BILLINGS, MT — (Marketwire) — 08/03/11 — (NYSE: SWC)

Record net income of $42.7 million or $0.39 per diluted share; a 192% increase over the same period in 2010

Strong prices for palladium and platinum continue

Improved productivity and higher ore grades result in increased mine production of 142,700 ounces

Increased 2011 production guidance to 515,000 ounces

New four year labor agreement reached

Stillwater Mining Company today reported net income for the 2011 second quarter of $42.7 million, or $0.39 per diluted share, on revenues of $222.6 million. This compares to second quarter 2010 net income of $14.6 million, or $0.15 per diluted share, on revenues of $134.9 million.

For the first six months of 2011, Stillwater reported net income of $78.9 million, or $0.73 per fully diluted share, on revenues of $392.7 million, a 183% increase when compared to net income of $27.9 million, or $0.28 per diluted share, on revenues of $268.3 million, in the same period in 2010.

The Company mines palladium and platinum from two underground mines located in south-central Montana. The mines produced a total of 142,700 ounces of palladium and platinum during the second quarter of 2011, a 26.7% increase from the 112,600 ounces produced during the second quarter of 2010. Production at the Company-s Stillwater Mine increased to 108,900 ounces in the second quarter of 2011, compared to 79,200 ounces in the same quarter of 2010. Production at the Company-s East Boulder Mine was 33,800 ounces in the second quarter of 2011, compared to 33,400 ounces in the same quarter of 2010. Ore tons milled were 12.9% higher in the second quarter of 2011 than in the second quarter of 2010, and higher ore grades in the lower off-shaft area and the contribution of higher grades in the east area of the Stillwater Mine, resulted in higher production for the quarter ended June 30, 2011.

Francis R. McAllister, Stillwater Chairman and CEO, commented, „It is my great pleasure to report a second consecutive record earnings quarter for Stillwater Mining Company. All of our operations are performing well right now, reflecting strong PGM prices, improved productivity, improved cost management and a focus on building for the future. The increase in tons mined during this year-s second quarter, combined with higher realized ore grades, resulted in a 26.7% increase in ounces of mined palladium and platinum produced compared to the same period last year. We continue to benefit from robust PGM, and specifically palladium, market dynamics and believe a favorable outlook continues. While average PGM prices declined slightly during the second quarter from earlier in the year, they have continued to increase significantly on a quarter over quarter comparison.

„Mined production of palladium and platinum for the first two quarters of 2011 has exceeded our original estimates, due primarily to more tons mined than anticipated, improved ore grades in the lower off shaft area of the Stillwater Mine and the resumption of ore production from the higher-grade east side of the mine. Following an excellent first half of 2011, based on updated estimates and other operating assumptions, we have increased our 2011 annual guidance for mined palladium and platinum production to 515,000 ounces from the original guidance of 500,000 ounces for the year. This nominal adjustment to our production guidance takes into consideration mine conditions and development needs during the second half of the year.

„As we announced previously, I am delighted that we were able to conclude a new four-year labor agreement with our represented employees at the Stillwater Mine and at our processing facilities in Columbus, with no work stoppage or interruption in productivity. From my perspective, the relationship between management and employees at our Company has never been stronger. I greatly appreciate all of our dedicated employees who work so hard to make Stillwater successful. Such efforts are very much appreciated.“

Mr. McAllister added, „Development activities are continuing to progress on our Blitz and Graham Creek projects along the J-M Reef here in Montana, as well as on our Marathon PGM-copper project near the north shore of Lake Superior in Ontario, Canada. We have ordered a tunnel-boring machine, or TBM, for use in developing the Blitz project, located just to the east of the Stillwater Mine, and expect it to be up and running by the second quarter of next year. A TBM is already in place for the Graham Creek project, which extends to the west of the East Boulder Mine, and has already made approximately 1,250 feet of progress. Currently it has been idled for maintenance work while we drill out the reef behind it and develop some secondary access. It should be back in operation again around November of this year.

„The Marathon PGM-Cu project in Canada continues on track and is focused on completing the detailed environmental impact assessment that is required before the permitting process can move forward. We also are continuing to drill on the property in order to optimize the final engineering design and are adding to our team of experienced professionals in Canada. Exploration drilling is also in progress on various other claims that we hold in Canada, many of which are situated in the Coldwell Complex where the Marathon project is located. Our goal, given our favorable land position, is to be able to expand the resource base significantly.

„Following the end of the second quarter, on July 11 we announced that we entered into a Canadian Plan of Arrangement to acquire Peregrine Metals Ltd., a Canadian exploration company that is defining a new resource, the Altar porphyry copper-gold deposit, a large undeveloped open-pit resource located in Argentina. Although the porphyry resource is not to the stage where it has proven and probable reserves, it does have a published Canadian National Instrument 43-101 measured and indicated resource of about 7.4 billion pounds of copper and 1.5 million ounces of gold. The NI 43-101 also reports an inferred resource of 4.3 billion pounds of copper and 900,000 ounces of gold.

„The Altar porphyry copper-gold deposit is a high-quality resource opportunity that has the potential to create significant long-term value for Stillwater. Major Andean porphyry deposits are rarely available, and we believe acquiring this particular project in its early stages, at an attractive price, provides potential upside. We believe that near-term value catalysts exist as we finish drilling out the property and more fully define this high-quality copper and gold discovery. Once the transaction is completed the Company-s efforts over the next three to five years at the Altar property will be to more fully define the resource and then produce a feasibility study and a definitive engineering study, which is expected to cost about $25 million per year. We expect to expense these costs as exploration expense until a feasibility study is completed on the Altar project. If the value and opportunity are confirmed we intend to then assess various options for funding the development of the project, including possibly bringing in a joint venture partner to share in the risk of this very large project.

The acquisition is subject to a number of closing conditions and contingencies, including approval by shareholders of the Peregrine acquisition, review and approval under the Investment Canada Act and approval by the British Columbia Supreme Court. Subject to satisfaction of these conditions, closing is expected to occur in the fourth quarter of 2011. Expenses associated with the Peregrine transaction, primarily involving legal, financial advisory and financing costs, will impact the third and fourth quarter results.

„With strong fundamentals behind PGM-s, copper and gold, we believe we are achieving positions of scale in commodity classes that can deliver shareholder value over the long-term. Our ongoing goal is to drive performance at our operating properties, maintain a strong balance sheet and bring to bear the full potential of our pipeline of projects and realize the full value of the underlying commodities.“

Concluding his remarks, Mr. McAllister added, „Recognizing our recent significant acquisitions in Canada, we announced last week that Stillwater Mining Company will begin trading shortly on the Toronto Stock Exchange, adding a second trading platform to our historical presence on the NYSE. The Toronto exchange represents a broad cross-section of today-s active mining companies and will likely allow us to broaden our analyst coverage and increase our exposure among investors. We look forward enthusiastically to building a relationship with shareholders in this important market.“

Combined sales realizations continued to improve during the second quarter of 2011 for mined palladium and platinum ounces, averaging $964 per ounce, significantly higher than the $725 per ounce realized in the second quarter of 2010. The total quantity of mined palladium and platinum sold increased to 136,600 ounces in the second quarter of 2011, compared to 116,700 ounces sold during the same period in 2010, reflecting the increased 2011 production at the Stillwater Mine. The difference between mined ounces produced and mined ounces sold during the quarter is due to normal timing fluctuations for final processing and reflects the Company-s increases in PGM production over the past several quarters.

Total production costs per ounce decreased 9.6% during the second quarter of 2011 compared to the second quarter of 2010. Total cash costs (a non-GAAP measure defined below) averaged $384 per ounce in the second quarter of 2011, compared to total cash costs of $393 per ounce for the same period in 2010. The Stillwater Mine-s total cash costs averaged $367 per ounce in the second quarter of 2011, compared to the $387 per ounce in the second quarter of 2010. This improvement is primarily attributable to strong mine production during the quarter which more than offset the effect of general inflation for wages and materials and higher royalties and ad valorem taxes. The East Boulder Mine costs averaged $442 per ounce during the second quarter of 2011, compared to $407 per ounce during the second quarter of 2010. The major driver of this increase is higher royalties and taxes during the quarter. The Company is maintaining its total cash cost guidance of $430 per mined ounce for the full year 2011.

The Company-s smelting and refining complex in Columbus, Montana processes mine concentrates and recycles spent catalyst material received from third parties. A portion of the recycling material is purchased for the Company-s own account and the balance is toll processed on behalf of others. In total, the Company processed recycling material containing 125,200 ounces of platinum, palladium and rhodium through the smelter and refinery during the second quarter of 2011, up nearly 26.2% above the 99,200 ounces recycled during the second quarter of 2010. The higher volume in 2011 is the result of higher PGM prices and the correspondingly stronger incentive to collect material for recycling which has resulted in additional suppliers of recycled material. The recycling segment had net income for the second quarter of 2011 of $3.4 million (including financing income), flat with net income of $3.4 million in the second quarter of 2010. Higher combined average realizations and higher sales volumes were offset by lower volumes of toll ounces processed and increased costs as a result of modifications to supplier contracts that allow the Company to remain competitive in the recycling business.

At June 30, 2011, the Company-s available cash and cash equivalents (excluding $35.1 million of restricted cash) totaled $105.0 million, up significantly from the $43.3 million available March 31, 2011. Including the Company-s available-for-sale investments, total available cash and investments at June 30, 2011, was $254.9 million, up from the $218.9 million at March 31, 2011 and up $46.5 million, from $208.4 million at the end of last year. Net working capital — comprised of total current assets including available cash and investments, less current liabilities — increased during the second quarter of 2011 to $376.5 million, up from $335.8 million at March 31, 2011, and from $291.2 million at December 31, 2010. Recycling inventories and advances increased by $9.0 million during the quarter.

Net cash provided by operating activities (which includes changes in working capital) totaled $58.8 million in this year-s second quarter, compared to $21.1 million of cash provided by operations in the second quarter of 2010. The increase in cash from operations in the 2011 second quarter mostly reflects the earnings benefit of higher PGM prices. Capital expenditures were $23.1 million in the second quarter of 2011, up from $13.9 million in the second quarter of 2010.

Outstanding debt at June 30, 2011, was $196.0 million, essentially unchanged from March 31, 2011, and December 31, 2010. The Company-s total debt includes $166.5 million outstanding in the form of debentures due in 2028 and $29.5 million of Exempt Facility Revenue Bonds due in 2020.

For the second quarter of 2011, the Company-s mine production was 142,700 PGM ounces including 108,900 ounces from the Stillwater Mine and 33,800 ounces from the East Boulder Mine. For the comparable quarter of 2010, the mines produced 112,600 ounces including 79,200 ounces at the Stillwater Mine and 33,400 ounces at the East Boulder Mine. The sharp increase in production at the Stillwater Mine was attributable to additional tons mined and higher ore grades in the lower off-shaft area and contributions from higher grade ore in the east area of the mine.

Ounces sold from mine production totaled 136,600 ounces in the second quarter of 2011 at an overall average realization of $964 per ounce, up from 116,700 ounces at $725 per ounce in the second quarter of 2010. Mine revenues increased to $139.7 million in the 2011 second quarter from $92.6 million in the same quarter of 2010. The higher 2011 mine revenues resulted from higher volumes of mined ounces sold at significantly higher PGM prices. The Company-s average realization on palladium sales from mine production was $752 per ounce in the 2011 second quarter, compared to $491 per ounce for the same period in 2010. The Company-s average net realization on platinum was $1,769 per ounce in the second quarter of 2011 and $1,526 per ounce in the 2010 second quarter. Comparing these prices to the market, the London Bullion Metals Association afternoon posted prices per ounce for palladium and platinum were $761 and $1,722, respectively, on June 30, 2011, and $446 and $1,532, respectively, on June 30, 2010.

In its recycling activities, the Company processes material purchased from third parties for its own account and toll material that is processed on behalf of others for a fee, normally recovering platinum, palladium and rhodium. During the second quarter of 2011, the Company processed 125,200 total ounces of PGMs from recycled catalytic materials, including both purchased and tolled material. By comparison, in the second quarter of 2010, the Company processed 99,200 ounces of recycled material. The Company delivered for sale a total of 61,300 ounces of platinum, palladium and rhodium from recycled inventories during the second quarter of 2011 at an overall average price of $1,330 per ounce; for the second quarter of 2010, the Company sold 36,700 recycled ounces at an average realization of $1,106 per ounce. The increased level of activity in the second quarter of 2011 reflected a much higher level of PGM recycling activity worldwide as a result of higher metals prices.

Total revenues for the second quarter of 2011 were $222.6 million, up 65.0% from the $134.9 million recorded in the second quarter of 2010. Proceeds from sales of mined PGMs and by-products totaled $139.7 million in the second quarter of 2011, 51.0% higher than the $92.6 million in the same quarter of 2010, again resulting from higher volumes of mined ounces sold and higher PGM prices in the second quarter of 2011. Recycling revenues increased to $82.9 million from $42.3 million in last year-s second quarter. Costs of metals sold (before depreciation and amortization expense) increased to $144.6 million in the second quarter of 2011 from $94.2 million in the second quarter of 2010. Mining costs included in costs of metals sold increased to $65.1 million in the second quarter of 2011 from $55.0 million in the second quarter of 2010. Recycling costs, which primarily reflect the cost of acquiring spent catalytic materials for processing, more than doubled to $79.6 million in the second quarter of 2011, compared to the $39.3 million reported in the second quarter of 2010. The increase was due to higher recycling volumes processed and sold and the higher value of the materials acquired for processing.

Depreciation and amortization expense decreased to $15.7 million in the 2011 second quarter from $16.6 million in the same period of 2010. The decrease is attributable to lower amortization rates per ton in the second quarter of 2011.

General and administrative („G&A“) costs, including marketing, research and development and exploration expenses, increased to $13.4 million in the second quarter of 2011 from $8.1 million in the same period of 2010. Included in G&A costs for the second quarter of 2011 were $2.8 million in marketing expenses, $0.6 million related to research and development efforts and $0.8 million of overhead expenses at the Marathon project. Reported net income for the second quarter of 2011 of $42.7 million included, by business segment, net income of $59.5 million from mining operations and $3.4 million from recycling activities (including financing income), less corporate costs including $13.4 million of G&A expense, $5.7 million income tax provision and $1.2 million of unallocated net interest expense.

The reported net income of $14.6 million for the second quarter of 2010 included, by business segment, a net income of $21.0 million from mining operations and $3.4 million from recycling activities, less corporate costs including $8.1 million of G&A expense and $1.5 million of unallocated net interest expense.

In the first six months of 2011, the Company-s mining operations produced 273,800 PGM ounces including 207,500 ounces from the Stillwater Mine and 66,300 ounces from the East Boulder Mine. For the comparable period in 2010, total mine production of 241,600 ounces included Stillwater Mine production of 175,500 ounces and East Boulder Mine production of 66,100 ounces. Production at the Stillwater Mine has increased due to additional tons mined and higher ore grades in the lower off-shaft area and contributions from the east areas of the mine.

Sales of palladium and platinum from mine production totaled 251,700 ounces in the first six months of 2011 at an overall average realization of $978 per ounce; the same period in 2010 also saw mine production totaling 251,700 ounces at $681 per ounce. The Company-s average realization to date in 2011 on palladium sales from mine production was $767 per ounce, compared to $449 per ounce in the 2010 first half. The comparable average realization on platinum sales of mine production was $1,775 per ounce for the first six months of 2011 and $1,473 per ounce in the first half of 2010.

During the first half of 2011, the Company processed about 240,800 ounces of PGMs from recycled catalytic materials, including both purchased catalyst and toll material processed on behalf of others for a fee. By comparison, in the first six months of 2010, the Company processed about 218,500 ounces of recycled material. Of the purchased catalyst processed, the Company sold a total of 104,000 ounces of platinum, palladium and rhodium during the first half of 2011 at an overall average price of about $1,234 per ounce; for the first half of 2010, the Company sold about 72,700 recycled ounces at an average realization of $1,003 per ounce.

Revenues for the first six months of 2011 totaled $392.7 million, up 46.4% from $268.3 million in the first six months of 2010. Proceeds from sales of mined PGMs totaled $261.7 million in the first half of 2011, up from $187.8 million in the same period of 2010. Recycling revenues increased to $131.0 million from $75.9 million in last year-s first half. Higher total revenue in 2011 was a result of both higher sales volumes and higher PGM prices. There were no sales of purchased metals in the first six months of 2011; in the first half of 2010, sales of purchased metals generated $4.6 million.

Costs of metals sold (before depreciation and amortization expense) increased to $250.1 million in the first six months of 2011, up from $187.7 million in the first half of 2010. Mining costs included in costs of metals sold increased to $125.3 million in the 2011 first half from $112.8 million in the same period of 2010. Recycling costs, largely comprised of the cost to purchase spent catalytic materials for processing, totaled $124.7 million in the first half of 2011, up from $70.3 million in the first six months of 2010. The increase in cost was attributable to the higher value of the contained metals in the material purchased for recycling and the higher volumes purchased. The 2010 first half costs also included $4.6 million for the purchase of 10,000 ounces of palladium for re-sale.

Depreciation and amortization expense decreased to $31.7 million in the first half of 2011 compared to $35.1 million in the same period of 2010. The decrease is attributable to lower amortization rates per ton in 2011.

General and administrative costs (G&A), including marketing, research and development and exploration expenses, totaled $21.1 million for the first six months of 2011 and $14.9 million in the first half of 2010. Included in G&A costs for the first half of 2011 were $3.7 million in marketing expenses, $1.1 million related to research and development efforts and $1.0 million of overhead expenses at the Marathon project.

The Company-s reported net income of $78.9 million for the first six months of 2011 included, by business segment, net income of $105.4 million from mining operations and $6.3 million from recycling activities, less corporate costs including $21.1 million of G&A expense, a $9.8 million income tax provision and $2.5 million of unallocated net interest expense.

The Company-s reported net income of $28.0 million for the first six months of 2010 included, by business segment, net income of $40.1 million from mining operations and $6.3 million from recycling activities, less corporate costs including $14.9 million of G&A expense and $3.0 million of unallocated net interest expense.

Stillwater Mining Company has scheduled its 2011 second quarter results conference call at 10:00 a.m. Mountain Daylight Time (12:00 p.m. Eastern Daylight Time) on August 3, 2011. Dial-in numbers:

United States: (800) 288-8967
International: (612) 332-0107

The conference call will also be simultaneously webcast on the Company-s Web site at in the Investor Relations section.

A telephone replay of the conference call will be available for one week following the event. The replay dial-in numbers are (800) 475-6701 (U.S.) and (320) 365-3844 (International), access code 211536. In addition, the call transcript will be archived in the Investor Relations section of the Company-s Web site.

Stillwater Mining Company is the only U.S. producer of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa and the Russian Federation. The Company-s shares are traded on the New York Stock Exchange under the symbol SWC. Information on Stillwater Mining Company can be found at its Web site: .

Some statements contained in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, therefore, involve uncertainties or risks that could cause actual results to differ materially. These statements may contain words such as „believes,“ „anticipates,“ „plans,“ „expects,“ „intends,“ „estimates,“ „forecast,“ „guidance,“ or similar expressions. These statements are not guarantees of the Company-s future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Such statements include, but are not limited to, comments regarding expansion plans, costs, grade, production and recovery rates, permitting, financing needs, the terms of future credit facilities and capital expenditures, increases in processing capacity, cost reduction measures, safety, timing for engineering studies, and environmental permitting and compliance, litigation, labor matters and the palladium and platinum market. Additional information regarding factors, which could cause results to differ materially from management-s expectations, is found in the section entitled „Risk Factors“ in the Company-s 2010 Annual Report on Form 10-K. The Company intends that the forward-looking statements contained herein be subject to the above-mentioned statutory safe harbors. Investors are cautioned not to rely on forward-looking statements. The Company disclaims any obligation to update forward-looking statements.

The Company utilizes certain non-GAAP measures as indicators in assessing the performance of its mining and processing operations during any period. Because of the processing time required to complete the extraction of finished PGM products, there are typically lags from one to three months between ore production and sale of the finished product. Sales in any period include some portion of material mined and processed from prior periods as the revenue recognition process is completed. Consequently, while costs of revenues (a GAAP measure included in the Company-s Statement of Operations and Comprehensive Income/(Loss)) appropriately reflects the expense associated with the materials sold in any period, the Company has developed certain non-GAAP measures to assess the costs associated with its producing and processing activities in a particular period and to compare those costs between periods.

While the Company believes that these non-GAAP measures may also be of value to outside readers, both as general indicators of the Company-s mining efficiency from period to period and as insight into how the Company internally measures its operating performance, these non-GAAP measures are not standardized across the mining industry and in most cases will not be directly comparable to similar measures that may be provided by other companies. These non-GAAP measures are only useful as indicators of relative operational performance in any period, and because they do not take into account the inventory timing differences that are included in costs of revenues, they cannot meaningfully be used to develop measures of profitability. A reconciliation of these measures to costs of revenues for each period shown is provided as part of the following tables, and a description of each non-GAAP measure is provided below.

: For the Company on a consolidated basis, this measure is equal to consolidated costs of revenues, as reported in the Statement of Operations and Comprehensive Income/ (Loss). For the Stillwater Mine, the East Boulder Mine, and other PGM activities, the Company segregates the expenses within costs of revenues that are directly associated with each of these activities and then allocates the remaining facility costs included in consolidated costs of revenues in proportion to the monthly volumes from each activity. The resulting total costs of revenues measures for the Stillwater Mine, the East Boulder Mine and other PGM activities are equal in total to consolidated costs of revenues as reported in the Company-s Statement of Operations and Comprehensive Income/(Loss).

: Calculated as total costs of revenues (for each mine or consolidated) adjusted to exclude gains or losses on asset dispositions, costs and profit from secondary recycling, and changes in product inventories. This non-GAAP measure provides an indication of the total costs incurred in association with production and processing in a period, before taking into account the timing differences resulting from inventory changes and before any effect of asset dispositions or secondary recycling activities. The Company uses it as a comparative measure of the level of total production and processing activities in a period, and may be compared to prior periods or between the Company-s mines. As noted above, because this measure does not take into account the inventory timing differences that are included in costs of revenues, it cannot be used to develop meaningful measures of earnings or profitability.

When divided by the total tons milled in the respective period, — measured for each mine or consolidated — provides an indication of the cost per ton milled in that period. Because of variability of ore grade in the Company-s mining operations, production efficiency underground is frequently measured against ore tons produced rather than contained PGM ounces. And because ore tons are first actually weighed as they are fed into the mill, mill feed is the first point at which production tons are measured precisely. Consequently, Total Production Cost per Ton Milled (Non-GAAP) is a general measure of production efficiency, and is affected both by the level of Total Production Costs (Non-GAAP) and by the volume of tons produced and fed to the mill.

When divided by the total recoverable PGM ounces from production in the respective period, — measured for each mine or consolidated — provides an indication of the cost per ounce produced in that period. Recoverable PGM ounces from production are an indication of the amount of PGM product extracted through mining in any period. Because extracting PGM material is ultimately the objective of mining, the cost per ounce of extracting and processing PGM ounces in a period is a useful measure for comparing extraction efficiency between periods and between the Company-s mines. Consequently, Total Production Cost per Ounce (Non-GAAP) in any period is a general measure of extraction efficiency, and is affected by the level of Total Production Costs (Non-GAAP), by the grade of the ore produced and by the volume of ore produced in the period.

: This non-GAAP measure is calculated (for each mine or consolidated) as total costs of revenues adjusted to exclude gains or losses on asset dispositions, costs and profit from recycling activities, depreciation and amortization and asset retirement costs and changes in product inventories. The Company uses this measure as a comparative indication of the cash costs related to production and processing in any period. As noted above, because this measure does not take into account the inventory timing differences that are included in costs of revenues, it cannot be used to develop meaningful measures of earnings or profitability.

When divided by the total tons milled in the respective period, — measured for each mine or consolidated — provides an indication of the level of cash costs incurred per ton milled in that period. Because of variability of ore grade in the Company-s mining operations, production efficiency underground is frequently measured against ore tons produced rather than contained PGM ounces. And because ore tons are first weighed as they are fed into the mill, mill feed is the first point at which production tons are measured precisely. Consequently, Total Cash Cost per Ton Milled (Non-GAAP) is a general measure of production efficiency, and is affected both by the level of Total Cash Costs (Non-GAAP) and by the volume of tons produced and fed to the mill.

When divided by the total recoverable PGM ounces from production in the respective period, — measured for each mine or consolidated — provides an indication of the level of cash costs incurred per PGM ounce produced in that period. Recoverable PGM ounces from production are an indication of the amount of PGM product extracted through mining in any period. Because ultimately extracting PGM material is the objective of mining, the cost per ounce of extracting and processing PGM ounces in a period is a useful measure for comparing extraction efficiency between periods and between the Company-s mines. Consequently, Total Cash Cost per Ounce (Non-GAAP) in any period is a general measure of extraction efficiency, and is affected by the level of Total Cash Costs (Non-GAAP), by the grade of the ore produced and by the volume of ore produced in the period.

: This non-GAAP measure is derived from Total Cash Costs (Non-GAAP) for each mine or consolidated by excluding royalty, tax and insurance expenses from Total Cash Costs (Non-GAAP). Royalties, taxes and insurance costs are contractual or governmental obligations outside of the control of the Company-s mining operations, and in the case of royalties and most taxes, are driven more by the level of sales realizations rather than by operating efficiency. Consequently, Total Operating Costs (Non-GAAP) is a useful indicator of the level of production and processing costs incurred in a period that are under the control of mining operations. As noted above, because this measure does not take into account the inventory timing differences that are included in costs of revenues, it cannot be used to develop meaningful measures of earnings or profitability.

When divided by the total tons milled in the respective period, — measured for each mine or consolidated — provides an indication of the level of controllable cash costs incurred per ton milled in that period. Because of variability of ore grade in the Company-s mining operations, production efficiency underground is frequently measured against ore tons produced rather than contained PGM ounces. And because ore tons are first actually weighed as they are fed into the mill, mill feed is the first point at which production tons are measured precisely. Consequently, Total Operating Cost per Ton Milled (Non-GAAP) is a general measure of production efficiency, and is affected both by the level of Total Operating Costs (Non-GAAP) and by the volume of tons produced and fed to the mill.

When divided by the total recoverable PGM ounces from production in the respective period, — measured for each mine or consolidated — provides an indication of the level of controllable cash costs incurred per PGM ounce produced in that period. Recoverable PGM ounces from production are an indication of the amount of PGM product extracted through mining in any period. Because ultimately extracting PGM material is the objective of mining, the cost per ounce of extracting and processing PGM ounces in a period is a useful measure for comparing extraction efficiency between periods and between the Company-s mines. Consequently, Total Operating Cost per Ounce (Non-GAAP) in any period is a general measure of extraction efficiency, and is affected by the level of Total Operating Costs (Non-GAAP), by the grade of the ore produced and by the volume of ore produced in the period.