UTM Zone 16 - NAD 83

PLATINUM GROUP METALS LIMITED

ASSESSMENT REPORT

MOSS LAKE PROPERTY

CLAIMS - Thunder Bay Mining Division:

Fluor Island Map Sheet:

Claims: TB 124637, 1246956, 1246959-60,1246971-72 TB 1246978,3014050,3014053 TB 4203181-84

Author: Darin W. Wagner, M.Sc. Date: May 20, 2005 Exploration Manager

R ED MI\Y 2 5 1005

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Table of Contents:

I. Introduction

2. Location and Access ........................................................................... .

3. Property Details 2

4. Exploration History 3

5. Regional Geology 4

6. Geological Mapping and Lithogeochemical Sampling...... .............................. 5 A. Introduction 5 B. Geological Mapping of the Moss Lake Property 6

7. Conclusions and Recommendations. ..................................................... .... 10

8. References....................................................................................... 10

**************

List of Figures

I. Location Map 2

2. Claim Map 4

3. Moss Lake Claims and Geology after McIlwaine and Wallace.............. 5

4. Outcrop Locations and Lithologies. . ... . .. . .. . .. . .. . ... .. . . . . .. . .. . .. . . .. .. . ... . . . . ... 7

5. Outcrop Locations and Lithologies over Total Field Magnetics................ 8

6. Photo - Anorthositic Gabbro.......... ............ ... ....... ............................ 9

********* List of Appendices

1. Appendix 1 Statement of Qualifications

2. Appendix 2 - Statement of Expenditures 2004/05 Mapping Moss Lake Property

PLATINUM GROUP METALS LTD.

MOSS LAKE PROPERTY

ASSESSMENT REPORT - GEOLOGICAL MAPPING

MAY. 2005

Summary

Geological mapping and lithogeochemical sampling was conducted on the Moss Lake Property during the fall of 2004 and spring of 2005. The Moss Lake Property covers a portion of the Proterozoic aged Moss Lake Intrusion. This crudely circular mafic intrusive body is one of a series of Proterozoic aged intrusions in the Lake Superior - Lake Nipigon area believed to have potential to host economic PGE-Ni-Cu mineralization. Work consisted of preliminary geological mapping and lithogeochemical sampling of a portion of the property underlain by a prominent gravity anomaly identified by a gravity survey completed by PTM during the spring of 2005. The work was conducted by contract geologist and was helicopter supported out of Thunder Bay Ontario as there is currently no road access to this portion of the Black Bay peninsula.

1. Introduction

Between May 16 and May 19, 2005 geological mapping was conducted on the Moss Lake Property being contract geologist Justin Johnson and Amy Shute on behalf of Platinum Group Metals Ltd. This mapping supplemented an earlier single day mapping program conducted by the author in early November, 2004. The 2005 program targeted an area toward the southwest comer of the property where a spring 2005 gravity survey had identified a significant positive residual gravity anomaly. Daily travel to a from the property was by helicopter from Thunder Bay, Ontario.

2. Location and Access

The Moss Lake Property is located approximately 80 km northeast of Thunder Bay, Ontario on the north shore of Lake Superior (Figure I). Access to the propelty is limited to float/ski equipped aircraft, helicopter and boat. A number of small lakes and barren hilltops provide access to the entire property. A small log cabin is located on Moss Lake, at the southern end of the property and is available for rent. In addition boats were noted on three other small lakes on the property which apparently belong to a guiding outfitter operating out of Nipigon, Ontario.

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Figure 1: Location Map - Moss Lake Property

3. Property Details

The Moss Lake Property consists of 13 contiguous claim blocks totaling 203 claim units and covering an area of 9109 hectares (Table 1; Figures J and 2). Platinum Group Metals Ltd has an option to earn a lOO% interest in the Moss Lake Property under the terms of an agreement between the company and Mr. Ken Fenwick and partners of Thunder Bay, Ontario. This agreement and a letter of agent is currently on file.

Table 1. Claim details for the Moss Lake Property

Claim # of Approx. Approx. Township/ Original Assessment Numbers Units Area Area Mining Recording Work

(Hectares) (Acres) District Date Due Date

TB-1246937 16 256 632 Fluor Island May 24. 2001 May 24,2005 TB-1246956 16 256 632 Fluor Island May 24, 2001 May 24, 2005 TB-1246959 16 256 632 Fluor Island May 24, 2001 May 24, 2005 TB-1246960 16 256 632 Fluor Island May 24.2001 May 24, 2005

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[TB-1246971 I 16 I

256 632 Fluor Island I May 24, 2001 May 24,2005 I

r TB-1246972 16 ~ 256 632 Fluor Island I May 24, 2001 May 24, 2005 i I TB-1246978 16 256-- 632 . Fluor Island I May 24, 2001

I May 24, 2005 I

ITB-3014050 12 I 192 474 Fluor Island i March 5, 2005 March 5, 2007 I

15 240 593 March 5,2005 March 5, 2007 I I TB-30l4053 I Fluor Island I I TB-4203181 16 256 632 Fluor Island· November 12,2004 November 12, 20061 r TB-4203182 16 I 256 632 I Fluor Island November 12,2004 November 12, 2006 I

I TB-4203183 16 I 256 632 Fluor Island November 12, 2004 November 12, 2006 i

[ TB-4203184 16 : 256 632 Fluor Island I November 12,2004 I November 12, 2006j

4. Exploration History

There is no record of assessment work on the Moss Lake Property prior to the involvement of the underlying vendor in 2001 (see below). Prior to this time it is likely the area was examined for it's copper and silver potential relating to discovery of these styles of mineralization in other, similar lithologies to those in the Black Bay area elsewhere around the Lake Superior basin.

Initial geological mapping of the Black Bay peninsula was completed by Tanton (1936) but was only reconnaissance in nature and did not identify the Moss Lake Intrusion. A compilation map of the northern Lake Superior area, produced under the direction of E. G. Pye for the then Ontario Department of Mines was the first to show an intrusion on the Black Bay peninsula in 1967.

In 1970 the Ontario Department of Mines initiated a field mapping project to re-map the Proterozoic-aged Osler Group, including the Moss Lake Intrusion. The results of this work included the Publication of Prel iminary Maps P. 622-628 (1971) and a subsequent compilation map (2304) which accompanied Geological Report 133 by McIlwaine and Wallace (1976) and which is the most comprehensive map available for the Moss Lake Intrusion (Figure 3). As part of this mapping program a B.Sc. thesis entitled "The Petrology of the Moss Lake Noritic Intrusion" was completed by R.G. Keeler (1971) at the university of Toronto. This report covered a very limited program of reconnaissance mapping, petrography and five whole rock analysis.

The property was staked by Mr. Ken Fenwick and partners of Thunder Bay, Ontario following the discovery of Pt-Pd-Ni-Cu mineralization within a similar aged intrusive body, the Seagull Intrusion, approximately 75 km northwest of the Moss Lake area. The property was subsequently optioned to Avalon Ventures who completed an airborne magnetic survey of the property in March 2002. Avalon subsequently optioned the property to BHP-Billiton Mines who completed a detailed MagneticlEM (Megatem) survey of the property in 2003 and a one day site visit to the property. The Megatem survey identified only weak conductors and both BHP-Billiton and A valon dropped their options of the property, returning it to Mr. Fenwick and partners.

PTM optioned the property from Mr. Fenwick and partners in the fall of 2004 following the discovery in the forementioned Seagull Intrusion of reef-style PGE mineralization. This style of mineralization produces little to no conductivity and thus would, in all likelihood, not have been detected by the geophysical surveys of the property completed to date.

PTM commissioned a ground-based, helicopter-supported gravity survey of the Moss Lake Property in February of 2005 in order to better understand the structure of the intrusion. This survey identified a large, residual gravity anomaly located northeast of Moss Lake. This report contains the results of a mapping program targeting the area underlain by the gravity anomaly.

iIIt .. lr/N,. -.. 5. Regional Geology

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Figure 2: Moss Lake Property Claims

The Moss Lake Intrusion is located within the Nipigon Embayment, a possibly failed, north-south trending, third arm of the Mid-Continent rift system. Within the embayment a Mesoproterozoic sequence of pre-Keweenanwan sedimentary rocks, the Sibley Group, overlays faulted Archean Basement lithologies. The Sibley group is a red-bed sequence dated between 1339 and 1112 Ma with an a maximum aggregate thickness of 420 metres. The Sibley consists of a lower sandstone formation unconformably overlying weathered Archean basement lithologies (Pass Lake Formation). This unit is overlain by shallow water carbonate (Rossport Formation) and shale­mudstone units (Kama Hill Formation).

This Sibley Group is intruded by a series of mafic to ultramafic intrusions, including the Seagull Intrusion, which locally host significant PGE mineralization. The Moss Lake Intrusion, which has never been dated, is potentially coeval with the dunite-peridotite Seagull Intrusion to the north . The Moss Lake Intrusion is intruded into, and locally still capped by volcanic lithologies of the Osler Group dated at roughly 11 10 Ma. The Osler volcanics are in tum both intruded by and capped by diabasic sills of the Nipigon suite which are interpreted to be 1108 Ma in age . Related sills and dykes appear to cut the Moss Lake intrusion giving it an age of lito-II 08 Ma.

The Seagull and Moss Lake Intrusions are part of a suite of Proterozoic aged intrusive rocks, whose emplacement is related to the formation of the Mid-continental rift system, which either

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host or have potential to host economically significant PGE-Ni-Cu mineralization. Other similar aged intrusion would include the Crystal Lake Gabbro located south of Thunder Bay, Ontario, the Duluth Complex located in northern Minnesota, the Eagle and Yellow Dog Intrusion located on Michigan's northern peninsula and the Coldwell Alkalic Complex located to east of the Moss Lake Intrusion near Marathon, Ontario. All told these intrusion represent a significant volume of mafic-ultramafic igneous activity and a very significant metallogenic event.

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Figure 3: - Moss Lake Claims and Geology from McIIwaine and Wallace (1970)

6. Geological Mapping and Lithogeochemical Sampling - 2004/2005 Work Program

A. Introduction

On November 1, 2004 the Moss Lake Property was visited by the author. Access was via helicopter from Thunder Bay, Ontario. Several sites on the property were visited an examined both to confirm the available mapping by Mclwaine and Keeler and also to determine the logistics for the area. Sites mapped are identified by small x's on Figure 4.

Following the completion of the above mentioned gravity survey it was decided to map the area overlaying the gravity anomaly in detail and to collected lithogeochemical samples for specific gravity determinations and geochemical analysis. This program was run under the direction of the author with the work conducted by Mr. Justin Johnson and Ms. Amy Shute, the former a contracting geologist and the latter an M.Sc. student in geology at Lakehead University in Thunder Bay. The mapping program was undertaken utilizing daily helicopter flights to and from the property from a base in Thunder Bay. In total 6 man days were spent examining that portion of the Moss Lake property underlain by the gravity anomaly northeast of Moss Lake and an additional two days plotting the data and preparing the data for inclusion into the companies GIS database.

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B. Geological Mapping of the Moss Lake Property

The oldest rock units in the property area are believed to be mafic and lesser felsic volcanic units of the Osler Group exposed at the northern end of the property. The Moss Lake Intrusion is both intrusive into and locally, toward the southeastern corner of the property, overlain by Osler Group rocks indicating the intrusion is both younger than the Osler Group and only partially unroofed, that the uppermost units of the intrusion are the ones observed on surface.

Initial investigations by the author in November of 2004 indicated that strongly magnetic rocks, within the northwestern portion of the Moss Lake Intrusion were reversely polarized and thus display on standard magnetic maps as magnetic lows. These "ferrogabbro's" are cut by later, diabasic dykes which are normally polarized and produce east-northeast-trending magnetic anomalies. These dykes are believed to be part of the Nipigon suite. The ferrogabbro's are medium-grained and host 3-5% fine-grained magnetite in a plagioclase dominant lithology. Coarse-grained anorthositic rocks were observed at locality #2 and host trace disseminated pyrite.

During November a short traverse was also made across the contact of the Moss Lake Intrusion with the overlaying Osler Group volcanics. Strong potassic (1) alteration of the anorthositic gabbro's of the Moss Lake intrusion was observed in thi s area. The actually contact of the intrusion was not observed but there appears to be a 30-50 metre zone of alteration around the location of the contact. The volcanic rocks in the hanging wall to the intrusion show some evidence of hornfelsing, potassic alteration and weak pyrite development for up to 30 metres from the contact. Minor quartz veining was also observed within these lithologies which appear to be barren of any significant mineralization.

In general the observed lithologies were considerably coarser-grained than expected given the relatively shallow level of emplacement interpreted for the Moss Lake Intrusion. Very little mineralization was observed during this first pass inspection and no samples were collected for analysis.

Between May 14 and 18 Mr. Justin Johnson and Ms. Amy Shute undertook a more detailed mapping program targeting the area of the gravity anomaly around a small unnamed lake northeast of Moss Lake. This program was helicopter supported out of Thunder Bay, Ontario. Sample locations and lithologies are shown on Figures 4 and 5.

Mafic intrusive rocks within the detail map area are dominated by medium to coarse-grained, dark grey gabbro (9G). This rock type would appear to correlate with Keeler's norite and contains <15% olivine, 40-60% plagioclase and lesser pyroxene. No distinction between pyroxene species was made in the field. These rocks are typically weakly magnetic and no significant sulphide mineralization was observed to be associated with them. The gabbroic lithologies appear to correlate with a prominent magnetic low cutting through the central portion of the detailed map area (Figure 5) which marks the center of the gravity anomaly.

Two outcrops of anorthositic gabbro (9AG - Figure 6) similar to that observed by the author were observed in the southeastern portion of the map area. These rocks are typically coarse-grained with >90% sub to euhedral twinned plagioclase grains between 7 and IS mm in size. The rocks are very weakly magnetic and typically devoid of any significant sulphide mineralization. Minor olivine and pyroxene are present.

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Figure 6: Anorthositic Gabbro outcrop - Moss Lake Property

Magnetite rich ferrogabbro ' s (9FG) were observed along a prominent NNE-trending ridge bounding the eastern margin of the map area and in the southwest comer of the map area. The ferrogabbro's are medium-grained, melanocratic with < 30% plagioclase typically and strongly magnetic. Locally minor disseminated pyrite and chalcopyrite are observed associated with grains of fine-grained magneti te which makes up between 3 and 7% of the rock. A prominent magnetic high underlays the eastern ridge and there is some suggestion that this feature and the associated ferrogabbro's may be part of a dyke cutting through the intrusion. Unfortunately contact relationships were not observed in this area so the exact relationship between this feature and the bulk of the Moss Lake Intrusion remains uncertain.

Keeler indicates that the ferrogabbro phase of the intrusion is characterized by very iron rich olivine and pyroxene and that, in general, the magnetite is titaniferous and may contain inclusions of copper-bearing phase bornite, covellite and chalcopyrite.

A very distinctive, pyroxene dominant phase was observed flanking the eastern and western margin of the ferrogab bro . This unit, labeled as a pyroxenite (9Px) in Figures 4 and 5 may be a contact phase of the ferrogabbro dyke. Again the lack of observed contact relationships makes determination of the nature of this unit uncertain . Typically the pyroxenite outcrops are more magnetic than the gabbroic rocks but less magnetic than the ferrogabbro outcrops. No significant mineralization was observed to be associated with this unit which is typically medium-grained .

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Two varieties of mafic dykes were noted during the mapping program. The first was an medium to coarse-grained olivine diabase (I OD) similar to one observed by the author north of the detailed area. This dyke may be up to a few metres thick and due to the limited outcrop in the area is of uncertain orientation. The olivine diabase dyke observed by the author was moderate to strongly magnetic with 3-5% fine-grained disseminated intercumulate magnetite and hosted trace pyrite and chalcopyrite. These dykes are typical of diabasic sills throughout the Nipigon region in containing locally pegmatoidal patches with which the sulphides are commonly associated. They are plagioclase dominant with <15% olivine, and approx. 15-20% pyroxene.

A second, fine-grained, melanocratic dyke (I OMD) was observed by the mappers on the north shore of the small lake mentioned above. This dyke is of uncertain affiliation in being weakly magnetic, very fine-grained and melanocratic.

A total of 33 grab samples were collected from the property and had, at the time of writing, been submitted to ALS-Chemex preparation facilities in Thunder Bay, Ontario for specific gravity determinations, Au-PGE assay and multi-element ICP analysis. These results will be reported separately when available.

7. Conclusions and Recommendations

In summary that portion of the Moss Lake Intrusion and Property mapped in detail during 2005 is dominantly underlain by medium to coarse-grained, weakly magnetic gabbroic (gabbronorite?) lithologies. These lithologies appear to underlay the small lake which is central to the target gravity feature.

To the east and west the gabbroic rocks are flanked by much more strongly magnetic ferrogabbro units which may be later dyke phases, perhaps related to the Pigeon River dyke swarm. Additional mapping is required to determine the field relationships between the ferrogabbro and gabbroic rocks. The pending lithogeochemicaJ results may help to discriminate these two suites.

Only minor sulphide mineralization, similar to that reported by Keeler, was observed in association with the ferrogabbro's on the property and with later diabase dykes.

No apparent source for the residual gravity anomaly was observed during the mapping program. In fact one would expect the more mafic, magnetite-rich ferrogabbro's to be denser than the gabbro and anorthositic gabbro units which occupy the central portion of the map area. The gravity anomaly thus appears to represent something buried deeper in the intrusion than the current level of exposure.

It is recommended, pending receipt of the analytical results from this program, that an additional phase of mapping be undertaken to the northwest of the lake to confirm the presence of the ferrogabbro units there and to attempt to establish the exact relationship between the ferrogabbro's and the more feldspathic lithologies. It is also recommened that the gravity anomaly be drilled tested. A recconnaise of the small island within the lake is recommended to determine is a suitable location for a drill site can be located. Failing that the gravity anomaly could be drill tested from the eastern shore of the lake south of the island or from the ice next winter.

8.0 References

Geology of the Black Bay Penninsula McIlwaine, W.H. and Wallace, H. 1970. Map 2304, Ontario Division of Mines

The Petrology of the Moss Lake Noritic Intrusion, District of Thunder Bay, Ontario - Keeler, R.G. 1971; Unpublished B.Sc. Thesis, University of Toronto 53pg.

II

Assessment Report on the Geology and Overview of the 2002-2003 Exploration Program, Black Bay Property - Rosatelli, M.P. and Muntanion, H.; Ontario Govt:rnment Assessment Files, Thunder Bay, Ontario.

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APPENDIX 1

Certification of Qualifications

I ,Darin W. Wagner of 12211 210th Street, Maple Ridge, B.C. do hereby certify that:

1. I am employed by Platinum Group Metals Limited as Exploration Manager and have been employed by the company and it's predecessor, New Millennium Metals Corporation, since March 2000

2. I have been employed as a practicing geologist since 1991 in British Columbia, Ontario, the Northwest Territories and Overseas

3. I received a B. Sc. degree in Geology from the University of Waterloo in 1989

4. I received an M. Sc. degree in Geology from Carleton University in 1993

5. Am a certified Professional Geoscientist in Ontario (#0227)

6. I have personal knowledge of the facts enclosed and believe them to be true

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APPENDIX 2

Statement of Expenditures

2004-2005 Mapping Program

Moss Lake Property

Thunder Bay Mining Division, Ontario

Moss Lake Property - 2004/2005 Geological Mapping

Field Staffing Oays/# Cost! Total

Darin Wagner 3 $ 375 $ 1,125 Justin Johnson 5 $ 250 $ 1,250 Amy Shute 4 $ 250 $ 1,000

Travel Truck Rental 6 $ 85 $ 510 Fuel 6 $ 15 $ 90 Helicopter 8.7 $ 1,320 $ 11,484 Landing Fees 5 $ 16 $ 80

Field Costs Meals 7 $ 40 $ 280 Domicile (Camp Costs) 2 $ 95 $ 190 Misc Supplies $ 235 Topo Bases 4 $ 150 $ 600

Misc. Costs Map Printing/Copying $ 85 Report Writing 1.5 $ 375 $ 563

Sub-total $ 17,492