MD Filed by Filing Services Canada Inc. (403) 717-3898


PLATINUM GROUP METALS LTD.
(An exploration and development stage company)
Consolidated Balance Sheets	Unaudited
(expressed in Canadian dollars)	Nov. 30, 2010	Aug. 31, 2010
ASSETS

CURRENT
Cash and cash equivalents	$ 144,521,772	$ 2,366,136
Amounts receivable (Note 3)	651,655	1,270,548
Prepaid expenses and other assets	47,594	69,382
Assets held for sale (Note 5(c))	951,928	951,928
Total current assets	146,172,949	4,657,994
PERFORMANCE BONDS	160,932	160,376
MINERAL PROPERTIES (Note 4)	117,031,500	116,026,514
FIXED ASSETS (Note 5(a))	333,413	309,417
SURFACE RIGHTS (Note 5(b))	5,837,377	5,836,702
Total assets	$ 269,536,171	$ 126,991,003

LIABILITIES

CURRENT
Accounts payable and accrued liabilities	$ 1,715,920	$ 1,402,938
Due to JOGMEC (Note 4(b))	12,977	423,456
Due to Wesizwe (Note 4(a))	146,074	443,614
Total current liabilities	1,874,971	2,270,008

FUTURE INCOME TAXES	21,822,522	21,822,522
Total liabilities	23,697,493	24,092,530

NON CONTROLLING INTEREST (Note 4(a))	$ 11,450,625	$ 11,149,482

SHAREHOLDERS' EQUITY

Share capital (Note 6)	236,971,081	91,794,123
Contributed surplus	12,729,817	10,929,202
Accumulated other comprehensive income	(3,415,608)	(3,415,608)
Deficit	(11,897,237)	(7,558,726)
Total shareholders' equity	234,388,053	91,748,991
Total liabilities and shareholders' equity	$ 269,536,171	$ 126,991,003
CONTINGENCIES AND COMMITMENTS (NOTE 10)

APPROVED BY THE DIRECTORS:
*"Iain McLean"*
Iain McLean, Director

*"Eric Carlson"*
Eric Carlson, Director




Interim Consolidated Statements of Operations
For the quarter ended November 30, 2010
(Unaudited)
(expressed in Canadian dollars)
	Three Months	Three Months
	Ended	Ended
	Nov. 30, 2010	Nov. 30, 2009

EXPENSES
Amortization	$ 20,436	$ 27,656
Annual general meeting	20,818	42,366
Filing and transfer agent fees	30,727	22,401
Foreign exchange loss (gain)	(185,950)	9,034
Insurance	27,542	25,184
Management and consulting fees	197,969	260,365
News releases, print and mailout	9,024	27,669
Office and miscellaneous	53,400	31,797
Professional fees	223,622	203,130
Promotion	24,866	35,142
Rent	58,147	58,973
Salaries and benefits	388,541	370,556
Shareholder relations	99,295	45,991
Stock compensation expense	3,519,948	137,600
Telephone	16,721	16,053
Travel	148,395	108,048
Recoveries	(70,812)	(59,132)
	(4,582,689)	(1,362,833)
Less interest earned	164,937	35,444
Loss for the period before other items	(4,417,752)	(1,327,389)
Other items:
Realized gain on sale of marketable securities	-	2,100,080
Gain on sale of fixed assets	3,941	1,376
Profit (loss) for the period before income taxes	(4,413,811)	774,067

Future income tax expense	75,300	(181,814)
Profit (loss) for the period	$ (4,338,511)	$ 592,253

Other comprehensive income (loss)
Currency translation adjustment	$ -	$ 202,428
Realized gain on marketable securities	-	(1,258,002)
Unrealized loss on marketable securites	-	165,954
Comprehensive loss for the period	$ (4,338,511)	$ (297,367)

Basic (loss) earnings per common share	$ (0.03)	$ 0.01
Diluted (loss) earnings per common share	$ (0.03)	$ 0.01
Weighted-average number of
common shares outstanding - Basic	125,935,299	92,832,876
Weighted-average number of
common shares outstanding - Diluted	125,935,299	93,361,469



(An exploration and development stage company)
Consolidated Statements of Shareholders' Equity
August 31, 2007, to November 30, 2010 (Unaudited)
(expressed in Canadian dollars)					Retained
					Earnings/Deficit
					accumulated
				Accumulated	during
	Common shares			other	exploration &	Total
	without par value		Contributed	comprehensive	development	shareholders'
	Shares	Amount	surplus	income	stage	equity
Balance, August 31, 2007	60,988,747	52,373,858	3,006,384	(2,365,876)	(22,168,927)	30,845,439
Financial Instrument transition adjustment	-	-	-	1,592,901	-	1,592,901
Issued on exercise of warrants	850,000	1,487,500	-	-	-	1,487,500
Issued on exercise of stock options	760,500	1,334,748	(512,924)	-	-	821,824
Issued for mineral properties net of costs	50,000	163,236	-	-	-	163,236
Stock options granted	-	-	1,288,383	-	-	1,288,383
Translation adjustment	-	-	-	(674,771)	-	(674,771)
Unrealized loss on marketable securities	-	-	-	(821,101)	-	(821,101)
Net loss	-	-	-	-	(5,086,589)	(5,086,589)
Balance, August 31, 2008	62,649,247	55,359,342	3,781,843	(2,268,847)	(27,255,516)	29,616,822
Issuance of common shares and warrants for cash	29,969,770	34,174,382	5,288,917	-	-	39,463,299
Issued on exercise of stock options	196,650	411,592	(129,952)	-	-	281,640
Stock options granted	-	-	2,518,107	-	-	2,518,107
Translation adjustment	-	-	-	428,820	-	428,820
Unrealized gain on marketable securities	-	-	-	864,452	-	864,452
Net loss	-	-	-	-	(6,963,384)	(6,963,384)
Balance, August 31, 2009	92,815,667	89,945,316	11,458,915	(975,575)	(34,218,900)	66,209,756
Issued on exercise of stock options	1,149,125	1,848,807	(694,608)	-	-	1,154,199
Stock options granted	-	-	164,895	-	-	164,895
Translation adjustment	-	-	-	(803,781)	-	(803,781)
Realized gain on marketable securities transferred to income				(1,636,252)		(1,636,252)
Net earnings	-	-	-	-	26,660,174	26,660,174
Balance, August 31, 2010	93,964,792	$ 91,794,123	$ 10,929,202	$ (3,415,608)	$ (7,558,726)	$ 91,748,991
Issuance of common shares for cash	70,150,000	135,365,649	-	-	-	135,365,649
Issued on exercise of stock options	110,000	218,422	(44,422)	-	-	174,000
Issued on exercise of warrants	4,416,900	9,592,887	(1,863,311)	-	-	7,729,576
Stock options granted	-	-	3,708,348	-	-	3,708,348
Net earnings	-	-	-	-	(4,338,511)	(4,338,511)
Balance, November 30, 2010	168,641,692	$ 236,971,081	$ 12,729,817	$ (3,415,608)	$ (11,897,237)	$ 234,388,053


Interim Consolidated Statements of Cash Flows
For the quarter ended November 30, 2010
(Unaudited)
(expressed in Canadian dollars)

	Three Months	Three Months
	Ended	Ended
	Nov. 30, 2010	Nov. 30, 2009
OPERATING ACTIVITIES
Profit (loss) for the period	$ (4,338,511)	$ 592,253
Add items not affecting cash
Amortization	20,436	27,656
Future income tax (recovery) expense	(75,300)	181,814
Realized gain on available-for-sale securities	-	(2,100,080)
Non-cash stock compensation expense	3,519,948	137,600
Net change in non-cash working
capital (Note 11)	546,113	268,942
	(327,314)	(891,815)

FINANCING ACTIVITIES
Performance Bonds	(556)	7,006
Issuance of common shares	143,269,225	36,200
	143,268,669	43,206

INVESTING ACTIVITIES
Acquisition of fixed assets	(44,432)	(27,217)
Acquisition cost of mineral properties	(67,708)	(15,706)
Exploration expenditures, net of recoveries	(673,579)	(11,696)
Investment in and advances to WBJV	-	(184,958)
	(785,719)	(239,577)
Net (decrease) increase in cash and cash equivalents	142,155,636	(1,088,186)
Cash and cash equivalents, beginning of year	2,366,136	32,965,685
Cash and cash equivalents, end of period	$ 144,521,772	$ 31,877,499

The Company is a British Columbia corporation incorporated on February 18, 2002 by an order of the Supreme Court of British Columbia approving an amalgamation between Platinum Group Metals Ltd. and New Millennium Metals Corporation (“New Millennium”). The Company is an exploration and development company conducting work on mineral properties it has staked or acquired by way of option agreements in Ontario, Canada and the Republic of South Africa.

These consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles (“Canadian GAAP”) and include the significant policies outlined below.

The financial statements of entities controlled by the Company through voting equity interest, referred to as subsidiaries, are consolidated. Variable interest entities (“VIEs”), which include, but are not limited to, special purpose entities, trusts, partnerships and other legal structures, as defined by the Accounting Standards Board in Accounting Guideline 15, “Consolidation of Variable Interest Entities”, are entities in which equity investors do not have the characteristics of a “controlling financial interest” or there is not sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. VIEs are subject to consolidation by the primary beneficiary who will absorb the majority of the entities’ expected losses and/or residual returns. The Company does not have any VIEs.

These consolidated financial statements include the accounts of the Company and its principal wholly-owned subsidiaries, Platinum Group Metals (Barbados) Ltd. (PTM B’dos), Platinum Group Metals (RSA) (Pty) Ltd. (“PTM RSA”) (and in turn PTM RSA’s wholly-owned subsidiary Wesplats Holdings (Proprietary) Limited (“Wesplats”) and the 54.75% owned subsidiary Maseve Investments 11 (Pty) Ltd. (“Maseve”). PTM RSA holds mineral rights and conducts operations in the Republic of South Africa. Wesplats owns surface rights areas overlying and adjacent to mineral rights held by PTM RSA and on behalf of the Company. Maseve holds a 100% interest in Projects 1 and 3 of the former Western Bushveld Joint Venture (“WBJV”). All significant intercompany balances and transactions have been eliminated upon consolidation.

Short-term investments, when held, comprise guaranteed investment certificates with original maturities of more than 90 days and less than one year.

Mineral properties, surface rights, and deferred exploration and development costs

Mineral properties consist of exploration and mining concessions, options, contracts and associated surface rights. Surface rights that have no associated mineral title and which are owned by the Company outright are shown separately. Acquisition and leasehold costs, exploration costs and surface rights are capitalized until such time as the property is put into production or disposed of either through sale or abandonment. Development expenditures incurred subsequent to the establishment of economic recoverability and upon receipt of project development approval from the Board of Directors are capitalized and included in the carrying amount of the related property. If put into production, the costs of acquisition, exploration and development will be amortized over the life of the property based on estimated economic reserves. If a property is abandoned, the property and deferred exploration costs are written off to operations.

Management of the Company reviews and evaluates the carrying value of each mineral property and its mineral investments for impairment annually, or more often if indicators of impairment arise. Where estimates of future net cash flows are available and the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset, an impairment loss is recognized and assets are written down to fair value. Where estimates of future net cash flows are not available, management assesses whether the carrying value can be recovered by considering alternative methods of determining recoverable amount. When it is determined that carrying value of a mineral property cannot be recovered it is written down to its estimated fair value.

Cash and cash equivalents consist of cash and short-term deposits, which are readily convertible to cash and have original maturities of 90 days or less.

The Company recognizes the estimated fair value of liabilities for asset retirement obligations including reclamation and closure costs in the period in which they are incurred. A corresponding increase to the carrying amount of the related asset is recorded and amortized over the life of the asset. The liability is adjusted for changes in estimate at each reporting period and is accreted over time to the estimated asset retirement obligation ultimately payable through charges to operations.

The estimates are based on legal and regulatory requirements. It is possible that the Company’s estimates of its ultimate reclamation and closure liabilities could change as a result of changes in regulations, the extent of environmental remediation required, changes in technology and the means and cost of reclamation. Management of the Company has determined that there are no significant reclamation liabilities as at period end.

Future income taxes relate to the expected future tax consequences of differences between the carrying amount of balance sheet items and their corresponding tax values. Future tax assets, if any, are recognized only to the extent that, in the opinion of management, it is more likely than not that the future income tax assets will be realized. Future income tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment or substantive enactment.

Basic earnings (loss) per common share are calculated using the weighted average number of common shares outstanding.

The Company uses the treasury stock method for the calculation of diluted earnings per share. Diluted per share amounts reflect the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted to common shares. In periods when a loss is incurred, the effect of potential issuances of shares under options and share purchase warrants would be anti-dilutive, and accordingly basic and diluted loss per share are the same.

Fixed assets are recorded at cost and are amortized at the following annual rates:

The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of expenditures during the reporting period. Significant items where management’s judgement is applied include the assessment of impairment of long-lived assets, amortization, income tax provisions, contingent liabilities, and stock-based compensation, asset retirement obligations and fair value estimates. Actual results could differ from those estimates.

These consolidated financial statements are expressed in Canadian dollars. For integrated foreign operations, monetary assets and liabilities are translated at year end exchange rates and other assets and liabilities are translated at historical rates. Revenues, expenses and cash flows are translated at average exchange rates. Gains and losses on translation of monetary assets and monetary liabilities are charged to operations.

The fair values for all stock-based awards are estimated using the Black-Scholes model and recorded in operations over the period of vesting. The compensation cost related to stock options granted is recorded in operations or capitalized to mineral properties, as applicable.

Cash received on exercise of stock options is credited to share capital and the amount previously recognized in contributed surplus is reclassified to share capital.

The Company’s financial instruments are comprised primarily of cash and cash equivalents, amounts receivable, amounts due to/from project partners, performance bonds, and accounts payable and accrued liabilities. All financial instruments are recognized initially at fair value. Held-for trading financial assets are measured at fair value with changes in fair value recognized in earnings. Available-for-sale financial assets are also measured at fair value with changes in fair value recognized in comprehensive income until the investment is derecognized or impaired, at which time the amounts in accumulated comprehensive income are recorded in earnings.

Cash and cash equivalents are accounted for as held for trading. Accounts receivable, amounts due to/from project partners, performance bonds and accounts payable and accrued liabilities are measured at amortized cost.

In February 2008, the CICA issued new pronouncements in Section 3064, Goodwill and Intangible Assets, replacing Section 3062, Goodwill and Other Intangible Assets and Section 3450, Research and Development Costs, establishing revised standards for the recognition, measurement, presentation and disclosure of goodwill and intangible assets. The new standard also provides guidance for the treatment of preproduction and startup costs and requires that these costs be expensed as incurred. The new standard applies to annual and interim financial statements relating to fiscal years beginning on or after October 1, 2008. Section 3064 was adopted September 1, 2009, and doing so has had no effect.

In July 2009, the CICA approved amendments to Section 3862, Financial Instruments – Disclosures. The amendments require additional fair value disclosure for financial instruments and liquidity risk disclosures. These amendments require a three-level hierarchy that reflects the significance of the inputs used in making fair value assessments as follows:

Level 1: Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Valuations based on directly or indirectly observable inputs in active markets for similar assets or liabilities, other than Level 1 prices, such as quoted interest or currency exchange rates; and

Level 3: Valuations based on significant inputs that are not derived from observable data, such as discounted cash flow methodologies based on internal cash flow forecasts.

In January 2009, The CICA issued CICA Handbook Section 1582, Business Combinations, Section 1601, Consolidations, and Section 1602, Non-controlling Interests. These sections replace the former CICA Handbook Section 1581, Business Combinations and Section 1600, Consolidated Financial Statements and establish a new section for accounting for a non-controlling interest in a subsidiary. CICA Handbook Section 1582 establishes standards for the accounting for a business combination, and states that all assets and liabilities of an acquired business will be recorded at fair value. Obligations for contingent considerations and contingencies will also be recorded at fair value at the acquisition date. The standard also states that acquisition related costs will be expensed as incurred and that restructuring charges will be expensed in the periods after the acquisition date. The section applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2011.

All three sections must be adopted concurrently. The Company is currently evaluating the impact of adopting the sections.

CICA Handbook Section 1625, has been amended as a result of issuing Sections, 1582 1601 and 1602. These amendments are effective for the Company for its interim and annual financial statements beginning after January 3, 2011. The Company is assessing the impact of these changes on its consolidated financial statements.

In June 2009, the CICA issued amendments to CICA Handbook Section 1506. It was amended to exclude from its scope changes in accounting policies upon the total replacement of an entity’s primary basis of accounting relating to fiscal years beginning on or after July 1, 2009. The adoption of IFRS is not expected to qualify as an accounting change under Section 1506.

On October 26, 2004 the Company entered into the WBJV with a subsidiary of Anglo Platinum Limited (“Anglo”) and Africa Wide Mineral Prospecting and Exploration (Pty) Limited (“Africa Wide”) to pursue platinum exploration and development on combined mineral rights covering approximately 67 square kilometres on the Western Bushveld Complex of South Africa. Later the total area of the WBJV became approximately 72 square kilometres through further property contributions by Anglo. The Company and Anglo Platinum each held a 37% working interest in the WBJV, while Africa Wide held a 26% working interest. The area of the WBJV was comprised of three functional areas described as Project 1 (100% WBJV), Project 2 (50% WBJV: 50% Wesizwe Platinum Ltd.) and Project 3 (100% WBJV). In April 2007 the shareholders of Africa Wide sold 100% of their company to Wesizwe Platinum Ltd (“Wesizwe”) and since then Wesizwe has become responsible for all of the rights and obligations of Africa Wide.

The Company published a Feasibility Study for Project 1 of the WBJV in July 2008 and later an Updated Feasibility Study in October 2009. Based on the WBJV resource estimate contained in the July 2008 Feasibility Study, and under the terms of the original WBJV agreement, each party was allocated an equalization amount due or payable based upon their contribution of measured, indicated, and inferred ounces of combined platinum, palladium, rhodium and gold (“4E”) from their contributed properties. On April 22, 2010 the Company paid an equalization amount due to Anglo in the amount of $ 24.83 million (R 186.26 million).

Also on April 22, 2010, the partners of the WBJV completed a transaction first announced September 2, 2008 whereby the WBJV was dissolved and its underlying assets were reorganized with the following outcomes:

Wesizwe acquired all of Anglo’s rights and interests to the mineral rights underlying the WBJV, retained Anglo’s mineral rights to Project 2, and then transferred all of Anglo’s mineral rights underlying Projects 1 and 3 into project operating company Maseve. The Company also transferred its interests in the mineral rights underlying Project 1 into Maseve, the result being that Wesizwe retained 100% of Project 2 and that Maseve obtained 100% of Projects 1 and 3.

In exchange for its 18.5% of Project 2 the Company effectively received a 17.75% interest in Maseve. The Company also received a 37% interest in exchange for its share of Projects 1 and 3, bringing its holdings in Maseve to 54.75%. Wesizwe received a 45.25 % initial interest in Maseve.

The Company has a right to acquire a further 19.25% interest in Maseve for subscriptions in the amount of R 408.8 million (approx. $59.16 million as of January 11, 2011), thereby allowing the Company to increase its shareholding in Maseve to 74%. The subscription funds paid into Maseve by the Company will be held in escrow to be applied towards Wesizwe’s capital requirements for Projects 1 and 3. The cash subscriptions into Maseve are due by January 17, 2011 or the Company will lose the right to increase its interest to 74%. The Company may make partial subscriptions if it so chooses.

The sale of the Company’s 18.5% interest in Project 2 was accounted for as an arm’s length transaction at a fair value of $65.42 million on April 22, 2010, versus an historic cost of $19.80 million, for a gain of $45.62 million. The transfer of the Company’s 37% interest in Projects 1 and 3 into Maseve was accounted for as a reorganization of existing business and was transferred into Maseve at book cost. The transaction qualified for relief from current taxes payable in accordance with Section 42 of the South African Income Tax Act 58 of 1962.

The fair value of the additional 17.25% interest in Maseve was estimated by calculating the net present value of Project 1 cash flows extracted from the updated feasibility study using independently validated consensus metal prices, a discount rate of 10%, and a Rand to $US exchange rate of 8:1. The fair value estimate is highly sensitive to changes in the key assumptions.

The Company consolidated the financial statements of Maseve from the effective date of the reorganization. The portion of Maseve not owned by the Company is accounted for as a non-controlling interest.



	South Africa

		Tweespalk	War Springs	Other	LDI River	Shelby Lake	South Legris	Other	Total
Acquisition costs
of mineral rights
Balance, beginning of year		$ 83,741	$ 164,953	$ 20,111	$ 598,571	$ 321,856	$ 60,000	$ 23,976	$ 1,273,208
Incurred during period		575	633	-	-	-	-	66,500	67,708
Balance, end of period		$ 84,316	$ 165,586	$ 20,111	$ 598,571	$ 321,856	$ 60,000	$ 90,476	$ 1,340,916

Deferred exploration costs
Assays and geochemical		$ -	$ 9,655	$ 29,854	$ -	$ -	$ -	$ -	$ 39,509
Drilling		-	234,326	159,286	-	-	-	-	393,612
Geological		-	72,585	49,107	-	1,200	-	-	122,892
Maps, fees and licenses		-	-	-	-	-	-	-	-
Site administration		-	35,835	8,331	-	-	-	-	44,166
Travel		-	19,204	27,150	-	-	-	-	46,354
		-	371,605	273,728	-	1,200	-	-	646,533
Balance, beginning of year		893,106	2,271,260	679,853	366,555	648,975	162,168	142,439	5,164,356
Recoveries		-	(371,605)	(266,859)	-	-	-	-	(638,464)
Balance, end of period		$ 893,106	$ 2,271,260	$ 686,722	$ 366,555	$ 650,175	$ 162,168	$ 142,439	$ 5,172,425
Total Other Mineral Properties		$ 977,422	$ 2,436,846	$ 706,833	$ 965,126	$ 972,031	$ 222,168	$ 232,915	$ 6,513,341



	South Africa

		Tweespalk	War Springs	Other	LDI River	Shelby Lake	South Legris	Other	Total
Acquisition costs
of mineral rights
Balance, beginning of year		$ 59,995	$ 144,498	$ 3,321	$ 598,571	$ 313,864	$ 60,000	$ -	$ 1,180,249
Incurred during year		23,746	20,455	16,790	-	7,992	-	23,976	92,959
Balance, end of year		$ 83,741	$ 164,953	$ 20,111	$ 598,571	$ 321,856	$ 60,000	$ 23,976	$ 1,273,208

Deferred exploration costs
Assays and geochemical		$ -	$ 120,284	$ 48,839	$ -	$ -	$ -	$ -	$ 169,123
Drilling		-	839,149	103,373	-	-	-	-	942,522
Geological		971	216,516	368,636	2,800	85,288	8,231	142,439	824,881
Maps, fees and licenses		-	-	-	-	-	-	-	-
Site administration		-	134,210	18,588	-	-	-	-	152,798
Travel		-	78,593	63,658	-	-	-	-	142,251
		971	1,388,752	603,094	2,800	85,288	8,231	142,439	2,231,575
Balance, beginning of year		892,135	2,271,260	632,011	363,755	563,687	153,937	-	4,876,785
Recoveries		-	(1,388,752)	(555,252)	-	-	-	-	(1,944,004)
Balance, end of year		$ 893,106	$ 2,271,260	$ 679,853	$ 366,555	$ 648,975	$ 162,168	$ 142,439	$ 5,164,356
Total Other Mineral Properties		$ 976,847	$ 2,436,213	$ 699,964	$ 965,126	$ 970,831	$ 222,168	$ 166,415	$ 6,437,564

On June 3, 2002, the Company acquired an option to earn a 100% interest in the 2,396 hectare War Springs property and the 2,177 hectare Tweespalk property both located in the Northern Limb or Platreef area of the Bushveld Complex north of Johannesburg. The Company now holds New Order prospecting permits on 100% of this territory. Acquisition and exploration costs on these properties net of recoveries to November 30, 2010 total $3,414,268 (November 30, 2009 - $3,374,745).

The Company can settle the vendors’ residual interests in these mineral rights at any time for US$690 per hectare. The Company pays annual prospecting fees to the vendors of US$3.25 per hectare. The vendors retain a 1% NSR Royalty on the property, subject to the Company’s right to purchase the NSR at any time for US$1.4 million. A 5% finders’ fee applies to vendor payments.

Black Economic Empowerment groups Africa Wide, a subsidiary of Wesizwe Platinum Ltd. and Taung Minerals (Pty) Ltd., a subsidiary of Platmin Limited, have each acquired a 15% interest in the Company’s rights to the War Springs project carried to bankable feasibility. The Company retains a net 70% project interest. Africa Wide also has a 30% participating interest in the Tweespalk property.

On March 5, 2009 the Company announced an agreement with the Japan Oil, Gas and Metals National Corporation (“JOGMEC”), an incorporated administrative institution of the Government of Japan, whereby they may earn up to a 35% interest in the Company’s rights to the War Springs project for an optional work commitment of US$10 million over 5 years. Total expenditures incurred by JOGMEC to November 30, 2010 amounted to approximately $2,556,283 (November 30, 2009 - $1,500,590). An amount of $40,144 in cash received from JOGMEC for work on this project remained to be spent at quarter end and was due to JOGMEC (November 30, 2009 - $295,636 receivable from JOGMEC).

During 2009 the Company acquired by staking various prospecting permits in South Africa including the Sable Joint Venture project area on the Western Limb of the Bushveld Complex west of Pretoria and the Waterberg project area on the far Northern Limb of the Bushveld Complex.

In October 2009 the Company entered an agreement with JOGMEC and Mnombo Wethu Consultants CC (“Mnombo”) whereby JOGMEC may earn up to a 37% interest in the Waterberg project for an optional work commitment of US$3.2 million over 4 years, while at the same time in exchange for matching JOGMEC’s expenditures on a 26/74 basis, Mnombo may earn a 26% interest in the project. If required the Company has agreed to loan Mnombo their first $87,838 in project funding and the Company and JOGMEC may assist Mnombo to acquire commercial loans to fund their ongoing requirements, or may choose to allow Mnombo to defer those costs against their share of future proceeds from the project. Total expenditures incurred by JOGMEC to November 30, 2010 amounted to approximately $822,111 (November 30, 2009 – nil). An amount of $27,167 was receivable from JOGMEC for work on this project at quarter end.

On May 5, 2000, the Company entered into an option agreement to acquire a 50% interest in the Lac des Iles River property located near Thunder Bay, Ontario in exchange for cash payments ($43,500 paid in total) and the completion of exploration expenditures. On October 6, 2006, the Company and the property vendors entered into a termination and sale agreement whereby the option agreement was cancelled and the Company purchased an undivided 100% interest in the property subject only to underlying 2.0% Net Smelter Return Royalties. In settlement the Company made a one-time payment to the vendors of $50,000 in lieu of past and future exploration expenditure commitments not incurred.

In April 2000, and later as amended in January 2005, the Company acquired an option to earn a 50% interest in the South Legris property located near Thunder Bay, Ontario in exchange for cash payments ($105,000 paid in total) and the completion of certain exploration expenditures. On October 13, 2006, the Company and the property vendors entered into a termination and sale agreement whereby the option agreement was cancelled and the Company purchased an undivided 100% interest in the property subject only to underlying 2.0% Net Smelter Return Royalties. In settlement the Company made a one-time payment of $50,000 in lieu of past and future exploration expenditure commitments not incurred.

On June 28, 2000, the Company entered into an option agreement to earn up to 60% interest in the Shelby Lake property, located near Thunder Bay, Ontario in exchange for cash payments of $15,000 (paid), issue 30,303 shares (issued) and complete $500,000 in exploration expenditures over a four-year period. On October 18, 2006, the Company and the property vendor entered into a termination and sale agreement whereby the option agreement was cancelled and the Company purchased an undivided 100% interest in the property for a one-time payment of $5,000 subject only to an underlying 2.0% Net Smelter Return Royalty, of which the Company may buy back one half for $500,000.

The Company has recently staked new properties in the Lac des Isle camp. During the three months ended November 30, 2010 the Company incurred $66,500 in staking costs and has now paid $90,476 in total for staking new claims since mid 2010.

Although the Company has taken steps to verify title to mineral properties in which it has an interest, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title. Property title may be subject to unregistered prior agreements and non-compliance with regulatory requirements.

In 2004 the Company acquired surface and mineral rights to the 365.64 hectare Elandsfontein 102 JQ farm for total payments of approximately $1.4 million. The benefit of these rights became part of the WBJV under the original 2004 agreement. The mineral rights were transferred to project operating company Maseve on April 22, 2010 while the surface rights, valued at half of the original acquisition cost (approx. $715,000), remain under title to the Company. A 45.25% credit of approximately $320,000 was applied to amounts due to/from Wesizwe in recognition of their attributable portion of the surface rights as at April 22, 2010.

During 2008 the Company purchased surface rights adjacent to the WBJV Project 1 deposit area measuring 216.27 hectares for Rand 8.0 million (approx. $1.10 million). The Company also acquired surface rights directly over a portion of the WBJV Project 1 deposit area measuring 358.79 hectares for an amount of Rand 15.69 million (approx. $2.14 million) including legal and interest charges. The rights to these two properties are to the benefit of the Company alone.

In August 2010 the Company entered a purchase agreement for surface rights covering 1,713 hectares overlaying the area of project 1, including accommodation facilities, for Rand 130.0 million ($18.80 million at the time). A deposit of Rand 13.0 million (approx. $1.88 million at the time) was paid to the Vendor. Subsequent to November 30, 2010 the Company exercised its purchase right and paid the purchase price balance due of Rand 117.0 million (approx. $17.06 million at the time). Operating company Maseve has agreed to be assigned the cost and benefit of this property.

During 2008 the Company acquired two rock winders on behalf of the WBJV at a cost of R 16.6 million (approx. $2.3 million) for use on a possible shaft facility for Project 1 of the WBJV. Later designs excluded the use of winders and these winders were held for sale. On April 22, 2010 the Company applied a 45.25% credit for R7.51 million (approx. $1.08 million) to the amount due to/from Wesizwe in recognition of their attributable share of the winders on that date. During the year ended August 31, 2010 the Company sold one winder for US $1.28 million (approx. $1.30 million) of which a non-refundable deposit of 50% was received on June 23, 2010. On November 17, 2010 the Company received the final payment. The second winder continues to be held for sale.

on October 22, 2010 the Company closed a bought deal financing for 61.0 million shares at a price of $2.05 per share for gross proceeds of $125,050,000. The underwriters were granted an over-allotment option for 15% of the shares issued under the offering, also at $2.05 per share. On November 3, 2010 the Company issued a further 9,150,000 shares for gross proceeds of $18,757,500 pursuant to the full exercise of the over-allotment option. The underwriters received a commission of 5.5% of the gross proceeds from the entire offering. The Company also paid other issue costs of $497,526 related to TSX and NYSE Amex filing fees, underwriters’ expenses and legal fees.

the Company closed a 24,999,300 unit brokered private placement on June 16, 2009 for gross proceeds of $35,002,020 at a price of $1.40 per unit. Each unit consisted of one common share and one-half of one common share purchase warrant. Of the gross proceeds $29,713,103 was assigned to the common shares issued and $5,288,917 to the warrants. Each whole warrant entitled the holder to purchase one additional common share at an exercise price of $1.75 until December 16, 2010. Underwriters fees totaled $2,100,121 representing 6% of the aggregate gross proceeds. Other issue costs totaled $746,681 relating to filing fees, underwriters’ expenses and legal fees. Of the warrants a total of 4,416,900 had been exercised as of November 30, 2010. Subsequent to November 30, 2010, a further 8,116,350 of these warrants were exercised. There are no other warrants outstanding.

the Company closed a non-brokered private placement in October 2008 for $7,611,229 upon the issue of 4,910,470 common shares at a price of $1.55 per share. A finders’ fee of $186,000 in cash and a further 60,000 shares at the offering price was paid in respect of certain of the subscriptions. Other issue costs of $117,148 related to TSX and NYSE Alternext filing fees and legal fees.

The Company has entered into Incentive Stock Option Agreements (“Agreements”) with directors, officers and employees. Under the terms of the Agreements, the exercise price of each option is set at a minimum, at the fair value of the common shares at the date of grant. Stock options granted to employees, directors and officers of the Company vest immediately.


		Weighted		Weighted
	Number	Average	Number	Average
	Outstanding at	Remaining	Exercisable at	Exercise Price
Exercise	November 30,	Contractual	November 30,	Exercisable
Price	2010	Life (Years)	2010	Options
1.40	1,359,000	3.70	1,359,000
1.50	9,500	0.11	9,500
1.60	1,392,000	2.88	1,392,000
1.85	175,000	0.73	175,000
1.95	50,000	3.18	50,000
2.10	2,952,500	4.99	2,952,500
2.57	885,000	1.13	885,000
4.15	150,000	1.90	150,000
4.40	850,000	1.90	850,000
	7,823,000	1.56	7,823,000	1.43

The weighted average exercise price of the exercisable options at period end was $2.22.

During the period ended November 30, 2010 the Company granted 2,952,500 stock options (November 30, 2009 – Nil). The Company expensed $3,519,948 (November 30, 2009 - $137,600) relating to stock options granted or vested in the period and capitalized $188,400 to Project 1 of the former WBJV (November 30, 2009 - $27,295), not including future income tax liabilities.

Cash received from the exercise of stock options during the period ended November 30, 2010 totalled $174,000 (November 30, 2009 - $36,200).

The Company used the Black-Scholes model to determine the grant date fair value of stock options granted. The following weighted average assumptions were used in valuing stock options granted during the period ended November 30, 2010:

The Company’s objectives in managing its liquidity and capital are to safeguard the Company’s ability to continue as a going concern and provide financial capacity to meet its strategic objectives. The capital structure of the Company consists of equity attributable to common shareholders, contributed surplus, accumulated other comprehensive income and accumulated deficit.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may issue new shares, issue new debt, acquire or dispose of assets.

In order to facilitate the management of its capital requirements, the Company prepares annual expenditure budgets that are updated as necessary based on various factors, including successful capital deployment and general industry conditions. The annual and updated budgets are approved by the Board of Directors. The Company does not currently declare or pay out dividends.

As at November 30, 2010, the Company does not have any long-term debt and is not subject to any externally imposed capital requirements.

The Company examines the various financial risks to which it is exposed and assesses the impact and likelihood of occurrence. These risks may include credit risk, liquidity risk, currency risk, interest rate risk and other price risks.

Counterparty credit risk is the risk that the financial benefits of contracts with a specific counterparty will be lost if a counterparty defaults on its obligations under the contract. This includes any cash amounts owed to the Company by those counterparties, less any amounts owed to the counterparty by the Company where a legal right of set-off exists and also includes the fair values of contracts with individual counterparties which are recorded in the financial statements.

In order to manage credit and liquidity risk we invest only in term deposits with Canadian Chartered and South African banks that have maturities of three months or less. A South African Bank Rand account held in the United Kingdom is used for holding Rand denominations only, and is controlled entirely by PTM. Deposit limits are also established based on the type of investment, the counterparty and the credit rating.

The Company has in place a planning and budgeting process to help determine the funds required to support the Company's normal operating requirements and its exploration and development plans. The annual budget is approved by the Board of Directors.

Future exploration, development, mining, and processing of minerals from the Company’s properties will require additional financing. The Company has no credit facilities in place at this time, although it is currently evaluating possible debt financing. The only other current source of funds available to the Company is the issuance of additional equity capital, which if available, may result in substantial dilution to existing shareholders. There is no assurance that such funding will be available to the Company, or that it will be obtained on terms favourable to the Company. Failure to obtain sufficient financing may result in delaying or indefinite postponement of exploration, development, or production on any or all of the Company’s properties, or even a loss of property interests.

The Company’s functional currency is the Canadian dollar, while its operations are in both Canada and South Africa; therefore the Company's net earnings (losses) and other comprehensive earnings (losses) are impacted by fluctuations in the value of foreign currencies in relation to the Canadian dollar. The Company's significant foreign currency exposures on financial instruments comprise cash and cash equivalents, performance bonds, accounts receivable, amounts due to Wesizwe, and accounts payable and accrued liabilities. The Company has not entered into any agreements or purchased any instruments to hedge possible currency risks at this time.

The Company's net loss and other comprehensive loss are affected by changes in the exchange rate between its operating currencies and the Canadian dollar. At November 30, 2010, based on this exposure a 10% change in the Canadian dollar versus Rand foreign exchange rate would give rise to a change in income for the quarter presented of approximately $13,244. During the August 31, 2010 year end, a large foreign exchange loss occurred due to the drop in the value of the Rand relative to the Canadian dollar immediately before an equalization payment was made in Rand to Anglo Platinum on April 22, 2010. The foreign exchange loss related to holding this money in Rand prior to this transaction was approximately $1 million. Under normal business operations, large amounts of cash are not held in Rand to reduce the currency risks to the Company.

The Company’s interest revenue earned on cash and cash equivalents and on short term investments is exposed to interest rate risk. At November 30, 2010, based on this exposure a 1% change in the average interest rate would give rise to an increase/decrease in the earnings for the year of approximately $1,445,000.

During the period, $147,605 (Nov. 30, 2009 - $102,384) was paid to non-independent directors for salary, consulting and bonus. During the period, an additional $6,000 (Nov. 30, 2009 - $Nil) was paid to independent directors for annual and meeting fees. At November 30, 2010, $35,290 was included in accounts payable (Nov. 30, 2009 - $Nil).

The Company received $Nil (Nov. 30, 2009 - $33,571) during the period from MAG Silver Corp. (“MAG”), a company with three directors in common. Amounts receivable at the end of the period include an amount of $Nil (Nov. 30, 2009 - $33,087) due from MAG. MAG terminated its service agreement with the Company on December 31, 2009.

During the period the Company accrued or received payments of $25,500 (Nov. 30, 2009 - $Nil) from West Kirkland Mining Inc. (“WKM”), a company with three directors in common, for administrative services. Amounts receivable at the end of the period includes an amount of $35,164 (Nov. 30, 2009 - $Nil).

During the period the Company accrued or received payments of $25,500 (Nov. 30, 2009 - $Nil) from Nextraction Energy Corp. (“NE”), a company with three directors in common, for administrative services. Amounts receivable at the end of the period includes an amount of $20,530 (Nov. 30, 2009 - $Nil).

The Company entered into an office lease agreement with Anthem Works Ltd. (“Anthem”), a company with a director in common in 2005. During the period ended November 30, 2010 the Company accrued or paid Anthem $21,382 under the office lease agreement (Nov. 30, 2009 - $21,836).

All amounts in Amounts receivable and Accounts payable owing to or from related parties are non-interest bearing with no specific terms of repayment.

These transactions are in the normal course of business and are measured at the exchange amount, which is the consideration established and agreed to by the noted parties.

The Company’s remaining minimum payments under its office and equipment lease agreements in Canada and South Africa, which it has entered into for the years ending on August 31, are as follows:

The Company operates in one operating segment, that being exploration on mineral properties. Segmented information presented on a geographic basis follows:

Substantially all of the Company’s capital expenditures are made in the South African geographical segment.

The following events occurred subsequent to period end. These events and other non-material subsequent events may be mentioned elsewhere in these financial statements:

Subsequent to period end 8,116,350 common share purchase warrants have been exercised at a price of $1.75 per share for cash proceeds of $14,203,613 and 3,900 common share purchase warrants expired unexercised. A total of 12,537,150 common share purchase warrants were issued at $1.75 as a part of the placement on June 16, 2009 as described above at note 6. (b)(v). These warrants had an expiry date of December 16, 2010.

Subsequent to period end 77,000 common share stock options have been exercised at $1.40 per share; 9,500 common share stock options have been exercised at $1.50 per share; 50,000 common share stock options have been exercised at $1.60 per share; 15,000 common share stock option exercised at $1.85 per share; as well as 50,000 common share stock option exercised at $1.95 per share. Total cash proceeds received for all 201,500 common share stock options is $327,300.

On December 6, 2010 the Company granted 50,000 incentive stock options at a price of $2.20 per share to an employee; and on January 4, 2011 the Company granted 65,000 incentive stock options at a price of $2.57 per share to two employees; and on January 7, 2011 the Company granted 250,000 incentive stock options at a price of $2.36 per share to a newly appointed specialist advisor who is assisting the Company with commercial banking arrangements related to the Project 1 Platinum Mine capital requirements.

Subsequent to November 30, 2010 the Company exercised its purchase right and paid the purchase price balance due of Rand 117.0 million (approx. $17.06 million at the time). Operating company Maseve has agreed to be assigned the cost and benefit of this property.

The Company is commencing with development of the Project 1 Platinum Mine. The Company exercised its subscription right to go to a 74% project interest by way of a deposit of R 408.813 million ($59.47 million at actual exchange rate) on January 14, 2011 into the project holding and operating company Maseve.


	Nov. 30, 2010	Aug. 31, 2010
Expenditure advances receivable	$ 25,456	$ 8,486
Due from related parties (Note 9 (c) and (d))	55,694	36,089
Goods and services tax recoverable	162,119	126,803
Receivable from sale of assets (Note 6(c))	-	652,864
South African value added tax ("VAT") recoverable	281,894	444,736
Interest receivable	126,492	1,570
	$ 651,655	$ 1,270,548


	Nov. 30, 2010	Aug. 31, 2010
Projects 1 & 3 (a)	$ 110,518,159	$ 109,588,950
Other mineral properties (b)	6,513,341	6,437,564

	$ 117,031,500	$ 116,026,514


	November 30, 2010
		Accumulated	Net Book
	Cost	Amortization	Value
Computer equipment and software	$ 522,083	$ 393,366	$ 128,717
Leasehold improvements	38,641	32,249	6,392
Office furniture and equipment	242,865	118,109	124,756
Vehicles	115,720	42,172	73,548
	$ 919,309	$ 585,896	$ 333,413


	August 31, 2010
		Accumulated	Net Book
	Cost	Amortization	Value
Computer equipment and software	$ 512,682	$ 387,025	$ 125,657
Leasehold improvements	38,641	31,457	7,184
Office furniture and equipment	266,643	137,140	129,503
Vehicles	82,447	35,374	47,073
	$ 900,413	$ 590,996	$ 309,417


		Weighted
		Average
	Number	Exercise
	of Shares	Price
Options outstanding at August 31, 2009	6,149,625	$ 2.04
Exercised	(1,149,125)	1.00
Options outstanding at August 31, 2010	5,000,500	$ 2.28
Granted	2,952,500	2.10
Exercised	(110,000)	1.58
Forfeited	(20,000)	1.84
Options outstanding at November 30, 2010	7,823,000	$ 2.22


Risk-free interest rate				2.16%
Expected life of options				3.78
Annualized volatility				83.17%
Dividend rate				0.00%



	Period Ended	Period Ended
	Nov. 30, 2010	Nov. 30, 2009
Amounts receivable	$ 618,893	$ (299,218)
Prepaid expenses and other	21,788	15,891
Accounts payable	(94,568)	552,269
	$ 546,113	$ 268,942


	November 30,	August 31,
	2010	2010

Canada	$ 147,051,185	$ 5,592,110
South Africa	122,485,000	121,398,893
	$ 269,536,185	$ 126,991,003


	Period Ended	Period Ended
	Nov. 30, 2010	Nov. 30, 2009
Canada	$ (3,911,155)	$ 1,052,948
South Africa	(427,342)	(460,695)
	$ (4,338,497)	$ 592,253