Quarterly Report: 31 March 2021

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30 April 2021

Sylvania Platinum Limited ("Sylvania", the "Company" or the "Group")

Third Quarter Report to 31 March 2021

Sylvania (AIM: SLP) is pleased to announce the results for the quarter ended 31 March 2021 ("Q3" or the "quarter"). Unless otherwise stated, the consolidated financial information contained in this report is presented in United States Dollars ("USD").

Achievements

• Sylvania Dump Operations ("SDO") delivered 17,420 4E PGM ounces in Q3 (Q2: 18,363 ounces);
• SDO recorded $74.2 million net revenue for the quarter (Q2: $43.7 million);
• EBITDA of $58.7 million (Q2: $29.1 million);
• Net profit of $41.3 million (Q2: $20.3 million);
• First payment made to employees under the Employee Dividend Entitlement Plan ("EDEP"); and
• Cash balance of $102.1 million (Q2: $67.1 million). Post period end, the Company paid aone-off Windfall Dividend of $14.3 million.

Challenges

• Higher degree of oxidation in some current feed sources, especially at some Western operations, resulting in lower than anticipated PGM recovery efficiencies; and
• Inconsistent supply of RoM material to the Lannex milling plant during the quarter resulted in production challenges that impacted both processing efficiencies and operating costs.

Opportunities

• Mooinooi chrome proprietary processing modifications and optimisation project commissioned during the quarter, in line with expected timetable, with further optimisation work to continue and be completed during Q4;
• Lesedi MF2 project currently in execution with construction remaining on track and commissioning estimated to commence towards the end of Q2 FY2022; and
• The Group remains debt free and continues to maintain strong cash reserves to allow for funding of capital expansion and process optimisation projects; the safeguarding of employees during these times of uncertainty; upgrading the Group's exploration and evaluation assets; and returning value to all stakeholders.

Commenting on the Q3 results, Sylvania's CEO, Jaco Prinsloo said:

"I am pleased with the reported PGM production of 17,420 ounces for Q3 which is historically a lower production quarter for the Group during Sylvania's financial year. This performance is in line with management projections and the Group remains on track to produce approximately 70,000 ounces for the current financial year."

"The Group has benefited from a strong PGM basket price, boosted by the high rhodium price as well as the recent performance of both iridium and ruthenium which contributed to the record profits for quarter. The increase in the dollar

cash operating cost per ounce is largely due to the lower ounce production and fluctuation in the ZAR/USD exchange rate."

"Whilst COVID-19 remains challenging, I am proud of our management's and employees' continued efforts to sustain and enhance the various measures to ensure both the health and safety of all employees and to limit the impact on production."

"Finally, the Company was pleased to pay the Windfall Dividend of $14.3 million on 9 April 2021."

		USD														ZAR
							Unit		Unaudited		Unit
Q2 FY2021		Q3 FY2021		% Change									% Change		Q3 FY2021		Q2 FY2021
										Production
740,783		644,087		-13%			T			Plant Feed		T		-13%			644,087		740,783
2.01		2.14		7%			g/t			Feed Head Grade		g/t		7%			2.14		2.01
317,688		317,883		0%			T			PGM Plant Feed Tons		T		0%			317,883		317,688
3.20		3.21		0%			g/t			PGM Plant Feed Grade		g/t		0%			3.21		3.20
56.22%		53.05%		-6%			%			PGM Plant Recovery		%		-6%			53.05%		56.22%
18,363		17,420		-5%			Oz			Total 4E PGMs		Oz		-5%			17,420		18,363
24,920		23,618		-5%			Oz			Total 6E PGMs		Oz		-5%			23,618		24,920
3,323		4,576		38%			$/oz			Gross basket price1		R/oz		39%			67,874		48,707
										Financials2
40,709		55,310		36%			$'000			Revenue (4E)		R'000		31%			828,149		634,535
1,726		3,899		126%			$'000			Revenue (by-products including		R'000		117%			58,381		26,904
						base metals)
1,262		15,031		1091%			$'000			Sales adjustments		R'000		1044%			225,056		19,668
43,697		74,240		70%			$'000			Net revenue		R'000		63%			1,111,586		681,107
12,305		13,078		6%			$'000			Direct operating costs		R'000		2%			195,821		191,790
614		573		-7%			$'000			General and administrative costs		R'000		-10%			8,574		9,568
29,111		58,736		102%			$'000			Group EBITDA		R'000		94%			879,453		453,748
420		382		-9%			$'000			Net Interest		R'000		-13%			5,716		6,541
20,330		41,316		103%			$'000			Net profit		R'000		95%			618,637		316,887
1,265		1,627		29%			$'000			Capital Expenditure		R'000		24%			24,363		19,716
67,095		102,118		52%			$'000			Cash Balance		R'000		52%			1,502,247		986,406
							R/$			Ave R/$ rate		R/$		-4%			14.97		15.59
							R/$			Spot R/$ rate		R/$		0%			14.71		14.70
										Unit Cost/Efficiencies
662		745		13%			$/oz			SDO Cash Cost Per 4E PGM oz3		R/oz		8%			11,161		10,319
488		550		13%			$/oz			SDO Cash Cost Per 6E PGM oz3		R/oz		8%			8,232		7,604
687		773		13%			$/oz			Group Cash Cost Per 4E PGM oz3		R/oz		8%			11,571		10,701
506		570		13%			$/oz			Group Cash Cost Per 6E PGM oz3		R/oz		8%			8,534		7,886
803		923		15%			$/oz			All-in sustaining cost (4E)		R/oz		10%			13,815		12,522
848		1,027		21%			$/oz			All-in cost (4E)		R/oz		16%			15,375		13,217

The Sylvania cash generating subsidiaries are incorporated in South Africa with the functional currency of these operations being ZAR. Revenues from the sale of PGMs are incurred in USD and then converted into ZAR. The Group's reporting currency is USD as the parent company is incorporated in Bermuda. Corporate and general and administration costs are incurred in USD, GBP and ZAR.

1. The gross basket price (4E) in the table is the March 2021 gross basket used for revenue recognition of ounces delivered in Q3, before penalties/smelting costs and applying the contractual payability.
2. Revenue (6E) for Q3, before adjustments is $59.2 million (6E prill split is Pt 47%, Pd 17%, Rh 9%, Au 0.2%, Ru 21%, Ir 5%)
3. The cash costs include direct operating costs and exclude royalty tax. The Q2 comparative has beenre-stated to exclude royalty tax.

A. OPERATIONAL OVERVIEW

Health, safety and environment

The Company is pleased to report that no significant occupational health or environmental incidents occurred during the quarter and both the Tweefontein and Doornbosch operations have remained at a significant industry milestone of more than eight and a half years Lost-time Injury ("LTI") free. The Lannex operation again achieved one-yearLTI-free during the period.

Impact of COVID-19 and South African Government imposed lockdown regulations

The Company navigated its way through the second wave of infections that emerged in the country towards the end of the previous quarter, assisted by the initiatives implemented by management in the previous financial year. Following the second wave, the Company's overall COVID-19 cases increased to 42, of which 40 employees have now returned to work. Unfortunately, we sadly lost one of our employees from our Eastern operations due to COVID-19 related complications on 18 April 2021. Our thoughts and prayers go out to her family and friends, as well as those that worked closely with her at the plant.

South Africa remains at a further revised Level-3 status as of the beginning of March 2021 and the Group continues to monitor the impact of COVID-19 closely. The Group has recently appointed a new Head of Safety and Security who, alongside the management team, will continue to sustain and enhance the various measures to ensure both the health and safety of all employees and to limit the impact on production. Access to sites remains restricted to employees and essential services required to sustain operational performance. Currently, all plants continue to operate at full capacity and in accordance with all legislated safety and occupational regulations pertaining to the industry and country as a whole.

Operational performance

SDO produced 17,420 ounces in Q3, a 5% decrease compared to 18,363 ounces in Q2 FY2021 but in line with management's projections for the quarter which is historically a lower producing quarter during our financial year. PGM feed tons and PGM feed Grade remained constant quarter-on-quarter, but PGM recovery efficiency declined by 6%, due to the specific ore mix being treated in the quarter.

The 13% lower plant feed tons is a function of approximately 30% less RoM material received during Q3. To mitigate the impact and to ensure that the PGM feed tons remained constant and the PGM plants kept running at capacity, the SDO operations substituted the shortfall in RoM with historical dump material, which typically has a higher percentage of fines that report to the PGM plants. The period post the Christmas mining-break is always associated with a slower ramp-up by the host mines, but RoM production at both the Mooinooi and Lannex operations have improved significantly since March.

The 6% decrease in PGM Recovery efficiencies from the previous quarter was primarily as a result of the lower percentage of fresh RoM and current arisings received during Q3. To a lesser extent this was also associated with slightly lower PGM concentrate mass pull employed to manage concentrate quality and payability. Based on current plant feed sources and concentrate quality, management's philosophy is to ensure that operations balance PGM recoveries versus mass pull and concentrate quality. PGM recovery is expected to remain in the 52% to 54% range during the next financial year.

Total SDO cash costs increased in rand and dollar terms quarter-on-quarter by 8% and 13% respectively to ZAR11,161/ounce and $745/ounce (Q2: ZAR10,319/ounce and $662/ounce). The ZAR:USD exchange rate strengthened 4% during the quarter, which impacted the dollar cost increase, and the lower quarter-on-quarter PGM ounces which impacted unit costs in both rand and dollar. Combined, the effect was a $64/oz increase in SDO cash cost per ounce.

Lower RoM and current arisings tonnages at some of the host mines as announced previously, resulted in the dump operations making short to medium term changes to mitigate the impact which, as expected, had a negative impact on operating costs but supported the PGM ounce production.

The reduced and inconsistent RoM feed tons received at Lannex resulted in the mill sustaining significantly higher than anticipated liner wear which necessitated earlier replacement and inflated the majors and abnormal maintenance costs. It is expected that this was a one-off issue as the host mine ramps up production.

In addition to the aforementioned costs, a number of the SDO suppliers apply annual increases in January of every year impacting the quarter-on-quarter cost per ounce.

The Company made the first bonus payment to employees under the EDEP in January 2021, which was aligned with the declared dividend for the FY2020.

The mineral royalty tax which is calculated as a percentage of PGM revenue remains a significant cost impacting the Group which is enjoying higher PGM basket prices.

SDO incurred capital expenditure of ZAR24.4 million ($1.6 million) during the quarter, which is aligned with planned capital project schedules.

Operational focus areas

In light of the higher cash costs in Q2 and Q3, management is focusing on various initiatives to reduce operating costs, especially to optimise mining costs and associated equipment hire and to optimise the blend of feed sources. While some additional feed sources may attract higher mining costs while host mine RoM production is affected, it does contribute towards stable PGM ounce production and mitigate the impact on life of mine of operations.

In terms of improving the stability of power supply to operations and to minimise resultant operational downtime experienced from time to time, management have evaluated various power mitigation strategies with conceptual designs completed for the three operations most severely impacted in this regard. It is anticipated that these projects can be rolled out during the next three to six months.

Operational opportunities

Optimisation of flotation performance and recovery efficiencies is ongoing and remain a focus area at the Western operations where lower grade and more oxidised open cast RM material is currently being treated as a result of the previously announced scale-down at the host mines.

As the supply of RoM material at Lannex is improving, process optimisation of both the chrome beneficiation and PGM circuits can progress after the commissioning of the new RoM circuit in H1 FY2021. Improved performance on the RoM circuit will assist to lower current operating costs and stabilise PGM production at the operation as well as adding substantial value to the host mine in terms of significant improvement in chrome production.

The Mooinooi chrome proprietary processing modifications and optimisation project to improve fines classification and fine chrome recovery efficiency, as announced earlier, is expected to be fully operational during Q4 where further optimisation work will continue and be completed.

The approved MF2 expansion project at the Lesedi Plant to construct a new secondary milling and flotation module to improve the upgrading and recovery of PGMs, similar to successful Project Echo modules rolled out between 2016 and 2020, has commenced and is scheduled to commission towards the end of H1 FY2022.

B. FINANCIAL OVERVIEW

Financial performance

Revenue (4E) for the quarter increased 36% from $40.7 million to $55.3 million as a result of the increase in the basket price quarter-on-quarter. The gross basket price for the quarter increased 38% from $3,323/ounce in Q2 to $4,576/ounce as a result of the continued rise in the rhodium price. The 6E basket price was further improved by the increase in the iridium and ruthenium prices which hit all-time highs during the past quarter. The sales adjustment includes the revenue adjustment for ounces produced in Q2, but invoiced in Q3 at the higher basket price.

General and administrative costs decreased quarter-on-quarter from $0.61 million to $0.57 million. These costs are incurred in USD, GBP and ZAR and are impacted by the exchange rate fluctuations over the reporting period.

The Group cash balance increased from $67.1 million to $102.1 million during the quarter. Cash generated from operations before working capital movements, was $58.9 million with net changes in working capital amounting to a decrease of $17.1 million, which is mainly due to the increase in trade debtors as a result of the increase in the gross