Platinum Metals : 2022 Second Quarter Report

Platinum Group Metals Ltd.

Interim Condensed Consolidated Financial Statements

(all amounts in thousands of United States Dollars unless otherwise noted)

For the period ended February 28, 2022

Filed: April 14, 2022

Consolidated Statements of Financial Position

(in thousands of United States Dollars)

February 28, 2022

August 31, 2021

ASSETS

Current

Cash

ATM Offering proceeds receivable (Note 7)

Amounts receivable

Prepaid expenses

$

9,583 $ 6,059

78 213

247 263

179 71

Total current assets

Performance bonds and other assets

Mineral Properties and Exploration Assets (Note 3) Property, plant and equipment

10,087 6,606

184 170

43,192 43,953

396 470

Total assets

$

53,859

LIABILITIES

Current

Accounts payable and accrued liabilities

$

51,199

$

921

$ 2,463

Loan payable (Note 5) - 9,088

Convertible Notes (Note 6) - 18,716

Total current liabilities

Asset Retirement Obligation Share based liabilities Lease liability

921 30,267

100 106

1,039 1,223

88 130

Total liabilities

$

2,148

$

31,726

SHAREHOLDERS' EQUITY Share capital (Note 7) Contributed surplus

Accumulated other comprehensive loss Deficit

$

929,539 $ 890,783

31,278 30,102

(161,622) (159,226)

(765,949) (759,771)

Total shareholders' equity attributable to shareholders of Platinum Group Metals Ltd.

33,246

1,888

Non-controlling interest Total shareholders' equity

18,465 51,711

17,585 19,473

Total liabilities and shareholders' equity

$

53,859

$

51,199

Contingencies and Commitments (Note 9)Approved by the Board of Directors and authorized for issue on April 14, 2022

/s/ Stuart Harshaw Stuart Harshaw, Director

/s/ Diana Walters Diana Walters, Director

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

2

Consolidated Statements of Loss and Comprehensive Loss

(in thousands of United States Dollars except share and per share data)

Three months ended

Six months endedFebruary 28, 2022

February 28, 2021

February 28, 2022

February 28, 2021

Expenses

General and administrative Interest

Foreign exchange (gain) loss

Share of joint venture expenditures - Lion Battery (Note 4) Stock compensation expense (Note 7)

$

• 1,139 $

584

(85)

253

601

$

2,492

Other Income

Loss on fair value derivatives & other instruments Write-off due to prospecting right closures (Note 3) Loss on early repayment of debt and Convertible Notes Net finance income

$

• (12) $ 223 (43) (26)

Loss for the period

Items that may be subsequently reclassified to net loss:

Currency translation adjustment

$

2,634

(1,327)

1,109 $

2,440 $ 1,942

1,217

1,650 2,524

(574)

59 (673)

343

253 343

1,167

1,284 1,607

$

3,262 $

5,686

$

5,743

550 $ - 201 (24)

• (12) $ 223 104 (51)

558 -

300

(48)

$

3,989 $

• 5,950 $

6,553

(175)

2,396

(3,325)

Comprehensive loss for the period

$

1,307

Net Loss attributable to:

Shareholders of Platinum Group Metals Ltd.

$

$

2,634

2,634

Comprehensive loss attributable to:

Shareholders of Platinum Group Metals Ltd.

$

$

1,307

1,307

$

3,814 $

8,346

$

3,228

$ $

3,989 $

3,989 $

5,950

5,950

$

$

6,553 6,553

$ $

3,814 $

3,814 $

8,346

8,346

$

$

3,228 3,228

Basic and diluted loss per common share

$

0.03 $

Weighted average number of common shares outstanding:

Basic and diluted

83,953,315

0.06 $

0.07

$

0.09

71,517,800

80,393,761

69,417,398

3

PLATINUM GROUP METALS LTD.

Consolidated Statements of Changes in Equity

(in thousands of United States Dollars, except # of Common Shares)

# of Common

SharesShare Capital

Contributed

SurplusAccumulated

Other Comprehensive Income (loss)

DeficitAttributable to Shareholders of the Parent

CompanyNon-Controlling

InterestTotalBalance August 31, 2020

Stock based compensation Restricted share units redeemed Share options exercised

Share issuance - financing Share issuance costs Contributions of Waterberg JV Co. Foreign currency translation adjustment Net loss for the period

64,095,073 - 92,885 430,680 9,339,276 - - - - 73,957,914 - 28,783 412,863 871,566 - - - - 75,271,126 - 164,348 10,000 8,997,357 11,793,509 - - - - 96,236,340

$

861,890 - 103 1,115 25,325 (1,186)

$

• 28,278 $ 1,314 (196) (447)

(164,124)

$ (746,313) $

(20,269) $

16,126 $ (4,143)

-

-

1,314 - 1,314

-

-

(93) - (93)

-

-

668 - 668

- - - - -

-

-

25,325 - 25,325

-

-

(1,186)

- 257 -

(1,186)

- - -

3,325

-

(68)

-

(68) 3,325

189 3,325

-

(6,553)

(6,553) - (6,553)

Balance February 28, 2021

Stock based compensation Restricted share units redeemed Share options exercised

Share issuance - financing Share issuance costs Contributions of Waterberg JV Co. Foreign currency translation adjustment Net loss for the period

$

887,247

$

• 28,949 $ 1,607

(160,799)

$

(752,934)

$

2,463 $

16,383 $ 18,846

-

-

1,607 - 1,607

86 1,186 2,624 (360)

(86) (368)

-

-

-

-

-

-

818 - 818

- - - - - 30,102 1,686 (500) (10)

-

-

2,624 - 2,624

-

-

- (327)

(360) - (360)

-

-

(327)

1,202 875

-

1,573

-

1,573 - 1,573

- 890,783

- (159,226)

(6,510)

(6,510) 1,888

-(6,510)

Balance August 31, 2021

Stock based compensation Restricted Share Units redeemed Share options exercised

Share issuance - financing

Shares issued to repay convertible debt Share issuance costs

Contributions of Waterberg JV Co. Foreign currency translation adjustment Net loss for the period

(759,771)

17,585 19,473

- 500 32 19,793 18,941

- - - - - - - (2,396)

-

1,686 - 1,686

-

-- 22

- -- 22

- - - - - - 31,278

-

19,793 - 19,793

-

18,941 - 18,941

(510)

- (228)

(510) - (510)

-

(228)

880 652

-

-

(2,396) - (2,396)

- 929,539

- (161,622)

(5,950)

(5,950) - (5,950)

Balance February 28, 2022

(765,949)

33,246

18,465

51,711

4

Consolidated Statements of Cash Flows

(in thousands of United States Dollars)

For the period ended

.

February 28, 2022

February 28, 2021

OPERATING ACTIVITIES

Loss for the period

Add items not affecting cash / adjustments: Depreciation

Interest expense

Unrealized foreign exchange (loss)

Loss on fair value of derivatives and other instruments Loss on repayment of debt and Convertible Notes Stock compensation expense

Share of joint venture expenditures Directors' fees paid in deferred share units

Write-off costs associated with prospecting right closures (Note 3) Net change in non-cash working capital (Note 10)

$

(5,950) $

(6,553)

46 61

1,650 2,524

221 (3)

(12) 558

104 300

1,284 1,607

253 343

79 75

223

-(463) (2,938)

$

(2,565) $ (4,026)

FINANCING ACTIVITIES

Proceeds from issuance of equity Equity issuance costs

Cash received from option exercises Sprott Facility principal repayments Sprott Facility interest paid Convertible note interest paid

Costs associated with repayment of debt and Convertible Notes Lease payments made

Share unit cash settlement

Cash received from Waterberg partners

$

19,928 $

(510)

25,325 (1,186)

21

668

(9,400) (8,670)

(293) (982)

(826) (693)

(96)

-(45) (45)

- (191)

226 665

$

9,005

$ 14,891

INVESTING ACTIVITIES

Performance bonds

Investment in Lion

Expenditures incurred on Waterberg Project

$

(24) $ (23)

(253) (350)

(2,587) (1,403)

$

(2,864) $ (1,776)

Net increase in cash

Effect of foreign exchange on cash Cash, beginning of period

3,576 9,089

(52) (610)

6,059 1,308

Cash end of period

$

9,583

$

9,787

5