Platmin Limited - News Release



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

    TORONTO, Oct. 16 /CNW/ - Platmin Limited (the "Company") is pleased to
announce its unaudited consolidated financial statements for the three and six
month periods ended August 31, 2007 and its Management's Discussion and
Analysis of Financial Condition and Results of Operations for the same period.

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

    (For the three and six month periods (Quarter 2) ended August 31, 2007)

    1.  Introduction

    Information in this Interim MD&A is intended to supplement the unaudited
    interim consolidated financial statements of Platmin for the three and
    six month periods ended August 31, 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, the company's final prospectus issued prior to its
    listing on August 10, 2006, and the technical reports prepared by
    qualified persons at RSG Global (Pty) Limited in accordance with
    NI43-101. These documents can be found at www.sedar.com and at
    www.platmin.com.

    2.  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 commencement of the
    development of a mine on the Pilanesberg Project during the next six
    months, while making progress in exploration, resource delineation and
    feasibility work on the other Key Projects.

    3.  Overall Performance

    The Company recorded a net loss for the quarter ended August 31, 2007 of
    US$1.888 million, or US$0.02 per share, compared with a net loss of US
    $0.952 million, or US$0.02 per share, for the quarter ended August 31,
    2006. The Company recorded a net loss for the 6 months ended August 31,
    2007 of US$4.859 million, or US$0.05 per share, compared with a net loss
    of US$2.863 million, or US$0.05 per share, for the 6 months ended
    August 31, 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 six months ended August 31, 2007, the
    Company's deferred exploration expense increased to US$25.126 million
    from US$21.503 million as at the financial year ended February 28, 2007.

    During the quarter ended August 31, 2007, 767,813 broker compensation
    options issued at the IPO were exercised, at US$3.79, raising
    US$2,913,176, for the issue of 767,813 common shares. A total of
    1,575,320 options were exercised under the company's share incentive
    scheme, using the cashless option, resulting in the issue of 1,384,312
    common shares. A total of 420,000 options were exercised under the
    company's share incentive scheme, at an average price of US$0.39 per
    share, raising US$161,500, resulting in the issue of 420,000 common
    shares.

    Subsequent to August 31, 2007, a total of 300,000 options were exercised
    at an option price of US$0.63, raising US$187,500, for the issuance of
    300,000 common shares. In addition, a further 37,500 options were
    exercised under the company's share incentive scheme, using the cashless
    option, resulting in the issue of 31,517 common shares.

    During the quarter ended August 31, 2007, 600,000 options were issued at
    US$5.74 and a further 150,000 options were issued at US$7.04.

    As at August 31, 2007, the Company had 96,374,938 common shares in issue.
    The Company also had 6,882,500 exercisable share options out of 7,582,500
    options outstanding, which, if exercised in full, would raise
    US$11,012,000, through the issuance of an additional 6,882,500 common
    shares.

    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.

    4.  Selected Quarterly Information


                                                        Quarter Ended
                                              -------------------------------
                                              August     May     Feb     Nov
                                                  31,     31,     28,     30,
                                                2007    2007    2007    2006
                                              -------------------------------
    Loss for the period                        1,888   2,971   1,886   2,289
    Net loss per common share (US$)             0.02    0.03    0.02    0.02


                                                        Quarter Ended
                                              -------------------------------
                                              August     May     Feb     Nov
                                                  31,     31,     28,     30,
                                                2006    2006    2006    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.

    5.  Results of Operations

    Quarter ended August 31, 2007 compared to the quarter ended August 31,
    2006

    There was no revenue in either quarter and the Company has no revenue
    generating operations or mineral production. Interest income of
    US$0.933 million was recorded in the quarter ended August 31, 2007
    compared to US$0.179 million in the quarter ended August 31, 2006.

    The loss for the quarter ended August 31, 2007 was US$1.888 million
    compared with US$0.952 million in the quarter ended August 31, 2006.

    Administrative expenses totaled US$2.821 million for the quarter ended
    August 31, 2007 compared to the corresponding prior year quarter amount
    of US$1.165 million. The major expense item was due to an increase in
    management fees and the employment of additional management expertise to
    assist in the transformation of the Company from exploration to
    development. There was a foreign exchange loss of US$0.108 million in the
    second quarter ended August 31, 2007 compared with a foreign exchange
    gain of US$0.591 million in the corresponding prior year quarter ended
    August 31, 2006. The increase in office expenditure and professional fees
    are mainly because 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$1.21 million of deferred exploration expenditures was
    capitalized in the quarter ended August 31, 2007 compared with
    US$1.79 million in the prior year corresponding quarter.

    Six months ended August 31, 2007 compared to the six months ended
    August 31, 2006

    There was no revenue in either period and the Company has no revenue
    generating operations or mineral production. Interest income of
    US$1.371 million was recorded in the 6 months ended August 31, 2007
    compared to US$0.226 million in the six months ended August 31, 2006.

    The loss for the six months ended August 31, 2007 was US$4.859 million
    compared with US$2.863 million in the six months ended August 31, 2006.

    Administrative expenses totaled US$6.308 million for the six months ended
    August 31, 2007 compared to the corresponding prior year six months
    amount of US$3.031 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 loss of US$0.32 million in the first six months
    compared with a foreign exchange gain of US$0.504 million in the
    corresponding prior year six months ended August 31, 2006. The increase
    in office expenditure and professional fees are mainly because 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$3.623 million of deferred exploration expenditures was
    capitalized in the six months ended August 31, 2007 compared with
    US$4.210 million in the prior year corresponding six months.

    6.  Results of Operations by Project

    In the quarter ended August 31, 2007, the Company spent US$1.211 million
    on exploration expenditures. Of this, 27% was spent on the Pilanesberg
    Project, 63% was spent on M'Phatlele and 7% was spent on the Grootboom
    Project. Other projects accounted for 3% of the total exploration
    expenditure. A summary of the expenditures by project along with proposed
    programs is set forth below.

    7.  Pilanesberg Project

    Exploration activity and drilling at the Pilanesberg Project has
    increased annually since 2002 resulting in a continuous upgrading of the
    mineral resource identified on the project. The total exploration
    expenditure for the quarter ended August 31, 2007 was US$0.326 million,
    bringing the Company's total expenditures since inception on this project
    to US$16.097 million.

    In the 2006 fiscal year, the Company commenced a bulk sampling program on
    the Tuschenkomst property to provide mining and metallurgical data
    integral to the development of a feasibility study. In addition to
    general exploration, significant expenditure has also been incurred on
    the feasibility study that that has now culminated in a definitive
    feasibility. The feasibility study only looked at mining on two of the
    Pilanesberg Properties (Tuschenkomst and Ruighoek). Activities related to
    the feasibility study included completion of trial mining, metallurgical
    test work, and revision of resource models to include mining dilution
    (various scenarios), pit optimization, geotechnical investigations and
    environmental impact assessment with base line environmental studies. The
    immediate focus is the further refinement of the mine plan and the
    raising of Project finance, to develop this mine. The property has
    shallow underground mining potential between 150m to 500m below surface
    which will be targeted in later phases of exploration and drilling. Early
    stage exploration remains ongoing on many of the other properties
    comprising the Pilanesberg project.

    Work Program

    Platmin has completed a definitive feasibility study on the Pilanesberg
    project and together with SRK consultants concluded that the project
    exceeds financing requirements, including a pay back period of less than
    5 years, and the required returns of (greater than)15%. Following a
    Platmin board discussion, the Company is progressing with the project to
    the detailed design and construction phase. As part of this process,
    Platmin has placed orders on all critical long lead time equipment
    necessary to start construction to meet the project deadlines of
    commencing production.

    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.

    8.  M'Phatlele Project

    During the second quarter of fiscal 2008, a total of US$0.764 million was
    spent on the M'Phatlele project, bringing the cumulative amount of
    expenditures on the project by the Company to US$5.710 million, other
    than acquisition costs.

    The proposed 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 will include drilling to further evaluate the Merensky Reef and UG2
    Chromitite Layer from near surface to 1500m. 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 estimate which is currently in progress. Drilling to
    1500m level is in progress and is expected to be completed early in 2008.
    Further infill drilling is currently being conducted on the Merensky Reef
    on the eastern portion of the resource block. 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 late 2007.

    9.  Grootboom Project

    During the second quarter of fiscal 2008, the Company spent
    US$0.083 million on Grootboom and Annex Grootboom, bringing the
    expenditure for the project to date to US$2.15 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 right on the Grootboom Tailings Dam has been awarded to
    Platmin. Flotation test-work has been completed and plant design for the
    processing of the tailings is currently underway. Additional work to
    confirm the insitu bulk density of the tailings dam and 6PGE grade is
    also underway.

    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 2008. The Scoping stage of the Environmental Impact Assessment is
    expected to be complete 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
    expected to be complete by December 2007. 2500m of diamond drilling is
    planned.

    Completion of bulk density estimates at the Grootboom Tailings Dam is due
    to be completed by November 2007.

    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
    November 2007.

    Concurrent to the above work program, Platmin is preparing a Mining Right
    application for the Grootboom property which is due for submission by
    October 2007. This includes the submission of a mine work plan, a social
    and labour plan, and the undertaking of an Environmental Management
    Program, all of which are in progress.

    10. 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$0.011 million was spent by Platmin on
    the Loskop Project during the quarter ended August 31, 2007 versus
    US$0.510 million during the same period in the prior fiscal year. The
    Company has spent US$0.511 million to August 31, 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.

    11. Liquidity and Capital Resources

    As at August 31, 2007, the Company had cash and cash equivalents of
    US$34.808 million on hand, as compared with US$43.408 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 August 31, 2007, 767,813 broker compensation
    options issued at the IPO were exercised, at US$3.79, raising
    US$2,913,176, for the issue of 767,813 common shares. A total of
    1,575,320 options were exercised under the company's share incentive
    scheme, using the cashless option, resulting in the issue of 1,384,312
    common shares. A total of 420,000 options were exercised under the
    company's share incentive scheme, at an average of US$0.39 per share,
    raising US$161,500, resulting in the issue of 420,000 common shares.
    Subsequent to August 31, 2007, a total of 300,000 options were exercised
    at an option price of US$0.63, raising US$187,500, for the issuance of
    300,000 common shares.

    In addition, a further 37,500 options were exercised under the company's
    share incentive scheme, using the cashless option, resulting in the issue
    of 31,517 common shares. 600,000 options were issued at US$5.74 and a
    further 150,000 options were issued at US$7.04 during the quarter ended
    August 31, 2007.

    As at August 31, 2007, the Company had 96,374,938 common shares in issue.

    The Company also had 6,882,500 exercisable share options out of 7,582,500
    options outstanding. The Company's share option incentive scheme, which,
    if exercised, in full, would raise US$11,012,000 through the issuance of
    an additional 6,882,500 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$48.06 million at August 31, 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 major bankers. The
    Company's total direct exploration expenditures in fiscal 2008 on all the
    projects is expected to be in the order of US$15.84 million including all
    land access costs of US$1.6 million (option costs, leases etc). These
    amounts represent, other than for Loskop, the full cost of exploration
    expected on each of the Key Projects. Corporate and administrative
    expenditures are expected to be approximately US$6.62 million.

    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.

    The company is currently engaged in a formal process to select a project
    development financing package and expects to shortlist potential
    financiers by the end of October 2007. Whilst the process is at an early
    stage, the response has been very positive with a number of banks
    expressing a formal interest to underwrite the debt financing for the
    development of the Pilanesberg Platinum Project.

    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$14,504 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.

    12. Off-Balance Sheet Arrangements

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

    13. 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.

    14. 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.

    15. 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 be reduced 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.

    16. 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 August 31, 2007, the Company had capitalized US$25.126 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 August 31, 2007:
    risk free interest rate of 4.5%, expected dividend yield of nil, expected
    volatility of 66%, and expected option life of 3 years.

    For purposes of disclosure, 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 August 31, 2007 and May 31,
    2007, and amounted to US$0.63 million, prior quarter US$0.10 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.

    17. 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.

    18. Outstanding Share Data

    Platmin has an unlimited number of common shares without par value. At
    February 28, 2007, and at May 31, 2007, there were 93,802,813 common
    shares outstanding. At August 31, 2007, there were 96,374,938 common
    shares outstanding.

    Platmin has outstanding stock options and warrants to purchase common
    shares. As at August 31, 2007, there were outstanding options exercisable
    for 6,882,500 common shares. As at August 31, 2007, there were a further
    700,000 unvested share options, not exercisable, for 700,000 common
    shares. Options outstanding at August 31, 2007, totaled 7,582,500.

    As at August 31, 2007, there were no more warrants outstanding.

    19. 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.

    20. 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.

    21. 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$0.493 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 US$7.027 million before
    approving the application of a mining right. This guarantee was provided
    on September 12, 2007. Environmental bonds are extinguished by the DME on
    completion of the rehabilitation plans contained within the exploration
    permits.

             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 six month
    periods ended August 31, 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.



                 Unaudited Consolidated Financial Statements
          For the Three and Six month Periods ended August 31, 2007
             (expressed in U.S. dollars, unless otherwise stated)

                         (a development stage entity)

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

                                                     ------------------------
                                                     August 31,  February 28,
                                                          2007          2007
                                                         $ 000         $ 000
    Assets

    Current assets
    Cash and cash equivalents                           34,808        43,408
    Restricted cash (note 4)                             1,531             -
    Loans due from related parties (note 5)             14,504        13,552
    Receivables                                            547           418
    Prepaid expenses                                        76            68
                                                     ------------------------
                                                        51,466        57,446

    Property, plant and equipment (note 7)               2,269           785

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

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

    Deferred exploration expenses (note 10)             25,126        21,503
                                                     ------------------------

                                                        84,588        85,461
                                                     ------------------------
                                                     ------------------------

    Liabilities

    Current liabilities
    Accounts payable                                     2,312         3,221
    Accrued liabilities                                     84           155
                                                     ------------------------
                                                         2,396         3,376

    Loan payable (note 14)                               1,153           659

    Asset retirement obligation (note 15)                  493           493
                                                     ------------------------

                                                         4,042         4,528
                                                     ------------------------

    Shareholders' Equity

    Common shares (note 11)                            103,631        99,542

    Contributed surplus (note 11)                        2,863         2,480

    Deficit                                            (25,948)      (21,089)
                                                     ------------------------

                                                        80,546        80,933
                                                     ------------------------

                                                        84,588        85,461
                                                     ------------------------
                                                     ------------------------

    Contingencies and commitments (note 17)

    The accompanying notes are an integral part of the consolidated financial
    statements.



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

                              Three months ended           Six months ended
                                   August 31                   August 31
                              2007          2006          2007          2006
                             $ 000         $ 000         $ 000         $ 000

    Administrative
     expenses

    Management and
     consulting fees         2,319         1,249         5,315         2,691
    Travelling and
     promotion                  65            61           174           136
    Rental                      54            19            89            34
    Office                     179           256           468           404
    Professional fees           53            94           139           156
    Interest and
     penalties                  40            39            63            50
    Amortization of
     property, plant
     and equipment               3            38            28            64
    Foreign exchange
     loss/(gain)               108          (591)           32          (504)
                           --------------------------------------------------

                            (2,821)       (1,165)       (6,308)       (3,031)

    Research and
     development costs           -             -            82           (52)

    Deferred exploration
     costs written off           -             -            (4)          (47)
                           --------------------------------------------------

                            (2,821)       (1,165)       (6,230)       (3,130)

    Other income                 -            34             -            41
    Interest income            933           179         1,371           226
                           --------------------------------------------------

    Loss and
     comprehensive
     loss for the
     period                 (1,888)         (952)       (4,859)       (2,863)

    Deficit -
     Beginning of period   (24,060)      (15,962)      (21,089)      (14,051)
                           --------------------------------------------------

    Deficit -
     End of period         (25,948)      (16,914)      (25,948)      (16,914)
                           --------------------------------------------------
                           --------------------------------------------------

    Basic and diluted
     loss per common
     share (note 8)           0.02          0.02          0.05          0.05

    Weighted average
     number of common
     shares             95,128,093    67,671,457    94,465,453    61,724,825



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

                              Three months ended           Six months ended
                                   August 31                   August 31
                              2007          2006          2007          2006
                             $ 000         $ 000         $ 000         $ 000
    Cash provided
     by/(used in)

    Operating
     activities
    Loss for
     the period             (1,888)         (952)       (4,859)       (2,863)
    Non-cash items
      Amortization
       of property,
       plant and
       equipment                 3            38            28            64
      Loss/(Gain)
       on sale of
       property,
       plant and
       equipment                 6            (1)            6            (2)
      Stock-based
       compensation
       expense               1,295           577         1,397         1,154
      Foreign exchange
       loss/(gain)             108          (591)           32          (504)
    Changes in
     non-cash working
     capital items
     (note 6)                  308         1,905            60         1,689
                           --------------------------------------------------

                              (168)          976        (3,336)         (462)
                           --------------------------------------------------

    Investing activities

    Purchase of
     property, plant
     and equipment          (1,387)          (87)       (1,534)         (111)
    Proceeds from
     disposal of
     property, plant
     and equipment              15             2            15             7
    Increase in
     restricted cash        (1,531)            -        (1,531)            -
    Increase in
     deferred
     exploration
     expenses - net         (1,947)       (2,539)       (4,799)       (4,210)
                           --------------------------------------------------

                            (4,850)       (2,624)       (7,849)       (4,314)
                           --------------------------------------------------

    Financing activities
    Increase in loan
     receivable                (70)          (43)         (458)          (83)
    Issue of common
     shares                  3,030        46,787         3,075        50,281
    Share issue
     expenses                    -        (5,739)            -        (5,739)
                           --------------------------------------------------

                             2,960        41,006         2,617        44,459
                           --------------------------------------------------

    Net increase/
     (decrease) in
     cash and cash
     equivalents
     during the period      (2,058)       39,358        (8,568)       39,683
    Effect of exchange
     rate changes on
     cash held in
     foreign currencies       (108)          591           (32)          504

    Cash and cash
     equivalents -
     Beginning
     of period              36,974        20,172        43,408        19,935
                           --------------------------------------------------
    Cash and cash
     equivalents -
     End of period          34,808        60,122        34,808        60,122
                           --------------------------------------------------

    Supplementary
     information
    Interest paid               40           154            63           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 16 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 had been
    successfully converted into new order rights under the new 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 $1,531,338 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


                                                     August 31,  February 28,
                                                          2007          2007
                                                         $ 000         $ 000
                                                   ------------  ------------

        Moepi Capital (Pty) Ltd.(1)                     14,300        13,369
        5 Brothers Mining (Pty) Ltd.                         3             3
        Private Preview Investments (Pty) Ltd.             158           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.                       40            38
        Dream World Investments (Pty) Ltd.                   -             3
        Moepi Resources Limited                              -             6
        Crowned Cormorant Investments 13 (Pty) Ltd.          -             2
                                                   --------------------------
                                                        14,504        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 and is repayable on the following dates:

        November 1, 2007
        February 2, 2008
        March 27, 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 six months
                                               ended                   ended
                               August 31,  August 31,  August 31,  August 31,
                                    2007        2006        2007        2006
                                   $ 000       $ 000       $ 000       $ 000
                               ----------------------------------------------

        Receivables                  284         478        (129)       (191)
        Prepaid expenses             (11)        114          (8)       (407)
        Accounts payable              15       1,514         148       1,973
        Accrued liabilities           20        (201)        (71)        214
                               ----------------------------------------------
        Increase/(Decrease)          308       1,905          60       1,689
                               ----------------------------------------------


    7   Property, plant and equipment


                                                             August 31, 2007
                                    -----------------------------------------

                                    -----------------------------------------
                                                   Accumulated
                                            Cost  amortization           Net
                                           $ 000         $ 000         $ 000
                                    -----------------------------------------

        Vehicles                             355           137           218
        Computer equipment                   181           120            61
        Computer software                     79            58            21
        Office equipment                      25            15            10
        Furniture and fittings                86            23            63
        Other equipment                       16            12             4
        Leasehold Improvements                81             7            74
        Plant Construction                 1,325             -         1,325
        Rehabilitation asset                 493             -           493
                                    -----------------------------------------
                                           2,641           372         2,269
                                    -----------------------------------------
                                    -----------------------------------------


                                                           February 28, 2007
                                    -----------------------------------------

                                    -----------------------------------------
                                                   Accumulated
                                            Cost  amortization           Net
                                           $ 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
                                    -----------------------------------------
                                    -----------------------------------------


    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 six months
                                               ended                   ended
                               August 31,  August 31,  August 31,  August 31,
                                    2007        2006        2007        2006
                                   $ 000       $ 000       $ 000       $ 000
        ---------------------------------------------------------------------

        Loss attributable to
         shareholders ($000)       1,888         952       4,859       2,863
        Weighted average
         number of
         common shares        95,128,093  67,671,457  94,465,453  61,724,825
                              -----------------------------------------------
        Basic and diluted loss
         per common share in
         US$ per share              0.02        0.02        0.05        0.05
                              -----------------------------------------------
                              -----------------------------------------------


    On August 10, 2006, the Company converted preference 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 August 31, 2007 other than the outstanding options
    described in note 12.

    9   Mineral rights


                                                     August 31,  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               August 31,  February 28,
         - Acquisition cost                               2007          2007
                                                   --------------------------

        Balance brought forward and carried forward      4,619         4,619
                                                   --------------------------
                                                   --------------------------


        Deferred exploration expenses                August 31,  February 28,
                                                          2007          2007
                                                   --------------------------

        Balance brought forward                         21,503        13,787
        Additions                                        3,623         8,260
        Revenue credited                                     -          (544)
                                                   --------------------------
        Balance carried forward                         25,126        21,503
                                                   --------------------------
                                                   --------------------------


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


                                August  31, 2007           February 28, 2007
                       --------------------------  --------------------------
                                        Deferred                    Deferred
                       Acquisition   exploration   Acquisition   exploration
                              cost      expenses          cost      expenses
                             $ 000         $ 000         $ 000         $ 000
                       --------------------------  --------------------------
        Pilanesberg
         project
          Tuschenkomst          25         8,834            25         7,833
          Witkleifontein         -         1,865             -         1,665
          Rooderand              -         1,409             -         1,148
          Ruighoek               -         3,354             -         3,067
          Vogelstruisnek         -            55             -            50
          Bakhoutrantje          -            45             -            30
          Palmietfontein         -           532             -           531
          Rietfontein
           380JS                 -             3             -             -
        M'Phatlele
         project             3,055         5,710         3,055         4,181
        Grootboom
         project
          Grootboom          1,514         1,614         1,514         1,469
          Grootboom
           Tailings              -            43             -            42
          Annex                  -           493             -           454
        Loskop
         project
          Loskop 2               -           478             -           388
          Rietfontein
           70JS                  -            33             -            33
        Golden Valley            -            67             -            59
        Oorlogsfontein           -            84             -            84
        Apiesboomen              -            94             -            94
        Woolrich area 2          -             3             -             3
        Woolrich area 3          -             3             -             3
        Woolrich area 4          -             2             -             2
        Veeplaats                -            13             -            10
        Vogelenzang              -            75             -            71
        Setseka area            25             7            25             7
        Defacto area             -            18             -            16
        Scheiding                -           227             -           224
        Bashoek                  -             5             -             5
        Tweelaagte,
         Diamant &
         Kleingenoeg             -            40             -            34
        Moloena JV
         (Ruighoek (Ptn5)
         & Vogelstruisnek
         (Ptn2))                 -            11             -             -
        Strydfontein             -             9             -             -
                       --------------------------  --------------------------
                             4,619        25,126         4,619        21,503
                       --------------------------  --------------------------
                       --------------------------  --------------------------


    Moloena JV

    The prospecting right for Vogelstruisnek (Ptn 2) and Ruighoek (Ptn 5) was
    granted on January 23, 2007. Expenditure on this project only started
    during the quarter under review to an amount of $11,056.

    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                          1,804,312           162
        Fair value of options exercised                      -         1,014
        Share issue expenses                                 -             -
                                                   ------------  ------------
        Balance, August 31, 2007                    96,374,938       103,631
                                                   ------------  ------------
                                                   ------------  ------------


    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


                                                    August  31,  February 28,
                                                          2007          2007
                                                         $ 000         $ 000
                                                   --------------------------

        Balance - Beginning of period                    2,480         2,147
        Surplus - Vesting of previously issued
         options                                         1,417         2,215
        Surplus - Warrants exercised                         -        (1,460)
        Surplus - Options cancelled                        (20)            -
        Surplus - Options exercised  (cash)               (300)            -
        Surplus - Options exercised (cashless)            (714)         (422)
                                                  ------------  ------------
        Balance - End of period                          2,863         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 fixed at 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 of      exercise
                                                       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, August 31, 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                         (1,995,320)        (1.03)
        Options cancelled - resignations               (40,000)        (0.70)
                                                   ------------
        Options outstanding, August 31, 2007         7,582,500          1.97
                                                   ------------
        Options exercisable, August 31, 2007         6,882,500          1.60
                                                   ------------


    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.


        Exercise date                                 Exercise     Number of
                                                       price $       options
                                                   --------------------------
        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 date                                 Exercise     Number of
                                                      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 August 31, 2007, the following options were exercisable and
    outstanding:


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

        September 6, 2007 -
         refer to note 19              0.63    300,000       0.63    300,000
        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  1,582,500       1.20  1,582,500
        April 12, 2011                 2.00  3,500,000       2.00  3,500,000
        September 18, 2011             3.86          -       3.86    150,000
        June 1, 2012                   5.74    200,000       5.74    600,000
        August 28, 2012                7.04          -       7.04    150,000
                                            -----------           -----------

        Weighted average               1.60  6,882,500       1.97  7,582,500
                                            -----------           -----------
                                            -----------           -----------


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


                                       Exercisable           Outstanding
                                 --------------------------------------------
        Expiry date                Exercise  Number of   Exercise  Number of
                                    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:


                                                      August 31, February 28,
                                                           2007         2007
                                                           $000         $000
                                                    ------------ ------------

        Management and consulting fees                    1,417        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 $1,996,349 (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:


                                                      August 31, 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
                                                      Number of     exercise
                                                       warrants      price $
                                                    ------------  -----------
        Movement during fiscal 2007

        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 six 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. During the quarter under
    review the consulting services totalled $27,888.

    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 13.5%, 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 costs leading to a bankable feasibility study for this project.

    15  Asset retirement obligation

    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. 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.

    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 (82.3%) and Guernsey (17.7%) until required by the
    South African operations.

    17  Contingencies and commitments

    -   The Company has guaranteed the rehabilitation of numerous exploration
        targets. As at August 31, 2007, the total guarantees held by a bank
        were $120,616 (February 28, 2007 - $66,255).

    -   Boynton has entered into an 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.

    -   Under the terms of a joint venture agreement between Boynton and
        Ranger Minerals Limited (Ranger), a subsidiary of Perilya Ltd.,
        Boynton has committed to contribute up to $90,000 towards the initial
        funding on prospecting areas identified by Ranger. The contribution
        is a pro rata contribution in accordance with Boynton's 30%
        shareholding in the joint venture.

    -   Boynton entered into an agreement with Woolrich and Associates (Pty)
        Ltd., whereby Boynton paid an amount of $9,987 in aggregate prior to
        July 31, 2003. The Company undertook to spend $222,888 in aggregate
        on prospecting activities on certain prospecting areas within a
        period of one year from the date on which prospecting permits have
        been issued. The only prospecting permit received to date is on the
        Groenfontein area, on which the Company spent $153,080.

    -   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.

    18  Minimum lease payments


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

        Office Rental                                  $ 154,128   $ 660,555
                                                      ----------- -----------


    During the first quarter, 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 six months prior to the termination
    of the initial period.

    19  Subsequent events

    Subsequent to August 31, 2007, a total of 300,000 options were exercised
    at an exercise price of $0.63. The funds for the options exercised were
    received in September, 2007 in the amount of $187,500. During the same
    time 37,500 options were exercised at an exercise price of $1.20. These
    were done as a cashless exercise.

    20  Comparative amounts

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

    %SEDAR: 00023797E




For further information:

For further information: PLATMIN LIMITED, 6 EcoFusion Office Park, Block
B, 324, Witch-Hazel Street, Highveld Park X59, 0157 Centurion, 0067, South
Africa

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