Platinum Australia Ltd (PLA) – Smokey Hills Production Still Expected from 2007

• All 3 Platinum Australia (PLA) projects are now on a path to platinum production, with Smokey Hills (Eastern South Africa) expected to start production early in 2007. The Panton project in WA could be in production in JV with Sally Malay by the end of 2007, and Kalplats (Central South Africa) after the expected completion of its BFS by the end of 2007, could be in production in late 2008 / early 2009.
• Smokey Hills received its “New Order” Prospecting Right on 11 September 2006 through the cessation (or transfer) of the New Order Prospecting Right from its JV partner (Corridor Mining Resources) to the JV company (PhokaThaba Platinum Pty Ltd) in which PLA holds 80%. Application has been made for the New Order Mining Right, which may be received by late 2006 or early 2007.
• Should the Mining Right be received by early 2007, PLA expects to start mining and toll treating Smokey Hills’ UG2 ore through a nearby plant, while constructing its own concentrator for production of ~100,000ozpa 4EPGE (Pt, Pd, Rh & Au).
• A “New Order” Prospecting Right was also received for Kalplats on 11 September 2006 and drilling has consequently started aimed at increasing the size of the resource, as part of completing a PFS by April/May 2007 and a subsequent BFS by the end of 2007. Production is targeted at 170,000ozpa to 270,000ozpa 3EPGE with PLA earning a 49% interest from ARMplats.
• Both Smokey Hills and Kalplats appear to have significant upside potential. Smokey Hills could extend its planned mining west across the boundary into Modikwa ground in an arrangement with ARM/Angloplats, while Kalplats appears to have been misunderstood, with recoveries ~80% using conventional techniques, & potentially material extensions on strike and on parallel structures.