CANADA: Platmin to early convert to IFRS Standards - 13 July 2009

Platmin to early convert to International Financial Reporting Standards

    TORONTO, July 13 /CNW/ - Platmin Limited (the "Company" or "Platmin",
TSX/AIM: PPN) announces today that Platmin has received an exemption order
from the applicable Canadian securities regulatory authorities to permit
Platmin to report its financial statements for the financial year commencing 1
March 2009, and subsequent interim and annual periods, in accordance with
International Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board ("IASB"). The Canadian Accounting
Standards Board confirmed in February 2008 that IFRS will replace Canadian
GAAP for publicly accountable enterprises for financial periods beginning on
and after January 1, 2011, with the option available to early adopt IFRS from
periods beginning on or after January 1, 2009 upon receipt of approval from
the Canadian securities regulatory authorities. In accordance with the
exemption order, Platmin will also be re-filing its management's discussion
and analysis for the financial year ended 28 February 2009 to include IFRS
related disclosures.

    IFRS Conversion Project

    The Audit Committee has managed the transition from Canadian GAAP to IFRS
and has regularly updated the Board of Directors with the progress of the
conversion project. The IFRS conversion project consists of three primary
phases, which in certain cases will occur concurrently as IFRS is applied in
specific areas:

    -  Impact assessment analysis to isolate key areas that will be impacted
       by the transition to IFRS;

    -  Evaluation to identify specific changes required to existing
       accounting policies, information systems and business processes,
       together with an analysis of policy alternatives allowed under IFRS
       and the development of draft IFRS financial statements; and

    -  Implementation and review to execute changes to information systems
       and business processes and completing formal authorizations.

    Accounting Policy Changes and First-time Adoption of IFRS

    IFRS 1, First-time Adoption of International Financial Reporting
Standards ("IFRS 1") sets forth guidance for the initial adoption of IFRS.
Commencing with the interim period ended 31 May 2009 Platmin will present its
comparative 2009 financial statements for annual and interim in accordance
with IFRS. In addition, the Company will reconcile equity and net earnings
from the previously reported fiscal 2009 Canadian GAAP amounts to the restated
2009 IFRS amounts. IFRS 1 generally requires that first-time adopters
retrospectively apply all IFRS standards and interpretations in effect at 31
March 2009. IFRS 1 also provides for certain optional exemptions and certain
mandatory exceptions to this general principle. Platmin has elected to apply
the following IFRS 1 optional exemptions:

    -  Apply the requirements of IFRS 2, Share-based Payment, only to share
       options granted after 7 November 2002 that have not vested before the
       transition date of 1 March 2008;

    -  Apply the requirements of IFRS 3, Business Combinations, prospectively
       from the transition date of 1 March 2008 and as a result has not
       restated business combinations that took place prior to the 1 March
       2008 transition date;

    -  The cumulative translation differences for all foreign operations are
       deemed to be zero at the transition date of 1 March 2008;

    -  Borrowing costs will be capitalised for assets for which the
       commencement date for capitalization is after 1 January 2009.

    Major Differences between Accounting Policies Under Canadian GAAP and
    IFRS

    The conversion to IFRS will result in differences in recognition,
measurement, and disclosure of balances and transactions in the financial
statements. For Platmin, major accounting policy differences are outlined
below:

    -  Basis of consolidation. Platmin has adopted IAS 27(R) Consolidated and
       Separate Financial Statements (Revised) in accordance with the
       transitional provisions of IFRS 1. As a result, for the year ending
       28 February 2009, shareholders equity will remain unchanged however,
       US$16,617,981 reflecting the minority shareholders interest in
       Platmin's results will be debited to non-controlling shareholders
       interest in order to comply with the disclosure requirements in
       IAS 27(R).

    -  Functional currency and foreign operations. IFRS requires that the
       functional currency of each entity in the consolidated group be
       determined separately in accordance with the indicators as per IAS 21
       and should be measured using the currency of the primary economic
       environment in which the entity operates ("the functional currency").
       The group's functional currency is the South African rand ("ZAR"). The
       consolidated financial statements are presented in United States
       dollars ("US$") which is the group's presentation currency. Under
       IFRS, the results and financial position of all the group entities
       (none of which has the currency of a hyper-inflationary economy) that
       have a functional currency different from the presentation currency
       are translated into the presentation currency as follows:

       -  assets and liabilities for each balance sheet presented are
          translated at the closing rate at the date of that balance sheet;

       -  income and expenses for each income statement are translated at
          average exchange rates (unless this average is not a reasonable
          approximation of the cumulative effect of the rates prevailing on
          the transaction dates, in which case income and expenses are
          translated at the rate on the dates of the transactions); and

       -  all resulting exchange differences are recognized as a separate
          component of equity.

       As a result of the application of translation rules, for the year
       ending 28 February 2009 non-monetary assets, which includes property,
       plant and equipment, mineral rights, exploration and evaluation assets
       and mineral properties, will decrease by US$41,023,552 with a
       corresponding adjustment to the foreign currency translation reserve.

    -  Impairment of assets. Under Canadian GAAP, for assets other than
       financial assets, a write-down to estimated fair value is recognized
       if the estimated undiscounted future cash flows from an asset or group
       of assets are less than their carrying value. IAS 36 requires a
       write-down to be recognized if the recoverable amount, determined as
       the higher of the estimated fair value less costs to sell or value in
       use is less than carrying value. Platmin performed impairment
       assessments as of the transition date and has concluded that there is
       no impairment charge under IFRS as of the transition date and
       28 February 2009.

    -  Share-based payment transactions (IFRS 2). The fair value of share
       options under the employee share incentive schemes and other equity
       instruments granted to the Platmin group employees is recognised as an
       employee expense with a corresponding increase in equity. The fair
       value is measured at grant date and expensed over the period during
       which the employee becomes unconditionally entitled to the equity
       instruments. The total amount to be expensed is determined by
       reference to the fair value of the options granted, excluding the
       impact of any non-market service and performance vesting conditions.
       Non-market vesting conditions are included in assumptions about the
       number of options that are expected to vest. The fair value of the
       instruments granted is measured using the Black-Scholes option pricing
       formula, taking into account the terms and conditions upon which the
       instruments are granted. At each balance sheet date, the entity
       revises its estimates of the number of options that are expected to
       vest based on the non-marketing vesting conditions. It recognises the
       impact of the revision to original estimates, if any, in the income
       statement, with a corresponding adjustment to equity. The proceeds
       received net of any directly attributable transaction costs are
       credited to share capital (nominal value) and share premium when the
       options are exercised. This accounting policy has been applied to all
       equity instruments granted after 7 November 2002 that have not yet
       vested at 1 March 2008. As under IFRS 2, Canadian GAAP also requires
       Platmin to measure stock-based compensation related to stock-options
       granted to employees at the fair value of the options on the date of
       grant and to recognize such expense over the vesting period of the
       option.

    -  Decommissioning and rehabilitation provision. Under Canadian GAAP,
       asset retirement obligations are measured at fair value, incorporating
       market assumptions and discount rates based on the entity's
       credit-adjusted risk-free rate. Adjustments are made to asset
       retirement obligations for changes in the timing or amount of the cash
       flows and the unwinding of the discount. However, changes in discount
       rates alone do not result in a re-measurement of the provision.
       Changes in estimates that decrease the liability are discounted using
       the discount rate applied upon initial recognition of the liability
       while changes that increase the liability are discounted using the
       current discount rate. IFRS requires decommissioning provisions to be
       measured based on management's best estimate of the expenditures that
       will be made and adjustments to the provision are made in each period
       for changes in the timing or amount of cash flow, changes in the
       discount rate, and the accretion of the liability to fair value
       (unwinding of the discount). Furthermore, the estimated future cash
       flows should be discounted using the current rates. As a result, for
       the year ended 28 February 2009, the decommissioning provision will
       increase by US$775,485 with an increase of US$894,170 to the
       decommissioning asset. The remaining US$118,685 represents the
       accretion of the liability which decreases retained earnings.

    Impact of adopting IFRS-IASB on the Key Financial Line Items

    The impact on the consolidated balance sheet as at 28 February 2009 and
the consolidated statement of operations for the year ended 28 February 2009
have been prepared using IFRS and are set out below. These reconciliations
represent an official adoption of IFRS and provide the major differences
identified to date based on management's knowledge and interpretation of the
current IFRS standards and current facts, relative to the Company's historical
financial statements. These reconciliations have also been reviewed by the
Company's Auditors.

                                     February 28,  November 30,      March 1,
                                            2009          2008          2008
                                           $'000         $'000         $'000
                                     ----------------------------------------
    Total assets per Canadian GAAP       409,630       204,876       171,025
    -  Translation differences due to
        the different rules for
        translating non-monetary items   (41,023)      (12,812)       (3,975)
    -  Increase/(decrease) in
        property, plant and equipment
        due to the corresponding
        increase in the decommissioning
        and rehabilitation provision         894          (635)            -
                                     ----------------------------------------
    Total assets per IFRS                369,501       191,429       167,050
                                     ----------------------------------------

    Total liabilities per Canadian
     GAAP                                 76,462        64,449         6,010
    -  Increase/(decrease) to
        decommissioning and
        rehabilitation provision due
        to the difference in the
        discounting method                   776          (641)            -
                                     ----------------------------------------
    Total liabilities per IFRS            77,238        63,808         6,010
                                     ----------------------------------------


                                     February 28,  November 30,      March 1,
                                            2009          2008          2008
                                           $'000         $'000         $'000
                                     ----------------------------------------

    Total shareholders' equity per
     Canadian GAAP                       333,168       140,427       165,015
    -  Foreign currency translation
        difference as a result of the
        translation of the opening
        balances from functional
        currency to reporting currency
        as at the date of transition           -             -        (3,975)
    -  Re-allocation of
        non-controlling interest
        previously included in
        accumulated deficit:
       Non-controlling interest          (16,618)      (15,622)           82
       Accumulated deficit                16,618        15,622           (82)
    -  Movement in foreign currency
        translation reserve due to
        differences upon translation
        accounted for in equity          (38,012)      (39,131)            -
    -  Foreign currency translation
        differences arising from the
        translation of transactions
        recorded in a difference
        currency than the functional
        currency                          (2,893)       26,325             -
                                     ----------------------------------------
    Total shareholders' equity
     per IFRS                            292,263       127,621       161,040
                                     ----------------------------------------


                                     February 28,
                                            2009
                                           $'000

    Net loss per GAAP                     11,018
    -  Translation differences due
        to the different rules for
        translating certain expense
        items                             (5,736)
    -  Profit from transaction with
        minorities, under IFRS
        accounted for in equity            4,549
    Net loss per IFRS                      9,831
    Other Comprehensive income
    -  Exchange differences on
        translating foreign operations   (38,012)
                                     ------------
    Comprehensive (profit)/loss
     per IFRS                            (28,181)
                                     ------------

    About Platmin

    Platmin is an explorer and emerging platinum group metal producer whose
four key projects host mineral resources and reserves: Pilanesberg, Mphahlele,
Grootboom and Loskop. All of Platmin's projects are located in the Bushveld
Complex of South Africa, which is estimated to contain approximately 90% of
global platinum mineral resources.

For further information: Keith Liddell, Chairman, +27 12 661 4280; Wayne
Koonin, Chief Financial Officer, +27 12 661 4280; Fiona Owen, Grant Thornton
UK LLP (Nominated Adviser), +44 207 383 5100; Marion Brower, Russell &
Associates, +27 11 880 3924