December 21, 2009

Dear Shareholders,

Our new 2009 Annual Report for our year ended August 31, 2009 is available on our website at:

http://www.platinumgroupmetals.net/investors/annual_reports/

We are at an exciting time for our company with a large scale platinum mine outlined and ready to move into the construction phase right at a time that platinum is highly strategic and in demand.

Jewelry demand for platinum has exploded, up 80% in Asia just as the world's vehicle market is recovering. Industry authority Johnson Matthey recently reported that platinum consumption for automobile catalytic converters and jewelry will be roughly equal in 2009 and is expecting supply deficits going forward.

It is against this dynamic backdrop that we will be making our decisions on how to get the most for our shareholders from our assets. We are looking at all options from building the mine, partnering or hedging our metal to an outright sale. RBC Capital in London and your management and Board have been working diligently analyzing our options.

The final Department of Mineral Resources paper work on the approved transaction for us to hold 74% of the project is expected any day. The time for selecting a path and moving forward is now. We will be very active in 2010 also on the exploration front with three drill programs planned in South Africa all funded by joint venture partners including the Government of Japan.

We look forward to 2010 and we thank all of our shareholders for their continued support.

Please call us to find out more.

R. Michael Jones
President and CEO