20  Comparative amounts

    Certain comparative amounts have been reclassified to conform to the
    current period's presentation.

                               www.platmin.com

    About Platmin

    Platmin is a TSX and AIM (PPN) listed PGM exploration and development
    company focused on its four key advanced projects that host PGM Mineral
    Resources and Reserves: Pilanesberg, M'Phatlele, Grootboom and Loskop of
    which the Pilanesberg Project is currently in the development phase with
    the balance expected to follow. All of Platmin's projects are located in
    the Bushveld Complex of South Africa, which is estimated to contain
    approximately 90% of global platinum Mineral Resources.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

    Certain statements contained in this market release constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to this and other matters identified in
our public filings, our future outlook and anticipated events or results and,
in some cases, can be identified by terminology such as "may", "will",
"should", "expect", "plan", "anticipate", "believe", "intend", "estimate",
"predict", "potential", "continue" or other similar expressions concerning
matters that are not historical facts. These statements are based on certain
factors and assumptions including the results of marketing efforts, expected
growth, results of operations, performance and business prospects and
opportunities. While we consider these assumptions to be reasonable based on
information currently available to us, they may prove to be incorrect.
    Forward looking-information is also subject to certain factors, including
risks and uncertainties that could cause actual results to differ materially
from what we currently expect. These factors include changes in market and
competition, governmental or regulatory developments and general economic
conditions.
    

    %SEDAR: 00023797E




For further information:

For further information: Platmin Limited: 6 EcoFusion Office Park, Block
B, 324, Witch-Hazel Avenue, Highveld Park X59, 0157, Centurion, 0067, South
Africa; Keith Liddell, Executive Deputy Chairman, +61 8 9221 7466; Ian Watson,
Chief Executive Officer, +27 12 661 4280; RBC Capital Markets: Peter
Barrett-Lennard, +44 207653 4253; Grant Thornton Corporate Finance (Nomad):
Fiona Owen, +44 207 383 5100; GMP Securities L.P.: Mark Wellings (416)
367-8600; Haywood Securities: John Willett (416) 507-2345

Organization Profile

PLATMIN LIMITED

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890