Financial Results: Half Year to 31^st December 2009

The loss for the half year of $10,558,722 (2008: $4,909,409) represents the first full half year of operation of the Smokey Hills Mine. During the half, open pit mining was completed and consequently all of the overburden removal costs ($8,070,809) were written off as part of cost of sales during the period.

The result was also influenced by the purchase of an interest in the Rooderand exploration property on the western limb of the Bushveld in South Africa. The company's policy in regard to exploration properties is to write off all amounts relating to the purchase and exploration of properties until such time as there is a positive Definitive Feasibility Study in relation to the area in question. As a consequence, included in exploration expenses of $2,921,109 for the period is the write off of the purchase price of $2,025,536.

During the period, the platinum and palladium hedge book associated with Smokey Hills project debt provided by Standard Bank was closed, realising $18,959.593, which funds together with funds raised from equity raisings and a loan facility from Macquarie Bank were utilised to retire the project debt. In accordance with the hedge accounting standard the amount realised has not been reflected in income, but is retained in the Hedge Accounting Reserve and transferred to income over the period of time that the hedge contracts would have matured had they not have been terminated early.

Review of Operations

Smokey Hills Platinum Project

Mining

The New Order Mining Right was granted in November 2007 and construction commenced the same month.  Open pit mining commenced in January 2008 and underground mining commenced in September 2008.

During the period under review a total of 170,045 tonnes of ore were mined from the open pit and 136,035 tonnes of ore from underground operations. Mining of the open pit was completed on December 18^th. Underground mining operations focus on the development of the six main access adits, while stoping production commenced in September 2009.

Ramp up of underground production and especially stoping production was slower than planned, due to a pothole being encountered between adits 4 and 5 over a strike length of approximately 125 metres. This will continue to impact on stope tonnage during the 3^rd quarter; however modifications of the design in this area will enable approximately 80% of the ore affected by the pothole to be recovered in the second half of the year.

Processing

The ramp up of production continued during the period and 310,552 tonnes of ore, equating to ~86% of design capacity was processed through the plant. Due to the slower ramp up of underground mining, a higher proportion of oxidised material from the open pit was processed which negatively affecting recoveries and production during the period.

Production Statistics

Throughput                310,552t

Head Grade               3.56 g/t 4E

Recovery                    62.7 %

4EPGM shipped         20,675 ozs

Cash Costs                ZAR 421/tonne milled

Kalahari Platinum Project

The Pre Feasibility Study for the Kalplats Project was completed during the half and showed the project to be commercially and technically viable and able to generate a return of 25% on the Base Case assumptions. The key results from the study were as follows:

·      The Project would deliver a return of 25%;

·      The Project would achieve a pre tax NPV10 of US$50 Million;

·      The Project would generate a net cash flow (undiscounted) of US$145 Million;

·      Initial Capital Cost of the Project would be US$91 Million;

·      Cash Operating Cost of US$340/oz 4E (platinum + palladium + rhodium + gold) concentrate produced (net of base metal credits);

·      The Project would produce over 1 Moz 4E over a 9 year operating life from open pit mining of four deposits, Crater, Orion, Crux and Vela.

A full summary of the results of the PFS are provided in Table 1 below and the underlying assumptions relating to the metal process and exchange rates are provided in Table 2.

Table 1  Summary of Results from Kalplats PFS

Table 2  Metal Price and Exchange Rate Assumptions

Kalahari Platinum Project Cont.

Following the completion of the Pre Feasibility Study work commenced on the Definitive Feasibility Study ("DFS"). The DFS will be based on an expanded resource, with open pit mining on seven of the eight identified deposits

DRA has been appointed as the Lead Engineer for the DFS, other consultants involved in the study include Coffey Mining, Lower Quartile Solutions, Africa Geo-Active Services and Digby Wells and Associates.

It is anticipated that the DFS will be completed in March 2010.

Rooderand Project

The Prospecting Right for the Rooderand Project was issued in late November and by the end of the month PLA had commenced the resource definition diamond drilling program.

PLA currently has two diamond drill rigs working on the property and expects this to increase to three during the March Quarter. A program of approximately 100 diamond drill holes is planned and it is expected that this will be completed in the September Quarter 2010.

A Pre Feasibility Study on the project will commence in the March Quarter with DRA as the Lead Engineer.

Stellex North Project

The Stellex North Project is located immediately to the north of the Kalplats Area of Influence ("Aol") Project and covers approximately 26 kms of strike length of the Kraaipan Greenstone belt. PLA and its BEE partner, Batsalani Mining and Resources were awarded a Prospecting Right covering the project in June 2008. PLA as the manager of the project has to date undertaken regional mapping and some soil geochemical survey work.

The partners have now signed an agreement with JOGMEC under which JOGMEC will earn an initial 35% interest in the project by providing US$3.5 million for exploration over a four year period.

Panton Platinum Palladium Project

The Panton Project is located in the Kimberley region of Western Australia, 60 km north of Halls Creek. The Project has a JORC compliant resource of 14.3 Mt at 5.2 g/t 7E PGM (platinum + palladium + rhodium + ruthenium + iridium+ osmium + gold) containing 2.4 million ounces 7E PGM, including a high grade resource of 10.1 Mt at 6.1 g/t 7E PGM containing 2 million ounces 7E PGM.

PLA completed a detailed feasibility study in August 2003 which found that the project was technically feasible but not commercially viable at the prevailing metal prices and US$ exchange rate.

The Project has been placed on hold pending a significant improvement in PGM prices.

Corporate

In July 2009 PLA completed a placement of 24,667,171 fully paid ordinary shares at $1.02 for $25,160,516. As part of this placement PLA were to place a further 30,000,000 fully paid ordinary shares at $1.02 to a Chinese investor. As the Chinese investor did not receive its Chinese regulatory approvals in a timely manner, this tranche of the placement did not proceed.

The funds from the above placement were to be utilised partly to repay the Smokey Hills project debt with Standard Bank of South Africa and close the associated hedge book. Due to the non receipt of funds from the Chinese investor, in August 2009 PLA entered into a A$15m Bridging Facility with Macquarie Bank Ltd on the following substantive terms.

The Facility is repayable in full by 31 August 2011, with no penalty for early repayment and carries an interest rate of 8% per annum with a Facility Fee of 1.75%.  The Facility is secured by a floating charge over the assets of PLA.

In addition, PLA will issue to MBL 1,428,571 options over ordinary shares in PLA, exercisable at $1.05 per share. Should the Facility not be repaid by the following dates, then additional tranches of options over ordinary shares in PLA  exercisable at $1.05 will be issued to MBL as detailed below:-

31 December 2009                             1,428,571 options

31 March, 2010                                 1,428,571 options

30 June, 2010                                      1,428,571 options

30 September, 2010                           1,428,571 options

All the above options will have an expiry date of 31 August 2011.  This results in options being issued for a minimum of 10% of the Facility value and a maximum of 50% of the Facility value.

In October 2009 PLA completed a further placement of 37,500,000 fully paid ordinary shares at 81cents per share for $30,375,000.