Highlights

OWENDALE

  • Leading International engineering and construction consultants SNC – Lavalin engaged and scoping studies commenced
  • Hydrometallurgical test work results report excellent extraction of scandium (87%), platinum (82%) nickel (95%) and cobalt (99%) from High Pressure Acid Leach (HPAL) tests
  • Environmental baseline studies and mining lease application requirements currently under review
  • Negotiations to finalise scandium oxide offtake agreements with two Chinese scandium companies has been extended to March 31 and May 31

MARCH 2015 QUARTER PLANS

  • Further prefeasibility and final feasibility studies anticipated to commence immediately after scoping study completion
  • Hydrometallurgical test work program to be completed in January. Results due early February
  • Directors to place some or all of the remaining Rights Issue shortfall shares

SUMMARY

During the quarter leading Inter national science and engineering consultants, SNC – Lavalin Australia, were commissioned to develop and manage a comprehensive hydrometallurgical test work program for the extraction of scandium and associated metals from the Company’s Owendale Deposit in Ne w South Wales, Australia.

The program will provide the basis for a Scoping Study to investigate the initial economic attractiveness, at a +/ – 50% level of accuracy, of several hydrometallurgical options for the development of the resource. Other options to be investigated include direct shipping of ore to a processing plant in China, or a partial processing of a concentrate in Australia.

Hydrometallurgical test work commenced on 11 November 2014. The work included a range of leaching options including sol vent extraction tests which will be used to investigate the preliminary economics and viability of several project options, identifying which of these are the most attractive to take to pre – feasibility and final feasibility stage.

Highly encouraging extraction results of up to 87% for scandium, 82% for platinum, 95% for nickel and 99% for cobalt have been achieved. Solvent extraction tests are now the only laboratory testing remaining to be completed for the hydrometallurgical part of Scoping Study and these should be finished in January.

Other aspects of the Owendale project, including environmental baseline studies and requirements for a mining lease application, are currently being reviewed. These will be formalised and reported this quarter .

In view of the very high grade nature of the Owendale scandium mineralisation and the current high level of intere st and demand worldwide for scandium, the Company will evaluate the Owendale deposit ( for the purposes of future Feasibility Studies and project economics) as a potential Scandium mine with associated platinum credits.

No exploration activities were carried out on other projects in the Company’s portfolio during the quarter, in line with the focus on developing the Owendale dep osit in the shortest possible times.

REVIEW OF OPERATIONS

Owendale Platinum and Scandium Project

The Owendale Project is located in central New South Wales approximately 80km northeast of Parkes and 350km west of Sydney. Owendale represents Australia’s most advanced new platinum development opportunity and the world’s largest, highest – grade laterite – hosted scandium deposit. It is the Company’s aim to fast – track development of the project as soon as practicable. The project is 100% – owned by Pl atina Resources.

The project area overlies freehold pastoral ground and is accessed via gazetted roads. Pre – existing power lines, gas and water pipelines are closely located to the proposed mining operations.

Mineralisation is hosted in lateritic rocks that extend from surface to 55m depth and is underlain by weathered mafic/ultramafic rocks. The platinum , scandium , nickel and cobalt are associated with one another, and the scandium resource overlaps the platinum resource.

Platinum is present as a separate mineral phase referred to as isoferroplatinum (a platinum and iron alloy). Scandium however, is present exclusively as an adsorbed phase within an iron oxide mineral known a s goethite. This form is typical of the scandium mineralisation in laterites.

These two resources are presented independently as eit her could be considered as the focus for development. There is an overlap of these two resources of 11.1 Mt. Details of the technical aspects and the combined resource for the two cut – offs presented is in the technical description of the Company’s ASX rele ase dated 3 October 2013. The blocks contributing to the resource statement are outlined in Figure 1 and Figure 4 where the overlap in the platinum and scandium resource areas is indicated.

The new resource estimate represents a further milestone in the progress of the Owendale project towards potential mining and production.

Scoping Study and Metallurgical Testwork Program

SNC – Lavalin has been engaged to develop, supervise and evaluate the testwork program on a 25kg sample of laterite ore from Owendale . This work include s ore characterisation and preparation, integrated scandium processing testwork (a seri es of hydrometallu rgical tests , including Atmospheric Tank Leaching (ATL) and High Pressure Acid Leaching (HPAL), recovery and purification and tailings neutralisation) and Scandium Recovery Scoping Tests (using solvent extraction) . The testwork is be ing completed at SGS Mi nerals Metallurgy ( Perth) .

Hydrometallurgical testwork, a major part of the scoping study, was completed during the quarter. Highly encouraging extraction results of up to 87% for scandium, 82% for platinum, 95% for nickel and 99% for cobalt have been achieved.

Solvent extraction tests are now the only laboratory testing remaining to be completed for the Scoping Study and thes e should be finished in January.

The testwork results will be incorporated into preliminary process design criteria, including grinding, leaching and neutralisation followed by production of preliminary process flowsheet and mass balance.

Preliminary economics and technical viability of the project options at +/ – 50% cost accuracy will be completed as part of the Scoping Study and a recommendation on which option to take to the feasibility stage.

Off – Take Agreements

The Company continues to seek off – take agreements for the supply of scandium oxide and scandium metal from Owendale.

Currently, Platina has signed heads of agreements (HoA) with two Chinese Scandium producing companies, Inner Mongolia Honfine Zirconium Industry Co Ltd (Honfine ) and Hunan Oriental Scandium Co. Ltd (HNOSC) for the supply of scandium oxide.

The deadline for completion of off – take negotiations has been mutually extended to the 31 March 2015 (HNOSC) and 31 May 2015(Honfine).

Within the past four years scandium oxide (99.9% purity) has sold within a range of USD$1,400 – 3,700 per kilogram.