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ASX Release

1 October 2009

PLATINUM AUSTRALIA LIMITED

INSTITUTIONAL PLACEMENT OF SHARES

The Board of Platinum Australia Limited ('Platinum Australia' or the 'Company') is pleased to announce that the Company has completed an institutional placement of 37.5 million ordinary shares to raise approximately A$30 million.

 

The placement was priced at A$0.81 per share which represents an 8.5% discount to Platinum Australia's last closing price on ASX and an 8.2% discount to Platinum Australia's 5 day volume weighted average price on ASX, and was heavily oversubscribed.

Settlement of the placement is expected to occur on 7 October 2009, with new shares allotted through the ASX on 8 October 2009 and expected to commence trading on ASX and on AIM that date. The new shares will rank equally with existing shares.

RBC Capital Markets and UBS AG Australia Branch acted as Joint Lead Underwriters and Bookrunners to the placement.

Funds from the capital raising will be used to replace the proceeds that had been intended to be raised from the proposed issue of shares to a Chinese investor in July 2009. The Company confirms that this proposed placement of shares has not settled. The date by which all of the conditions to this transaction were required has passed and Platinum Australia will not issue any shares to this investor as part of this arrangement.

Proceeds from today's raising will also be used to:

• assist with funding requirements for the development of Platinum Australia's Kalahari Platinum Project;

• complete the acquisition of a 70% interest in the Rooderand Project and to advance that interest after the acquisition; ;

• fund further exploration across Platinum Australia's tenements;

• provide enhanced balance sheet and working capital flexibility; and

• position the company to pursue potential acquisition opportunities.

John Lewins, Platinum Australia's Managing Director commented, 'We are extremely pleased with the strong response to today's offering. The placement generated strong support from investors globally which is testament to the quality of Platinum Australia's asset portfolio and the Company's positioning as an emerging quality PGM company.'

'The placement provides Platinum Australia with the funds to advance our existing projects and take advantage of acquisition opportunities which continue to emerge.  Indeed, the Company is currently in negotiations to acquire an interest in a further platinum project located in South Africa, although any agreement to acquire an interest will be subject to due diligence and final negotiation of terms. The project does not have a current resource and the initial outlay to acquire the interest would be minimal in comparison to Platinum Australia's existing asset portfolio, but the asset is strategically located relative to an existing PLA project and would enhance that project. However, there is no guarantee that the negotiations will have a successful outcome and result in an agreement being reached.'

Accordingly, the Company requests that the trading halt on ASX in its shares be lifted.

About Platinum Australia Limited

Platinum Australia is an Australian incorporated company listed on the Australian Securities Exchange (ASX: PLA) and the London Alternate Investment Market (AIM: PLAA).

Platinum Australia operates the Smokey Hills Platinum Mine in South Africa which has a projected average annual production capacity of c.100koz pa 4E PGM. The open pit and underground operation commenced production in early 2009 and is projected to be one of the lowest cost producers in the World. In addition, the Company will shortly release the results of the Pre-Feasibility Study on the Kalahari Platinum Project based on the development of an open pit mine producing and processing 1.5 MTPA of ore to produce up to 130,000 ozs 3E per annum. 

The Company also has a diverse portfolio of advanced PGM projects in South Africa and Australia providing a pipeline of projects for potential development.

Yours faithfully

PLATINUM AUSTRALIA LIMITED

JOHN D LEWINS

Managing Director

Ref: AIM0948JDL:30.3_011009ML

 

John Lewins Managing Director Platinum Australia  +61 08 9324 1491 M: 0419 910 061

Media enquiries UK: Ron Marshman &  John Greenhalgh City of London PR +44 020 7628 5518

AIM Nominated Advisor: Richard Swindells Ambrian Partners Limited +44 207 634 4700

Media enquiries AUS: Sarah Allchurch Allchurch Communications +61 08 9381 6625 M: 0412 346 412

UK Broker: RBC Capital Markets +44 207 653 4000

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