quicklinks...

QuickLinks--ClickheretorapidlynavigatethroughthisdocumentAsfiledwiththeSecuritiesandExchangeCommissiononOctober14,2016.

RegistrationNo.333-213985

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION

WASHINGTON,D.C.20549

AmendmentNo.1to

FORMF-10REGISTRATIONSTATEMENTUNDER

THESECURITIESACTOF1933

PLATINUMGROUPMETALSLTD.(ExactnameofRegistrantasspecifiedinitscharter)

BentallTower5,550BurrardStreet,Suite788,Vancouver,BritishColumbia,CanadaV6C2B5,(604)899-5450(AddressandtelephonenumberofRegistrant'sprincipalexecutiveoffices)

DLServicesInc.,701FifthAvenue,Suite6100,Seattle,WA98104,(206)903-8800(Name,address(includingzipcode)andtelephonenumber(includingareacode)ofagentforserviceintheUnitedStates)

Copiesto:

ChristopherL.DoerksenDorsey&WhitneyLLP

701FifthAvenueSuite6100

Seattle,WA98104USA

(206)903-8800

Approximatedateofcommencementofproposedsaleofthesecuritiestothepublic:FromtimetotimeaftertheeffectivedateofthisRegistrationStatement.

ProvinceofBritishColumbia(Principaljurisdictionregulatingthisoffering)

Itisproposedthatthisfilingshallbecomeeffective(checkappropriateboxbelow):

BritishColumbia(ProvinceorotherJurisdictionofIncorporationorOrganization)

1099(PrimaryStandardIndustrialClassificationCodeNumber)

NotApplicable(I.R.S.EmployerIdentificationNumber,

ifapplicable)

A. o uponfilingwiththeCommission,pursuanttoRule467(a)(ifinconnectionwithanofferingbeingmadecontemporaneouslyintheUnitedStatesandCanada).

B.ý

atsomefuturedate(checktheappropriateboxbelow)

1.

opursuanttoRule467(b)on()at()(designateatimenotsoonerthan7calendardaysafterfiling).

2.

opursuanttoRule467(b)on()at()(designateatime7calendardaysorsoonerafterfiling)becausethesecuritiesregulatoryauthorityinthereviewjurisdictionhasissuedareceiptornotificationofclearanceon().

3.

ýpursuanttoRule467(b)assoonaspracticableafternotificationoftheCommissionbytheRegistrantortheCanadiansecuritiesregulatoryauthorityofthereviewjurisdictionthatareceiptornotificationofclearancehasbeenissuedwithrespecthereto.

4.

oafterthefilingofthenextamendmenttothisForm(ifpreliminarymaterialisbeingfiled).

IfanyofthesecuritiesbeingregisteredonthisFormaretobeofferedonadelayedorcontinuousbasispursuanttothehomejurisdiction'sshelfprospectusofferingprocedures,checkthefollowingbox.ý

TheRegistrantherebyamendsthisRegistrationStatementonsuchdateordatesasmaybenecessarytodelayitseffectivedateuntil theRegistrationStatementshallbecomeeffectiveasprovidedinRule467undertheSecuritiesActof1933oronsuchdateastheCommission,actingpursuanttoSection8(a)oftheAct,maydetermine.

PARTI

INFORMATIONREQUIREDTOBEDELIVEREDTOOFFEREESORPURCHASERS

I-1

Information has been incorporated by reference in this short form base shelf prospectus from documents filed with securities commissions or similar authorities in Canada. Copies of the documentsincorporated herein by reference may be obtained on request, without charge, from the Corporate Secretary of Platinum Group Metals Ltd. at Suite 788, 550 Burrard Street, Vancouver, British Columbia,Canada, V6C 2B5, telephone (604) 899-5450 and are also available electronically at www.sedar.com.

SHORTFORMBASESHELFPROSPECTUS

PLATINUMGROUPMETALSLTD.US$250,000,000

CommonSharesDebtSecurities

WarrantsSubscriptionReceipts

Units

PlatinumGroupMetalsLtd.(the"Company")mayofferandsell,fromtimetotime(the"Offerings"),commonsharesoftheCompany("CommonShares"),debtsecurities("DebtSecurities"),warrantstopurchaseCommonShares("Warrants"),subscriptionreceipts("SubscriptionReceipts")oranycombinationofsuchsecurities("Units")(alloftheforegoingcollectively,the"Securities")uptoanaggregateinitialofferingpriceofUS$250,000,000(oritsequivalent inCanadiandollars) duringthe25-monthperiodthat this short formbaseshelf prospectus (this "Prospectus"), includinganyamendments hereto,remainseffective.Securitiesmaybeofferedinamounts,atpricesandontermstobedeterminedbasedonmarketconditionsatthetimeofsaleandsetforthinanaccompanyingprospectussupplement(a"ProspectusSupplement"). Inaddition, Securities maybeofferedandissuedinconsiderationfor theacquisitionofotherbusinesses,assetsorsecuritiesbyusoroneofoursubsidiaries.TheconsiderationforanysuchacquisitionmayconsistofanyoftheSecuritiesseparately,acombinationofSecuritiesoranycombinationofamongotherthings,Securities,cashandassumptionofliabilities.

InvestingintheSecuritiesinvolvessignificantrisks.Prospectiveinvestorsshouldcarefullyconsidertheriskfactorsdescribedundertheheading"RiskFactors"inthisProspectus,intheapplicableProspectusSupplementwithrespecttoaparticularOfferingandinthedocumentsincorporatedbyreferencehereinandtherein.

TheOfferings aremadebyaCanadianissuerthat is permittedunderamultijurisdictional disclosuresystemadoptedbysecurities regulatoryauthoritiesinCanadaandtheUnitedStates(the"MJDS")topreparethisProspectusinaccordancewithCanadiandisclosurerequirements.Prospectiveinvestors in the United States should be aware that such requirements are different from those applicable to issuers in the United States. Financialstatements incorporated herein by reference have been prepared in accordance with International Financial Reporting Standards, as issued by theInternationalAccountingStandardsBoard("IFRS"),andmaybesubjecttoCanadianauditingandauditorindependencestandards,andthusmaynotbecomparabletofinancialstatementsofUnitedStatescompanies.

ProspectiveinvestorsshouldbeawarethattheacquisitionoftheSecuritiesmayhavetaxconsequencesbothintheUnitedStatesandinCanada.Suchconsequencesforinvestorswhoareresidentin,orcitizensof,theUnitedStatesorwhoareresidentinCanadamaynotbedescribedfullyhereinorinanyapplicableProspectusSupplement.ProspectiveinvestorsshouldreadthetaxdiscussioncontainedintheapplicableProspectusSupplementwithrespecttoaparticularOfferingandconsulttheirowntaxadvisorswithrespecttotheirownparticularcircumstances.

TheenforcementbyinvestorsofcivilliabilitiesundertheU.S.federalsecuritieslawsmaybeaffectedadverselybythefactthattheCompanyisincorporatedororganizedunderthelawsofBritishColumbia,Canada,thatthemajorityoftheCompany'sofficersanddirectorsandsomeoralloftheexpertsnamedinthisProspectusareresidentsofacountryotherthantheUnitedStates,andthatasubstantialportionoftheassetsoftheCompanyandsaidpersonsarelocatedoutsidetheUnitedStates.

Neither the United States Securities andExchange Commission (the "SEC") nor any state or Canadian securities regulator has approved ordisapprovedof the Securities, passeduponthe accuracy or adequacyof this Prospectus or determinedif this Prospectus is truthful or complete. Anyrepresentationtothecontraryisacriminaloffense.

NEWISSUE OCTOBER14,2016

NounderwriterhasbeeninvolvedinthepreparationofthisProspectusorperformedanyreviewofthecontentofthisProspectus.

ThespecifictermsoftheSecuritieswithrespecttoaparticularOfferingwillbesetoutintheapplicableProspectusSupplementandmayinclude,whereapplicable(i)inthecaseofCommonShares,thenumberofCommonSharesoffered,theofferingprice,whethertheCommonSharesarebeingofferedforcash,andanyothertermsspecifictotheCommonSharesbeingoffered,(ii)inthecaseofDebtSecurities,thespecificdesignation,theaggregateprincipalamount,thecurrencyor the currencyunit for whichthe Debt Securities maybe purchased, the maturity, theinterest provisions, the authorizeddenominations, theofferingprice, whether the Debt Securities are being offered for cash, the covenants, the events of default, any terms for redemption or retraction, any exchange orconversionrightsattachedtotheDebtSecuritiesandanyothertermsspecifictotheDebtSecuritiesbeingoffered,(iii)inthecaseofWarrants,theofferingprice,whethertheWarrantsarebeingofferedforcash,thedesignation,thenumberandthetermsoftheCommonSharesorDebtSecuritiespurchasableuponexerciseoftheWarrants,anyproceduresthatwillresultintheadjustmentofthesenumbers,theexerciseprice,thedatesandperiodsofexercise,thecurrencyinwhichtheWarrantsareissuedandanyothertermsspecifictotheWarrantsbeingoffered,(iv)inthecaseofSubscriptionReceipts,thenumberofSubscriptionReceiptsbeingoffered,theofferingprice,whethertheSubscriptionReceiptsarebeingofferedforcash,theproceduresfortheexchangeoftheSubscriptionReceiptsforCommonShares,DebtSecuritiesorWarrants,asthecasemaybe,andanyothertermsspecifictotheSubscriptionReceiptsbeingoffered,and(v)inthecaseofUnits,thedesignation, number and terms of the Common Shares, Warrants, Subscription Receipts or Debt Securities comprising the Units. Where required by statute,regulationorpolicy,andwhereSecuritiesareofferedincurrenciesotherthanCanadiandollars,appropriatedisclosureofforeignexchangeratesapplicabletotheSecuritieswillbeincludedintheProspectusSupplementdescribingtheSecurities.

ThisProspectusdoesnotqualifyforissuancedebtsecuritiesinrespectofwhichthepaymentofprincipaland/orinterestmaybedetermined,inwholeorinpart, by reference to one or more underlying interests, including, for example, an equity or debt security, or a statistical measure of economic or financialperformance(including,butnotlimitedto,anycurrency,consumerpriceormortgageindex,orthepriceorvalueofoneormorecommodities,indicesorotheritems, or anyother itemor formula, or anycombination or basket of the foregoingitems). For greater certainty, this Prospectus mayqualify for issuancedebtsecurities,includingDebtSecuritiesconvertibleintootherSecurities,inrespectofwhichthepaymentofprincipaland/orinterestmaybedetermined,inwholeorinpart,byreferencetopublishedratesofacentralbankingauthorityoroneormorefinancialinstitutions,suchasaprimerateorbankers'acceptancerate,ortorecognizedmarketbenchmarkinterestratessuchasLIBOR,EURIBORoraU.S.federalfundsrate.

AllshelfinformationpermittedunderapplicablelawstobeomittedfromthisProspectuswillbecontainedinoneormoreProspectusSupplementsthatwillbedeliveredtopurchaserstogetherwiththisProspectus.EachProspectusSupplementwillbeincorporatedbyreferenceintothisProspectusforthepurposesofsecuritieslegislationasofthedateoftheProspectusSupplementandonlyforthepurposesofthedistributionoftheSecuritiestowhichtheProspectusSupplementpertains.

ThisProspectusconstitutesapublicofferingoftheSecuritiesonlyinthosejurisdictionswheretheymaybelawfullyofferedforsaleandonlybypersonspermitted to sell the Securities in such jurisdictions. We may offer and sell Securities to, or through, underwriters or dealers, directly to one or more otherpurchasers,orthroughagentspursuanttoexemptionsfromregistrationorqualificationunderapplicablesecuritieslaws.AProspectusSupplementrelatingtoeachissueofSecuritieswillsetforththenamesofanyunderwriters,dealersoragentsinvolvedintheOfferingandsaleoftheSecuritiesandwillsetforththetermsofthe Offering, the method of distribution of the Securities, including, to the extent applicable, the proceeds to us and any fees, discounts, concessions or othercompensationpayabletotheunderwriters,dealersoragents,andanyothermaterialtermsoftheplanofdistribution.

In connection with any Offerings, the underwriters or agents may over-allot or effect transactions which stabilize or maintain the market price of theSecuritiesofferedatahigherlevelthanthatwhichmightexistintheopenmarket.Suchtransaction,ifcommenced,maybeinterruptedordiscontinuedatanytime.See"PlanofDistribution".

OuroutstandingCommonSharesarelistedandpostedfortradingontheTorontoStockExchange(the"TSX")underthesymbol"PTM"andontheNYSEMKT,LLC(the"NYSEMKT")underthesymbol"PLG".OnOctober13,2016,thelasttradingdayoftheCommonSharespriortothedateofthisProspectus,the closingprice of the CommonShares onthe TSXandNYSEMKTwasCAN$2.71andUS$2.07, respectively. Unless otherwise specified in the applicableProspectus Supplement, the Debt Securities, the Warrants, the Subscription Receipts and the Units will not be listed on any securities exchange.There is nomarketthroughwhichtheseSecuritiesmaybesoldandpurchasersmaynotbeabletoreselltheseSecuritiespurchasedunderthisProspectus.ThismayaffectthepricingoftheseSecuritiesinthesecondarymarket,thetransparencyandavailabilityoftradingprices,theliquidityoftheseSecurities,andtheextentofissuerregulation.See"RiskFactors".

OurheadofficeislocatedatSuite788,550BurrardStreet,Vancouver,BritishColumbia,Canada,V6C2B5.OurregisteredandrecordsofficeislocatedatSuite2300,550BurrardStreet,Vancouver,BritishColumbia,CanadaV6C2B5.

Eachof Diana Walters, a director of the Company, andCharles Muller, Gert Roets andGordonCunningham, each of whomis a namedexpert in thisProspectus, resides outside of Canada and has appointed Platinum Group Metals Ltd., Suite 788, 550 Burrard Street, Vancouver, British Columbia, CanadaV6C2B5astheiragentforserviceofprocessinCanada.ProspectiveinvestorsareadvisedthatitmaynotbepossibleforinvestorstoenforcejudgmentsobtainedinCanadaagainstMs.Walters,Mr.Muller,Mr.RoetsandMr.Cunningham,eventhoughtheyhaveappointedanagentforserviceofprocess.

ii

TABLEOFCONTENTS

YoushouldrelyonlyontheinformationcontainedinorincorporatedbyreferenceinthisProspectusandanyapplicableProspectusSupplementinconnectionwithaninvestmentintheSecurities.Wehavenotauthorizedanyonetoprovideyouwithdifferentinformation.Wearenotmakinganofferofthe Securities in any jurisdiction where such offer is not permitted. You should assume that the information appearing in this Prospectus or anyProspectusSupplementisaccurateonlyasofthedateonthefrontofthosedocumentsandthatinformationcontainedinanydocumentincorporatedbyreference herein or therein is accurate only as of the date of that document unless specified otherwise. Our business, financial condition, results ofoperationsandprospectsmayhavechangedsincethosedates.

InthisProspectusandanyProspectusSupplement,unlessthecontextotherwiserequires,theterms"we","our","us"andthe"Company"refertoPlatinumGroupMetalsLtd.andourdirectandindirectsubsidiaries.

iii

PageCAUTIONARYNOTETOUNITEDSTATESINVESTORS 1RESERVEANDRESOURCEDISCLOSURE 1CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS 2CURRENCYPRESENTATIONANDEXCHANGERATEINFORMATION 4NOTICEREGARDINGNON-IFRSMEASURES 6DOCUMENTSINCORPORATEDBYREFERENCE 6ADDITIONALINFORMATION 8DOCUMENTSFILEDASPARTOFTHEREGISTRATIONSTATEMENT 9BUSINESSOFTHECOMPANY 10RISKFACTORS 20USEOFPROCEEDS 45EARNINGSCOVERAGERATIO 45CONSOLIDATEDCAPITALIZATION 45DESCRIPTIONOFEXISTINGINDEBTEDNESS 45PLANOFDISTRIBUTION 45PRIORSALES 46PRICERANGEANDTRADINGVOLUME 47DIVIDENDPOLICY 48DESCRIPTIONOFCOMMONSHARES 48DESCRIPTIONOFDEBTSECURITIES 48DESCRIPTIONOFWARRANTS 54DESCRIPTIONOFSUBSCRIPTIONRECEIPTS 55DESCRIPTIONOFUNITS 56CERTAINFEDERALINCOMETAXCONSIDERATIONS 56LEGALMATTERS 56TRANSFERAGENTANDREGISTRAR 56INTERESTOFEXPERTS 56INDEPENDENTAUDITOR 57ENFORCEABILITYOFCIVILLIABILITIES 57

CAUTIONARYNOTETOUNITEDSTATESINVESTORS

WearepermittedundertheMJDStopreparethisProspectus,anyProspectusSupplement,andthedocumentsincorporatedbyreferencehereinandthereininaccordance with the requirements of Canadian securities laws, which differ from the requirements of United States securities laws. All mineral resource andreserveestimatesincludedinthisProspectus,anyProspectusSupplementandthedocumentsincorporatedbyreferencehereinandtherein,havebeenorwillbepreparedinaccordancewithNationalInstrument43-101—StandardsofDisclosureforMineralProjects("NI43-101").NI43-101isaruledevelopedbytheCanadianSecuritiesAdministratorsthatestablishesstandardsforallpublicdisclosureanissuermakesofscientificandtechnicalinformationconcerningmineralprojects. These standards differ significantly from the mineral reserve disclosure requirements of the SECset out in Industry Guide 7. Consequently, mineralreserveandmineralresourceinformationincludedandincorporatedbyreferenceinthisProspectusandanyProspectusSupplementisnotcomparabletosimilarinformationthatwouldgenerallybedisclosedbyU.S.companiesinaccordancewiththerulesoftheSEC.

Inparticular,IndustryGuide7appliesdifferentstandardsinordertoclassifymineralizationasareserve.Asaresult,thedefinitionsofprovenandprobablemineralreservesusedinNI43-101differfromthedefinitionsinIndustryGuide7.UnderSECstandards,mineralizationmaynotbeclassifiedasa"reserve"unlessthedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegallyproducedorextractedatthetimethereservedeterminationismade.Amongotherthings,allnecessarypermitswouldberequiredtobeinhandorissuedimminentlyinordertoclassifymineralizedmaterialasreservesundertheSECstandards.Accordingly,mineralreserveestimatesincludedandincorporatedbyreferenceinthisProspectusandanyProspectusSupplementmaynotqualifyas"reserves"underSECstandards.

Inaddition,theinformationincludedandincorporatedbyreferenceinthisProspectusandanyProspectusSupplementmayusetheterms"mineralresources","measuredmineralresources","indicatedmineralresources"and"inferredmineralresources"tocomplywiththereportingstandardsinCanada.IndustryGuide7doesnot currently recognize mineral resources andU.S. companies are generally not permittedto disclosemineral resources in documents theyfile withtheSEC.InvestorsarespecificallycautionednottoassumethatanypartorallofthemineraldepositsinthesecategorieswilleverbeconvertedintomineralreservesunderIndustryGuide7.Further,"inferredmineralresources"haveagreatamountofuncertaintyastotheirexistenceandastowhethertheycanbeminedlegallyor economically. Therefore, investors are alsocautionednot to assumethat all or anypart of aninferredmineral resource exists. In accordance withCanadianrules, estimates of "inferred mineral resources" cannot form the basis of feasibility or, except in limited circumstances, other economic studies. It cannot beassumedthat all or any part of "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" will ever be upgraded to a highercategoryormineralresourcesorthatmineralresourceswillbeclassifiedasmineralreserves.Investorsarecautionednottoassumethatanypartofthereported"measured mineral resources", "indicated mineral resources" or "inferred mineral resources" includedand incorporated byreference in this Prospectus andanyProspectus Supplement is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted under NI 43-101; however, the SECnormallyonlypermitsissuerstoreportmineralizationthatdoesnotconstitute"reserves"bySECstandardsasin-placetonnageandgradewithoutreferencetounitmeasures.Inaddition,thedocumentsincludedandincorporatedbyreferenceinthisProspectusandanyprospectusSupplementmayincludeinformationregardingadjacentornearbypropertiesonwhichwehavenorighttomine.TheSECdoesnotnormallyallowU.S.companiestoincludesuchinformationintheirfilingswiththeSEC.Fortheabovereasons, informationincludedandincorporatedbyreference in this Prospectus andanyProspectus Supplement that describes ourmineral reserve and resource estimates or that describes the results of pre-feasibility or other studies is not comparable to similar information made public byU.S.companiessubjecttothereportinganddisclosurerequirementsoftheSEC.

RESERVEANDRESOURCEDISCLOSURE

Duetotheuncertaintythatmaybeattachedtoinferredmineralresourceestimates,itcannotbeassumedthatalloranypartofaninferredmineralresourceestimatewillbeupgradedtoanindicatedormeasuredmineralresourceestimateasaresultofcontinuedexploration.Confidenceinaninferredmineralresourceestimateisinsufficienttoallowmeaningfulapplicationofthetechnicalandeconomicparameterstoenablean

1

evaluationofeconomicviabilitysufficientforpublicdisclosure,exceptincertainlimitedcircumstancessetoutinNI43-101.Inferredmineralresourceestimatesareexcludedfromestimatesformingthebasisofafeasibilitystudy.Mineralresourcesthatarenotmineralreservesdonothavedemonstratedeconomicviability.

CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS

ThisProspectusandthedocumentsincorporatedbyreferencehereincontain"forward-lookingstatements"withinthemeaningoftheUnitedStatesPrivateSecurities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "Forward-Looking Statements "). All statements, other than statements of historical fact, that address activities, events or developments that the Companybelieves,expectsoranticipateswill,may,couldormightoccurinthefutureareForward-LookingStatements.Thewords"expect","anticipate","estimate","may","could","might","will","would","should","intend","believe","target","budget","plan","strategy","goals","objectives","projection"orthenegativeofanyofthese words and similar expressions are intended to identify Forward-Looking Statements, although these words may not be present in all Forward-LookingStatements.Forward-LookingStatementsincludedorincorporatedbyreferenceinthisProspectusinclude,withoutlimitation,statementswithrespectto:

• productionestimatesandassumptions,includingproductionrate,gradepertonneandsmelterrecovery;

• productiontiming;

• capital-raisingactivities,compliancewithtermsofindebtednessandtheadequacyofcapital;

• revenue,cashflowandcostestimatesandassumptions;

• statementswithrespecttofutureeventsorfutureperformance;

• anticipatedexploration,development,construction,production,permittingandotheractivitiesontheCompany'sproperties;

• theadequacyofcapital,financingneedsandtheavailabilityofandpotentialforreceivingfurthercommitments;

• projecteconomics;

• futuremetalpricesandexchangerates;

• mineralreserveandmineralresourceestimates;and

• potentialchangesintheownershipstructuresoftheCompany'sprojects.

Forward-LookingStatementsreflectthecurrentexpectationsorbeliefsoftheCompanybasedoninformationcurrentlyavailabletotheCompany.Forward-LookingStatementsinrespectofcapitalcosts,operatingcosts,productionrate,gradepertonneandsmelterrecoveryarebasedupontheestimatesinthetechnicalreports referred to in this Prospectus and in the documents incorporated by reference herein and ongoing cost estimation work, and the Forward-LookingStatements in respect of metal prices andexchangerates are baseduponthethree year trailing averageprices andtheassumptions containedin suchtechnicalreportsandongoingestimates.

Forward-Looking StatementsaresubjecttoanumberofrisksanduncertaintiesthatmaycausetheactualeventsorresultstodiffermateriallyfromthosediscussedintheForward-LookingStatements, andevenif events or results discussedintheForward-LookingStatements are realizedor substantially realized,therecanbenoassurancethattheywillhavetheexpectedconsequencesto,oreffectson,theCompany.Factorsthatcouldcauseactualresultsoreventstodiffermateriallyfromcurrentexpectationsinclude,amongotherthings:

• additionalfinancingrequirements;

• theCompany'shistoryoflosses;

2

• theinabilityoftheCompanytogeneratesufficientcashflowtomakepaymentonitsindebtednessundertheProject1WorkingCapitalFacilities(asdefinedherein)andtherestrictionsimposedbysuchindebtedness;

• theProject1WorkingCapitalFacilitiesaresecuredandtheCompanyhaspledgeditssharesofPlatinumGroupMetals(RSA)ProprietaryLimited("PTMRSA")totheLenders(asdefinedherein)undertheProject1WorkingCapitalFacilities,whichpotentiallycouldresultinthelossoftheCompany'sinterestinProject1(asdefinedherein),Project3(asdefinedherein),theWaterbergProject(asdefinedherein)andinPTMRSAintheeventofadefaultundertheProject1WorkingCapitalFacilities;

• theCompany'snegativecashflow;

• theCompany'sabilitytocontinueasagoingconcern;

• delaysintheproductionramp-upofProject1,whichcouldresultinadefaultundertheProject1WorkingCapitalFacilities;

• there canbe noassurance that undergrounddevelopment andproduction ramp-upat Project 1 will meet its production ramp-uptimeline or thatproductionatProject1willmeettheCompany'sexpectations;

• delaysin,orinabilitytoachieve,plannedcommercialproduction;

• discrepanciesbetweenactualandestimatedmineralreservesandmineralresources,betweenactualandestimateddevelopmentandoperatingcosts,betweenactualandestimatedmetallurgicalrecoveriesandbetweenestimatedandactualproduction;

• fluctuationsintherelativevaluesoftheU.S.dollar,theRandandtheCanadiandollar;

• volatilityinmetalsprices;

• thefailureoftheCompanyoritsjointventurepartnerstofundtheirpro-ratashareoffundingobligationsforProject1ortheWaterbergJVProject(asdefinedherein);

• theinabilityoftheCompanytofindanadditionalandsuitablejointventurepartnerforProject1andProject3withinsuchtimeframeasmaybedeterminedbytheSouthAfricanDepartmentofMineralResources(the"DMR");

• anydisputesordisagreementswiththeCompany'sjointventurepartners;

• otherthanProject1,noknownmineralreservesontheCompany'sproperties;

• completionofapre-feasibilitystudyfortheWaterbergProjectissubjecttoeconomicanalysisrequirements;

• theabilityoftheCompanytoretainitskeymanagementemployeesandskilledandexperiencedpersonnel;

• conflictsofinterest;

• litigationorotherlegaloradministrativeproceedingsbroughtagainsttheCompany;

• actualorallegedbreachesofgovernanceprocessesorinstancesoffraud,briberyorcorruption;

• exploration,developmentandminingrisksandtheinherentlydangerousnatureoftheminingindustry,includingenvironmentalhazards,industrialaccidents, unusual or unexpectedformations, safety stoppages (whether voluntary or regulatory), pressures, minecollapses, cave-ins or floodingandtheriskofinadequateinsuranceorinabilitytoobtaininsurancetocovertheserisksandotherrisksanduncertainties;

• propertyandmineraltitlerisksincludingdefectivetitletomineralclaimsorproperty;

• changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, SouthAfricaorothercountriesinwhichtheCompanydoesormaycarryoutbusinessinthefuture;

3

• equipmentshortagesandtheabilityoftheCompanytoacquirethenecessaryaccessrightsandinfrastructureforitsmineralproperties;

• environmentalregulationsandtheabilitytoobtainandmaintainnecessarypermits,includingenvironmentalauthorizationsandwateruselicenses;

• extremecompetitioninthemineralexplorationindustry;

• delaysinobtaining,orafailuretoobtain,permitsnecessaryforcurrentorfutureoperationsorfailurestocomplywiththetermsofsuchpermits;

• risksofdoingbusinessinSouthAfrica,includingbutnotlimitedtolabour,economicandpoliticalinstabilityandpotentialchangestoandfailurestocomplywithlegislation;

• thefailuretomaintainorincreaseequityparticipationbyHDSAs(asdefinedherein)intheCompany'sprospectingandminingoperationsandtootherwisecomplywiththeMiningCharter(asdefinedherein);and

• theotherrisksdisclosedundertheheading"RiskFactors"inthisProspectusandinthedocumentsincorporatedbyreferenceherein.

Thesefactorsshouldbeconsideredcarefully,andinvestorsshouldnotplaceunduerelianceontheForward-LookingStatements.Inaddition,althoughtheCompanyhasattemptedtoidentifyimportantfactorsthatcouldcauseactualactionsorresultstodiffermateriallyfromthosedescribedintheForward-LookingStatements,theremaybeotherfactorsthatcauseactionsorresultsnottobeasanticipated,estimatedorintended.

Themineral resourceandmineral reservefiguresreferredtointhisProspectusandthedocumentsincorporatedhereinbyreferenceareestimatesandnoassurancescanbegiventhattheindicatedlevelsofplatinum,palladium,rhodiumandgoldwillbeproduced.Suchestimatesareexpressionsofjudgmentbasedonknowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when newinformation becomes available. By their nature, mineral resource and mineral reserve estimates are imprecise and depend, to a certain extent, upon statisticalinferenceswhichmayultimatelyproveunreliable.AnyinaccuracyorfuturereductioninsuchestimatescouldhaveamaterialadverseimpactontheCompany.

AnyForward-LookingStatementspeaksonlyasofthedateonwhichitismadeand,exceptasmayberequiredbyapplicablesecuritieslaws,theCompanydisclaimsanyintentorobligationtoupdateanyForward-LookingStatement,whetherasaresultofnewinformation,futureeventsorresultsorotherwise.

CURRENCYPRESENTATIONANDEXCHANGERATEINFORMATION

Unlessstatedotherwiseorthecontextotherwiserequires,allreferencestodollaramountsinthisProspectusarereferencestoCanadiandollars.Allreferencesto"CAN$"aretoCanadiandollars,referencesto"US$"aretoUnitedStatesdollarsandreferencesto"R"or"Rand"aretoSouthAfricanRand.

TheauditedconsolidatedfinancialstatementsoftheCompanyasatandforthefinancial yearsendedAugust31,2015and2014,togetherwiththenotesthereto andtheauditor's reports thereon(the"AnnualFinancialStatements") are presentedin Canadiandollars. Effective September 1, 2015, theCompanychangedits presentation currency fromthe Canadian dollar to the United States dollar. Accordingly, the Company's unaudited interimcondensed consolidatedfinancial statements for the three months ended November 30, 2015 and the three and nine months ended May 31, 2016 (together, the " InterimFinancialStatements",andtogetherwiththeAnnualFinancialStatements,the"FinancialStatements"),eachincorporatedbyreferenceinthisProspectus,arepresentedinUnitedStatesdollars.ThechangeinpresentationcurrencyistobetterreflecttheCompany'sbusinessactivitiesandtoimproveinvestors'abilitytocomparetheCompany'sfinancialresultswithotherpubliclytradedbusinessesintheminingindustry.TheUnitedStatesdollarisalsothecurrencyusedforquotingpricesintheCompany'sproducts.TherehasbeennochangetotheCompany'sfunctionalcurrency,beingtheCanadiandollar,oritssubsidiaries'functionalcurrencies,beingtheRand.

4

For further information regarding the Company's change in its presentation currency to the United States dollar, including the translation of certaininformationfromCanadiandollarstoUnitedStatesdollars,seetheInterimFinancialStatementsandthemanagement'sdiscussionandanalysisoftheCompanyrelatedthereto,incorporatedbyreferenceinthisProspectus.

Thefollowingtable sets forththerate of exchangefor theUnitedStates dollar expressedinCanadiandollars in effect at theendof eachof theperiodsindicated,theaverageof the exchangerates in effect onthe last dayof eachmonthduringeachof the periods indicated, andthe highandlowexchangeratesduringeachoftheperiodsindicatedineachcasebasedonthenoonrateofexchangeasreportedbytheBankofCanadafortheconversionofUnitedStatesdollarsintoCanadiandollars.

ThenoonrateofexchangeonOctober13,2016asreportedbytheBankofCanadafortheconversionofUnitedStatesdollarsintoCanadiandollarswasUS$1.00equalsCAN$1.3219.

ThefollowingtablesetsforththerateofexchangefortheRandexpressedinCanadiandollarsineffectattheendofeachoftheperiodsindicated,theaverageoftheexchangeratesineffectonthelastdayofeachmonthduringeachoftheperiodsindicated,andthehighandlowexchangeratesduringeachoftheperiodsindicatedineachcasebasedonthenoonrateofexchangeasreportedbytheBankofCanadaforconversionofRandintoCanadiandollars.

ThenoonrateofexchangeonOctober13,2016asreportedbytheBankofCanadafortheconversionofRandintoCanadiandollarswasoneRandequalsCAN$0.09288.

5

TwelveMonthsEndedAugust31, 2015 2014 Averagerateforperiod CAN$1.2102 CAN$1.0776Rateatendofperiod CAN$1.3223 CAN$1.0858Highforperiod CAN$1.3303 CAN$1.1251Lowforperiod CAN$1.0863 CAN$1.0237

NineMonthsEndedMay31, 2016 2015 Averagerateforperiod CAN$1.3363 CAN$1.1868Rateatendofperiod CAN$1.3100 CAN$1.2465Highforperiod CAN$1.4589 CAN$1.2803Lowforperiod CAN$1.2544 CAN$1.1236

TwelveMonthsEndedAugust31, 2015 2014 Averagerateforperiod CAN$0.1026 CAN$0.1026Rateatendofperiod CAN$0.09979 CAN$0.1019Highforperiod CAN$0.1102 CAN$0.1067Lowforperiod CAN$0.09858 CAN$0.0984

NineMonthsEndedMay31, 2016 2015 Averagerateforperiod CAN$0.09023 CAN$0.1028Rateatendofperiod CAN$0.08333 CAN$0.1026Highforperiod CAN$0.09927 CAN$0.1102Lowforperiod CAN$0.08210 CAN$0.09858

NOTICEREGARDINGNON-IFRSMEASURES

ThisProspectusandthedocumentsincorporatedbyreferencehereinincludecertaintermsorperformancemeasuresthatarenotdefinedunderInternationalFinancialReportingStandards,asissuedbytheInternationalAccountingStandardsBoard("IFRS"),suchascashcosts,all-insustainingcostsandtotalcostsperpayable ounce, realized price per ounce, adjusted net income (loss) before tax, adjusted net income (loss) and adjusted basic earnings (loss) per share. TheCompanybelievesthat,inadditiontoconventionalmeasurespreparedinaccordancewithIFRS,certaininvestorsusethisinformationtoevaluatetheCompany'sperformance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures ofperformancepreparedinaccordancewithIFRS.Thesenon-IFRSmeasuresshouldbereadinconjunctionwiththeFinancialStatements.

DOCUMENTSINCORPORATEDBYREFERENCE

Information has been incorporated by reference in this Prospectus fromdocuments filed with securities commissions or similar authorities inCanada(the"Commissions")andfiledwith,orfurnishedto,theSEC.Copiesofthedocumentsincorporatedhereinbyreferencemaybeobtainedonrequestwithout charge from the Corporate Secretary of the Company at Suite 788, 550 Burrard Street, Vancouver, British Columbia, Canada, V6C 2B5, telephone(604)899-5450.ThesedocumentsarealsoavailablethroughtheinternetonSEDAR,whichcanbeaccessedonlineatwww.sedar.comandonEDGAR,whichcanbeaccessedonlineatwww.sec.gov.

ThefollowingdocumentsoftheCompanyarespecificallyincorporatedbyreferenceinto,andformanintegralpartof,thisProspectus:

(a) theannualinformationformoftheCompanydatedNovember24,2015forthefinancialyearendedAugust31,2015(the"AnnualInformationForm"or"AIF");

(b) themanagement information circular of the Company dated January 4, 2016 prepared for the purposes of the annual general meeting of theCompany heldon February 26, 2016 at which each of the Company's directors was re-elected and the shareholders approved all other matterssubmittedtoashareholdervote;

(c) theAnnualFinancialStatements;

(d) themanagement'sdiscussionandanalysisoftheCompanyforthefinancialyearendedAugust31,2015;

(e) theunauditedinterimcondensedconsolidatedfinancialstatementsoftheCompanyforthethreemonthsendedNovember30,2015,togetherwiththenotesthereto;

(f) themanagement'sdiscussionandanalysisoftheCompanyforthethreemonthsendedNovember30,2015;

(g) theunauditedinterimcondensedconsolidatedfinancial statements of theCompanyforthethreeandninemonthsendedMay31,2016, togetherwiththenotesthereto;

(h) themanagement'sdiscussionandanalysisoftheCompanyfortheninemonthsendedMay31,2016;

(i) theNI 43-101 technical report entitled "Mineral Resource Update on the Waterberg Project Located in the Bushveld Igneous Complex, SouthAfrica"datedApril29,2016(the"April2016WaterbergReport");

(j) theNI43-101technicalreportentitled"AnIndependentTechnicalReportontheMaseveProject(WBJVProjectareas1and1A)locatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica"datedAugust28,2015(the"Project1Report");

(k) thematerialchangereportoftheCompanyfiledNovember3,2015announcingthatithadenteredintoasecondliencreditagreementwithLibertyMetals & Mining Holdings, LLC ("Liberty Holdings "), a subsidiary of Liberty Mutual Insurance, for a US$40 million secured loan facility(assubsequentlyamendedonMay3,2016andSeptember19,2016,the"LibertyFacility");

6

(l) thematerial change report of the Company filed November 23, 2015 announcing that the Company had simultaneously drawn down, in full,US$40millionfromtheLibertyFacilityandUS$40million(the"OriginalSprottAdvance")fromthesecuredloanfacilitywithSprottResourceLendingPartnership,amongotherlenders(thelendersfromtimetotime,the"SprottLenders")pursuanttoacreditagreementdatedFebruary13,2015(as subsequently amendedonNovember 19, 2015, May3, 2016andSeptember 19, 2016, the "SprottFacility", andtheSprott Lenders,togetherwithLibertyHoldings,the"Lenders");

(m) thematerial change report of the Company filed January 12, 2016 announcing that the budget funded by Japan Oil, Gas and Metals NationalCorporation (" JOGMEC "), the Company's joint venture partner, for the Waterberg Project had been expanded from US$8.0 million toUS$8.5millionfortheannualperiodendingMarch31,2016;

(n) thematerialchangereportoftheCompanyfiledJanuary26,2016announcingtheconsolidationoftheCommonSharesonthebasisofonenewCommonSharefortenoldCommonShareseffectiveJanuary26,2016(the"ShareConsolidation");

(o) thematerialchangereportoftheCompanyfiledFebruary9,2016announcingthesuccessfulcompletionofhotcommissioningatProject1;

(p) thematerialchangereportoftheCompanyfiledMarch17,2016announcingthatover90%ofrecentinfilldrillingontheWaterbergProjecthadsuccessfullyintersectedthe"T"and"F"targetedlayers;

(q) thematerialchangereportoftheCompanyfiledApril19,2016announcinganincreaseintheresourceestimateforplatinum,palladium,rhodiumandgoldattheWaterbergJVProject;

(r) thematerial change report of the Company filed May 5, 2016 announcing the modification agreements to the Sprott Facility and the LibertyFacility,eachdatedMay3,2016(together,the"MayCreditFacilityAmendments");

(s) thematerial changereport of the Companyfiled May5, 2016announcing that the Companyhadentered into anagreement with a syndicate ofunderwriterstobuy,onaboughtdealbasis,11,000,000CommonShares,atapriceofUS$3.00perCommonShare(the"MayOffering");

(t) thematerialchangereportoftheCompanyfiledMay26,2016announcingtheclosingoftheMayOffering;

(u) thematerialchangereportoftheCompanyfiledJune1,2016announcingnewplatinum,palladiumandgoldassayresultsforrecentdrillinterceptscompletedontheWaterbergProject;

(v) thematerialchangereportoftheCompanyfiledJuly14,2016announcingfinancialresultsandhighlightsfortheninemonthsendedMay31,2016;

(w) thematerial change report of the Company filed September 20, 2016 announcing updates on Project 1 and the Waterberg Project and themodificationagreementstotheSprottFacilityandtheLibertyFacility,eachdatedSeptember19,2016(together,the"SeptemberCreditFacilityAmendments");and

(x) thematerial change report of the Company filed October 12, 2016 announcing that the Sprott Lenders have provided a US$5 million secondadvance(the"SecondSprottAdvance")totheCompanypursuanttoanamendedandrestatedcredit agreementdatedOctober11,2016(the"Amended&RestatedSprottCreditAgreement"andtheSprottFacility,asamendedandrestated,the"Amended&RestatedSprottFacility",andtogetherwiththeLibertyFacility,the"Project1WorkingCapitalFacilities").

Anydocumentofthetypesreferredtointheprecedingparagraph(excludingpressreleasesandconfidentialmaterialchangereports)orofanyothertyperequiredtobeincorporatedbyreferenceintoashortformprospectuspursuanttoNationalInstrument44-101—ShortFormProspectusDistributionsthatarefiledbyuswitha Commissionafter thedateof this Prospectusandprior totheterminationof anOfferingunder anyProspectusSupplement shall bedeemedtobeincorporatedbyreferenceinthisProspectus.Inaddition,anydocumentfiledbyuswiththeSECorfurnishedtotheSEConForm6-Korotherwiseafterthedateofthis

7

Prospectus(andprior to the termination of an Offering) shall be deemedto be incorporated byreference into this Prospectus andthe registration statement onFormF-10ofwhichthisProspectusformsapart(the"RegistrationStatement")(inthecaseofaReportonForm6-K,ifandtotheextentexpresslyprovidedfortherein).

AnystatementcontainedinthisProspectusorinadocumentincorporatedordeemedtobeincorporatedbyreferencehereinshallbedeemedtobemodifiedorsupersededforpurposesofthisProspectustotheextentthatastatementcontainedhereinorinanyothersubsequentlyfileddocumentwhichalsoisorisdeemedtobeincorporatedbyreferencehereinmodifiesorsupersedessuchstatement.Themodifyingorsupersedingstatementneednotstatethatithasmodifiedorsupersededapriorstatementorincludeanyotherinformationsetforthinthedocumentitmodifiesorsupersedes.Themakingofa modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made,constituted a misrepresentation, an untrue statement of a material fact or an omission to state a material fact that is required to be stated or that isnecessarytomake a statement not misleading in light of the circumstances in whichit was made. Anystatement so modified or supersededshall notconstituteapartofthisProspectus,exceptassomodifiedorsuperseded.

AProspectusSupplementcontainingthespecifictermsofanOfferingwillbedeliveredtopurchasersofsuchSecuritiestogetherwiththisProspectusandwillbedeemedtobeincorporatedbyreferenceintothisProspectusasofthedateofsuchProspectusSupplement,butonlyforthepurposesoftheOfferingcoveredbythatProspectusSupplement.

Uponanewannualinformationformandrelatedannualfinancialstatementsbeingfiledbyuswith,andwhererequired,acceptedby,theapplicablesecuritiesregulatoryauthorityduringthecurrencyofthisProspectus,thepreviousannualinformationform,thepreviousannualfinancialstatementsandallinterimfinancialstatements,materialchangereportsandinformationcircularsandallProspectusSupplementsfiledpriortothecommencementofourfinancialyearinwhichanewannualinformationformisfiledshallbedeemednolongertobeincorporatedintothisProspectusforpurposesoffutureoffersandsalesofSecuritieshereunder.

Without limiting the foregoing, on April 29, 2016, the Company filed the April 2016 Waterberg Report with an effective date of April 18, 2016. TheApril 2016Waterberg Report supersedes and replaces the technical report titled "An Independent Technical Report on the Waterberg Project Located in theBushveldIgneousComplex,SouthAfrica"datedSeptember4,2015ontheWaterbergProjectandanyearlierreportsorestimatesofresourcesfortheWaterbergProject.

ReferencetotheCompany'swebsiteinanydocumentsthatareincorporatedbyreferenceintothisProspectusdonotincorporatebyreferencetheinformationonsuchwebsiteintothisProspectus,andtheCompanydisclaimsanysuchincorporationbyreference.

ADDITIONALINFORMATION

WehavefiledwiththeSECtheRegistrationStatement.ThisProspectus,whichconstitutesapartoftheRegistrationStatement,does notcontainalloftheinformationcontainedintheRegistrationStatement,certainitemsofwhicharecontainedintheexhibitstotheRegistrationStatementaspermittedbytherulesandregulationsof the SEC. Statements included or incorporated by reference in this Prospectus about the contents of any contract, agreement or other documentsreferredtoarenotnecessarilycomplete,andineachinstanceyoushouldrefertotheexhibitstotheRegistrationStatementforamorecompletedescriptionofthematterinvolved.Eachsuchstatementisqualifiedinitsentiretybysuchreference.

WearesubjecttotheinformationrequirementsoftheUnitedStatesSecuritiesExchangeActof1934,asamended(the"ExchangeAct"),andapplicableCanadian securities legislation, and in accordance therewith file and furnish reports and other informationwith the SEC and with the securities regulators inCanada.UndertheMJDS,documentsandotherinformationthatwefileandfurnishwiththeSECmaybepreparedinaccordancewiththedisclosurerequirementsofCanada,whicharedifferentfromthoseoftheUnitedStates.Asaforeignprivateissuer,weareexemptfromtherulesundertheExchangeActprescribingthefurnishingandcontentofproxystatements,andourofficers,directorsandprincipalshareholdersareexemptfromthereportingandshort

8

-swingprofit recoveryprovisions containedin Section16of the ExchangeAct. In addition, weare not required to publish financial statements as promptly asU.S.companies.

YoumayreadanydocumentthatwehavefiledwithorfurnishedtotheSECattheSEC'spublicreferenceroominWashington,D.C.YoumayalsoobtaincopiesofthosedocumentsfromthepublicreferenceroomoftheSECat100FStreet,N.E.,Washington,D.C.20549bypayingafee.YoushouldcalltheSECat1-800-SEC-0330oraccessitswebsiteatwww.sec.govforfurtherinformationaboutthepublicreferencerooms.Youmayreadanddownloadthedocumentswehavefiled with the SECunder our corporate profile at www.sec.gov. Youmayreadanddownloadanypublic document that wehave filed with the CanadiansecuritiesregulatoryauthoritiesunderourcorporateprofileontheSEDARwebsiteatwww.sedar.com.

DOCUMENTSFILEDASPARTOFTHEREGISTRATIONSTATEMENT

Thefollowingdocumentshavebeenorwill befiledwiththeSECaspart oftheRegistrationStatement: (i) thedocuments referredtoundertheheading"DocumentsIncorporatedbyReference";(ii)consentsofPricewaterhouseCoopersLLPandthepersonsnamedunder"InterestofExperts"herein;(iii)powersofattorney from certain directors and officers of the Company; and (iv) the form of Indenture (as defined below). A copy of the form of warrant indenture,subscriptionreceiptagreementorstatementofeligibilityoftrusteeonFormT-1,asapplicable,willbefiledbypost-effectiveamendmentorbyincorporationbyreferencetodocumentsfiledorfurnishedwiththeSECundertheExchangeAct.

9

BUSINESSOFTHECOMPANY

TheCompanyisaplatinum-focusedexplorationanddevelopmentcompanyconductingworkprimarilyonmineralpropertiesithasstakedoracquiredbywayofoptionagreementsorapplicationsintheRepublicofSouthAfrica.

TheCompany'smaterialsubsidiariesareonewholly-ownedcompany,onemajority-ownedcompanyanda49.9%holdinginathirdcompany,allofwhichareincorporatedunderthecompanylawsoftheRepublicofSouthAfrica.

TheCompanyconductsitsSouthAfricanexplorationanddevelopmentworkthroughitswholly-owneddirectsubsidiary,PTMRSA.PTMRSAholdstheCompany'sinterestsintheProject1(alsoknownastheMaseveMine)andProject3platinumminesofwhatwasformerlytheWesternBushveldJointVenture("Project1"and"Project3",respectively)throughits82.9%holdingsinMaseveInvestments11ProprietaryLimited("Maseve").WesizwePlatinumLtd.("Wesizwe"), throughits subsidiaryAfricaWideMineralProspectingandExplorationProprietaryLimited("AfricaWide")hasa17.1%ownershipinterest inMaseve.See"MineralPropertyInterests—Projects1and3oftheWesternBushveldComplex"intheAIF.

OnAugust 20, 2014, an arbitrator ruled that Africa Wide's shareholding in Maseve would be reduced to 21.2766%as a result of its failure to fund itsUS$21.8millionshareofaninitialprojectbudgetandcashcallforProject1thathadbeenunanimouslyapprovedbytheMaseveboardofdirectors.OnMarch3,2014,AfricaWideinformedtheCompanythatitwouldnotbefundingitsUS$21.52millionshareofasecondcashcall.Asaresult,AfricaWide'sownershipofMasevehasbeenfurtherdilutedtoapproximately17.1%basedonthedilutionformulaintheMaseveShareholdersAgreement(definedbelow),asconfirmedbythe arbitration. Correspondingly, the Company's ownership in Maseve has increased to approximately 82.9%. See "General Developments of theBusiness—AfricaWideDilution"intheAIFandtheriskfactorinthisProspectuscaptioned"ThedilutionofAfricaWidemayhaveamaterialadverseeffectontheCompany'sbusinessandresultsofoperations".

TheCompanyalsoowns49.9%ofMnomboWethuConsultantsProprietaryLimited("Mnombo"),ablackeconomicempowerment("BEE")company,whichholdsa26%participatinginterestinboththeWaterbergjointventureproject(the"WaterbergJVProject")andtheWaterbergextensionproject(the"WaterbergExtensionProject"andtogetherwiththeWaterbergJVProject,the"WaterbergProject").

Subsequent totheendoftheCompany'sthirdfiscalquarterin2016,theDMRrequestedanupdateregardingtheCompany'seffortstoincreasetheHDSA(asdefinedherein)equityownershippercentageinMasevefrom17.1%to26%followingthedilutionofAfricaWide'sinterestinMaseve.TheCompanyremainsopen to considering commercial and strategic alternatives with regard to possible BEE transactions for Maseve. The Company met with the DMR in earlyJune2016andtheDMRrequestedafurtherupdatebyAugust7,2016,whileremindingtheCompanyoftheriskofpotentialactionunderSections47and93oftheMineralandPetroleumResourcesDevelopmentAct,No.28of2002(the"MPRDA")iftheCompanywerenottoincreasetheHDSAownershippercentage.TheCompanybelievesthatanyactioninthisregardisprematuregiventhatthecourtproceedingsbetweentheChamberofMinesandtheDMRinregardtothe"onceempowered,alwaysempowered"principleandtheintroductionoftheNewDraftCharter(asdefinedherein)bothremainpending.

10

TheCompanyhasmadeseveralattemptstoscheduleameetingwiththeDMRtofurtherdiscussthisissue.Todate,whiletheCompanyhasbeenadvisedbytheDMRthatthematterwillbediscussedatalaterdate,nosuchmeetinghastakenplaceandtheDMRhasnotissuedanoticeofnon-compliancewiththeMPRDA.See the risk factors in this Prospectus captioned "Thedilution of Africa Wide may have a material adverse effect on the Company's business and results ofoperations"and"ThefailuretomaintainorincreaseequityparticipationbyHDSAsintheCompany'sprospectingandminingoperationscouldadverselyaffecttheCompany'sabilitytomaintainitsprospectingandminingrights."

Project1andProject3

Project1andProject3arelocatedontheWesternLimboftheBushveldComplex,110kmwestnorthwestofPretoriaand120kmfromJohannesburg.Theapproximately47km2ofminingrightscomprisingProject1andProject3areownedbyMaseve,theprojectoperatingcompanyinwhichtheCompanyhasan82.9%interestandWesizwe,throughitssubsidiary,AfricaWide,whichhasa17.1%ownershipinterest.Maseveisgovernedbyashareholders'agreementamongPTMRSA,AfricaWideandMaseve(the"MaseveShareholdersAgreement").See"GeneralDevelopmentsoftheBusiness—AfricaWideDilution"intheAIF.InApril2012,MasevewasgrantedaminingrightoverProject1andProject3(the"MiningRight")bytheDMR.

Delays in underground development, stoping rates and planned tonnages have resulted in delays in achieving full commercial production at Project 1.ProductionguidanceprovidedforSeptember2016wasnotachievedprincipallyasaresultoftheinabilitytominefromhighergradeandbetterthicknessreefinBlock 11 of Project 1. The infrastructure required for mining in September 2016, including water pumping and ventilation, was also completed later thanscheduled, which delayed production. Planned production from Block 11 is now expected in October 2016. The Company currently expects commercialproductiontobeachievedbyearly2017.

ThecurrentProject1mineplancallsforanaggregateofapproximately91,500ouncesplatinum,palladium,rhodiumandgold("4E")(100%projectbasis)inconcentratetobeproducedfromfirstproductionatthemineinearly2016throughtheendofApril2017.Priorproductionguidanceshouldnotbereliedupon.

Project1WorkingCapitalFacilities

TheCompanyannouncedthatithaddrawndownundertheSprottFacilityandtheLibertyFacilityinNovember2015andundertheAmended&RestatedSprott FacilityinOctober2016.TheCompanypaysinterest undertheLibertyFacilityat9.5%overLIBORandinterest undertheAmended&RestatedSprottFacilityat8.5%overLIBOR.UndertheLibertyFacility,aproductionpaymentof1.5%ofrevenuesfromProject1ispayabletoLibertyHoldings.PaymentandperformanceoftheCompany'sobligationsundertheProject1WorkingCapitalFacilitiesareguaranteedbyPTMRSAandsecuredbyafirstandsecondprioritysecurityinterestinfavoroftheLendersinalloftheCompany'spersonalproperty,includingapledgeoveralloftheissuedsharesinthecapitalofPTMRSA.TheProject 1 Working Capital Facilities contain covenants that include certain limits on, amongother things, the ability of the CompanyandPTMRSAto createindebtedness,createliens,enterintorelatedpartytransactions,disposeofassets,amendoraltertheircorporatestatusoramalgamate,makeacquisitions,amendorterminate material contracts, declare or provide dividends or distributions, make investments, materially change their businesses, or enter into agreementsrestricting the ability of their subsidiaries to pay dividends, make any other distributions, deliver minerals or perform other obligations under their materialagreements. Further, pursuant to the Liberty Facility, the Company is obligated to notify Liberty Holdings if the Company or PTM RSA, or any of theirsubsidiaries(includingwithoutlimitationMaseveandMnombo)wishestoundertakeanyfinancings(otherthanafinancingthatisentirelyanequityfinancing)andmustprovideLibertyHoldingswithasummaryofthetermsofsuchfinancing.SubjecttothetermsandconditionsintheLibertyFacility,LibertyHoldingsshallhavearightoffirstoffertoprovidesuchfinancingtotheapplicableentityonthetermscontainedinthenoticeprovided.Also,pursuanttothatcertainintercreditoragreement entered into among the Lenders, the Company and PTM RSA in connection with the Project 1 Working Capital Facilities (the " IntercreditorAgreement"),andundercertaincircumstancesdescribedtherein,LibertyHoldingshasarighttopurchasealloftheoutstandingobligationsundertheAmended&RestatedSprottFacility,inwhichcasetheAmended&RestatedSprottFacilitywillbeassignedtoLibertyHoldings,asLender.

11

Under the May Credit Facility Amendments, the September Credit Facility Amendments and the Amended & Restated Sprott Credit Agreement, theCompanyandtheLendershaveagreedtoextendthematuritydatesoftheProject1WorkingCapitalFacilities,amendcertainprepaymentandrepaymenttermsandamendcertaineventsofdefaultrelatingtoproductiontargetsatProject1.UnderthetermsoftheSeptemberCreditFacilityAmendmentsandtheAmended&RestatedSprottCreditAgreement,theCompanyandtheLendersalsoagreedthattheCompanymustpay,inpartialprepaymentoftheProject1WorkingCapitalFacilities,50%ofthenetproceedsofanyequityordebtfinancings(excludingintercompanyfinancings)oftheCompanyhavingavalueexceedingUS$1millionintheaggregatethatcloseafterJanuary31,2017,inthecaseoftheAmended&RestatedSprottFacility(the"Amended&RestatedSprottFacilityRepaymentRequirement"),andDecember31,2017,inthecaseoftheLibertyFacility,subjecttothetermsoftheIntercreditorAgreement(insteadofafterJune30,2016aswasstipulatedintheMayCreditFacilityAmendments).

OnOctober12,2016,theCompanyannouncedthattheSprottLendersprovidedtheSecondSprottAdvancetotheCompanypursuanttotheAmended&RestatedSprottCreditAgreement, whichincreasedtheAmended&RestatedSprott FacilitytoUS$45million. Thematerial termsoftheAmended&RestatedSprottCreditAgreementinclude:

• interestshallaccrueandbecomepayabletotheSprottLendersmonthlyontheSecondSprottAdvanceatarateofLIBORplus8.5%,thesamerateappliedtotheOriginalSprottAdvance;

• the SecondSprott Advancemayberepaid in six equal, monthly installments commencingonJuly 31, 2017, unless theSprott Lenders elect forearlierrepaymentfromtheproceedsofanequityordebtfinancing(excludinganintercompanyfinancing)priortoDecember31,2017,inwhichcaseallsuchnetproceedsshallbepaidtotheSprottLendersinrepaymentoftheSecondSprottAdvance,notwithstandingtheAmended&RestatedSprottFacilityRepaymentRequirement;

• theCompanymustobtaincertainregulatoryapprovalsasapost-closingrequirementoftheSecondSprottAdvance;and

• theCompanymustcompleteequityfinancingsraisinggrossproceedsofUS$20millionbyDecember31,2016(the"EquityFinancings").

Otherterms,conditionsandcovenantsrelatedtotheSecondSprottAdvancearesubstantiallythesameasfortheOriginalSprottAdvance,asamended.

AsconsiderationfortheaccommodationsprovidedbytheLendersintheMayCreditFacilityAmendments,theCompanyissuedtotheLendersanaggregateof 263,308CommonShares, representing1%oftheoriginal principal amountpayableundertheProject 1WorkingCapital Facilities. Asconsiderationfor theaccommodationsprovidedbytheLendersintheSeptemberCreditFacilityAmendments,theCompanyissuedtotheLendersanaggregateof1,602,628CommonShares,representing5%oftheoriginalprincipalamountpayableundertheProject1WorkingCapitalFacilities.AsconsiderationfortheSecondSprottAdvance,theCompanyhasagreedtoissue113,963CommonSharesbyOctober31,2016,representing5%ofthevalueoftheSecondSprottAdvance(usingtheBankofCanadanoonexchangerateonOctober7,2016).TheCommonShareswerevaluedatCAN$2.9185,whichrepresentedthe10-dayvolumeweightedaveragepriceoftheCommonSharesontheTSXofCAN$3.2428,lessa10%discount.See"PriorSales".

EventsofdefaultundertheProject1WorkingCapitalFacilitiesinclude:

• failuretocompletetheEquityFinancings;

• thefailuretopayprincipalwhendueandpayableorinterest,feesorotheramountspayable;

• thebreachbytheCompanyofanyfinancialcovenant;

• adefaultunderanyotherindebtednessoftheCompany;

• achangeincontroloftheCompany;

• failure to maintain planned production targets, as required by the September Credit Facility Amendments and theAmended & Restated SprottCreditAgreement;

12

• failure to obtain all required consents, authorizations or approvals of the South African Reserve Bank (the "SARB") in connection with theAmended&RestatedSprottCreditAgreementbyApril5,2017;

• theoccurrenceofanyeventthatcouldhaveamaterialadverseeffect;and

• variouseventsrelatingtothebankruptcyorinsolvencyorwinding-up,liquidationordissolutionorcessationofbusinessoftheCompany.

WaterbergProject

PTMRSAis the operator of the Waterberg Project with JOGMECand Mnombo. The Waterberg Project is comprised of the Waterberg JV Project, acontiguous granted prospecting right area of approximately 255 km 2 , and the Waterberg Extension Project, an 864 km 2 area of granted and applied-forprospectingrightslocatedadjacentandtothenorthoftheWaterbergJVProject,locatedontheNorthernLimboftheBushveldComplex,approximately85kmnorthofthetownofMokopane(formerlyPotgietersrus).

OnSeptember28,2009,PTMRSA,MnomboandJOGMECenteredintoanagreement,aslateramendedonMay20,2013(the"JOGMECAgreement"),wherebyJOGMECcouldearnuptoa37%participatinginterestintheWaterbergJVProjectforanoptionalworkcommitmentofUS$3.2millionoverfouryears.Atthesametime, Mnombocouldearna 26%participatinginterest in exchangefor matchingJOGMEC'sexpenditures ona26/74basis(US$1.12million).InApril2012,JOGMECcompleteditsUS$3.2millionearn-inrequirementtoearna37%interestintheWaterbergJVProject.FollowingJOGMEC'searn-in,PTMRSAfundedMnombo's26%shareofcostsforUS$1.12millionuntiltheearn-inphaseofthejointventureendedinMay2012.PTMRSAholdstheprospectingrightsgrantedbytheDMRfortheWaterbergJVProject,andMnomboisidentifiedastheCompany'sBEEpartner.

OnJanuary20,2015,PTMRSAandMnomboenteredintoawrittenjointventureagreementeffectiveFebruary1,2012relatingtotheWaterbergExtensionProject,inwhichPTMRSAhasa74%interestandMnombohasa26%interest(the"WaterbergExtensionJVAgreement").PTMRSAholdstheprospectingrightsfiledwiththeDMRfortheWaterbergExtensionProject,andMnomboisidentifiedastheCompany'sBEEpartner.

OnMay26,2015,theCompanyannouncedasecondamendmenttotheJOGMECAgreement(the"JOGMEC2ndAmendment").Pursuanttothetermsofthe JOGMEC2 nd Amendment, the Waterberg JV Project and the Waterberg Extension Project are to be consolidated and contributed into a newly createdoperatingcompanynamedWaterbergJVResourcesProprietaryLimited("WaterbergJVCo.").TheCompanyistohold45.65%ofWaterbergJVCo.whileJOGMECistoown28.35%andMnombowillhold26%.Throughits49.9%shareofMnombo,theCompanywillholdaneffective58.62%ofWaterbergJVCo.,post-closing. Once Waterberg JV Co. is fully organized and the transactions contemplated in the JOGMEC 2 nd Amendment are completed, the WaterbergExtension JVAgreement will be dissolved. Based on the June 2014Waterberg Project resource estimate, the number of ounces ownedby each entity did notchangewiththerevisedownershippercentages.UndertheJOGMEC2ndAmendment,JOGMEChascommittedtofundUS$20millioninexpendituresoverathree-yearperiodendingMarch31,2018,ofwhichUS$8millionhasbeenfundedbyJOGMECtoMarch31,2016andthefirstUS$6milliontobespentineachofthefollowingtwo12-monthperiodswill alsobefundedbyJOGMEC.WaterbergProjectexpendituresinexcessofUS$6millionineitherofthefollowing12-monthperiodsaretobefundedbyPTMRSA,MnomboandJOGMECpro-ratatotheirinterestsinWaterbergJVCo.TheCompanyremainstheWaterbergProjectoperator undertheJOGMEC2nd Amendment. UnderthetermsoftheJOGMEC2 nd Amendment, closingofthis transactionwill takeplaceonadatetobeagreed between the parties, as soon as reasonably possible after the grant of approval by the DMR under Section 11 of the MPRDA to transfer title of theprospectingrights.Asamatteroflaw,theclosingwillalsobedependentupontheapprovalofthecompetitionauthoritiesundertheSouthAfricanCompetitionAct,89of1998.Ifclosingofthistransactiondoesnotoccur,theJOGMEC2ndAgreementwillterminateandthepartieswilldefaulttotheJOGMECAgreementarrangement,withsuchportionoftheUS$20millioninexpendituresfundingalreadypaidbyJOGMECbeingdeemedtobeanadvancebyJOGMECtowardsitsfuturespendingcommitmentsontheWaterbergJVProject.TheCompanyandMnombowillberequiredtomakecorrespondingcashpaymentsinrespectoftheWaterbergJVProjecttoproratamatchtheadvancepaymentsmadebyJOGMEC,within120daysoftheterminationoftheJOGMEC2ndAmendment,failingwhichtheyshallsuffer

13

equitydilutionsundertheJOGMECAgreementasifsuchequivalentprorataamountswereapprovedprogramfundinginwhichtheyelectednottoparticipate.

TheCompanycarriedMnombo's26%shareofexpensesintheWaterbergProjectuntilMarch31,2015.JOGMEChasbeenfundingexpensessinceMarch31,2015underthetermsoftheJOGMEC2ndAmendment.

April2016WaterbergReport

ThefollowingistheextractedsummarysectionfromtheApril2016WaterbergReportpreparedfortheCompanybyMr.CharlesMullerofCJMConsulting,SouthAfrica,(Pty)Ltd.("CJM").TheApril2016WaterbergReportisincorporatedbyreferencehereinand,forfulltechnicaldetails,referenceshouldbemadetothecompletetextoftheApril2016WaterbergReport.

The following summary does not purport to be a complete summary of the Waterberg Project and is subject to all the assumptions, qualifications andproceduressetoutintheApril2016WaterbergReportandisqualifiedinitsentiretywithreferencetothefulltextoftheApril2016WaterbergReport.Readersshouldreadthis summaryinconjunctionwiththeApril 2016WaterbergReport. Readers aredirectedtoreviewthefull text of thereport, available for reviewundertheCompany'sprofileonSEDARatwww.sedar.comandontheSEC'sEDGARwebsiteatwww.sec.gov,foradditionalinformation.

1.1Introduction

CJMwasrequestedbyPTMRSA,onbehalf of the Company, the issuer, to complete the April 2016Waterberg Report for the Waterberg Project. TheWaterbergProjectcoversaburiedportionoftheNorthernLimboftheBushveldComplexwhereadepositcontainingplatinumgroupmetals("PGMs"),goldandbasemetals("Cu","Ni")hasbeendiscoveredthroughdrilling.TheobjectiveoftheApril2016WaterbergReportistoprovideanupdatetothemineralresourcesontheWaterbergProject,tocomplywithdisclosureandreportingrequirementssetforthintheTorontoStockExchangeManual,NI43-101,CompanionPolicy43-101CPtoNI43-101,andForm43-101F1ofNI43-101.

TheApril2016WaterbergReportreviewsthegeology,theexplorationactivitiesandstatesthemostrecentmineralresourceestimationontheWaterbergProject(EffectiveDate:18April-2016).Thereportprovidesanupdateoftheexplorationactivitiescompletedsubsequenttothelastfiledtechnicalreportontheresourceestimatedated20July-2015uptotheeffectivedateof04September-2016tocorrespondtothepublicdisclosureuptothatdate.

1.2WaterbergProjectAreaandLocation

TheWaterbergProjectissome85kmnorthofthetownofMokopane(formerlyPotgietersrus),withinLimpopoProvince,SouthAfricaandcoversanareaalongthestrikelengthofthepreviouslyunknownnorthwardextensionoftheBushveldComplex.TheWaterbergProjectcanbeaccessedviadirtroadsexitingoffsealedhighwayN11.

TheWaterberg Project is comprised of several prospecting rights covering an area of 111,882 ha. The Waterberg Project is owned by a joint ventureconsistingoftheCompany,Mnombo,andJOGMEC.Conversionoftheprospectingrightintoaminingrightwithintherenewalperiodofthreeyearsisallowed.Theareaoftheprospectingrightsextendssome42kmfromnorthtosouthand42kmfromeasttowest.

TheWaterberg Project area is an extension of the trend at the northern tip of the Bushveld Complex and is the result of some detailed geophysical,geochemicalandgeologicalworkthatindicatedpotentialforapackageofBushveldComplexrocksundertheWaterberggroupsedimentarycoverrocks(the"WaterbergGroup").

1.3GeologicalSetting,DepositTypeandMineralization

TheBushveld and Molopo Complexes in the Kaapvaal Craton are two of the most well-known mafic/ultramafic layered intrusions in the world. TheBushveld Complex was intruded about 2,060 million years ago into rocks of the Transvaal Supergroup, largely along an unconformity between theMagaliesbergquartziteofthePretoriaGroupandtheoverlyingRooibergfelsites.Itisestimatedtoexceed66,000km2in

14

extent,ofwhichabout55%iscoveredbyyoungerformations.TheBushveldComplexhostsseverallayersrichinPGMs,chromiumandvanadium,andconstitutestheworld'slargestknownresourceofthesemetals.

TheWaterbergProjectissituatedoffthenorthernendofthepreviouslyknownNorthernLimb,wherethemaficrockshaveadifferentsequencetothoseoftheEasternandWesternLimbs.

PGMmineralisationwithintheBushveldpackageunderlyingtheWaterbergProjectishostedintwomainlayers:theTZoneandtheFZone.

TheTZoneoccurswithintheMainZonejustbeneaththecontactoftheoverlayingUpperZone.AlthoughtheTZoneconsistsofnumerousmineralisedlayers,threepotentialeconomicallayerswereidentified,T1,T2HWandT2—Layers.Theyarecomposedmainlyofanorthosite, pegmatoidalgabbros,pyroxenite,troctolite,harzburgite,gabbronoriteandnorite.

TheFZoneishostedinacyclicunitofolivinerichlithologiestowardsthebaseoftheMainZonetowardsthebottomoftheBushveldComplex.Thiszoneconsistsofalternatingunitsofharzburgite,troctoliteandpyroxenites.TheFZonewasdividedintotheFHandFPlayers.TheFHlayerhassignificantlyhighervolumesofolivineincontrastwiththelowerlyingFPlayer,whichispredominatelypyroxenite.TheFHlayerisfurthersubdividedintosixcyclicunitschemicallyidentifiedbytheirgeochemicalsignature,especiallychrome.Thebaseoftheseunitscanalsobelithologicallyidentifiedbyapyroxenitelayer.

1.4LocalGeology

TheWaterbergProjectislocatedalongthestrikeextensionoftheNorthernLimboftheBushveldComplex.ThegeologyconsistspredominantlyoftheBushveld Main Zone gabbros, gabbronorites, norites, pyroxenites and anorthositic rock types with more mafic rock material such as harzburgite andtroctolitesthatpartiallygradeintodunitestowardsthebaseofthepackage.Inthesouthernpartoftheprojectarea,BushveldUpperZonelithologiessuchas magnetite gabbros and gabbronorites do occur as intersected in drillhole WB001 and WB002. The Lower Magnetite Layer of the Upper Zone wasintersectedonthesouthoftheprojectproperty(Disseldorp)wheredrillholeWB001wasdrilledandintersecteda2.5mthickmagnetiteband.

Ontheproperty,theBushveldpackagestrikessouth-westtonortheastwithageneraldipof34o–38otowardsthewestisobservedfromdrillholecoreforthelayeredunitsintersectedonWaterbergpropertywithintheBushveldPackage(Figure1).However,somestructuralblocksmaybetiltedatdifferentanglesdependingonstructuraland/ortectoniccontrols.

TheBushveldUpperZoneisoverlainbya120mto760mthickWaterbergGroupwhichisasedimentarypackagepredominantlymadeupofsandstones,and within the project area the two sedimentary formations known as the Setlaole and Makgabeng Formations constitute the Waterberg Group. TheWaterbergpackageisflatlyingwithdipanglesrangingfromto2oto5o.Figure1givesanoverviewofinterpretedgeologyfortheWaterbergProject.

15

Figure1:DrillholelocationandInterpretedGeologyoftheWaterbergProject

1.5ExplorationStatus

TheWaterbergProjectisanadvancedprojectthathasundergonepreliminaryeconomicevaluationswhichhavewarrantedfurtherwork.DrillingtodatehasgiventheconfidencetoclassifymineralresourcesasInferredandIndicated.

1.6SamplePreparation

ThesamplingmethodologyconcurswiththeCompany'sprotocolbasedonindustrybestpractice.Thequalityofthesamplingismonitoredandsupervisedbyaqualifiedgeologist.Thesamplingisdoneinamannerthatincludestheentirepotentiallyeconomicunit,withsufficientshouldersamplingtoensuretheentireeconomiczonesareassayed.

1.7Analysis

Forthepresentdatabase,fieldsampleshavebeenanalysedbytwodifferentlaboratories:theprimarylaboratoryiscurrentlySetPointlaboratories(SouthAfrica).Genalysis(Australia)isusedforrefereetestworktoconfirmtheaccuracyoftheprimarylaboratory.

Samplesarereceived,sorted,verifiedandcheckedformoistureanddriedifnecessary.Eachsampleisweighedandtheresultsarerecorded.Rocks,rockchipsorlumpsarecrushedusingajawcrushertoless

16

than10mm.Thesamplesarethenmilledfor5minutestoachieveafinenessof90%lessthan106mm,whichistheminimumrequirementtoensurethebestaccuracyandprecisionduringanalysis.

SamplesareanalysedforPt(ppm),Pd(ppm)Rh(ppm)andAu(ppm)bystandard25gleadfire-assayusingasilvercollector.Rh(ppm)isassayedusingthesamemethodbutwithapalladiumcollectorandonlyforselectedsamples.Afterpre-concentrationbyfireassaytheresultingsolutionsareanalysedusingICP-OES(InductivelyCoupledPlasma—OpticalEmissionSpectrometry).

Thebasemetals(copper,nickel,cobaltandchromium)areanalysedusingICP-OES(InductivelyCoupledPlasma—OpticalEmissionSpectrometry)afteramulti-aciddigestion.Thistechniqueresultsin"almost"totaldigestion.

Thedrilling, sampling and analytical aspects of the project are considered to have been undertaken to industry standards. The data is considered to bereliableandsuitableformineralresourceestimation.

1.8Drilling

Thedatafromwhichthestructureofthemineralisedhorizonswasmodelledandgradevaluesestimatedwerederivedfromatotalof293,538metersofdiamonddrilling.Thisreportupdatesthemineralresourceestimateusingthisdataset.Thedrillholedatasetconsistsof294drillholesand459deflections,atthedateofdatacut-off(April1,2016).

Themanagement of the drilling programmes, logging and sampling have been undertaken from two facilities: one at the town of Marken in LimpopoProvince,SouthAfricaandtheotheronthefarmGoedetrouw366LRwithintheprospectingrightarea.

Drilledcoreiscleaned,de-greasedandpackedintometalcoreboxesbythedrillingcompany.ThecoreiscollectedfromthedrillingsiteonadailybasisbyPTMpersonnelandtransportedtothecoreyard.Beforethecoreistakenoffthedrillingsite,corerecoveryandthedepthsarechecked.Coreloggingisdonebyhandonapro-formasheetbyqualifiedgeologistsundersupervisionoftheWaterbergProjectgeologist.

1.9QualityControlandQualityAssurance

TheCompanyhasinstitutedacompleteQA/QCprogrammeincludingtheinsertionofblanksandcertifiedreferencematerialsaswellasrefereeanalyses.Theprogrammeisbeingfollowedandisconsideredtobetoindustrystandard.Thedataisasaresult,consideredreliableintheopinionoftheQualifiedPerson.

1.10MineralResources

Thisreportdocumentsthemineralresourceestimate—EffectiveDate:April18,2016.Themineralresourcesarereportedinthetablebelow.InfilldrillingoverportionsoftheWaterbergProjectareaandnewestimationmethodologyhasmadeitpossibletoestimateanewmineralresourceestimateandupgradeportionsofthemineralresourcetotheIndicatedcategory.TheMineralResourceStatementissummarisedinTable1.

Table1FZone

MineralResourceDetails

17

Cut-off Tonnage Grade Metal 3PGE+Au Pt Pd Au Rh 3PGE+Au 3PGE+Au g/t Mt g/t g/t g/t g/t g/t Kg Moz

Indicated 2 281.184 0.9 1.9 0.2 0 3.03 851988 27.39 2.5 179.325 1.1 2.2 0.2 0 3.49 625844 20.12 3 110.863 1.2 2.5 0.2 0 3.95 437909 14.08

Inferred

2 177.961 0.8 1.8 0.1 0 2.76 491183 15.79 2.5 84.722 1 2.1 0.2 0 3.35 283819 9.125 3 43.153 1.2 2.5 0.2 0 3.96 170886 5.494

TZone

WaterbergTotal

18


Indicated 2 36.308 1.1 1.8 0.7 — 3.61 131162 4.217 2.5 30.234 1.2 1.9 0.8 — 3.88 117363 3.773 3 22.33 1.3 2.1 0.9 — 4.28 95640 3.075

Inferred

2 23.314 1.1 1.8 0.7 — 3.66 85240 2.741 2.5 21.196 1.1 1.9 0.8 — 3.79 80394 2.585 3 14.497 1.3 2.1 0.9 — 4.28 62082 1.996


Indicated 2 317.492 0.9 1.9 0.2 0 3.1 983150 31.61 2.5 209.559 1.1 2.2 0.3 0 3.55 743207 23.89 3 133.193 1.2 2.5 0.3 0 4.01 533549 17.15

Inferred

2 201.275 0.9 1.8 0.2 0 2.86 576423 18.53 2.5 105.918 1 2.1 0.3 0 3.44 364213 11.71 3 57.65 1.2 2.4 0.4 0 4.04 232968 7.49

NotestoTable1:

1. MineralresourcesareclassifiedinaccordancewiththeSAMRECstandards.Therearecertaindifferenceswiththe"CIMStandardsonMineralResourcesandReserves";however, in this case the Companyandthe QPbelieve the differences are not material andthe standards maybe considered the same. Mineral resources do not havedemonstratedeconomicviabilityandinferredresourceshaveahighdegreeofuncertainty.Mineralresourcesmightneverbeupgradedorconvertedtoreserves.

2. Mineralresourcesareprovidedona100%projectbasis.Inferredandindicatedcategoriesareseparate.TheestimateshaveaneffectivedateofApril18th2016.Tablesmaynotaddperfectlyduetorounding.ForthepurposesofinclusionofthistablefromtheApril2016WaterbergReportinthisProspectus,thefigureshavebeensubjecttofurtherrounding.

3. Acut-offgradeof2.5g/t3E(platinum,palladiumandgold)fortheTzoneand2.5g/t4EfortheFzoneisappliedtotheselectedbasecasemineralresources.PriortoJuly20,2015,a2g/tcut-offwasappliedtoresourceestimates.Forcomparisonwithearlierresourcesa2g/tcut-offontheupdatedresourcemodelispresentedabove.Cut-offgradesof3.0g/t4Earealsopresentedascertainminingplansinearlyyearsmayapplyhighercut-offsforthePre-FeasibilityStudy.

4. CutofffortheTandtheFzonesconsideredcosts,smelterdiscounts,concentratorrecoveriesfromthepreviousandongoingengineeringworkcompletedonthepropertybytheCompanyanditsindependentengineers.Spotandthree-yeartrailingaveragepricesandexchangeratesareconsideredforthecut-offconsiderations.Metallurgicalworkindicatesthataneconomicallyattractiveconcentratecanbeproducedfromstandardflotationmethods.

5. Mineral resources were completed by Charles Muller of CJM and are reported in an NI 43-101 technical report for the mineral resources reported herein, effectiveApril18,2016.

6. Mineral resources were estimated using Kriging methods for geological domains created in Datamine Studio3 from 262 mother holes and 322 deflections inmineralization.Aprocessofgeologicalmodellingandcreationofgradeshellsusingindicatingkrigingwascompletedintheestimationprocess.

7. Theestimationofmineralresourceshavetakenintoaccountenvironmental,permitting,legal,title,taxation,socio-economic,marketingandpoliticalfactors.Themineralresources may be materially affected by metals prices, exchange rates, labour costs, electricity supply issues or many other factors detailed in the Company's AnnualInformationForm.

8. ThefollowingUnitedStatesdollarpricesbasedonanapproximaterecent3-yeartrailingaverageinaccordancewiththeSECguidancewereusedfortheassessmentofResources;Pt1,243/oz,Pd720/oz,Au1,238/oz,Rh1,015/oz—see"CautionaryNotetoUnitedStatesInvestors".

9. Estimatedgradesandquantitiesforby-productswillbeincludedinrecoverablemetalsandestimatesintheon-goingpre-feasibilitywork.CopperandNickelarethemainvalueby-productsrecoverablebyflotationandforindicatedresourcesareestimatedat0.18%copperand0.10%nickelintheTzone0.07%copperand0.16%nickelintheFzone.

PreviousWaterbergProjectResourcedatedJuly20,2015:

Indicated:121milliontonnesgrading3.24g/t3E(0.97g/tPt,2.11g/tPd,0.16g/tAu,2.5g/tcut-off)

Inferred:246milliontonnesgrading3.25g/t3E,(0.94g/tPt,2.09g/tPd,0.16g/tAu,2.5g/tcutoff)

ThedatathatformedthebasisoftheestimatearethedrillholesdrilledbyPTMwhichconsistofgeologicallogs,thedrillholecollars,thedownholesurveysandtheassaydata,allofwhichwerevalidatedbytheQP.Theareawhereeachlayerwaspresentwasdelineatedafterexaminationoftheintersectionsinthevariousdrillholes.

ThereisnoguaranteethatalloranypartoftheMineralResourcewillbeconvertedtoaMineralReserve.

1.11InterpretationandConclusions

ExplorationdrillingbyPTMhasintersectedlayeredmagmaticPGMmineralisationinwhatisinterpretedtobethenorthernextensionoftheNorthernLimbof the Bushveld Complex under the Waterberg Group rocks. This has confirmed the existence of mineralised zones with potentially economicconcentrations of PGM's. Improved understanding of the geology allowed improved Resource estimations which provided increases in the Resourcesreported.

TheEstimationwasundertakenusingbestpractisesintermsofgeostatistics.

TheobjectivesintermsofadherencetotheScopeofthisStudyweremetinthatanupdatedresourcemodelwasproduced.

ThedelineationoftheFZoneandTZoneunitshasbeenadvancedduetobetterunderstandingofthegeology.Aswiththepreviousresourceestimate,thismineral resource estimate used mineralised layers identified within this Waterberg Project area. The database used for this estimate consisted of294drillholesand459deflections.Themineralisationisconsideredopendown-dipandalongstrike.TheWaterbergProjectrepresentsoneofthelargestdiscoveriesofPGEmineralizationinrecenthistory.MetallurgicalworkcompletedatMintekalongwithpreviouslypublishedPEAaddstotheconfidenceinthisdiscovery.

1.12Recommendations

Itisrecommendedthatexplorationdrillingcontinuesinordertoadvancethegeologicalconfidenceinthedepositthroughinfilldrilling.Thiswillprovidemoredatafordetailedloggingandrefinedmodelling.ThisisexpectedtoconfirmthegeologicalcontinuityandallowthedeclarationoffurtherIndicatedMineralResources.

Giventhe results of the diamond drilling on the northern area and the extent of target areas generated by geophysical surveys, the completion of theplannedexplorationdrillingisrecommendednorthofthelocationofthecurrentexplorationprogramme.Theobjectiveoftheexplorationdrillingwouldbeto find the limit of the current deposit, confirmthe understanding of the F Zone and allowappropriate selection of the potential mining cut. This willimprovegeoscientificconfidenceinordertoupgrademineralresourcestotheIndicatedcategory.

MetallurgicalandotherengineeringworkcompletedandunderwayindicatesthataPre-feasibilitystudyiswarrantedandrecommendedtoproceedontheWaterbergProject.ThedepositshouldbestudiedformechanisedminingmethodssuchasroomandpillarandlongholeminingasaresultofthethicknessofboththeTandFZones.

OtherProjects

TheCompanyalsoholdsinterestsinvariousotherearlystageexplorationprojectslocatedinCanadaandinSouthAfrica.TheCompanycontinuestoevaluateexplorationopportunitiesbothoncurrentlyownedpropertiesandonnewprospects.

RecentDevelopments

EffectiveJuly1,2016,wesetthesalaryofR.MichaelJones,ourChiefExecutiveOfficer,atCAN$525,000,FrankHallam,ourChiefFinancialOfficer,at$475,000andPeterBusse,ourChiefOperatingOfficer,atCAN$350,000.Wealsoestablishedthemaximumdiscretionarycashbonuseligibilitywithrespecttothecalendaryear ended December 31, 2016 at up to 70% of such salaries for Messrs. Jones and Hallam and up to 60% of such salary for Mr. Busse, based onmilestonesanddeliverablesestablishedbythecompensationcommitteeoftheCompany.

FurtherdetailsconcerningtheCompany,includinginformationwithrespecttotheCompany'sassets,operationsandhistory,areprovidedintheAIFandotherdocumentsincorporatedbyreferenceintothisProspectus. Readersareencouragedtothoroughlyreviewthesedocumentsastheycontainimportant informationabouttheCompany.

19

RISKFACTORS

AninvestmentintheSecuritiesinvolvesahighdegreeofriskandmustbeconsideredahighlyspeculativeinvestmentduetothenatureoftheCompany'sbusiness and the present stage of exploration and development of its mineral properties. Resource exploration and development is a speculative business,characterizedbyanumberofsignificantrisksincluding,amongotherthings,unprofitableeffortsresultingnotonlyfromthefailuretodiscovermineraldepositsbutalsofromfindingmineraldeposits,which,thoughpresent,areinsufficientinquantityorqualitytoreturnaprofitfromproduction.

Prospectivepurchasers of theSecurities shouldcarefully considertherisk factorsset out below,aswell astheinformationincludedinanyProspectusSupplementandindocumentsincorporatedbyreferenceinthisProspectusandanyapplicableProspectusSupplement,beforemakinganinvestmentdecisiontopurchasetheSecurities.Specificreferenceismadetothesectionentitled"RiskFactors"intheAIF.See"DocumentsIncorporatedbyReference".Withoutlimitingtheforegoing,thefollowingriskfactorsshouldbegivenspecialconsiderationwhenevaluatinganinvestmentintheSecurities.Eachoftherisksdescribedhereinandin these sections and documents could materially and adversely affect our business, financial condition, resultsof operations andprospects, cause actualeventstodiffermateriallyfromthosedescribedintheForward-LookingStatementsandinformationrelatingtotheCompanyandcouldresultinalossofyourinvestment.AdditionalrisksnotcurrentlyknowntotheCompany,orthattheCompanycurrentlydeemsimmaterial,mayalsohaveamaterialadverseeffectontheCompany.

RisksRelatingtotheCompany

The Company will require additional financing, which may not be available on acceptable terms, if at all.

TheAmended&RestatedSprottFacilityrequirestheCompanytocompletetheEquityFinancingsbyDecember31,2016.EveniftheEquityFinancingsandanyOfferingsaresuccessfullycompleted,theCompanymayberequiredtosourceadditionalfinancingbywayofprivateorpublicofferingsofequityordebtorthesaleofprojectorpropertyinterestsinordertohavesufficientworkingcapitalforthedevelopmentandoperationofProject1andthecontinuedexplorationontheWaterbergProject, aswell asforgeneral workingcapital purposes. TheProject 1WorkingCapital Facilities provide, however, that theSprott Lenderscanrequire repayment of the SecondSprott Advancefromthe proceeds of anequity or debt financing(excludingintercompanyfinancings) prior to December 31,2017.Inaddition,50%oftheproceedsfromanyequityordebtfinancings(excludingintercompanyfinancings)withavalueexceedingUS$1millionthatcloseafterJanuary31,2017,inthecaseoftheAmended&RestatedSprottFacility(notincludingfinancingswheretheproceedsareusedtorepaytheSecondSprottAdvance,attheelectionoftheSprottLenders)andDecember31,2017,inthecaseoftheLibertyFacility,aretobepaidtotheLendersinpartialrepaymentoftheProject1WorkingCapitalFacilities,subjecttotermsandconditionsoftheIntercreditorAgreement.

Thesuccessandthepricingofanysuchcapitalraisingand/ordebtfinancingwillbedependentupontheprevailingmarketconditionsatthattime.TherecanbenoassurancethatfinancingwillbeavailabletotheCompanyor,ifitisavailable,thatitwillbeofferedonacceptableterms.IfadditionalfinancingisraisedthroughtheissuanceoftheSecurities,thismayhaveadepressiveeffectonthepriceoftheCommonSharesandtheinterestsofshareholdersinthenetassetsoftheCompanymaybediluted.

AnyfailurebytheCompanytoobtainrequiredfinancingonacceptabletermsoronatimelybasiscouldcausetheCompanytodelaydevelopmentofitsmaterialprojectsorcouldresultintheCompanybeingforcedtosellsomeofitsassetsonanuntimelyorunfavorablebasis.AnysuchdelayorsalecouldhaveamaterialadverseeffectontheCompany'sfinancialcondition,resultsofoperationsandliquidity.FailuretocompletetheEquityFinancingsbyDecember31,2016wouldconstituteaneventofdefaultundertheProject1WorkingCapitalFacilities.AnydefaultundertheProject1WorkingCapitalFacilitiescouldresultinthelossoftheCompany'sentireinterestinPTMRSA,andthereforeitsinterestsinProject1,Project3andtheWaterbergProject.

The Company has a history of losses and it anticipates continuing to incur losses.

TheCompanyhasahistoryoflosses.TheCompanyanticipatescontinuedlossesuntilitcansuccessfullyplaceoneormoreofitspropertiesintocommercialproductiononaprofitablebasis.ItcouldbeyearsbeforetheCompanyreceivesanyprofitsfromanyproductionofmetals,ifever.IftheCompanyisunabletogenerate

20

significantrevenueswithrespecttoitsproperties,theCompanywillnotbeabletoearnprofitsorcontinueoperations.

The Company may be unable to generate sufficient cash to service its debt, the terms of the agreements governing the Company's debt may restrict its currentor future operations and the indebtedness may adversely affect the Company's financial condition and results of operations.

TheCompany'sabilitytomakescheduledpaymentsontheProject1WorkingCapitalFacilitieswilldependonitsabilitytosuccessfullyramp-upproductionat Project 1, andontheCompany'sfinancial conditionandoperatingperformance, whicharesubject toprevailingeconomicandcompetitiveconditionsandtocertainfinancial,business,legislative,regulatoryandotherfactorsbeyonditscontrol.IftheCompany'scashflowsandcapitalresourcesareinsufficienttofunditsdebtserviceobligations,theCompanycouldfacesubstantialliquidityproblemsandcouldbeforcedtoreduceordelayinvestmentsandcapitalexpendituresortodisposeofmaterialassetsoroperations,seekadditionaldebtorequitycapitalorrestructureorrefinancetheCompany'sindebtedness,includingindebtednessundertheProject1WorkingCapitalFacilities.TheCompanymaynotbeabletoeffectanysuchalternativemeasuresoncommerciallyreasonabletermsoratalland,evenifsuccessful,thosealternativesmaynotallowtheCompanytomeetitsscheduleddebtserviceobligations.

Inaddition,abreachofthecovenantsundertheProject1WorkingCapitalFacilitiesortheCompany'sotherdebtinstrumentsfromtimetotimecouldresultinaneventofdefaultundertheapplicableindebtedness.Suchadefaultmayallowthecreditorstoacceleratetherelateddebt,mayresultintheimpositionofdefaultinterest,andmayresultintheaccelerationofanyotherdebttowhichacrossaccelerationorcrossdefaultprovisionapplies.Inparticular,acrossdefaultprovisionapplies totheAmended&RestatedSprott Facility andtheLiberty Facility. Intheevent a Lender accelerates therepayment of theCompany's borrowings, theCompanymaynothavesufficientassetstorepayitsindebtedness.

TheProject1WorkingCapitalFacilitiescontainanumberofcovenantsthatimposeoperatingandfinancialrestrictionsontheCompanyandmaylimittheCompany'sabilitytoengageinactsthatmaybeinitslongtermbestinterest.Inparticular,theProject1WorkingCapitalFacilitiesrestricttheCompany'sabilitytomodifymaterial contracts, todisposeofassets, tousetheproceedsfrompermitteddispositions, toincuradditional indebtedness, toenterintotransactionswithaffiliates, andtogrant security interests or encumbrances andtouseproceedsfromfuture debt or equityfinancings. In addition, theCompanymust obtaintheconsentoftheagentundereachProject1WorkingCapitalFacilitytoconsolidateandcontributetheWaterbergJVProjectandtheWaterbergExtensionProjecttoWaterbergJVCo.Suchconsentsmaynotbeunreasonablywithheldbytheagents.Asaresultoftheserestrictions,theCompanymaybelimitedinhowitconductsitsbusiness,maybeunabletoraiseadditionaldebtorequityfinancing,maybeunabletocompeteeffectivelyortotakeadvantageofnewbusinessopportunitiesormay become in breach of its obligations to joint venture partners and others, each of which may affect the Company's ability to grow in accordance with itsstrategyormayotherwiseadverselyaffectitsbusinessandfinancialcondition.

Further, theCompany'smaintenanceofsubstantiallevelsofdebtcouldadverselyaffectitsfinancialconditionandresultsofoperationsandcouldadverselyaffectitsflexibilitytotakeadvantageofcorporateopportunities.SubstantiallevelsofindebtednesscouldhaveimportantconsequencestotheCompany,including:

• limiting the Company's ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions or other generalcorporaterequirements,orrequiringtheCompanytomakenon-strategicdivestitures;

• requiringasubstantialportionoftheCompany'scashflowstobededicatedtodebtservicepaymentsinsteadofotherpurposes,therebyreducingtheamountofcashflowsavailableforworkingcapital,capitalexpenditures,acquisitionsandothergeneralcorporatepurposes;

• increasingtheCompany'svulnerabilitytogeneraladverseeconomicandindustryconditions;

• exposingtheCompanytotheriskofincreasedinterestratesforanyborrowingsatvariableratesofinterest;

21

• limitingtheCompany'sflexibilityinplanningforandreactingtochangesintheindustryinwhichitcompetes;

• placingtheCompanyatadisadvantagecomparedtoother,lessleveragedcompetitors;and

• increasingtheCompany'scostofborrowing.

The Company has granted first and second ranking security interests in favour of the Lenders over all of its personal property, subject to certain exceptions,and the Company has pledged its shares of PTM RSA to the Lenders under the Project 1 Working Capital Facilities, which may have a material adverse effecton the Company.

TosecureitsobligationsundertheProject1WorkingCapitalFacilities(andinthecaseoftheLibertyFacility,theproductionpaymentagreementbetweentheCompany, PTM RSA and Liberty Holdings, dated November 19, 2015, as amended, with respect to Project 1 and Project 3 (the " Production PaymentAgreement")),theCompanyhasenteredintoageneralsecurityagreementunderwhichtheCompanyhasgrantedfirstandsecondrankingsecurityinterestsinfavouroftheLendersoverallofitspresentandafter-acquiredpersonalproperty,subjecttocertainexceptions,andasharepledgeagreementpursuanttowhichtheCompanyhasgrantedafirstandsecondprioritysecurityinterestinfavouroftheLendersoveralloftheissuedsharesinthecapitalofPTMRSA.PTMRSAhasalsoguaranteedtheCompany'sobligationstotheLenders.ThesesecurityinterestsandguaranteemayimpacttheCompany'sabilitytoobtainprojectfinancingfortheWaterbergProjectoritsabilitytosecureothertypesoffinancing.TheProject1WorkingCapitalFacilitieshavevariouscovenantsandprovisions,includingtarget productionprovisions, payment covenants andfinancial tests that must besatisfiedandcomplied with during the termof the Project 1 Working CapitalFacilities.Thereisnoassurancethatsuchcovenantswillbesatisfied.AnydefaultunderProject1WorkingCapitalFacilities,includinganycovenantsthereunder,couldresultinthelossoftheCompany'sentireinterestinPTMRSA,andthereforeitsinterestsinProject1,Project3andtheWaterbergProject.

The Company has a history of negative operating cash flow, and may continue to experience negative operating cash flow.

TheCompanyhashadnegativeoperatingcashflowinrecentfinancialyears.TheCompany'sabilitytoachieveandsustainpositiveoperatingcashflowwilldependonanumberoffactors,includingtheCompany'sabilitytoproduceatProject1onaprofitablebasisandadvancetheWaterbergProjectintoproduction.TotheextentthattheCompanyhasnegativecashflowinfutureperiods,theCompanymayneedtodeployaportionofitscashreservestofundsuchnegativecashflow.TheProject1WorkingCapitalFacilitiesrequirethattheCompanymaintainconsolidatedcashandcashequivalentsofatleastUS$5millionandworkingcapitalinexcessofUS$5million.TheLibertyFacilityrequiresthattheCompanymaintainadebtservicecoverageratioofatleast1.20to1.TheCompanymayberequiredtoraiseadditionalfundsthroughtheissuanceofadditionalequityordebtsecuritiestosatisfytheminimumcashbalancerequirementsundertheProject1WorkingCapitalFacilities.TheProject1WorkingCapitalFacilitiesprovide,however,thataportionoftheproceedsfromanyequityordebtfinancings(excludingintercompanyfinancings)arerequiredtobepaidtotheLendersinpartialrepaymentoftheProject1WorkingCapitalFacilities,subjecttothetermsandconditionsoftheIntercreditorAgreement.See"BusinessoftheCompany—Project1WorkingCapitalFacilities".TherecanbenoassurancethatadditionaldebtorequityfinancingorothertypesoffinancingwillbeavailableifneededorthatthesefinancingswillbeontermsatleastasfavorabletotheCompanyasthoseobtainedpreviously.

The Company may not be able to continue as a going concern.

TheCompanyhaslimitedfinancialresources.TheCompany'sabilitytocontinueasagoingconcernisdependentupon,amongother things,theCompanyestablishing commercial quantities of mineral reserves and successfully establishing profitable production of such minerals or, alternatively, disposing of itsinterestsonaprofitablebasis. Anyunexpectedcosts, problemsordelayscouldseverelyimpacttheCompany'sabilitytocontinueexplorationanddevelopmentactivities. Should the Company be unable to continue as a going concern, realization of assets and settlement of liabilities in other than the normal course ofbusiness maybe at amounts materially different than the Company's estimates. The amountsattributed to the Company's exploration properties in its financialstatementsrepresentacquisitionandexplorationcostsandshouldnotbetakentorepresentrealizablevalue.

22

There may be further delays in the production ramp-up of Project 1 which could result in a default under the Project 1 Working Capital Facilities and couldhave a material adverse effect on the Company's financial condition and prospects.

The ramp-up of production at Project 1 has been slower than anticipated and the Company may experience further delays. Timelines are based onmanagement'scurrentexpectationsandmaybeaffectedbyanumberoffactors,including:

• theavailabilityofadequatefundstocompleteundergrounddevelopment,includingtheanticipatednetproceedsofanOffering,orfundsobtainedthroughalternativesourcesoffinancing;

• theabilityoftheCompanytocompletetheEquityFinancingsbyDecember31,2016;

• consultants'analysesandrecommendations;

• therateatwhichexpendituresareincurred;

• delaysinconstructionschedules;

• contractorperformanceanddeliveryofservices,changesincontractorsortheirscopeofworkoranydisputeswithcontractors;

• availabilityofmajorequipmentandpersonnel;

• the Company's ability to maintain requisite permits and licenses (including a water use license, and the environmental authorization heldbyMaseve);

• otherpotentiallyrequiredauthorizationsarisingfromrecentlegislativeamendments;and

• therateofundergrounddevelopmentinthenorthandsouthdeclines.

SomeoftheabovefactorsarebeyondtheCompany'scontrolandcouldcausemanagement'stimelinesnottoberealized.Itiscommonforminingprojectstoexperienceunexpectedcosts,problemsanddelays.ThetargetedstartdateforfirstconcentrateproductionatProject1inthefourthquarterofcalendar2015wasdelayed.Delaysinproductionramp-upatProject1havealsooccurred. Whiletherehasbeennomaterial costoverrunwithregardtocapital costs, thedelayinramp-upofproductionatProject1hascausedadelayintheCompany'sreceiptofanticipatedproductionrevenue.TheCompanyhadplannedtousethisrevenuetocoveraportionoftheongoingcapitalcostsofProject1.AsofSeptember30,2016,theanticipatedproductionrevenueshortfallofapproximatelyUS$42millionhasbeenaccommodatedbyamountsdrawndownundertheLibertyFacilityandtheAmended&RestatedSprottFacility.Furtherdelaysintheproductionramp-upofProject1couldhaveamaterialadverseeffectontheCompany'sfinancialconditionandprospectsandmayalsoresultinadefaultunderthetargetproductionprovisionsoftheProject1WorkingCapitalFacilities,whichmayaccelerateamountsduethereunderandpermittheLenderstorealizeonanyapplicablesecuritythereunder. This could result in a complete loss of the Company's assets, including its investment in PTMRSA, and therefore in Project 1, Project 3 andtheWaterbergProject.ThereisnoassurancethatinsuranceforanyinterruptioninproductionatProject1willbeavailabletotheCompanyoneconomictermsorinsuchamountsaswouldbeadequatetocoveralllossesoratall.

Interruptions inproductionmaytriggereventsofdefaultundertheProject1WorkingCapitalFacilities.UndertheProject1WorkingCapitalFacilities,theCompanywillbeindefaultifitfailstomeetrollingthree-monthaverageproductiontargetsatProject1,startingonOctober31,2016.IftheCompanyfailstomeetthese production targets, there is no guarantee that Liberty Holdings or the Sprott Lenders will agree to further amendments to the Project 1 Working CapitalFacilities.AnydefaultundertheProject1WorkingCapitalFacilitiescouldresultinthelossoftheCompany'sinterestinPTMRSAandthereforeitsinterestsinProject1,Project3andtheWaterbergProject.

There can be no assurance that underground development and production ramp-up at Project 1 will meet its production ramp-up timeline or be completed atall or that production at Project 1 will meet the Company's expectations.

TheCompanyisintheprocessofundergrounddevelopmentandproductionramp-upatProject1.WhiletheCompanyexpectscommercialproductiontobeachieved by early 2017, there can be no assurance that the Company will meet this target. In addition, the Company has certain expectations with respect toperformance

23

ofProject 1, but there can be no assurance that after the underground development and production ramp-up is complete that Project 1 will perform to suchexpectations. Delays in the undergrounddevelopment and production ramp-up and lower-than-expected performance could impact the Company's revenue andcashfloworresultinaneventofdefaultrelatingtothetargetproductionprovisionsundertheProject1WorkingCapitalFacilities.

Until suchtimethat steadystate commercial production is achievedat Project 1, there is noguarantee that Project 1 will generate projected revenueorcashflow.

The Company's properties, including Project 1, may not be brought into a state of commercial production.

AlthoughtheCompanyhascompletedcommissioningatProject1,undergrounddevelopmentandproductionramp-upcontinueand Project1hasnotyetreachedcommercialproduction.Developmentofmineralpropertiesinvolvesahighdegreeofriskandfewpropertiesthatareexploredareultimatelydevelopedintoproducingmines.ThecommercialviabilityofamineraldepositisdependentuponanumberoffactorswhicharebeyondtheCompany'scontrol,includingtheattributesofthedeposit,commodityprices,governmentpoliciesandregulationandenvironmentalprotection.Fluctuationsinthemarketpricesofmineralsmayrenderreservesanddepositscontainingrelativelylowergradesofmineralizationuneconomic.ThedevelopmentoftheCompany'sproperties,includingProject1,willrequireobtaininglanduseconsents,permitsandtheconstructionandoperationofmines,processingplantsandrelatedinfrastructure.AlthoughProject1hasbeengrantedthenecessarypermitsandlandusezoning,theCompanyissubjecttoalloftherisksassociatedwithestablishingnewminingoperations,including:

• thetimingandcost,whichcanbeconsiderable,oftheconstructionofminingandprocessingfacilitiesandrelatedinfrastructure;

• theavailabilityandcostofskilledlabourandminingequipment;

• theavailabilityandcostofappropriatesmeltingand/orrefiningarrangements;

• the need to obtain and maintain necessary environmental and other governmental approvals and permits, and the timing of those approvalsandpermits;

• intheeventthattherequiredpermitsarenotobtainedinatimelymanner,therisksofgovernmentenvironmentalauthoritiesissuingdirectivesorcommencing enforcement proceedings to cease operations or administrative, civil and criminal sanctions being imposed on the Company, itsdirectorsandemployees;

• theavailabilityoffundstofinanceconstructionanddevelopmentactivities;

• potential opposition from non-governmental organizations, environmental groups or local groups which may delay or prevent developmentactivities;and

• potentialincreasesinconstructionandoperatingcostsduetochangesinthecostoffuel,power,materialsandsuppliesandforeignexchangerates.

Thecosts, timingandcomplexities ofmineconstructionanddevelopmentareincreasedbytheremotelocationoftheWaterbergProject, withadditionalchallengesrelatedthereto,includingwaterandpowersupplyandothersupportinfrastructure.Forexample,waterresourcesarescarceattheWaterbergProject.IftheCompanyshoulddecidetomineattheWaterbergProject,itwillhavetoestablishsourcesofwateranddeveloptheinfrastructurerequiredtotransportwatertotheprojectarea.Similarly,theCompanywillneedtosecureasuitablelocationbypurchaseorlongtermleaseofsurfaceoraccessrightsattheWaterbergProjecttoestablishthesurfacerightsnecessarytomineandprocess.

It is common in new mining operations to experience unexpected costs, problems and delays during development, construction and mine ramp-up.Accordingly,therearenoassurancesthattheCompany'sproperties,includingProject1,willbebroughtintoastateofcommercialproduction.

24

Estimates of mineral reserves and mineral resources are based on interpretation and assumptions and are inherently imprecise.

The mineral resource and mineral reserve estimates contained in this Prospectus and the other documents incorporated by reference herein have beendetermined and valued based on assumed future prices, cut off grades and operating costs. However, until mineral deposits are actually mined and processed,mineral reserves andmineral resources must be considered as estimates only. Any such estimates are expressions of judgment based on knowledge, miningexperience, analysis of drilling results and industry practices. Estimates of operating costs are based on assumptions including those relating to inflation andcurrencyexchange,whichmayproveincorrect.Estimatesofmineralizationcanbeimpreciseanddependupongeologicalinterpretationandstatisticalinferencesdrawnfromdrillingandsamplinganalysis,whichmayprovetobeunreliable.Inaddition,thegradeand/orquantityofpreciousmetalsultimatelyrecoveredmaydifferfromthatindicatedbydrillingresults.Therecanbenoassurancethatpreciousmetalsrecoveredinsmallscaletestswillbeduplicatedinlargescaletestsunderonsiteconditionsorinproductionscale.Amendmentstothemineplansandproductionprofilesmayberequiredastheamountofresourceschangesoruponreceiptoffurtherinformationduringtheimplementationphaseoftheproject.Extendeddeclinesinmarketpricesforplatinum,palladium,rhodiumandgoldmayrenderportionsoftheCompany'smineralizationuneconomicandresultinreducedreportedmineralization.Anymaterialreductionsinestimatesofmineralization,oroftheCompany'sabilitytodevelopitspropertiesandextractandsellsuchminerals,couldhaveamaterialadverseeffectontheCompany'sresultsofoperationsorfinancialcondition.

Actual capital costs, operating costs, production and economic returns may differ significantly from those the Company has anticipated and there are noassurances that any future development activities will result in profitable mining operations.

ThecapitalcoststotaketheCompany'sprojectsintocommercialproductionmaybesignificantlyhigherthananticipated.NoneoftheCompany'smineralproperties has an operating history uponwhich the Company can base estimates of future operating costs. Decisions about the development of the Company'smineralpropertieswillultimatelybebaseduponfeasibilitystudies.Feasibilitystudiesderiveestimatesofcashoperatingcostsbasedupon,amongotherthings:

• anticipatedtonnage,gradesandmetallurgicalcharacteristicsoftheoretobeminedandprocessed;

• anticipatedrecoveryratesofmetalsfromtheore;

• cashoperatingcostsofcomparablefacilitiesandequipment;and

• anticipatedclimaticconditions.

Capitalcosts,operatingcosts,productionandeconomicreturnsandotherestimatescontainedinstudiesorestimatespreparedbyorfortheCompanymaydiffersignificantlyfromthoseanticipatedbytheCompany'scurrent studiesandestimates, andtherecanbenoassurancethat theCompany'sactual capital andoperatingcostswillnotbehigherthancurrentlyanticipated.Todate,costescalationinRandtermshasbeensubstantiallyoffsetbyaweakerRand,butthereisnoguaranteethatthisoutcomewillcontinue.Asaresultofhighercapitalandoperatingcosts,productionandeconomicreturnsmaydiffersignificantlyfromthosetheCompanyhasanticipated.

The Company is subject to the risk of fluctuations in the relative values of the U.S. dollar, the Rand and the Canadian dollar.

TheCompanymaybeadverselyaffectedbyforeigncurrencyfluctuations.EffectiveSeptember1,2015,theCompanyadoptedU.S.dollarsasthecurrencyforthepresentationofitsfinancialstatements.Accordingly,thefinancialstatementsincorporatedbyreferenceinthisProspectusarepresentedinCanadiandollars,inthecaseofthefiscalyearsendedAugust31,2015and2014,andinU.S.dollars,inthecaseofthethree-andnine-monthperiodsendedMay31,2016andMay31,2015. Historically, the Company has primarily generated funds through equity investments into the Company denominated in Canadian or U.S. dollars. In thenormalcourseofbusiness,theCompanyentersintotransactionsforthepurchaseofsuppliesandservicesprimarilydenominatedinRandorCanadiandollars.TheCompanyalsohasassets,cashandliabilitiesdenominatedinRand,Canadian

25

dollars and U.S. dollars. Several of the Company's options to acquire properties or surface rights in South Africa may result in payments by the CompanydenominatedinRandorinU.S.dollars.Exploration,developmentandadministrativecoststobefundedbytheCompanyinSouthAfricawillalsobedenominatedin Rand. Settlement of sales of minerals from the Company's projects, once commercial production commences, will be in Rand, and will be converted toU.S.dollarstomakepaymentofprincipalandinterestontheProject1WorkingCapitalFacilities.FluctuationsintheexchangeratesbetweentheU.S.dollarandtheRandorCanadiandollarmayhaveamaterialadverseeffectontheCompany'sfinancialresults.

In addition, South Africa has in the past experienced double digit rates of inflation. If South Africa experiences substantial inflation in the future, theCompany's costs in Rand terms will increase significantly, subject to movements in applicable exchange rates. Inflationary pressures may also curtail theCompany'sabilitytoaccessglobalfinancialmarketsinthelongertermanditsabilitytofundplannedcapitalexpenditures,andcouldmateriallyadverselyaffecttheCompany'sbusiness,financialconditionandresultsofoperations.PotentialdowngradestoSouthAfrica'ssovereigncurrencyratingsbyinternationalratingsagenciesalsowouldlikelyadverselyaffectthevalueoftheRandrelativetotheCanadianorU.S.dollar.TheSouthAfricangovernment'sresponsetoinflationorothersignificantmacro-economicpressuresmayincludetheintroductionofpoliciesorothermeasuresthatcouldincreasetheCompany'scosts,reduceoperatingmarginsandmateriallyadverselyaffectitsbusiness,financialconditionandresultsofoperations.

Metal prices are subject to change, and low prices or a substantial or extended decline or volatility in such prices could materially and adversely affect thevalue of the Company's mineral properties and potential future results of operations and cash flows.

Metalpriceshavehistoricallybeensubjecttosignificantpricefluctuations.Noassurancemaybegiventhatmetalpriceswillremainstable.SignificantpricefluctuationsovershortperiodsoftimemaybegeneratedbynumerousfactorsbeyondthecontroloftheCompany,including:

• domesticandinternationaleconomicandpoliticaltrends;

• expectationsofinflation;

• currencyexchangefluctuations;

• interestrates;

• globalorregionalconsumptionpatterns;

• speculativeactivities;and

• increasesordecreasesinproductionduetoimprovedminingandproductionmethods.

LowmetalpricesorsignificantorcontinuedreductionsorvolatilityinmetalpricesmayhaveanadverseeffectontheCompany'sbusiness,includingtheamountoftheCompany'smineralreserves,theeconomicattractivenessoftheCompany'sprojects,theCompany'sabilitytoobtainfinancinganddevelopprojects,theamountoftheCompany'srevenuesorprofitorlossandthevalueoftheCompany'sassets.AnimpairmentinthevalueoftheCompany'sassetswouldrequiresuchassetstobewrittendowntotheirestimatednetrecoverableamount.TheCompanyhasnotyetdeterminedwhetherawritedownofassetswillberequiredasatAugust31,2016.

The failure of the Company or its joint venture partners to fund their pro-rata share of funds under the respective joint ventures may have a material adverseeffect on the Company's business and results of operations.

TheCompany,throughitssubsidiaries,participatesinjointventureswithvariouspartners.Inparticular,PTMRSA,AfricaWideandMasevearepartiestothe Maseve Shareholders Agreement related to the exploration and development of Project 1 and Project 3. On October 18, 2013, Africa Wide advised theCompanythat it would not be funding its approximately US$21.8 million share of a six-month budget and cash call unanimously approved by the board ofdirectorsofMaseve.OnMarch3,2014,AfricaWideadvisedtheCompanythatitwouldnotbefundingitsapproximatelyUS$21.52millionshareofasecondcashcall.AfricaWide'sdecisionmayresultinsignificantadverseeffectsontheCompanyandMaseve,includingdelays,increases

26

inexpenses,lessadvantageousfinancingtermsand,potentially,thehaltingofoperationsatProject1.Forexample,asaresultofAfricaWide'sdecisionnottofunditscashcalls,aprocurementfreezewasimplementedonProject1forapproximately12weeksfromlate2013into2014,whichresultedindelaystotheacquisitionand procurement of various goods and services, delaying mill and surface infrastructure construction. Any failure by PTM RSA, Africa Wide or any futureshareholderundertheMaseveShareholdersAgreementtocontributeitspro-ratashareofacashcallwouldresultindilutionofthatparty'sinterestinproportiontotheshortfall,andcouldhaveamaterialadverseeffectontheCompanyasdiscussedabove.

PursuanttothetermsoftheJOGMEC2ndAmendment,JOGMEChasbeenfundingallworkontheWaterbergProjectinaccordancewithaUS$20millioncommitment.IfthecorporatizationoftheWaterbergProjectiscompletedandtheWaterbergProjectbecomesheldbyWaterbergJVCo.,itisanticipatedthattheproceduresgoverningfurtherfundingfortheWaterbergProjectwillbesetforthinanewshareholders'agreementamongPTMRSA,JOGMECandMnombo.Thisagreement is in the process of beingnegotiated, basedonprovisions set forth in the JOGMECAgreement, as amendedbytheJOGMEC2nd Amendment.IfclosingoftheJOGMEC2ndAmendmentdoesnotoccur,theJOGMEC2ndAgreementwill terminateandthepartieswilldefaulttotheJOGMECAgreementarrangement,withsuchportionoftheUS$20millioninexpendituresfundingalreadypaidbyJOGMECbeingdeemedtobeanadvancebyJOGMECtowardsitsfuturespendingcommitmentsontheWaterbergJVProject.TheCompanyandMnombowillberequiredtomakecorrespondingcashpaymentsinrespectoftheWaterbergJVProjecttoproratamatchtheadvancepaymentsmadebyJOGMEC,within120daysoftheterminationoftheJOGMEC2ndAmendment,failingwhich they shall suffer equity dilutionsunder the JOGMECAgreement as if such equivalent pro rata amounts were approved programfunding in which theyelectednottoparticipate.

PriortoJOGMEC'sUS$20millioncommitment,theCompanyfundedMnombo's26%shareoftheworkontheWaterbergProject.TheabilityofMnombotorepaytheCompanyforadvancesasatAugust31,2016ofapproximatelyRand25.53million(approximatelyUS$1.74millionasatAugust31,2016)ortofundfutureinvestmentintheWaterbergProjectmaybeuncertain.IftheCompanyfailstofundMnombo'sfuturecapitalobligationsfortheWaterbergProject,Mnombomayberequiredtoobtainfundingfromalternativesources,whichmaynotbeavailableonfavorableterms,oratall.IfMnomboisunabletofunditsshareofsuchwork,thismaydelayprojectexpendituresandmayresultindilutionofMnombo'sinterestintheWaterbergProjectandrequirethesaleofthedilutedintereststoanotherqualifiedBEEentity.

BecausethedevelopmentoftheCompany'sjointventureprojectsdependsontheabilitytofinancefurtheroperations,anyinabilityoftheCompanyoroneormoreofitsjointventurepartnerstofunditsrespectivefundingobligationsandcashcallsinthefuturecouldrequiretheotherpartners,includingtheCompany,toincreasetheirfundingoftheproject,whichtheymaybeunwillingorunabletodoonatimelyandcommerciallyreasonablebasis,oratall.Theoccurrenceoftheforegoing,thefailureofanypartner,includingtheCompany,toincreasetheirfundingasrequiredtocoveranyshortfall,aswellasanydilutionoftheCompany'sinterests in its joint ventures as a result of its own failure to satisfy a cash call, may have a material adverse effect on the Company's business and resultsofoperations.

The dilution of Africa Wide may have a material adverse effect on the Company's business and results of operations.

UnderthetermsoftheMaseveShareholdersAgreement,theboardofdirectorsofMasevemaymakecashcallsonPTMRSAandAfricaWide.AfricaWidedeclined to fund its share of cash calls in October 2013 and in March 2014. As a result of the first missed cash call, the Company entered into arbitrationproceedings against Africa Wide to determine the extent of the dilution of Africa Wide's interest in Maseve, in accordance with the terms of the MaseveShareholdersAgreement.OnAugust20,2014,anarbitratordeterminedthatAfricaWide'sshareholdinginMasevewouldbereducedto21.2766%.Basedonthearbitrationaward,AfricaWidehasbeenfurtherdilutedtoapproximately17.1%asaresultofAfricaWide'sfailuretofundthesecondcashcallandthereforetheCompany'sshareholdinginMasevehasincreasedtoapproximately82.9%.Inaddition,asaresultofthetransactionsexplainedundertheriskfactorcaptioned"Thefailure to maintain or increase equity participation by HDSAsin the Company's prospecting and mining operations could adversely affect theCompany'sabilitytomaintainitsprospectingandminingrights",thereisnoguaranteetheDMRwouldrecognizeAfricaWideasaqualifiedBEEentity.TocomplywiththeAmendedBroad-BasedSocio-EconomicEmpowermentCharterfortheSouthAfricanMiningIndustry(the"MiningCharter"),Masevewasrequiredtohave26%ownershipby

27

aqualifiedBEEentitybyDecember31,2014inordertomaintaintheMiningRightingoodstanding.SubsequenttotheendoftheCompany'sthirdfiscalquarterof2016,theDMRrequestedanupdateregardingtheCompany'seffortstoincreasetheHDSAequityownershippercentageinMasevefrom17.1%to26%.TheCompanymetwiththeDMRinearlyJune2016andtheDMRrequestedafurtherupdatebyAugust7,2016,whileremindingtheCompanyoftheriskofpotentialactionunderSections47and93oftheMPRDAiftheCompanywerenottoincreasetheHDSAownershippercentage.TheCompanyhasmadeseveralattemptstoscheduleameetingwiththeDMRtofurtherdiscussthisissue.Todate,whiletheCompanyhasbeenadvisedbytheDMRthatthematterwillbediscussedatalaterdate,nosuchmeetinghastakenplaceandtheDMRhasnotissuedanoticeofnon-compliancewiththeMPRDA.

InadditiontounaffiliatedBEEqualifiedcompanies,theCompanyhasconsideredMnomboastheBEEcompanyforsuchatransactionandremainsopentoother possibilities. Should Mnombo acquire an interest in Maseve, as with funding to date for the Waterberg Project, the Company would expect to coverMnombo'sshareofanycashcalls.IfMnombowasnotdeemedtobeasuitableBEEcompanyoriftheCompanywasunsuccessfulinreachinganagreementonthetermsofMnombo'sinvestmentinMaseve,theCompanywouldberequiredtoreachanagreementwithanotherqualifiedBEEentityand,failingthat,theCompanymayfacepossiblesuspensionorcancellationoftheMiningRightunderaprocessgovernedbySection47oftheMPRDA.

Any disputes or disagreements with the Company's joint venture partners could materially and adversely affect the Company's business.

TheCompanyparticipatesinjointventuresandmayenterintoothersimilararrangementsinthefuture.PTMRSAisapartytotheMaseveShareholdersAgreementrelatedtotheexplorationanddevelopmentofProject1andProject3.Inaddition,PTMRSAisalsoapartytotheWaterbergExtensionJVAgreementand the JOGMEC Agreement, as amended by the JOGMEC 2 nd Amendment, related to the exploration and development of the Waterberg Project. If thecorporatizationoftheWaterbergProjectiscompleted,PTMRSAwillbecomepartytoashareholders'agreementgoverningWaterbergJVCo.PTMRSAisalsoa49.9% shareholder of Mnombo and the relationship among the shareholders of Mnombo is governed by a formal shareholders' agreement. Any dispute ordisagreementwithajointventurepartner,anychangeintheidentity,managementorstrategicdirectionofajointventurepartner,oranydisagreementamongtheMnomboshareholders,includingwithrespecttoMnombo'sroleintheWaterbergProject,couldmateriallyadverselyaffecttheCompany'sbusinessandresultsofoperations.IfadisputearisesbetweentheCompanyandajointventurepartnerortheotherMnomboshareholdersthatcannotberesolvedamicably,theCompanymaybeunabletomoveitsprojectsforwardandmaybeinvolvedinlengthyandcostlyproceedingstoresolvethedispute,suchasthedisputethatrecentlyledtoarbitrationwithAfricaWide,whichcouldmateriallyandadverselyaffecttheCompany'sbusinessandresultsofoperations.

Most of the Company's properties contain no known mineral reserves.

OtherthanProject1,alloftheCompany'spropertiesareintheexplorationstage,meaningthattheCompanyhasnotdetermined whethersuchpropertiescontainmineralreservesthatareeconomicallyrecoverable.TheCompanymayneverdiscovermetalsincommerciallyexploitablequantitiesattheseproperties.Failuretodiscover economically recoverable reserves ona mineral property will require the Companyto write off the costs capitalized for that property in itsfinancialstatements.

SubstantialadditionalworkwillberequiredinordertodetermineifanyeconomicdepositsexistontheCompany'spropertiesoutsideofProject1.Substantialexpendituresarerequiredtoestablishmineralreservesthroughdrillingandmetallurgicalandothertestingtechniques.Noassurancecanbegiventhatanylevelofrecoveryofanymineralreserveswillberealizedorthatanyidentifiedmineraldepositwilleverqualifyasacommercialmineableorebodythatcanbelegallyandeconomicallyexploited.

Completion of a pre-feasibility study for the Waterberg Project is subject to economic analysis requirements.

Completionofapre-feasibilitystudyfortheWaterbergProjectissubjecttocompletionofapositiveeconomicanalysisofthemineraldeposit.

28

If the Company is unable to retain key members of management, the Company's business might be harmed.

TheCompany'sdevelopmenttodatehasdepended,andinthefuturewillcontinuetodepend,ontheeffortsofitsseniormanagement including:R.MichaelJones,PresidentandChiefExecutiveOfficerandadirectoroftheCompany;FrankR.Hallam,ChiefFinancialOfficerandCorporateSecretaryandadirectoroftheCompany;andPeterBusse,ChiefOperatingOfficeroftheCompany.TheCompanycurrentlydoesnot,anddoesnotintendto,havekeypersoninsurancefortheseindividuals.DeparturesbymembersofseniormanagementcouldhaveanegativeimpactontheCompany'sbusiness,astheCompanymaynotbeabletofindsuitable personnel to replace departing management on a timely basis or at all. The loss of any member of the senior management team could impair theCompany'sabilitytoexecuteitsbusinessplanandcouldthereforehaveamaterialadverseeffectontheCompany'sbusiness,resultsofoperationsandfinancialcondition.

If the Company is unable to procure the services of skilled and experienced personnel, the Company's business might be harmed.

There is currently a shortage of skilled and experienced personnel in the mining industry in South Africa. The competition for skilled andexperiencedemployeesisexacerbatedbythefact that miningcompaniesoperatinginSouthAfricaarelegallyobligedtorecruit andretainhistoricallydisadvantagedSouthAfricans("HDSAs"),asdefinedrespectivelybytheMPRDAandtheBroad-BasedBlackEconomicEmpowermentAct,2003(the"BEEAct"),andwomenwiththe relevant skills and experience at levels that meet the transformation objectives set out in the MPRDA and the Mining Charter. Skilled and experiencedpersonnel are especially important at Project 1 since the deposit does not lend itself to mechanized methods. If the Company is unable to attract and retainsufficientlytrained,skilledorexperiencedpersonnel,itsbusinessmaysufferanditmayexperiencesignificantlyhigherstafforcontractorcosts,whichcouldhaveamaterialadverseeffectonitsbusiness,resultsofoperationsandfinancialcondition.

Conflicts of interest may arise among the Company's officers and directors as a result of their involvement with other mineral resource companies.

CertainoftheCompany'sofficersanddirectorsare,andothersmaybecome,associatedwithothernaturalresourcecompaniesthatacquireinterestsinmineralproperties.R.MichaelJones,PresidentandChiefExecutiveOfficerandadirectoroftheCompany,isalsothePresidentandChiefExecutiveOfficerandadirectorofWestKirklandMiningInc.("WKM"), apubliccompanywithmineral explorationpropertiesinOntarioandNevada,andadirectorofNextractionEnergyCorp.("NE"),apubliccompanywithoilpropertiesinAlberta,KentuckyandWyoming.FrankHallam,ChiefFinancialOfficerandCorporateSecretaryandadirector of the Company, is also a director, Chief Financial Officer and Corporate Secretary of WKM, and a director of NE. Eric Carlson, a director of theCompany,isadirectorofNE.DianaWalters,adirectoroftheCompany,wasformerlyanexecutiveofficerofLibertyHoldings,asignificantshareholderoftheCompany,theLenderundertheLibertyFacility,andtheholderofaproductionpaymentrightundertheProductionPaymentAgreement.

Suchassociationsmaygiverisetoconflictsofinterestfromtimetotime.Asaresultofthesepotentialconflictsofinterests, theCompanymaymisstheopportunity to participate incertain transactions, which may have a material adverse effect on the Company's financial position. The Company's directors arerequiredbylawtoacthonestlyandingoodfaithwithaviewtothebestinterestsoftheCompanyandtodiscloseanyinterestthattheymayhaveinanyprojectoropportunityoftheCompany.Ifasubjectinvolvingaconflictofinterestarisesatameetingoftheboardofdirectors,anydirectorinaconflictmustdisclosehisinterestandabstainfromvotingonsuchmatter.

The Company may become subject to litigation and other legal proceedings that may adversely affect the Company's financial condition and resultsof operations.

Allcompaniesaresubjecttolegalclaims,withandwithoutmerit.TheCompany'soperationsaresubjecttotheriskoflegalclaimsby employees,unions,contractors, lenders, suppliers, joint venture partners, shareholders, governmental agencies or others through private actions, class actions, administrativeproceedings,regulatoryactionsorotherlitigation.TheoutcomeoflitigationandotherlegalproceedingsthattheCompany

29

maybeinvolvedinthefuture,particularlyregulatoryactions,isdifficulttoassessorquantify.Plaintiffsmayseekrecoveryofverylargeorindeterminateamounts,and the magnitude of the potential loss relating to such lawsuits may remain unknown for substantial periods of time. Defense and settlement costs can besubstantial,evenwithrespecttoclaimsthathavenomerit.Duetotheinherentuncertaintyofthelitigationprocess,thelitigationprocesscouldtakeawayfromthetimeandeffort oftheCompany'smanagementandcouldforcetheCompanytopaysubstantial legalfees.TherecanbenoassurancethattheresolutionofanyparticularlegalproceedingwillnothaveanadverseeffectontheCompany'sfinancialpositionandresultsofoperations.

An actual or alleged breach or breaches in governance processes or fraud, bribery and corruption may lead to public and private censure, regulatory penalties,loss of licenses or permits and may damage the Company's reputation.

TheCompanyissubjecttoanti-corruptionlawsandregulations,includingtheCanadianCorruptionofForeignPublicOfficialsActand certainrestrictionsapplicabletoU.S.reportingcompaniesimposedbytheU.S.ForeignCorruptPracticesActof1977,asamended,andsimilaranti-corruptionandanti-briberylawsinSouthAfrica,whichgenerallyprohibitcompaniesfrombribingormakingotherprohibitedpaymentstoforeignpublicofficialsinordertoobtainorretainanadvantageinthecourseofbusiness.TheCompany'sCodeofBusinessConductandEthics,amongothergovernanceandcomplianceprocesses,maynotpreventinstances of fraudulent behavior anddishonesty nor guarantee compliance with legal and regulatory requirements. TheCompanyis particularly exposedto thepotential for corruption and bribery owing to the financial scale of the mining business in South Africa. In March 2014, the Organisation for EconomicCooperationandDevelopment("OECD")releasedits Phase3Report onImplementingtheOECDAnti-briberyConventioninSouthAfrica,criticizingSouthAfricaforfailingtoenforcetheanti-briberyconventiontowhichithasbeenasignatorysince2007.TheabsenceofenforcementofcorporateliabilityforforeignbriberycoincideswithrecentgrowthincorporateactivityinSouthAfrica'seconomicenvironment.Allegationsofbribery,improperpersonalinfluenceorofficialsholdingsimultaneousbusinessinterestshavebeenlinkedinrecentyearstothehighestlevelsoftheSouthAfricangovernment.TotheextentthattheCompanysuffersfromanyactualorallegedbreachorbreachesofrelevantlaws,includingSouthAfricananti-briberyandcorruptionlegislation,itmayleadtoregulatoryandcivilfines,litigation,publicandprivatecensureandlossofoperatinglicensesorpermitsandmaydamagetheCompany'sreputation.TheoccurrenceofanyoftheseeventscouldhaveanadverseeffectontheCompany'sbusiness,financialconditionandresultsofoperations.

RisksRelatedtotheMiningIndustry

Mining is inherently dangerous and is subject to conditions or events beyond the Company's control, which could have a material adverse effect on theCompany's business.

Hazards suchas fire, explosion, floods, structural collapses, industrial accidents, unusual or unexpected geological conditions, groundcontrolproblems,poweroutages,inclementweather,cave-insandmechanicalequipmentfailureareinherentrisksintheCompany'sminingoperations.Theseandotherhazardsmaycause injuries or death to employees, contractors or other persons at the Company's mineral properties, severe damage to and destruction of the Company'sproperty,plantandequipmentandmineralproperties,andcontaminationof,ordamageto,theenvironment,andmayresultinthesuspensionoftheCompany'sexplorationanddevelopmentactivitiesandanyfutureproductionactivities.SafetymeasuresimplementedbytheCompanymaynotbesuccessfulinpreventingormitigatingfutureaccidentsandtheCompanymaynotbeabletoobtaininsurancetocovertheserisksateconomicallyfeasiblepremiumsoratall.InsuranceagainstcertainenvironmentalrisksisnotgenerallyavailabletotheCompanyortoothercompanieswithintheminingindustry.

Inaddition, fromtimetotimetheCompanymaybesubject to governmental investigations andclaimsandlitigationfiledonbehalf of personswhoareharmedwhileat its properties orotherwiseinconnectionwiththeCompany'soperations. Totheextent that theCompanyis subject topersonal injuryorotherclaimsorlawsuitsinthefuture,itmaynotbepossibletopredicttheultimateoutcomeoftheseclaimsandlawsuitsduetothenatureofpersonalinjurylitigation.Similarly, if the Company is subject to governmental investigations or proceedings, the Company may incur significant penalties and fines, and enforcementactions against it could result in the cessation of certain of the Company's mining operations. During the period of February and March 2013, operationsatProject1haltedforapproximatelyonemonthduetoanoticeunderSection54oftheMineHealthandSafetyAct,No.29of2006issuedinrelationtoasurfaceworkerfatalitythatoccurredonsite.Since

30

March 2013, Maseve has received several notices under Section 54 that have resulted in short-term halts to operations. If claims, lawsuits, governmentalinvestigationsorproceedings,includingSection54notices,areresolvedagainsttheCompany,theCompany'sfinancialperformance,financialpositionandresultsofoperationscouldbemateriallyadverselyaffected.

The Company's prospecting and mining rights are subject to title risks.

TheCompany'sprospectingandminingrightsmaybesubject topriorunregisteredagreements, transfers, claimsandtitle maybe affectedbyundetecteddefects.AsuccessfulchallengetothepreciseareaandlocationoftheseclaimscouldresultintheCompanybeingunabletooperateonitspropertiesaspermittedorbeingunabletoenforceitsrightswithrespecttoitsproperties.ThiscouldresultintheCompanynotbeingcompensatedforitspriorexpendituresrelatingtotheproperty. Title insurance is generally not available for mineral properties and the Company's ability to ensure that it has obtained secure claims to individualmineralpropertiesorminingconcessionsmaybeseverelyconstrained.TheseorotherdefectscouldadverselyaffecttheCompany'stitletoitspropertiesordelayorincreasethecostofthedevelopmentofsuchprospectingandminingrights.

The Company is subject to significant governmental regulation.

TheCompany'soperationsandexplorationanddevelopmentactivitiesinSouthAfricaandCanadaaresubjecttoextensivefederal,state,provincial,territorialandlocallawsandregulationgoverningvariousmatters,including:

• environmentalprotection;

• managementanduseofhazardousandtoxicsubstancesandexplosives;

• managementoftailingsandotherwastegeneratedbytheCompany'soperations;

• managementofnaturalresources;

• exploration,developmentofmines,productionandpost-closurereclamation;

• exportsand,inSouthAfrica,potentiallocalbeneficiationquotas;

• pricecontrols;

• taxation;

• regulationsconcerningbusinessdealingswithlocalcommunities;

• labourstandards,BEElawsandregulationsandoccupationalhealthandsafety,includingminesafety;and

• historicandculturalpreservation.

Failuretocomplywithapplicablelawsandregulationsmayresult incivil orcriminal finesoradministrativepenaltiesorenforcementactions, includingordersissuedbyregulatoryorjudicialauthoritiesenjoiningorcurtailingoperations,requiringcorrectivemeasures,installationofadditionalequipment,remedialactions or recovery of costs if the authorities attend to remediation of any environmental pollution or degradation, any of which could result in the Companyincurring significant expenditures. Environmental non-profit organizations have become particularly vigilant in South Africa and focus on the mining sector.Severalsuchorganizationshaverecentlyinstitutedactionsagainstminingcompanies.TheCompanymayalsoberequiredtocompensateprivatepartiessufferinglossordamagebyreasonofabreachofsuchlaws,regulationsorpermittingrequirements.Itisalsopossiblethatfuturelawsandregulations,oramorestringentenforcementofcurrentlawsandregulationsbygovernmentalauthorities,couldcauseadditionalexpense,capitalexpenditures,restrictionsonorsuspensionsoftheCompany'soperationsanddelaysinthedevelopmentoftheCompany'sproperties.

31

The Company may face equipment shortages, access restrictions and lack of infrastructure.

Naturalresourceexploration,developmentandminingactivitiesaredependentontheavailabilityofmining,drillingandrelatedequipmentintheparticularareaswheresuchactivitiesareconducted.AlimitedsupplyofsuchequipmentoraccessrestrictionsmayaffecttheavailabilityofsuchequipmenttotheCompanyandmaydelayexploration, developmentorextractionactivities. Certainequipmentmaynotbeimmediatelyavailable, ormayrequirelongleadtimeorders. Adelayinobtainingnecessaryequipmentformineralexploration,includingdrillrigs,couldhaveamaterialadverseeffectontheCompany'soperationsandfinancialresults.

Mining,processing, developmentandexplorationactivities alsodepend,toonedegreeoranother, ontheavailability ofadequateinfrastructure. Reliableroads,bridges,powersources,fuelandwatersupplyandtheavailabilityofskilledlabourandotherinfrastructureareimportantdeterminantsthataffectcapitalandoperatingcosts.AttheWaterbergProject,additionalinfrastructurewillberequiredpriortocommencementofmining.AtProject1,theCompany'smostadvancedproject,constructionissubstantiallycompleteandproductionramp-upisunderway.Theestablishmentandmaintenanceofinfrastructure,andservicesaresubjecttoanumberofrisks, includingrisksrelatedtotheavailability ofequipmentandmaterials, inflation, cost overrunsanddelays,politicaloppositionandrelianceuponthirdparties,manyofwhichareoutsidetheCompany'scontrol.ThelackofavailabilityonacceptabletermsorthedelayintheavailabilityofanyoneormoreoftheseitemscouldpreventordelaydevelopmentorongoingoperationoftheCompany'sprojects.

Explorationofmineralpropertiesislessintrusive,andgenerallyrequiresfewersurfaceandaccessrights,thanpropertiesdevelopedformining.TheCompanyhasnotsecuredanysurfacerightsattheWaterbergProjectotherthanthoseaccessrightslegislatedbytheMPRDA.IfadecisionismadetodeveloptheWaterbergProject, or other projects inwhichtheCompanyhasyet to secureadequate surface rights, the Companywill needto secure suchrights. Noassurances canbeprovidedthattheCompanywillbeabletosecurerequiredsurfacerightsonfavorableterms,oratall.AnyfailurebytheCompanytosecuresurfacerightscouldpreventordelaydevelopmentoftheCompany'sprojects.

The Company's operations are subject to environmental laws and regulations that may increase the Company's costs of doing business and restrictits operations.

Environmentallegislationonaglobalbasisisevolvinginamannerthatwillensurestricterstandardsandenforcement,increasedfinesandpenaltiesfornon-compliance,morestringentenvironmentalassessmentofproposeddevelopmentandahigherlevelofresponsibilityandpotentialliabilityforcompaniesandtheirofficers,directors,employeesand,potentially,shareholders.CompliancewithenvironmentallawsandregulationsmayrequiresignificantcapitaloutlaysonbehalfoftheCompanyandmaycausematerialchangesordelaysintheCompany'sintendedactivities.TherecanbenoassurancethatfuturechangestoenvironmentallegislationinCanadaorSouthAfricawillnotadverselyaffecttheCompany'soperations.EnvironmentalhazardsmayexistontheCompany'spropertieswhichareunknownat presentandwhichhavebeencausedbypreviousorexistingownersoroperators forwhichtheCompanycouldbeheld liable.Furthermore,futurecompliance with environmental reclamation, closure and other requirements may involve significant costs and other liabilities. In particular, the Company'soperations and exploration activities are subject to Canadian and South African national and provincial laws and regulations governing protection of theenvironment. Suchlawsare continually changingand, ingeneral, are becomingmoreonerous. See"SouthAfricanRegulatoryFramework—Environment" intheAIF.

Amendments tocurrentlaws,regulationsandpermitsgoverningoperationsandactivitiesofminingcompanies,ormorestringentimplementationthereof,couldhaveamaterial adverse impact ontheCompanyandcauseincreases incapital expenditures or productioncosts or a reductioninlevels of productionatproducingpropertiesorrequireabandonmentordelaysindevelopmentofnewminingproperties.

EnvironmentalhazardsmayexistontheCompany'spropertiesthatareunknownatthepresenttime,andthatmayhavebeencausedbypreviousownersoroperators or that mayhaveoccurrednaturally.Thesehazards, as well as anypollutioncausedbythe Company's miningactivities, maygiverise to significantfinancialobligationsinthefutureandsuchobligationscouldhaveamaterialadverseeffectontheCompany'sfinancialperformance.

32

The mineral exploration industry is extremely competitive.

Theresourceindustryisintenselycompetitiveinallofitsphases.MuchoftheCompany'scompetitionisfromlarger,establishedminingcompanieswithgreaterliquidity,greateraccesstocreditandotherfinancialresources,andthatmayhavenewerormoreefficientequipment,lowercoststructures,moreeffectiveriskmanagementpoliciesandproceduresand/orgreaterabilitythantheCompanytowithstandlosses.TheCompany'scompetitorsmaybeabletorespondmorequicklytonewlawsorregulationsoremergingtechnologies,ordevotegreaterresourcestotheexpansionoftheiroperations,thantheCompanycan.Inaddition,currentandpotentialcompetitorsmaymakestrategicacquisitionsorestablishcooperativerelationshipsamongthemselvesorwiththirdparties.CompetitioncouldadverselyaffecttheCompany'sabilitytoacquiresuitablenewproducingpropertiesorprospectsforexplorationinthefuture.CompetitioncouldalsoaffecttheCompany's ability toraise financingtofundtheexplorationanddevelopment of its properties or tohire qualifiedpersonnel. TheCompanymaynot beable tocompetesuccessfullyagainstcurrentandfuturecompetitors, andanyfailuretodosocouldhaveamaterial adverseeffectontheCompany'sbusiness,financialconditionorresultsofoperations.

The Company requires various permits in order to conduct its current and anticipated future operations, and delays or a failure to obtain such permits, or afailure to comply with the terms of any such permits that the Company has obtained, could have a material adverse impact on the Company.

TheCompany'scurrentandanticipatedfutureoperations,includingfurtherexploration,developmentactivitiesandcommencementofcommercialproductionon the Company's properties, require permits from various national, provincial, territorial and local governmental authorities in the countries in which theCompany'spropertiesarelocated.Compliancewiththeapplicableenvironmentallegislation,permitsandlanduseconsentsisrequiredonanongoingbasis,andtherequirements under such legislation, permits and consents are evolving rapidly and imposing additional requirements for Project 1. The Waterberg ProjectprospectingrightsissuedbytheDMRarealsosubjecttolanduseconsentsandcompliancewithapplicablelegislationonanongoingbasis.

Inaddition,thedurationandsuccessofeffortstoobtain,amendandrenewpermitsarecontingentuponmanyvariablesnotwithintheCompany'scontrol.Shortageofqualifiedandexperiencedpersonnelinthevariouslevelsofgovernmentcouldresultindelaysorinefficiencies.BacklogwithinthepermittingagenciescouldalsoaffectthepermittingtimelineoftheCompany'svariousprojects.Otherfactorsthatcouldaffectthepermittingtimelineincludethenumberofotherlargescaleprojectscurrentlyinamoreadvancedstageofdevelopment,whichcouldslowdownthereviewprocess,andsignificantpublicresponseregardingaspecificproject.Aswell,itcanbedifficulttoassesswhatspecificpermittingrequirementswillultimatelyapplytoalloftheCompany'sprojects.

RisksofDoingBusinessinSouthAfrica

Labour disruptions and increased labour costs could have an adverse effect on the Company's results of operations and financial condition.

AlthoughtheCompany'semployeesarenotunionizedatthistime,contractorsoperatingontheProject1minesiteinSouthAfricahaveemployeesthatareunionized.Asaresult,tradeunionscouldhaveasignificantimpactontheCompany'slabourrelations,aswellasonsocialandpoliticalreforms.ThereisariskthatstrikesorothertypesofconflictwithunionsoremployeesmayoccuratanyoftheCompany'soperations,particularlywherethelabourforceisunionized.Labourdisruptionsmaybeusedtoadvocatelabour,politicalorsocialgoalsinthefuture.Forexample,labourdisruptionsmayoccurinsympathywithstrikesorlabourunrestinothersectorsoftheeconomy.SouthAfricanemploymentlawsetsoutminimumtermsandconditionsofemploymentforemployees,whichformthe benchmark for all employment contracts. Disruptions in the Company's business due to strikes or further developments in South African labour laws mayincreasetheCompany'scostsoralteritsrelationshipwithitsemployeesandtradeunions,whichmayhaveanadverseeffectontheCompany'sfinancialconditionandoperations.SouthAfricahasrecentlyexperiencedwidespreadillegalstrikesandviolence.

33

Interruptions, shortages or cuts in the supply of electricity or water could lead to disruptions in production and a reduction in the Company's operatingcapacity.

TheCompanyprocuresalloftheelectricitynecessaryforitsoperationsfromESKOMHoldingsLimited("ESKOM"),SouthAfrica'sstateownedelectricityutility,andnosignificantalternativesourcesofsupplyareavailabletoit.ESKOMhassufferedfromprolongedunderinvestmentinnewgeneratingcapacitywhich,combinedwithincreaseddemand,hasledtoelectricityshortagesinrecentyears. Since2008,ESKOMhasinvestedheavilyinnewbaseloadpowergenerationcapacity, but its principal project, a power station known as Medupi, has been subject to delays, with the last unit scheduled for commissioning in 2019. Inaddition, ESKOMis heavilydependent on coal to fuel its electricity plants. Accordingly, if coal mining companies experience labour unrest or disruptions toproduction(whichhaveoccurredhistoricallyinSouthAfrica, includingacoalstrikebyapproximately30,000NationalUnionofMineworkersmemberswhichlastedforapproximatelyoneweekinOctober2015),orifheavyrains,particularlyduringthesummermonthsinSouthAfrica,adverselyimpactcoalproductionorcoalsupplies,ESKOMmayhavedifficultysupplyingsufficientelectricitysupplytotheCompany.

The Company procures water from Magalies Water, the statutory, state-owned water authority in the Company's area of operations. The Company isdependentontheavailabilityofwaterinitsareasofoperationsandinparticularontheabilityofMagaliesWatertoprovideitwithsufficientallocationofwatertoenableittoconductitsbusiness.ShiftingrainfallpatternsandincreasingdemandsontheexistingwatersupplyhavecausedwatershortagesintheCompany'sareasofoperations.

Ifelectricityorwatersuppliesareinsufficientorunreliable,theCompanymaybeunabletooperateasanticipated,whichmaydisruptproductionandreducerevenues.

Any adverse decision in respect of the Company's mineral rights and projects in South Africa under the MPRDA could materially affect the Company'sprojects in South Africa.

With the enactment of the MPRDA, the South African state became the sole regulator of all prospecting and mining operations in South Africa.Allprospectingandmininglicensesandclaimsgrantedintermsofanypriorlegislationbecameknownasthe"oldorderrights".AllprospectingandminingrightsgrantedintermsoftheMPRDAare"neworderrights".ThetreatmentofnewapplicationsandpendingapplicationsisuncertainandanyadversedecisionbytherelevantregulatoryauthoritiesundertheMPRDAmayadverselyaffecttitletotheCompany'smineralrightsinSouthAfrica,whichcouldstop,materiallydelayorrestricttheCompanyfromproceedingwithitsexplorationanddevelopmentactivitiesoranyfutureminingoperations.

AwiderangeoffactorsandprinciplesmustbetakenintoaccountbytheSouthAfricanMinisterofMineralResources(the"Minister")whenconsideringapplications for new order rights. These factors include the applicant's access to financial resources and appropriate technical ability to conduct the proposedprospecting or mining operations, the environmental impact of the operation, whether the applicant holds an environmental authorization and, in the case ofprospectingrights,considerationsrelatingtofaircompetition.OtherfactorsincludeconsiderationsrelevanttopromotingemploymentandthesocialandeconomicwelfareofallSouthAfricansandshowingcompliancewiththeprovisionsregardingtheempowermentofHDSAsintheminingindustry.AlloftheCompany'soldorder prospecting rights in respect of Project 1 and Project 3 were first converted into new order prospecting rights and subsequently, in April 2012, weresupersededbytheMiningRight.AlloftheCompany'scurrentprospectingrightsareneworderrights.

TheassessmentofsomeoftheprovisionsoftheMPRDAortheMiningChartermaybesubjectiveandisdependentupontheviewsoftheDMRastowhethertheCompanyisincompliance.Maseve'ssocialandlabourplan,forinstance,containsbothquantitativeandqualitativegoals,targetsandcommitmentsrelatingtotheCompany'sobligationstoitsemployeesandcommunityresidents,theachievementofsomeofwhicharenotexclusivelywithintheCompany'scontrol.Certainof thesocioeconomicprojects identifiedinthesocial andlabour planhaveprovedinappropriate or unviablegivenprevailingconditionsandlevels of trainingwithinthelocalcommunitiesinthevicinityofProject1.SuchprojectshavebeenidentifiedandtheCompanyhasconsultedwiththeDMRregardingacourseofaction.AnapplicationisbeingmadetotheDMRtoamendthesocialandlabourplantotargetmoreappropriateandviableprojects.IfMaseveisfoundtobeinnon-compliancewithits

34

socialandlabourplan,theMinistermayinstitutetheSection47processdiscussedbelow.Atthistime,theCompanyhasnotreceivedanoticeofnon-compliancefromtheDMR.

TheMinisterhasthediscretiontocancelorsuspendminingrightsunderSection47(1)oftheMPRDAasaconsequenceoftheCompany'snon-compliancewiththeMPRDA,environmentallegislation,theMiningCharter,thetermsofitsMiningRightandprospectingrightsorifminingisnotprogressingoptimally.TheSection47processinvolvesmultiple,successivestageswhichincludegrantingtheCompanyareasonableopportunitytoshowwhyitsrightsshouldnotbecancelledorsuspended.PursuanttothetermsoftheprovisionsofSection6(2)(e)(iii)ofthePromotionofAdministrativeJusticeAct,No.3of2000("PAJA")readwithSection6oftheMPRDA,theMinistercandirecttheCompanytotakeremedialmeasures.Ifsuchremedialmeasuresarenottaken,theMinistermustagain givethe Companya reasonable opportunity to makerepresentationsas to whysuchremedial measures were not taken. TheMinister must thenproperlyconsidertheCompany'sfurtherrepresentations(whichconsiderationsmustalsocomplywithPAJA)andonlythenistheMinisterentitledtocancelorsuspendamining right. Any such cancellation or suspension will be subject to judicial review if it is not in compliance with the MPRDAor PAJA, or it is not lawful,reasonableandprocedurallyfairunderSection33(1)oftheSouthAfricanConstitution.

FailurebytheCompanytomeetitsobligationsinrelationtoitsMiningRightorprospectingrightsortheMiningChartercouldleadtothesuspensionorcancellationofsuchrights andthesuspensionoftheCompany's other rights, whichwouldhaveamaterial adverseeffect ontheCompany's business, financialconditionandresultsofoperations.

The failure to maintain or increase equity participation by HDSAs in the Company's prospecting and mining operations could adversely affect the Company'sability to maintain its prospecting and mining rights.

TheCompanyissubjecttoanumberofSouthAfricanstatutesaimedatpromotingtheacceleratedintegrationofHDSAs,includingtheMPRDA,theBEEActand the Mining Charter. To ensure that socio-economic strategies are implemented, the MPRDAprovides for the Mining Codes which specify empowermenttargetsconsistentwiththeobjectivesoftheMiningCharter.TheMiningCharterScorecardrequirestheminingindustry'scommitmentofapplicantsinrespectofownership,management,employmentequity,humanresourcedevelopment,procurementandbeneficiation.ForownershipbyBEEgroupsinminingenterprises,theMiningCharterScorecardsetsa26%targetbyDecember31,2014.

The South African government awards procurement contracts, quotas, licenses, permits and prospecting and mining rights based on numerous factors,includingthedegreeofHDSAownership.TheMPRDAandMiningCharter contain provisions relating to the economic empowerment of HDSAs. Oneof therequirementswhichmustbemetbeforetheDMRwillissueaprospectingrightorminingrightisthatanapplicantmustfacilitateequityparticipationbyHDSAsintheprospectingandminingoperationswhichresultfromthegrantingoftherelevantrights.Asamatterofstatedpolicy,theDMRrequiresaminimumof26%HDSAownershipforthegrantofapplicationsforminingrights.TheMiningCharterrequiredaminimumof26%HDSAownershipbyDecember31,2014.

TheCompanyhassoughttosatisfytheforegoingrequirementsbypartnering,attheoperatingcompanylevel,withcompaniesdemonstrating26%HDSAownership.TheCompanyhaspartneredwithAfricaWidewithrespecttoMaseve,whichownstheMiningRight,andhaspartneredwithMnombowithrespecttotheWaterbergJVProjectandfortheprospectingrightsandapplicationsovertheWaterbergExtensionProject.

The Company believes that Africa Wide was majority owned by HDSAsin 2002, when it first partnered with the Company. However, the Company'scontractualarrangementswithAfricaWidedonotcurrentlyrequireAfricaWidetomaintainanyminimumlevelofHDSAownershiportocertifythelevelofsuchownershiptotheCompany.In2007,Wesizwe(whichwasthenmajorityownedbyHDSAs)acquired100%ofthesharesofAfricaWide.Onanapplicationofthemodifiedflow-throughprinciples,AfricaWideremainedanHDSAcompany.OnDecember8,2008,theCompanyenteredintocertainagreementstoconsolidateandrationalizetheownershipoftheWesternBushveldJointVenture(the"ConsolidationTransaction").UnderthetermsoftheConsolidationTransaction,theCompanytransferredits18.5%interestinProject2ofwhatwasformerlytheWesternBushveldJointVenturetoWesizwe,thereforeprovidingattributableunitsofproductionandfurtherenhancingtheownershipofminingassetsbyHDSAcompanies.Underthesametransaction,Rustenburg

35

PlatinumMines Limited, a wholly owned subsidiary of Anglo American Platinum Limited ("Amplats ") acquired a then approximately 26.9% interest inWesizwe.In2011,JinchuanGroupLimitedofChinaandChinaAfricaDevelopmentFund,withtheapprovaloftheDMRandnotwithstandingthatthetransactionresulted in Wesizwe not being majority owned by HDSAs, acquired a then approximately 45% interest in Wesizwe. Although Amplats' interest is held forpreferential disposition to a qualified BEEpurchaser, HDSAsdonot currently owna majority of the Wesizweequity. In April 2012, Maseve wasgranted theMiningRightbytheDMRwhich,bystatedpolicy,isanacknowledgementofMaseve'sBEEcompliancestatusasbeingacceptabletotheDMR.Therecanbenoassurance when, or if, the transfer of Amplats' interest in Wesizwe to a qualified BEE purchaser will occur. Also, there can be no assurance that the HDSAownershipmaynot bere-assessedorthat thecriteria for HDSAownershipmaynot beinterpreteddifferently inthefuture. If onlythedirect shareholdingsofAfricaWideanditsparentareconsidered,andotherfactorswhichwereconsideredbytheDMRatthetimeofgrantaresetaside,Maseve,solelyonflow-throughprinciples,wouldhavebeen,andremains,belowthe26%HDSAownershiplevel.

Further, onAugust20,2014,anawardinthebindingarbitrationwithrespecttothecalculationofdilutiontotheownershipofAfricaWideinMasevewascompletedanddeliveredtotheCompany.ThearbitratorruledinfavoroftheCompanyonallmattersincontention.ThefavourableawardreducedAfricaWide'sshareholding in Maseve to 21.2766%. As a result of Africa Wide's decision on March 3, 2014 not to fund its US$21.52 million share of a second cash calldelivered in February 2014, Africa Wide's ownership in Maseve was further reduced to approximately 17.1% based on the dilution formula in the MaseveShareholdersAgreement,asconfirmedbythearbitration.UntiltheCompanysellsthedilutedpercentageinterestinMasevepreviouslyheldbyAfricaWidetoanalternative,qualifiedBEEcompany,Masevewillhavelessthan26%HDSAownership.

TheCompanyissatisfiedthatMnomboismajority-ownedbyHDSAs.ThecontractualarrangementsbetweenMnombo,theCompanyandtheHDSAsrequiretheHDSAstomaintainaminimumlevelofHDSAownershipinMnomboofmorethan50%.However,ifatanytimeMnombobecomesacompanythatisnotmajorityownedbyHDSAs,theownershipstructureoftheWaterbergJVProjectandtheprospectingrightsandapplicationsovertheWaterbergExtensionProjectmaybedeemednottosatisfyHDSArequirements.

AstheCompanyhashistoricallypartneredwithBEEgroupsorcompaniesthatwereHDSA-controlledatthetimeonallofitsmaterialprojectsinSouthAfricaatalevelof26%atanoperatingorprojectlevelitreliesuponthecontinuingconsequencesofsuchtransactions(theso-called"onceempowered,alwaysempowered"principle)forownershipcompliancewiththeMiningCharterinregardtoMaseve.

Thereiscurrentlynolegalorregulatorycertaintyoverwhethertheprincipleof"onceempowered,alwaysempowered"(i.e., whetheracompanythathasreacheditsempowermenttargetsundertheMiningCharterwillremainempoweredifitsHDSAparticipationsubsequentlyfallsbelowrequiredthresholds)wouldapply.TheDMRandtheChamberofMinesofSouthAfrica(actingonbehalfoftheminingindustry)arecurrentlyengagedinlitigationwhichmayresultinsomeclarity onthe "onceempowered, always empowered" principle, but this is likely to bea lengthyprocess andnoassurancecanbegivenregardingtheultimateoutcomeofsuchlitigationoritsimpactontheCompany.Inaddition,anapplicationhasbeenfiledintheHighCourtofSouthAfricatohavetheMiningCharteritselfsetaside.

OnApril15,2016,theReviewedBroadBasedBlack-EconomicEmpowermentCharterfortheSouthAfricanMiningandMineralsIndustry(the"NewDraftCharter")waspublishedforcomment.Interestedpartiesweregivenaperiodof30daysfromdateofpublicationtomakesubmissionstotheDMR.TheDMRcontinuestoengagewiththeChamberofMinesandwiththeindustryinregardtotheNewDraftCharter.TheNewDraftCharterrequiresminingcompaniestomaintain26%BEEownershipthroughoutthelifeofthemine.Ifadoptedinitscurrentform,theNewDraftCharterwillrequireMasevetoconcludefurtherBEEtransactionstoincreaseitsBEEownershiplevelto26%oncemore.However,theNewDraftCharterenvisagesthatminingcompanieswillbegivenaperiodofthreeyearswithinwhichtoachievecompliance.

SubjecttoconditionscontainedintheCompany'sprospectingandminingrights,theCompanymayberequiredtoobtainapprovalfromtheDMRpriortoundergoinganychangeinitsempowermentstatusundertheMiningCharter.Inaddition,iftheCompanyoritsBEEpartnersarefoundtobeinnon-compliancewiththerequirementsoftheMiningCharterandotherBEEregulations,includingfailuretoretaintherequisitelevelof

36

HDSAownership,theCompanymayfacepossiblesuspensionorcancellationofitsminingrightsunderaprocessgovernedbySection47oftheMPRDA.

Inaddition,therehavebeenanumberofproposalsmadeatgovernmentallevelinSouthAfricaregardingamendmentsandclarificationstothemethodologyfordeterminingHDSAownershipandcontrolofminingbusinesses,includingtheMineralandPetroleumResourcesDevelopmentAmendmentBill,2013,whichcreate greater uncertainty in measuring the Company's progress towards, and compliance with, its commitments under the Mining Charter and other BEEregulations.Ifimplemented,anyoftheseproposalscouldresultin,amongotherthings,strictercriteriaforqualificationasanHDSAinvestor.

TheCompanyisobligedtoreportonitscompliancewiththeMiningCharter,includingitspercentageofHDSAshareholding,totheDMRonanannualbasis.TheCompany's2015reportwassubmittedonMay3,2016.Althoughnofeedbackhasbeenreceivedinregardtoeitherthe2014orthe2015filing,theCompanyreceived a request fromthe DMRsubsequent to the end of its third fiscal quarter in 2016 to provide an update as to its plan to achieve a 26%HDSAequityownership percentage for Maseve. The Company met with the DMR in early June 2016 and the DMR requested a further update by August 7, 2016, whilereminding the Company of the risk of potential action under Sections 47 and 93 of the MPRDAif the Company were not to increase the HDSA ownershippercentage. TheCompanyhas madeseveral attempts to schedule a meeting with the DMRto further discuss this issue. Todate, while the Companyhas beenadvisedbytheDMRthatthematterwillbediscussedatalaterdate,nosuchmeetinghastakenplaceandtheDMRhasnotissuedanoticeofnon-compliancewiththeMPRDA.

If theCompanyisrequiredtoincreasethepercentageofHDSAownershipinanyofitsoperatingcompaniesorprojects,theCompany'sinterestsmaybediluted.Inaddition,itispossiblethatanysuchtransactionsorplans,ortheinvestmentbyanewBEEpartnerinMasevetoattaina26%interestbyqualifiedBEEcompanies,mayneedtobeexecutedatadiscounttothepropereconomicvalueoftheCompany'soperatingassetsoritmayalsoprovenecessaryfortheCompanytoprovidevendorfinancingorothersupportinrespectofsomeoralloftheconsideration,whichmaybeonnon-commercialterms.UnderthetermsoftheMaseveShareholdersAgreement,ifMaseveisinstructedbytheDMRtoincreaseitsHDSAownership,anyagreedcostsordilutionofinterestsshallbeborneequallybytheCompanyandAfricaWide,notwithstandingthatAfricaWideholds17.1%oftheequityafterthesecondmissedcashcall.

Currently,theSouthAfricanDepartmentofTradeandIndustryisresponsibleforleadinggovernmentactionontheimplementationofBEEinitiativesundertheauspicesoftheBEEActandthegenericBEECodesofGoodPractice(the"GenericBEECodes"),whilecertainindustrieshavetheirowntransformationchartersadministeredbytherelevantgovernmentdepartment(inthiscase,theDMR).TheBroadBasedBlackEconomicEmpowermentAmendmentAct,No.16of2013(the"BEEAmendmentAct")cameintooperationonOctober24,2014.Amongothermatters,theBEEAmendmentActamendstheBEEActtomaketheBEEActtheoverridinglegislationinSouthAfricawithregardtoBEErequirements(the"TrumpingProvision")andwillrequireallgovernmentalbodiestoapplytheGenericBEECodesorotherrelevantcodeofgoodpracticewhenprocuringgoodsandservicesorissuinglicensesorotherauthorizationsunderanyotherlaws,andpenalizefrontingormisrepresentationofBEEinformation.TheTrumpingProvisioncameintoeffect onOctober24,2015.However, onOctober30,2015,theSouthAfricanMinisterofTradeandIndustryexemptedtheDMRfromapplyingtheTrumpingProvisionforaperiodoftwelvemonthsonthebasisthatthealignmentoftheMiningCharterwiththeBEEActandtheGenericBEECodeswasanongoingprocess.TheNewDraftCharterpurportstoaligntheMiningCharterwiththeGenericBEECodes.ItisunclearwhethertheNewDraftCharterwillbefinalizedbeforetheexemptionperiodfromapplicationoftheTrumpingProvisionexpiresonOctober31,2016.Thisexemptionperiodmaybefurtherextendedgiventhatsuchalignmentisstillongoing.IftheNewDraftCharterisnotfinalizedbeforetheexemptionperiodexpiresandafurtherexemptionperiodisnotgranted,theGenericBEECodeswillapply.Generallyspeaking,theamendedGenericBEECodeswillmakeBEE-compliancemoreoneroustoachieve.TheGenericBEECodesaresubstantiallydifferentfromtheMiningCharterand,iftheyweretoapplytotheminingindustry,wouldplacetheindustryatadisadvantage.See"SouthAfricanRegulatoryFramework—BlackEconomicEmpowermentintheSouthAfricanMiningIndustry"intheAIF.

37

TheGenericBEECodeswillrequireMnombotobe51%heldandcontrolledbyHDSAstoqualifyitasa"black-controlledcompany"andhenceaqualifiedBEEentity.Mnomboispresently50.1%ownedandcontrolledbyHDSAs.

IftheCompanyisunabletoachieveormaintainitsempoweredstatusundertheMiningCharterorcomplywithanyotherBEEregulationsorpolicies,itmaynotbeabletomaintainitsexistingprospectingandminingrightsand/oracquireanynewrightsandthereforewouldbeobligedtosuspendordisposeofsomeorallofitsoperationsinSouthAfrica,whichwouldlikelyhaveamaterialadverseeffectontheCompany'sbusiness,financialconditionandresultsofoperations.

Socio-economic instability in South Africa or regionally, including the risk of resource nationalism, may have an adverse effect on the Company's operationsand profits.

TheCompanyhasownershipinterestsinsignificantprojectsinSouthAfrica.Asaresult,itissubjecttopoliticalandeconomicrisksrelatingtoSouthAfrica,which could affect an investment in the Company. South Africa was transformed into a democracy in 1994. The government policies aimed at redressing thedisadvantagessufferedbythemajorityofcitizensunderpreviousgovernmentsmayimpacttheCompany'sSouthAfricanbusiness.Inadditiontopoliticalissues,SouthAfricafacesmanychallengesinovercomingsubstantialdifferencesinlevelsofeconomicdevelopmentamongitspeople.LargepartsoftheSouthAfricanpopulationdonothaveaccesstoadequateeducation,healthcare,housingandotherservices,includingwaterandelectricity.

Thisissuewasparticularlyacuteinlate2012whenwildcatstrikesandviolenceoccurrednearProject1andgenerallyatotherplatinummines.Therecanbenoassurance thatwild cat strikes andviolence will not occur at the Company's properties in the future. Wild cat strikes andviolence at Project 1 mayhave amaterial negativeimpactontheproject andits start-upmineoperations. TheCompanyalsofacesanumberofrisksfromdeliberate, maliciousorcriminal actsrelatingtotheseinequalities,includingtheft,fraud,briberyandcorruption.

The Company is also subject to the risk of resource nationalism, which encompasses a range of measures, such as expropriation or taxation, wherebygovernmentsincreasetheireconomicinterestinnaturalresources, withorwithoutcompensation.Althoughwholesalenationalizationwasrejectedbytherulingparty,theAfricanNationalCongress(the"ANC"),leadingintothe2014nationalelections,aresolutionadoptedbytheANConnationalizationcallsforstateinterventionintheeconomy,including"state ownership". Awiderangeofstakeholders haveproposedwaysinwhichtheStatecouldextract greater economicvaluefromtheSouthAfricanminingindustry.Acallforresourcenationalizationhasalsobeenmadebyanewpoliticalparty,theEconomicFreedomFighters,undertheleadershipofJuliusMalema.

TheCompanycannotpredictthefuturepolitical,socialandeconomicdirectionofSouthAfricaorthemannerinwhichgovernmentwillattempttoaddressthecountry'sinequalities.ActionstakenbytheSouthAfricangovernment,orbyitspeoplewithoutthesanctionoflaw,couldhaveamaterialadverseeffectontheCompany'sbusiness.Furthermore,therehasbeenregional,politicalandeconomicinstabilityincountriesnorthofSouthAfrica,whichmayaffectSouthAfrica.SuchfactorsmayhaveanegativeimpactontheCompany'sabilitytoown,operateandmanageitsSouthAfricanminingprojects.

Changes in South African State royalties where many of the Company's mineral reserves are located could have an adverse effect on the Company's results ofoperations and its financial condition.

TheMineralandPetroleumResourcesRoyaltyAct,No.28of2008(the"RoyaltyAct")effectivelycameintooperationonMay1,2009.TheRoyaltyActestablishesavariableroyaltyrateregime,inwhichtheprevailingroyaltyratefortheyearofassessmentisassessedagainstthegrosssalesoftheextractorduringtheyear.Theroyaltyrateiscalculatedbasedontheprofitabilityofthemine(earningsbeforeinterestandtaxes)andvariesdependingonwhetherthemineralistransferredinrefinedorunrefinedform.Formineralresourcestransferredinunrefinedform,theminimumroyaltyrateis0.5%ofgrosssalesandthemaximumroyalty rate is 7%of gross sales. For mineral resources transferred in refined form, the maximumroyalty rate is 5%of gross sales. The royalty will be a taxdeductibleexpense.Theroyaltybecomespayablewhenthemineralresourceis"transferred,"whichreferstothedisposalofamineralresource,theexportofamineralresourceortheconsumption,theft,destructionorlossofamineralresource.TheRoyaltyActallowstheholderofaminingrighttoenterintoanagreementwiththetaxauthoritiestofixthepercentageroyaltythatwillbepayablein

38

respectofallminingoperationscarriedoutinrespectofthatresourceforaslongastheextractorholdstheright.Theholderofaminingrightmaywithdrawfromsuchagreementatanytime.

ThefeasibilitystudiescoveringtheCompany'sSouthAfricanprojectsmadecertainassumptionsrelatedtotheexpectedroyaltyratesundertheRoyaltyAct.IfandwhentheCompanybeginsearningrevenuefromitsSouthAfricanminingprojects,andiftheroyaltiesundertheRoyaltyActdifferfromthoseassumedinthefeasibilitystudies,thisnewroyaltycouldhaveamaterialandadverseimpactontheeconomicviabilityoftheCompany'sprojectsinSouthAfrica,aswellasontheCompany'sprospects,financialconditionandresultsofoperations.

Characteristics of and changes in the tax systems in South Africa could materially adversely affect the Company's business, financial condition and resultsof operations.

TheCompany'ssubsidiariespaydifferenttypesofgovernmentaltaxesinSouthAfrica,includingcorporationtax,payrolltaxes,VAT,stateroyalties,variousformsofduties,dividendwithholdingtaxandinterestwithholdingtax.ThetaxregimeinSouthAfricaissubjecttochange.

After having published a number of papers on the introduction of a carbon tax, the South African government released the draft Carbon Tax Bill inNovember2015forcommentbyinterestedparties.Greenhousegasemissionsfromthecombustionoffossilfuels,fugitiveemissionsinrespectofcommodities,fuel or technology, and greenhouse gas emissions from industrial processes and product use will be subject to a carbon tax. During the first phase ofimplementation(ending2020),itisproposedthattheemissionofgreenhousegassesbetaxedatR120pertonneofthecarbondioxideequivalentofthegreenhousegas emitted, which rate is expected to increase by 10% per annum. Emission factors will be used in order to calculate the carbon dioxide equivalent of thegreenhousegassesemitted.Variousallowanceswillbeavailablefortaxpayerstoreducetheirfinalcarbontaxliabilitybyuptoamaximumof95%.OnJune20,2016, the South African government also released the draft regulations in respect of the carbon offset allowance. Taxpayers can qualify for a carbon offsetallowanceuptoamaximumof10%.Thecarbonoffsetallowancewillnotenableataxpayertoreduceitsfinalcarbontaxliabilitybeyondthemaximumof95%stated above. Whenthe tax free thresholds are taken into account, the effective tax rate will range between R6andR48per ton of carbon dioxide equivalent.Schedule2tothedraftCarbonTaxBillliststhesectorsandindustriesinwhichtaxpayerswillbeliableforcarbontax.Miningcompanies,dependingonthenatureof their activities, will generally fall within these sectors. TheMinister of Environmental Affairs will publish a notice indicating whichactivities will render apersonliableforthecarbontax.Theagricultural,forestryandwastesectorswillinitiallybeexcluded.ThedraftCarbonTaxBillissilentonthesecondphasepost2020, but it is generally expected to result in a gradual ramp-up of the carbon tax. The rate and allowances will be reviewed for the second phase ofimplementation.Itisexpectedthatthefinallegislationwillcomeintooperationsometimein2017.

TheANCheldapolicyconferenceinJune2012atwhichthe"StateInterventionintheMineralsSector"report(the"SIMSReport")commissionedbytheANCwasdebated.TheSIMSReportincludesaproposalforasupertaxof50%ofallprofitsabovea15%returnoninvestment,whichwouldapplyinrespectofallmetalsandminerals.Ifasupertaxisimplemented,theCompanymayrealizelowerafter-taxprofitsandcashflowsfromitscurrentminingoperationsandmaydecidenottopursuecertainnewprojects,assuchataxcouldrendertheseopportunitiesuneconomic.

ItisalsopossiblethattheCompanycouldbecomesubjecttotaxationinSouthAfricathatisnotcurrentlyanticipated,whichcouldhaveamaterialadverseeffectonitsbusiness,financialconditionandresultsofoperations.

The Company's land in South Africa could be subject to land restitution claims which could impose significant costs and burdens.

TheCompany'sprivatelyheldlandcouldbesubjecttolandrestitutionclaimsundertheRestitutionofLandRightsAct,No.22of1994,asamended(the"LandClaimsAct")andtheRestitutionofLandRightsAmendmentAct,No.15of2014("RestitutionAmendmentAct"),whichtookeffectonJuly1,2014.UndertheLandClaimsActandtheRestitutionAmendmentAct,anypersonwhowasdispossessedofrightsinlandinSouthAfricaafterJune19,1913asaresultofpastraciallydiscriminatorylawsorpracticeswithoutpaymentofjustandequitable

39

compensation, and who lodges a claim on or before June 30, 2019, is granted certain remedies. A successful claimant may be granted either return of thedispossessedland(referredtoas"restoration")orequitableredress(whichincludesthegrantingofanappropriaterightinalternativestate-ownedland,paymentofcompensationor"alternativerelief").Ifrestorationisclaimed,theLandClaimsActrequiresthefeasibilityofsuchrestorationtobeconsidered.Restorationoflandmayonlybegivenincircumstanceswhereaclaimantcanusethelandproductivelywiththefeasibilityofrestorationdependentonthevalueoftheproperty.

TheSouthAfricanMinisterofRuralDevelopmentandLandReformmaynotacquireownershipoflandforrestitutionpurposeswithoutacourtorderunlessanagreementhasbeenreachedbetweentheaffectedparties.TheLandClaimsActalsoentitlestheSouthAfricanMinisterofRuralDevelopmentandLandReformtoacquireownershipoflandbywayofexpropriationeitherforclaimantswhoareentitledtorestitutionofland,or,inrespectoflandoverwhichnoclaimhasbeenlodgedbuttheacquisitionofwhichisdirectlyrelatedtooraffectedbysuchclaim,willpromoterestitutionoflandtoclaimantsoralternativerelief.ExpropriationwouldbesubjecttoprovisionsoflegislationandtheSouthAfricanConstitutionwhichprovide,ingeneral,forjustandequitablecompensation.

TheCompanyhasnotbeennotifiedofanylandclaimstodateovertheCompany'sproperties.Thereisnoguarantee,however,thatanyoftheCompany'sprivately held land rights could not become subject to acquisition by the state without the Company's agreement, or that the Company would be adequatelycompensatedforthelossofitslandrights.AnysuchclaimscouldhaveanegativeimpactontheCompany'sSouthAfricanprojectsandthereforeanadverseeffectonitsbusiness,operatingresultsandfinancialcondition.

South African foreign exchange controls may limit repatriation of profits.

TheCompanywillmostlikelyneedtorepatriatefundsfromitsforeignsubsidiariestofulfillitsbusinessplansandmakepaymentsontheProject1WorkingCapitalFacilities.SincecommencingbusinessinSouthAfrica,theCompanyhasloanedorinvestedapproximatelyCAN$782.36millionasatAugust31,2016intoPTMRSAinSouthAfrica.TheCompanyobtainedapprovalfromtheSARBinadvanceforitsinvestmentsintoSouthAfrica.TheCompanyanticipatesthatitwillloan the majority of the proceeds fromanOffering to PTMRSAwith the advance approval of the SARB. Although the Company is not aware of any laworregulationthatwouldpreventtherepatriationoffundsithasloanedorinvestedintoSouthAfricabacktotheCompanyinCanada,noassurancecanbegiventhatthe Companywill be able to repatriate fundsbackto Canadain a timelymanner or without incurringtaxpayments or other costswhendoingso, duetolegalrestrictionsortaxrequirementsatlocalsubsidiarylevelsorattheparentcompanylevel,whichcostscouldbematerial.

SouthAfrica'sexchangecontrolregulationsrestrict theexportofcapital fromSouthAfrica. AlthoughtheCompanyisnotitself subjecttoSouthAfricanexchangecontrolregulations,theseregulationsdorestricttheabilityoftheCompany'sSouthAfricansubsidiariestoraiseanddeploycapitaloutsidethecountry,toborrow money in currencies other than the Rand and to hold foreign currency. Exchange control regulations could make it difficult for the Company's SouthAfricansubsidiariesto:(a)exportcapitalfromSouthAfrica;(b)holdforeigncurrencyorincurindebtednessdenominatedinforeigncurrencieswithoutapprovalofthe relevant South African exchange control authorities; (c) acquire an interest in a foreign venture without approval of the relevant South African exchangecontrol authorities and compliance with certain investment criteria; and (d) repatriate to South Africa profits of foreign operations. While the SouthAfricangovernmenthasrelaxedexchangecontrolsinrecentyears,itisdifficulttopredictwhetherorhowitwillfurtherrelaxorabolishexchangecontrolmeasuresintheforeseeablefuture.TherecanbenoassurancethatrestrictionsonrepatriationofearningsfromSouthAfricawillnotbeimposedontheCompanyinthefuture.

Community relations may affect the Company's business.

Maintainingcommunitysupport throughapositiverelationshipwiththecommunitiesinwhichtheCompanyoperatesiscritical to continuingsuccessfulexplorationanddevelopment.Asabusinessintheminingindustry,theCompanymaycomeunderpressureinthejurisdictionsinwhichitexploresordevelops,todemonstratethatotherstakeholdersbenefitandwillcontinuetobenefitfromtheCompany'scommercialactivities.TheCompanymayfaceoppositionwithrespecttoitscurrentandfuturedevelopmentandexploration

40

projectswhichcouldmateriallyadverselyaffectitsbusiness,resultsofoperations,financialconditionandCommonShareprice.

RisksRelatingtotheOfferingsandtheSecurities

The Company has never paid dividends and does not expect to do so in the foreseeable future.

TheCompanyhasnotpaidanydividendssinceincorporationandithasnoplanstopaydividendsintheforeseeablefuture.TheCompany'sdirectorswilldetermineifandwhendividendsshouldbedeclaredandpaidinthefuturebasedontheCompany'sfinancialpositionattherelevanttime.Further,theProject1Working Capital Facilities limit the Company's ability to pay dividends, and make distributions or other payments based on share capital. In addition, theCompany's ability to declare and pay dividends may be affected by the South African government's exchange controls. See "South African RegulatoryFramework—ExchangeControl"intheAIF.

The Common Share price has been volatile in recent years.

Inrecentyears,thesecuritiesmarketsintheUnitedStatesandCanadahaveexperiencedahighlevelofpriceandvolumevolatility,andthemarketpriceofsecurities of many companies, particularly those considered exploration or development-stage mining companies, have experienced wide fluctuations in pricewhichhavenotnecessarilybeenrelatedtotheoperatingperformance,underlyingassetvaluesorprospectsofsuchcompanies.Inparticular,aftergivingeffecttotheShareConsolidation,thepersharepriceoftheCommonSharesontheTSXfluctuatedfromahighofCAN$5.25toalowofCAN$1.35andontheNYSEMKTfromahighofUS$4.04toalowofUS$0.96duringthetwelve-monthperiodendingOctober13,2016.Therecanbenoassurancethatcontinualfluctuationsinpricewillnotoccur.

ThefactorsinfluencingsuchvolatilityincludemacroeconomicdevelopmentsinNorthAmericaandglobally,andmarketperceptionsoftheattractivenessofparticularindustries.ThepriceoftheCommonSharesisalsolikelytobesignificantlyaffectedbyshorttermchangesinpreciousmetalpricesorothermineralprices,currencyexchangefluctuationsandtheCompany'sfinancialconditionorresultsofoperationsasreflectedinitsearningsreports.OtherfactorsunrelatedtotheperformanceoftheCompanythatmayhaveaneffectonthepriceoftheCommonSharesandotherSecuritiesincludethefollowing:

• the extent of analyst coverage available to investors concerning the business of the Companymaybe limited if investmentbankswithresearchcapabilitiesdonotfollowtheCompany'ssecurities;

• lesseningintradingvolumeandgeneralmarketinterestintheCompany'ssecuritiesmayaffectaninvestor'sabilitytotradesignificantnumbersofsecuritiesoftheCompany;

• changes to South African laws and regulations might have a negative effect on the development prospects, timelines or relationships for theCompany'smaterialproperties;

• thesizeoftheCompany'spublicfloatmaylimittheabilityofsomeinstitutionstoinvestintheCompany'ssecurities;and

• asubstantialdeclineinthepriceofthesecuritiesoftheCompanythatpersistsforasignificantperiodoftimecouldcausetheCompany'ssecuritiestobedelistedfromanexchange,furtherreducingmarketliquidity.

Securitiesclassactionlitigationoftenhasbeenbroughtagainstcompaniesfollowingperiodsofvolatilityinthemarketpriceoftheirsecurities.TheCompanymay in the future be the target of similar litigation. Securities litigation could result in substantial costs and damages and divert management's attentionandresources.

The Company's growth, future profitability and ability to obtain financing may be impacted by global financial conditions.

Globalfinancialconditionscontinuetobecharacterizedbyextremevolatility.Inrecentyears,globalmarketshavebeenadversely impactedbythecreditcrisisthatbeganin2008,theEuropeandebtcrisisandsignificantfluctuationsinfuelandenergycostsandmetalsprices.Manyindustries,includingtheminingindustry,havebeenimpactedbythesemarketconditions.Globalfinancialconditionsremainsubjecttosudden

41

andrapiddestabilizationsinresponsetofutureeconomicshocks,asgovernmentauthoritiesmayhavelimitedresourcestorespondtofuturecrises.Acontinuedorworsenedslowdowninthefinancialmarketsorothereconomicconditions,includingbutnotlimitedtoconsumerspending,employmentrates,businessconditions,inflation,fuelandenergycosts,consumerdebtlevels,lackofavailablecredit,thestateofthefinancialmarkets,interestratesandtaxrates,mayadverselyaffecttheCompany'sgrowthandprofitability.Futureeconomicshocksmaybeprecipitatedbyanumberofcauses,includingdebtcrises,acontinuedriseinthepriceofoilandothercommodities,thevolatilityofmetalprices,geopoliticalinstability,terrorism,thedevaluationandvolatilityofglobalstockmarkets,healthcrisesandnaturaldisasters.AnysuddenorrapiddestabilizationofglobaleconomicconditionscouldimpacttheCompany'sabilitytoobtainequityordebtfinancinginthefutureontermsfavourabletotheCompanyoratall.Insuchanevent,theCompany'soperationsandfinancialconditioncouldbeadverselyimpacted.

The exercise of outstanding stock options or warrants will result in dilution to the holders of Common Shares.

TheissuanceofCommonSharesupontheexerciseoftheCompany'soutstandingstockoptionswillresultindilutiontotheinterestsofshareholders,andmayreducethetradingpriceoftheCommonShares.AdditionalstockoptionsandwarrantstopurchaseCommonSharesmaybeissuedinthefuture.Exercisesofthesesecurities,oreventhepotentialoftheirexercise,mayhaveanadverseeffectonthetradingpriceoftheCommonShares.Theholdersofstockoptionsorwarrantsare likely to exercise them at times when the market price of the Common Shares exceeds the exercise price of the securities. Accordingly, the issuance ofCommonSharesuponexerciseofthestockoptionsandwarrantswilllikelyresultindilutionoftheequityrepresentedbythethenoutstandingCommonSharesheld by other shareholders. The holders of stock options or warrants can be expected to exercise or convert them at a time when the Companywould, in alllikelihood, be able to obtain any needed capital on terms which are more favorable to the Company than the exercise terms provided by these stock optionsandwarrants.

Future sales or issuances of equity Securities could decrease the value of the Common Shares, dilute investors' voting power and reduce the Company'searnings per share.

The Company may sell equity Securities in Offerings (including through the sale of Debt Securities convertible into equity Securities) and may issueadditionalequitySecuritiestofinanceoperations,exploration,development,acquisitionsorotherprojects.TheCompanycannotpredictthesizeoffutureissuancesofequitySecuritiesorthesizeandtermsoffutureissuancesofDebtSecuritiesorotherSecuritiesconvertibleintoequitySecuritiesortheeffect,ifany,thatfutureissuancesandsalesoftheSecuritieswill haveonthemarketpriceoftheCommonShares. AnytransactioninvolvingtheissuanceofpreviouslyauthorizedbutunissuedCommonShares, or Securities convertible into CommonShares, wouldresult indilution, possiblysubstantial, to shareholders. Exercises of presentlyoutstandingstockoptionsmayalsoresultindilutiontoshareholders.

The board of directors of the Company has the authority to authorize certain offers and sales of the Securities without the vote of, or prior notice to,shareholders.Basedontheneedforadditionalcapitaltofundexpectedexpendituresandgrowth,itislikelythattheCompanywillissuetheSecuritiestoprovidesuchcapital.SuchadditionalissuancesmayinvolvetheissuanceofasignificantnumberofCommonSharesatpriceslessthanthecurrentmarketprice.

SalesofsubstantialamountsoftheSecurities,ortheavailabilityoftheSecuritiesforsale,couldadverselyaffecttheprevailingmarketpricesfortheSecuritiesanddiluteinvestors'earningspershare.AdeclineinthemarketpricesoftheSecuritiescouldimpairtheCompany'sabilitytoraiseadditionalcapitalthroughthesaleofadditionalSecuritiesshouldtheCompanydesiretodoso.

Judgments based upon the civil liability provisions of the United States federal securities laws may be difficult to enforce.

TheabilityofinvestorstoenforcejudgmentsofUnitedStatescourtsbaseduponthecivil liabilityprovisionsofthe UnitedStatesfederalsecuritieslawsagainst the Company, its directors and officers, and the experts named herein may be limited due to the fact that the Company is incorporated outside of theUnitedStates,amajorityofsuchdirectors,officers,andexpertsresideoutsideoftheUnitedStatesandasubstantialportionoftheassetsoftheCompanyandsaidpersonsarelocatedoutsidetheUnitedStates.Thereisuncertaintyasto

42

whetherforeigncourtswould:(a)enforcejudgmentsofUnitedStatescourtsobtainedagainsttheCompany,itsdirectorsandofficersortheexpertsnamedhereinpredicateduponthecivilliabilityprovisionsoftheUnitedStatesfederalsecuritieslaws;or(b)entertainoriginalactionsbroughtinCanadiancourtsagainsttheCompanyorsuchpersonspredicateduponthefederalsecuritieslawsoftheUnitedStates,assuchlawsmayconflictwithCanadianlaws.

There may be adverse Canadian tax consequences for a foreign controlled Canadian company that acquires the Securities of the Company.

CertainadversetaxconsiderationsmaybeapplicabletoashareholderthatisacorporationresidentinCanadaandis,orbecomes,controlledbyanon-residentcorporationforthepurposesofthe"foreignaffiliatedumping"rulesintheIncomeTaxAct(Canada)(the"TaxAct").SuchshareholdersshouldconsulttheirtaxadvisorswithrespecttotheconsequencesofacquiringtheSecurities.

The Company may be a "passive foreign investment company" in its current and future tax years, which may have adverse U.S. federal income taxconsequences for U.S. investors.

PotentialinvestorsintheSecuritieswhoareU.S.taxpayersshouldbeawarethattheCompanymaybeclassifiedasa"passiveforeigninvestmentcompany"or"PFIC"foritscurrenttaxyearendingAugust31,2017,andmaybeaPFICinfuturetaxyears.IftheCompanyisaPFICforanytaxyearduringaU.S.taxpayer'sholdingperiodoftheSecurities,thensuchU.S.taxpayergenerallywillberequiredtotreatanygainrealizeduponadispositionoftheSecuritiesoranyso-called"excess distribution" received on the Securities, as ordinary income, and to pay an interest charge on a portion of such gain or excess distribution. In certaincircumstances,thesumofthetaxandtheinterestchargemayexceedthetotalamountofproceedsrealizedonthedisposition,ortheamountofexcessdistributionreceived,bytheU.S.taxpayer.Subjecttocertainlimitations,thesetaxconsequencesmaybemitigatedifaU.S.taxpayermakesatimelyandeffective"qualifiedelectingfund"or"QEF"election(a"QEFElection")underSection1295oftheInternalRevenueCodeof1986,asamended(the"Code")oramark-to-marketelection (a "Mark-to-Market Election ") under Section 1296 of the Code. Subject to certain limitations, such elections may be made with respect to theSecurities,provided,however,thataQEFElectionmaynotbemadewithrespecttoWarrantsandDebtSecuritiesconvertibleintoCommonSharesandthattheMark-to-MarketElectionmayonlyapplytoCommonShares.AU.S.taxpayerwhomakesatimelyandeffectiveQEFElectiongenerallymustreportonacurrentbasisitsshareoftheCompany'snetcapitalgainandordinaryearningsforanyyearinwhichtheCompanyisaPFIC,whetherornottheCompanydistributesanyamountstoitsshareholders.AU.S.taxpayerwhomakestheMark-to-MarketElectiongenerallymustincludeasordinaryincomeeachyeartheexcessofthefairmarketvalueofCommonSharesoverthetaxpayer'sbasistherein.EachpotentialinvestorwhoisaU.S.taxpayershouldconsultitsowntaxadvisorregardingtheU.S.federal,U.S.stateandlocal,andforeigntaxconsequencesofthePFICrulesandtheacquisition,ownership,anddispositionofSecuritiesacquiredpursuanttothisProspectus.

The Company is an "emerging growth company" and the Company cannot be certain whether the reduced disclosure requirements applicable to emerginggrowth companies will make the Securities less attractive to investors.

TheCompanyis an"emerginggrowthcompany,"asdefinedintheU.S.Jumpstart OurBusinessStartupsAct of 2012, andintendsto takeadvantageofexemptionsfromvariousrequirementsthatareapplicabletootherpubliccompaniesthatareemerginggrowthcompanies,includingnotbeingrequiredtocomplywiththeauditorattestationrequirementsofSection404oftheU.S.Sarbanes-OxleyActof2002forsolongastheCompanyisanemerginggrowthcompany.TheCompanycannotpredictifinvestorswillfindtheSecuritieslessattractivebecausetheCompany'sindependentauditorswillnothaveattestedtotheeffectivenessof the Company's internal controls. If some investors find the Securities less attractive as a result of the Company's independent auditors not attesting to theeffectivenessoftheCompany'sinternal controlsorasaresult ofotherexemptionsthattheCompanymaytakeadvantageof,theremaybealessactivetradingmarketfortheSecuritiesandthevalueoftheSecuritiesmaybeadverselyaffected.

43

The Company has discretion in the use of the net proceeds from an Offering.

TheCompanyintendstoallocatethenetproceedsitwillreceivefromanOfferingasdescribedunder"UseofProceeds"inthisProspectusandtheapplicableProspectus Supplement, however, the Company will have discretion in the actual application of the net proceeds. The Company may elect to allocate the netproceedsdifferentlyfromthatdescribedin"UseofProceeds"inthisProspectusandtheapplicableProspectusSupplementiftheCompanybelievesitwouldbeinthe Company's best interests to do so. TheCompany's investors may not agree with the manner in which the Company chooses to allocate and spend the netproceedsfromanOffering.ThefailurebytheCompanytoapplythesefundseffectivelycouldhaveamaterialadverseeffectonthebusinessoftheCompany.

There is an absence of a public market for certain of the Securities.

There is nopublic market for the Debt Securities, Warrants, SubscriptionReceipts or Units and, unless otherwise specified in the applicableProspectusSupplement,theCompanydoesnotintendtoapplyforlistingoftheDebtSecurities,Warrants,SubscriptionReceiptsorUnitsonanysecuritiesexchanges.IftheDebt Securities,Warrants, Subscription Receipts or Units are traded after their initial issuance, they may trade at a discount from their initial offering pricesdependingonprevailinginterestrates(asapplicable),themarketforsimilarsecuritiesandotherfactors,includinggeneraleconomicconditionsandtheCompany'sfinancialcondition.TherecanbenoassuranceastotheliquidityofthetradingmarketfortheDebtSecurities,Warrants,SubscriptionReceiptsorUnits,orthatatradingmarketforthesesecuritieswilldevelopatall.

The Debt Securities will be structurally subordinated to any indebtedness of the Company's subsidiaries and the Company's ability to service indebtedness isdependent on the results of operations of, and payments received from, its subsidiaries.

TheCompanycarriesonitsbusinessthroughcorporatesubsidiaries,andthemajorityofitsassetsareheldincorporatesubsidiaries.TheCompany'sresultsofoperationsandabilitytoserviceindebtedness,includingtheDebtSecurities,aredependentupontheresultsofoperationsofthesesubsidiariesandthepaymentoffundsbythesesubsidiariestotheCompanyintheformofloans,dividendsorotherwise.TheCompany'ssubsidiarieswillnothaveanobligationtopayamountsdue pursuant to any Debt Securities or to make any funds available for payment on Debt Securities, whether by dividends, interest, loans, advances or otherpayments. In addition, the payment of dividends andthe making of loans, advances and otherpayments to the Companyby its subsidiaries maybe subject tostatutoryorcontractualrestrictions.TheIndenturewouldnotlimittheCompany'sabilityortheabilityofitssubsidiariestoincurindebtedness.Suchindebtednessof theCompany's subsidiaries wouldbestructurally senior to theDebt Securities. Intheevent of theliquidationof anysubsidiary, theassets of thesubsidiarywould be used first to repay the obligations of the subsidiary, including indebtedness and trade payables, prior to being used by the Company to pay itsindebtedness,includinganyDebtSecurities.

Changes in interest rates may cause the market price or value of the Debt Securities to decline.

PrevailinginterestrateswillaffectthemarketpriceorvalueoftheDebtSecurities.ThemarketpriceorvalueoftheDebtSecuritiesmaydeclineasprevailinginterestratesforcomparabledebtinstrumentsrise,andincreaseasprevailinginterestratesforcomparabledebtinstrumentsdecline.

Fluctuations in foreign currency markets may cause the value of the Debt Securities to decline.

DebtSecuritiesdenominatedorpayableinforeigncurrenciesmayentailsignificantrisk.Theserisksinclude,withoutlimitation,thepossibilityofsignificantfluctuationsintheforeigncurrencymarkets, theimpositionormodificationofforeignexchangecontrolsandpotential liquidityinthesecondarymarket. TheseriskswillvarydependinguponthecurrencyorcurrenciesinvolvedandwillbemorefullydescribedintheapplicableProspectusSupplement.

44

USEOFPROCEEDS

Unless otherwise specified in the applicable Prospectus Supplement, the net proceeds from the sale of Securities will be used to advance our businessobjectivesandforgeneralcorporatepurposes,includingfundingongoingoperationsand/orworkingcapitalrequirements,repayingindebtednessoutstandingfromtimetotime,discretionarycapitalprogramsandpotentialfutureacquisitions.EachProspectusSupplementwillcontainspecificinformationconcerningtheuseofproceedsfromthatsaleofSecurities.

AllexpensesrelatingtoanOfferingandanycompensationpaidtounderwriters,dealersoragents,asthecasemaybe,willbepaidoutoftheproceedsfromthesaleofsuchSecurities,unlessotherwisestatedintheapplicableProspectusSupplement.

EARNINGSCOVERAGERATIO

EarningscoverageratioswillbeprovidedasrequiredintheapplicableProspectusSupplementwithrespecttotheissuanceofDebtSecurities.

CONSOLIDATEDCAPITALIZATION

Sincethedateoftheunauditedinterimcondensedconsolidatedfinancial statementsoftheCompanyforthethreeandninemonthsendedMay31,2016,whichareincorporatedbyreferenceinthisProspectus,therehasbeennomaterialchangetotheshareandloancapitaloftheCompanyonaconsolidatedbasis,otherthanasdisclosedinthisProspectus.SubsequenttoMay31,2016andpriortothedateofthisProspectus,noCommonSharesreservedforissuancepursuanttooutstandingstockoptionshavebeenissuedpursuanttotheexerciseofoutstandingoptions.See"PriorSales"and"DescriptionofExistingIndebtedness".

DESCRIPTIONOFEXISTINGINDEBTEDNESS

The Company entered into the Sprott Facility with the Sprott Lenders on February 16, 2015, as amended by a modification agreement enteredinto onNovember 19, 2015, the May Credit Facility Amendments and the September Credit Facility Amendments, and the Liberty Facility with Liberty Holdings onNovember 2, 2015, as amended by the May Credit Facility Amendments and the September Credit Facility Amendments. The Company simultaneously drewdown,infull,US$40millionfromtheLibertyFacilityandtheOriginalSprottAdvancefromtheSprottFacilityinNovember2015.TheCompanyenteredintotheMayCreditFacilityAmendmentsonMay3,2016andtheSeptemberCreditFacilityAmendmentsonSeptember19,2016modifyingtheSprottFacilityandtheLibertyFacility,whereintheLendersagreedtoextendthematuritydatesoftheSprottFacilityandtheLibertyFacility,amendcertainprepaymentandrepaymentterms and amend certain events of default relating to production targets at Project 1. The Company entered into the Amended &Restated Sprott Facility onOctober11,2016andimmediatelydrewdowntheSecondSprottAdvance.TheCompanypaysinterestundertheLibertyFacilityat9.5%overLIBORandinterestundertheAmended&RestatedSprottFacilityat8.5%overLIBOR.PaymentandperformanceoftheCompany'sobligationsundertheProject1WorkingCapitalFacilitiesareguaranteedbyPTMRSAandsecuredbyafirstandsecondprioritysecurityinterestinfavoroftheLendersinalloftheCompany'spersonalproperty,includingapledgeoveralloftheissuedsharesinthecapitalofPTMRSA.See"BusinessoftheCompany—Project1WorkingCapitalFacilities".

PLANOFDISTRIBUTION

WemayselltheSecurities,separatelyortogether:(a)tooneormoreunderwritersordealers;(b)throughoneormoreagents;or(c)directlytooneormoreotherpurchasers.EachProspectusSupplementwillsetforththetermsoftheapplicableOffering,includingthenameornamesofanyunderwritersoragents,thepurchasepriceorpricesoftheSecuritiesandtheproceedstotheCompanyfromthesaleoftheSecurities. Inaddition,Securitiesmaybeofferedandissuedinconsiderationfortheacquisition(an"Acquisition")ofotherbusinesses,assetsorsecuritiesbyusoroursubsidiaries.TheconsiderationforanysuchAcquisitionmay consist of any of the Securities separately, a combination of Securities or any combination of, among other things, securities, cash and assumptionofliabilities.

45

TheSecuritiesmaybesoldfromtimetotimeinoneormoretransactionsatafixedpriceorpriceswhichmaybechangedoratmarketpricesprevailingatthetimeofsale,atpricesrelatedtosuchprevailingmarketpricesoratnegotiatedprices,includingsalesmadedirectlyontheTSX,orNYSEMKT,ifapplicable,orotherexistingtradingmarketsfortheCommonShares.ThepricesatwhichtheSecuritiesmaybeofferedmayvaryasbetweenpurchasersandduringtheperiodofdistribution. If, inconnectionwithanOfferingatafixedpriceorprices, theunderwritershavemadeabonafideeffort tosell all oftheSecuritiesattheinitialofferingpricefixedintheapplicableProspectusSupplement,thepublicofferingpricemaybedecreasedandthereafterfurtherchanged,fromtimetotime,toanamountnotgreaterthantheinitialpublicofferingpricefixedinsuchProspectusSupplement,inwhichcasethecompensationrealizedbytheunderwriterswillbedecreasedbytheamountthattheaggregatepricepaidbypurchasersfortheSecuritiesislessthanthegrossproceedspaidtousbytheunderwriters.

Underwriters, dealersoragentswhoparticipateinthedistributionofSecuritiesmaybeentitledunderagreementstobeenteredintowiththeCompanytoindemnificationbyusagainstcertainliabilities,includingliabilitiesundertheUnitedStatesSecuritiesActof1933,asamended,andapplicableCanadiansecuritieslegislation,ortocontributionwithrespecttopaymentswhichsuchunderwriters,dealersoragentsmayberequiredtomakeinrespectthereof.Theunderwriters,dealers or agents with whom we enter into agreements may be customers of, engage in transactions with, or perform services for, us in the ordinary courseofbusiness.

InconnectionwithanyofferingofSecurities,exceptasotherwisesetoutinaProspectusSupplementrelatingtoaparticularOffering,theunderwritersordealers,asthecasemaybe,mayover-allotoreffecttransactionsintendedtofixorstabilizethemarketpriceoftheSecuritiesatalevelabovethatwhichmightotherwiseprevailintheopenmarket.Suchtransactions,ifcommenced,maybediscontinuedatanytime.

PRIORSALES

Duringthe12monthsprecedingthedateofthisProspectus,theCompanyhasissuedoragreedtoissueCommonSharesatthefollowingprices:

46

DateofIssuance Numberof

CommonShares IssuancePrices (CAN$)

November20,2015(1) 348,584(2) 3.05November20,2015(1) 348,584(3) 3.05March11,2016 2,250(4) 2.00May13,2016 131,654(5) 3.87May13,2016 131,654(6) 3.87May26,2016 11,000,000(7) 3.89September30,2016 801,314(8) 3.30September30,2016 801,314(9) 3.30October2016 113,963(10) 2.9185

TOTAL 13,679,317

Notes:

(1) ThenumberofCommonSharesandtheissuepricehavebeenadjustedtoreflecttheShareConsolidation.(2) IssuedpursuanttotheSprottFacility.(3) IssuedpursuanttotheLibertyFacility.(4) Issuedpursuanttotheexerciseofstockoptions.(5) IssuedtotheSprottLenderspursuanttotheMayCreditFacilityAmendments.(6) IssuedtoLibertyHoldingspursuanttotheMayCreditFacilityAmendments.(7) IssuedpursuanttotheMayOffering.(8) IssuedtotheSprottLenderspursuanttotheSeptemberCreditFacilityAmendments.(9) IssuedtoLibertyHoldingspursuanttotheSeptemberCreditFacilityAmendments.(10) TobeissuedpriortoOctober31,2016totheSprottLenderspursuanttotheAmended&RestatedSprottCreditAgreement.

Duringthe12monthsprecedingthedateofthisProspectus,theCompanyhasissuedthefollowingsecuritiesconvertibleintoCommonSharesatthefollowingprices:

PRICERANGEANDTRADINGVOLUME

The CommonShares are listed for trading onthe TSXunder the trading symbol "PTM"andonthe NYSEMKTunder the trading symbol "PLG". ThefollowingtablessetforthinformationrelatingtothetradingoftheCommonSharesontheTSXandtheNYSEMKTfortheperiodsindicated:

TSX(1)—"PTM"

NYSEMKT(1)—"PLG"

47

DateofIssuance Numberof

OptionsIssued(1) ExercisePrices(1) (CAN$) December22,2015 1,016,550(2) 2.00

Notes:

(1) ThenumberofoptionsissuedandtheexercisepricehavebeenadjustedtoreflecttheShareConsolidation.(2) StockoptionsissuedpursuanttotheCompany'sstockoptionplan.EachoptionisexercisableforoneCommonShare.

Period High Low Volume (CAN$) (CAN$) October1to13,2016 3.66 2.67 617,417September,2016 3.97 3.50 1,039,057August,2016 4.63 3.59 1,568,123July,2016 4.95 3.79 2,665,700June,2016 4.64 3.51 1,827,030May,2016 4.74 3.42 1,788,239April,2016 5.07 3.16 3,329,126March,2016 5.25 2.51 3,111,955February,2016 3.00 1.41 4,237,233January,2016 2.05 1.35 1,223,459December,2015 3.00 1.75 2,166,542November,2015 3.45 2.80 208,371October,2015 4.30 3.00 645,474

Period High Low Volume (US$) (US$) October1to13,2016 2.80 2.02 3,056,356September,2016 3.08 2.66 4,474,440August,2016 3.56 2.75 7,993,488July,2016 3.98 2.87 10,608,231June,2016 3.57 2.73 8,766,770May,2016 3.71 2.65 7,089,516April,2016 3.91 2.46 10,796,958March,2016 4.04 1.86 8,742,239February,2016 2.19 1.01 15,083,013January,2016 1.51 0.96 1,462,689December,2015 2.26 1.25 1,624,307November,2015 2.65 2.03 738,390October,2015 3.40 2.26 1,518,493

(1) ThepriceandvolumehavebeenadjustedtoreflecttheShareConsolidation.

DIVIDENDPOLICY

WehavenotdeclaredanydividendsordistributionsontheCommonSharessinceourincorporation.Weintendtoretainourearnings,ifany,tofinancethegrowthanddevelopmentofouroperationsanddonotpresentlyanticipatepayinganydividendsordistributionsintheforeseeablefuture.Ourboardofdirectorsmay,however,declare fromtimeto timesuchcashdividends or distributions out of the monies legally available for dividendsor distributions as theboardofdirectorsconsidersadvisable.Anyfuturedeterminationtopaydividendsormakedistributionswillbeatthediscretionoftheboardofdirectorsandwilldependonourcapitalrequirements,resultsofoperationsandsuchotherfactorsastheboardofdirectorsconsidersrelevant.

DESCRIPTIONOFCOMMONSHARES

OurauthorizedsharecapitalconsistsofanunlimitednumberofCommonShares.AsatthedateofthisProspectus,90,459,656CommonSharesareissuedandoutstanding.

ShareholdersareentitledtoreceivenoticeofandattendallmeetingsofshareholderswitheachCommonShareheldentitlingtheholdertoonevoteonanyresolutiontobepassedatsuchshareholdermeetings.Shareholdersareentitledtodividendsif,asandwhendeclaredbytheboardofdirectorsoftheCompany.Shareholdersareentitleduponliquidation,dissolutionorwinding-upoftheCompanytoreceivetheremainingassetsoftheCompanyavailablefordistributiontoshareholders.

DESCRIPTIONOFDEBTSECURITIES

InthissectiondescribingtheDebtSecurities,theterm"Company"refersonlytoPlatinumGroupMetalsLtd.withoutanyofits subsidiaries.ThissectiondescribesthegeneraltermsthatwillapplytoanyDebtSecuritiesissuedpursuanttothisProspectus.ThespecifictermsoftheDebtSecurities,andtheextenttowhichthegeneraltermsdescribedinthissectionapplytothoseDebtSecurities,willbesetforthintheapplicableProspectusSupplement.TheDebtSecuritieswillbeissuedinoneormoreseriesunderanindenture(the"Indenture")tobeenteredintobetweentheCompanyandoneormoretrustees(the"Trustee")thatwillbenamedinaProspectusSupplementforaseriesofDebtSecurities.Totheextentapplicable,theIndenturewillbesubjecttoandgovernedbytheUnitedStatesTrustIndentureActof1939 , asamended.AcopyoftheformoftheIndenturetobeenteredintohasbeenfiledwiththeSECasanexhibit totheRegistrationStatement.ThedescriptionofcertainprovisionsoftheIndentureinthissectionisnotintendedtobecompleteandisqualifiedinitsentiretybyreferencetotheprovisionsoftheIndenture.TermsusedinthissummarythatarenototherwisedefinedhereinhavethemeaningascribedtothemintheIndenture.

WemayissueDebtSecuritiesandincuradditionalindebtednessotherthanthroughanOfferingofDebtSecuritiespursuanttothisProspectus.WemayberequiredtoobtaintheconsentofourlendersfortheissuanceofcertainDebtSecurities,dependingontheirspecificterms.

General

TheIndenturedoesnotlimittheamountofDebtSecuritieswhichwemayissueundertheIndenture,andwemayissueDebtSecuritiesinoneormoreseries.DebtSecuritiesmaybedenominatedandpayableinanycurrency.UnlessotherwiseindicatedintheapplicableProspectusSupplement,theIndenturepermitsus,withouttheconsentoftheholdersofanyDebtSecurities,toincreasetheprincipalamountofanyseriesofDebtSecuritieswehavepreviouslyissuedundertheIndentureandtoissuesuchincreasedprincipalamount.

TheapplicableProspectusSupplementwillsetforththefollowingtermsrelatingtotheDebtSecuritiesofferedbysuchProspectusSupplement(the"OfferedSecurities"):

• thespecificdesignationoftheOfferedSecurities;anylimitontheaggregateprincipalamountoftheOfferedSecurities;thedateordates,ifany,onwhich the Offered Securities will mature and the portion (if less than all of the principal amount) of the Offered Securities to be payable upondeclarationofaccelerationofmaturity;

• therateorratesatwhichtheOfferedSecuritieswillbearinterest,ifany,thedateordatesonwhichanysuchinterestwillbegintoaccrueandonwhichanysuchinterestwillbepayableandtherecorddatesforanyinterestpayableontheOfferedSecuritieswhichareinregisteredform;

48

• thetermsandconditionsunderwhichwemaybeobligatedtoredeem,repayorpurchasetheOfferedSecurities pursuant toanysinkingfundoranalogousprovisionsorotherwise;

• thetermsandconditionsuponwhichwemayredeemtheOfferedSecurities,inwholeorinpart,atouroption;

• whethertheOfferedSecuritieswillbeissuableinregisteredformorbearerformorboth,and,ifissuableinbearerform,therestrictionsastotheoffer,saleanddeliveryoftheOfferedSecuritieswhichareinbearerformandastoexchangesbetweenregisteredformandbearerform;

• whether the Offered Securities will be issuable in the formof registered global securities ("GlobalSecurities"), and, if so, theidentity of thedepositaryforsuchregisteredGlobalSecurities;

• thedenominationsinwhichregisteredOfferedSecuritieswillbeissuable,ifotherthandenominationsofUS$1,000andanymultiplethereof,andthedenominationsinwhichbearerOfferedSecuritieswillbeissuable,ifotherthanUS$1,000;

• each office or agency where payments on the Offered Securities will be made (if other than the offices or agenciesdescribedunder"Payment"below)andeachofficeoragencywheretheOfferedSecuritiesmaybepresentedforregistrationoftransferorexchange;

• ifotherthanU.S.dollars,thecurrencyinwhichtheOfferedSecuritiesaredenominatedorthecurrencyinwhichwewillmakepaymentsontheOfferedSecurities;

• theterms,ifany,onwhichtheOfferedSecuritiesmaybeconvertedorexchangedforotheroftheSecuritiesorsecuritiesofotherentities;

• anyothertermsoftheOfferedSecuritieswhichapplysolelytotheOfferedSecurities,ortermsgenerallyapplicabletotheDebtSecuritieswhicharenottoapplytotheOfferedSecurities;and

• if not obtained as at the date of such Prospectus Supplement, any consents required to be obtained with respect to the issuance of the OfferedSecurities.

UnlessotherwiseindicatedintheapplicableProspectusSupplement:

• holdersmaynottenderDebtSecuritiestousforrepurchase;and

• therateorratesofinterestontheDebtSecuritieswillnotincreaseifwebecomeinvolvedinahighlyleveragedtransactionorweareacquiredbyanotherentity.

WemayissueDebtSecuritiesundertheIndenturebearingnointerestorinterestataratebelowtheprevailingmarketrateatthetimeofissuance.Wemayoffer and sell Debt Securities at a discount below their stated principal amount. We will describe in the applicable Prospectus Supplement any Canadian andU.S.federalincometaxconsequencesandotherspecialconsiderationsapplicabletoanydiscountedDebtSecuritiesorotherDebtSecuritiesofferedandsoldatparwhicharetreatedashavingbeenissuedatadiscountforCanadianand/orU.S.federalincometaxpurposes.

AnyDebtSecuritiesweissuewillbeourdirect,unconditionalandunsecuredobligationsandwillrankequallyamongthemselvesandwithallofourotherunsecured,unsubordinatedobligations,excepttotheextentprescribedbylaw.DebtSecuritiesweissuewillbestructurallysubordinatedtoallexistingandfutureliabilities,includingtradepayablesandotherindebtedness,ofoursubsidiaries.

WewillagreetofilewiththeTrusteeannualreportsandtheinformation,documents,andotherreportsthatwearerequiredtofilewiththeSECpursuanttoSection13orSection15(d)oftheExchangeActorpursuanttoSection314oftheUnitedStatesTrustIndentureActof1939,asamended.

Form,Denomination,ExchangeandTransfer

Unlessotherwiseindicatedintheapplicable ProspectusSupplement, wewill issueDebtSecurities onlyinfullyregisteredformwithout coupons,andindenominations of US$1,000 and multiples of US$1,000. Debt Securities may be presented for exchange and registered Debt Securities may be presented forregistrationoftransferinthemannersetforthintheIndentureandintheapplicableProspectusSupplement,withoutservicecharges.Wemay,however,requirepaymentsufficienttocoveranytaxesorothergovernmentalchargesduein

49

connectionwith the exchange or transfer. We will appoint the Trustee as security registrar. Bearer Debt Securities and the coupons applicable to bearer DebtSecuritiestheretowillbetransferablebydelivery.

Payment

UnlessotherwiseindicatedintheapplicableProspectusSupplement,wewillmakepaymentsonregisteredDebtSecurities(otherthanGlobalSecurities)attheofficeoragencyoftheTrustee,exceptthatwemaychoosetopayinterest(a)bycheckmailedtotheaddressofthepersonentitledtosuchpaymentasspecifiedinthesecurityregisteror(b)bywiretransfertoanaccountmaintainedbythepersonentitledtosuchpaymentasspecifiedinthesecurityregister.UnlessotherwiseindicatedintheapplicableProspectusSupplement,wewillpayanyinterestdueonregisteredDebtSecuritiestothepersonsinwhosenamesuchregisteredDebtSecuritiesareregisteredonthedayordays,specifiedintheapplicableProspectusSupplement.

RegisteredGlobalSecurities

RegisteredDebtSecuritiesofaseriesmaybeissuedinwholeorinpartinglobalformthatwillbedepositedwith,oronbehalfof,adepositaryidentifiedintheProspectusSupplement.GlobalSecuritieswillberegisteredinthenameofafinancialinstitutionthatweselect,andtheDebtSecuritiesincludedintheGlobalSecuritiesmaynotbetransferredtothenameofanyotherdirectholderunlessthespecialcircumstancesdescribedbelowoccur.ThefinancialinstitutionthatactsasthesoledirectholderoftheGlobalSecuritiesiscalledthe"Depositary".AnypersonwishingtoownDebtSecuritiesissuedintheformofGlobalSecuritiesmustdosoindirectlybyvirtueofanaccountwithabroker,bankorotherfinancialinstitutionthat,inturn,hasanaccountwiththeDepositary.

SpecialInvestorConsiderationsforGlobalSecurities

Ourobligations,aswellastheobligationsoftheTrusteeandthoseofanythirdpartiesweemployedortheTrustee,runonlytopersonswhoareregisteredasholdersofDebtSecurities.Forexample,oncewemakepaymenttotheregisteredholder,wehavenofurtherresponsibilityforthepaymentevenifthatholderislegallyrequired to pass the payment along to an investor but does not do so. As an indirect holder, an investor's rights relating to a Global Security will begovernedbytheaccountrulesoftheinvestor'sfinancialinstitutionandoftheDepositary,aswellasgenerallawsrelatingtodebtsecuritiestransfers.

AninvestorshouldbeawarethatwhenDebtSecuritiesareissuedintheformofGlobalSecurities:

• theinvestorcannothaveDebtSecuritiesregisteredinhisorherownname;

• theinvestorcannotreceivephysicalcertificatesforhisorherinterestintheDebtSecurities;

• theinvestormustlooktohisorherownbankorbrokeragefirmforpaymentsontheDebtSecuritiesandprotectionofhisorherlegalrightsrelatingtotheDebtSecurities;

• theinvestormaynotbeabletosellinterestsintheDebtSecuritiestosomeinsurancecompaniesandotherinstitutionsthatarerequiredbylawtoholdthephysicalcertificatesofDebtSecuritiesthattheyown;

• theDepositary'spolicieswillgovernpayments,transfers,exchangeandothermattersrelatingtotheinvestor'sinterestintheGlobalSecurity.WeandtheTrusteewillhavenoresponsibilityforanyaspectoftheDepositary'sactionsorforitsrecordsofownershipinterestsintheGlobalSecurity.WeandtheTrusteealsodonotsupervisetheDepositaryinanyway;and

• theDepositarywillusuallyrequirethatinterestsinaGlobalSecuritybepurchasedorsoldwithinitssystemusingsame-dayfunds.

SpecialSituationsWhenGlobalSecurityWillbeTerminated

Inafewspecialsituationsdescribedbelow,aGlobalSecuritywillterminateandinterestsinitwillbeexchangedforphysicalcertificatesrepresentingDebtSecurities. Afterthatexchange,aninvestormaychoosewhethertoholdDebtSecuritiesdirectlyorindirectlythroughanaccountat its bankorbrokeragefirm.Investors

50

must consult their own banks or brokers to find out how to have their interests in Debt Securities transferred into their own names, so that they will bedirectholders.

ThespecialsituationsforterminationofaGlobalSecurityare:

• whentheDepositarynotifies usthat it is unwilling, unable or nolonger qualifiedtocontinueas Depositary(unless areplacementDepositaryisnamed);and

• whenandifwedecidetoterminateaGlobalSecurity.

TheProspectusSupplementmaylistsituationsforterminatingaGlobalSecuritythatwouldapplyonlytotheparticularseriesofDebtSecuritiescoveredbytheProspectusSupplement.WhenaGlobalSecurityterminates,theDepositary(andnotusortheTrustee)isresponsiblefordecidingthenamesoftheinstitutionsthatwillbetheinitialdirectholders.

EventsofDefault

Theterm"EventofDefault"withrespecttoDebtSecuritiesofanyseriesmeansanyofthefollowing:

(a) defaultinthepaymentoftheprincipalof(oranypremiumon)anySecurityofthatseriesatitsmaturity;

(b) defaultinthepaymentofanyinterestonanySecurityofthatserieswhenitbecomesdueandpayable,andcontinuanceofsuchdefaultforaperiodof30days;

(c) defaultinthedepositofanysinkingfundpaymentwhenthesamebecomesduebythetermsoftheDebtSecuritiesofthatseries;

(d) defaultintheperformance,orbreach,ofanyothercovenantoragreementofoursintheIndentureinrespectoftheDebtSecuritiesofthatseries(otherthanacovenantoragreementforwhichdefaultorbreachisspecificallydealtwithelsewhereintheIndenture),wheresuchdefaultorbreachcontinuesforaperiodof90daysafterwrittennoticetousbytheTrusteeortheholdersofatleast25%inprincipalamountofalloutstandingDebtSecuritiesaffectedthereby;

(e) certaineventsofbankruptcy,insolvencyorreorganization;or

(f) anyotherEventsofDefaultprovidedwithrespecttotheDebtSecuritiesofthatseries.

IfanEventofDefaultdescribedinclause(a),(b),(c),(d)or(f)aboveoccursandiscontinuingwithrespecttoDebtSecuritiesofanyseries,thentheTrusteeortheholdersofnotlessthan25%inaggregateprincipalamountoftheoutstandingDebtSecuritiesofthatseriesmayrequiretheprincipalamount(or,iftheDebtSecuritiesofthatseriesareOriginalIssueDiscountSecuritiesorIndexedSecurities(eachasdefinedintheIndenture),suchportionoftheprincipalamountasmaybespecifiedinthetermsofthatseries)ofalltheoutstandingDebtSecuritiesofthatseriesandanyaccruedbutunpaidinterestonsuchDebtSecuritiesbepaidimmediately.IfanEventofDefaultdescribedinclause(e)aboveoccursandiscontinuing,thentheprincipalamountofalloftheDebtSecuritiesofthatseriesthenoutstandingwillautomatically,andwithoutanydeclarationoranyotheractiononthepartoftheTrusteeortheholdersofDebtSecurities,becomedueandpayableimmediately.

However, atanytimeafteradeclarationofaccelerationwithrespecttoDebtSecuritiesofanyserieshasbeenmadeandbeforeajudgmentordecreeforpayment of the money due has beenobtained, the Event of Default giving rise to such declaration of acceleration will be deemed to have been waived if theCompanyhaspaidtheTrusteeallamountsdueandtheEventofDefaulthasbeencuredorwaivedinaccordancewiththetermsoftheIndenture,bytheholdersofa majority in principal amount of the outstanding Debt Securities of such series. The applicable Prospectus Supplement will contain provisions relating toaccelerationofthematurityofaportionoftheprincipalamountofOriginalIssueDiscountSecuritiesorIndexedSecuritiesupontheoccurrenceofanyEventofDefaultandthecontinuationthereof.

Exceptduringdefault,theTrusteeisnotobligatedtoexerciseanyofitsrightsandpowersundertheIndentureattherequestordirectionofanyoftheholders,unlesstheholdershaveofferedtotheTrusteereasonableindemnity.Iftheholdersprovidereasonableindemnity,theholdersofamajorityinprincipalamountoftheoutstandingDebtSecuritiesofallseriesaffectedbyanEventofDefaultmay,subjecttocertain

51

limitations,directthetime,methodandplaceofconductinganyproceedingforanyremedyavailabletotheTrustee,orexercisinganytrustorpowerconferredontheTrustee,withrespecttotheDebtSecuritiesofallseriesaffectedbysuchEventofDefault.

NoholderofaDebtSecurityofanyserieswillhaveanyrighttoinstituteanyproceedings,unless:

• suchholderhaspreviouslygiventotheTrusteewrittennoticeofacontinuingEventofDefaultwithrespecttotheDebtSecuritiesofthatseries;

• theholdersofatleast25%inprincipalamountoftheoutstandingDebtSecuritiesofallseriesaffectedbysuchEventofDefaulthavemadewrittenrequestandhaveofferedreasonableindemnitytotheTrusteetoinstitutesuchproceedingsastrustee;and

• the Trustee has failed to institute such proceedings, and has not received from the holders of a majority in the aggregate principal amount ofoutstanding Debt Securities of all series affected by such Event of Default a direction inconsistent with such request, within 60 days after suchnotice,requestandoffer.

However,theselimitationsdonotapplytoasuitinstitutedbytheholderofaDebtSecurityfortheenforcementofpaymentofprincipaloforinterestonsuchDebtSecurityonoraftertheapplicableduedateofsuchpayment.

WewillberequiredtofurnishtotheTrusteeannuallyanofficers'certificateastotheperformanceofcertainofourobligationsundertheIndentureandastoanydefaultinsuchperformance.

Defeasance

Whenweusetheterm"defeasance",wemeandischargefromsomeorallofourobligationsundertheIndenturewithrespecttoDebtSecuritiesofaparticularseries. If wedeposit withtheTrusteesufficient cashor government securities to paytheprincipal, interest, anypremiumandanyother sumsduetothestatedmaturityoraredemptiondateoftheDebtSecuritiesofaparticularseries,thenatouroption:

• WewillbedischargedfromourobligationswithrespecttotheDebtSecuritiesofsuchserieswithcertainexceptions,andtheholdersoftheDebtSecurities of the affected series will not be entitled to the benefits of the Indenture except for registration of transfer and exchange of DebtSecurities and replacement of lost, stolen or mutilated Debt Securities and certain other limited rights. Such holders may look only to suchdepositedfundsorobligationsforpayment;or

• WewillnolongerbeunderanyobligationtocomplywithcertaincovenantsundertheIndenture,andcertainEventsofDefaultwillnolongerapplytous.

ToexercisedefeasancewealsomustdelivertotheTrustee:

• anopinionofU.S.counseltotheeffectthatthedepositandrelateddefeasancewouldnotcausetheholdersoftheDebtSecuritiesoftheapplicableseriestorecognizeincome,gainorlossforU.S.federalincometaxpurposesandthatholdersoftheDebtSecuritiesofthatserieswillbesubjecttoU.S.federalincometaxonthesameamounts,inthesamemannerandatthesametimesaswouldhavebeenthecaseifsuchdefeasancehadnotoccurred;and

• an opinion of Canadian counsel or a ruling fromCanada Revenue Agency that there would be no such recognition of income,gain or loss forCanadianfederalorprovincialtaxpurposesandthatholdersoftheDebtSecuritiesofsuchserieswillbesubjecttoCanadianfederalandprovincialincometaxonthesameamounts,inthesamemannerandatthesametimesaswouldhavebeenthecaseifsuchdefeasancehadnotoccurred.

Inaddition,noEventofDefaultwithrespecttotheDebtSecuritiesoftheapplicableseriescanhaveoccurredandwecannotbeaninsolventpersonundertheBankruptcyandInsolvencyAct(Canada).InorderforU.S.counseltodelivertheopinionthatwouldallowustobedischargedfromallofourobligationsundertheDebtSecuritiesofanyseries,wemusthavereceivedfrom,ortheremusthavebeenpublishedby,theInternalRevenueServicearuling,ortheremusthavebeenachangeinlawsothatthedepositanddefeasancewouldnotcauseholdersoftheDebtSecuritiesofsuchseriestorecognizeincome,gainorlossforU.S.federalincometax

52

purposesandsothatsuchholderswouldbesubjecttoU.S.federalincometaxonthesameamounts,inthesamemannerandatthesametimeaswouldhavebeenthecaseifsuchdefeasancehadnotoccurred.

ModificationsandWaivers

WemaymodifyoramendtheIndenturewiththeconsentoftheholdersofamajorityinaggregateprincipalamountoftheoutstandingDebtSecuritiesofallseriesaffectedbysuchmodificationoramendmentprovided,however,thatwemustreceiveconsentfromtheholderofeachoutstandingDebtSecurityofsuchaffectedseriesto:

• changethestatedmaturityoftheprincipaloforinterestonsuchoutstandingDebtSecurity;

• reducetheprincipalamountoforinterestonsuchoutstandingDebtSecurity;

• reducetheamountoftheprincipalpayableupontheaccelerationofthematurityofanoutstandingOriginalIssueDiscountSecurity;

• adverselyaffectanyrightofrepaymentattheoptionoftheholderofanyDebtSecurities;

• changetheplaceorcurrencyofpaymentsonsuchoutstandingDebtSecurity;

• impairtherighttoinstitutesuitfortheenforcementofanypaymentonorwithrespecttoanyDebtSecurity;

• adverselyaffectanyrighttoconvertorexchangetheDebtSecurityasprovidedpursuanttotheIndenture;

• reducethepercentageinprincipalamountofoutstandingDebtSecuritiesofsuchseriesfromwhichtheconsentofholdersisrequiredtomodifyoramendtheIndentureorwaivecompliancewithcertainprovisionsoftheIndentureorwaivecertaindefaults;or

• modifyanyprovisionsoftheIndenturerelatingtomodifyingoramendingtheIndentureorwaivingpastdefaultsorcovenantsexceptasotherwisespecified.

TheholdersofamajorityinprincipalamountofDebtSecuritiesofanyseriesmaywaiveourcompliancewithcertainrestrictiveprovisionsoftheIndenturewithrespecttosuchseries.TheholdersofamajorityinprincipalamountofoutstandingDebtSecuritiesofallserieswithrespecttowhichanEventofDefaulthasoccurredmaywaiveanypastdefaultundertheIndenture,exceptadefaultinthepaymentoftheprincipalof,orintereston,anySecurityorinrespectofanyitemlistedaboverequiringtheconsentoftheholderofeachoutstandingDebtSecurityofsuchaffectedseries.

TheIndentureortheDebtSecuritiesmaybeamendedorsupplemented,withouttheconsentofanyholderofsuchDebtSecurities,inorderto,amongotherthings,cureanyambiguityorinconsistencyortomakeanychange,inanycase,thatdoesnothaveamateriallyadverseeffectontherightsofanyholderofsuchDebtSecurities.

ConsenttoJurisdictionandService

UndertheIndenture,wewillirrevocablyappointanauthorizedagentuponwhichprocessmaybeservedinanysuit,actionorproceeding arisingoutoforrelatingtotheIndentureandtheDebtSecuritiesandforactionsbroughtunderfederalorstatesecuritieslawsbroughtinanyfederalorstatecourtlocatedinTheCityofNewYork(hereinafterreferredtoasaNewYorkCourt),andwillsubmittosuchnon-exclusivejurisdiction.

GoverningLaw

TheIndentureandtheDebtSecuritieswillbegovernedbyandconstruedinaccordancewiththelawsoftheStateofNewYork.

EnforceabilityofJudgments

SincealloftheassetsoftheCompanyareoutsidetheUnitedStates,anyjudgmentobtainedintheUnitedStatesagainst uswouldneedtobesatisfiedbyseekingenforcementofsuchjudgmentinacourtlocatedoutsideoftheUnitedStatesfromourassets.WehavebeenadvisedbyourCanadiancounsel,GowlingWLG(Canada)LLP,thatthereisdoubtastotheenforceabilityinCanadabyacourtinoriginalactions,orinactionstoenforcejudgmentsofUnitedStatescourts,ofcivilliabilitiespredicateduponUnitedStatesfederalsecuritieslaws.

53

TheTrustee

TheTrusteeundertheIndenturewillbenamedintheapplicableProspectusSupplement.

DESCRIPTIONOFWARRANTS

WemayissueWarrants topurchaseCommonSharesor DebtSecurities. Thissectiondescribesthegeneral termsthat will applytoanyWarrantsissuedpursuanttothisProspectus.

Warrants maybeofferedseparatelyortogetherwithotherSecuritiesandmaybeattachedtoorseparatefromanyotherSecurities. UnlesstheapplicableProspectusSupplementotherwiseindicates, eachseriesofWarrantswill beissuedunderaseparatewarrantindenturetobeenteredintobetweenusandoneormore banksor trust companies acting as Warrant agent. TheWarrant agentwill act solely as our agent andwill not assumea relationship of agencywith anyholders of Warrant certificates or beneficial owners of Warrants. The applicable Prospectus Supplement will include details of the warrant indentures, if any,governing the Warrants being offered. The specific terms of the Warrants, and the extent to which the general terms described in this section apply to thoseWarrants,willbesetoutintheapplicableProspectusSupplement.

Notwithstandingtheforegoing,wewillnotofferWarrantsforsaleseparatelytoanymemberofthepublicinCanadaunlesstheOfferingisinconnectionwithandformspartoftheconsiderationforanacquisitionormergertransaction.

TheProspectusSupplementrelatingtoanyWarrantsthatweofferwilldescribetheWarrantsandthespecifictermsrelatingtotheOffering.Thedescriptionwillinclude,whereapplicable:

• thedesignationandaggregatenumberofWarrants;

• thepriceatwhichtheWarrantswillbeoffered;

• thecurrencyorcurrenciesinwhichtheWarrantswillbeoffered;

• thedateonwhichtherighttoexercisetheWarrantswillcommenceandthedateonwhichtherightwillexpire;

• thedesignation,numberandtermsoftheCommonSharesorDebtSecurities,asapplicable,thatmaybepurchaseduponexerciseoftheWarrants,andtheproceduresthatwillresultintheadjustmentofthosenumbers;

• theexercisepriceoftheWarrants;

• thedesignationandtermsoftheSecurities,ifany,withwhichtheWarrantswillbeoffered,andthenumberofWarrantsthatwillbeofferedwitheachSecurity;

• iftheWarrantsareissuedasaUnitwithanotherSecurity,thedate,ifany,onandafterwhichtheWarrantsandtheotherSecuritywillbeseparatelytransferable;

• anyminimumormaximumamountofWarrantsthatmaybeexercisedatanyonetime;

• anyterms,proceduresandlimitationsrelatingtothetransferability,exchangeorexerciseoftheWarrants;

• whethertheWarrantswillbesubjecttoredemptionorcalland,ifso,thetermsofsuchredemptionorcallprovisions;

• materialUnitedStatesandCanadianfederalincometaxconsequencesofowningtheWarrants;and

• anyothermaterialtermsorconditionsoftheWarrants.

WarrantcertificateswillbeexchangeablefornewWarrantcertificatesofdifferentdenominationsattheofficeindicatedintheProspectusSupplement.Priorto the exercise of theirWarrants, holders of Warrants will not have any of the rights of holders of the Securities subject to the Warrants. Wemay amend thewarrantindenture(s)andtheWarrants,withouttheconsentoftheholdersoftheWarrants,tocureanyambiguity,tocure,correctorsupplementanydefectiveorinconsistentprovisionorinanyothermannerthatwillnotprejudicetherightsoftheholdersofoutstandingWarrants,asagroup.

54

DESCRIPTIONOFSUBSCRIPTIONRECEIPTS

We may issue Subscription Receipts, separately or together, with Common Shares, Debt Securities or Warrants, as the case may be. The SubscriptionReceiptswillbeissuedunderasubscriptionreceiptagreement.ThissectiondescribesthegeneraltermsthatwillapplytoanySubscriptionReceiptsthatwemayofferpursuanttothisProspectus.

TheapplicableProspectusSupplementwillincludedetailsofthesubscriptionreceiptagreementcoveringtheSubscriptionReceiptsbeingoffered.WewillfileacopyofthesubscriptionreceiptagreementrelatingtoanOfferingwithsecuritiesregulatoryauthoritiesinCanadaandtheUnitedStatesafterwehaveenteredintoit.ThespecifictermsoftheSubscriptionReceipts,andtheextenttowhichthegeneraltermsdescribedinthissectionapplytothoseSubscriptionReceipts,willbesetforthintheapplicableProspectusSupplement.Thisdescriptionwillinclude,whereapplicable:

• thenumberofSubscriptionReceipts;

• thepriceatwhichtheSubscriptionReceiptswillbeofferedandwhetherthepriceispayableininstalments;

• conditionstotheexchangeofSubscriptionReceiptsintoCommonShares,DebtSecuritiesorWarrants,asthecasemaybe,andtheconsequencesofsuchconditionsnotbeingsatisfied;

• theproceduresfortheexchangeoftheSubscriptionReceiptsintoCommonShares,DebtSecuritiesorWarrants;

• thenumberofCommonSharesorWarrantsthatmaybeexchangeduponexerciseofeachSubscriptionReceipt;

• the aggregate principal amount, currency or currencies, denominations and terms of the series of Debt Securities that may be exchanged uponexerciseoftheSubscriptionReceipts;

• the designation and terms of any other Securities with which the Subscription Receipts will be offered, if any, and thenumber of SubscriptionReceiptsthatwillbeofferedwitheachSecurity;

• thedatesorperiodsduringwhichtheSubscriptionReceiptsmaybeexchangedintoCommonShares,DebtSecuritiesorWarrants;

• termsapplicabletothegrossornetproceedsfromthesaleoftheSubscriptionReceiptsplusanyinterestearnedthereon;

• materialUnitedStatesandCanadianfederalincometaxconsequencesofowningtheSubscriptionReceipts;

• anyotherrights,privileges,restrictionsandconditionsattachingtotheSubscriptionReceipts;and

• anyothermaterialtermsandconditionsoftheSubscriptionReceipts.

Subscription Receipt certificates will be exchangeable for newSubscription Receipt certificates of different denominations at the office indicated in theProspectusSupplement. Prior to theexchangeof their SubscriptionReceipts, holders of SubscriptionReceipts will not haveanyof therights of holders of theSecuritiessubjecttotheSubscriptionReceipts.

Underthesubscriptionreceiptagreement,aCanadianpurchaserofSubscriptionReceiptswillhaveacontractualrightofrescissionfollowingtheissuanceofCommon Shares, Debt Securities or Warrants, as the case may be, to such purchaser, entitling the purchaser to receive the amount paid for the SubscriptionReceiptsuponsurrenderoftheCommonShares,DebtSecuritiesorWarrants,asthecasemaybe,ifthisProspectus,theapplicableProspectusSupplement,andanyamendment thereto, contains a misrepresentation, provided such remedy for rescission is exercised within 180 days of the date the Subscription Receipts areissued.ThisrightofrescissiondoesnotextendtoholdersofSubscriptionReceiptswhoacquiresuchSubscriptionReceiptsfromaninitialpurchaser,ontheopenmarketorotherwise,ortoinitialpurchaserswhoacquireSubscriptionReceiptsintheUnitedStatesorotherjurisdictionsoutsideCanada.

Suchsubscriptionreceipt agreement will alsospecifythat wemayamendanysubscriptionreceipt agreement andtheSubscriptionReceipts, to cureanyambiguity,tocure,correctorsupplementanydefectiveor

55

inconsistentprovisionorinanyothermannerthatwillnotmateriallyandadverselyaffecttheinterestsoftheholder.

DESCRIPTIONOFUNITS

WemayissueUnitscomprisedofoneormoreoftheotherSecuritiesdescribedinthisProspectusinanycombination.EachUnitwillbe issuedsothattheholderoftheUnitisalsotheholderofeachoftheSecuritiesincludedintheUnit.Thus,theholderofaUnitwillhavetherightsandobligationsofaholderofeachincludedSecurity. Theunit agreement, if any,underwhichaUnitisissuedmayprovidethattheSecuritiesincludedintheUnitmaynotbeheldortransferredseparately,atanytimeoratanytimebeforeaspecifieddate.TheparticulartermsandprovisionsofUnitsofferedbyanyProspectusSupplement,andtheextenttowhichthegeneraltermsandprovisionsdescribedbelowmayapplythereto,willbedescribedintheProspectusSupplementfiledinrespectofsuchUnits.

CERTAINFEDERALINCOMETAXCONSIDERATIONS

TheapplicableProspectusSupplementwilldescribecertainCanadianandU.S.federalincometaxconsequencestoinvestorsdescribedthereinofacquiringanySecuritiesofferedthereunder.

LEGALMATTERS

CertainlegalmattersrelatedtotheSecuritiesofferedbythisProspectuswillbepassedupononourbehalfbyGowlingWLG(Canada)LLPwithrespecttoCanadianlegalmattersandbyDorsey&WhitneyLLPwithrespecttoU.S.legalmatters.

TRANSFERAGENTANDREGISTRAR

ThetransferagentandregistrarfortheCommonSharesisComputershareInvestorServicesInc.atitsprincipalofficesinthecitiesofToronto,OntarioandVancouver,BritishColumbia.

INTERESTOFEXPERTS

The technical information, mineral reserve and mineral resource estimates and economic estimates relating to Project 1, the Waterberg JVProject, theWaterbergExtensionProject andtheCompany'sotherpropertiesincludedorincorporatedbyreferenceinthisProspectushasbeenincludedorincorporatedbyreferenceinrelianceonthe report, valuation, statement or opinion of the persons described below. The following persons, firms and companies are named ashavingpreparedorcertifiedareport,valuation,statementoropinioninthisProspectus,eitherdirectlyorinadocumentincorporatedbyreference.

56

Name Description

CharlesMuller(B.Sc.(Hons)Geology)Pri.Sci.Nat.,CJMConsulting,SouthAfrica,(Pty)Ltd.

Co-authoredtheProject1Report;authoredthetechnicalreportentitled"TechnicalReportonProject3ResourceCutEstimationoftheWesternBushveldJointVenture(WBJV)LocatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica"datedAugust31,2010;andauthoredtheApril2016WaterbergReport.

GertRoets(B.Eng.Mining),Pr.Eng.(ECSA),ofDRAProjectsSA(Pty)Ltd.

Co-authoredtheProject1Report.

GordonCunninghamB.Eng.(Chemical),Pr.Eng.(ECSA)ofTurnberryProjects(Pty)Ltd.

Co-authoredtheProject1Report.

R.MichaelJonesP.Eng.,PlatinumGroupMetalsLtd.

ThePresidentandChiefExecutiveOfficeroftheCompany.Thenon-independentqualifiedpersonforallscientificandtechnicalinformationincludedorincorporatedbyreferencehereinthatisnotattributedtooneoftheabove-namedpersons.

Noneoftheexpertsnamedintheforegoingsectionheld,atthetimetheypreparedorcertifiedsuchstatement,report,opinionorvaluation,receivedaftersuchtimeorwillreceiveanyregisteredorbeneficialinterest,directorindirect,inanysecuritiesorotherpropertyoftheCompanyoroneoftheCompany'sassociatesoraffiliatesotherthanR.MichaelJones,thePresidentandChiefExecutiveOfficeroftheCompany,whoowns272,920CommonSharesrepresenting0.3%oftheissuedandoutstandingCommonSharesasofthedateofthisProspectus.

Except as otherwise stated above, noneof the aforementioned persons, andthe directors, officers, employees andpartners, as applicable, of eachof theaforementionedpersonsreceivedorwillreceiveadirectorindirectinterestinanypropertyoftheCompanyoranyassociateoraffiliateoftheCompany.

Except as otherwise stated above, none of the aforementioned persons, nor any director, officer, employee, consultant or partner, as applicable, of theaforementioned persons is currently expected to be elected, appointed or employed as a director, officer or employee of the Company or of any associate oraffiliateoftheCompany.

INDEPENDENTAUDITOR

Ourauditors,PricewaterhouseCoopersLLP,CharteredProfessionalAccountants,ofVancouver,BritishColumbia,reportthattheyareindependentfromuswithin the meaning of the Code of Professional Conduct of Chartered Professional Accountants of British Columbia, Canada, and within the meaning of theUnited States Securities Act of 1933 , as amended and the applicable rules and regulations thereunder adopted by the SEC. PricewaterhouseCoopers LLP isregisteredwiththePublicCompanyAccountingOversightBoard.

ENFORCEABILITYOFCIVILLIABILITIES

WeareacompanyorganizedandexistingundertheBusinessCorporationsAct(BritishColumbia).Amajorityofourdirectorsandofficers,andsomeoralloftheexpertsnamedinthisProspectus,areresidentsofCanadaorotherwiseresideoutsidetheUnitedStates,andallorasubstantialportionoftheirassets,andasubstantial portion of our assets, are located outside the United States. We have appointed an agent for service of process in theUnited States, but it may bedifficultforholdersofSecuritieswhoresideintheUnitedStatestoeffectservicewithintheUnitedStatesuponthosedirectors,officersandexpertswhoarenotresidentsoftheUnitedStates.ItmayalsobedifficultforholdersofSecuritieswhoresideintheUnitedStatestorealizeintheUnitedStatesuponjudgmentsofcourtsoftheUnitedStatespredicateduponourcivilliabilityandthecivilliabilityofourdirectors,officersandexpertsundertheUnitedStatesfederalsecuritieslaws. A final judgment for a liquidated sum in favour of a private litigant granted by a United States court and predicated solely upon civil liability underUnited States federal securities laws would, subject to certain exceptions identified in the law of individual provinces and territories of Canada, likely beenforceableinCanadaiftheUnitedStatescourt inwhichthejudgmentwasobtainedhadabasisforjurisdictioninthematter thatwouldberecognizedbythedomesticCanadiancourtforthesamepurposes.ThereisasignificantriskthatagivenCanadiancourtmaynothavejurisdictionormaydeclinejurisdictionoveraclaimbasedsolelyuponUnitedStatesfederalsecuritieslawonapplicationoftheconflictoflawsprinciplesoftheprovinceorterritoryinCanadainwhichtheclaimisbrought.

57

PARTIIINFORMATIONNOTREQUIREDTOBEDELIVEREDTO

OFFEREESORPURCHASERS

IndemnificationofDirectorsandOfficers.

Section160oftheBusinessCorporationsAct(BritishColumbia)("BCBCA")providesthatacompanymaydooneorbothofthefollowing:

(a) indemnify an eligible party against all eligible penalties, which are judgments, penalties or fines awarded or imposed in, or amounts paid insettlementof,aneligibleproceeding,towhichtheeligiblepartyisormaybeliable;and/or

(b) afterthefinaldispositionofaneligibleproceeding,paytheexpenses(whichincludescosts,chargesandexpenses,includinglegalandotherfees,butexcludes judgments, penalties, fines or amounts paid in settlement of a proceeding) actually and reasonably incurred by an eligible party inrespectofthatproceeding.

However, after thefinaldispositionofaneligibleproceeding,acompanymustpaytheexpensesactuallyandreasonablyincurredbyaneligiblepartyinrespectofthatproceedingiftheeligiblepartyhasnotbeenreimbursedforthoseexpenses,andiswhollysuccessful,onthemeritsorotherwise,orissubstantiallysuccessful on the merits, in the outcome of the proceeding. TheBCBCAalso provides that a company may pay, as they are incurred in advance of the finaldispositionofaneligibleproceeding,theexpenses,actuallyandreasonablyincurredbyaneligiblepartyinrespectofthatproceeding.However,acompanymustnot make the payments referred to immediately above unless the company first receives from the eligible party a written undertaking that, if it is ultimatelydeterminedthatthepaymentofexpensesisprohibitedundertheBCBCA,theeligiblepartywillrepaytheamountsadvanced.

ForthepurposesoftheBCBCA,an"eligibleparty",inrelationtoacompany,meansanindividualwho:

(a) isorwasadirectororofficerofthecompany;

(b) isorwasadirectororofficerofanothercorporationatatimewhenthecorporationisorwasanaffiliateofthecompany,orattherequestofthecompany;or

(c) attherequestofthecompany,isorwas,orholdsorheldapositionequivalenttothatof,adirectororofficerofapartnership,trust,jointventureorotherunincorporatedentity,

andincludes,withsomeexceptions,theheirsandpersonalorotherlegalrepresentativesofthatindividual.

An"eligibleproceeding"undertheBCBCAisaproceedinginwhichaneligiblepartyoranyoftheheirsandpersonalorotherlegalrepresentativesoftheeligibleparty,byreasonoftheeligiblepartybeingorhavingbeenadirectororofficerof,orholdingorhavingheldapositionequivalenttothatofadirectororofficerof,thecompanyoranassociatedcorporation,isormaybejoinedasaparty,orisormaybeliablefororinrespectofajudgment,penaltyorfinein,orexpensesrelatedto,theproceeding.A"proceeding"includesanylegalproceedingorinvestigativeaction,whethercurrent,threatened,pendingorcompleted.

Notwithstandingtheforegoing,theBCBCAprohibitsacompanyfromindemnifyinganeligiblepartyorpayingtheexpensesofaneligiblepartyifanyofthefollowingcircumstancesapply:

(a) iftheindemnityorpaymentismadeunderanearlieragreementtoindemnifyorpayexpensesand,atthetimesuchagreementtoindemnifyorpayexpenseswasmade,thecompanywasprohibitedfromgivingtheindemnityorpayingtheexpensesbyitsmemorandumorarticles;

(b) iftheindemnityorpaymentismadeotherwisethanunderanearlieragreementtoindemnifyorpayexpensesand,atthetimethattheindemnityorpaymentismade,thecompanyisprohibitedfromgivingtheindemnityorpayingtheexpensesbyitsmemorandumorarticles;

(c) if,inrelationtothesubjectmatteroftheeligibleproceeding,theeligiblepartydidnotacthonestlyandingoodfaithwithaviewtothebestinterestsofthecompanyortheassociatedcorporation,asthecasemaybe;or

II-1

(d) inthecaseofaneligibleproceedingotherthanacivilproceeding,iftheeligiblepartydidnothavereasonablegroundsforbelievingthattheeligibleparty'sconductinrespectofwhichtheproceedingwasbroughtwaslawful.

Additionally,ifaneligibleproceedingisbroughtagainstaneligiblepartybyoronbehalfofthecompanyoranassociatedcorporation,thecompanymustnotindemnifytheeligiblepartyorpayoradvancetheexpensesoftheeligiblepartyinrespectoftheproceeding.

Whetherornotpaymentofexpensesorindemnificationhasbeensought,authorizedordeclinedundertheBCBCA,section164oftheBCBCAprovidesthat,ontheapplicationofacompanyoraneligibleparty,theSupremeCourtofBritishColumbiamaydooneormoreofthefollowing:

(a) orderacompanytoindemnifyaneligiblepartyagainstanyliabilitiesincurredbytheeligiblepartyinrespectofaneligibleproceeding;

(b) orderacompanytopaysomeoralloftheexpensesincurredbyaneligiblepartyinrespectofaneligibleproceeding;

(c) ordertheenforcementof,oranypaymentunder,anagreementofindemnificationenteredintobyacompany;

(d) orderacompanytopaysomeoralloftheexpensesactuallyandreasonablyincurredbyanypersoninobtaininganorderundersection164oftheBCBCA;or

(e) makeanyotherorderthecourtconsidersappropriate.

Section165oftheBCBCAprovidesthatacompanymaypurchaseandmaintaininsuranceforthebenefitofaneligiblepartyortheheirsandpersonalorotherlegalrepresentativesoftheeligiblepartyagainstanyliabilitythatmaybeincurredbyreasonoftheeligiblepartybeingorhavingbeenadirectororofficerof,orholdingorhavingheldapositionequivalenttothatofadirectororofficerof,thecompanyoranassociatedcorporation.

TheRegistrant'sarticlesprovidethattheRegistrantmust,subjecttotheBCBCA,indemnifyadirector,formerdirector,alternatedirector,officerorformerofficeroftheRegistrantorofanyaffiliateoftheRegistrantandhisorherheirsandlegalpersonalrepresentativesagainstalleligiblepenaltiestowhichsuchpersonisormaybeliable,andtheRegistrantmust,afterthefinaldispositionofaneligibleproceeding,paytheexpensesactuallyandreasonablyincurredbysuchpersoninrespectofthatproceeding.Eachdirector,alternatedirectorandofficeroftheRegistrantoranyaffiliateoftheRegistrantisdeemedtohavecontractedwiththeRegistrantontheaboveterms.

TheRegistrant'sarticlesfurtherprovidethattheRegistrantmay,subjecttoanyrestrictionsintheBCBCA,indemnifyanyotherpersonandthatthefailureofadirector,alternatedirectororofficeroftheRegistranttocomplywiththeBCBCAortheRegistrant'sarticlesdoesnotinvalidateanyindemnitytowhichheorsheisentitledundertheRegistrant'sarticles.

The Registrant is authorized by its articles to purchase and maintain insurance for the benefit of any person (or his or her heirs or legal personalrepresentatives)including,butnotlimitedto,anycurrentorformerdirectors,alternatedirectors,officers,employeesoragentsoftheRegistrantoranyaffiliateoftheRegistrant.

TheRegistrantmaintainsdirectors'andofficers'liabilityinsurancecoveragethroughapolicycoveringtheRegistrantanditssubsidiaries,whichhasanannualpolicy limit of CAN$20,000,000, subject to a corporate retention (i.e. deductible) of up to CAN$250,000 per claim. This insurance provides coverage forindemnitypaymentsmadebytheRegistranttoitsdirectorsandofficersasrequiredorpermittedbylawforlosses,includinglegalcosts,incurredbydirectorsandofficersintheircapacityassuch.ThispolicyalsoprovidescoveragedirectlytoindividualdirectorsandofficersiftheyarenotindemnifiedbytheRegistrant.Theinsurancecoveragefor directors andofficers has customaryexclusions, including, but not limitedto, actsdeterminedtobeuninsurable under laws, or conductarising out of, based upon, or attributable to, any remuneration, profit or other advantage to which the insured was not entitled to, or deliberate fraudulentorcriminalactbytheinsured.

InsofarasindemnificationforliabilitiesarisingundertheSecuritiesActof1933maybepermittedtodirectors,officersorpersonscontrollingtheRegistrantpursuant to the foregoingprovisions, the Registrant has beeninformedthat in the opinionof the Securities andExchangeCommissionsuchindemnification isagainstpublicpolicyasexpressedintheSecuritiesActof1933andisthereforeunenforceable.

II-2

EXHIBITS

II-3

4.1 AnnualinformationformoftheRegistrantdatedNovember24,2015forthefinancialyearendedAugust31,2015(incorporatedbyreferencetoExhibit99.1totheRegistrant'sAnnualReportonForm40-FfiledwiththeCommissiononNovember25,2015).

4.2 ManagementinformationcircularoftheRegistrantdatedJanuary4,2016preparedforthepurposesoftheannualgeneralmeetingoftheRegistrantheldonFebruary26,2016atwhicheachoftheRegistrant'sdirectorswasre-electedandtheshareholdersapprovedallothermatterssubmittedtoashareholdervote(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJanuary15,2016).

4.3 AuditedconsolidatedfinancialstatementsoftheRegistrantasatandforthefinancialyearsendedAugust31,2015and2014,togetherwiththenotestheretoandtheauditor'sreportsthereon(incorporatedbyreferencetoExhibit99.2totheRegistrant'sAnnualReportonForm40-FfiledwiththeCommissiononNovember25,2015).

4.4 Management'sdiscussionandanalysisoftheRegistrantforthefinancialyearendedAugust31,2015(incorporatedbyreferencetoExhibit99.3totheRegistrant'sAnnualReportonForm40-FfiledwiththeCommissiononNovember25,2015).

4.5 UnauditedinterimcondensedconsolidatedfinancialstatementsoftheRegistrantforthethreemonthsendedNovember30,2015,togetherwiththenotesthereto(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJanuary15,2016).

4.6 Management'sdiscussionandanalysisoftheRegistrantforthethreemonthsendedNovember30,2015(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJanuary15,2016).

4.7 UnauditedinterimcondensedconsolidatedfinancialstatementsoftheRegistrantforthethreeandninemonthsendedMay31,2016,togetherwiththenotesthereto(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJuly15,2016).

4.8 Management'sdiscussionandanalysisoftheRegistrantfortheninemonthsendedMay31,2016(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJuly15,2016).

4.9 TechnicalReportentitled"MineralResourceUpdateontheWaterbergProjectLocatedintheBushveldIgneousComplex,SouthAfrica"datedApril29,2016(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononMay2,2016).

4.10 TechnicalReportentitled"AnIndependentTechnicalReportontheMaseveProject(WBJVProjectareas1and1A)locatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica"datedAugust28,2015(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononSeptember1,2015).

4.11 MaterialchangereportoftheRegistrantfiledNovember3,2015announcingthatithadenteredintoasecondliencreditagreementwithLibertyMetals&MiningHoldings,LLC,asubsidiaryofLibertyMutualInsurance,foraUS$40millionsecuredoperatingloanfacility(incorporatedbyreferencetoExhibit99.3totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononNovember3,2015).

4.12 MaterialchangereportoftheRegistrantfiledNovember23,2015announcingthatithadsimultaneouslydrawndown,infull,ontheUS$40millionsecuredoperatingloanfacilitywithLibertyMetals&MiningHoldings,LLC,andtheUS$40millionsecuredloanfacilitywithSprottResourceLendingPartnership,amongotherlenders(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononNovember23,2015).

II-4

4.13 MaterialchangereportoftheRegistrantfiledJanuary12,2016announcingthatthebudgetfundedbyJapanOil,GasandMetalsNationalCorporation,theRegistrant'sjointventurepartner,fortheWaterbergProjecthadbeenexpandedfromUS$8.0milliontoUS$8.5millionfortheannualperiodendingMarch31,2016(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJanuary12,2016).

4.14 MaterialchangereportoftheRegistrantfiledJanuary26,2016announcingtheconsolidationofitscommonsharesonthebasisofonenewcommonsharefortenoldcommonshareseffectiveJanuary26,2016(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJanuary26,2016).

4.15 MaterialchangereportoftheRegistrantfiledFebruary9,2016announcingthesuccessfulcompletionofhotcommissioningatProject1(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononFebruary9,2016).

4.16 MaterialchangereportoftheRegistrantfiledMarch17,2016announcingthatover90%ofrecentinfilldrillingontheWaterbergProjecthadsuccessfullyintersectedthe"T"and"F"targetedlayers(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononMarch17,2016).

4.17 MaterialchangereportoftheRegistrantfiledApril19,2016announcinganincreaseintheresourceestimateforplatinum,palladium,rhodiumandgoldattheWaterbergJVProject(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononApril19,2016).

4.18 MaterialchangereportoftheRegistrantfiledMay5,2016announcingthemodificationagreements,eachdatedMay3,2016,totheUS$40millionsecuredloanfacilitieswitheachofSprottResourceLendingPartnership,amongotherlenders,andLibertyMetals&MiningHoldings,LLC(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononMay5,2016).

4.19 MaterialchangereportoftheRegistrantfiledMay5,2016announcingthattheRegistranthadenteredintoanagreementwithasyndicateofunderwriterstobuy,onaboughtdealbasis,11,000,000oftheRegistrant'scommonshares,atapriceofUS$3.00percommonshare(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononMay6,2016).

4.20 MaterialchangereportoftheRegistrantfiledMay26,2016announcingtheclosingoftheanagreementwithasyndicateofunderwriterstobuy,onaboughtdealbasis,11,000,000oftheRegistrant'scommonshares,atapriceofUS$3.00percommonshare(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononMay26,2016).

4.21 MaterialchangereportoftheRegistrantfiledJune1,2016announcingnewplatinum,palladiumandgoldassayresultsforrecentdrillinterceptscompletedontheWaterbergProject(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJune1,2016).

4.22 MaterialchangereportoftheRegistrantfiledJuly14,2016announcingfinancialresultsandhighlightsfortheninemonthsendedMay31,2016(incorporatedbyreferencetoExhibit99.6totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJuly15,2016).

4.23 MaterialchangereportoftheRegistrantfiledSeptember20,2016announcingupdatesonProject1andtheWaterbergProjectandthemodificationagreements,eachdatedSeptember19,2016,totheUS$40millionsecuredloanfacilitieswitheachofSprottResourceLendingPartnership,amongotherlenders,andLibertyMetals&MiningHoldings,LLC(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononSeptember20,2016).

II-5

4.24 MaterialchangereportoftheRegistrantfiledOctober12,2016announcingthatSprottResourceLendingPartnership,amongotherlenders,haveprovidedaUS$5millionsecondadvancetotheRegistrantpursuanttoanamendedandrestatedcreditagreementdatedOctober11,2016(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononOctober12,2016).

5.1 ConsentofPricewaterhouseCoopersLLP.5.2 ConsentofGordonCunningham.5.3 ConsentofR.MichaelJones.5.4 ConsentofGertRoets.5.5 ConsentofCharlesMuller.6.1 PowersofAttorney(includedonthesignaturepageoftheinitialfilingoftheRegistrationStatement).7.1 FormofIndenturerelatingtosecuritiestowhichthisRegistrationStatementrelates(ifDebtSecuritiesareofferedpursuanttothisRegistration

Statement,theRegistrantwillfilewiththeCommissionatrustee'sStatementofEligibilityonFormT-1).

PARTIII

UNDERTAKINGANDCONSENTTOSERVICEOFPROCESS

Item1.Undertaking.

TheRegistrantundertakestomakeavailable,inpersonorbytelephone,representativestorespondtoinquiriesmadebytheCommissionstaff,andtofurnishpromptly,whenrequestedtodosobytheCommissionstaff,informationrelatingtothesecuritiesregisteredpursuanttothisFormF-10ortotransactionsinsaidsecurities.

Item2.ConsenttoServiceofProcess.

(a) TheRegistranthasfiledwiththeCommissionawrittenirrevocableconsentandpowerofattorneyonFormF-X.

(b) Anychange to the nameor address of the Registrant's agent for service shall be communicated promptly to the Commission by amendment toFormF-XreferencingthefilenumberofthisRegistrationStatement.

III-1

SIGNATURES

PursuanttotherequirementsoftheSecuritiesActof1933,theRegistrantcertifiesthatithasreasonablegroundstobelievethatitmeetsalloftherequirementsforfilingonFormF-10andhasdulycausedthisRegistrationStatementtobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized,intheCityofVancouver,BritishColumbia,Canada,onthis14thdayofOctober,2016.

PursuanttotherequirementsoftheSecuritiesActof1933,thisRegistrationStatementhasbeensignedbythefollowingpersonsinthecapacitiesandonthedatesindicated:

III-2

PLATINUMGROUPMETALSLTD.

By:/s/R.MICHAELJONES

Name: R.MichaelJones Title: President,ChiefExecutiveOfficerandDirector

Signature Title Date /s/R.MICHAELJONES

R.MichaelJones

President,ChiefExecutiveOfficerandDirector(principalexecutiveofficer)

October14,2016

/s/FRANKHALLAM

FrankHallam

ChiefFinancialOfficer,SecretaryandDirector(principalfinancialandaccountingofficer)

October14,2016

*

EricCarlson

Director

October14,2016

*

IainMcLean

Director

October14,2016

*

TimothyMarlow

Director

October14,2016

*

BarryW.Smee

Director

October14,2016

*

DianaWalters

DirectorandAuthorizedRepresentativeintheUnitedStates

October14,2016

*By:/s/FRANKHALLAM

Name: FrankHallam Title: Attorney-in-Fact

EXHIBITINDEX

4.1 AnnualinformationformoftheRegistrantdatedNovember24,2015forthefinancialyearendedAugust31,2015(incorporatedbyreferencetoExhibit99.1totheRegistrant'sAnnualReportonForm40-FfiledwiththeCommissiononNovember25,2015).

4.2 ManagementinformationcircularoftheRegistrantdatedJanuary4,2016preparedforthepurposesoftheannualgeneralmeetingoftheRegistrantheldonFebruary26,2016atwhicheachoftheRegistrant'sdirectorswasre-electedandtheshareholdersapprovedallothermatterssubmittedtoashareholdervote(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJanuary15,2016).

4.3 AuditedconsolidatedfinancialstatementsoftheRegistrantasatandforthefinancialyearsendedAugust31,2015and2014,togetherwiththenotestheretoandtheauditor'sreportsthereon(incorporatedbyreferencetoExhibit99.2totheRegistrant'sAnnualReportonForm40-FfiledwiththeCommissiononNovember25,2015).

4.4 Management'sdiscussionandanalysisoftheRegistrantforthefinancialyearendedAugust31,2015(incorporatedbyreferencetoExhibit99.3totheRegistrant'sAnnualReportonForm40-FfiledwiththeCommissiononNovember25,2015).

4.5 UnauditedinterimcondensedconsolidatedfinancialstatementsoftheRegistrantforthethreemonthsendedNovember30,2015,togetherwiththenotesthereto(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJanuary15,2016).

4.6 Management'sdiscussionandanalysisoftheRegistrantforthethreemonthsendedNovember30,2015(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJanuary15,2016).

4.7 UnauditedinterimcondensedconsolidatedfinancialstatementsoftheRegistrantforthethreeandninemonthsendedMay31,2016,togetherwiththenotesthereto(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJuly15,2016).

4.8 Management'sdiscussionandanalysisoftheRegistrantfortheninemonthsendedMay31,2016(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJuly15,2016).

4.9 TechnicalReportentitled"MineralResourceUpdateontheWaterbergProjectLocatedintheBushveldIgneousComplex,SouthAfrica"datedApril29,2016(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononMay2,2016).

4.10 TechnicalReportentitled"AnIndependentTechnicalReportontheMaseveProject(WBJVProjectareas1and1A)locatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica"datedAugust28,2015(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononSeptember1,2015).

4.11 MaterialchangereportoftheRegistrantfiledNovember3,2015announcingthatithadenteredintoasecondliencreditagreementwithLibertyMetals&MiningHoldings,LLC,asubsidiaryofLibertyMutualInsurance,foraUS$40millionsecuredoperatingloanfacility(incorporatedbyreferencetoExhibit99.3totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononNovember3,2015).

4.12 MaterialchangereportoftheRegistrantfiledNovember23,2015announcingthatithadsimultaneouslydrawndown,infull,ontheUS$40millionsecuredoperatingloanfacilitywithLibertyMetals&MiningHoldings,LLC,andtheUS$40millionsecuredloanfacilitywithSprottResourceLendingPartnership,amongotherlenders(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononNovember23,2015).

4.13 MaterialchangereportoftheRegistrantfiledJanuary12,2016announcingthatthebudgetfundedbyJapanOil,GasandMetalsNationalCorporation,theRegistrant'sjointventurepartner,fortheWaterbergProjecthadbeenexpandedfromUS$8.0milliontoUS$8.5millionfortheannualperiodendingMarch31,2016(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJanuary12,2016).

4.14 MaterialchangereportoftheRegistrantfiledJanuary26,2016announcingtheconsolidationofitscommonsharesonthebasisofonenewcommonsharefortenoldcommonshareseffectiveJanuary26,2016(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJanuary26,2016).

4.15 MaterialchangereportoftheRegistrantfiledFebruary9,2016announcingthesuccessfulcompletionofhotcommissioningatProject1(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononFebruary9,2016).

4.16 MaterialchangereportoftheRegistrantfiledMarch17,2016announcingthatover90%ofrecentinfilldrillingontheWaterbergProjecthadsuccessfullyintersectedthe"T"and"F"targetedlayers(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononMarch17,2016).

4.17 MaterialchangereportoftheRegistrantfiledApril19,2016announcinganincreaseintheresourceestimateforplatinum,palladium,rhodiumandgoldattheWaterbergJVProject(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononApril19,2016).

4.18 MaterialchangereportoftheRegistrantfiledMay5,2016announcingthemodificationagreements,eachdatedMay3,2016,totheUS$40millionsecuredloanfacilitieswitheachofSprottResourceLendingPartnership,amongotherlenders,andLibertyMetals&MiningHoldings,LLC(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononMay5,2016).

4.19 MaterialchangereportoftheRegistrantfiledMay5,2016announcingthattheRegistranthadenteredintoanagreementwithasyndicateofunderwriterstobuy,onaboughtdealbasis,11,000,000oftheRegistrant'scommonshares,atapriceofUS$3.00percommonshare(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononMay6,2016).

4.20 MaterialchangereportoftheRegistrantfiledMay26,2016announcingtheclosingoftheanagreementwithasyndicateofunderwriterstobuy,onaboughtdealbasis,11,000,000oftheRegistrant'scommonshares,atapriceofUS$3.00percommonshare(incorporatedbyreferencetoExhibit99.1totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononMay26,2016).

4.21 MaterialchangereportoftheRegistrantfiledJune1,2016announcingnewplatinum,palladiumandgoldassayresultsforrecentdrillinterceptscompletedontheWaterbergProject(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJune1,2016).

4.22 MaterialchangereportoftheRegistrantfiledJuly14,2016announcingfinancialresultsandhighlightsfortheninemonthsendedMay31,2016(incorporatedbyreferencetoExhibit99.6totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononJuly15,2016).

4.23 MaterialchangereportoftheRegistrantfiledSeptember20,2016announcingupdatesonProject1andtheWaterbergProjectandthemodificationagreements,eachdatedSeptember19,2016,totheUS$40millionsecuredloanfacilitieswitheachofSprottResourceLendingPartnership,amongotherlenders,andLibertyMetals&MiningHoldings,LLC(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononSeptember20,2016).

4.24 MaterialchangereportoftheRegistrantfiledOctober12,2016announcingthatSprottResourceLendingPartnership,amongotherlenders,haveprovidedaUS$5millionsecondadvancetotheRegistrantpursuanttoanamendedandrestatedcreditagreementdatedOctober11,2016(incorporatedbyreferencetoExhibit99.2totheRegistrant'sCurrentReportonForm6-KfurnishedtotheCommissiononOctober12,2016).

5.1 ConsentofPricewaterhouseCoopersLLP.5.2 ConsentofGordonCunningham.5.3 ConsentofR.MichaelJones.5.4 ConsentofGertRoets.5.5 ConsentofCharlesMuller.6.1 PowersofAttorney(includedonthesignaturepageoftheinitialfilingoftheRegistrationStatement).7.1 FormofIndenturerelatingtosecuritiestowhichthisRegistrationStatementrelates(ifDebtSecuritiesareofferedpursuanttothisRegistration

Statement,theRegistrantwillfilewiththeCommissionatrustee'sStatementofEligibilityonFormT-1).

QuickLinks

PARTIINFORMATIONREQUIREDTOBEDELIVEREDTOOFFEREESORPURCHASERSTABLEOFCONTENTSCAUTIONARYNOTETOUNITEDSTATESINVESTORSRESERVEANDRESOURCEDISCLOSURECAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTSCURRENCYPRESENTATIONANDEXCHANGERATEINFORMATIONNOTICEREGARDINGNON-IFRSMEASURESDOCUMENTSINCORPORATEDBYREFERENCEADDITIONALINFORMATIONDOCUMENTSFILEDASPARTOFTHEREGISTRATIONSTATEMENTBUSINESSOFTHECOMPANYFigure1:DrillholelocationandInterpretedGeologyoftheWaterbergProjectTable1FZoneMineralResourceDetailsTZoneWaterbergTotalRISKFACTORSUSEOFPROCEEDSEARNINGSCOVERAGERATIOCONSOLIDATEDCAPITALIZATIONDESCRIPTIONOFEXISTINGINDEBTEDNESSPLANOFDISTRIBUTIONPRIORSALESPRICERANGEANDTRADINGVOLUMEDIVIDENDPOLICYDESCRIPTIONOFCOMMONSHARESDESCRIPTIONOFDEBTSECURITIESDESCRIPTIONOFWARRANTSDESCRIPTIONOFSUBSCRIPTIONRECEIPTSDESCRIPTIONOFUNITSCERTAINFEDERALINCOMETAXCONSIDERATIONSLEGALMATTERSTRANSFERAGENTANDREGISTRARINTERESTOFEXPERTSINDEPENDENTAUDITORENFORCEABILITYOFCIVILLIABILITIESPARTIIINFORMATIONNOTREQUIREDTOBEDELIVEREDTOOFFEREESORPURCHASERSEXHIBITSPARTIIIUNDERTAKINGANDCONSENTTOSERVICEOFPROCESS

Item1.Undertaking.Item2.ConsenttoServiceofProcess.

SIGNATURESEXHIBITINDEX

QuickLinks--Clickheretorapidlynavigatethroughthisdocument

Exhibit5.1

CONSENTOFINDEPENDENTAUDITOR

We hereby consent to the incorporation by reference in this Registration Statement on Form F-10 (Amendment No. 1) of Platinum Group Metals Ltd.("theCompany")ofourauditor'sreportdatedNovember24,2015relatingtotheconsolidatedstatementsoffinancialpositionoftheCompanyasatAugust31,2015andAugust31,2014andtheconsolidatedstatementsoflossandcomprehensiveloss,changesinequity,andcashflowsfortheyearsendedAugust31,2015andAugust31,2014,whichappearintheCompany'sAnnualReportonForm40-FfortheyearendedAugust31,2015.

/s/PRICEWATERHOUSECOOPERSLLP

CharteredProfessionalAccountantsVancouver,BritishColumbiaOctober14,2016

QuickLinks

Exhibit5.1

CONSENTOFINDEPENDENTAUDITOR


Exhibit5.2

CONSENTOFEXPERT

Theundersigned,onhisownbehalfandonbehalfofTurnberryProjects(Pty)Ltd.,herebyconsentstothereferencesto,theinformationderivedfrom,andtheincorporationbyreferenceofthereporttitled"AnIndependentTechnicalReportontheMaseveProject(WBJVProjectareas1and1A)locatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica",datedAugust28,2015andtothereferences,asapplicable,totheundersigned'snameandtoTurnberryProjects (Pty) Ltd. included in or incorporated by reference in the Registration Statement on Form F-10 being filed by Platinum Group Metals Ltd., datedOctober 5, 2016, and any amendments thereto and any registration statements filed pursuant to Rule 429 under the United States Securities Act of 1933,asamended.

/s/GORDONCUNNINGHAM

GordonCunninghamTurnberryProjects(Pty)Ltd.Date:October14,2016

QuickLinks

Exhibit5.2

CONSENTOFEXPERT


Exhibit5.3

CONSENTOFEXPERT

Theundersignedherebyconsentstoallreferencestohimasanon-independentqualifiedpersonincludedinorincorporatedbyreference intheRegistrationStatement onFormF-10beingfiledbyPlatinumGroupMetals Ltd., datedOctober 5, 2016, andanyamendments thereto andanyregistration statements filedpursuanttoRule429undertheUnitedStatesSecuritiesActof1933,asamended.

/s/R.MICHAELJONES

R.MichaelJonesDate:October14,2016

QuickLinks

Exhibit5.3

CONSENTOFEXPERT


Exhibit5.4

CONSENTOFEXPERT

Theundersigned,onhisownbehalfandonbehalfofDRAProjectsSA(Pty)Ltd.,herebyconsentstothereferencesto,theinformationderivedfrom,andtheincorporationbyreferenceofthereporttitled"AnIndependentTechnicalReportontheMaseveProject(WBJVProjectareas1and1A)locatedontheWesternLimbof the Bushveld Igneous Complex, South Africa", dated August 28, 2015 and to the references, as applicable, to the undersigned's name and to DRAProjects SA(Pty) Ltd. included in or incorporated by reference in the Registration Statement on FormF-10being filed by PlatinumGroupMetals Ltd., datedOctober 5, 2016, and any amendments thereto and any registration statements filed pursuant to Rule 429 under the United States Securities Act of 1933,asamended.

/s/GERTROETS

GertRoetsDRAProjectsSA(Pty)Ltd.Date:October14,2016

QuickLinks

Exhibit5.4

CONSENTOFEXPERT


Exhibit5.5

CONSENTOFEXPERT

Theundersigned,onhisownbehalfandonbehalfofCJMConsulting,SouthAfrica,(Pty)Ltd.,herebyconsentstothereferencesto,theinformationderivedfrom,andwhereapplicable,theincorporationbyreferenceof,thereportstitled(i)"AnIndependentTechnicalReportontheMaseveProject(WBJVProjectareas1and1A)locatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica",datedAugust28,2015,(ii)"TechnicalReportonProject3ResourceCutEstimationoftheWesternBushveldJointVenture(WBJV)LocatedontheWesternLimboftheBushveldIgneousComplex,SouthAfrica"datedAugust31,2010,and(iii) "Mineral ResourceUpdateontheWaterbergProject LocatedintheBushveldIgneousComplex, SouthAfrica"datedApril 29, 2016, aswell astothereferences,asapplicable,totheundersigned'snameandtoCJMConsulting,SouthAfrica,(Pty)Ltd.includedinorincorporatedbyreferenceintheRegistrationStatement onFormF-10beingfiledbyPlatinumGroupMetals Ltd., datedOctober 5,2016, andanyamendments thereto andanyregistrationstatements filedpursuanttoRule429undertheUnitedStatesSecuritiesActof1933,asamended.

/s/CHARLESMULLER

CharlesMullerCJMConsulting,SouthAfrica,(Pty)Ltd.Date:October14,2016

QuickLinks

Exhibit5.5

CONSENTOFEXPERT


TableofContents

Exhibit7.1

PLATINUMGROUPMETALSLTD.asIssuer

and

[]asTrustee

IndentureDatedasof[]

TableofContents

PlatinumGroupMetalsLtd.

ReconciliationandtiebetweenTrustIndentureActof1939andIndenture,datedasof[]

TrustIndentureActSection IndentureSection§310(a)(1) Section607

(a)(2) Section607(b) Section608

§312(c) Section701§314(a) Section703

(a)(4) Section904(c)(1) Section102(c)(2) Section102(e) Section102

§315(b) Section601§316(a)(lastsentence) Section101("Outstanding")

(a)(1)(A) Section502,Section512(a)(1)(B) Section513(b) Section508(c) Section104(e)

§317(a)(1) Section503(a)(2) Section504(b) Section903

§318(a) Section111

TableofContents

TABLEOFCONTENTS*

i

Page

ARTICLEONEDEFINITIONSANDOTHERPROVISIONSOFGENERALAPPLICATION

1

SECTION101.Definitions 1

SECTION102. ComplianceCertificatesandOpinions 7SECTION103. FormofDocumentsDeliveredtoTrustee 8SECTION104. ActsofHolders 8SECTION105. Notices,Etc.toTrusteeandCompany 9SECTION106. NoticetoHolders;Waiver 10SECTION107. EffectofHeadingsandTableofContents 10SECTION108. SuccessorsandAssigns 10SECTION109. SeparabilityClause 10SECTION110. BenefitsofIndenture 10SECTION111. GoverningLaw 10SECTION112. LegalHolidays 11SECTION113. AgentforService;SubmissiontoJurisdiction;WaiverofImmunities 11SECTION114. ConversionofCurrency 11SECTION115. CurrencyEquivalent 12SECTION116. NoRecourseAgainstOthers 12SECTION117. ConflictwithTrustIndentureAct 12

ARTICLETWOSECURITYFORMS

12

SECTION201.FormsGenerally 12

SECTION202. FormofTrustee'sCertificateofAuthentication 13SECTION203. SecuritiesIssuableinGlobalForm 13

ARTICLETHREETHESECURITIES

13

SECTION301.AmountUnlimited;IssuableinSeries 13

SECTION302. Denominations 16SECTION303. Execution,Authentication,DeliveryandDating 16SECTION304. TemporarySecurities 18SECTION305. Registration,RegistrationofTransferandExchange 19SECTION306. Mutilated,Destroyed,LostandStolenSecurities 22SECTION307. PaymentofPrincipal,PremiumandInterest;InterestRightsPreserved;OptionalInterestReset 23SECTION308. OptionalExtensionofStatedMaturity 25SECTION309. PersonsDeemedOwners 25SECTION310. Cancellation 26SECTION311. ComputationofInterest 26SECTION312. CurrencyandMannerofPaymentsinRespectofSecurities 26SECTION313. AppointmentandResignationofSuccessorExchangeRateAgent 29

ARTICLEFOURSATISFACTIONANDDISCHARGE

29

SECTION401.SatisfactionandDischargeofIndenture 29

SECTION402. ApplicationofTrustMoney 30

* Thistableofcontentsshallnot,foranypurpose,bedeemedtobeapartoftheIndenture.

TableofContents

ii

PageARTICLEFIVEREMEDIES 30

SECTION501.EventsofDefault 30

SECTION502. AccelerationofMaturity;RescissionandAnnulment 31SECTION503. CollectionofIndebtednessandSuitsforEnforcementbyTrustee 32SECTION504. TrusteeMayFileProofsofClaim 33SECTION505. TrusteeMayEnforceClaimsWithoutPossessionofSecurities 33SECTION506. ApplicationofMoneyCollected 33SECTION507. LimitationonSuits 34SECTION508. UnconditionalRightofHolderstoReceivePrincipal,PremiumandInterest 34SECTION509. RestorationofRightsandRemedies 34SECTION510. RightsandRemediesCumulative 34SECTION511. DelayorOmissionNotWaiver 34SECTION512. ControlbyHolders 35SECTION513. WaiverofPastDefaults 35SECTION514. WaiverofStayorExtensionLaws 35SECTION515. UndertakingforCosts 35

ARTICLESIXTHETRUSTEE

35

SECTION601.NoticeofDefaults 35

SECTION602. CertainRightsofTrustee 36SECTION603. TrusteeNotResponsibleforRecitalsorIssuanceofSecurities 36SECTION604. MayHoldSecurities 37SECTION605. MoneyHeldinTrust 37SECTION606. CompensationandReimbursement 37SECTION607. CorporateTrusteeRequired;Eligibility;ConflictingInterests 37SECTION608. ResignationandRemoval;AppointmentofSuccessor 38SECTION609. AcceptanceofAppointmentbySuccessor 39SECTION610. Merger,Conversion,ConsolidationorSuccessiontoBusiness 39SECTION611. AppointmentofAuthenticatingAgent 40

ARTICLESEVENHOLDERS'LISTSANDREPORTSBYTRUSTEEANDTHECOMPANY

41

SECTION701.DisclosureofNamesandAddressesofHolders 41

SECTION702. ReportsbyTrustee 41SECTION703. ReportsbytheCompany 41SECTION704. TheCompanytoFurnishTrusteeNamesandAddressesofHolders 42

ARTICLEEIGHTSUPPLEMENTALINDENTURES

42

SECTION801.SupplementalIndenturesWithoutConsentofHolders 42

SECTION802. SupplementalIndentureswithConsentofHolders 43SECTION803. ExecutionofSupplementalIndentures 44SECTION804. EffectofSupplementalIndentures 44SECTION805. ConformitywithTrustIndentureAct 44SECTION806. ReferenceinSecuritiestoSupplementalIndentures 44SECTION807. NoticeofSupplementalIndentures 44

ARTICLENINECOVENANTS

44

SECTION901.PaymentofPrincipal,Premium,ifany,andInterest 44

SECTION902. MaintenanceofOfficeorAgency 44

TableofContents

iii

PageSECTION903. MoneyforSecuritiesPaymentstoBeHeldinTrust 45SECTION904. StatementastoCompliance 46SECTION905. PaymentofTaxesandOtherClaims 46SECTION906. MaintenanceofProperties 47SECTION907. CorporateExistence 47SECTION908. WaiverofCertainCovenants 47SECTION909. Consolidation,Amalgamation,MergerandSaleofAssets 47

ARTICLETENREDEMPTIONOFSECURITIES

48

SECTION1001.ApplicabilityofArticle 48

SECTION1002. ElectiontoRedeem;NoticetoTrustee 48SECTION1003. SelectionbyTrusteeofSecuritiestoBeRedeemed 48SECTION1004. NoticeofRedemption 48SECTION1005. DepositofRedemptionPrice 49SECTION1006. SecuritiesPayableonRedemptionDate 49SECTION1007. SecuritiesRedeemedinPart 50

ARTICLEELEVENSINKINGFUNDS

50


SECTION1102. SatisfactionofSinkingFundPaymentswithSecurities 50SECTION1103. RedemptionofSecuritiesforSinkingFund 50

ARTICLETWELVEREPAYMENTATOPTIONOFHOLDERS

51


SECTION1202. RepaymentofSecurities 51SECTION1203. ExerciseofOption 51SECTION1204. WhenSecuritiesPresentedforRepaymentBecomeDueandPayable 52SECTION1205. SecuritiesRepaidinPart 52

ARTICLETHIRTEENDEFEASANCEANDCOVENANTDEFEASANCE

52

SECTION1301.OptiontoEffectDefeasanceorCovenantDefeasance 52

SECTION1302. DefeasanceandDischarge 53SECTION1303. CovenantDefeasance 53SECTION1304. ConditionstoDefeasanceorCovenantDefeasance 53SECTION1305. DepositedMoneyandGovernmentObligationstoBeHeldinTrust;OtherMiscellaneous

Provisions 55SECTION1306. Reinstatement 55

ARTICLEFOURTEENMEETINGSOFHOLDERSOFSECURITIES

56

SECTION1401.PurposesforWhichMeetingsMayBeCalled 56

SECTION1402. Call,NoticeandPlaceofMeetings 56SECTION1403. PersonsEntitledtoVoteatMeetings 56SECTION1404. Quorum;Action 56SECTION1405. DeterminationofVotingRights;ConductandAdjournmentofMeetings 57SECTION1406. CountingVotesandRecordingActionofMeetings 58

TableofContents

ThisINDENTURE,datedasof[],betweenPlatinumGroupMetalsLtd.,acorporationdulyorganizedandexistingunderthelawsoftheProvince of British Columbia (herein called the "Company"), having its principal office at Bentall Tower 5, 550 Burrard Street, Suite 788, Vancouver, BritishColumbia,CanadaV6C2B5and[],a[]bankingcorporation,astrustee(hereincalledthe"Trustee").

RECITALS

TheCompanyhasdulyauthorizedtheexecutionanddeliveryofthisIndenturetoprovidefortheissuancefromtimetotimeofitsdebentures,notes,bondsorotherevidencesofindebtedness(hereincalledthe"Securities"),inanunlimitedaggregateprincipalamounttobeissuedfromtimetotimeinoneormoreseriesasinthisIndentureprovided.

ThisIndentureissubjecttotheprovisionsoftheTrustIndentureActof1939,asamended,thatarerequiredtobepartofthisIndentureandshall,totheextentapplicable,begovernedbysuchprovisions.

AllthingsnecessarytomakethisIndentureavalidagreementoftheCompanyinaccordancewithitsterms,havebeendone.

NOW,THEREFORE,THISINDENTUREWITNESSETH:

ForandinconsiderationofthepremisesandthepurchaseoftheSecuritiesbytheHoldersthereof,itismutuallycovenantedandagreed,fortheequalandproportionatebenefitofallHoldersoftheSecuritiesorofseriesthereof,asfollows:

ARTICLEONE

DEFINITIONSANDOTHERPROVISIONSOFGENERALAPPLICATION

SECTION101.Definitions.ForallpurposesofthisIndenture,exceptasotherwiseexpresslyprovidedorunlessthecontextotherwiserequires:

(1)thetermsdefinedinthisArticlehavethemeaningsassignedtotheminthisArticleandincludethepluralaswellasthesingular;

(2)unlessotherwisedefinedinthisIndentureorthecontextotherwiserequires,alltermsusedhereinwithoutdefinitionwhicharedefinedintheTrustIndentureAct,eitherdirectlyorbyreferencetherein,havethemeaningsassignedtothemtherein;

(3)thewords"herein,""hereof"and"hereunder"andotherwordsofsimilarimportrefertothisIndentureasawholeandnottoanyparticularArticle,Sectionorothersubdivision.

(4)referencesto"Article"or"Section"orothersubdivisionhereinarereferencestoanArticle,SectionorothersubdivisionoftheIndenture,unlessthecontextotherwiserequires.

Unlessthecontextotherwiserequires,thetermsdefinedinthisSection101shallforallpurposesofthisIndenturehavethemeaningshereinaftersetforth:

"Act,"whenusedwithrespecttoanyHolder,hasthemeaningspecifiedinSection104.

"Affiliate"ofanyspecifiedPersonmeansanyotherPersondirectlyorindirectlycontrollingorcontrolledbyorunderdirectorindirectcommoncontrolwithsuchspecifiedPerson.Forthepurposesofthisdefinition,"control"whenusedwithrespecttoanyspecifiedPersonmeansthepowertodirectthemanagementandpolicies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms "controlling" and"controlled"havemeaningscorrelativetotheforegoing.

"AuthenticatingAgent"meansanyPersonappointedbytheTrusteetoactonbehalfoftheTrusteepursuanttoSection611toauthenticateSecurities.

"AuthorizedNewspaper"meansanewspaper,intheEnglishlanguageorinanofficiallanguageofthecountryofpublication,customarilypublishedoneachBusinessDay,whetherornotpublishedonSaturdays,Sundaysorholidays,andofgeneralcirculationineachplaceinconnectionwithwhichthetermisusedorinthe

1

TableofContents

financialcommunityofeachsuchplace.WheresuccessivepublicationsarerequiredtobemadeinAuthorizedNewspapers,thesuccessivepublicationsmaybemadeinthesameorindifferentnewspapersinthesamecitymeetingtheforegoingrequirementsandineachcaseonanyBusinessDay.

"BankruptcyLaw"hasthemeaningspecifiedinSection501.

"BankruptcyOrder"hasthemeaningspecifiedinSection501.

"BearerSecurity"meansanySecurityexceptaRegisteredSecurity.

"BoardofDirectors"meanstheboardofdirectorsoftheCompanyoranydulyauthorizedcommitteeofsuchboard.

"BoardResolution"meansacopyofaresolutioncertifiedbytheSecretaryoranAssistantSecretaryoftheCompanytohavebeendulyadoptedbytheBoardofDirectorsandtobeinfullforceandeffectonthedateofsuchcertification,anddeliveredtotheTrustee.

"BusinessDay,"whenusedwithrespecttoanyPlaceofPaymentoranyotherparticularlocationreferredtointhisIndentureorintheSecurities,means,unlessotherwisespecifiedwithrespecttoanySecuritiespursuanttoSection301,eachMonday,Tuesday,Wednesday,ThursdayandFridaywhichisnotadayonwhichbankinginstitutionsinthatPlaceofPaymentorotherlocationareauthorizedorobligatedbylaworexecutiveordertoclose.

"calculationperiod"hasthemeaningspecifiedinSection311.

"CanadianGAAP"meansgenerallyacceptedaccountingprinciplesineffectinCanadaincludingtheaccountingrecommendationspublishedorincorporatedbyreference,fromtimetotime,intheHandbookoftheCanadianInstituteofCharteredAccountants.

"Clearstream"meansClearstreamBanking,sociétéanonyme,oritssuccessor.

"Commission"meanstheU.S.SecuritiesandExchangeCommission,asfromtimetotimeconstituted,createdundertheExchangeActor,ifatanytimeafterthe execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the bodyperformingsuchdutiesatsuchtime.

"CommonDepositary"hasthemeaningspecifiedinSection304.

"Company"meansthePersonnamedasthe"Company"inthefirstparagraphofthisIndentureuntilasuccessorPersonshallhavebecomesuchpursuanttotheapplicableprovisionsofthisIndenture,andthereafter"Company"shallmeansuchsuccessorPerson.

"Company Request"or"CompanyOrder"meansawrittenrequestorordersignedinthenameoftheCompanybytheChairman,thePresidentoraVicePresident,andbytheTreasurer,anAssistantTreasurer,theSecretaryoranAssistantSecretary,oftheCompany,anddeliveredtotheTrustee.

"ComponentCurrency"hasthemeaningspecifiedinSection312.

"ConversionDate"hasthemeaningspecifiedinSection312(d).

"ConversionEvent"meansthecessationofuseof(i)aForeignCurrency(otherthantheEuroorothercurrencyunit)bothbythegovernmentofthecountrywhichissuedsuchCurrencyandbyacentralbankorotherpublicinstitutionoforwithintheinternationalbankingcommunityforthesettlementoftransactions,(ii)theEuroor(iii)anycurrencyunit(orcompositecurrency)otherthantheEuroforthepurposesforwhichitwasestablished.

"Corporate Trust Office" means the principal corporate trust office of the Trustee at which at any particular time its corporate trust business may beadministered,whichofficeonthedateofexecutionofthisIndentureislocatedat.

"corporation"includescorporations,associations,companiesandbusinesstrusts.

"coupon"meansanyinterestcouponappertainingtoaBearerSecurity.

2

TableofContents

"covenantdefeasance"hasthemeaningspecifiedinSection1303.

"Currency"meansanycurrencyorcurrencies,compositecurrencyorcurrencyunitorcurrencyunits,including,withoutlimitation,theEuro,issuedbythegovernmentofoneormorecountriesorbyanyrecognizedconfederationorassociationofsuchgovernments.

"Custodian"hasthemeaningspecifiedinSection501.

"Default"meansanyeventwhichis,orafternoticeorpassageoftimeorbothwouldbe,anEventofDefault.

"DefaultedInterest"hasthemeaningspecifiedinSection307.

"defeasance"hasthemeaningspecifiedinSection1302.

"Depositary"meanswithrespecttotheSecuritiesofanyseriesissuableorissuedintheformofoneormoreRegisteredSecurities,thePersondesignatedasDepositarybytheCompanypursuanttoSection301untilasuccessorDepositaryshallhavebecomesuchpursuanttotheapplicableprovisionsofthisIndenture,and thereafter "Depositary" shall mean or include each Person who is then a Depositary hereunder, and, if at any time there is more than one such Person,"Depositary"asusedwithrespecttotheSecuritiesofanysuchseriesshallmeantheDepositarywithrespecttotheRegisteredSecuritiesofthatseries.

"Dollar"or"$"meansadollarorotherequivalentunitinsuchcoinorcurrencyoftheUnitedStatesofAmericaasatthetimeshallbelegaltenderforthepaymentofpublicandprivatedebts.

"DollarEquivalentoftheCurrencyUnit"hasthemeaningspecifiedinSection312(g).

"DollarEquivalentoftheForeignCurrency"hasthemeaningspecifiedinSection312(f).

"ElectionDate"hasthemeaningspecifiedinSection312(h).

"Euro" means the single currency of the participating member states fromtime to time of the European Union described in legislation of the EuropeanCounselfortheoperationofasingleunifiedEuropeancurrency(whetherknownastheEuroorotherwise).

"Euroclear"meansEuroclearBankS.A./N.V.,oritssuccessorasoperatoroftheEuroclearSystem.

"EventofDefault"hasthemeaningspecifiedinSection501.

"ExchangeAct"meanstheUnitedStatesSecuritiesExchangeActof1934,asamended.

"ExchangeDate"hasthemeaningspecifiedinSection304.

"Exchange Rate Agent" means, with respect to Securities of or within any series, unless otherwise specified with respect to any Securities pursuant toSection301,aNewYorkclearinghousebank,designatedpursuanttoSection301or313.

"ExchangeRateOfficer'sCertificate"meansatestedtelexoracertificatesettingforth(i)theapplicableMarketExchangeRateand(ii)theDollarorForeignCurrencyamountsofprincipal (andpremium,if any)andinterest, if any(onanaggregatebasisandonthebasisofaSecurityhavingthelowestdenominationprincipalamountdeterminedinaccordancewithSection302intherelevantCurrency),payablewithrespecttoaSecurityofanyseriesonthebasisofsuchMarketExchangeRate,sent(inthecaseofatelex)orsigned(inthecaseofacertificate)bytheTreasurer,anyVicePresidentoranyAssistantTreasureroftheCompany.

"ExtensionNotice"hasthemeaningspecifiedinSection308.

"ExtensionPeriod"hasthemeaningspecifiedinSection308.

"FederalBankruptcyCode"meanstheBankruptcyActofTitle11oftheUnitedStatesCode,asamendedfromtimetotime.

"FinalMaturity"hasthemeaningspecifiedinSection308.

"FirstCurrency"hasthemeaningspecifiedinSection115.

3

TableofContents

"ForeignCurrency"meansanyCurrencyotherthanCurrencyoftheUnitedStatesofAmerica.

"GovernmentObligations"means,unlessotherwisespecifiedwithrespecttoanyseriesofSecuritiespursuanttoSection301,securitieswhichare(a)directobligationsofthe government which issuedthe Currencyin whichthe Securities of a particular series are payable or (b) obligations of a Personcontrolled orsupervised byandacting as an agencyor instrumentality of the government which issued the Currency in which the Securities of such series are payable, thepaymentofwhichisunconditionallyguaranteedbysuchgovernment,which,ineithercase,arefullfaithandcreditobligationsofsuchgovernmentpayableinsuchCurrencyandarenotcallableorredeemableattheoptionoftheissuerthereofandshallalsoincludeadepositoryreceiptissuedbyabankortrustcompanyascustodian with respect to any such Government Obligation or a specific payment of interest on or principal of any such Government Obligation held by suchcustodianfortheaccountofaholderofadepositoryreceipt;providedthat(exceptasrequiredbylaw)suchcustodianisnotauthorizedtomakeanydeductionfromtheamountpayabletotheholderofsuchdepositoryreceiptfromanyamountreceivedbythecustodianinrespectoftheGovernmentObligationorthespecificpaymentofinterestorprincipaloftheGovernmentObligationevidencedbysuchdepositoryreceipt.

"Holder"means,inthecaseofaRegisteredSecurity,thePersoninwhosenameaSecurityisregisteredintheSecurityRegisterand,inthecaseofaBearerSecurity,thebearerthereofand,whenusedwithrespecttoanycoupon,shallmeanthebearerthereof.

"Indebtedness"meansobligationsformoneyborrowedwhetherornotevidencedbynotes,bonds,debenturesorothersimilarevidencesofindebtedness.

"Indenture" means this instrument as originally executed and as it may from time to time be supplemented or amended by one or more indenturessupplemental hereto entered into pursuant to the applicable provisions hereof, and shall include the terms of particular series of Securities established ascontemplatedbySection301;provided,however,that,ifatanytimemorethanonePersonisactingasTrusteeunderthisinstrument,"Indenture"shallmean,withrespect to any one or more series of Securities for which such Person is Trustee, this instrument as originally executed or as it may from time to time besupplementedoramendedbyoneormoreindenturessupplementalheretoenteredintopursuanttotheapplicableprovisionshereofandshallincludethetermsofparticularseriesofSecuritiesforwhichsuchPersonisTrusteeestablishedascontemplatedbySection301,exclusive,however,ofanyprovisionsortermswhichrelatesolelytootherseriesofSecuritiesforwhichsuchPersonisnotTrustee, regardlessofwhensuchtermsorprovisionswereadopted,andexclusiveofanyprovisionsortermsadoptedbymeansofoneormoreindenturessupplementalheretoexecutedanddeliveredaftersuchPersonhadbecomesuchTrusteebuttowhichsuchPerson,assuchTrustee,wasnotaparty.

"IndexedSecurity"meansaSecuritythetermsofwhichprovidethattheprincipalamountthereofpayableatStatedMaturitymaybemoreorlessthantheprincipalfaceamountthereofatoriginalissuance.

"interest,"whenusedwithrespecttoanOriginalIssueDiscountSecuritywhichbyitstermsbearsinterestonlyafterMaturity,meansinterestpayableafterMaturityattherateprescribedinsuchOriginalIssueDiscountSecurity.

"InterestPaymentDate,"whenusedwithrespecttoanySecurity,meanstheStatedMaturityofaninstallmentofinterestonsuchSecurity.

"JudgmentCurrency"hasthemeaningspecifiedinSection114.

"Lien"meansanymortgage,lien,pledge,charge,securityinterestorencumbranceofanykindcreated,incurredorassumedinordertosecurepaymentofIndebtedness.

"mandatorysinkingfundpayment"hasthemeaningspecifiedinSection1101.

"MarketExchangeRate"means,unlessotherwisespecifiedwithrespecttoanySecuritiespursuanttoSection301,(i)foranyconversioninvolvingacurrencyunitontheonehandandDollarsoranyForeignCurrencyontheother,theexchangeratebetweentherelevantcurrencyunitandDollarsorsuchForeignCurrencycalculatedbythemethodspecifiedpursuanttoSection301fortheSecuritiesoftherelevantseries,(ii)foranyconversionofDollarsintoanyForeignCurrency,thenoon(NewYorkCitytime)buyingrateforsuchForeignCurrencyforcabletransfersquotedinNewYorkCityascertifiedforcustomspurposesbytheFederal

4

TableofContents

ReserveBankofNewYorkand(iii)foranyconversionofoneForeignCurrencyintoDollarsoranotherForeignCurrency,thespotrateatnoonlocaltimeintherelevantmarketatwhich,inaccordancewithnormalbankingprocedures,theDollarsorForeignCurrencyintowhichconversionisbeingmadecouldbepurchasedwiththeForeignCurrencyfromwhichconversionisbeingmadefrommajorbankslocatedinNewYorkCity,LondonoranyotherprincipalmarketforDollarsorsuchpurchasedForeignCurrency, in eachcase determinedbythe ExchangeRate Agent. Unless otherwise specified withrespect to anySecurities pursuant toSection301,intheeventoftheunavailabilityofanyoftheexchangeratesprovidedforintheforegoingclauses(i),(ii)and(iii),theExchangeRateAgentshalluse, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank of New York as of the most recent available date, orquotationsfromoneor moremajor banksinNewYorkCity, Londonoranother principal market for theCurrencyinquestion, or suchother quotationsastheExchange Rate Agent shall deem appropriate. Unless otherwise specified by the Exchange Rate Agent, if there is more than one market for dealing in anyCurrencybyreasonofforeignexchangeregulationsorotherwise,themarkettobeusedinrespectofsuchCurrencyshallbethatuponwhichanon-residentissuerofsecuritiesdesignatedinsuchCurrencywouldpurchasesuchCurrencyinordertomakepaymentsinrespectofsuchsecurities.

"Maturity,"whenusedwithrespecttoanySecurity,meansthedateonwhichtheprincipalofsuchSecurityoraninstallmentofprincipalbecomesdueandpayableasthereinorhereinprovided,whetherattheStatedMaturityorbydeclarationofacceleration,noticeofredemption,noticeofoptiontoelectrepaymentorotherwise.

"Officers'Certificate"meansacertificatesignedbytheChairman,theChiefExecutiveOfficer,thePresidentoraVicePresident,andbytheTreasurer,anAssistantTreasurer,theSecretaryoranAssistantSecretaryoftheCompanyanddeliveredtotheTrustee.

"OpinionofCounsel"meansawrittenopinionofcounsel,whomaybecounselfortheCompany,includinganemployeeoftheCompany,andwhoshallbeacceptabletotheTrustee.

"OptionalResetDate"hasthemeaningspecifiedinSection307.

"optionalsinkingfundpayment"hasthemeaningspecifiedinSection1101.

"Original IssueDiscountSecurity"meansanySecuritywhichprovidesforanamountlessthantheprincipalamountthereoftobedueandpayableuponadeclarationofaccelerationoftheMaturitythereofpursuanttoSection502.

"OriginalStatedMaturity"hasthemeaningspecifiedinSection308.

"OtherCurrency"hasthemeaningspecifiedinSection115.

"Outstanding,"whenusedwithrespecttoSecurities,means,asofthedateofdetermination,allSecuritiestheretoforeauthenticatedanddeliveredunderthisIndenture,except:

(i)SecuritiestheretoforecancelledbytheTrusteeordeliveredtotheTrusteeforcancellation;

(ii)Securities,orportionsthereof,forwhosepaymentorredemptionorrepaymentattheoptionoftheHoldermoneyinthenecessaryamounthasbeentheretoforedepositedwiththeTrusteeoranyPayingAgent(otherthantheCompany)intrustorsetasideandsegregatedintrustbytheCompany(if the Company shall act as its own Paying Agent) for the Holders of such Securities and any coupons appertaining thereto; provided that, if suchSecuritiesaretoberedeemed,noticeofsuchredemptionhasbeendulygivenpursuanttothisIndentureorprovisionthereforsatisfactorytotheTrusteehasbeenmade;

(iii)Securities,excepttotheextentprovidedinSections1302and1303,withrespecttowhichtheCompanyhaseffecteddefeasanceand/orcovenantdefeasanceasprovidedinArticleThirteen;and

(iv)Securities whichhavebeenpaidpursuanttoSection306orinexchangefororinlieuofwhichotherSecuritieshavebeenauthenticatedanddeliveredpursuanttothisIndenture,otherthananysuchSecuritiesinrespectofwhichthereshallhavebeenpresentedtotheTrusteeproofsatisfactorytoitthat such Securities are held by a protected purchaser (as defined in Article 8 of the UCC) in whose hands such Securities are valid obligations oftheCompany;

5

TableofContents

provided, however , that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given any request, demand,authorization, direction, notice, consent or waiver hereunder or are present at a meeting of Holders for quorum purposes, and for the purpose of making thecalculationsrequiredbyTIASection313,(i)theprincipalamountofanOriginalIssueDiscountSecuritythatmaybecountedinmakingsuchdeterminationorcalculationandthatshallbedeemedtobeOutstandingforsuchpurposeshallbeequaltotheamountofprincipalthereofthatwouldbe(orshallhavebeendeclaredtobe) dueandpayable, at thetimeof suchdetermination, upona declaration of acceleration of the maturity thereof pursuant to Section 502, (ii) the principalamountofanySecuritydenominatedinaForeignCurrencythatmaybecountedinmakingsuchdeterminationorcalculationandthatshallbedeemedOutstandingforsuchpurposeshall beequal totheDollar equivalent, determinedasof thedatesuchSecurityis originally issuedassetforthinanExchangeRateOfficer'sCertificatedeliveredtotheTrustee,oftheprincipalamount(or,inthecaseofanOriginalIssueDiscountSecurity,theDollarequivalentasofsuchdateoforiginalissuanceoftheamountdeterminedasprovidedinclause(i) above)ofsuchSecurity, (iii) theprincipal amountofanyIndexedSecuritythat maybecountedinmaking such determination or calculation and that shall be deemed outstanding for such purpose shall be equal to the principal face amount of such IndexedSecurityatoriginalissuance,unlessotherwiseprovidedwithrespecttosuchSecuritypursuanttoSection301,and(iv)SecuritiesownedbytheCompanyoranyotherobligorupontheSecuritiesoranyAffiliateoftheCompanyorofsuchotherobligorshallbedisregardedanddeemednottobeOutstanding,exceptthat,indetermining whether the Trustee shall be protected in making such calculation or in relying upon any such request, demand, authorization, direction, notice,consentorwaiver,onlySecuritieswhichtheTrusteeknowstobesoownedshallbesodisregarded.SecuritiessoownedwhichhavebeenpledgedingoodfaithmayberegardedasOutstandingifthepledgeecertifiestotheTrusteethepledgee'srightsotoactwithrespecttosuchSecuritiesandthatthepledgeeisnottheCompanyoranyotherobligorupontheSecuritiesoranyAffiliateoftheCompanyorsuchotherobligor.

"PayingAgent"meansanyPerson(includingtheCompanyactingasPayingAgent)authorizedbytheCompanytopaytheprincipalof(orpremium,ifany)orinterest,ifany,onanySecuritiesonbehalfoftheCompany.

"Person" means any individual, corporation, body corporate, partnership, limited partnership, limited liability partnership, joint venture, limited liabilitycompany,unlimitedliabilitycompany,association,joint-stockcompany,trust,unincorporatedorganizationorgovernmentoranyagencyorpoliticalsubdivisionthereof.

"PlaceofPayment"means,whenusedwithrespecttotheSecuritiesoforwithinanyseries,theplaceorplaceswheretheprincipalof(andpremium,ifany)andinterest,ifany,onsuchSecuritiesarepayableasspecifiedascontemplatedbySection301andSection902.

"PredecessorSecurity"means,withrespecttoanySecurity,everypreviousSecurityevidencingalloraportionofthesameIndebtednessasthatevidencedbysuchparticularSecurity,and,forthepurposesofthisdefinition,anySecurityauthenticatedanddeliveredunderSection306inlieuofalost,destroyedorstolenSecurityshallbedeemedtoevidencethesameIndebtednessasthelost,destroyedorstolenSecurity.

"rate(s)ofexchange"hasthemeaningspecifiedinSection114.

"RedemptionDate,"whenusedwithrespecttoanySecuritytoberedeemed,inwholeorinpart,meansthedatefixedforsuchredemptionbyorpursuanttothisIndenture.

"RedemptionPrice,"whenusedwithrespecttoanySecuritytoberedeemed,inwholeorinpart,meansthepriceatwhichitistoberedeemedpursuanttothisIndenture,plusaccruedandunpaidinterestthereontotheRedemptionDate.

"RegisteredSecurity"meansanySecurityregisteredintheSecurityRegister.

"RegularRecordDate"fortheinterestpayableonanyInterestPaymentDateontheRegisteredSecuritiesoforwithinanyseriesmeansthedatespecifiedforthatpurposeascontemplatedbySection301.

"Repayment Date"means,whenusedwithrespecttoanySecuritytoberepaidattheoptionoftheHolder,thedatefixedforsuchrepaymentpursuanttothisIndenture.

"RequiredCurrency"hasthemeaningspecifiedinSection114.

6

TableofContents

"ResetNotice"hasthemeaningspecifiedinSection307.

"Responsible Officer," when used with respect to the Trustee, means any officer assigned to the Corporate Trust Office of the Trustee having directresponsibilityfortheadministrationofthisIndenture,andalsomeans,withrespecttoaparticularcorporatetrustmatter,anyotherofficertowhomsuchmatterisreferredbecauseofhisknowledgeofandfamiliaritywiththeparticularsubject.

"Securities" hasthemeaningstatedinthefirst recitalofthisIndentureandmoreparticularlymeansanySecuritiesauthenticatedanddeliveredunderthisIndenture;provided,however,thatifatanytimethereismorethanonePersonactingasTrusteeunderthisIndenture,"Securities"withrespecttotheIndentureastowhichsuchPersonisTrusteeshallhavethemeaningstatedinthefirstrecitalofthisIndentureandshallmoreparticularlymeanSecuritiesauthenticatedanddeliveredunderthisIndenture,exclusive,however,ofSecuritiesofanyseriesastowhichsuchPersonisnotTrustee.

"SecurityRegister"and"SecurityRegistrar"havetherespectivemeaningsspecifiedinSection305.

"Special RecordDate" for the payment of anyDefaulted Interest onthe Registered Securities of or within anyseries means a date fixedbythe TrusteepursuanttoSection307.

"SpecifiedAmount"hasthemeaningspecifiedinSection312.

"StatedMaturity,"whenusedwithrespecttoanySecurityoranyinstallmentofprincipalthereoforinterestthereon,meansthedatespecifiedinsuchSecurityoracouponrepresentingsuchinstallmentofinterestasthefixeddateonwhichtheprincipalofsuchSecurityorsuchinstallmentofprincipalorinterestisdueandpayable,assuchdatemaybeextendedpursuanttotheprovisionsofSection308(ifapplicable).

"SubsequentInterestPeriod"hasthemeaningspecifiedinSection307.

"TrustIndentureAct"or"TIA"meanstheTrustIndentureActof1939,asamendedandasinforceatthedateasofwhichthisIndenturewasexecutedexceptasprovidedinSection805.

"Trustee"meansthePersonnamedasthe"Trustee"inthefirstparagraphofthisIndentureuntilasuccessorTrusteeshallhavebecomesuchpursuanttotheapplicableprovisionsofthisIndenture,andthereafter"Trustee"shallmeanorincludeeachPersonwhoisthenaTrusteehereunder;provided,however,thatifatanytimethereismorethanonesuchPerson,"Trustee"asusedwithrespecttotheSecuritiesofanyseriesshallmeanonlytheTrusteewithrespecttoSecuritiesofthatseries.

"UCC"meanstheNewYorkuniformcommercialcodeineffectfromtimetotime.

"UnitedStates"means,unlessotherwisespecifiedwithrespecttoanySecuritiespursuanttoSection301,theUnitedStatesofAmerica(includingthestatesandtheDistrictofColumbia),itsterritories,itspossessionsandotherareassubjecttoitsjurisdiction.

"ValuationDate"hasthemeaningspecifiedinSection312(c).

"VicePresident,"whenusedwithrespecttotheCompanyortheTrustee,meansanyvicepresident,whetherornotdesignatedbyanumberorawordorwordsaddedbeforeorafterthetitle"vicepresident".

"YieldtoMaturity"meanstheyieldtomaturity,computedatthetimeofissuanceofaSecurity(or,ifapplicable,atthemostrecentredeterminationofinterestonsuchSecurity)andassetforthinsuchSecurityinaccordancewithgenerallyacceptedUnitedStatesbondyieldcomputationprinciples.

SECTION102. ComplianceCertificatesandOpinions. UponanyapplicationorrequestbytheCompanytotheTrusteetotakeanyactionunderanyprovision of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate stating that all conditions precedent, if any, provided for in thisIndenture (including any covenant compliance with which constitutes a condition precedent) relating to the proposed action have been complied with and anOpinionofCounselstatingthatintheopinionofsuchcounselallsuchconditionsprecedent,ifany,havebeencompliedwith,exceptthatinthecaseofanysuchapplicationorrequestastowhichthefurnishingofsuchdocumentsisspecificallyrequiredbyanyprovisionofthisIndenturerelatingtosuchparticularapplicationorrequest,noadditionalcertificateoropinionneedbefurnished.

7

TableofContents

Everycertificate or opinionwith respect to compliance with a covenant or conditionprovidedfor in this Indenture (other thanpursuant to Section904)shallinclude:

(1)astatementthateachindividualsigningsuchcertificateoropinionhasreadsuchcovenantorconditionandthedefinitionshereinrelatingthereto;

(2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in suchcertificateoropinionarebased;

(3)astatementthat,intheopinionofeachsuchindividual,hehasmadesuchexaminationorinvestigationasisnecessarytoenablehimtoexpressaninformedopinionastowhetherornotsuchcovenantorconditionhasbeencompliedwith;and

(4)astatementastowhether,intheopinionofeachsuchindividual,suchcovenantorconditionhasbeencompliedwith.

SECTION103.FormofDocumentsDeliveredtoTrustee.Inanycasewhereseveralmattersarerequiredtobecertifiedby,orcoveredbyanopinionof,anyspecifiedPerson,it isnotnecessarythatallsuchmattersbecertifiedby,orcoveredbytheopinionof,onlyonesuchPerson,orthattheybesocertifiedorcoveredbyonlyonedocument,butonesuchPersonmaycertifyorgiveanopinionwithrespecttosomemattersandoneormoreothersuchPersonsastoothermatters,andanysuchPersonmaycertifyorgiveanopinionastosuchmattersinoneorseveraldocuments.

AnycertificateoropinionofanofficeroftheCompanymaybebased,insofarasitrelatestolegalmatters,uponacertificateoropinionof,orrepresentationsby, counsel, unless such officer knows, or in the exerciseof reasonable care should know, that the certificate or opinion or representations with respect to thematters upon which his certificate or opinion is based are erroneous. Anysuch certificate orOpinion of Counsel may be based, insofar as it relates to factualmatters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating that the informationwith respect to such factualmatters is in the possession of the Company unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion orrepresentationswithrespecttosuchmattersareerroneous.

AnycertificateoropinionofanofficeroftheCompanyorofcounselmaybebased,insofarasitrelatestoaccountingmatters,uponacertificateoropinionof,orrepresentationsby,anaccountantorfirmofaccountantsintheemployoftheCompany,unless, inthecaseofacertificate oranopinionofanofficeroftheCompany,suchofficerknows,orintheexerciseofreasonablecareshouldknow,thatthecertificateoropinionorrepresentationswithrespecttotheaccountingmattersuponwhichsuchcertificateoropinionmaybebasedareerroneous.AnycertificateoropinionofanyindependentfirmofpublicaccountantsfiledwiththeTrusteeshallcontainastatementthatsuchfirmisindependent.

WhereanyPersonisrequiredtomake,giveorexecutetwoormoreapplications,requests,consents,certificates,statements,opinionsorotherinstrumentsunderthisIndenture,theymay,butneednot,beconsolidatedandformoneinstrument.

SECTION104.ActsofHolders.

(a)Anyrequest,demand,authorization,direction,notice,consent,waiverorotheractionprovidedbythisIndenturetobegivenortakenbyHoldersoftheOutstandingSecurities of all series or oneor moreseries, as thecasemaybe, maybeembodiedin andevidencedbyoneor moreinstruments of substantiallysimilar tenor signed by such Holders in person or by agents duly appointed in writing. If Securities of a series are issuable as Bearer Securities, any request,demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders of such series may,alternatively, be embodied in and evidenced by the record of Holders of Securities of such series voting in favor thereof, either inperson or by proxies dulyappointed in writing, at any meeting of Holders of Securities of such series duly called and held in accordance with the provisions of Article Fourteen, or acombinationofsuchinstrumentsandanysuchrecord.Exceptashereinotherwiseexpresslyprovided,suchactionshallbecomeeffectivewhensuchinstrumentorinstrumentsorrecordorbotharedeliveredtotheTrusteeand,whereitisherebyexpresslyrequired,totheCompany.Suchinstrumentorinstrumentsandanysuchrecord (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the "Act" of the Holders signing such instrument orinstrumentsor

8

TableofContents

sovotingatanysuchmeeting.Proofofexecutionofanysuchinstrumentorofawritingappointinganysuchagent,oroftheholdingbyanyPersonofaSecurity,shallbesufficientforanypurposeofthisIndentureandconclusiveinfavoroftheTrusteeandtheCompany,ifmadeinthemannerprovidedinthisSection104.TherecordofanymeetingofHoldersofSecuritiesshallbeprovedinthemannerprovidedinSection1406.

(b)ThefactanddateoftheexecutionbyanyPersonofanysuchinstrumentorwritingmaybeprovedinanyreasonablemannerwhichtheTrusteedeemssufficient.

(c)TheprincipalamountandserialnumbersofRegisteredSecuritiesheldbyanyPerson,andthedateofholdingthesame,shallbeprovedbytheSecurityRegister.

(d)TheprincipalamountandserialnumbersofBearerSecuritiesheldbyanyPerson,andthedateofholdingthesame,maybeprovedbytheproductionofsuchBearerSecuritiesorbyacertificateexecuted,asdepositary,byanytrustcompany,bank,bankerorotherdepositary,whereversituated,ifsuchcertificateshallbedeemedbytheTrusteetobesatisfactory,showingthatatthedatethereinmentionedsuchPersonhadondepositwithsuchdepositary,orexhibitedtoit,theBearerSecuritiesthereindescribed;orsuchfactsmaybeprovedbythecertificateoraffidavitofthePersonholdingsuchBearerSecurities,ifsuchcertificateoraffidavit is deemed by the Trustee to be satisfactory. The Trustee and the Company may assume that such ownership of any Bearer Security continues until(1)anothercertificate oraffidavit bearingalaterdateissuedinrespectofthesameBearerSecurityisproduced,or(2)suchBearerSecurityisproducedtotheTrustee by some other Person, or (3) such Bearer Security is surrendered in exchange for a Registered Security, or (4) such Bearer Security is no longerOutstanding.TheprincipalamountandserialnumbersofBearerSecuritiesheldbyanyPerson,andthedateofholdingthesame,mayalsobeprovedinanyothermannerthattheTrusteedeemssufficient.

(e)IftheCompanyshallsolicitfromtheHoldersofRegisteredSecuritiesanyrequest,demand,authorization,direction,notice,consent,waiverorotherAct,theCompanymay,atitsoption,byorpursuanttoaBoardResolution,fixinadvancearecorddateforthedeterminationofHoldersentitledtogivesuchrequest,demand,authorization,direction,notice,consent,waiverorotherAct,buttheCompany,shallhavenoobligationtodoso.NotwithstandingTIASection316(c),suchrecorddateshallbetherecorddatespecifiedinorpursuanttosuchBoardResolution,whichshallbeadatenotearlierthanthedate30dayspriortothefirstsolicitation of Holders generally in connection therewith andnot later than the date suchsolicitation is completed. If sucharecorddate is fixed, suchrequest,demand,authorization,direction,notice,consent,waiverorotherActmaybegivenbeforeoraftersuchrecorddate,butonlytheHoldersofrecordatthecloseofbusinessonsuchrecorddateshallbedeemedtobeHoldersforthepurposesofdeterminingwhetherHoldersoftherequisiteproportionofOutstandingSecuritieshaveauthorizedoragreedorconsentedtosuchrequest,demand,authorization,direction,notice,consent,waiverorotherAct,andforthatpurposetheOutstandingSecuritiesshallbecomputedasofsuchrecorddate;providedthatnosuchauthorization,agreementorconsentbytheHoldersonsuchrecorddateshallbedeemedeffectiveunlessitshallbecomeeffectivepursuanttotheprovisionsofthisIndenturenotlaterthanelevenmonthsaftertherecorddate.

(f)Anyrequest,demand,authorization,direction,notice,consent,waiverorotherActoftheHolderofanySecurityshallbindeveryfutureHolderofthesameSecurityandtheHolderofeverySecurityissuedupontheregistrationoftransfer thereoforinexchangetherefor orinlieuthereofinrespect ofanythingdone,omittedorsufferedtobedonebytheTrusteeortheCompanyinreliancethereon,whetherornotnotationofsuchactionismadeuponsuchSecurity.

SECTION105.Notices,Etc.toTrusteeandCompany.Anyrequest,demand,authorization,direction,notice,consent,waiverorActofHoldersorotherdocumentsprovidedorpermittedbythisIndenturetobemadeupon,givenorfurnishedto,orfiledwith:

(1)theTrusteebyanyHolderorbytheCompanyshallbesufficientforeverypurposehereunderifmade,given,furnishedorfiledinwritingorsentbyfacsimiletotheTrusteeatitsCorporateTrustOffice,or

(2)theCompanybytheTrusteeorbyanyHoldershallbesufficientforeverypurposehereunder(unlessotherwisehereinexpresslyprovided)ifinwriting andmailed, first-class postage prepaid, or sent by overnight courier to the Company(mailed or delivered to its Secretary at its principal officespecifiedinthefirstparagraphofthisIndenture)

9

TableofContents

SECTION106.NoticetoHolders;Waiver.WherethisIndentureprovidesfornoticeofanyeventtoHoldersofRegisteredSecuritiesbytheCompanyortheTrustee,suchnoticeshallbesufficientlygiven(unlessotherwisehereinexpresslyprovided)ifinwritingandmailed,first-classpostageprepaid,toeachsuchHolderaffectedbysuchevent,athisaddressasitappearsintheSecurityRegister,notlaterthanthelatestdate,andnotearlierthantheearliestdate,prescribedforthegivingofsuchnotice.InanycasewherenoticetoHoldersofRegisteredSecuritiesisgivenbymail,neitherthefailuretomailsuchnotice,noranydefectinanynoticesomailed,toanyparticularHoldershallaffectthesufficiencyofsuchnoticewithrespecttootherHoldersofRegisteredSecuritiesorthesufficiencyofanynoticetoHoldersofBearerSecuritiesgivenasprovided.AnynoticemailedtoaHolderinthemannerhereinprescribedshallbeconclusivelydeemedtohavebeenreceivedbysuchHolder,whetherornotsuchHolderactuallyreceivessuchnotice.

Incase,byreasonofthesuspensionoforirregularitiesinregularmailserviceorbyreasonofanyothercause,itshallbeimpracticaltomailnoticeofanyeventtoHoldersofRegisteredSecuritieswhensuchnoticeisrequiredtobegivenpursuanttoanyprovisionofthisIndenture, thenanymannerofgivingsuchnoticeasshallbedirectedbytheCompanyshallbedeemedtobesufficientgivingofsuchnoticeforeverypurposehereunder.

ExceptasotherwiseexpresslyprovidedhereinorotherwisespecifiedwithrespecttoanySecuritiespursuanttoSection301,wherethisIndentureprovidesfornoticetoHoldersofBearerSecuritiesofanyevent,suchnoticeshallbesufficientlygiventoHoldersofBearerSecuritiesifpublishedinanAuthorizedNewspaperinTheCityofNewYorkandinsuchothercityorcitiesasmaybespecifiedinsuchSecuritiesonaBusinessDayatleasttwice,thefirstsuchpublicationtobenotearlierthantheearliestdate,andnotlaterthanthelatestdate,prescribedforthegivingofsuchnotice.Anysuchnoticeshallbedeemedtohavebeengivenonthedateofthefirstsuchpublication.

Incase, byreasonofthesuspensionofpublicationofanyAuthorizedNewspaperorAuthorizedNewspapersorbyreasonofanyothercause, it shall beimpracticabletopublishanynoticetoHoldersofBearerSecuritiesasprovidedabove,thensuchnotificationtoHoldersofBearerSecuritiesasshallbegivenasdirectedbytheCompanyshallconstitutesufficientnoticetosuchHoldersforeverypurposehereunder.NeitherthefailuretogivenoticebypublicationtoHoldersofBearerSecuritiesasprovidedabove,noranydefectinanynoticesopublished,shallaffectthesufficiencyofsuchnoticewithrespecttootherHoldersofBearerSecuritiesorthesufficiencyofanynoticetoHoldersofRegisteredSecuritiesgivenasprovidedherein.

Anyrequest,demand,authorization,direction,notice,consentorwaiverrequiredorpermittedunderthisIndentureshallbeintheEnglishlanguage,exceptthatanypublishednoticemaybeinanofficiallanguageofthecountryofpublication.

WherethisIndentureprovidesfornoticeinanymanner,suchnoticemaybewaivedinwritingbythePersonentitledtoreceivesuchnotice,eitherbeforeoraftertheevent,andsuchwaivershallbetheequivalentofsuchnotice.WaiversofnoticebyHoldersshallbefiledwiththeTrustee,butsuchfilingshallnotbeaconditionprecedenttothevalidityofanyactiontakeninrelianceuponsuchwaiver.

SECTION107.EffectofHeadingsandTableofContents.TheArticleandSectionheadingshereinandtheTableofContentsareforconvenienceonlyandshallnotaffecttheconstructionhereof.

SECTION108.SuccessorsandAssigns.AllcovenantsandagreementsinthisIndenturebytheCompanyshallbinditssuccessorsandassigns,whethersoexpressedornot.

SECTION109.SeparabilityClause.IncaseanyprovisioninthisIndentureorinanySecurityorcouponshallbeinvalid,illegalorunenforceable,thevalidity,legalityandenforceabilityoftheremainingprovisionsshallnotinanywaybeaffectedorimpairedthereby.

SECTION110.BenefitsofIndenture.NothinginthisIndentureorintheSecuritiesorcoupons,expressorimplied,shallgivetoanyPerson,otherthanthepartieshereto,anyAuthenticatingAgent,anyPayingAgent,anySecuritiesRegistrarandtheirsuccessorshereunderandtheHoldersofSecuritiesorcoupons,anybenefitoranylegalorequitableright,remedyorclaimunderthisIndenture.

SECTION111.GoverningLaw.ThisIndentureandtheSecuritiesandcouponsshallbegovernedbyandconstruedinaccordancewiththelawoftheStateofNewYork.ThisIndentureissubjecttotheprovisionsofthe

10

TableofContents

TrustIndentureActthatarerequiredtobepartofthisIndentureandshall,totheextentapplicable,begovernedbysuchprovisions.

SECTION112.LegalHolidays.InanycasewhereanyInterestPaymentDate,RedemptionDate,sinkingfundpaymentdateorStatedMaturityorMaturityofanySecurityshallnotbeaBusinessDayatanyPlaceofPayment,then(notwithstandinganyotherprovisionofthisIndentureorofanySecurityorcouponotherthan a provision in the Securities of any series which specifically states that such provision shall apply in lieu of this Section 112), payment of principal(orpremium,ifany)orinterest,ifany,neednotbemadeatsuchPlaceofPaymentonsuchdate,butmaybemadeonthenextsucceedingBusinessDayatsuchPlace of Payment with the sameforce and effect as if made on the Interest Payment Date orRedemption Date or sinking fundpayment date, or at the StatedMaturityorMaturity;providedthatnointerestshallaccruefortheperiodfromandaftersuchInterestPaymentDate,RedemptionDate,sinkingfundpaymentdate,StatedMaturityorMaturity,asthecasemaybe.

SECTION113. AgentforService; SubmissiontoJurisdiction; WaiverofImmunities . BytheexecutionanddeliveryofthisIndenture, theCompany(i)irrevocablydesignatesandappoints[]asitsauthorizedagentuponwhichprocessmaybeservedinanysuit,actionorproceedingarisingoutoforrelatingtotheSecuritiesorthisIndenturethatmaybeinstitutedinanyUnitedStatesfederalorNewYorkstatecourtinTheCityofNewYorkorbroughtunderfederalorstatesecuritieslawsorbroughtbytheTrustee(whetherinitsindividualcapacityorinitscapacityasTrusteehereunder)or,subjecttoSection507,anyHolderofSecuritiesinanyUnitedStatesfederalorNewYorkstatecourtinTheBoroughofManhattan,TheCityofNewYork,(ii)submitstothenon-exclusivejurisdictionofanysuchcourtinanysuchsuit,actionorproceeding,and(iii)agreesthatserviceofprocessupon[]withwrittennoticeofsaidservicetotheCompanytobegiveninthemannerprovidedinSection105,shallbedeemedineveryrespecteffectiveserviceofprocessupontheCompanyinanysuch suit, action or proceeding. The Companyfurther agrees to take any andall action, including the execution and filing of any and all such documents andinstruments,asmaybenecessarytocontinuesuchdesignationandappointmentof[]infullforceandeffectsolongasanyoftheSecuritiesshallbeOutstandingoranyamountsshallbepayableinrespectofanySecuritiesorcoupons.

TheCompanyirrevocablyandunconditionallywaives,tothefullestextentpermittedbylaw,anyobjectionthatitmaynoworhereafterhavetothelayingofvenueofanysuchaction,suitorproceedinginanysuchcourtoranyappellatecourtwithrespecttheretoandirrevocablywaives,tothefullestextentpermittedbylaw,thedefenseofaninconvenientforumtothemaintenanceofanysuchaction,suitorproceedinginanysuchcourt.

TotheextentthattheCompanyhasorhereaftermayacquireanyimmunityfromjurisdictionofanycourtorfromanylegalprocess(whetherthroughserviceofnotice,attachmentpriortojudgment,attachmentinaidofexecution,executionorotherwise)withrespecttoitselforitsproperty,itherebyirrevocablywaivessuchimmunityinrespectofitsobligationsunderthisIndentureandtheSecurities,totheextentpermittedbylaw.

SECTION114.ConversionofCurrency.TheCompanycovenantsandagreesthatthefollowingprovisionsshallapplytoconversionofCurrencyinthecaseoftheSecuritiesandthisIndenturetothefullestextentpermittedbyapplicablelaw:

(a)(i)Ifforthepurposesofobtainingjudgmentin,orenforcingthejudgmentof,anycourtinanycountry,itbecomesnecessarytoconvertintoacurrency(the "Judgment Currency") an amount due or contingently due in any other currency under the Securities of any series and this Indenture (the "RequiredCurrency"),thentheconversionshallbemadeattherateofexchangeprevailingontheBusinessDaybeforethedayonwhichthefinaljudgmentisgivenortheorderofenforcementismade,asthecasemaybe(unlessacourtshallotherwisedetermine).

(ii)IfthereisachangeintherateofexchangeprevailingbetweentheBusinessDaybeforethedayonwhichthejudgmentreferredtoin(i)aboveisgivenoranorderofenforcementismade,asthecasemaybe(orsuchotherdateasacourtshalldetermine),andthedateofreceiptoftheamountdue,theCompanyshall paysuchadditional (or, as thecase maybe, such lesser) amount, if any, as maybe necessary so that the amount paid in the JudgmentCurrencywhenconvertedattherateofexchangeprevailingonthedateofreceiptwillproducetheamountintheRequiredCurrencyoriginallydue.

11

TableofContents

(b)Intheeventofthewinding-upoftheCompanyatanytimewhileanyamountordamagesowingundertheSecuritiesandthisIndenture,oranyjudgmentororderrenderedinrespectthereof,shallremainunpaidoroutstanding,theCompanyshallindemnifyandholdtheHoldersandtheTrusteeharmlessagainstanydeficiencyarisingorresultingfromanyvariationinratesofexchangebetween(1)thedateasofwhichtheequivalentoftheamountintheRequiredCurrency(otherthanunderthisSubsection(b))iscalculatedforthepurposesofsuchwinding-upand(2)thefinaldateforthefilingofproofsofclaiminsuchwinding-up.ForthepurposeofthisSubsection(b)thefinaldateforthefilingofproofsofclaiminthewinding-upoftheCompanyshallbethedatefixedbytheliquidatororotherwiseinaccordancewiththerelevantprovisionsofapplicablelawasbeingthelatestpracticabledateasatwhichliabilitiesoftheCompanymaybeascertainedforsuchwinding-uppriortopaymentbytheliquidatororotherwiseinrespectthereto.

(c)TheobligationscontainedinSubsections(a)(ii)and(b)ofthisSection114shallconstituteseparateandindependentobligationsoftheCompanyfromitsotherobligationsundertheSecuritiesandthisIndenture,shallgiverisetoseparateandindependentcausesofactionagainsttheCompany,shallapplyirrespectiveofanywaiverorextensiongrantedbyanyHolderorTrusteefromtimetotimeandshallcontinueinfullforceandeffectnotwithstandinganyjudgmentororderorthe filing of any proof of claimin the winding-up of the Companyfor a liquidated sumin respect of amounts due hereunder (other than under Subsection (b)above)orunderanysuchjudgmentororder.AnysuchdeficiencyasaforesaidshallbedeemedtoconstitutealosssufferedbytheHoldersortheTrustee,asthecasemaybe,andnoprooforevidenceofanyactuallossshallberequiredbytheCompanyortheapplicableliquidator.InthecaseofSubsection(b)above,theamount of such deficiency shall not be deemed to be reduced by any variation in rates of exchange occurring between the said final date and the date of anyliquidatingdistribution.

(d)Theterm"rate(s)ofexchange"shallmeantheBankofCanadanoonrateforpurchasesontherelevantdateoftheRequiredCurrencywiththeJudgmentCurrency,asreportedbyTelerateonscreen3194(orsuchothermeansofreportingtheBankofCanadanoonrateasmaybeagreeduponbyeachofthepartiestothisIndenture)andincludesanypremiumsandcostsofexchangepayable.

(e)TheTrusteeshallhavenodutyorliabilitywithrespecttomonitoringorenforcingthisSection114.

SECTION115.CurrencyEquivalent.ExceptasotherwiseprovidedinthisIndenture,forpurposesoftheconstructionofthetermsofthisIndentureoroftheSecurities,intheeventthatanyamountisstatedhereinintheCurrencyofonenation(the"FirstCurrency"),asofanydatesuchamountshallalsobedeemedtorepresenttheamountintheCurrencyofanyotherrelevantnation(the"OtherCurrency")whichisrequiredtopurchasesuchamountintheFirstCurrencyattheBankofCanadanoonrateasreportedonthe"ExchangeRates—DailyNoonRates"pageofthewebsiteoftheBankofCanada(orsuchothermeansofreportingtheBankofCanadanoonrateasmaybeagreeduponbyeachofthepartiestothisIndenture)onthedateofdetermination.

SECTION116.NoRecourseAgainstOthers.Norecourseunderoruponanyobligation,covenantoragreementcontainedinthisIndenture,orinanySecurity, or because of any indebtedness evidenced thereby, shall be had against any incorporator, as such, or against any past, present or future shareholder,officer or director, as such, of the Company or of any successor, either directly or through the Company or any successor, under any rule of law, statute orconstitutionalprovisionorbytheenforcementofanyassessmentorbyanylegalorequitableproceedingorotherwise,allsuchliabilitybeingexpresslywaivedandreleasedbytheacceptanceoftheSecuritiesbytheHoldersandaspartoftheconsiderationfortheissueoftheSecurities.

SECTION117.ConflictwithTrustIndentureAct.Ifandtotheextentthatanyprovisionhereoflimits,qualifiesorconflictswithanotherprovisionthatisrequiredordeemedtobeincludedinthisIndenturebyanyoftheprovisionsoftheTrustIndentureAct,suchrequiredordeemedprovisionshallcontrol.

ARTICLETWO

SECURITYFORMS

SECTION201.FormsGenerally.TheRegisteredSecurities,ifany,ofeachseriesandtheBearerSecurities,ifany,ofeachseriesandrelatedcoupons,ifany,shallbeinsubstantiallytheformsasshallbeestablishedbyorpursuanttoaBoardResolutionorinoneormoreindenturessupplementalhereto,ineachcasewithsuchappropriateinsertions,omissions,substitutionsandothervariationsasarerequiredorpermitted

12

TableofContents

bythis Indenture, andmayhavesuchletters, numbersor other marksof identificationandsuchlegendsorendorsements placedthereonasmayberequiredtocomplywiththerules of anysecuritiesexchangeor as may, consistently herewith, be determinedbytheofficers of theCompanyexecutingsuchSecurities orcoupons,asevidencedbytheirexecutionofsuchSecuritiesorcoupons.IftheformsofSecuritiesorcouponsofanyseriesareestablishedbyactiontakenpursuanttoaBoardResolution,acopyofanappropriaterecordofsuchactionshallbecertifiedbytheSecretaryoranAssistantSecretaryoftheCompanyanddeliveredtotheTrusteeatorpriortothedeliveryoftheCompanyOrdercontemplatedbySection303fortheauthenticationanddeliveryofsuchSecuritiesorcoupons.AnyportionofthetextofanySecuritymaybesetforthonthereversethereof,withanappropriatereferencetheretoonthefaceoftheSecurity.TheTrustee'scertificateofauthenticationonallSecuritiesshallbeinsubstantiallytheformsetforthinSection202.

SECTION202.FormofTrustee'sCertificateofAuthentication.SubjecttoSection611,theTrustee'scertificateofauthenticationshallbeinsubstantiallythefollowingform:

TRUSTEE'SCERTIFICATEOFAUTHENTICATION

Dated:

ThisisoneoftheSecuritiesoftheseriesdesignatedthereinreferredtointhewithin-mentionedIndenture.

[],asTrustee

ByAuthorizedOfficer

SECTION203. SecuritiesIssuable in Global Form . If Securities of or within a series are issuable in global form, as specified andcontemplatedbySection301, thenanysuchSecurityshall represent suchof theOutstandingSecurities of suchseries as shall bespecifiedthereinandmayprovidethat it shallrepresent the aggregate amount of Outstanding Securities of such series from time to time endorsed thereon and that the aggregate amount of OutstandingSecuritiesofsuchseriesrepresentedtherebymayfromtimetotimebeincreasedordecreasedtoreflectexchanges.AnyendorsementofaSecurityinglobalformtoreflect theamount, oranyincreaseordecreaseintheamount,ofOutstandingSecuritiesrepresentedtherebyshall bemadebytheTrusteeinthemanneranduponinstructionsasprovidedinthisIndenture.TheTrusteeshalldeliverandredeliveranySecurityinglobalforminthemanneranduponinstructionsasprovidedin this Indenture. If a CompanyOrder pursuant to Section 303 orSection 304 has been or simultaneously is delivered, any instructions by the Company withrespect to endorsement or delivery or redelivery of a Security in global form shall be in writing but need not comply with Section 102 and need not beaccompaniedbyanOpinionofCounsel.

NotwithstandingtheprovisionsofSection307,unlessotherwisespecifiedascontemplatedbySection301,paymentofprincipalof(andpremium,ifany)andinterest,ifany,onanySecurityinpermanentglobalformshallbemadetotheHolder.NotwithstandingtheprovisionsofSection309,theCompany,theTrusteeand any agent of the Company or the Trustee shall treat as the Holder of such principal amount of Outstanding Securities represented by a permanent globalSecurity(i)inthecaseofapermanentglobalSecurityinregisteredform,theHolderofsuchpermanentglobalSecurityinregisteredform,or(ii)inthecaseofapermanentglobalSecurityinbearerform,EuroclearorClearstream.

AglobalSecuritymaybeinsubstantiallytheformattachedasExhibitAheretoormaybeinanyformestablishedbyorpursuanttoaBoardResolutionorinoneormoreindenturessupplementalhereto.

ARTICLETHREE

THESECURITIES

SECTION301.AmountUnlimited;IssuableinSeries.TheaggregateprincipalamountofSecuritieswhichmaybeauthenticatedanddeliveredunderthisIndentureisunlimited.

TheSecuritiesmaybeissuedinoneormoreseries.ThereshallbeestablishedbyorpursuanttoaBoardResolutionorinoneormoreindenturessupplementalhereto,priortotheissuanceofSecuritiesofanyseries,anyorallofthefollowing,asapplicable(eachofwhich,ifsoprovided,maybedeterminedfromtimetotimeby

13

TableofContents

theCompanywithrespecttounissuedSecuritiesoftheseriesandsetforthinsuchSecuritiesoftheserieswhenissuedfromtimetotime):

(1)thetitleoftheSecuritiesoftheseries(whichshalldistinguishtheSecuritiesofsuchseriesfromtheSecuritiesofallotherseries,excepttotheextentthatadditionalSecuritiesofanexistingseriesarebeingissued);

(2)theaggregateprincipalamountoftheSecuritiesoftheseriesandanylimitupontheaggregateprincipalamountoftheSecuritiesoftheseriesthatmaybeauthenticatedanddeliveredunderthisIndenture(exceptforSecuritiesauthenticatedanddelivereduponregistrationoftransferof,orinexchangefor,orinlieuof,otherSecuritiesoftheseriespursuanttoSections304,305,306,806,1007or1205)and,intheeventthatnolimitupontheaggregateprincipalamountoftheSecuritiesofthatseriesisspecified,theCompanyshallhavetheright,subjecttoanyterms,conditionsorotherprovisionsspecifiedpursuanttothisSection301withrespecttotheSecuritiesofsuchseries,tore-opensuchseriesfortheissuanceofadditionalSecuritiesofsuchseriesfromtimetotime;

(3)thedateordates,orthemethodbywhichsuchdateordateswillbedeterminedorextended,onwhichtheprincipalofandpremium,ifany,ontheSecuritiesoftheseriesispayableorthemethodbywhichsuchdateordatesshallbedeterminedorextended;

(4)therateorratesatwhichtheSecuritiesoftheseriesshallbearinterest,ifany,orthemethodbywhichsuchrateorratesshallbedetermined,whether such interest shall be payable in cash or additional Securities of the same series or shall accrue and increase the aggregate principal amountoutstandingofsuchseries(includingifsuchSecuritieswereoriginallyissuedatadiscount),thedateordatesfromwhichsuchinterestshallaccrue,orthemethodbywhichsuchdateordatesshallbedetermined,theInterestPaymentDatesonwhichsuchinterestshallbepayableandtheRegularRecordDate,ifany,fortheinterestpayableonanyRegisteredSecurityonanyInterestPaymentDate,orthemethodbywhichsuchdateordatesshallbedetermined,andthebasisuponwhichinterestshallbecalculatedifotherthanonthebasisofa360-dayyearoftwelve30-daymonths;

(5)theplaceorplaces,ifany,otherthantheCorporateTrustOffice,wheretheprincipalof,premium,ifany,andinterestonSecuritiesoftheseriesshall be payable,where any Registered Securities of the series may be surrendered for registration of transfer, where Securities of the series may besurrenderedforexchange,whereSecuritiesoftheseriesthatareconvertibleorexchangeablemaybesurrenderedforconversionorexchange,asapplicable,and,ifdifferentthanthelocationspecifiedinSection105,theplaceorplaceswherenoticesordemandstoorupontheCompanyinrespectoftheSecuritiesoftheseriesandthisIndenturemaybeserved;

(6)theperiodorperiodswithinwhich,thepriceorpricesatwhich,theCurrencyinwhich,andothertermsandconditionsuponwhichSecuritiesoftheseriesmayberedeemed,inwholeorinpart,attheoptionoftheCompany,iftheCompanyistohavethatoption;

(7) the obligation, if any, of the Company to redeem, repay or purchase Securities of the series pursuant to any sinking fund, amortization oranalogousprovisionsorattheoptionofaHolderthereof,andtheperiodorperiodswithinwhich,thepriceorpricesatwhich,theCurrencyinwhich,andothertermsandconditionsuponwhichSecuritiesoftheseriesshallberedeemed,repaidorpurchased,inwholeorinpart,pursuanttosuchobligation;

(8)ifotherthandenominationsof$1,000andanyintegralmultiplethereof,thedenominationordenominationsinwhichanyRegisteredSecuritiesoftheseriesshallbeissuableand,ifotherthandenominationsof$5,000,thedenominationordenominationsinwhichanyBearerSecuritiesoftheseriesshallbeissuable;

(9)ifotherthantheTrustee,theidentityofeachSecurityRegistrarand/orPayingAgent;

(10)ifotherthantheprincipalamountthereof,theportionoftheprincipalamountofSecuritiesoftheseriesthatshallbepayableupondeclarationofaccelerationoftheMaturitythereofpursuanttoSection502orthemethodbywhichsuchportionshallbedetermined;

14

TableofContents

(11)ifotherthanDollars,theForeignCurrencyinwhichpaymentoftheprincipalof,premium,ifany,orinterestontheSecuritiesoftheseriesshallbepayableorinwhichtheSecuritiesoftheseriesshallbedenominatedandtheparticularprovisionsapplicabletheretoinaccordancewith,inadditiontoorinlieuofanyoftheprovisionsofSection312;

(12)iftheamountofpaymentofprincipalof,premium,ifany,orinterestontheSecuritiesoftheseriesmaybedeterminedwithreferencetoanindex,formulaorothermethod(whichindex,formulaormethodmaybebased,withoutlimitation,ononeormoreCurrencies, commodities, equityindicesorotherindices),andthemannerinwhichsuchamountsshallbedetermined;

(13)iftheprincipalof,premium,ifany,orinterestontheSecuritiesoftheseriesaretobepayable,attheelectionoftheCompanyoraHolderthereof,inaCurrencyotherthanthatinwhichsuchSecuritiesaredenominatedorstatedtobepayable,theperiodorperiodswithinwhich(includingtheElectionDate), and the terms and conditions upon which, such election may be made, and the time and manner of determining the exchange rate between theCurrencyinwhichsuchSecuritiesaredenominatedorstatedtobepayablewithoutsuchelectionandtheCurrencyinwhichsuchSecuritiesaretobesopayableifsuchelectionismade,ineachcaseinaccordancewith,inadditiontoorinlieuofanyoftheprovisionsofSection312;

(14)thedesignationoftheinitialExchangeRateAgent,ifany;

(15)theapplicability,ifany,ofSections1302and/or1303totheSecuritiesoftheseriesandanyprovisionsinmodificationof,inadditiontoorinlieuofanyoftheprovisionsofArticleThirteenthatshallbeapplicabletotheSecuritiesoftheseries;

(16)provisions,ifany,grantingspecialrightstotheHoldersofSecuritiesoftheseriesupontheoccurrenceofsucheventsasmaybespecified;

(17) any deletions from, modifications of or additions to the Events of Default (including any deletions from, modifications of or additions toSection908,anychangeintherightoftheTrusteeortherequisiteHoldersofsuchSecuritiestodeclaretheprincipalamountthereofdueandpayable,oranyadditionorchangeintheprovisionssetforthinArticleFive)withrespecttoSecuritiesoftheseries;

(18)anydeletionsfrom,modificationsoradditionstothecovenantssetforthinArticleNinewhichappliestoSecuritiesoftheseries;

(19)whetherSecuritiesoftheseriesaretobeissuableasRegisteredSecurities,BearerSecurities(withorwithoutcoupons)orboth,anyrestrictionsapplicabletotheoffer,saleordeliveryofSecuritiesoftheseries,whetheranySecuritiesoftheseriesaretobeissuableinitiallyintemporaryglobalformand whether any Securities of the series are to be issuable in permanent global formwith or without coupons and, if so, whether beneficial owners ofinterests in anysuch permanent global Security mayexchange such interests for Securities of suchseries andof like tenor of anyauthorizedformanddenominationandthecircumstancesunderwhichanysuchexchangesmayoccur,ifotherthaninthemannerprovidedinSection305,whetherRegisteredSecuritiesoftheseriesmaybeexchangedforBearerSecuritiesoftheseries(ifpermittedbyapplicablelawsandregulations),whetherBearerSecuritiesoftheseriesmaybeexchangedforRegisteredSecuritiesofsuchseries,andthecircumstancesunderwhichandtheplaceorplaceswhereanysuchexchangesmaybemadeandifSecuritiesoftheseriesaretobeissuableinglobalform,theidentityoftheDepositarytherefor;

(20)thedateasofwhichanyBearerSecuritiesoftheseriesandanytemporaryglobalSecurityrepresentingOutstandingSecuritiesoftheseriesshallbedatedifotherthanthedateoforiginalissuanceofthefirstSecurityoftheseriestobeissued;

(21)thePersontowhomanyinterestonanyRegisteredSecurityoftheseriesshallbepayable,ifotherthanthePersoninwhosenamethatSecurity(oroneormorePredecessor Securities) is registeredat thecloseof businessontheRegular RecordDatefor suchinterest, themannerinwhich, or thePerson to whom, any interest on any Bearer Security of the series shall be payable, if otherwise than upon presentation and surrender of the couponsappertainingtheretoastheyseverallymature,andtheextenttowhich,orthemannerinwhich,anyinterestpayableonatemporaryglobalSecurityonanInterestPaymentDatewillbepaidifotherthaninthemannerprovidedinSection304;

15

TableofContents

(22)ifSecuritiesoftheseriesaretobeissuableindefinitiveform(whetheruponoriginalissueoruponexchangeofatemporarySecurityofsuchseries)onlyuponreceiptofcertaincertificatesorotherdocumentsorsatisfactionofotherconditions,theformand/ortermsofsuchcertificates,documentsorconditions;

(23)DollarEquivalentoftheCurrencyUnitiftheSecuritiesoftheseriesaretobeconvertibleintoorexchangeableforanysecuritiesofanyPerson(includingtheCompany),thetermsandconditionsuponwhichsuchSecuritieswillbesoconvertibleorexchangeable;

(24)whetherandunderwhatcircumstancestheCompanywillpayadditionalamountstonon-UnitedStatesHoldersinrespectofanytaxassessmentorgovernmentalcharge;

(25)anyrestrictionorconditiononthetransferabilityoftheSecuritiesofsuchseries;

(26)anyotherterms,conditions,rightsandpreferences(orlimitationsonsuchrightsandpreferences)relatingtotheseries(whichtermsshallnotbeinconsistentwiththerequirementsoftheTrustIndentureAct,butmaymodify,amend,supplementordeleteanyofthetermsofthisIndenturewithrespecttosuchseries).

AllSecuritiesofanyoneseriesandthecouponsappertainingtoanyBearerSecuritiesofsuchseriesshallbesubstantiallyidenticalexcept,inthecaseofRegisteredSecurities,astodenominationandexceptasmayotherwisebeprovidedinorpursuanttosuchBoardResolution(subjecttoSection303)andsetforthin such Officers' Certificate or in any such indenture supplemental hereto. Not all Securities of any one series need be issued at the same time, and, unlessotherwiseprovided,aseriesmaybereopenedforissuancesofadditionalSecuritiesofsuchseries.

IfanyofthetermsoftheseriesareestablishedbyactiontakenpursuanttooneormoreBoardResolutions,suchBoardResolutionsshallbedeliveredtotheTrusteeatorpriortothedeliveryoftheOfficers'Certificatesettingforththetermsoftheseries.

SECTION302.Denominations.TheSecuritiesofeachseriesshallbeissuableinsuchdenominationsasshallbespecifiedascontemplatedbySection301.With respect to Securities of any series denominated in Dollars, in the absence of any such provisions, the Registered Securities of such series, other thanRegisteredSecuritiesissuedinglobalform(whichmaybeofanydenomination),shallbeissuableindenominationsof$1,000andanyintegralmultiplethereofand the Bearer Securities of such series, other than the Bearer Securities issued in global form (which may be of any denomination), shall be issuable in adenominationof$5,000.

SECTION303.Execution,Authentication,DeliveryandDating.TheSecuritiesandanycouponsappertainingtheretoshallbeexecutedonbehalfoftheCompany by its Chairman, its Chief Executive Officer, its President or a Vice President together with any one of the Secretary, an Assistant Secretary, theTreasureroranAssistantTreasureroftheCompany.ThesignatureofanyoftheseofficersontheSecuritiesorcouponsmaybethemanualorfacsimilesignaturesofthepresentoranyfuturesuchauthorizedofficerandmaybeimprintedorotherwisereproducedontheSecurities.

Securities or couponsbearingthemanual or facsimile signatures of individuals whowereat anytimetheproper officers of theCompanyshall bindtheCompanynotwithstandingthatsuchindividualsoranyofthemhaveceasedtoholdsuchofficespriortotheauthenticationanddeliveryofsuchSecuritiesordidnotholdsuchofficesatthedateofsuchSecuritiesorcoupons.

AtanytimeandfromtimetotimeaftertheexecutionanddeliveryofthisIndenture,theCompanymaydeliverSecuritiesofanyseriestogetherwithanycouponsappertainingthereto,executedbytheCompanytotheTrusteeforauthentication,togetherwithaCompanyOrderfortheauthenticationanddeliveryofsuchSecurities,andtheTrusteeinaccordancewithsuchCompanyOrdershallauthenticateanddeliversuchSecurities;provided,however,that,inconnectionwithits original issuance, no Bearer Security shall be mailed or otherwise delivered to any location in the United States or Canada; provided further that,unlessotherwisespecifiedwithrespecttoanyseriesofSecuritiespursuanttoSection301,aBearerSecuritymaybedeliveredinconnectionwithitsoriginalissuanceonlyifthePersonentitledtoreceivesuchBearerSecurityshallhavefurnishedacertificateintheformsetforthinExhibitB-1tothisIndenture,datednoearlierthan15daysprior

16

TableofContents

totheearlierofthedateonwhichsuchBearerSecurityisdeliveredandthedateonwhichanytemporarySecurityfirst becomesexchangeableforsuchBearerSecurityinaccordancewiththetermsofsuchtemporarySecurityandthisIndenture.IfnotalltheSecuritiesofanyseriesaretobeissuedatonetimeandiftheBoardResolutionorsupplementalindentureestablishingsuchseriesshallsopermit,suchCompanyOrdermaysetforthproceduresacceptabletotheTrusteefortheissuanceofsuchSecuritiesanddeterminingtermsofparticularSecuritiesofsuchseriessuchasinterestrate,statedmaturity,dateofissuanceanddatefromwhichinterestshallaccrue.

InauthenticatingsuchSecurities,andacceptingtheadditionalresponsibilitiesunderthisIndentureinrelationtosuchSecurities,theTrusteeshallbeentitledtoreceive,and(subjecttoTIASections315(a)through315(d))shallbefullyprotectedinrelyingupon,anOpinionorOpinionsofCounselstating:

(a)thattheformorformsofsuchSecuritiesandanycouponshavebeenestablishedinconformitywiththeprovisionsofthisIndenture;

(b)thatthetermsofsuchSecuritiesandanycouponshavebeenestablishedinconformitywiththeprovisionsofthisIndenture;

(c)thatsuchSecurities,togetherwithanycouponsappertainingthereto,whencompletedbyappropriateinsertionsandexecutedanddeliveredbytheCompanytotheTrusteeforauthenticationinaccordancewiththisIndenture,authenticatedanddeliveredbytheTrusteeinaccordancewiththisIndentureand in the manner and subject to any conditions specified in suchOpinion of Counsel, will constitute the legal, valid and binding obligations of theCompany, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization and other similar laws of generalapplicability relatingto or affectingtheenforcement of creditors' rights, to general equitable principles andto suchother qualifications as suchcounselshallconcludedonotmateriallyaffecttherightsofHoldersofsuchSecuritiesandanycoupons;

(d)thatalllawsandrequirementsinrespectoftheexecutionanddeliverybytheCompanyofsuchSecurities,anycoupons,andofthesupplementalindentures,ifany,havebeencompliedwithandthatauthenticationanddeliveryofsuchSecuritiesandanycouponsandtheexecutionanddeliveryofthesupplementalindenture,ifany,bytheTrusteewillnotviolatethetermsoftheIndenture;

(e)thattheCompanyhasthecorporatepowertoissuesuchSecuritiesandanycouponsandhasdulytakenallnecessarycorporateactionwithrespecttosuchissuance;and

(f) that the issuance of such Securities and any coupons will not contravene the articles of incorporation or amalgamation or by-laws of theCompany,orresultinanyviolationofanyofthetermsorprovisionsofanylaworregulation.

NotwithstandingtheprovisionsofSection301andoftheprecedingtwoparagraphs,ifnotalltheSecuritiesofanyseriesaretobeissuedatonetime,itshallnotbenecessarytodelivertheOfficers'CertificateotherwiserequiredpursuanttoSection301ortheCompanyOrderandOpinionofCounselotherwiserequiredpursuant to the preceding twoparagraphs prior to or at the time of issuance of each Security, but such documents shall be delivered prior to or at the time ofissuanceofthefirstSecurityofsuchseries.

TheTrusteeshall not berequiredtoauthenticate anddeliver anysuchSecurities if theissueof suchSecurities pursuant tothis Indenture will affect theTrustee'sownrights,dutiesorimmunitiesundertheSecuritiesandthisIndentureorotherwiseinamannerwhichisnotreasonablyacceptabletotheTrustee.

EachRegisteredSecurityshallbedatedthedateofitsauthenticationandeachBearerSecurityshallbedatedasofthedatespecifiedascontemplatedbySection301.

NoSecurityorcouponendorsedthereonshallentitletheHoldertoanybenefitunderthisIndentureorbevalidorobligatoryforanypurposeunlessthereappearsonsuchSecurityacertificateofauthenticationsubstantiallyintheformprovidedinSection202dulyexecutedbytheTrusteebymanualsignatureofanauthorizedofficer,andsuchcertificateuponanySecurityshallbeconclusiveevidence,andtheonlyevidence,thatsuchSecurityhasbeendulyauthenticatedanddeliveredhereunder andis entitledtothebenefits of this Indenture. Notwithstandingtheforegoing, if anySecurityshall havebeenauthenticatedanddeliveredhereunder

17

TableofContents

butneverissuedandsoldbytheCompany,andtheCompanyshalldeliversuchSecuritytotheTrusteeforcancellationasprovidedinSection310togetherwithawrittenstatement(whichneednotcomplywithSection102andneednotbeaccompaniedbyanOpinionofCounsel)statingthatsuchSecurityhasneverbeenissuedandsoldbytheCompany,forallpurposesofthisIndenturesuchSecurityshallbedeemednevertohavebeenauthenticatedanddeliveredhereunderandshallneverentitletheHoldertothebenefitsofthisIndenture.

SECTION304.TemporarySecurities.PendingthepreparationofdefinitiveSecuritiesofanyseries,theCompanymayexecute,anduponreceiptofaCompany Order, the Trustee shall authenticate and deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or otherwiseproduced,inanyauthorizeddenomination,substantiallyofthetenorofthedefinitiveorglobalSecuritiesinlieuofwhichtheyareissued,inregisteredformor,ifauthorized, in bearer form with one or more coupons orwithout coupons and in all cases with such appropriate insertions, omissions, substitutions and othervariationsastheofficersoftheCompany,executingsuchSecuritiesmaydetermine,asconclusivelyevidencedbytheirexecutionofsuchSecurities.

Except in the case of temporary Securities in global form(whichshall be exchangedin accordance with the provisions of the followingparagraphs), iftemporary Securities of any seriesare issued, the Companywill cause definitive Securities of that series to be prepared without unreasonable delay. After thepreparation of definitive Securities of such series, the temporary Securities of such series shall be exchangeable for definitive Securities of such series uponsurrenderofthetemporarySecuritiesofsuchseriesattheofficeoragencyoftheCompanyinaPlaceofPaymentforthatseries, withoutchargetotheHolder.Upon surrender for cancellation of any one or more temporary Securities of any series (accompanied by any unmatured coupons appertaining thereto), theCompanyshallexecuteandtheTrusteeshall authenticateanddeliverinexchangethereforalikeprincipalamountofdefinitiveSecuritiesofthesameseriesofauthorized denominations and of like tenor and evidencing the same indebtedness;provided, however, that no definitive Bearer Security shall be delivered inexchangeforatemporaryRegisteredSecurity;providedfurtherthatadefinitiveBearerSecurityshallbedeliveredinexchangeforatemporaryBearerSecurityonlyincompliancewiththeconditionssetforthinSection303.UntilsoexchangedthetemporarySecuritiesofanyseriesshallinallrespectsbeentitledtothesamebenefitsunderthisIndentureasdefinitiveSecuritiesofsuchseries.

IftemporarySecuritiesofanyseriesareissuedinglobalform,anysuchtemporaryglobalSecurityshall,unlessotherwiseprovidedtherein,bedeliveredtotheLondon, England office of a Depositary or common depositary (the "Common Depositary"), for the benefit of Euroclear and Clearstream, for credit to therespectiveaccountsofthebeneficialownersofsuchSecurities(ortosuchotheraccountsastheymaydirect).

Withoutunnecessarydelay,butinanyeventnotlaterthanthedatespecifiedin,ordeterminedpursuanttothetermsof,anysuchtemporaryglobalSecurity(the "Exchange Date"), the Company shall deliver to the Trustee definitive Securities, in aggregate principal amount equal to the principal amount of suchtemporaryglobalSecurityandevidencingthesameindebtedness,executedbytheCompany.OnoraftertheExchangeDate,suchtemporaryglobalSecurityshallbesurrenderedbytheCommonDepositarytotheTrustee,astheCompany'sagentforsuchpurpose,tobeexchanged,inwholeorfromtimetotimeinpart,fordefinitive Securities without charge, and the Trustee shall authenticate and deliver, in exchange for each portion of such temporary global Security, an equalaggregateprincipalamountofdefinitiveSecuritiesofthesameseriesofauthorizeddenominationsandofliketenorandevidencingthesameindebtednessastheportionofsuchtemporaryglobalSecuritytobeexchanged.ThedefinitiveSecuritiestobedeliveredinexchangeforanysuchtemporaryglobalSecurityshallbeinbearer form, registered form, permanent globalbearer formor permanent global registered form, or any combination thereof, as specified as contemplated bySection301,and,ifanycombinationthereofissospecified,asrequestedbythebeneficialownerthereof;provided,however,that,unlessotherwisespecifiedinsuch temporary global Security, upon such presentation by the CommonDepositary, such temporary global Security is accompanied by a certificate dated theExchangeDateorasubsequentdateandsignedbyEuroclearastotheportionofsuchtemporaryglobalSecurityheldforitsaccountthentobeexchangedandacertificatedatedtheExchangeDateorasubsequentdateandsignedbyClearstreamastotheportionofsuchtemporaryglobalSecurityheldforitsaccountthentobeexchanged,eachintheformsetforthinExhibitB-2tothisIndenture(orinsuchotherformasmaybeestablishedpursuanttoSection301);providedfurtherthat definitive Bearer Securities shall be delivered in exchange for a portion of a temporary global Security only in compliance with the requirements ofSection303.

18

TableofContents

UnlessotherwisespecifiedinsuchtemporaryglobalSecurity,theinterestofabeneficialownerofSecuritiesofaseriesinatemporaryglobalSecurityshallbeexchanged fordefinitive Securities of the sameseries and of like tenor and evidencing the sameindebtedness following the Exchange Date when the accountholderinstructsEuroclearorClearstream,asthecasemaybe,torequestsuchexchangeonhisbehalfanddeliverstoEuroclearorClearstream,asthecasemaybe,a certificate in the formset forth in Exhibit B-1to this Indenture (or in suchother formas maybe established pursuant to Section 301), dated noearlier than15dayspriortotheExchangeDate,copiesofwhichcertificateshallbeavailablefromtheofficesofEuroclearandClearstream,theTrustee,anyAuthenticatingAgentappointedforsuchseriesofSecuritiesandeachPayingAgent.UnlessotherwisespecifiedinsuchtemporaryglobalSecurity,anysuchexchangeshallbemadefreeofchargetothebeneficialownersofsuchtemporaryglobalSecurity,exceptthataPersonreceivingdefinitiveSecuritiesmustbearthecostofinsurance,postage, transportation and the like in the event that such Person does not take delivery of such definitive Securities in person at the offices of Euroclear orClearstream.DefinitiveSecuritiesinbearerformtobedeliveredinexchangeforanyportionofatemporaryglobalSecurityshall bedeliveredonlyoutsidetheUnitedStatesandCanada.

Until exchanged in full as hereinabove provided, the temporary Securities of any series shall in all respects be entitled to the same benefits under thisIndentureasdefinitiveSecuritiesofthesameseriesandofliketenorandevidencingthesameindebtednessauthenticatedanddeliveredhereunder, exceptthat,unlessotherwise specifiedas contemplated bySection301, interest payable ona temporary global Security onanInterest Payment Date for Securities of suchseriesoccurringpriortotheapplicableExchangeDateshallbepayabletoEuroclearandClearstreamonsuchInterestPaymentDateupondeliverybyEuroclearandClearstreamtotheTrusteeofacertificateorcertificatesintheformsetforthinExhibitB-2tothisIndenture(orinsuchotherformasmaybeestablishedpursuanttoSection301),forcreditwithoutfurtherinterestthereononoraftersuchInterestPaymentDatetotherespectiveaccountsofthePersonswhoarethebeneficialownersofsuchtemporaryglobalSecurityonsuchInterestPaymentDateandwhohaveeachdeliveredtoEuroclearorClearstream,asthecasemaybe,acertificate dated no earlier than 15 days prior to the Interest Payment Date occurring prior to such Exchange Date in the formset forth inExhibit B-1to thisIndenture(orinsuchotherformasmaybeestablishedpursuanttoSection301).Notwithstandinganythingtothecontraryhereincontained,thecertificationsmadepursuanttothisparagraphshallsatisfythecertificationrequirementsoftheprecedingtwoparagraphsofthisSection304andofthethirdparagraphofSection303and the interests of the Persons who are the beneficial owners of the temporary global Security with respect to which such certification was made will beexchangedfordefinitiveSecuritiesofthesameseriesandofliketenorandevidencingthesameindebtednessontheExchangeDateorthedateofcertificationifsuchdateoccursaftertheExchangeDate,withoutfurtheractordeedbysuchbeneficialowners.Exceptasotherwiseprovidedinthisparagraph,nopaymentsofprincipalof,premium,ifany,orinterestowingwithrespecttoabeneficialinterestinatemporaryglobalSecuritywillbemadeunlessanduntilsuchinterestinsuchtemporaryglobalSecurityshallhavebeenexchangedforaninterestinadefinitiveSecurity.AnyinterestsoreceivedbyEuroclearandClearstreamandnotpaidashereinprovidedshallbereturnedtotheTrusteenolaterthanonemonthpriortotheexpirationoftwoyearsaftersuchInterestPaymentDateinordertoberepaidtotheCompanyinaccordancewithSection1003.

SECTION305.Registration,RegistrationofTransferandExchange.TheCompanyshallcausetobekeptattheCorporateTrustOfficeoftheTrusteearegister for each series of Registered Securities (the registers maintained in the Corporate Trust Office of the Trustee andin anyother office or agency of theCompanyinaPlaceofPaymentbeinghereinsometimescollectivelyreferredtoasthe"SecurityRegister")inwhich,subjecttosuchreasonableregulationsasitmayprescribe,theCompanyshallprovidefortheregistrationofRegisteredSecuritiesandoftransfersofRegisteredSecurities.TheSecurityRegistershallbeinwrittenformoranyotherformcapableofbeingconvertedintowrittenformwithinareasonabletime.Atallreasonabletimes,theSecurityRegistershallbeopento inspection by the Trustee. The Trustee is hereby initially appointed as security registrar (the "Security Registrar") for the purpose of registering RegisteredSecurities and transfers of Registered Securities as herein provided. The Company shall have the right to remove and replace from time to time the SecurityRegistrarforanyseriesofSecurities;provided,however,thatnosuchremovalorreplacementshallbeeffectiveuntilasuccessorSecurityRegistrarwithrespecttosuchseriesofRegisteredSecuritiesshallhavebeenappointedbytheCompanyandshallhaveacceptedsuchappointmentbytheCompany.IntheeventthattheTrusteeshallnotbeorshallceasetobetheSecurityRegistrarwithrespecttoaseriesofSecurities,itshallhave

19

TableofContents

therighttoexaminetheSecurityRegisterforsuchseriesatallreasonabletimes.ThereshallbeonlyoneSecurityRegisterforeachseriesofSecurities.

UponsurrenderforregistrationoftransferofanyRegisteredSecurityofanyseriesattheofficeoragencyinaPlaceofPaymentforthatseries,theCompanyshallexecute,andtheTrusteeshallauthenticateanddeliver,inthenameofthedesignatedtransferee,oneormorereplacementRegisteredSecuritiesofthesameseries,ofanyauthorizeddenominationsandofalikeaggregateprincipalamountandtenorandevidencingthesameindebtedness.

AttheoptionoftheHolder, RegisteredSecuritiesofanyseriesmaybeexchangedforotherreplacementRegisteredSecuritiesofthesameseries, ofanyauthorizeddenominationandofalikeaggregateprincipalamountandtenorandevidencingthesameindebtedness,uponsurrenderoftheRegisteredSecuritiestobeexchangedat suchofficeoragency. WheneveranyRegisteredSecuritiesaresosurrenderedforexchange, theCompanyshall execute, andtheTrusteeshallauthenticateanddeliver, theRegisteredSecurities, whichtheHoldermakingtheexchangeisentitledtoreceive.Unlessotherwisespecifiedwithrespect toanyseriesofSecuritiesascontemplatedbySection301,BearerSecuritiesmaynotbeissuedinexchangeforRegisteredSecurities.

If (but only if) expressly permitted in or pursuant to the applicable Board Resolution and (subject to Section 303) set forth in the applicable Officers'Certificate,orinanyindenturesupplementalhereto,deliveredascontemplatedbySection301,attheoptionoftheHolder,BearerSecuritiesofanyseriesmaybeexchangedforRegisteredSecuritiesofthesameseriesofanyauthorizeddenominationandofalikeaggregateprincipalamountandtenor,uponsurrenderoftheBearerSecuritiestobeexchangedatanysuchofficeoragency,withallunmaturedcouponsandallmaturedcouponsindefaulttheretoappertaining.IftheHolderofaBearerSecurityisunabletoproduceanysuchunmaturedcouponorcouponsormaturedcouponorcouponsindefault,anysuchpermittedexchangemaybeeffectediftheBearerSecuritiesareaccompaniedbypaymentinfundsacceptabletotheCompanyinanamountequaltothefaceamountofsuchmissingcouponorcoupons,orthesurrenderofsuchmissingcouponorcouponsmaybewaivedbytheCompanyandtheTrusteeif thereisfurnishedtothemsuchsecurityorindemnityastheymayrequiretosaveeachofthemandanyPayingAgentharmless.IfthereaftertheHolderofsuchSecurityshallsurrendertoanyPayingAgentanysuchmissingcouponinrespectofwhichsuchapaymentshallhavebeenmade,suchHoldershallbeentitledtoreceivetheamountofsuchpayment;provided,however,thatinterestrepresentedbycouponsshallbepayableonlyuponpresentationandsurrenderofthosecouponsatanofficeoragencylocatedoutsidetheUnitedStates. Notwithstandingtheforegoing,incaseaBearerSecurityofanyseriesissurrenderedatanysuchofficeoragencyinapermittedexchangeforaRegisteredSecurityofthesameseriesandliketenorafterthecloseofbusinessatsuchofficeoragencyon(i)anyRegularRecordDateandbeforetheopeningofbusinessatsuchofficeoragencyontherelevantInterestPaymentDate,or(ii)anySpecialRecordDateandbeforetheopeningofbusinessatsuchofficeoragencyontherelatedproposeddateforpaymentofDefaultedInterest, suchBearer Securityshall besurrenderedwithoutthecouponrelatingtosuchInterest PaymentDateorproposeddateforpayment,asthecasemaybe,andinterestorDefaultedInterest,asthecasemaybe,willnotbepayableonsuchInterestPaymentDateorproposeddateforpayment,asthecasemaybe,inrespectoftheRegisteredSecurityissuedinexchangeforsuchBearerSecurity,butwillbepayableonlytotheHolderofsuchcouponwhendueinaccordancewiththeprovisionsofthisIndenture.

WheneveranySecuritiesaresosurrenderedforexchange,theCompanyshallexecute,andtheTrusteeshallauthenticateanddelivertheSecuritieswhichtheHoldermakingtheexchangeisentitledtoreceive.

Notwithstandingtheforegoing,exceptasotherwisespecifiedascontemplatedbySection301,anypermanentglobalSecurityshallbeexchangeableonlyasprovidedinthisparagraphandthetwofollowingparagraphs. If anybeneficial ownerofaninterest inapermanentglobalSecurityisentitledtoexchangesuchinterest for Securities of such series and of like tenor and principal amount of another authorized form and denomination, as specified as contemplated bySection301andprovidedthatanyapplicablenoticeprovidedinthepermanentglobalSecurityshallhavebeengiven,thenwithoutunnecessarydelaybutinanyevent not later than the earliest date on which such interest may be so exchanged, the Company shall deliver to theTrustee definitive Securities in aggregateprincipalamountequaltotheprincipalamountofsuchbeneficialowner'sinterestinsuchpermanentglobalSecurity,executedbytheCompany.Onoraftertheearliestdateonwhich

20

TableofContents

suchinterestsmaybesoexchanged,suchpermanentglobalSecurityshallbesurrenderedbytheDepositaryforsuchpermanentglobalSecuritytotheTrustee,asthe Company's agent for such purpose, to be exchanged, in whole or fromtime to time in part, for definitive Securities without charge, and the Trustee shallauthenticateanddeliver,inexchangeforeachportionofsuchpermanentglobalSecurity,anequalaggregateprincipalamountofdefinitiveSecuritiesofthesameseries of authorized denominations and of like tenor and evidencing the same indebtedness as the portion of suchpermanent global Security to be exchangedwhich,unlesstheSecuritiesoftheseriesarenotissuablebothasBearerSecuritiesandasRegisteredSecurities,asspecifiedascontemplatedbySection301,shallbeintheformofBearerSecuritiesorRegisteredSecurities,oranycombinationthereof,asshallbespecifiedbythebeneficialownerthereof;provided,however,that no Bearer Security delivered in exchange for a portion of a permanent global Security shall be mailed or otherwise delivered to any location in theUnitedStatesorCanada.IfaRegisteredSecurityisissuedinexchangeforanyportionofapermanentglobalSecurityafterthecloseofbusinessattheofficeoragencywheresuchexchangeoccurson(i)anyRegularRecordDateandbeforetheopeningofbusinessatsuchofficeoragencyontherelevantInterestPaymentDate,or(ii)anySpecialRecordDateandbeforetheopeningofbusinessatsuchofficeoragencyontherelatedproposeddateforpaymentofDefaultedInterest,then(inthecaseofclause(i))interestor(inthecaseofclause(ii))DefaultedInterest,asthecasemaybe,willnotbepayableonsuchInterestPaymentDateorproposeddateforpayment, asthecasemaybe,inrespectofsuchRegisteredSecurity,butwillbepayableonsuchInterestPaymentDateorproposeddateforpayment,asthecasemaybe,onlytothePersonwhowastheHolderofsuchpermanentglobalSecurityatthecloseofbusinessontherelevantRegularRecordDateorSpecialRecordDate,asthecasemaybe.

IfatanytimetheDepositaryforSecuritiesofaseriesnotifiestheCompanythatitisunwillingorunabletocontinueasDepositaryforSecuritiesofsuchseriesorifatanytimetheDepositaryforglobalSecuritiesforsuchseriesshallnolongerbeaclearingagencyregisteredassuchundertheExchangeAct,theCompanyshallappointasuccessorDepositarywithrespecttotheSecuritiesforsuchseries.IfasuccessortotheDepositaryforSecuritiesisnotappointedbytheCompanywithin90daysaftertheCompanyreceivessuchnoticeorbecomesawareofsuchcondition,asthecasemaybe,theCompany'selectionpursuanttoSection301shallnolongerbeeffectivewithrespecttotheSecuritiesforsuchseriesandtheCompanywillexecute,andtheTrustee,uponreceiptofaCompanyOrderfortheauthenticationanddeliveryofdefinitiveSecuritiesofsuchseries,willauthenticateanddeliverreplacementSecuritiesofsuchseriesindefinitiveregisteredform,inauthorizeddenominationsandinanaggregateprincipalamountequaltotheprincipalamountoftheglobalSecurityorSecuritiesrepresentingsuchseriesandevidencingthesameindebtednessinexchangeforsuchglobalSecurityorSecurities.Theprovisionsofthelastsentenceoftheimmediatelyprecedingparagraphshallbeapplicabletoanyexchangepursuanttothisparagraph.

TheCompanymayatanytimeandinitssolediscretiondeterminethattheSecuritiesofanyseriesissuedintheformofoneormoreglobalSecuritiesshallnolongerberepresentedbysuchglobalSecurityorSecurities.Insuchevent,theCompanywillexecute,andtheTrustee,uponreceiptofaCompanyOrderfortheauthenticationanddeliveryofdefinitiveSecuritiesofsuchseries,willauthenticateanddeliverreplacementSecuritiesofsuchseriesindefinitiveregisteredform,inauthorizeddenominationsandinanaggregateprincipalamountequaltotheprincipalamountoftheglobalSecurityorSecuritiesrepresentingsuchseriesandevidencingthesameindebtednessinexchangeforsuchglobalSecurityorSecurities.Theprovisionsofthelastsentenceofthesecondprecedingparagraphshallbeapplicabletoanyexchangepursuanttothisparagraph.

UpontheexchangeofaglobalSecurityforSecuritiesindefinitiveregisteredform,suchglobalSecurityshallbecancelledbytheTrustee.SecuritiesissuedinexchangeforaglobalSecuritypursuant tothis Section305shall beregisteredinsuchnamesandinsuchauthorizeddenominationsastheDepositaryforsuchglobalSecurity, pursuanttoinstructionsfromitsdirectorindirect participantsorotherwise, shall instruct theTrusteeinwriting.TheTrusteeshall deliversuchSecuritiestothePersonsinwhosenamessuchSecuritiesaresoregistered.

AllSecuritiesissueduponanyregistrationoftransferorexchangeofSecuritiesshallbethevalidobligationsoftheCompany,evidencingthesamedebt,andentitledtothesamebenefitsunderthisIndenture,astheSecuritiessurrendereduponsuchregistrationoftransferorexchange.

EveryRegisteredSecuritypresentedorsurrenderedforregistrationoftransferorforexchangeshall(ifsorequiredbytheCompanyortheSecurityRegistrar)bedulyendorsed,orbeaccompaniedbyawritten

21

TableofContents

instrument of transfer, in form satisfactory to the Company and the Security Registrar, duly executed by the Holder thereof or his attorney duly authorizedinwriting.

NoservicechargeshallbemadeforanyregistrationoftransferorexchangeofSecurities,buttheCompanymayrequirepaymentofasumsufficienttocoveranytaxorothergovernmentalchargethatmaybeimposedinconnectionwithanyregistrationoftransferorexchangeofSecurities,otherthanexchangespursuanttoSection304,806,1007or1205notinvolvinganytransfer.

TheCompanyshall not berequired(i) to issue, register thetransfer of or exchangeSecurities of anyseries duringa periodbeginningat theopeningofbusiness15daysbeforethedayoftheselectionforredemptionofSecuritiesofthatseriesunderSection1003or1103andendingatthecloseofbusinesson(A)ifSecuritiesoftheseriesareissuableonlyasRegisteredSecurities,thedayofthemailingoftherelevantnoticeofredemptionand(B)ifSecuritiesoftheseriesareissuableasBearerSecurities,thedayofthefirstpublicationoftherelevantnoticeofredemptionor,(C)ifSecuritiesoftheseriesarealsoissuableasRegisteredSecurities and there is no publication, the mailing of the relevant notice of redemption; (ii) to register the transfer of or exchange any Registered Security soselected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part; (iii) to exchange any Bearer Security soselectedforredemptionexceptthatsuchaBearerSecuritymaybeexchangedforaRegisteredSecurityofthatseriesandliketenor;providedthatsuchRegisteredSecurity shall be simultaneously surrendered for redemption; or (iv) to issue, register the transfer of or exchange any Security which has been surrendered forrepaymentattheoptionoftheHolder,excepttheportion,ifany,ofsuchSecuritynottobesorepaid.

SECTION306.Mutilated,Destroyed,LostandStolenSecurities.IfanymutilatedSecurityoraSecuritywithamutilatedcouponappertainingtoitissurrenderedtotheTrustee,theCompanyshallexecuteandtheTrusteeshallauthenticateanddeliverinexchangethereforareplacementSecurityofthesameseriesandofliketenorandprincipalamountandevidencingthesameindebtedness,withcouponscorrespondingtothecoupons,ifany,appertainingtothesurrenderedSecurity;provided,however,thatanyBearerSecurityoranycouponshallbedeliveredonlyoutsidetheUnitedStatesandCanada;andprovidedfurtherthatallBearerSecuritiesshallbedeliveredandreceivedinperson.

IfthereshallbedeliveredtotheCompanyandtheTrustee(i)evidencetotheirsatisfactionofthedestruction,lossortheftofanySecurityorcouponand(ii)suchsecurityorindemnityasmayberequiredbythemtosaveeachofthemandanyagentofeitherofthemharmless,then,intheabsenceofnoticetotheCompanyortheTrusteethatsuchSecurityorcouponhasbeenacquiredbyaprotectedpurchaser(asdefinedinArticle8oftheUCC),theCompanyshallexecuteanduponCompanyOrdertheTrusteeshallauthenticateanddeliver,inlieuofanysuchdestroyed,lostorstolenSecurityorinexchangefortheSecurityforwhichadestroyed,lostorstolencouponappertains(withallappurtenantcouponsnotdestroyed,lostorstolen),areplacementSecurityofthesameseriesandofliketenorandprincipalamountandevidencingthesameindebtednessand,withcouponscorrespondingtothecoupons,ifany,appertainingtosuchdestroyed,lostorstolenSecurityortotheSecuritytowhichsuchdestroyed,lostorstolencouponappertains;provided,however,thatanyBearerSecurityoranycouponshallbedeliveredonlyoutsidetheUnitedStatesandCanada.

Notwithstanding theprovisionsoftheprevioustwoparagraphs,incaseanysuchmutilated,destroyed,lostorstolenSecurityorcouponhasbecomeorisabouttobecomedueandpayable,theCompanyinitsdiscretionmay,insteadofissuingareplacementSecurity,withcouponscorrespondingtothecoupons,ifany,appertainingtosuchmutilated,destroyed,lostorstolenSecurityortotheSecuritytowhichsuchmutilated,destroyed,lostorstolencouponappertains,paysuchSecurityorcoupon;provided,however,thatpaymentofprincipalof(andpremium,ifany)andinterest,ifany,onBearerSecuritiesshallbepayableonlyatanofficeoragencylocatedoutsidetheUnitedStatesandCanadaand,unlessotherwisespecifiedascontemplatedbySection301,anyinterestonBearerSecuritiesshallbepayableonlyuponpresentationandsurrenderofthecouponsappertainingthereto.

UpontheissuanceofanyreplacementSecurityunderthisSection306,theCompanymayrequirethepaymentofasumsufficienttocoveranytaxorothergovernmentalchargethatmaybeimposedinrelationtheretoandanyotherexpenses(includingthefeesandexpensesoftheTrustee)connectedtherewith.

22

TableofContents

Every replacement Security of anyseries with its coupons, if any, issuedpursuant to this Section 306in lieu of anymutilated, destroyed, lost or stolenSecurityorinexchangeforaSecuritytowhichamutilated,destroyed,lostorstolencouponappertains,shallconstituteacontractualobligationoftheCompany,whether or not the mutilated, destroyed, lost or stolen Security and its coupons, if any, or the mutilated, destroyed, lost or stolen coupon shall be at any timeenforceablebyanyone,andshallbeentitledtoallthebenefitsofthisIndentureequallyandproportionatelywithanyandallotherSecuritiesofthatseriesandtheircoupons,ifany,dulyissuedhereunder.

TheprovisionsofthisSection306,asamendedorsupplementedpursuanttoSection301ofthisIndenturewithrespecttoparticularseriesofSecuritiesorgenerally,areexclusiveandshallpreclude(totheextentlawful)allotherrightsandremedieswithrespecttothereplacementorpaymentofmutilated,destroyed,lostorstolenSecuritiesorcoupons.

SECTION307.PaymentofPrincipal,PremiumandInterest;InterestRightsPreserved;OptionalInterestReset.

(a)UnlessotherwiseprovidedascontemplatedbySection301withrespecttoanyseriesofSecurities,interest,ifany,onanyRegisteredSecuritywhichispayable,and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name such Security (or one or morePredecessorSecurities)isregisteredatthecloseofbusinessontheRegularRecordDateforsuchinterestattheofficeoragencyoftheCompanymaintainedforsuchpurposepursuanttoSection902;provided,however,thateachinstallmentofinterest,ifany,onanyRegisteredSecuritymayattheCompany'soptionbepaidby(i)mailingacheckforsuchinterest,payabletooruponthewrittenorderofthePersonentitledtheretopursuanttoSection309,totheaddressofsuchPersonasitappearsontheSecurityRegisteror(ii)wiretransfertoanaccountlocatedintheUnitedStatesmaintainedbythePersonentitledtosuchpaymentasspecifiedintheSecurityRegister.PrincipalpaidinrelationtoanySecurityatMaturityshallbepaidtotheHolderofsuchSecurityonlyuponpresentationandsurrenderofsuchSecuritytoanyofficeoragencyreferredtointhisSection307(a).

UnlessotherwiseprovidedascontemplatedbySection301withrespecttotheSecuritiesofanyseries,paymentofinterest,ifany,maybemade,inthecaseofaBearerSecurity,bytransfertoanaccountlocatedoutsidetheUnitedStatesandCanadamaintainedbythepayee,uponpresentationandsurrenderofthecouponsappertainingthereto.

AnyinterestonanyRegisteredSecurityofanyserieswhichispayable,butisnotpunctuallypaidordulyprovidedfor,onanyInterestPaymentDateshallforthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such defaulted interest and, ifapplicable,interestonsuchdefaultedinterest(totheextentlawful)attheratespecifiedintheSecuritiesofsuchseries(suchdefaultedinterestand,ifapplicable,interestthereonhereincollectivelycalled"DefaultedInterest")shallbepaidbytheCompany,atitselectionineachcase,asprovidedinclause(1)or(2)below:

(1) TheCompanymayelect tomakepaymentofanyDefaultedInterest tothePersonsinwhosenamestheRegisteredSecurities ofsuchseries(or their respectivePredecessor Securities) are registeredat the closeof business ona Special RecordDate for the payment of suchDefaulted Interest,whichshallbefixedinthefollowingmanner.TheCompanyshallnotifytheTrusteeinwritingoftheamountofDefaultedInterestproposedtobepaidoneachRegisteredSecurityofsuchseriesandthedateoftheproposedpayment,andatthesametimetheCompanyshalldepositwiththeTrusteeanamountofmoneyintheCurrencyinwhichtheSecuritiesofsuchseriesarepayable(exceptasotherwisespecifiedpursuanttoSection301fortheSecuritiesofsuchseriesandexcept,ifapplicable,asprovidedinSections312(b),312(d)and312(e))equaltotheaggregateamountproposedtobepaidinrespectofsuchDefaultedInterest or shall makearrangements satisfactory totheTrusteefor suchdeposit onor prior to thedate of theproposedpayment, suchmoneywhendepositedtobeheldintrustforthebenefitofthePersonsentitledtosuchDefaultedInterestasinthisclauseprovided.ThereupontheTrusteeshallfixaSpecialRecordDateforthepaymentofsuchDefaultedInterestwhichshallbenotmorethan15daysandnotlessthan10dayspriortothedateoftheproposedpaymentandnotlessthan10daysafterthereceiptbytheTrusteeofthenoticeoftheproposedpayment.TheTrusteeshallpromptlynotifytheCompanyofsuchSpecialRecordDateand,inthenameandattheexpenseoftheCompany,shallcausenoticeoftheproposedpaymentofsuchDefaulted

23

TableofContents

InterestandtheSpecialRecordDatetherefortobegiveninthemannerprovidedin106,notlessthan10dayspriortosuchSpecialRecordDate.NoticeoftheproposedpaymentofsuchDefaultedInterestandtheSpecialRecordDatethereforhavingbeensogiven,suchDefaultedInterestshallbepaidtothePersonsinwhosenametheRegisteredSecuritiesofsuchseries(ortheirrespectivePredecessorSecurities)areregisteredatthecloseofbusinessonsuchSpecialRecordDateandshallnolongerbepayablepursuanttothefollowingclause(2).

(2)TheCompanymaymakepaymentofanyDefaultedInterestontheRegisteredSecuritiesofanyseriesinanyotherlawfulmannernotinconsistentwiththerequirementsofanysecuritiesexchangeonwhichsuchSecuritiesmaybelisted,anduponsuchnoticeasmayberequiredbysuchexchange,if,afternoticegivenbytheCompanytotheTrusteeoftheproposedpaymentpursuanttothisclause,suchmannerofpaymentshallbedeemedpracticablebytheTrustee.

(b)TheprovisionsofthisSection307(b)maybemadeapplicabletoanyseriesofSecuritiespursuanttoSection301(withsuchmodifications,additionsorsubstitutions as may be specified pursuant to such Section 301). The interest rate (or the spread or spread multiplier used to calculate such interest rate, ifapplicable)onanySecurityofsuchseriesmayberesetbytheCompanyonthedateordatesspecifiedonthefaceofsuchSecurity(eachan"OptionalResetDate").TheCompanymayexercisesuchoptionwithrespecttosuchSecuritybynotifyingtheTrusteeofsuchexerciseatleast50butnotmorethan60dayspriortoanOptionalResetDateforsuchSecurity,whichnoticeshallspecifytheinformationtobeincludedintheResetNotice(asdefined).Notlaterthan40dayspriortoeachOptionalResetDate,theTrusteeshalltransmit,inthemannerprovidedforinSection106,totheHolderofanysuchSecurityanotice(the"ResetNotice")indicatingwhethertheCompanyhaselectedtoresettheinterestrate(orthespreadorspreadmultiplierusedtocalculatesuchinterestrate,ifapplicable),andifso(i) such new interest rate (or such new spread or spread multiplier, if applicable) and (ii) the provisions, if any, for redemption during the period from suchOptionalResetDatetothenextOptionalResetDateorifthereisnosuchnextOptionalResetDate,totheStatedMaturityofsuchSecurity(eachsuchperioda"SubsequentInterestPeriod"),includingthedateordatesonwhichortheperiodorperiodsduringwhichandthepriceorpricesatwhichsuchredemptionmayoccurduringtheSubsequentInterestPeriod.

Notwithstandingtheforegoing,notlaterthan20dayspriortotheOptionalResetDate,theCompanymay,atitsoption,revoketheinterestrate(orthespreadorspreadmultiplierusedtocalculatesuchinterestrate,ifapplicable)providedforintheResetNoticeandestablishaninterestrate(oraspreadorspreadmultiplierusedtocalculatesuchinterestrate, if applicable)thatishigherthantheinterest rate(orthespreadorspreadmultiplier, ifapplicable)providedforintheResetNotice,fortheSubsequentInterestPeriodbycausingtheTrusteetotransmit,inthemannerprovidedforinSection106,noticeofsuchhigherinterestrate(orsuchhigherspreadorspreadmultiplier,ifapplicable)totheHolderofsuchSecurity.Suchnoticeshallbeirrevocable.AllSecuritieswithrespecttowhichtheinterestrate(orthespreadorspreadmultiplierusedtocalculatesuchinterestrate,ifapplicable)isresetonanOptionalResetDate,andwithrespecttowhichtheHoldersofsuchSecuritieshavenottenderedsuchSecuritiesforrepayment(orhavevalidlyrevokedanysuchtender)pursuanttothenextsucceedingparagraph,willbearsuchhigherinterestrate(orsuchhigherspreadorspreadmultiplier,ifapplicable).

TheHolderofanysuchSecuritywillhavetheoptiontoelectrepaymentbytheCompanyoftheprincipalofsuchSecurityoneachOptionalResetDateatapriceequaltotheprincipalamountthereofplusinterestaccruedtosuchOptionalResetDate.InordertoobtainrepaymentonanOptionalResetDate,theHoldermustfollowtheproceduressetforthinArticleTwelveforrepaymentattheoptionoftheHolderexceptthattheperiodfordeliveryornotificationtotheTrusteeshallbeatleast25butnotmorethan35dayspriortosuchOptionalResetDateandexceptthat,iftheHolderhastenderedanySecurityforrepaymentpursuanttothe Reset Notice, the Holder may, by written notice to the Trustee, revoke such tender or repayment until the close of business on the tenth day before suchOptionalResetDate.

(c)SubjecttotheforegoingprovisionsofthisSection307andSection305,eachSecuritydeliveredunderthisIndentureuponregistrationoftransferoforinexchangefororinlieuofanyotherSecurityshallcarrytherightstointerestaccruedandunpaid,andtoaccrue,whichwerecarriedbysuchotherSecurity.

24

TableofContents

SECTION308.OptionalExtensionofStatedMaturity.TheprovisionsofthisSection308maybemadeapplicabletoanyseriesofSecuritiespursuanttoSection301(withsuchmodifications,additionsorsubstitutionsasmaybespecifiedpursuanttosuchSection301).TheStatedMaturityofanySecurityofsuchseriesmaybeextendedattheoptionoftheCompanyfortheperiodorperiodsspecifiedonthefaceofsuchSecurity(eachan"ExtensionPeriod")uptobutnotbeyondthedate(the"FinalMaturity")setforthonthefaceofsuchSecurity.TheCompanymayexercisesuchoptionwithrespecttoanySecuritybynotifyingtheTrustee of such exercise at least 50 but not more than 60 days prior to the Stated Maturity of such Security in effect prior to the exercise of such option(the"OriginalStatedMaturity").IftheCompanyexercisessuchoption,theTrusteeshalltransmit,inthemannerprovidedforinSection106,totheHolderofsuchSecurity not later than40daysprior to the Original StatedMaturity a notice (the "ExtensionNotice") indicating(i) theelection of theCompanytoextendtheStatedMaturity,(ii)thenewStatedMaturity,(iii)theinterestrate,ifany,applicabletotheExtensionPeriodand(iv)theprovisions,ifany,forredemptionduringsuchExtensionPeriod.UpontheTrustee'stransmittaloftheExtensionNotice,theStatedMaturityofsuchSecurityshallbeextendedautomaticallyand,exceptasmodified bythe ExtensionNotice andas describedin thenext paragraph, suchSecurity will havethesametermsas prior to thetransmittal of suchExtensionNotice.

Notwithstandingtheforegoing,notlaterthan20daysbeforetheOriginalStatedMaturityofsuchSecurity,theCompanymay,atitsoption,revoketheinterestrateprovidedforintheExtensionNoticeandestablishahigherinterestratefortheExtensionPeriodbycausingtheTrusteetotransmit,inthemannerprovidedforin106,noticeofsuchhigherinterestratetotheHolderofsuchSecurity.Suchnoticeshallbeirrevocable.AllSecuritieswithrespecttowhichtheStatedMaturityisextendedwillbearsuchhigherinterestrate.

IftheCompanyextendstheMaturityofanySecurity,theHolderwillhavetheoptiontoelectrepaymentofsuchSecuritybytheCompanyontheOriginalStatedMaturityatapriceequaltotheprincipalamountthereof,plusinterestaccruedtosuchdate.InordertoobtainrepaymentontheOriginalStatedMaturityoncetheCompanyhasextendedtheMaturitythereof,theHoldermustfollowtheproceduressetforthinArticleTwelveforrepaymentattheoptionofHolders,exceptthattheperiodfordeliveryornotificationtotheTrusteeshallbeatleast25butnotmorethan35dayspriortotheOriginalStatedMaturityandexceptthat,if theHolderhastenderedanySecurityforrepaymentpursuanttoanExtensionNotice,theHoldermaybywrittennoticetotheTrusteerevokesuchtenderforrepaymentuntilthecloseofbusinessonthetenthdaybeforetheOriginalStatedMaturity.

SECTION309.PersonsDeemedOwners.PriortoduepresentmentofaRegisteredSecurityforregistrationoftransfer,theCompany,theTrusteeandanyagentofanyoftheforegoingmaytreatthePersoninwhosenamesuchRegisteredSecurityisregisteredastheownerofsuchRegisteredSecurityforthepurposeof receiving payment ofprincipal of (and premium, if any) and (subject to Sections 305 and 307) interest, if any, on such Security and for all other purposeswhatsoever,whetherornotsuchSecuritybeoverdue,andnoneoftheCompany,theTrusteeoranyagentofanyoftheforegoingshallbeaffectedbynoticetothecontrary.

TitletoanyBearerSecurityandanycouponsappertainingtheretoshallpassbydelivery.TheCompany,theTrusteeandanyagentofanyoftheforegoingmaytreatthebearerofanyBearerSecurityandthebearerofanycouponastheabsoluteownerofsuchSecurityorcouponforthepurposeofreceivingpaymentthereoforonaccountthereofandforallotherpurposeswhatsoever,whetherornotsuchSecurityorcouponsbeoverdue,andtheCompany,theTrusteeoranyagentofanyoftheforegoingshallbeaffectedbynoticetothecontrary.

NoneoftheCompany,theTrustee,anyPayingAgentortheSecurityRegistrarwillhaveanyresponsibilityorliabilityforanyaspectoftherecordsrelatingtoorpaymentsmadeonaccountofbeneficialownershipinterestsofaSecurityinglobalformorformaintaining,supervisingorreviewinganyrecordsrelatingtosuchbeneficialownershipinterests.

Notwithstanding the foregoing, with respect to any global Security, nothing herein shall prevent the Company, the Trustee, or any agent of any of theforegoingfromgivingeffecttoanywrittencertification,proxyorotherauthorizationfurnishedbyanyDepositary,asHolderofsuchglobalSecurity,orimpair,asbetweensuchDepositaryandownersofbeneficialinterestsinsuchglobalSecurity,theoperationofcustomarypracticesgoverningtheexerciseoftherightsofsuchDepositary(oritsnominee)asHolderofsuchglobalSecurity.

25

TableofContents

SECTION310. Cancellation.AllSecuritiesandcouponssurrenderedforpayment,redemption,repaymentattheoptionoftheHolder,registrationoftransferorexchangeorforcreditagainstanycurrentorfuturesinkingfundpaymentshall,ifsurrenderedtoanyPersonotherthantheTrustee,bedeliveredtotheTrustee. All Securities and coupons so delivered to the Trustee shall be promptly cancelled by it. The Company may at any time deliver to the Trustee forcancellationanySecuritiespreviouslyauthenticatedanddeliveredhereunderwhichtheCompanymayhaveacquiredinanymannerwhatsoever,andmaydelivertothe Trustee (or to any other Person for delivery to the Trustee) for cancellation anySecurities previously authenticated hereunder whichthe Companyhas notissuedandsold,andallSecuritiessodeliveredshallbepromptlycancelledbytheTrustee.IftheCompanyshallsoacquireanyoftheSecurities,however,suchacquisitionshall notoperateasaredemptionorsatisfactionoftheindebtednessrepresentedbysuchSecuritiesunlessanduntil thesamearesurrenderedtotheTrustee for cancellation. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section 310, except asexpresslypermittedbythisIndenture.AllcancelledSecuritiesheldbytheTrusteeshallbedisposedofbytheTrusteeinaccordancewithitscustomaryproceduresandcertificationoftheirdisposaldeliveredtotheCompanyunlessbyCompanyOrdertheCompanyshalldirectthatcancelledSecuritiesbereturnedtoit.

SECTION311.ComputationofInterest.

(a)ExceptasotherwisespecifiedascontemplatedbySection301withrespecttoanySecurities,interest,ifany,ontheSecuritiesofeachseriesshallbecomputedonthebasisofa360-dayyearoftwelve30-daymonths.ForthepurposesofdisclosureundertheInterestAct(Canada),theyearlyrateofinteresttowhichinterestcalculatedunderaSecurityforanyperiodinanycalendaryear(the"calculationperiod")isequivalent,istheratepayableunderaSecurityinrespectofthecalculationperiodmultipliedbyafractionthenumeratorofwhichistheactualnumberofdaysinsuchcalendaryearandthedenominatorofwhichistheactualnumberofdaysinthecalculationperiod.

(b)IfforanyreasontheinterestratesandotherchargesoramountspayableunderthisIndentureoronaSecurityarefoundtoexceedthelimitallowedunderapplicablelaw,asdeterminedbyacourtofcompetentjurisdiction,theobligationtopayanysuchinterest,otherchargesoramountsshallautomaticallybereducedto such limit and any amounts paid in excessof such limit shall be refunded. Without limiting the generality of the foregoing, in no event will the aggregate"interest"(asdefinedinSection347oftheCriminalCode(Canada))payableunderthisIndentureoronaSecurityexceedthemaximumeffectiveannualrateofinterestonthe"creditadvanced"(asdefinedinthatSection347)permittedunderthatSectionand,ifanypayment,collectionordemandpursuanttothisIndentureor a Security in respect of such "interest" (as defined in that Section 347) is determined to be contrary to the provisions of that Section 347, such payment,collectionordemandtotheextentitexceedstheamountpermittedbythehighestlawfulratepermittedbyapplicablelaw(the"Excess")willbedeemedtohavebeenmadebymutualmistakeoftheCompany,TrusteeandtheHolderandtheamountofsuchExcesspaymentorcollectionwillberefunded.

SECTION312.CurrencyandMannerofPaymentsinRespectofSecurities.

(a)WithrespecttoRegisteredSecuritiesofanyseriesnotpermittingtheelectionprovidedforinparagraph(b)belowortheHoldersofwhichhavenotmadetheelectionprovidedforinparagraph(b)below,andwithrespecttoBearerSecuritiesofanyseries,exceptasprovidedinparagraph(d)below,paymentoftheprincipalof(andpremium,ifany)andinterest,ifany,onanyRegisteredorBearerSecurityofsuchserieswillbemadeintheCurrencyinwhichsuchRegisteredSecurityorBearerSecurity,asthecasemaybe,isdenominatedorstatedtobepayable.TheprovisionsofthisSection312maybemodifiedorsupersededwithrespecttoanySecuritiespursuanttoSection301.

(b)ItmaybeprovidedpursuanttoSection301withrespecttoRegisteredSecuritiesofanyseriesthatHoldersshallhavetheoption,subjecttoparagraphs(d)and(e)below,toreceivepaymentsofprincipalof(orpremium,ifany)orinterest,ifany,onsuchRegisteredSecuritiesinanyoftheCurrencieswhichmaybedesignated for such election by delivering to the Trustee a written election with signature guarantees and in the applicable form established pursuant toSection301,notlater thanthecloseofbusinessontheElectionDateimmediatelyprecedingtheapplicablepaymentdate. If aHoldersoelects toreceivesuchpayments in any such Currency, such election will remain in effect for suchHolder or any transferee of such Holder until changed by such Holder or suchtransfereebywrittennoticetotheTrustee(butanysuchchangemustbemadenotlater

26

TableofContents

thanthecloseofbusinessontheElectionDateimmediatelyprecedingthenextpaymentdatetobeeffectiveforthepaymenttobemadeonsuchpaymentdateandnosuchchangeofelectionmaybemadewithrespecttopaymentstobemadeonanyRegisteredSecurityofsuchserieswithrespecttowhichanEventofDefaulthasoccurredorwithrespecttowhichtheCompanyhasdepositedfundspursuanttoArticleFourorThirteenorwithrespecttowhichanoticeofredemptionhasbeengivenbytheCompanyoranoticeofoptiontoelectrepaymenthasbeensentbysuchHolderorsuchtransferee).AnyHolderofanysuchRegisteredSecuritywhoshallnothavedeliveredanysuchelectiontotheTrusteenotlaterthanthecloseofbusinessontheapplicableElectionDatewillbepaidtheamountdueontheapplicablepaymentdateintherelevantCurrencyasprovidedinSection312(a).TheTrusteeshallnotifytheExchangeRateAgentassoonaspracticableaftertheElectionDateoftheaggregateprincipalamountofRegisteredSecuritiesforwhichHoldershavemadesuchwrittenelection.

(c)UnlessotherwisespecifiedpursuanttoSection301,iftheelectionreferredtoinparagraph(b)abovehasbeenprovidedforpursuanttoSection301,then,unlessotherwisespecifiedpursuanttoSection301,notlaterthanthefourthBusinessDayaftertheElectionDateforeachpaymentdateforRegisteredSecuritiesofanyseries, theExchangeRateAgentwill delivertotheCompanyawrittennoticespecifying, intheCurrencyinwhichRegisteredSecuritiesofsuchseriesarepayable,therespectiveaggregateamountsofprincipalof(andpremium,ifany)andinterest,ifany,ontheRegisteredSecuritiestobepaidonsuchpaymentdate,specifyingtheamountsinsuchCurrencysopayableinrespectoftheRegisteredSecuritiesastowhichtheHoldersofRegisteredSecuritiesofsuchseriesshallhaveelectedtobepaidinanotherCurrencyasprovidedinparagraph(b)above.Iftheelectionreferredtoinparagraph(b)abovehasbeenprovidedforpursuanttoSection301andifatleastoneHolderhasmadesuchelection,then,unlessotherwisespecifiedpursuanttoSection301,onthesecondBusinessDayprecedingsuchpaymentdatetheCompanywilldelivertotheTrusteeforsuchseriesofRegisteredSecuritiesanExchangeRateOfficer'sCertificateinrespectoftheDollarorForeign Currency payments to be made on such payment date. Unless otherwise specified pursuant to Section 301, the Dollar or Foreign Currency amountreceivablebyHoldersofRegisteredSecuritieswhohaveelectedpaymentinaCurrencyasprovidedinparagraph(b)aboveshallbedeterminedbytheCompanyonthebasisoftheapplicableMarketExchangeRateineffectonthethirdBusinessDay(the"ValuationDate")immediatelyprecedingeachpaymentdate,andsuchdeterminationshallbeconclusiveandbindingforallpurposes,absentmanifesterror.

(d)IfaConversionEventoccurswithrespecttoaForeignCurrencyinwhichanyoftheSecuritiesaredenominatedorpayableotherthanpursuanttoanelectionprovidedforpursuanttoparagraph(b)above,thenwithrespecttoeachdateforthepaymentofprincipalof(andpremium,ifany)andinterest,ifany,onthe applicable Securities denominated or payable in such Foreign Currency occurring after the last date on which such Foreign Currency was used(the"ConversionDate"),theDollarshallbetheCurrencyofpaymentforuseoneachsuchpaymentdate.UnlessotherwisespecifiedpursuanttoSection301,theDollaramounttobepaidbytheCompanytotheTrusteeandbytheTrusteeoranyPayingAgenttotheHoldersofsuchSecuritieswithrespecttosuchpaymentdateshallbe,inthecaseofaForeignCurrencyotherthanacurrencyunit,theDollarEquivalentoftheForeignCurrencyor,inthecaseofacurrencyunit, theDollarEquivalentoftheCurrencyUnit,ineachcaseasdeterminedbytheExchangeRateAgentinthemannerprovidedinparagraph(f)or(g)below.

(e)UnlessotherwisespecifiedpursuanttoSection301,iftheHolderofaRegisteredSecuritydenominatedinanyCurrencyshallhaveelectedtobepaidinanotherCurrencyasprovidedinparagraph(b)above,andaConversionEventoccurswithrespecttosuchelectedCurrency,suchHoldershallreceivepaymentintheCurrencyinwhichpaymentwouldhavebeenmadeintheabsenceofsuchelection;andifaConversionEventoccurswithrespecttotheCurrencyinwhichpaymentwouldhavebeenmadeintheabsenceofsuchelection,suchHoldershallreceivepaymentinDollarsasprovidedinparagraph(d)above.

(f)The"DollarEquivalentoftheForeignCurrency"shallbedeterminedbytheExchangeRateAgentandshallbeobtainedforeachsubsequentpaymentdatebyconvertingthespecifiedForeignCurrencyintoDollarsattheMarketExchangeRateontheConversionDate.

(g)The"DollarEquivalentoftheCurrencyUnit"shallbedeterminedbytheExchangeRateAgentandsubjecttotheprovisionsofparagraph(h)belowshallbethesumofeachamountobtainedbyconvertingthe

27

TableofContents

SpecifiedAmountofeachComponentCurrencyintoDollarsattheMarketExchangeRateforsuchComponentCurrencyontheValuationDatewithrespecttoeachpayment.

(h)ForpurposesofthisSection312thefollowingtermsshallhavethefollowingmeanings:

A"ComponentCurrency"shallmeananyCurrencywhich,ontheConversionDate,wasacomponentcurrencyoftherelevantcurrencyunit,including,butnotlimitedto,theEuro.

A"SpecifiedAmount"ofaComponentCurrencyshallmeanthenumberofunitsofsuchComponentCurrencyorfractionsthereofwhichwererepresentedintherelevant currencyunit, including, but not limitedto, theEuro, ontheConversionDate. If after theConversionDatetheofficialunitofanyComponentCurrencyisalteredbywayofcombinationorsubdivision,theSpecifiedAmountofsuchComponentCurrencyshallbedividedor multiplied in thesameproportion. If after the ConversionDate twoor moreComponent Currencies are consolidatedintoasinglecurrency,therespectiveSpecifiedAmountsofsuchComponentCurrenciesshallbereplacedbyanamountinsuchsingleCurrencyequaltothesumof the respective Specified Amounts of such consolidated Component Currencies expressed in such single Currency, and such amount shallthereafterbeaSpecifiedAmountandsuchsingleCurrencyshallthereafterbeaComponentCurrency.IfaftertheConversionDateanyComponentCurrencyshallbedividedintotwoormorecurrencies,theSpecifiedAmountofsuchComponentCurrencyshallbereplacedbyamountsofsuchtwoormorecurrencies,havinganaggregateDollarEquivalent valueat theMarketExchangeRateonthedateofsuchreplacement equaltotheDollar Equivalent value of the Specified Amount of such former Component Currency at the Market Exchange Rate immediately before suchdivision and such amounts shall thereafter be Specified Amounts and such currencies shall thereafter be Component Currencies. If, after theConversionDateoftherelevantcurrencyunit,including,butnotlimitedto,theEuro,aConversionEvent(otherthananyeventreferredtoaboveinthisdefinitionof"SpecifiedAmount")occurswithrespecttoanyComponentCurrencyofsuchcurrencyunitandiscontinuingontheapplicableValuationDate,theSpecifiedAmountofsuchComponentCurrencyshall,forpurposesofcalculatingtheDollarEquivalentoftheCurrencyUnit,beconvertedintoDollarsattheMarketExchangeRateineffectontheConversionDateofsuchComponentCurrency.

"ElectionDate"shallmeanthedateforanyseriesofRegisteredSecuritiesasspecifiedpursuanttoclause(13)ofSection301bywhichthewrittenelectionreferredtoinparagraph(b)abovemaybemade.

AlldecisionsanddeterminationsoftheExchangeRateAgentregardingtheDollarEquivalentoftheForeignCurrency,theDollarEquivalentoftheCurrencyUnit,theMarketExchangeRateandchangesintheSpecifiedAmountsasspecifiedaboveshallbeinitssolediscretionandshall,intheabsenceofmanifesterror,beconclusiveforallpurposesandirrevocablybindingupontheCompany,theTrusteeandallHoldersofsuchSecuritiesdenominatedorpayableintherelevantCurrency.TheExchangeRateAgentshallpromptlygivewrittennoticetotheCompanyandtheTrusteeofanysuchdecisionordetermination.

In the event that the Company determines in good faith that a Conversion Event has occurred with respect to a Foreign Currency, the Company willimmediatelygivewrittennoticethereoftotheTrusteeandtotheExchangeRateAgent(andtheTrusteewillpromptlythereaftergivenoticeinthemannerprovidedforinSection106totheaffectedHolders)specifyingtheConversionDate.IntheeventtheCompanysodeterminesthataConversionEventhasoccurredwithrespecttotheEurooranyothercurrencyunitinwhichSecuritiesaredenominatedorpayable,theCompanywillimmediatelygivewrittennoticethereoftotheTrusteeandtotheExchangeRateAgent(andtheTrusteewillpromptlythereaftergivenoticeinthemannerprovidedforinSection106totheaffectedHolders)specifyingtheConversionDateandtheSpecifiedAmountofeachComponentCurrencyontheConversionDate.IntheeventtheCompanydeterminesingoodfaiththatanysubsequentchangeinanyComponentCurrencyassetforthinthedefinitionofSpecifiedAmountabovehasoccurred,theCompanywillsimilarlygivewrittennoticetotheTrusteeandtheExchangeRateAgent.

TheTrusteeshall befullyjustifiedandprotectedinrelyingandactinguponinformationreceivedbyit fromtheCompanyandtheExchangeRateAgentpursuanttothisSection312andshallnototherwisehaveanyduty

28

TableofContents

orobligationtodeterminetheaccuracyorvalidityofsuchinformationindependentoftheCompanyortheExchangeRateAgent.

SECTION313.AppointmentandResignationofSuccessorExchangeRateAgent.

(a)UnlessotherwisespecifiedpursuanttoSection301,ifandsolongastheSecuritiesofanyseries(i)aredenominatedinaCurrencyotherthanDollarsor(ii)maybepayableinaCurrencyotherthanDollars,orsolongasitisrequiredunderanyotherprovisionofthisIndenture,thentheCompanywillmaintainwithrespect to eachsuchseries of Securities, or as so required, at least oneExchangeRate Agent. TheCompanywill cause the ExchangeRate Agent to makethenecessaryforeignexchangedeterminationsatthetimeandinthemannerspecifiedpursuanttoSection301forthepurposeofdeterminingtheapplicablerateofexchangeand,ifapplicable,forthepurposeofconvertingtheissuedCurrencyintotheapplicablepaymentCurrencyforthepaymentofprincipal(andpremium,ifany)andinterest,ifany,pursuanttoSection312.

(b)TheCompanyshallhavetherighttoremoveandreplacefromtimetotimetheExchangeRateAgentforanyseriesofSecurities.NoresignationoftheExchange Rate Agent and no appointment of a successor Exchange Rate Agent pursuant to this Section 313 shall become effective until the acceptance ofappointmentbythesuccessorExchangeRateAgentasevidencedbyawritteninstrumentdeliveredtotheCompanyandtheTrustee.

(c)IftheExchangeRateAgentshallresign,beremovedorbecomeincapableofacting,orifavacancyshalloccurintheofficeoftheExchangeRateAgentforanycausewithrespecttotheSecuritiesofoneormoreseries,theCompany,byorpursuanttoaBoardResolution,shallpromptlyappointasuccessorExchangeRateAgentorExchangeRateAgentswithrespecttotheSecuritiesofthatorthoseseries(itbeingunderstoodthatanysuchsuccessorExchangeRateAgentmaybeappointedwithrespecttotheSecuritiesofoneormoreorallofsuchseriesandthat,unlessotherwisespecifiedpursuanttoSection301,atanytimethereshallonlybeoneExchangeRateAgentwithrespecttoaseriesofSecuritiesthatareinitiallydenominatedand/orpayableinthesameCurrency).

ARTICLEFOUR

SATISFACTIONANDDISCHARGE

SECTION401.SatisfactionandDischargeofIndenture.ThisIndentureshalluponCompanyRequestceasetobeoffurthereffectwithrespecttoanyseriesofSecuritiesspecifiedinsuchCompanyRequest(exceptastoanysurvivingrightsofregistrationoftransferorexchangeofSecuritiesofsuchseriesexpresslyprovidedforhereinorpursuanthereto,andtherightsofHoldersofsuchseriesofSecuritiesandanyrelatedcouponstoreceive,solelyfromthetrustfunddescribedinsubclause(B)ofclause(1)ofthisSection401,paymentsinrespectoftheprincipalof(andpremium,ifany)andinterest, ifany,onsuchSecuritiesandanyrelatedcouponswhensuchpaymentsaredueandexceptasprovidedinthelastparagraphofthisSection401)andtheTrustee,attheexpenseoftheCompany,shallexecuteproperinstrumentsacknowledgingsatisfactionanddischargeofthisIndentureastosuchserieswhen

(1) either

(A) all Securities of such series theretofore authenticated and delivered and all coupons, if any, appertaining thereto (other than (i) couponsappertainingtoBearerSecuritiessurrenderedforexchangeforRegisteredSecuritiesandmaturingaftersuchexchange,whosesurrenderisnotrequiredorhas beenwaivedas providedin Section 305, (ii) Securities andcoupons of suchseries whichhave beendestroyed, lost or stolen andwhichhavebeenreplacedorpaidasprovidedinSection306,(iii)couponsappertainingtoSecuritiescalledforredemptionandmaturingaftertherelevantRedemptionDate,whosesurrenderhasbeenwaivedasprovidedinSection1006,and(iv)Securitiesandcouponsofsuchseriesforwhosepaymentmoneyhastheretoforebeendepositedintrust withtheTrusteeor anyPayingAgentor segregatedandheldintrust bytheCompanyandthereafter repaidtotheCompany, asprovidedinSection903)havebeendeliveredtotheTrusteeforcancellation;or

29

TableofContents

(B)allSecuritiesofsuchseriesand,inthecaseof(i)or(ii)below,anycouponsappertainingtheretonottheretoforedeliveredtotheTrusteeforcancellation

(i)havebecomedueandpayable,or

(ii)willbecomedueandpayableattheirStatedMaturitywithinoneyear,or

(iii) if redeemable at the optionof the Company, are to becalled for redemptionwithinoneyear under arrangements satisfactory to theTrusteeforthegivingofnoticeofredemptionbytheTrusteeinthename,andattheexpense,oftheCompany,

andtheCompany,inthecaseof(i),(ii)or(iii)above,hasirrevocablydepositedorcausedtobedepositedwiththeTrusteeastrustfundsintrustforsuchpurpose an amount in theCurrency in which the Securities of such series are payable, sufficient to pay and discharge the entire indebtedness on suchSecuritiesnottheretoforedeliveredtotheTrusteeforcancellation,forprincipal(andpremium,ifany)andinterest,ifany,tothedateofsuchdeposit(inthecaseofSecuritieswhichhavebecomedueandpayable)ortotheStatedMaturityorRedemptionDate,asthecasemaybe;

(2)theCompanyhaspaidorcausedtobepaidallothersumspayablehereunderbytheCompany,and

(3)theCompanyhasdeliveredtotheTrusteeanOfficers'CertificateandanOpinionofCounsel,eachstatingthatallconditionsprecedenthereinprovidedforrelatingtothesatisfactionanddischargeofthisIndentureastosuchserieshavebeencompliedwith.

Notwithstanding the satisfaction and discharge of this Indenture, the provisions of Section 905, the obligations of the Company to the Trustee underSection606,theobligationsoftheTrusteetoanyAuthenticatingAgentunderSection611and,ifmoneyshallhavebeendepositedwiththeTrusteepursuanttosubclause(B)ofclause(1)ofthisSection401,theprovisionsofSections113,114,304,305,306,902and903(andanyapplicableprovisionsofArticleTen)andtheobligationsoftheTrusteeunderSection402shallsurvivesuchsatisfactionanddischargeandremaininfullforceandeffect.

SECTION402.ApplicationofTrustMoney.SubjecttotheprovisionsofthelastparagraphofSection903,allmoneydepositedwiththeTrusteepursuanttoSection401shallbeheldintrustandappliedbyit,inaccordancewiththeprovisionsoftheSecurities,thecouponsandthisIndenture,tothepayment,eitherdirectlyorthroughanyPayingAgent(includingtheCompanyactingasitsownPayingAgent)astheTrusteemaydetermine,tothePersonsentitledthereto,oftheprincipal(andpremium,ifany)andinterest,ifany,forwhosepaymentsuchmoneyhasbeendepositedwiththeTrustee;butsuchmoneyneednotbesegregatedfromotherfundsexcepttotheextentrequiredbylaw.

ARTICLEFIVE

REMEDIES

SECTION501.EventsofDefault."EventofDefault,"whereverusedhereinwithrespecttoSecuritiesofanyseries,meansanyoneofthefollowingevents(whateverthereasonforsuchEventofDefaultandwhetheritshallbevoluntaryorinvoluntaryorbeeffectedbyoperationoflaworpursuanttoanyjudgment,decreeororderofanycourtoranyorder,ruleorregulationofanyadministrativeorgovernmentalbody),unlesssucheventisspecificallydeletedormodifiedinorpursuanttoasupplementalindenture,BoardResolutionorOfficers'CertificateestablishingthetermsofsuchseriespursuanttoSection301ofthisIndenture:

(1)defaultinthepaymentoftheprincipalof(orpremium,ifany,on)anySecurityofthatseriesatitsMaturity(otherwisethanpursuanttoasinkingfund);or

(2) default inthepaymentofanyinterest onanySecurityofthat series, oranyrelatedcoupon,whensuchinterest orcouponbecomesdueandpayable,andcontinuanceofsuchdefaultforaperiodof30days;or

(3)defaultinthedepositofanysinkingfundpaymentonanySecurityofthatseries,whenthesamebecomesdueandpayable,andcontinuanceofsuchdefaultforaperiodof30days;or

30

TableofContents

(4)defaultintheperformance,orbreach,ofanycovenantoragreementoftheCompanyinthisIndentureinrespectoftheSecuritiesofthatseries(other than a default in the performance or breach of a covenant or agreement which is specifically dealt with elsewhere in this Section 501), andcontinuance of such default or breach for a period of 90 days after there has been given (and 120 days with respect to a default or breach underSection703),byregisteredorcertifiedmail,totheCompanybytheTrusteeortotheCompanyandtheTrusteebytheHoldersofatleast25%inaggregateprincipalamountoftheSecuritiesofsuchseriesthenOutstanding,awrittennoticespecifyingsuchdefaultorbreachandrequiringittoberemediedandstatingthatsuchnoticeisa"NoticeofDefault"hereunder;or

(5)theCompanypursuanttoorunderorwithinthemeaningofanyBankruptcyLaw:

(i)commencesaproceedingormakesanapplicationseekingaBankruptcyOrder;

(ii)consentstothemakingofaBankruptcyOrderortheinstitutionofanyproceedingseekingthemakingofaBankruptcyOrderagainstit;

(iii)consentstotheappointmentofaCustodianofitorforalloranymaterialpartofitsproperty;

(iv)makesageneralassignmentforthebenefitofitscreditors;

(v)filesanassignmentinbankruptcy;or

(vi)consentstothefilingofanassignmentinbankruptcyortheappointmentofortakingpossessionbyaCustodian;

(6)acourtofcompetentjurisdictioninanyinvoluntarycaseorproceedingmakesaBankruptcyOrderagainsttheCompany,andsuchBankruptcyOrderremainsunstayedandineffectfor90consecutivedays;or

(7) a Custodian shall be appointed out of court with respect to the Company, or with respect to all or any material part of the property of theCompanyandsuchappointmentshallnothavebeenvacated,discharged,orstayedorbondedpendingappealwithin90days,oranyencumbrancershalltake possession of all or anymaterial part of the property of the Companyandsuchpossession shall not have reverted to the Company, as applicable,within90days;or

(8)anyotherEventofDefaultprovidedwithrespecttoSecuritiesofthatseries.

"Bankruptcy Law" means the Federal Bankruptcy Code, Bankruptcy and Insolvency Act (Canada), Companies' Creditors Arrangement Act (Canada),Winding-Up&RestructuringAct(Canada),oranyotherCanadianfederal orprovincial laworanysimilarlawofanyotherjurisdictionrelatingtobankruptcy,insolvency,winding-up,liquidation,dissolution,reorganizationorreliefofdebtors.

"Custodian" means receiver, trustee, custodian, conservator, provisional liquidator, liquidator, rehabilitator, administrator, controller, business rescuepractitionerorsimilarofficerwithlikepowers.

"BankruptcyOrder"meansanycourtordermadeinaproceedingpursuanttoorwithinthemeaningofanyBankruptcyLaw,containinganadjudicationofbankruptcyorinsolvency,orprovidingforliquidation,winding-up,dissolutionorreorganization,orappointingaCustodianofadebtororofalloranymaterialpartofadebtor'sproperty,orprovidingforthestaying,arrangement,adjustmentorcompromiseofindebtednessorotherreliefofadebtor.

SECTION502.AccelerationofMaturity;RescissionandAnnulment.ExceptasotherwiseprovidedpursuanttoSection301withrespecttoaseriesofSecurities,ifanEventofDefaultdescribedinclause(1),(2),(3),(4)or(8)ofSection501withrespecttoSecuritiesofanyseriesatthetimeOutstandingoccursandiscontinuing,thenineverysuchcasetheTrusteeortheHoldersofnotlessthan25%inaggregateprincipalamountoftheOutstandingSecuritiesofthatseriesmay declare the principal amount (or, if the Securities of that series are Original Issue Discount Securities, such portion of the principal amount as may bespecified in the terms of such series) of all of the Outstanding Securities of that series and any accrued but unpaid interest thereon to be due and payableimmediately,byanoticeinwritingtotheCompany(andtotheTrusteeifgivenbyHolders),anduponanysuchdeclarationsuchprincipalamount(orspecifiedportionthereof)andanyaccruedbutunpaidinterestthereonshallbecomeimmediatelydueandpayable.IfanEventofDefaultdescribedin

31

TableofContents

clause(5),(6)or(7)ofSection501occursandiscontinuing,thenineverysuchtheprincipalamountofalloftheSecuritiesofthatseriesthenoutstandingshallautomatically,andwithoutanydeclarationoranyotheractiononthepartoftheTrusteeortheHolders,becomedueandpayableimmediately.

AtanytimeafteradeclarationofaccelerationwithrespecttoSecuritiesofanyserieshasbeenmade,andbeforeajudgmentordecreeforpaymentofthemoneyduehasbeenobtainedbytheTrusteeashereinafterprovidedinthisArticleFive,theEventofDefaultgivingrisetosuchdeclarationofaccelerationshall,withoutfurtheract,bedeemedtohavebeenwaived,andsuchdeclarationanditsconsequencesshall,withoutfurtheract,bedeemedtohavebeenrescindedandannulled,if:

(1)theCompanyhaspaidordepositedwiththeTrusteeasumsufficienttopayintheCurrencyinwhichtheSecuritiesofsuchseriesarepayable(exceptasotherwisespecifiedpursuanttoSection301fortheSecuritiesofsuchseriesandexcept, if applicable, asprovidedinSections312(b), 312(d)and312(e)),

(A)alloverdueinterest,ifany,onallOutstandingSecuritiesofthatseriesandanyrelatedcoupons,

(B)allunpaidprincipalof(andpremium,ifany,on)allOutstandingSecuritiesofthatserieswhichhasbecomedueotherwisethanbysuchdeclarationofacceleration,andinterestonsuchunpaidprincipalattherateorratesprescribedthereforinsuchSecurities,

(C)totheextentlawful,interestonoverdueinterest,ifany,attherateorratesprescribedthereforinsuchSecurities,and

(D) all sumspaid or advancedbythe Trustee hereunder andthe reasonable compensation, expenses, disbursements andadvances of theTrustee,itsagentsandcounsel;and

(2)allEventsofDefaultwithrespecttoSecuritiesofthatseries,otherthanthenon-paymentofamountsofprincipaloforinterestonSecuritiesofthatserieswhichhavebecomeduesolelybysuchdeclarationofacceleration,havebeencuredorwaivedasprovidedinSection513.

Nosuchrescissionshallaffectanysubsequentdefaultorimpairanyrightconsequentthereon.

SECTION503.CollectionofIndebtednessandSuitsforEnforcementbyTrustee.TheCompanycovenantsthatif:

(1)defaultismadeinthepaymentofanyinstallmentofinterestonanySecurityandanyrelatedcouponwhensuchinterestbecomesdueandpayableandsuchdefaultcontinuesforaperiodof30days,

(2)defaultismadeinthepaymentoftheprincipalof(orpremium,ifany,on)anySecurityattheMaturitythereof(otherthanpursuanttothesinkingfund),or

(3)defaultismadeinthepaymentofanysinkingfundpaymentonanySecuritywhensuchbecomesdueandpayableandsuchdefaultcontinuesforaperiodof30days,

thentheCompanywill,upondemandoftheTrustee,paytotheTrusteeforthebenefitoftheHoldersofsuchSecuritiesandcoupons,thewholeamountthendueandpayableonsuchSecuritiesandcouponsforprincipal(andpremium,ifany)andinterest,ifany,andinterestonanyoverdueprincipal(andpremium,ifany)andtotheextentlawfulonanyoverdueinterest,attherateorratesprescribedthereforinsuchSecurities,and,inadditionthereto,suchfurtheramountasshallbesufficienttocoverthecostsandexpensesofcollection,includingthereasonablecompensation,expenses,disbursementsandadvancesoftheTrustee,itsagentsandcounsel.

IftheCompanyfailstopaysuchamountsforthwithuponsuchdemand,theTrustee,initsownnameastrusteeofanexpresstrust,mayinstituteajudicialproceedingforthecollectionofthesumssodueandunpaid,mayprosecutesuchproceedingtojudgmentorfinaldecreeandmayenforcethesameagainsttheCompanyoranyotherobligoruponsuchSecuritiesandcollectthemoneysadjudgedordecreedtobepayableinthemannerprovidedbylawoutofthepropertyoftheCompanyoranyotherobligoruponsuchSecurities,whereversituated.

32

TableofContents

IfanEventofDefaultwithrespecttoSecuritiesofanyseriesoccursandiscontinuing,theTrusteemayinitsdiscretionproceedtoprotectandenforceitsrightsandtherightsoftheHoldersofSecuritiesofsuchseriesbysuchappropriatejudicialproceedingsastheTrusteeshalldeemmosteffectualtoprotectandenforceanysuchrights,whetherforthespecificenforcementofanycovenantoragreementinthisIndentureorinaidoftheexerciseofanypowergrantedherein,ortoenforceanyotherproperremedy.

SECTION504. TrusteeMayFile Proofs of Claim . Incaseof thependencyof anyreceivership, insolvency, liquidation, bankruptcy, reorganization,arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of theCompanyorofsuchotherobligorortheircreditors,theTrustee(irrespectiveofwhethertheprincipaloftheSecuritiesshallthenbedueandpayableasthereinexpressed or by declaration or otherwise and irrespective ofwhether the Trustee shall have made any demand on the Company for the payment of overdueprincipal,premium,ifany,orinterest)shallbeentitledandempowered,byinterventioninsuchproceedingorotherwise,

(i) to fileandproveaclaimforthewholeamountofprincipal (andpremium,if any), orsuchportionoftheprincipal amountofanyseriesofOriginalIssueDiscountSecuritiesorIndexedSecuritiesasmaybespecifiedinthetermsofsuchseries,andinterest,ifany,owingandunpaidinrespectoftheSecuritiesandtofilesuchotherpapersordocumentsasmaybenecessaryoradvisableinordertohavetheclaimsoftheTrustee(includinganyclaimforthereasonablecompensation,expenses,disbursementsandadvancesoftheTrustee,itsagentsandcounsel)andoftheHoldersallowedinsuchjudicialproceeding,and

(ii)tocollectandreceiveanymoneysorotherpropertypayableordeliverableonanysuchclaimsandtodistributethesame;

andanycustodian,receiver,assignee,trustee,liquidator,sequestratororothersimilarofficialinanysuchjudicialproceedingisherebyauthorizedbyeachHoldertomakesuchpaymentstotheTrusteeand,intheeventthattheTrusteeshallconsenttothemakingofsuchpaymentsdirectlytotheHolders,topaytotheTrusteeanyamountdueitforthereasonablecompensation,expenses,disbursementsandadvancesoftheTrustee,itsagentsandcounsel,andanyotheramountsduetheTrusteeunderSection606.

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan ofreorganization,arrangement,adjustmentorcompositionaffectingtheSecuritiesortherightsofanyHolderthereofortoauthorizetheTrusteetovoteinrespectoftheclaimofanyHolderinanysuchproceeding.

SECTION505. TrusteeMayEnforceClaimsWithoutPossessionofSecurities . AllrightsofactionandclaimsunderthisIndenture, theSecuritiesorcouponsmaybeprosecutedandenforcedbytheTrusteewithoutthepossessionofanyoftheSecuritiesorcouponsortheproductionthereofinanyproceedingrelatingthereto,andanysuchproceedinginstitutedbytheTrusteeshallbebroughtinitsownnameastrusteeofanexpresstrust,andanyrecoveryofjudgmentshall, after provisionfor the payment of the reasonablecompensation, expenses, disbursements andadvances of the Trustee, its agents andcounsel, be for theratablebenefitoftheHoldersoftheSecuritiesandcouponsinrespectofwhichsuchjudgmenthasbeenrecovered.

SECTION506.ApplicationofMoneyCollected.AnymoneycollectedbytheTrusteepursuanttothisArticleFiveshallbeappliedinthefollowingorder,at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any) or interest, if any, uponpresentationoftheSecuritiesorcoupons,orboth,asthecasemaybe,andthenotationthereonofthepaymentifonlypartiallypaidanduponsurrenderthereofiffullypaid:

First:TothepaymentofallamountsduetheTrusteeunderSection606;

Second:Tothepaymentoftheamountsthendueandunpaidforprincipalof(andpremium,ifany)andinterest,ifany,ontheSecuritiesandcouponsinrespectofwhichorforthebenefitofwhichsuchmoneyhasbeencollected,ratably,withoutpreferenceorpriorityofanykind,accordingtotheamountsdueandpayableonsuchSecuritiesandcouponsforprincipal(andpremium,ifany)andinterest,ifany,respectively;and

Third:Thebalance,ifany,tothePersonorPersonsentitledthereto.

33

TableofContents

SECTION507. LimitationonSuits . NoHolderofanySecurityofanyseriesoranyrelatedcouponsshall haveanyrighttoinstituteanyproceeding,judicialorotherwise,withrespecttothisIndentureortheSecurities,orfortheappointmentofareceiverortrustee,orforanyotherremedyhereunder,unless

(1)suchHolderhaspreviouslygivenwrittennoticetotheTrusteeofacontinuingEventofDefaultwithrespecttotheSecuritiesofthatseries;

(2)theHoldersofnotlessthan25%inaggregateprincipalamountoftheOutstandingSecuritiesofsuchseriesshallhavemadewrittenrequesttotheTrusteetoinstituteproceedingsinrespectofsuchEventofDefaultinitsownnameasTrusteehereunder;

(3)suchHolderorHoldershaveofferedtotheTrusteereasonableindemnityagainstthecosts,expensesandliabilitiestobeincurredincompliancewithsuchrequest;

(4)theTrusteefor60daysafteritsreceiptofsuchnotice,requestandofferofindemnityhasfailedtoinstituteanysuchproceeding;and

(5)nodirectioninconsistentwithsuchwrittenrequesthasbeengiventotheTrusteeduringsuch60-dayperiodbytheHoldersofamajorityormoreinprincipalamountoftheOutstandingSecuritiesofsuchseries;

itbeingunderstoodandintendedthatnooneormoreoftheHoldersofSecuritiesofsuchseriesshallhaveanyrightinanymannerwhateverbyhis,her,itsortheiractiontoenforceanyrighthereunder,exceptonthemannerhereinprovided,andthateveryaction,suitorproceedingatlaworinequityshallbeinstituted,hadandmaintainedinthemannerhereinprovidedandfortheequalbenefitofallHoldersoftheOutstandingSecuritiesofsuchseries;provided,however,thatnothinginthisIndentureorintheSecuritiesofsuchseriesshallaffectorimpairtheobligationoftheCompany,whichisabsoluteandunconditional,topaytheprincipalof,premium,ifany,andinterestontheSecuritiesofsuchseriestotherespectiveHoldersofsuchSecuritiesattherespectiveduedatesinsuchSecuritiesstated,oraffectorimpairtheright,whichisalsoabsoluteandunconditional,ofsuchHolderstoinstitutesuittoenforcethepaymentthereof.

SECTION508.UnconditionalRightofHolderstoReceivePrincipal,PremiumandInterest.NotwithstandinganyotherprovisioninthisIndenture,theHolderofanySecurityshallhavetheright,whichisabsoluteandunconditional,toreceivepayment,asprovidedherein(including,ifapplicable,ArticleThirteen)andinsuchSecurityoftheprincipalof(andpremium,ifany)and(subjecttoSection307)interest,ifany,on,suchSecurityorpaymentofsuchcouponontherespectiveStatedMaturitiesexpressedinsuchSecurityorcoupon(or,inthecaseofredemption,ontheRedemptionDateor,inthecaseofrepaymentattheoptionoftheHolderascontemplatedbyArticleTwelve,ontheRepaymentDate)andtoinstitutesuitfortheenforcementofanysuchpayment,andsuchrightsshallnotbeimpairedwithouttheconsentofsuchHolder.

SECTION509.RestorationofRightsandRemedies.IftheTrusteeoranyHolderhasinstitutedanyproceedingtoenforceanyrightorremedyunderthisIndentureandsuchproceedinghasbeendiscontinuedorabandonedforanyreason,orhasbeendeterminedadverselytotheTrusteeortosuchHolder,thenandineverysuchcase,subjecttoanydeterminationinsuchproceeding,theCompany,theTrusteeandtheHoldersofSecuritiesandcouponsshallberestoredseverallyand respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no suchproceedinghadbeeninstituted.

SECTION510.RightsandRemediesCumulative.Exceptasotherwiseprovidedwithrespecttothereplacementorpaymentofmutilated,destroyed,lostorstolenSecuritiesorcouponsinthelastparagraphofSection306,norightorremedyhereinconferreduponorreservedtotheTrusteeortotheHoldersofSecuritiesorcouponsisintendedtobeexclusiveofanyotherrightorremedy,andeveryrightandremedyshall,totheextentpermittedbylaw,becumulativeandinadditiontoeveryotherrightandremedygivenhereunderornoworhereafterexistingatlaworinequityorotherwise.Theassertionoremploymentofanyrightorremedyhereunder,orotherwise,shallnot,totheextentpermittedbylaw,preventtheconcurrentassertionoremploymentofanyotherappropriaterightorremedy.

SECTION511.DelayorOmissionNotWaiver.NodelayoromissionoftheTrusteeorofanyHolderofanySecurityorcoupontoexerciseanyrightorremedyaccruinguponanyEventofDefaultshallimpairanysuch

34

TableofContents

rightorremedyorconstituteawaiverofanysuchEventofDefaultoranacquiescencetherein.EveryrightandremedygivenbythisArticleFiveorbylawtotheTrusteeortotheHoldersmaybeexercisedfromtimetotime,andasoftenasmaybedeemedexpedient,bytheTrusteeorbytheHolders,asthecasemaybe.

SECTION512.ControlbyHolders.TheHoldersofnotlessthanamajorityinprincipalamountoftheOutstandingSecuritiesofanyseriesshallhavetherighttodirectthetime,methodandplaceofconductinganyproceedingforanyremedyavailabletotheTrustee,orexercisinganytrustorpowerconferredontheTrustee,withrespecttotheOutstandingSecuritiesofsuchseries,providedineachcase

(1)suchdirectionshallnotbeinconflictwithanyruleoflaworwiththisIndenture,

(2)theTrusteemaytakeanyotheractiondeemedproperbytheTrusteewhichisnotinconsistentwithsuchdirection,and

(3)theTrusteeneednottakeanyactionwhichmightexposetheTrusteetopersonalliabilityorbeundulyprejudicialtotheHoldersofOutstandingSecuritiesnotjoiningtherein.

SECTION513.WaiverofPastDefaults.SubjecttoSection502,theHoldersofnotlessthanamajorityinprincipalamountoftheOutstandingSecuritiesofaseriesmayonbehalfoftheHoldersofalltheOutstandingSecuritiesofsuchserieswaiveanysuchpastDefault,anditsconsequences,exceptaDefault

(1)inrespectofthepaymentoftheprincipalof(orpremium,ifany)orinterest,ifany,onanySecurityoranyrelatedcoupon,or

(2) in respect of a covenant or provisionwhichunder Article Eight cannot bemodified or amendedwithout the consent of the Holder of eachOutstandingSecurityofsuchaffectedseries.

Uponanysuchwaiver, anysuchDefault shall ceasetoexist, andanyEvent of Default arisingtherefromshall bedeemedtohavebeencured, for everypurposeofthisIndenture;butnosuchwaivershallextendtoanysubsequentorotherDefaultorEventofDefaultorimpairanyrightconsequentthereon.

SECTION514.WaiverofStayorExtensionLaws.TheCompanycovenants(totheextentthatitmaylawfullydoso)thatitwillnotatanytimeinsistupon,orplead,orinanymannerwhatsoeverclaimortakethebenefitoradvantageof,anystayorextensionlawwhereverenacted,noworatanytimehereafterinforce,whichmayaffectthecovenantsortheperformanceofthisIndenture;andtheCompany(totheextentthatitmaylawfullydoso)herebyexpresslywaivesallbenefitoradvantageofanysuchlawandcovenantsthatitwillnothinder,delayorimpedetheexecutionofanypowerhereingrantedtotheTrustee,butwillsufferandpermittheexecutionofeverysuchpowerasthoughnosuchlawhadbeenenacted.

SECTION515.UndertakingforCosts.AllpartiestothisIndentureagree,andeachHolderofanySecuritybyitsacceptancethereofshallbedeemedtohaveagreed, that anycourt mayinits discretionrequire, inanysuit fortheenforcementofanyright orremedyunderthis Indenture, orinanysuit against theTrusteeforanyactiontakenoromittedbyitasTrustee,thefilingbyanypartylitigantinsuchsuitofanyundertakingtopaythecostsofsuchsuit,andthatsuchcourtmayinitsdiscretionassessreasonablecosts,includingreasonableattorneys'fees,againstanypartylitigantinsuchsuithavingdueregardtothemeritsandgoodfaithoftheclaimsordefensesmadebysuchpartylitigant;buttheprovisionsofthisSection515shallnotapplytoanysuitinstitutedbytheTrustee,toanysuitinstitutedbyanyHolder,orgroupofHolders,holdingintheaggregatemorethan10%inprincipalamountoftheOutstandingSecuritiesofanyseries,ortoanysuitinstitutedbyanyHolderfortheenforcementofthepaymentoftheprincipalof(orpremium,ifany)orinterestonanySecurityonoraftertherespectiveStatedMaturitiesexpressedinsuchSecurity(or,inthecaseofredemption,onoraftertheRedemptionDateor,inthecaseofrepaymentattheoptionofHoldersascontemplatedbyArticleTwelve,onoraftertheapplicableRepaymentDate).

ARTICLESIX

THETRUSTEE

SECTION601.NoticeofDefaults.Within90daysaftertheoccurrenceofanyDefaulthereunderwithrespecttotheSecuritiesofanyseries,theTrusteeshalltransmitinthemannerandtotheextentprovidedinTIASection313(c),noticeofsuchdefaulthereunderknowntotheTrustee,unlesssuchDefaultshallhavebeencured

35

TableofContents

orwaived;provided,however,that,exceptinthecaseofaDefaultinthepaymentoftheprincipalof(orpremium,ifany)orinterest,ifany,onanySecurityofsuchseriesorinthepaymentofanysinkingfundinstallmentwithrespecttoSecuritiesofsuchseries,theTrusteeshallbeprotectedinwithholdingsuchnoticeifandsolongastheboardofdirectors,theexecutivecommitteeoratrustcommitteeofdirectorsand/orResponsibleOfficersoftheTrusteeingoodfaithdeterminethatthewithholdingofsuchnoticeisintheinterestoftheHoldersofSecuritiesofsuchseriesandanyrelatedcoupons;andprovidedfurtherthatinthecaseofanyDefaultofthecharacterspecifiedinSection501(4)or(8)withrespecttoSecuritiesofsuchseries,nosuchnoticetoHoldersshallbegivenuntilatleast30daysaftertheoccurrencethereof.

SECTION602.CertainRightsofTrustee.SubjecttotheprovisionsofTIASections315(a)through315(d):

(1)theTrusteemayrelyandshallbeprotectedinactingorrefrainingfromactinguponanyresolution,certificate,statement,instrument,opinion,report,notice,request, direction, consent, order, bond, debenture,note, other evidence of indebtedness or other paper or document believed by it to begenuineandtohavebeensignedorpresentedbytheproperpartyorparties;

(2)anyrequestordirectionoftheCompanymentionedhereinshallbesufficientlyevidencedbyaCompanyRequestorCompanyOrderandanyresolutionoftheBoardofDirectorsmaybesufficientlyevidencedbyaBoardResolution;

(3)wheneverintheadministrationofthisIndenturetheTrusteeshalldeemitdesirablethatamatterbeprovedorestablishedpriortotaking,sufferingoromittinganyactionhereunder,theTrustee(unlessotherevidencebehereinspecificallyprescribed)may,intheabsenceofbadfaithonitspart,relyuponanOfficers'Certificate;

(4)theTrusteemayconsultwithcounselandtheadviceofsuchcounseloranyOpinionofCounselshallbefullandcompleteauthorizationandprotectioninrespectofanyactiontaken,sufferedoromittedbyithereunderingoodfaithandinreliancethereon;

(5)exceptduringadefault,theTrusteeshallbeundernoobligationtoexerciseanyoftherightsorpowersvestedinitbythisIndentureattherequestordirectionofanyoftheHoldersofSecuritiesofanyseriesoranyrelatedcouponspursuanttothisIndenture,unlesssuchHoldersshallhaveofferedtotheTrustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such requestordirection;

(6) theTrusteeshall notbeboundtomakeanyinvestigationintothefactsormattersstatedinanyresolution, certificate, statement, instrument,opinion,report,notice,request,direction,consent,order,bond,debenture,note,otherevidenceofindebtednessorotherpaperordocument,buttheTrustee,initsdiscretion,maymakesuchfurtherinquiryorinvestigationintosuchfactsormattersasitmayseefit,and,iftheTrusteeshalldeterminetomakesuchfurtherinquiryorinvestigation,itshallbeentitledtoexaminethebooks,recordsandpremisesoftheCompany,personallyorbyagentorattorney;

(7)theTrusteemayexecuteanyofthetrustsorpowershereunderorperformanydutieshereundereitherdirectlyorbyorthroughagentsorattorneysandtheTrusteeshallnotberesponsibleforanymisconductornegligenceonthepartofanyagentorattorneyappointedwithduecarebyithereunder;and

(8) theTrusteeshall not beliableforanyactiontaken, sufferedoromittedbyit ingoodfaithandbelievedbyit tobeauthorizedorwithinthediscretionorrightsorpowersconferreduponitbythisIndenture.

TheTrusteeshallnotberequiredtoexpendorriskitsownfundsorotherwiseincuranyfinancialliabilityintheperformanceofanyofitsdutieshereunder,orintheexerciseofanyofitsrightsorpowersifitshallhavereasonablegroundsforbelievingthatrepaymentofsuchfundsoradequateindemnityagainstsuchriskorliabilityisnotreasonablyassuredtoit.

SECTION603.TrusteeNotResponsibleforRecitalsorIssuanceofSecurities.TherecitalscontainedhereinandintheSecurities,exceptfortheTrustee'scertificatesofauthentication,andinanycouponsshallbetakenasthestatementsoftheCompany,andneithertheTrusteenoranyAuthenticatingAgentassumesany

36

TableofContents

responsibilityfortheircorrectness.TheTrusteemakesnorepresentationsastothevalidityorsufficiencyofthisIndentureoroftheSecuritiesorcoupons,exceptthattheTrusteerepresentsthatitisdulyauthorizedtoexecuteanddeliverthisIndenture,authenticatetheSecuritiesandperformitsobligationshereunderandthatthestatementsmadebyitinanyStatementofEligibilityonFormT-1suppliedtotheCompanyaretrueandaccurate,subjecttothequalificationssetforththerein.NeithertheTrusteenoranyAuthenticatingAgentshallbeaccountablefortheuseorapplicationbytheCompanyofSecuritiesortheproceedsthereof.

SECTION604.MayHoldSecurities.TheTrustee,anyAuthenticatingAgent,anyPayingAgent,anySecurityRegistraroranyotheragentoftheCompanyoroftheTrustee,initsindividualoranyothercapacity,maybecometheownerorpledgeeofSecuritiesandcouponsand,subjecttoTIASections310(b)and311,mayotherwisedealwiththeCompanywiththesamerightsitwouldhaveifitwerenotTrustee,AuthenticatingAgent,PayingAgent,SecurityRegistrarorsuchotheragent.

SECTION605.MoneyHeldinTrust.MoneyheldbytheTrusteeintrusthereunderneednotbesegregatedfromotherfundsexcepttotheextentrequiredbylaw.TheTrusteeshallbeundernoliabilityforinterestonanymoneyreceivedbyithereunderexceptasotherwiseagreedwiththeCompany.

SECTION606.CompensationandReimbursement.TheCompanyagrees:

(1)topaytotheTrusteefromtimetotimesuchreasonablecompensationastheCompanyandtheTrusteeshallfromtimetotimeagreeinwriting,forallservicesrenderedbyithereunder(whichcompensationshallnotbelimitedbyanyprovisionoflawinregardtothecompensationofatrusteeofanexpresstrust);

(2)exceptasotherwiseexpresslyprovidedherein,toreimbursetheTrusteeuponitsrequestforallreasonableexpenses,disbursementsandadvancesincurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses anddisbursementsofitsagentsandcounsel),exceptanysuchexpense,disbursementoradvanceasmaybeattributabletoitsnegligenceorbadfaith;and

(3)toindemnifytheTrusteefor,andtoholditharmlessagainst,anyloss,liabilityorexpenseincurredwithoutnegligenceorbadfaithonitspart,arisingoutoforinconnectionwiththeacceptanceoradministrationofthetrustortrustshereunder,includingthecostsandexpensesofdefendingitselfagainstanyclaimorliabilityinconnectionwiththeexerciseorperformanceofanyofitspowersordutieshereunder.

TheobligationsoftheCompanyunderthisSection606tocompensatetheTrustee,topayorreimbursetheTrusteeforexpenses,disbursementsandadvancesandtoindemnifyandholdharmlesstheTrusteeshallconstituteadditionalindebtednesshereunderandshallsurvivethesatisfactionanddischargeofthisIndenture.Assecurity for theperformanceof suchobligationsof theCompany, theTrusteeshall haveaclaimprior totheSecurities uponall propertyandfundsheldorcollected by the Trustee as such, except funds held in trust for the payment of principal of (or premium, if any) or interest, if any, on particular Securities oranycoupons.

WhentheTrusteeincursexpensesorrendersservicesinconnectionwithanEventofDefaultspecifiedinSection501(5),(6)or(7),theexpenses(includingreasonable charges and expense of its counsel) of and the compensation for such services are intended to constitute expenses of administration under anyapplicablebankruptcy,insolvencyorothersimilarlaw.

TheprovisionsofthisSection606shallsurvivetheterminationofthisIndenture.

SECTION607.CorporateTrusteeRequired;Eligibility;ConflictingInterests.TheTrusteeshallcomplywiththetermsofSection310(b)oftheTIA.Thereshall be at all times a Trustee hereunder which shall be eligible to act as Trustee under TIASection 310(a)(1) and shall have a combined capital andsurplus(togetherwiththatofitsparent,ifapplicable)ofatleast$50,000,000.Ifsuchcorporationpublishesreportsofconditionatleastannually,pursuanttolawortotherequirements ofFederal, State, territorial or District of Columbia supervising or examining authority, then for the purposes of this Section 607, the combinedcapitalandsurplusofsuchcorporationshallbedeemedtobeitscombinedcapitalandsurplusassetforthinitsmostrecentreportofconditionsopublished.IfatanytimetheTrusteeshallceasetobeeligibleinaccordancewiththeprovisionsof

37

TableofContents

thisSection607,itshallresignimmediatelyinthemannerandwiththeeffecthereinafterspecifiedinthisArticleSix.

SECTION608.ResignationandRemoval;AppointmentofSuccessor.

(a) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article Six shall become effective until theacceptanceofappointmentbythesuccessorTrusteeinaccordancewiththeapplicablerequirementsofSection609.

(b)TheTrusteemayresignatanytimewithrespecttotheSecuritiesofoneormoreseriesbygivingwrittennoticethereoftotheCompany.Iftheinstrumentof acceptanceby a successor Trustee required by Section 609 shall not have been delivered to the Trustee within 30 days after the giving of such notice ofresignation, theresigningTrusteemaypetition anycourt of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities ofsuchseries.

(c)TheTrusteemayberemovedatanytimewithrespecttotheSecuritiesofanyseriesbyActoftheHoldersofnotlessthanamajorityinprincipalamountoftheOutstandingSecuritiesofsuchseries,deliveredtotheTrusteeandtotheCompany.

(d)Ifatanytime:

(1)theTrusteeshallfailtocomplywiththeprovisionsofTIASection310(b)afterwrittenrequestthereforbyeithertheCompanyorbyanyHolderwhohasbeenabonafideHolderofaSecurityforatleastsixmonths,or

(2)theTrusteeshallceasetobeeligibleunderSection607andshallfailtoresignafterwrittenrequestthereforbyeithertheCompanyorbyanyHolderwhohasbeenabonafideHolderofaSecurityforatleastsixmonths,or

(3)theTrusteeshallbecomeincapableofactingorshallbeadjudgedabankruptorinsolventorareceiveroftheTrusteeorofitspropertyshallbeappointed or anypublic officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservationorliquidation,

then,inanysuchcase,(i)eithertheCompany,byaBoardResolution,mayremovetheTrusteewithrespecttoallSecuritiesortheSecuritiesofsuchseries,or(ii) subject to TIASection 315(e), anyHolder whohas been a bona fide Holder of a Security for at least six months may, onbehalf of himself andall otherssimilarlysituated,petitionanycourtofcompetentjurisdictionfortheremovaloftheTrusteewithrespecttoallSecuritiesofsuchseriesandtheappointmentofasuccessorTrusteeorTrustees.

(e)IftheTrusteeshallresign,beremovedorbecomeincapableofacting,orifavacancyshalloccurintheofficeofTrusteeforanycause,withrespecttotheSecuritiesofoneormoreseries,theCompany,byaBoardResolution,shallpromptlyappointasuccessorTrusteeorTrusteeswithrespecttotheSecuritiesofthatorthoseseries(itbeingunderstoodthatanysuchsuccessorTrusteemaybeappointedwithrespecttotheSecuritiesofoneormoreorallofsuchseriesandthatatanytimethereshallbeonlyoneTrusteewithrespecttotheSecuritiesofanyparticularseries).If,withinoneyearaftersuchresignation,removalorincapability,ortheoccurrenceofsuchvacancy,asuccessorTrusteewithrespecttotheSecuritiesofanyseriesshallbeappointedbyActoftheHoldersofamajorityinprincipalamountoftheOutstandingSecuritiesofsuchseriesdeliveredtotheCompanyandtheretiringTrustee,thesuccessorTrusteesoappointedshall,forthwithuponitsacceptance of such appointment, become the successor Trustee with respect to the Securities of such series and to that extent supersede the successor TrusteeappointedbytheCompany.IfnosuccessorTrusteewithrespecttotheSecuritiesofanyseriesshallhavebeensoappointedbytheCompanyortheHoldersandacceptedappointmentinthemannerhereinafterprovided,anyHolderwhohasbeenabonafideHolderofaSecurityofsuchseriesforatleastsixmonthsmay,onbehalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to theSecuritiesofsuchseries.

(f)TheCompanyshallgivenoticeofeachresignationandeachremovaloftheTrusteewithrespecttotheSecuritiesofanyseriesandeachappointmentofasuccessorTrusteewithrespecttotheSecuritiesofanyseriestotheHoldersofSecuritiesofsuchseriesinthemannerprovidedforinSection106.Eachnoticeshallinclude

38

TableofContents

thenameofthesuccessorTrusteewithrespecttotheSecuritiesofsuchseriesandtheaddressofitsCorporateTrustOffice.

SECTION609.AcceptanceofAppointmentbySuccessor.

(a) IncaseoftheappointmenthereunderofasuccessorTrusteewithrespecttoall Securities, everysuchsuccessorTrusteesoappointedshall execute,acknowledgeanddelivertotheCompanyandtotheretiringTrusteeaninstrumentacceptingsuchappointment,andthereupontheresignationorremovaloftheretiringTrusteeshallbecomeeffectiveandsuchsuccessorTrustee,withoutanyfurtheract,deedorconveyance,shallbecomevestedwithalltherights,powers,trusts andduties of theretiringTrustee; but, ontherequest of theCompanyor the successorTrustee, suchretiringTrusteeshall, uponpaymentof its charges,executeanddeliveraninstrumenttransferringtosuchsuccessorTrusteealltherights,powersandtrustsoftheretiringTrusteeandshalldulyassign,transferanddelivertosuchsuccessorTrusteeallpropertyandmoneyheldbysuchretiringTrusteehereunder.

(b)IncaseoftheappointmenthereunderofasuccessorTrusteewithrespecttotheSecuritiesofoneormore(butnotall)series,theCompany,theretiringTrusteeandeachsuccessorTrusteewithrespecttotheSecuritiesofoneormoreseriesshallexecuteanddeliveranindenturesupplementalheretowhereineachsuccessorTrusteeshallacceptsuchappointmentandwhich(1)shallcontainsuchprovisionsasshallbenecessaryordesirabletotransferandconfirmto,andtovest in, eachsuccessor Trusteeall therights, powers, trusts andduties of theretiringTrustee withrespect to theSecurities of that or thoseseries towhichtheappointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall bedeemednecessaryordesirabletoconfirmthatalltherights,powers,trustsanddutiesoftheretiringTrusteewithrespecttotheSecuritiesofthatorthoseseriesastowhichtheretiringTrusteeisnotretiringshallcontinuetobevestedintheretiringTrustee,and(3)shalladdtoorchangeanyoftheprovisionsofthisIndentureasshallbenecessarytoprovidefororfacilitatetheadministrationofthetrustshereunderbymorethanoneTrustee,itbeingunderstoodthatnothinghereinorinsuchsupplementalindentureshallconstitutesuchTrusteesco-trusteesofthesametrustandthateachsuchTrusteeshallbetrusteeofatrustortrustshereunderseparateandapartfromanytrustortrustshereunderadministeredbyanyothersuchTrustee;andupontheexecutionanddeliveryofsuchsupplementalindenturetheresignationorremovaloftheretiringTrusteeshallbecomeeffectivetotheextentprovidedthereinandeachsuchsuccessorTrustee,withoutanyfurtheract,deedorconveyance,shallbecomevestedwithalltherights,powers,trustsanddutiesoftheretiringTrusteewithrespecttotheSecuritiesofthatorthoseseriestowhichtheappointmentofsuchsuccessorTrusteerelates;but,onrequestoftheCompanyoranysuccessorTrustee,suchretiringTrusteeshalldulyassign,transferanddelivertosuchsuccessorTrusteeallpropertyandmoneyheldbysuchretiringTrusteehereunderwithrespecttotheSecuritiesofthatorthoseseriestowhichtheappointmentofsuchsuccessorTrusteerelates.WheneverthereisasuccessorTrusteewithrespecttooneormore(butlessthanall)seriesofsecuritiesissuedpursuanttothisIndenture,theterms"Indenture"and"Securities"shallhavethemeaningsspecifiedintheprovisostotherespectivedefinitionsofthosetermsinSection101whichcontemplatesuchsituation.

(c)UponrequestofanysuchsuccessorTrustee,theCompanyshallexecuteanyandallinstrumentsformorefullyandcertainlyvestinginandconfirmingtosuchsuccessorTrusteeallrights,powersandtrustsreferredtoinparagraph(b)or(c)ofthisSection609,asthecasemaybe.

(d)NosuccessorTrusteeshallacceptitsappointmentunlessatthetimeofsuchacceptancesuchsuccessorTrusteeshallbequalifiedandeligibleunderthisArticleSix.

SECTION610.Merger,Conversion,ConsolidationorSuccessiontoBusiness.AnycorporationintowhichtheTrusteemaybemergedorconvertedorwith which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or anycorporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided suchcorporationshallbeotherwisequalifiedandeligibleunderthisArticleSix,withouttheexecutionorfilingofanypaperoranyfurtheractonthepartofanyoftheparties hereto. In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion orconsolidationtosuchauthenticatingTrusteemayadoptsuchauthenticationanddelivertheSecuritiessoauthenticatedwiththesameeffect asifsuchsuccessorTrusteehaditselfauthenticatedsuchSecurities.IncaseanyoftheSecuritiesshallnothavebeenauthenticatedbysuchpredecessorTrustee,anysuccessorTrusteemay

39

TableofContents

authenticatesuchSecuritieseitherinthenameofanypredecessorhereunderorinthenameofthesuccessorTrustee.InallsuchcasessuchcertificatesshallhavethefullforceandeffectwhichthisIndentureprovidesforthecertificateofauthenticationoftheTrustee;provided,however,thattherighttoadoptthecertificateofauthenticationofanypredecessorTrusteeortoauthenticateSecuritiesinthenameofanypredecessorTrusteeshallapplyonlytoitssuccessororsuccessorsbymerger,conversionorconsolidation.

SECTION 611. Appointmentof Authenticating Agent . At any time when any of the Securities remain Outstanding, the Trustee may appoint anAuthenticatingAgentorAgentswithrespecttooneormoreseriesofSecuritieswhichshallbeauthorizedtoactonbehalfoftheTrusteetoauthenticateSecuritiesofsuchseriesandtheTrusteeshall givewrittennoticeofsuchappointmenttoall HoldersofSecuritiesoftheserieswithrespecttowhichsuchAuthenticatingAgentwillserve,inthemannerprovidedforinSection106.SecuritiessoauthenticatedshallbeentitledtothebenefitsofthisIndentureandshallbevalidandobligatory for all purposes as if authenticated by the Trustee hereunder. Any such appointment shall be evidenced by an instrument in writing signed by aResponsibleOfficeroftheTrustee,andacopyofsuchinstrumentshallbepromptlyfurnishedtotheCompany.WhereverreferenceismadeinthisIndenturetotheauthenticationanddeliveryofSecuritiesbytheTrusteeortheTrustee'scertificateofauthentication,suchreferenceshallbedeemedtoincludeauthenticationanddeliveryonbehalfoftheTrusteebyanAuthenticatingAgentandacertificateofauthenticationexecutedonbehalfoftheTrusteebyanAuthenticatingAgent.EachAuthenticatingAgentshallbeacceptabletotheCompanyandshallatalltimesbeacorporationorganizedanddoingbusinessunderthelawsoftheUnitedStatesofAmerica,anystatethereofortheDistrictofColumbia,authorizedundersuchlawstoactasAuthenticatingAgent,havingacombinedcapitalandsurplusofnotlessthan$50,000,000andsubjecttosupervisionorexaminationbyfederalorstateauthority.Ifsuchcorporationpublishesreportsofconditionatleastannually,pursuanttolawortotherequirementsofsaidsupervisingorexaminingauthority,thenforthepurposesofthisSection611,thecombinedcapitalandsurplusofsuch corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time anAuthenticatingAgentshallceasetobeeligibleinaccordancewiththeprovisionsofthisSection611,itshallresignimmediatelyinthemannerandwiththeeffectspecifiedinthisSection611.

AnycorporationintowhichanAuthenticatingAgentmaybemergedorconvertedorwithwhichitmaybeconsolidated,oranycorporationresultingfromanymerger,conversionorconsolidationtowhichsuchAuthenticatingAgentshallbeaparty,oranycorporationsucceedingtothecorporateagencyorcorporatetrustbusinessofanAuthenticatingAgent,shallcontinuetobeanAuthenticatingAgent,providedsuchcorporationshallbeotherwiseeligibleunderthisSection611,withouttheexecutionorfilingofanypaperoranyfurtheractonthepartoftheTrusteeortheAuthenticatingAgent.

AnAuthenticatingAgentmayresignatanytimebygivingwrittennoticethereoftotheTrusteeandtotheCompany.TheTrusteemayatanytimeterminatethe agency of an AuthenticatingAgent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such a notice ofresignation or upon such a termination, or in case at any time suchAuthenticating Agent shall cease to be eligible in accordance with the provisions of thisSection 611, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give written notice of suchappointmenttoallHoldersofSecuritiesoftheserieswithrespecttowhichsuchAuthenticatingAgentwillserve,inthemannerprovidedforinSection106.Anysuccessor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessorhereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under theprovisionsofthisSection611.

TheTrusteeagreestopaytoeachAuthenticatingAgentfromtimetotimereasonablecompensationforitsservicesunderthisSection611,andtheTrusteeshallbeentitledtobereimbursedforsuchpayments,subjecttotheprovisionsofSection606.

40

TableofContents

IfanappointmentwithrespecttooneormoreseriesismadepursuanttothisSection611,theSecuritiesofsuchseriesmayhaveendorsedthereon,inadditiontotheTrustee'scertificateofauthentication,analternatecertificateofauthenticationinthefollowingform:

Dated:


[],asTrustee

ByasAuthenticatingAgent

ByAuthorizedOfficer

ARTICLESEVEN

HOLDERS'LISTSANDREPORTSBYTRUSTEEANDTHECOMPANY

SECTION701.DisclosureofNamesandAddressesofHolders.EveryHolderofSecuritiesorcoupons,byreceivingandholdingthesame,agreeswiththeCompanyandtheTrusteethatnoneoftheCompanyortheTrusteeoranyagentofanyofthemshallbeheldaccountablebyreasonofthedisclosureofanysuchinformationastothenamesandaddressesoftheHoldersinaccordancewithTIASection312,regardlessofthesourcefromwhichsuchinformationwasderived,andthattheTrusteeshallnotbeheldaccountablebyreasonofmailinganymaterialpursuanttoarequestmadeunderTIASection312(b).

SECTION702.ReportsbyTrustee.

(a)Within60daysafterMay15ofeachyearcommencingwiththefirstMay15afterthefirstissuanceofSecuritiespursuanttothisIndenture,theTrusteeshalltransmitabriefreportbymailtotheHoldersofSecurities,inaccordancewithandtotheextentrequiredbySection313oftheTIA.

(b)AcopyofeachsuchreportatthetimeofitsmailingtoHoldersshallbefiledwiththeCommissionandeachstockexchangeonwhichDebtSecuritiesofanyseriesarelisted.

SECTION703.ReportsbytheCompany.TheCompanyshall:

(1)filewiththeTrustee,within15daysaftertheCompanyfilesthesamewiththeCommission(butinnoeventlaterthan50daysaftertheCompanyisrequiredtomakesuchfilingwiththeCommission),copiesoftheannualreportsandoftheinformation,documents,andotherreportsthattheCompanymayberequiredtofilewiththeCommissionpursuanttoSection13orSection15(d)oftheExchangeActorpursuanttoSection314oftheTrustIndentureAct. Delivery of such reports, information and documents to theTrustee is for informational purposes only and the Trustee's receipt of such shall notconstitute constructive notice of any information contained therein or determinable from information contained therein, including the Company'scompliancewithanycovenantshereunder(astowhichtheTrusteeisentitledtorelyexclusivelyonOfficers'Certificates);and

(2)transmit toallHolders,inthemannerandtotheextentprovidedinandrequiredbyTIASection313(c),within30daysafterthefilingthereofwiththeTrustee,suchsummariesofanyinformation,documentsandreportsrequiredtobefiledbytheCompanypursuanttoparagraphs(1)and(2)ofthisSection703asmayberequiredbyrulesandregulationsprescribedfromtimetotimebytheCommission.

(3)IfatanytimetheSecuritiesareguaranteedbyadirectorindirectparentoftheCompany,andsuchparenthasfurnishedthereportsrequiredbythisSection703withrespecttoparentasrequiredbythisSection703asifparentweretheCompany(includinganyfinancialinformationrequiredhereby),theCompanyshallbedeemedtobeincompliancewiththisSection703.

41

TableofContents

SECTION704.TheCompanytoFurnishTrusteeNamesandAddressesofHolders.TheCompanywillfurnishorcausetobefurnishedtotheTrustee:

(1)semi-annually,notlaterthan15daysaftertheRegularRecordDateforinterestforeachseriesofSecurities,alist,insuchformastheTrusteemayreasonablyrequire,ofthenamesandaddressesoftheHoldersofRegisteredSecuritiesofsuchseriesasofsuchRegularRecordDate,orifthereisnoRegularRecordDateforinterestforsuchseriesofSecurities,semi-annually,uponsuchdatesasaresetforthintheBoardResolution,Officers'Certificateorindenturesupplementalheretoauthorizingsuchseries,and

(2)atsuchothertimesastheTrusteemayrequestinwriting,within30daysafterthereceiptbytheCompanyofanysuchrequest,alistofsimilarformandcontentasofadatenotmorethan15dayspriortothetimesuchlistisfurnished,

provided,however,thatsolongastheTrusteeistheSecurityRegistrar,nosuchlistshallberequiredtobefurnished.

ARTICLEEIGHT

SUPPLEMENTALINDENTURES

SECTION801.SupplementalIndenturesWithoutConsentofHolders.WithouttheconsentofanyHolders,theCompany,whenauthorizedbyorpursuanttoaBoardResolution,andtheTrustee,atanytimeandfromtimetotime,mayenterintooneormoreindenturessupplementalhereto,informsatisfactorytotheTrustee,foranyofthefollowingpurposes:

(1)toevidencethesuccessionofanotherPersontotheCompany,orsuccessivesuccessions,andtheassumptionbysuchsuccessorofthecovenantsandobligationsoftheCompanycontainedintheSecuritiesofoneormoreseriesandinthisIndentureoranysupplementalindenture;

(2)toaddtothecovenantsoftheCompanyforthebenefitoftheHoldersofalloranyseriesofSecuritiesandanyrelatedcoupons(andifsuchcovenantsaretobeforthebenefitoflessthanallseriesofSecurities,statingthatsuchcovenantsarebeingincludedsolelyforthebenefitofsuchseries)ortosurrenderanyrightorpowerhereinconferredupontheCompany;or

(3)toaddanyadditionalEventsofDefault(andifsuchEventsofDefaultaretobeforthebenefitoflessthanallseriesofSecurities,statingthatsuchEventsofDefaultarebeingincludedsolelyforthebenefitofsuchseries);or

(4)todeleteormodifyanyEventsofDefaultwithrespecttoalloranyseriesoftheSecurities,theformandtermsofwhicharebeingestablishedpursuant to such supplemental indenture as permitted in Section 301 (and if such Events of Default are to be for the benefit of less than all series ofSecurities,statingthatsuchEventsofDefaultarebeingincludedsolelyforthebenefitofsuchseries,andtospecifytherightsandremediesoftheTrusteeandtheHoldersofsuchSecuritiesinconnectiontherewith;

(5) toaddtoorchangeanyoftheprovisionsofthisIndenturetoprovidethatBearerSecuritiesmayberegistrableastoprincipal, tochangeoreliminate any restrictions on the payment of principal of or any premium or interest on Bearer Securities, to permit Bearer Securities to be issued inexchange for Registered Securities, to permit Bearer Securities to be issued in exchange for Bearer Securities of other authorized denominations or topermitorfacilitatetheissuanceofSecuritiesinuncertificatedform,ineachcasetotheextentthenpermittedundertheU.S.InternalRevenueCodeof1986,asamended,andtheU.S.TreasuryRegulationsthereunder;providedthatanysuchactionshallnotadverselyaffecttheinterestsoftheHoldersofSecuritiesofanyseriesoranyrelatedcouponsinanymaterialrespect;or

(6)tochangeoreliminateanyoftheprovisionsofthisIndenture;providedthatanysuchchangeoreliminationshallbecomeeffectiveonlywhenthere is no Security Outstanding of any series created prior to the execution of such supplemental indenture which is entitled to the benefit of suchprovision;or

(7)tosecuretheSecurities;or

(8)toestablishtheformortermsofSecuritiesofanyseriesaspermittedbySections201and301;or

42

TableofContents

(9)toevidenceandprovidefortheacceptanceofappointmenthereunderbyasuccessorTrusteewithrespecttotheSecuritiesofoneormoreseriesandtoaddtoorchangeanyoftheprovisionsofthisIndentureasshallbenecessarytoprovidefororfacilitatetheadministrationofthetrustshereunderbymorethanoneTrustee,pursuanttotherequirementsofSection609;or

(10)toclosethisIndenturewithrespecttotheauthenticationanddeliveryofadditionalseriesofSecurities;or

(11)tocureanyambiguityortocorrectorsupplementanyprovisioncontainedhereinorinanyindenturesupplementalheretowhichmaybedefectiveorinconsistentwithanyotherprovisioncontainedhereinorinanysupplementalindentureortoconformthetermshereof,asamendedandsupplemented,thatareapplicabletotheSecuritiesofanyseriestothedescriptionofthetermsofsuchSecuritiesintheofferingmemorandum,prospectussupplementorotherofferingdocumentapplicabletosuchSecuritiesatthetimeofinitialsalethereof;or

(12)tomakeanychangeinanyseriesofSecuritiesthatdoesnotadverselyaffectinanymaterialrespecttherightsoftheHoldersofsuchSecurities;or

(13)toaddtoorchangeoreliminateanyprovisionofthisIndentureasshallbenecessaryordesirableinaccordancewithanyamendmentstotheTrustIndentureAct;or

(14)tosupplementanyoftheprovisionsofthisIndenturetosuchextentasshallbenecessarytopermitorfacilitatethedefeasanceanddischargeofanyseries ofSecurities pursuant toSections401, 1302or 1303;providedthat anysuchactionshall not adversely affect the interests of the HoldersofSecuritiesofsuchseriesandanyrelatedcouponsoranyotherseriesofSecuritiesinanymaterialrespect.

SECTION802.SupplementalIndentureswithConsentofHolders.WiththeconsentoftheHoldersofnotlessthanamajorityinprincipalamountofallOutstandingSecuritiesofallseriesaffectedbysuchsupplementalindenture,byActofsaidHoldersdeliveredtotheCompanyandtheTrustee,theCompany,whenauthorizedbyor pursuant to a BoardResolution, andtheTrustee mayenter intoanindenture or indentures supplemental hereto for thepurposeof addinganyprovisionstoorchanginginanymanneroreliminatinganyoftheprovisionsofthisIndenturewhichaffectsuchseriesofSecuritiesorofmodifyinginanymannertherightsoftheHoldersofSecuritiesofsuchseriesunderthisIndenture;provided,however,thatnosuchsupplementalindentureshall,withouttheconsentoftheHolderofeachOutstandingSecurityofsuchseries,

(1)changetheStatedMaturityoftheprincipalof(orpremium,ifany)oranyinstallmentofinterestonanySecurityofsuchseries,orreducetheprincipal amount thereof (or premium, if any) or the rate of interest, if any, thereon, or the Redemption Price thereof or any amount payable uponrepaymentthereofattheoptionoftheHolder,reducetheamountoftheprincipalofanOriginalIssueDiscountSecurityofsuchseriesthatwouldbedueandpayableuponadeclarationofaccelerationoftheMaturitythereofpursuanttoSection502ortheamountthereofprovableinbankruptcypursuanttoSection504,oradverselyaffectanyrightofrepaymentattheoptionofanyHolderofanySecurityofsuchseries,orchangeanyPlaceofPaymentwhere,ortheCurrencyinwhich,anySecurityofsuchseriesoranypremiumorinterestthereonispayable,orimpairtherighttoinstitutesuitfortheenforcementof any such payment on or after the Stated Maturity thereof (or, in the case of redemption or repayment at the option of the Holder, on or after theRedemptionDateorRepaymentDate,asthecasemaybe),oradverselyaffectanyrighttoconvertorexchangeanySecurityasmaybeprovidedpursuanttoSection301herein,or

(2)reducethepercentageinprincipalamountoftheOutstandingSecuritiesofsuchseriesrequiredforanysuchsupplementalindenture,foranywaiver of compliancewithcertain provisions of this Indenture whichaffect suchseries or certain defaults applicable tosuchseries hereunder andtheirconsequencesprovidedforinSection513orSection908ofthisIndenture,orreducetherequirementsofSection1404forquorumorvotingwithrespecttoSecuritiesofsuchseries,or

(3)modifyanyoftheprovisionsofthisSection802,Section513orSection908,excepttoincreaseanysuchpercentageortoprovidethatcertainotherprovisionsofthisIndenturewhichaffectsuchseriescannotbemodifiedorwaivedwithouttheconsentoftheHolderofeachOutstandingSecurityofsuchseries.

43

TableofContents

AnysuchsupplementalindentureaddinganyprovisionstoorchanginginanymanneroreliminatinganyoftheprovisionsofthisIndenture,ormodifyinginanymannertherightsoftheHoldersofSecuritiesofsuchseries,shallnotaffecttherightsunderthisIndentureoftheHoldersofSecuritiesofanyotherseries.

ItshallnotbenecessaryforanyActofHoldersunderthisSection802toapprovetheparticularformofanyproposedsupplementalindenture,butitshallbesufficientifsuchActshallapprovethesubstancethereof.

SECTION803.ExecutionofSupplementalIndentures.Inexecuting,oracceptingtheadditionaltrustscreatedby,anysupplementalindenturepermittedbythisArticleEightorthemodificationstherebyofthetrustscreatedbythisIndenture,theTrusteeshallbeentitledtoreceive,andshallbefullyprotectedinrelyingupon,anOpinionofCounselstatingthattheexecutionofsuchsupplementalindentureisauthorizedorpermittedbythisIndenture.TheTrusteemay,butshallnotbeobligatedto,enterintoanysuchsupplementalindenturewhichaffectstheTrustee'sownrights,dutiesorimmunitiesunderthisIndentureorotherwise.

SECTION804.EffectofSupplementalIndentures.UpontheexecutionofanysupplementalindentureunderthisArticleEight,thisIndentureshallbemodifiedinaccordancetherewith,andsuchsupplementalindentureshallformapartofthisIndentureforallpurposes;andeveryHolderofSecuritiestheretoforeorthereafterauthenticatedanddeliveredhereundershallbeboundthereby.

SECTION 805. Conformitywith Trust Indenture Act . Every supplemental indenture executed pursuant to this Article Eight shall conform to therequirementsoftheTrustIndentureActasthenineffect.

SECTION806. Referencein Securities to Supplemental Indentures . Securities of any series authenticated and delivered after the executionofanysupplementalindenturepursuanttothisArticleEightmay,andshallifrequiredbytheTrustee,bearanotationinformapprovedbytheTrusteeastoanymatterprovidedfor insuchsupplemental indenture. If theCompanyshall sodetermine, newSecurities of anyseries somodifiedastoconform,intheopinionoftheTrusteeandtheCompany,toanysuchsupplementalindenturemaybepreparedandexecutedbytheCompanyandauthenticatedanddeliveredbytheTrusteeinexchangeforOutstandingSecuritiesofsuchseries.

SECTION807.NoticeofSupplementalIndentures.PromptlyaftertheexecutionbytheCompanyandtheTrusteeofanysupplementalindenturepursuantto the provisions of Section 802, the Company shall give notice thereof to the Holders of each Outstanding Security affected, in the manner provided for inSection106,settingforthingeneraltermsthesubstanceofsuchsupplementalindenture.

ARTICLENINE

COVENANTS

SECTION901.PaymentofPrincipal,Premium,ifany,andInterest.TheCompanycovenantsandagreesforthebenefitoftheHoldersofeachseriesofSecuritiesandanyrelatedcouponsthatitwilldulyandpunctuallypaytheprincipalof(andpremium,ifany)andinterest,ifany,ontheSecuritiesofthatseriesinaccordancewiththetermsoftheSecurities,anycouponsappertainingtheretoandthisIndenture.UnlessotherwisespecifiedascontemplatedbySection301withrespecttoanyseriesofSecurities,anyinterestinstallmentsdueonBearerSecuritiesonorbeforeMaturityshallbepayableonlyuponpresentationandsurrenderoftheseveralcouponsforsuchinterestinstallmentsasareevidencedtherebyastheyseverallymature.

SECTION902.MaintenanceofOfficeorAgency.IftheSecuritiesofaseriesareissuableonlyasRegisteredSecurities,theCompanywillmaintainineach Place of Payment for any series of Securities an office or agency where Securities of that series may be presented or surrendered for payment, whereSecuritiesofthatseriesmaybesurrenderedforregistrationoftransferorexchange,whereSecuritiesofthatseriesthatareconvertibleorexchangeablemaybesurrenderedforconversionorexchange,asapplicableandwherenoticesanddemandstoorupontheCompanyinrespectoftheSecuritiesofthatseriesandthisIndenturemaybeserved.

IfSecuritiesofaseriesareissuableasBearerSecurities,theCompanywillmaintain(A)inTheCityofNewYork,anofficeoragencywhereanyRegisteredSecuritiesofthatseriesmaybepresentedorsurrenderedforpayment,whereanyRegisteredSecuritiesofthatseriesmaybesurrenderedforregistrationoftransfer,whereSecuritiesofthatseriesmaybesurrenderedforexchange,whereSecuritiesofthatseriesthatare

44

TableofContents

convertibleorexchangeablemaybesurrenderedforconversionorexchange,asapplicable,wherenoticesanddemandstoorupontheCompanyinrespectoftheSecurities of that series and this Indenture may be served and where Bearer Securities of that series and related coupons may be presented or surrendered forpaymentinthecircumstances describedinthesecondsucceedingparagraph(andnot otherwise), (B)subject toanylawsorregulations applicable thereto, inaPlaceofPaymentforthatserieswhichislocatedoutsidetheUnitedStatesandCanada,anofficeoragencywhereSecuritiesofthatseriesandrelatedcouponsmaybe presented and surrendered for payment; provided, however , that, if the Securities of that series are listed on any stock exchange located outside theUnitedStatesandCanadaandsuchstockexchangeshallsorequire,theCompanywillmaintainaPayingAgentfortheSecuritiesofthatseriesinanyrequiredcitylocated outside the United States and Canada so long as the Securities of that series are listed on such exchange, and (C) subject to any laws or regulationsapplicablethereto,inaPlaceofPaymentforthatserieslocatedoutsidetheUnitedStatesandCanadaanofficeoragencywhereanyRegisteredSecuritiesofthatseries maybe surrendered for registration of transfer, where Securities of that series maybe surrendered for exchange, where Securities of that series that areconvertibleandexchangeablemaybesurrenderedforconversionorexchange,asapplicableandwherenoticesanddemandstoorupontheCompanyinrespectoftheSecuritiesofthatseriesandthisIndenturemaybeserved.

TheCompanywillgivepromptwrittennoticetotheTrusteeofthelocation,andanychangeinthelocation,ofanysuchofficeoragency.IfatanytimetheCompany shall fail tomaintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders,noticesanddemandsmaybemadeorservedattheCorporateTrustOfficeoftheTrustee,exceptthatBearerSecuritiesofanyseriesandtherelatedcouponsmaybe presented and surrendered for payment at the offices specified in the Security, and the Company hereby appoints the same as its agents to receive suchrespectivepresentations,surrenders,noticesanddemands.

UnlessotherwisespecifiedwithrespecttoanySecuritiespursuanttoSection301,nopaymentofprincipal,premiumorinterestonBearerSecuritiesshallbemadeatanyofficeoragencyoftheCompanyintheUnitedStatesorCanadaorbycheckmailedtoanyaddressintheUnitedStatesorCanadaorbytransfertoanaccountmaintainedwithabanklocatedintheUnitedStatesorCanada;provided,however,that,iftheSecuritiesofaseriesarepayableinDollars,paymentofprincipalof(andpremium,ifany)andinterest,ifany,onanyBearerSecurityshallbemadeattheofficeoftheCompany'sPayingAgentinTheCityofNewYork,if(butonlyif)paymentinDollarsofthefullamountofsuchprincipal,premiumorinterest,asthecasemaybe,atallofficesoragenciesoutsidetheUnitedStatesmaintainedforsuchpurposebytheCompanyinaccordancewiththisIndentureisillegaloreffectivelyprecludedbyexchangecontrolsorothersimilarrestrictions.

TheCompanymayalsofromtimetotimedesignateoneormoreotherofficesoragencieswheretheSecuritiesofoneormoreseriesmaybepresentedorsurrenderedforanyorallsuchpurposesandmayfromtimetotimerescindanysuchdesignation;provided,however,thatnosuchdesignationorrescissionshallinanymannerrelievetheCompanyofitsobligationtomaintainanofficeoragencyinaccordancewiththerequirementssetforthaboveforSecuritiesofanyseriesforsuchpurposes.TheCompanywillgivepromptwrittennoticetotheTrusteeofanysuchdesignationorrescissionandofanychangeinthelocationofanysuchotherofficeoragency.UnlessotherwisespecifiedwithrespecttoanySecuritiesascontemplatedbySection301withrespecttoaseriesofSecurities,theCompanyherebydesignatesasaPlaceofPaymentforeachseriesofSecuritiestheofficeoragencyoftheTrusteein,andinitiallyappointstheTrusteeatitsCorporateTrustOfficeasPayingAgentandasitsagenttoreceiveallsuchpresentations,surrenders,noticesanddemands.

Unlessotherwisespecifiedwithrespect toanySecurities pursuant toSection301, if andsolongas theSecurities of anyseries (i) are denominatedinaCurrencyotherthanDollarsor(ii)maybepayableinaCurrencyotherthanDollars,orsolongasitisrequiredunderanyotherprovisionoftheIndenture,thentheCompanywillmaintainwithrespecttoeachsuchseriesofSecurities,orassorequired,atleastoneExchangeRateAgent.

SECTION903.MoneyforSecuritiesPaymentstoBeHeldinTrust.IftheCompanyshallatanytimeactasitsownPayingAgentwithrespecttoanyseriesofSecuritiesandanyrelatedcoupons,itwill,onorbeforeeachduedateoftheprincipalof(orpremium,ifany)orinterest,ifany,onanyoftheSecuritiesofthatseries,segregateandholdintrustforthebenefitofthePersonsentitledtheretoasumintheCurrencyinwhichthe

45

TableofContents

Securitiesofsuchseriesarepayable(exceptasmayotherwisebespecifiedpursuanttoSection301fortheSecuritiesofsuchseriesandexcept,ifapplicable,asprovidedinSections312(b),312(d)and312(e))sufficienttopaytheprincipalof(orpremium,ifany)orinterest,ifany,onSecuritiesofsuchseriessobecomingdueuntilsuchsumsshallbepaidtosuchPersonsorotherwisedisposedofashereinprovidedandwillpromptlynotifytheTrusteeofitsactionorfailuresotoact.

WhenevertheCompanyshallhaveoneormorePayingAgentsforanyseriesofSecuritiesandanyrelatedcoupons,itwill,priortooroneachduedateoftheprincipalof(orpremium,ifany)orinterest,ifany,onanySecuritiesofthatseries,depositwithaPayingAgentasum(intheCurrencydescribedintheprecedingparagraph)sufficient topaytheprincipal (or premium, if any) or interest, if any, so becomingdue, suchsumto be held in trust for the benefit of the Personsentitledtosuchprincipal,premiumorinterest,and(unlesssuchPayingAgentistheTrustee)theCompanywillpromptlynotifytheTrusteeofitsactionorfailuresotoact.

TheCompanywillcauseeachPayingAgent(otherthantheTrustee)foranyseriesofSecuritiestoexecuteanddelivertotheTrusteeaninstrumentinwhichsuchPayingAgentshallagreewiththeTrustee,subjecttotheprovisionsofthisSection903,thatsuchPayingAgentwill:

(1)holdallsumsheldbyitforthepaymentoftheprincipalof(andpremium,ifany)andinterest,ifany,onSecuritiesofsuchseriesintrustforthebenefitofthePersonsentitledtheretountilsuchsumsshallbepaidtosuchPersonsorotherwisedisposedofashereinprovided;

(2)givetheTrusteenoticeofanydefaultbytheCompany(oranyotherobligorupontheSecuritiesofsuchseries)inthemakingofanypaymentofprincipalof(orpremium,ifany)orinterest,ifany,ontheSecuritiesofsuchseries;and

(3)atanytimeduringthecontinuanceofanysuchdefault,uponthewrittenrequestoftheTrustee,forthwithpaytotheTrusteeallsumssoheldintrustbysuchPayingAgent.

TheCompanymayatanytime,forthepurposeofobtainingthesatisfactionanddischargeofthisIndentureorforanyotherpurpose,pay,orbyCompanyOrderdirectanyPayingAgenttopay,totheTrusteeallsumsheldintrustbytheCompanyorsuchPayingAgent,suchsumstobeheldbytheTrusteeuponthesametrustsasthoseuponwhichsumswereheldbytheCompanyorsuchPayingAgent;and,uponsuchpaymentbyanyPayingAgenttotheTrustee,suchPayingAgentshallbereleasedfromallfurtherliabilitywithrespecttosuchsums.

ExceptasprovidedintheSecuritiesofanyseries,anymoneydepositedwiththeTrusteeoranyPayingAgent,orthenheldbytheCompany,intrustforthepaymentoftheprincipalof(orpremium,ifany)orinterest,ifany,onanySecurityofanyseries,oranycouponappertainingthereto,andremainingunclaimedfortwoyearsaftersuchprincipal,premiumorinteresthasbecomedueandpayableshallbepaidtotheCompany,or(ifthenheldbytheCompany)shallbedischargedfromsuchtrust;andtheHolderofsuchSecurityorcouponshallthereafter,asanunsecuredgeneralcreditor,lookonlytotheCompanyforpaymentthereof,andallliabilityoftheTrusteeorsuchPayingAgentwithrespecttosuchtrustmoney,andallliabilityoftheCompany,astrusteethereof,shallthereuponcease;provided,however , that the Trustee or such Paying Agent, before being required to make any such repayment, shall at the written direction and at the expense of theCompanycausetobepublishedonce,inanAuthorizedNewspaper,orcausetobemailedtosuchHolderorboth,noticethatsuchmoneyremainsunclaimedandthat,afteradatespecifiedtherein,whichshallnotbelessthan30daysfromthedateofsuchpublicationormailing,anyunclaimedbalanceofsuchmoneythenremainingwillberepaidtotheCompany.

SECTION904.StatementastoCompliance.TheCompanywilldelivertotheTrustee,within120daysaftertheendofeachfiscalyear(whichasofthedatehereofendsonthe31stdayofDecember),abriefcertificatefromtheprincipalexecutiveofficer,principalfinancialofficerorprincipalaccountingofficerasto his or her knowledge of the Company's compliance with all conditions and covenants under this Indenture and as to any default in such performance. ForpurposesofthisSection904,suchcomplianceshallbedeterminedwithoutregardtoanyperiodofgraceorrequirementofnoticeunderthisIndenture.

SECTION905.PaymentofTaxesandOtherClaims.TheCompanywillpayordischargeorcausetobepaidordischarged,beforethesameshallbecomedelinquent,(1)allmaterialtaxes,assessmentsandgovernmentalchargesleviedorimposedupontheCompanyorupontheincome,profitsorpropertyofthe

46

TableofContents

Companyand(2)allmateriallawfulclaimsforlabor,materialsandsupplieswhich,ifunpaid,mightbylawbecomeaLienuponanypropertyoftheCompany;provided,however,thattheCompanyshallnotberequiredtopayordischargeorcausetobepaidordischargedanysuchtax,assessment,chargeorclaimwhoseamount,applicabilityorvalidityisbeingcontestedingoodfaithbyappropriateproceedings.

SECTION906.MaintenanceofProperties.TheCompanywillmaintain,preserveandprotect,allofitsmaterialpropertiesandtitletheretoandequipmentnecessaryintheoperationofitsbusinessingoodworkingorderandcondition,ordinarywearandtearexcepted,excepttotheextentthatthefailuretodosowouldnotmateriallyimpairtheoperationsoftheCompanyanditsSubsidiariestakenasawhole;provided,however,thatnothinginthisSection906shallpreventorrestrictthesale,abandonmentorotherdispositionofanyofsuchproperties.

SECTION907. CorporateExistence.TheCompanyshalldoorcausetobedoneall thingsnecessarytopreserveandkeepinfullforceandeffectitsexistenceinaccordancewithitsorganizationaldocuments;providedthatthisSection907doesnotprohibitanytransactionotherwisepermittedbySection909.

SECTION908.WaiverofCertainCovenants.TheCompanymay,withrespecttoanyseriesofSecurities,omitinanyparticularinstancetocomplywithanyterm,provisionorconditionwhichaffectssuchseriessetforthinSections905to907,inclusive,or,asspecifiedpursuanttoSection301(19)forSecuritiesofsuchseries,inanycovenantsaddedtoArticleNinepursuanttoSection301(19)inconnectionwithSecuritiesofsuchseries,ifbeforethetimeforsuchcompliancetheHoldersofatleastamajorityinprincipalamountofallOutstandingSecuritiesofsuchseries,byActofsuchHolders,waivesuchcomplianceinsuchinstancewithsuchterm,provisionorcondition,butnosuchwaivershallextendtooraffectsuchterm,provisionorconditionexcepttotheextentsoexpresslywaived,and,untilsuchwaivershallbecomeeffective,theobligationsoftheCompanyandthedutiesoftheTrusteetoHoldersofSecuritiesofsuchseriesinrespectofanysuchterm,provisionorconditionshallremaininfullforceandeffect.

SECTION909.Consolidation,Amalgamation,MergerandSaleofAssets.TheCompanyshallnotamalgamate,consolidateorcombinewithormergewithorintoanyotherPersonorsell,transferorleaseallorsubstantiallyallofitspropertiesandassets,substantiallyasanentiretytoanotherPerson,unless:

(1)theresulting,survivingortransfereePerson(the"SuccessorCompany")shallbeaPersonorganizedandexistingunderthelawsoftheCanadaorany province or territory thereunder, or under the laws of United States of America, any state thereof or the District of Columbia, and the SuccessorCompany(ifnottheCompany)shallexpresslyassume,bysupplementalindenture,executedanddeliveredtotheTrustee,informreasonablysatisfactorytotheTrustee,alloftheobligationsoftheCompanyundertheSecuritiesandthisIndenture;

(2)immediatelyaftergivingeffecttosuchtransaction,noEventofDefault,andnoeventwhich,afternoticeorlapseoftimeorboth,wouldbecomeanEventofDefault,shallhaveoccurredandbecontinuing;and

(3)theCompanyortheSuccessorCompanyshallhavedeliveredtotheTrusteeanOfficers'CertificateandanOpinionofCounsel,eachstatingthatsuchamalgamation,consolidation,mergerortransfer,and,ifasupplementalindentureisrequiredinconnectionwithsuchtransaction,suchsupplementalindenture,complywiththeprovisionsofthisIndenture,includingArticle8andthisSection909.

ThisSection909shallonlyapplytoamerger,consolidationoramalgamationinwhichtheCompanyisnotthesurvivingPersonandtoconveyances,leasesandtransfersbytheCompanyastransferororlessor.

TheSuccessorCompanywillsucceedto,andbesubstitutedfor,andmayexerciseeveryrightandpowerof,theCompanyunderthisIndenture;provided,however,thattheCompanyshallnotbereleasedfromtheobligationtopaytheprincipalof,premium,ifany,andinterestontheSecuritiesinthecaseofaleaseofallorsubstantiallyalloftheCompany'spropertiesorassetsinatransactionthatissubjectto,andthatcomplieswiththeprovisionsof,thiscovenant.

47

TableofContents

ARTICLETEN

REDEMPTIONOFSECURITIES

SECTION1001.ApplicabilityofArticle.SecuritiesofanyserieswhichareredeemablebeforetheirStatedMaturityshallberedeemableinaccordancewith the terms of such Securities and (except as otherwise specified as contemplated by Section 301 for Securities of any series) in accordance with thisArticleTen.

SECTION1002.ElectiontoRedeem;NoticetoTrustee.TheelectionoftheCompanytoredeemanySecuritiesshallbeevidencedbyorpursuanttoaBoard Resolution. In case of any redemption at the election of the Company, the Company shall, at least 60 days prior to the Redemption Date fixed by theCompany(unlessashorternoticeshallbesatisfactorytotheTrustee),notifytheTrusteeofsuchRedemptionDateandoftheprincipalamountofSecuritiesofsuchseriestoberedeemedandshalldelivertotheTrusteesuchdocumentationandrecordsasshallenabletheTrusteetoselecttheSecuritiestoberedeemedpursuanttoSection1003.InthecaseofanyredemptionofSecuritiespriortotheexpirationofanyrestrictiononsuchredemptionprovidedinthetermsofsuchSecuritiesorelsewhereinthisIndenture,theCompanyshallfurnishtheTrusteewithanOfficers'Certificateevidencingcompliancewithsuchrestriction.

SECTION1003.SelectionbyTrusteeofSecuritiestoBeRedeemed.IflessthanalltheSecuritiesofanyseriesaretoberedeemed,theparticularSecuritiestoberedeemedshallbeselectednotmorethan60dayspriortotheRedemptionDatebytheTrustee,fromtheOutstandingSecuritiesofsuchseriesnotpreviouslycalledforredemption,bylotorinsuchmannerastheTrusteeshalldeemfairandappropriateandwhichmayprovidefortheselectionforredemptionofportionsoftheprincipalofSecuritiesofsuchseries;provided,however,thatnosuchpartialredemptionshallreducetheportionoftheprincipalamountofaSecuritynotredeemedtolessthantheminimumauthorizeddenominationforSecuritiesofsuchseriesestablishedpursuanttoSection301.

TheTrusteeshall promptlynotifytheCompanyinwritingoftheSecuritiesselectedforredemptionand,inthecaseofanySecuritiesselectedforpartialredemption,theprincipalamountthereoftoberedeemed.

ForallpurposesofthisIndenture,unlessthecontextotherwiserequires,allprovisionsrelatingtotheredemptionofSecuritiesshallrelate,inthecaseofanySecurityredeemedortoberedeemedonlyinpart,totheportionoftheprincipalamountofsuchSecuritywhichhasbeenoristoberedeemed.

SECTION1004.NoticeofRedemption.ExceptasotherwisespecifiedascontemplatedbySection301,noticeofredemptionshallbegiveninthemannerprovidedforinSection106notlessthan30normorethan60dayspriortotheRedemptionDate,toeachHolderofSecuritiestoberedeemed.

Allnoticesofredemptionshallstate:

(1)theRedemptionDate,

(2)theRedemptionPriceandtheamountofaccruedinteresttotheRedemptionDatepayableasprovidedinSection1006,ifany,

(3)iflessthanalltheOutstandingSecuritiesofanyseriesaretoberedeemed,theidentification(and,inthecaseofpartialredemption,theprincipalamounts)oftheparticularSecuritiestoberedeemed,

(4)incaseanySecurityistoberedeemedinpartonly,thenoticewhichrelatestosuchSecurityshallstatethatonandaftertheRedemptionDate,uponsurrenderofsuchSecurity,theHolderwillreceive,withoutcharge,anewSecurityorSecuritiesofauthorizeddenominationsfortheprincipalamountthereofremainingunredeemed,

(5)thatontheRedemptionDate,theRedemptionPriceandaccruedinterest,ifany,totheRedemptionDatepayableasprovidedinSection1006willbecomedueandpayableuponeachsuchSecurity,ortheportionthereof,toberedeemedand,ifapplicable,thatinterestthereonwillceasetoaccrueonandaftersaiddate,

(6)thePlaceorPlacesofPaymentwheresuchSecurities,togetherinthecaseofBearerSecuritieswithallcouponsappertainingthereto,ifany,maturingaftertheRedemptionDate,aretobesurrenderedforpaymentoftheRedemptionPriceandaccruedinterest,ifany,

48

TableofContents

(7)thattheredemptionisforasinkingfund,ifsuchisthecase,

(8)that,unlessotherwisespecifiedinsuchnotice,BearerSecuritiesofanyseries,ifany,surrenderedforredemptionmustbeaccompaniedbyallcouponsmaturingsubsequenttotheRedemptionDateortheamountofanysuchmissingcouponorcouponswillbedeductedfromtheRedemptionPriceunlesssecurityorindemnitysatisfactorytotheCompany,theTrusteeandanyPayingAgentisfurnished,and

(9)ifBearerSecuritiesofanyseriesaretoberedeemedandanyRegisteredSecuritiesofsuchseriesarenottoberedeemed,andifsuchBearerSecuritiesmaybeexchangedforRegisteredSecuritiesnotsubjecttoredemptiononsuchRedemptionDatepursuanttoSection305orotherwise,thelastdate,asdeterminedbytheCompany,onwhichsuchexchangesmaybemade.

NoticeofredemptionofSecuritiestoberedeemedattheelectionoftheCompanyshallbegivenbytheCompanyor,attheCompany'srequest,bytheTrusteeinthenameandattheexpenseoftheCompany.

SECTION1005.DepositofRedemptionPrice.PriortoanyRedemptionDate,theCompanyshalldepositorcausetobedepositedwiththeTrusteeorwithaPayingAgent(or,iftheCompanyisactingasitsownPayingAgent,segregateandholdintrustasprovidedinSection903)anamountofmoneyintheCurrencyinwhichtheSecuritiesofsuchseriesarepayable(except,ifapplicable,asotherwisespecifiedpursuanttoSection301fortheSecuritiesofsuchseriesandexcept,if applicable, as provided in Sections 312(b), Section 312(d) and 312(e)) sufficient to pay the Redemption Price of, and accrued interest, if any, on, all theSecuritieswhicharetoberedeemedonthatdate.

SECTION1006.SecuritiesPayableonRedemptionDate.Noticeofredemptionhavingbeengivenasaforesaid,theSecuritiessotoberedeemedshall,ontheRedemptionDate,becomedueandpayableattheRedemptionPricethereinspecifiedintheCurrencyinwhichtheSecuritiesofsuchseriesarepayable(except,if applicable, as otherwise specified pursuant to Section 301 for the Securities of such series and except, if applicable, as provided in Sections 312(b),Section312(d)and312(e))(togetherwithaccruedinterest,ifany,totheRedemptionDate),andfromandaftersuchdate(unlesstheCompanyshalldefaultinthepaymentoftheRedemptionPriceandaccruedinterest,ifany)suchSecuritiesshall,ifthesamewereinterest-bearing,ceasetobearinterestandthecouponsforsuchinterestappertainingtoanyBearerSecuritiessotoberedeemed,excepttotheextentprovidedbelow,shallbevoid.UponsurrenderofanysuchSecurityforredemptioninaccordancewithsaidnotice,togetherwithallcoupons,ifany,appertainingtheretomaturingaftertheRedemptionDate,suchSecurityshallbepaidbytheCompanyattheRedemptionPrice,togetherwithaccruedinterest,ifany,totheRedemptionDate;provided,however,thatinstallmentsofinterestonBearerSecuritieswhoseStatedMaturityisonorpriortotheRedemptionDateshallbepayableonlyatanofficeoragencylocatedoutsidetheUnitedStatesandCanada(exceptasotherwiseprovidedinSection902)and,unlessotherwisespecifiedascontemplatedbySection301,onlyuponpresentationandsurrenderofcouponsforsuchinterest;providedfurtherthatinstallmentsofinterestonRegisteredSecuritieswhoseStatedMaturityisonorpriortotheRedemptionDateshallbepayabletotheHoldersofsuchSecurities, oroneormorePredecessorSecurities, registeredassuchatthecloseofbusinessontherelevantrecorddatesaccordingtotheirtermsandtheprovisionsofSection307.

IfanyBearerSecuritysurrenderedforredemptionshallnotbeaccompaniedbyallappurtenantcouponsmaturingaftertheRedemptionDate,suchSecuritymaybepaidafterdeductingfromtheRedemptionPriceanamountequaltothefaceamountofallsuchmissingcoupons,orthesurrenderofsuchmissingcouponorcouponsmaybewaivedbytheCompanyandtheTrusteeiftherebefurnishedtothemsuchsecurityorindemnityastheymayrequiretosaveeachofthemandanyPayingAgentharmless.IfthereaftertheHolderofsuchSecurityshallsurrendertotheTrusteeoranyPayingAgentanysuchmissingcouponinrespectofwhichadeductionshall havebeenmadefromtheRedemptionPrice, suchHoldershall beentitledtoreceivetheamountsodeducted;provided,however , thatinterest represented by coupons shall be payable only at an office or agency located outside the United States and Canada (except as otherwise provided inSection902)and,unlessotherwisespecifiedascontemplatedbySection301,onlyuponpresentationandsurrenderofthosecoupons.

IfanySecuritycalledforredemptionshallnotbesopaiduponsurrenderthereofforredemption,theprincipal(andpremium,ifany)shall,untilpaid,bearinterestfromtheRedemptionDateattherateofinterestorYieldtoMaturity(inthecaseofOriginalIssueDiscountSecurities)setforthinsuchSecurity.

49

TableofContents

SECTION1007.SecuritiesRedeemedinPart.AnySecuritywhichistoberedeemedonlyinpart(pursuanttotheprovisionsofthisArticleTenorofArticleEleven)shallbesurrenderedataPlaceofPaymenttherefor(with,iftheCompanyortheTrusteesorequires,dueendorsementby,orawritteninstrumentoftransferinformsatisfactorytotheCompanyandtheTrusteedulyexecutedby,theHolderthereoforsuchHolder'sattorneydulyauthorizedinwriting),andtheCompanyshallexecute,andtheTrusteeshallauthenticateanddelivertotheHolderofsuchSecuritywithoutservicecharge,anewSecurityorSecuritiesofthesameseries,ofanyauthorizeddenominationasrequestedbysuchHolder,inaggregateprincipalamountequaltoandinexchangefortheunredeemedportionoftheprincipaloftheSecuritysosurrendered.

ARTICLEELEVEN

SINKINGFUNDS

SECTION1101.ApplicabilityofArticle.RetirementsofSecuritiesofanyseriespursuanttoanysinkingfundshallbemadeinaccordancewiththetermsofsuchSecuritiesand(exceptasotherwisespecifiedascontemplatedbySection301forSecuritiesofanyseries)inaccordancewiththisArticleEleven.

TheminimumamountofanysinkingfundpaymentprovidedforbythetermsofSecuritiesofanyseriesishereinreferredtoasa"mandatorysinkingfundpayment,"andanypaymentinexcessofsuchminimumamountprovidedforbythetermsofSecuritiesofanyseriesishereinreferredtoasan"optionalsinkingfundpayment".IfprovidedforbythetermsofSecuritiesofanyseries,thecashamountofanymandatorysinkingfundpaymentmaybesubjecttoreductionasprovidedinSection1102.EachsinkingfundpaymentshallbeappliedtotheredemptionofSecuritiesofanyseriesasprovidedforbythetermsofSecuritiesofsuchseries.

SECTION1102. SatisfactionofSinkingFundPaymentswithSecurities . Subject toSection1003,inlieuofmakingall oranypart ofanymandatorysinkingfundpaymentwithrespecttoanySecuritiesofaseriesincash,theCompanymayatitsoption(1)delivertotheTrusteeOutstandingSecuritiesofsuchseries(otherthananypreviouslycalledforredemption)theretoforepurchasedorotherwiseacquiredbytheCompanytogetherinthecaseofanyBearerSecuritiesof suchseries withall unmaturedcouponsappertaining thereto, and/or (2) receive credit for the principal amount of Securities of suchseries whichhavebeenpreviouslyredeemedeitherattheelectionoftheCompanypursuanttothetermsofsuchSecuritiesorthroughtheapplicationofpermittedoptionalsinkingfundpayments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any mandatory sinking fund payment with respect to theSecuritiesofthesameseriesrequiredtobemadepursuanttothetermsofsuchSecuritiesasprovidedforbythetermsofsuchseries;provided,however,thatsuchSecuritieshavenotbeenpreviouslysocredited.SuchSecuritiesshallbereceivedandcreditedforsuchpurposebytheTrusteeattheRedemptionPricespecifiedinsuchSecuritiesforredemptionthroughoperationofthesinkingfundandtheamountofsuchmandatorysinkingfundpaymentshallbereducedaccordingly.

SECTION1103.RedemptionofSecuritiesforSinkingFund.Notlessthan60dayspriortoeachsinkingfundpaymentdateforanyseriesofSecurities,theCompanywilldelivertotheTrusteeanOfficers'Certificatespecifyingtheamountofthenextensuingsinkingfundpaymentforthatseriespursuanttothetermsofthatseries,theportionthereof, ifany,whichistobesatisfiedbypaymentofcashintheCurrencyinwhichtheSecuritiesofsuchseriesarepayable(except,ifapplicable, as otherwise specified pursuant to Section 301 for the Securities of such series and except, if applicable, as provided in Sections 312(b), 312(d)and312(e))andtheportionthereof,ifany,whichistobesatisfiedbydeliveringorcreditingSecuritiesofthatseriespursuanttoSection1102(whichSecuritieswill, if not previously delivered, accompanysuchcertificate) andwhether theCompanyintends to exercise its right to makea permitted optional sinkingfundpayment with respect to such series. Such certificate shall be irrevocable and upon its delivery the Company shall beobligated to make the cash payment orpayments therein referred to, if any, on or before the next succeeding sinking fund payment date. In the case of the failure of the Company to deliver suchcertificate,thesinkingfundpaymentdueonthenextsucceedingsinkingfundpaymentdateforthatseriesshallbepaidentirelyincashandshallbesufficienttoredeemthe principal amount of suchSecurities subject to a mandatory sinking fund payment without the option to deliver or credit Securities as provided inSection1102andwithouttherighttomakeanyoptionalsinkingfundpayment,ifany,withrespecttosuchseries.

Notmorethan60daysbeforeeachsuchsinkingfundpaymentdatetheTrusteeshallselecttheSecuritiestoberedeemeduponsuchsinkingfundpaymentdateinthemannerspecifiedinSection1003andcausenoticeof

50

TableofContents

theredemptionthereoftobegiveninthenameofandattheexpenseoftheCompanyinthemannerprovidedinSection1004.Suchnoticehavingbeendulygiven,theredemptionofsuchSecuritiesshallbemadeuponthetermsandinthemannerstatedinSections1006and1007.

Priortoanysinkingfundpaymentdate, theCompanyshall paytotheTrusteeoraPayingAgent(or, if theCompanyisactingasitsownPayingAgent,segregateandholdintrustasprovidedinSection903)incashasumequaltoanyinterestthatwillaccruetothedatefixedforredemptionofSecuritiesorportionsthereoftoberedeemedonsuchsinkingfundpaymentdatepursuanttothisSection1103.

Notwithstandingtheforegoing,withrespecttoasinkingfundforanyseriesofSecurities,ifatanytimetheamountofcashtobepaidintosuchsinkingfundonthenextsucceedingsinkingfundpaymentdate,togetherwithanyunusedbalanceofanyprecedingsinkingfundpaymentorpaymentsforsuchseries,doesnotexceedintheaggregate$100,000,theTrustee,unlessrequestedbytheCompany,shallnotgivethenextsucceedingnoticeoftheredemptionofSecuritiesofsuchseriesthroughtheoperationofthesinkingfund.Anysuchunusedbalanceofmoneysdepositedinsuchsinkingfundshallbeaddedtothesinkingfundpaymentforsuchseriestobemadeincashonthenextsucceedingsinkingfundpaymentdateor,attherequestoftheCompany,shallbeappliedatanytimeorfromtimetotimetothepurchaseofSecuritiesofsuchseries,bypublicorprivatepurchase,intheopenmarketorotherwise,atapurchasepriceforsuchSecurities(excludingaccruedinterest and brokerage commissions, for which the Trustee or any Paying Agent will be reimbursed by the Company) not in excess of the principalamountthereof.

ARTICLETWELVE

REPAYMENTATOPTIONOFHOLDERS

SECTION1201.ApplicabilityofArticle.RepaymentofSecuritiesofanyseriesbeforetheirStatedMaturityattheoptionofHoldersthereofshallbemadeinaccordancewiththetermsofsuchSecuritiesand(exceptasotherwisespecifiedascontemplatedbySection301forSecuritiesofanyseries)inaccordancewiththisArticleTwelve.

SECTION1202.RepaymentofSecurities.SecuritiesofanyseriessubjecttorepaymentinwholeorinpartattheoptionoftheHoldersthereofwill,unlessotherwiseprovidedinthetermsofsuchSecurities,berepaidatapriceequaltotheprincipalamountthereof,togetherwithinterest,ifany,thereonaccruedtotheRepaymentDatespecifiedinorpursuanttothetermsofsuchSecurities.TheCompanycovenantsthat,withrespecttoSecurities,onorbeforetheRepaymentDateit will deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided inSection 903) an amount of money in the Currency in which the Securities of such series are payable (except, if applicable, as otherwise specified pursuant toSection301fortheSecuritiesofsuchseriesandexcept,ifapplicable,asprovidedinSections312(b),312(d)and312(e))sufficienttopaytheprincipal(or,ifsoprovided by the terms of the Securities of any series, a percentage of the principal) of and (except if the Repayment Date shall be an Interest Payment Date)accruedinterest,ifany,on,alltheSecuritiesorportionsthereof,asthecasemaybe,toberepaidonsuchdate.

SECTION1203.ExerciseofOption.SecuritiesofanyseriessubjecttorepaymentattheoptionoftheHoldersthereofwillcontainan"OptiontoElectRepayment"formonthereverseofsuchSecurities.ToberepaidattheoptionoftheHolder,anySecuritysoprovidingforsuchrepayment,withthe"OptiontoElectRepayment"formonthereverseofsuchSecuritydulycompletedbytheHolder(orbytheHolder'sattorneydulyauthorizedinwriting),mustbereceivedbytheCompanyatthePlaceofPaymentthereforspecifiedinthetermsofsuchSecurity(oratsuchotherplaceorplaceswhichtheCompanyshallfromtimetotimenotifytheHoldersofsuchSecurities)notearlierthan45daysnorlaterthan30dayspriortotheRepaymentDate.IflessthantheentireprincipalamountofsuchSecurity is to be repaid in accordance with the terms of such Security, the principal amount of such Security to be repaid, in increments of the minimumdenominationforSecuritiesofsuchseries,andthedenominationordenominationsoftheSecurityorSecuritiestobeissuedtotheHolderfortheportionoftheprincipal amountof suchSecuritysurrenderedthat is not to berepaid, must bespecified. Theprincipal amountof anySecurityprovidingfor repayment at theoptionoftheHolderthereofmaynotberepaidinpartif,followingsuchrepayment,theunpaidprincipalamountofsuchSecuritywouldbelessthantheminimumauthorizeddenominationofSecuritiesoftheseriesofwhichsuchSecuritytoberepaidisapart.

51

TableofContents

ExceptasotherwisemaybeprovidedbythetermsofanySecurityprovidingforrepaymentattheoptionoftheHolderthereof,exerciseoftherepaymentoptionbytheHoldershallbeirrevocableunlesswaivedbytheCompany.

SECTION1204.WhenSecuritiesPresentedforRepaymentBecomeDueandPayable.IfSecuritiesofanyseriesprovidingforrepaymentattheoptionoftheHoldersthereofshallhavebeensurrenderedasprovidedinthisArticleTwelveandasprovidedbyorpursuanttothetermsofsuchSecurities,suchSecuritiesortheportionsthereof,asthecasemaybe,toberepaidshallbecomedueandpayableandshallbepaidbytheCompanyontheRepaymentDatethereinspecified,andonandaftersuchRepaymentDate(unlesstheCompanyshalldefaultinthepaymentofsuchSecuritiesonsuchRepaymentDatetogetherwith,ifapplicable,accruedinterest, ifany,thereontotheRepaymentDate)suchSecuritiesshall,ifthesamewereinterest-bearing,ceasetobearinterestandthecouponsforsuchinterest appertaining to any Bearer Securities so to be repaid, except to the extent provided below, shall be void. Upon surrender of any such Security forrepaymentinaccordancewithsuchprovisions,togetherwithallcoupons,ifany,appertainingtheretomaturingaftertheRepaymentDate,theprincipalamountofsuchSecuritysotoberepaidshallbepaidbytheCompany,togetherwithaccruedinterest,ifany,totheRepaymentDate;provided,however,thatcouponswhoseStatedMaturityisonorpriortotheRepaymentDateshallbepayableonlyatanofficeoragencylocatedoutsidetheUnitedStatesandCanada(exceptasotherwiseprovidedinSection902)and,unlessotherwisespecifiedpursuanttoSection301,onlyuponpresentationandsurrenderofsuchcoupons;providedfurtherthat,inthecaseofRegisteredSecurities,installmentsofinterest,ifany,whoseStatedMaturityisonorpriortotheRepaymentDateshallbepayabletotheHoldersofsuchSecurities,oroneormorePredecessorSecurities,registeredassuchatthecloseofbusinessontherelevantRecordDatesaccordingtotheirtermsandtheprovisionsofSection307.

IfanyBearerSecuritysurrenderedforrepaymentshallnotbeaccompaniedbyallappurtenantcouponsmaturingaftertheRepaymentDate,suchSecuritymaybepaidafter deductingfromtheamountpayabletherefor asprovidedinSection1202anamountequal tothefaceamountof all suchmissingcoupons, orthesurrenderofsuchmissingcouponorcouponsmaybewaivedbytheCompanyandtheTrusteeiftherebefurnishedtothemsuchsecurityorindemnityastheymayrequiretosaveeachofthemandanyPayingAgentharmless.IfthereaftertheHolderofsuchSecurityshallsurrendertotheTrusteeoranyPayingAgentanysuchmissingcouponinrespectofwhichadeductionshallhavebeenmadeasprovidedintheprecedingsentence,suchHoldershallbeentitledtoreceivetheamountsodeducted;provided, however , that interest represented by coupons shall be payable only at an office or agency located outside theUnited States andCanada(except as otherwise provided in Section 902) and, unless otherwise specified as contemplated by Section 301, only upon presentation and surrender ofthosecoupons.

IftheprincipalamountofanySecuritysurrenderedforrepaymentshallnotbesorepaiduponsurrenderthereof,suchprincipalamount(togetherwithinterest,ifany,thereonaccruedtosuchRepaymentDate)shall,untilpaid,bearinterestfromtheRepaymentDateattherateofinterestorYieldtoMaturity(inthecaseofOriginalIssueDiscountSecurities)setforthinsuchSecurity.

SECTION1205.SecuritiesRepaidinPart.UponsurrenderofanyRegisteredSecuritywhichistoberepaidinpartonly,theCompanyshallexecuteandtheTrusteeshallauthenticateanddelivertotheHolderofsuchSecurity,withoutservicechargeandattheexpenseoftheCompany,anewRegisteredSecurityorSecurities of thesameseries each, of anyauthorizeddenominationspecified bytheHolder, in anaggregate principal amount equal to andin exchangefor theportionoftheprincipalofsuchSecuritysosurrenderedwhichisnottoberepaid.

ARTICLETHIRTEEN

DEFEASANCEANDCOVENANTDEFEASANCE

SECTION1301.OptiontoEffectDefeasanceorCovenantDefeasance.ExceptasotherwisespecifiedascontemplatedbySection301forSecuritiesofanyseries,theprovisionsofthisArticleThirteenshallapplytoeachseriesofSecurities,andtheCompanymay,atitsoption,effectdefeasanceoftheSecuritiesofaseriesunderSection 1302, or covenant defeasance of a series under Section 1303in accordance with the terms of such Securities and in accordance with thisArticleThirteen;provided,however,that,unlessotherwisespecified

52

TableofContents

pursuanttoSection301withrespect totheSecurities of anyseries, theCompanymayeffect defeasanceorcovenant defeasanceonlywithrespect toall of theSecuritiesofsuchseries.

SECTION1302.DefeasanceandDischarge.UpontheexercisebytheCompanyoftheaboveoptionapplicabletothisSection1302withrespecttoanySecurities of a series, the Company shall be deemed to have been discharged fromits obligations with respect to such Outstanding Securities and any relatedcouponsonthedatetheconditionssetforthinSection1304aresatisfied(hereinafter,"defeasance").Forthispurpose,suchdefeasancemeansthattheCompanyshallbedeemedtohavepaidanddischargedtheentireindebtednessrepresentedbysuchOutstandingSecuritiesandanyrelatedcoupons,respectively,whichshallthereafter be deemed to be "Outstanding" only for the purposes of Section 1305 and the other provisions of this Indenture referred to in (A), (B), (C) and(D)below,andtohavesatisfieditsotherobligationsundersuchSecuritiesandanyrelatedcoupons,respectively,andthisIndentureinsofarassuchSecuritiesandanyrelatedcouponsareconcerned(andtheTrustee, at theexpenseoftheCompany,shall executeproperinstruments acknowledging thesame),exceptforthefollowingwhichshallsurviveuntilotherwiseterminatedordischargedhereunder:(A)therightsofHoldersofsuchOutstandingSecuritiesandanyrelatedcouponstoreceive,solelyfromthetrustfunddescribedinSection1304andasmorefullysetforthinsuchSection,paymentsinrespectoftheprincipalof(andpremium,ifany)andinterest,ifany,onsuchSecuritiesandanyrelatedcouponswhensuchpaymentsaredue,(B)theCompany'sandtheTrustee'sobligationswithrespecttosuchSecurities underSections 113, 114, 304, 305, 306, 902 and 903 (and any applicable provisions of Article Ten), (C) the rights, powers, trusts, duties andimmunitiesoftheTrusteehereunderand(D)thisArticleThirteen.SubjecttocompliancewiththisArticleThirteen,theCompanymayexerciseitsoptionunderthisSection1302notwithstandingthepriorexerciseoftheoptionunderSection1303withrespecttosuchSecuritiesandanyrelatedcoupons.

SECTION1303. CovenantDefeasance. Uponthe exercise bythe Companyof the aboveoptionapplicable to this Section 1303with respecttoanySecuritiesofaseries,theCompanyshallbereleasedfromitsobligationsunderSections905through907,and,ifspecifiedpursuanttoSection301,itsobligationsunderanyothercovenant,ineachcasewithrespecttosuchOutstandingSecuritiesandanyrelatedcoupons,respectively,onandafterthedatetheconditionssetforth in Section 1304 are satisfied (hereinafter, "covenant defeasance"), and such Securities and any related coupons shall thereafter be deemed not to be"Outstanding"forthepurposesofanydirection,waiver,consentordeclarationorActofHolders(andtheconsequencesofanythereof)inconnectionwithsuchcovenants,butshallcontinuetobedeemed"Outstanding"forallotherpurposeshereunder.Forthispurpose,suchcovenantdefeasancemeansthat,withrespecttosuch Outstanding Securities and any related coupons, the Company may omit to comply with and shall have no liability in respect of any term, condition orlimitationsetforthinanysuchcovenant,whetherdirectlyorindirectly,byreasonofanyreferenceelsewherehereintoanysuchcovenantorbyreasonofreferenceinanysuchcovenanttoanyotherprovisionhereinorinanyotherdocumentandsuchomissiontocomplyshallnotconstituteaDefaultoranEventofDefaultunder Section 501(4)or (8) or otherwise, but, except as specified above, the remainder of this Indenture and such Securities and any related coupons shall beunaffectedthereby.

SECTION1304. Conditionsto Defeasance or Covenant Defeasance . The following shall be the conditions to application of eitherSection1302orSection1303toanyOutstandingSecuritiesoforwithinaseriesandanyrelatedcoupons:

(1)TheCompanyhasdepositedorcausedtobedepositedwiththeTrustee(oranothertrusteesatisfyingtherequirementsofSection607whoshallagree to comply with the provisions of this Article Thirteen applicable to it) as trust funds in trust for the purpose of making the following payments,specificallypledgedassecurityfor,anddedicatedsolelyto,thebenefitoftheHoldersofsuchSecuritiesandanyrelatedcoupons,(A)anamount(insuchCurrencyinwhichsuchSecuritiesandanyrelatedcouponsarethenspecifiedaspayableatStatedMaturity),or(B)GovernmentObligationsapplicabletosuch Securities (determined on the basis of the Currency in which such Securities are then specified as payable atStated Maturity) which through thescheduledpaymentofprincipalandinterestinrespectthereofinaccordancewiththeirtermswillprovide,notlaterthanonedaybeforetheduedateofanypaymentofprincipaloforpremium,ifany,orinterest,ifany,oranyothersumsdueundersuchSecuritiesandanyrelatedcoupons,moneyinanamount,or(C)acombinationthereof,sufficient,intheopinionofanationallyrecognizedfirmofindependentcertifiedpublicaccountantsexpressedinawrittencertificationthereofdeliveredtotheTrustee,topayanddischarge,andwhichshallbeappliedbytheTrustee(orotherqualifyingtrustee)topay

53

TableofContents

anddischarge, (i) theprincipal of(andpremium,if any)andinterest, if any,andanyothersumsdueundersuchOutstandingSecuritiesandanyrelatedcouponsontheStatedMaturity(orRedemptionDate,ifapplicable)ofsuchprincipal(andpremium,ifany)orinstallmentofinterest,ifany,oranyothersumsand(ii)anymandatorysinkingfundpaymentsoranalogouspaymentsapplicabletosuchOutstandingSecuritiesandanyrelatedcouponsonthedayonwhichsuchpaymentsaredueandpayableinaccordancewiththetermsofthisIndentureandofsuchSecuritiesandanyrelatedcoupons;providedthattheTrusteeshallhavebeenirrevocablyinstructedtoapplysuchmoneyortheproceedsofsuchGovernmentObligationstosaidpaymentswithrespecttosuchSecurities andanyrelatedcoupons. Beforesuchadeposit, theCompanymaygivetotheTrustee, inaccordancewithSection1002,anoticeofitselectiontoredeemalloranyportionofsuchOutstandingSecuritiesatafuturedateinaccordancewiththetermsoftheSecuritiesofsuchseriesandArticleTen,whichnoticeshallbeirrevocable.Suchirrevocableredemptionnotice,ifgiven,shallbegiveneffectinapplyingtheforegoing.

(2)InthecaseofanelectionunderSection1302,theCompanyshallhavedeliveredtotheTrusteeanOpinionofCounselintheUnitedStatesstatingthat(x)theCompanyhasreceivedfrom,ortherehasbeenpublishedby,theInternalRevenueServicearuling,or(y)sincethedateofexecutionofthisIndenture, there has beena changein theapplicable U.S. federal incometaxlaw,ineither caseto theeffect that, andbasedthereonsuchopinionshallconfirm that, the Holders of such Outstanding Securities and any related coupons will not recognize income, gain or loss for U.S. federal income taxpurposesasaresultofsuchdefeasanceandwillbesubjecttoU.S.federalincometaxonthesameamounts,inthesamemannerandatthesametimesaswouldhavebeenthecaseifsuchdefeasancehadnotoccurred.

(3)InthecaseofanelectionunderSection1303,theCompanyshallhavedeliveredtotheTrusteeanOpinionofCounselintheUnitedStatestotheeffectthattheHoldersofsuchOutstandingSecuritiesandanyrelatedcouponswillnotrecognizeincome,gainorlossforU.S.federalincometaxpurposesasaresultofsuchcovenantdefeasanceandwillbesubjecttoU.S.federalincometaxonthesameamounts,inthesamemannerandatthesametimesaswouldhavebeenthecaseifsuchcovenantdefeasancehadnotoccurred.

(4)TheCompanyhasdeliveredtotheTrusteeanOpinionofCounselinCanadaorarulingfromCanadaRevenueAgencytotheeffectthattheHoldersofsuchOutstandingSecuritiesandanyrelatedcouponswillnotrecognizeincome,gainorlossforCanadianfederalorprovincialincometaxorothertaxpurposesasaresultofsuchdefeasanceorcovenantdefeasanceandwillbesubjecttoCanadianfederalandprovincialincometaxandothertaxonthe same amounts, in the same manner and at the same times as would have been the case had such defeasance or covenant defeasance not occurred(and for the purposes of such opinion, such Canadian counsel shall assume that Holders of such Outstanding Securities include Holders who are notresidentinCanada).

(5)TheCompanyisnotan"insolventperson"withinthemeaningoftheBankruptcyandInsolvencyAct(Canada)onthedateofsuchdepositoratanytimeduringtheperiodendingonthe91stdayafterthedateofsuchdeposit(itbeingunderstoodthatthisconditionshallnotbedeemedsatisfieduntiltheexpirationofsuchperiod).

(6) NoEvent of Default or event that, with the passing of timeor the givingof notice, or both, shall constitute an Event of Default under theIndentureorsuchSecuritiesoranyrelatedcouponsshallhaveoccurredandbecontinuingonthedateofsuchdeposit(otherthanaDefaultresultingfromthe borrowing of funds and the grant of any related liens to be applied to such deposit) or, insofar as paragraphs (5), (6) and (7) of Section 501 areconcerned,atanytimeduringtheperiodendingonthe91stdayafterthedateofsuchdeposit(itbeingunderstoodthatthisconditionshallnotbedeemedsatisfieduntiltheexpirationofsuchperiod).

(7)Notwithstanding anyotherprovisionsofthisSection1304,suchdefeasanceorcovenantdefeasanceshallbeeffectedincompliancewithanyadditionalorsubstituteterms,conditionsorlimitationsinconnectiontherewithpursuanttoSection301.

54

TableofContents

(8)TheCompanyshallhavedeliveredtotheTrusteeanOfficers'CertificateandanOpinionofCounsel,eachstatingthatallconditionsprecedentprovided for relating to either the defeasance under Section 1302 or the covenant defeasance under Section 1303 (as the case may be) have beencompliedwith.

SECTION1305.DepositedMoneyandGovernmentObligationstoBeHeldinTrust;OtherMiscellaneousProvisions.SubjecttotheprovisionsofthelastparagraphofSection903,allmoneyandGovernmentObligations(orotherpropertyasmaybeprovidedpursuanttoSection301)(includingtheproceedsthereof)depositedwiththeTrustee(orotherqualifyingtrustee,collectivelyforpurposesofthisSection1305,the"Trustee")pursuanttoSection1304inrespectofsuchOutstandingSecurities andanyrelated couponsshallbe held in trust andapplied bythe Trustee, in accordance with the provisions of suchSecurities andanyrelatedcouponsandthis Indenture, tothepayment, either directly orthroughanyPayingAgentastheTrusteemaydetermine(otherthan, withrespect onlytodefeasance pursuant to Section 1302, the Company or any of its Affiliates), to the Holders of such Securities and any related coupons of all sumsdue and tobecomeduethereoninrespectofprincipal(andpremium,ifany)andinterest,ifany,butsuchmoneyneednotbesegregatedfromotherfundsexcepttotheextentrequiredbylaw.

UnlessotherwisespecifiedwithrespecttoanySecuritypursuanttoSection301,if,afteradepositreferredtoinSection1304(1)hasbeenmade,(a)theHolderofaSecurityinrespectofwhichsuchdepositwasmadeisentitledto,anddoes,electpursuanttoSection312(b)orthetermsofsuchSecuritytoreceivepaymentinaCurrencyotherthanthat inwhichthedeposit pursuanttoSection1304(1)hasbeenmadeinrespect ofsuchSecurity, or(b)aConversionEventoccursascontemplated in Section 312(d) or 312(e) or by the terms of any Security in respect of which the deposit pursuant to Section 1304(1) has been made, theindebtednessrepresentedbysuchSecurityandanyrelatedcouponsshallbedeemedtohavebeen,andwillbe,fullydischargedandsatisfiedthroughthepaymentoftheprincipalof(andpremium,ifany)andinterest,ifany,onsuchSecurityastheybecomedueoutoftheproceedsyieldedbyconverting(fromtimetotimeasspecified belowin the case of any suchelection) the amount or other property deposited in respect of such Security into the Currency in whichsuchSecuritybecomespayableasaresultofsuchelectionorConversionEventbasedontheapplicableMarketExchangeRateforsuchCurrencyineffectonthethirdBusinessDaypriortoeachpaymentdate,except,withrespecttoaConversionEvent,forsuchCurrencyineffect(asnearlyasfeasible)atthetimeoftheConversionEvent.

TheCompanyshallpayandindemnifytheTrusteeagainstanytax,feeorotherchargeimposedonorassessedagainsttheGovernmentObligationsdepositedpursuanttoSection1304ortheprincipalandinterestreceivedinrespectthereofotherthananysuchtax,feeorotherchargewhichbylawisfortheaccountoftheHoldersofsuchOutstandingSecuritiesandanyrelatedcoupons.

Anything inthisArticleThirteentothecontrarynotwithstanding,theTrusteeshalldeliverorpaytotheCompanyfromtimetotimeuponrequestoftheCompanyanymoneyorGovernmentObligations(orotherpropertyandanyproceedstherefrom)heldbyitasprovidedinSection1304which,intheopinionofanationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amountthereof whichwouldthenberequired to bedeposited to effect anequivalent defeasance or covenantdefeasance, as applicable, in accordancewiththis ArticleThirteen.

SECTION1306.Reinstatement.IftheTrusteeoranyPayingAgentisunabletoapplyanymoneyinaccordancewithSection1305byreasonofanyorderorjudgmentofanycourtorgovernmentalauthorityenjoining,restrainingorotherwiseprohibitingsuchapplication,thentheobligationsoftheCompanyunderthisIndentureandsuchSecuritiesandanyrelatedcouponsshallberevivedandreinstatedasthoughnodeposithadoccurredpursuanttoSection1302orSection1303,asthecasemaybe,untilsuchtimeastheTrusteeorPayingAgentispermittedtoapplyallsuchmoneyinaccordancewithSection1305;provided,however,thatiftheCompanymakesanypaymentofprincipalof(orpremium,ifany)orinterest,ifany,onanysuchSecurityoranyrelatedcouponfollowingthereinstatementofitsobligations,theCompanyshallbesubrogatedtotherightsoftheHoldersofsuchSecuritiesandanyrelatedcouponstoreceivesuchpaymentfromthemoneyheldbytheTrusteeorPayingAgent.

55

TableofContents

ARTICLEFOURTEEN

MEETINGSOFHOLDERSOFSECURITIES

SECTION1401.PurposesforWhichMeetingsMayBeCalled.IfSecuritiesofaseriesareissuable,inwholeorinpart,asBearerSecurities,ameetingofHoldersofSecuritiesofsuchseriesmaybecalledatanytimeandfromtimetotimepursuanttothisArticleFourteentomake,giveortakeanyrequest,demand,authorization,direction,notice,consent,waiverorotheractionprovidedbythisIndenturetobemade,givenortakenbyHoldersofSecuritiesofsuchseries.

SECTION1402.Call,NoticeandPlaceofMeetings.

(a)TheTrusteemayatanytimecallameetingofHoldersofSecuritiesofanyseriesforanypurposespecifiedinSection1401,tobeheldatsuchtimeandatsuchplaceintheCityofNewYorkorinLondonorinVancouverastheTrusteeshalldetermine.NoticeofeverymeetingofHoldersofSecuritiesofanyseries,settingforththetimeandtheplaceofsuchmeetingandingeneraltermstheactionproposedtobetakenatsuchmeeting,shallbegiven,inthemannerprovidedforinSection106,notlessthan21normorethan180dayspriortothedatefixedforthemeeting.

(b)IncaseatanytimetheCompany,pursuanttoaBoardResolutionortheHoldersofatleast10%inprincipalamountoftheOutstandingSecuritiesofanyseriesshallhaverequestedtheTrusteetocallameetingoftheHoldersofSecuritiesofsuchseriesforanypurposespecifiedinSection1401,bywrittenrequestsettingforthinreasonabledetail theactionproposedtobetakenat themeeting, andtheTrusteeshall not havemadethefirst publicationofthenoticeofsuchmeetingwithin21daysafterreceiptofsuchrequestorshallnotthereafterproceedtocausethemeetingtobeheldasprovidedherein,thentheCompanyortheHoldersofSecuritiesofsuchseriesintheamountabovespecified,asthecasemaybe,maydeterminethetimeandtheplaceintheCityofNewYork,LondonorinToronto,Ontario,Canadaforsuchmeetingandmaycallsuchmeetingforsuchpurposesbygivingnoticethereofasprovidedinparagraph(a)ofthisSection1402.

SECTION1403.PersonsEntitledtoVoteatMeetings.TobeentitledtovoteatanymeetingofHoldersofSecuritiesofanyseries,aPersonshallbe(1)aHolderofoneormoreOutstandingSecuritiesofsuchseries,or(2)aPersonappointedbyaninstrumentinwritingasproxyforaHolderorHoldersofoneormoreOutstandingSecuritiesofsuchseriesbysuchHolderofHolders.TheonlyPersonswhoshallbeentitledtobepresentortospeakatanymeetingofHoldersofSecurities of any series shall be the Person entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel and anyrepresentativesoftheCompanyanditscounsel.

SECTION1404.Quorum;Action.ThePersonsentitledtovoteamajorityinprincipalamountoftheOutstandingSecuritiesofaseriesshallconstituteaquorumforameetingofHoldersofSecuritiesofsuchseries; provided,however, that, if anyactionistobetakenatsuchmeetingwithrespect toaconsentorwaiver which this Indenture expressly provides may be given by the Holders of not less than a specified percentage in principal amount of the OutstandingSecurities of a series, the Persons entitled to vote such specified percentage in principal amount of the Outstanding Securities of such series shall constitute aquorum.Intheabsenceofaquorumwithin30minutesofthetimeappointedforanysuchmeeting,themeetingshall, if convenedattherequestofHoldersofSecuritiesofsuchseries,bedissolved.Inanyothercasethemeetingmaybeadjournedforaperiodofnotlessthan10daysasdeterminedbythechairmanofthemeetingpriortotheadjournmentofsuchmeeting.Intheabsenceofaquorumatanysuchadjournedmeeting,suchadjournedmeetingmaybefurtheradjournedforaperiodofnotlessthan10daysasdeterminedbythechairmanofthemeetingpriortotheadjournmentofsuchadjournedmeeting.NoticeofthereconveningofanyadjournedmeetingshallbegivenasprovidedinSection1402(a),exceptthatsuchnoticeneedbegivenonlyoncenotlessthanfivedayspriortothedateonwhichthemeetingisscheduledtobereconvened.Noticeofthereconveningofanyadjournedmeetingshallstateexpresslythepercentage,asprovidedabove,oftheprincipalamountoftheOutstandingSecuritiesofsuchserieswhichshallconstituteaquorum.

Subjecttotheforegoing,atthereconveningofanymeetingadjournedforlackofaquorumthePersonsentitledtovote25%inaggregateprincipalamountoftheOutstandingSecuritiesatthetimeshallconstituteaquorumforthetakingofanyactionsetforthinthenoticeoftheoriginalmeeting.

56

TableofContents

ExceptaslimitedbytheprovisotoSection802,anyresolutionpresentedtoameetingoradjournedmeetingdulyreconvenedatwhichaquorumispresentasaforesaid may be adopted by the affirmative vote of the Holders of not less than a majority in principal amount of the Outstanding Securities of such series;provided, however, that, except as limited by the proviso to Section 802, any resolution with respect to any request, demand, authorization, direction, notice,consent,waiverorotheractionwhichthisIndentureexpresslyprovidesmaybemade,givenortakenbytheHoldersofaspecifiedpercentage,whichislessthanamajority, in principal amount of the Outstanding Securities of a series may be adopted at a meeting or an adjourned meeting duly reconvenedandat whichaquorumispresentasaforesaidbytheaffirmativevoteoftheHoldersofnotlessthansuchspecifiedpercentageinprincipalamountoftheOutstandingSecuritiesofsuchseries.

AnyresolutionpassedordecisiontakenatanymeetingofHoldersofSecuritiesofanyseriesdulyheldinaccordancewiththisSection1404shallbebindingonalltheHoldersofSecuritiesofsuchseriesandtherelatedcoupons,whetherornotpresentorrepresentedatthemeeting.

NotwithstandingtheforegoingprovisionsofthisSection1404,ifanyactionistobetakenatameetingofHoldersofSecuritiesofanyserieswithrespecttoanyrequest,demand,authorization,direction,notice,consent,waiverorotheractionthatthisIndentureexpresslyprovidesmaybemade,givenortakenbytheHoldersofaspecifiedpercentageinprincipalamountofallOutstandingSecuritiesaffectedthereby,oroftheHoldersofsuchseriesandoneormoreadditionalseries:

(i)thereshallbenominimumquorumrequirementforsuchmeeting;and

(ii)theprincipalamountoftheOutstandingSecuritiesofsuchseriesthatvoteinfavorofsuchrequest, demand,authorization,direction,notice,consent,waiverorotheractionshallbetakenintoaccountindeterminingwhethersuchrequest,demand,authorization,direction,notice,consent,waiverorotheractionhasbeenmade,givenortakenunderthisIndenture.

SECTION1405.DeterminationofVotingRights;ConductandAdjournmentofMeetings.

(a)NotwithstandinganyprovisionsofthisIndenture,theTrusteemaymakesuchreasonableregulationsasitmaydeemadvisableforanymeetingofHoldersofSecuritiesofaseriesinregardtoproofoftheholdingofSecuritiesofsuchseriesandoftheappointmentofproxiesandinregardtotheappointmentanddutiesof inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning theconductofthemeetingasitsshalldeemappropriate.Exceptasotherwisepermittedorrequiredbyanysuchregulations,theholdingofSecuritiesshallbeprovedinthemannerspecifiedinSection104andtheappointmentofanyproxyshallbeprovedinthemannerspecifiedinSection104orbyhavingthesignatureofthepersonexecutingtheproxywitnessedorguaranteedbyanytrustcompany,bankorbankerauthorizedbySection104tocertifytotheholdingofBearerSecurities.Suchregulationsmayprovidethatwritteninstrumentsappointingproxies,regularontheirface,maybepresumedvalidandgenuinewithouttheproofspecifiedinSection104orotherproof.

(b)TheTrusteeshall,byaninstrumentinwritingappointatemporarychairmanofthemeeting,unlessthemeetingshallhavebeencalledbytheCompanyorbyHoldersofSecuritiesasprovidedinSection1402(b),inwhichcasetheCompanyortheHoldersofSecuritiesoftheseriescallingthemeeting,asthecasemaybe,shallinlikemannerappointatemporarychairman.ApermanentchairmanandapermanentsecretaryofthemeetingshallbeelectedbyvoteofthePersonsentitledtovoteamajorityinprincipalamountoftheOutstandingSecuritiesofsuchseriesrepresentedatthemeeting.

(c)AtanymeetingeachHolderofaSecurityofsuchseriesorproxyshallbeentitledtoonevoteforeach$1,000principalamountofOutstandingSecuritiesofsuchseriesheldorrepresentedbyhim(determinedasspecifiedinthedefinitionof"Outstanding"inSection101);provided,however,thatnovoteshallbecastorcountedatanymeetinginrespectofanySecuritychallengedasnotOutstandingandruledbythechairmanofthemeetingtobenotOutstanding.Thechairmanofthemeetingshallhavenorighttovote,exceptasaHolderofaSecurityofsuchseriesorproxy.

(d)AnymeetingofHoldersofSecuritiesofanyseriesdulycalledpursuanttoSection1402atwhichaquorumispresentmaybeadjournedfromtimetotimebyPersonsentitledtovoteamajorityinprincipal

57

TableofContents

amountoftheOutstandingSecuritiesofsuchseriesrepresentedatthemeeting;andthemeetingmaybeheldassoadjournedwithoutfurthernotice.

SECTION1406.CountingVotesandRecordingActionofMeetings.ThevoteuponanyresolutionsubmittedtoanymeetingofHoldersofSecuritiesofanyseriesshallbebywrittenballotsonwhichshallbesubscribedthesignaturesoftheHoldersofSecuritiesofsuchseriesoroftheirrepresentativesbyproxyandtheprincipalamountsandserialnumbersoftheOutstandingSecuritiesofsuchseriesheldorrepresentedbythem.Thepermanentchairmanofthemeetingshallappointtwoinspectorsofvoteswhoshallcountallvotescastatthemeetingfororagainstanyresolutionandwhoshallmakeandfilewiththesecretaryofthemeetingtheirverifiedwrittenreportsinduplicateofallvotescastatthemeeting.Arecord,atleastinduplicate,oftheproceedingsofeachmeetingofHoldersofSecuritiesofanyseriesshallbepreparedbytheSecretaryofthemeetingandthereshallbeattachedtosaidrecordtheoriginalreportsoftheinspectorsofvotesonanyvotebyballottakenthereatandaffidavitsbyoneormorepersonshavingknowledgeofthefactssettingforthacopyofthenoticeofthemeetingandshowingthatsaidnoticewasgivenasprovidedinSection1402and,ifapplicable,Section1404.EachcopyshallbesignedandverifiedbytheaffidavitsofthepermanentchairmanandsecretaryofthemeetingandonesuchcopyshallbedeliveredtotheCompany,andanothertotheTrusteetobepreservedbytheTrustee,thelattertohaveattachedtheretotheballotsvotedatthemeeting.Anyrecordsosignedandverifiedshallbeconclusiveevidenceofthemattersthereinstated.

*****

58

TableofContents

ThisIndenturemaybeexecutedinanynumberofcounterparts,eachofwhichsoexecutedshallbedeemedtobeanoriginal,butallsuchcounterpartsshalltogetherconstitutebutoneandthesameIndenture.

INWITNESSWHEREOF,thepartiesheretohavecausedthisIndenturetobedulyexecuted,allasofthedayandyearfirstabovewritten.


By:

Name:Title:

By:

Name:Title:

,asTrustee

By:

Name:Title:

TableofContents

EXHIBITA

FORMOFSECURITY

*[Unless this Security is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to theCompany (as defined below) or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name ofCede&Co.orsuchothernameasisrequestedbyanauthorizedrepresentativeofDTC(andanypaymentismadetoCede&Co.ortosuchotherentityasisrequestedbyanauthorizedrepresentativeofDTC),ANYTRANSFER,PLEDGEOROTHERUSEHEREOFFORVALUEOROTHERWISEBYORTOANYPERSONISWRONGFULinasmuchastheregisteredownerhereof,Cede&Co.,hasaninterestherein.

*[ThisSecurityisaglobalSecuritywithinthemeaningoftheIndenturehereinafterreferredtoandisregisteredinthenameofDTCoranomineeofDTC.ThisSecurityisexchangeableforSecuritiesregisteredinthenameofaPersonotherthanDTCoritsnomineeonlyinthelimitedcircumstancesdescribed in the Indenture, and no transfer of this Security (other than a transfer of this Security as a whole by DTCto a nominee of DTCor by anomineeofDTCtoDTCoranothernomineeofDTCorbyDTCoranysuchnomineetoasuccessorDepositaryornomineeofsuchsuccessorDepositary)mayberegisteredexceptinlimitedcircumstances.]


%[Debenture][Bond][Note][due][Due]

No.$CUSIP:

Platinum GroupMetals Ltd., a corporation incorporated under the laws of the Province of British Columbia (herein called the "Company," which termincludesanysuccessorPersonundertheIndenturehereinafterreferredto),forvaluereceived,herebypromisestopayto[Cede&Co.]*,orregisteredassigns,theprincipalsumof$(DOLLARS)on[dateandyear],asrevisedbytheScheduleofIncreasesorDecreasesinGlobalSecurityattachedhereto,attheofficeoragencyoftheCompanyreferredtobelow,andtopayinterestthereonon[dateandyear],andsemi-annuallythereafteron[date]and[date]ineachyear,fromandincluding[dateandyear],**orfromandincludingthemostrecentInterestPaymentDatetowhichinteresthasbeenpaidordulyprovidedfor,attherateof%perannum,untiltheprincipalhereofispaidordulyprovidedfor,and(totheextentlawful)topayondemandinterestonanyoverdueprincipal, [premium,ifany,]orinterestattheratebornebythisSecurityfromandincludingthedateonwhichsuchoverdueprincipal,[premium,ifany,]orinterestbecomespayabletobutexcludingthedatepaymentofsuchprincipal,[premium,ifany,]orinteresthasbeenmadeordulyprovidedfor.Theinterestsopayable,andpunctuallypaidordulyprovidedfor,onanyInterestPaymentDatewill,asprovidedinsuchIndenture,bepaidtothePersoninwhosenamethisSecurity(oroneormorePredecessorSecurities)isregisteredatthecloseofbusinessontheRegularRecordDateforsuchinterest,whichshallbethe[date]or[date](whetherornotaBusinessDay),asthecasemaybe,nextprecedingsuchInterestPaymentDate.AnysuchinterestnotsopunctuallypaidordulyprovidedforshallforthwithceasetobepayabletotheHolderonsuchRegularRecordDate,andsuchDefaultedInterest,and(totheextentlawful)interestonsuch Defaulted Interest at the rate borne by the Securities of this series, may be paid to the Person in whose name this Security (or one or more PredecessorSecurities)isregisteredatthecloseofbusinessonaSpecialRecordDateforthepaymentofsuchDefaultedInteresttobefixedbytheTrustee, noticewhereofshallbegiventoHoldersofSecuritiesofthisseriesnotlessthan10dayspriortosuchSpecialRecordDate,ormaybepaidatanytimeinanyotherlawfulmannernotinconsistentwiththerequirementsofanysecuritiesexchangeonwhichtheSecuritiesofthisseriesmaybelisted,anduponsuchnoticeasmayberequiredbysuchexchange,allasmorefullyprovidedinsaidIndenture.ReferenceisherebymadetothefurtherprovisionsofthisSecuritysetforthon

* Include if Securities are to issued in global form. At the time of this writing, DTCwill not accept global securities with an aggregate principal amount inexcess of $500,000,000. If the aggregateprincipalamountoftheofferingexceedsthisamount,usemorethanoneglobalsecurity.

** Insertdatefromwhichinterestistoaccrueor,iftheSecuritiesaretobesold"flat,"theclosingdateoftheoffering.

A-1

TableofContents

thereversehereof,whichfurtherprovisionsshallforallpurposeshavethesameeffectasifsetforthatthisplace.

UnlessthecertificateofauthenticationhereonhasbeendulyexecutedbytheTrusteebymanualsignature,thisSecurityshallnotbeentitledtoanybenefitundertheIndenture,orbevalidorobligatoryforanypurpose.

INWITNESSWHEREOF,theCompanyhascausedthisinstrumenttobedulyexecuted.

TRUSTEE'SCERTIFICATEOFAUTHENTICATION


A-2

Dated: PLATINUMGROUPMETALSLTD.

By:

By:

asTrustee

By:

AuthorizedOfficer

TableofContents

[FormofReverse]

This Security is one of a duly authorized issue of securities of the Company designated as its % [Debentures] [Notes] [due][Due](hereincalledthe"Securities"),limited(exceptasotherwiseprovidedintheIndenturereferredtobelow[andexceptasprovidedinthesecond succeeding paragraph]) in aggregate principal amount to$[,000,000], which maybe issued under an indenture (herein called the "Indenture") dated asof,betweenPlatinumGroupMetalsLtd.and,astrustee(hereincalledthe"Trustee,"whichtermincludesanysuccessortrusteeundertheIndenture), towhichIndentureandall indenturessupplemental theretoreferenceisherebymadeforastatementoftherespective rights, limitations of rights, duties, obligations andimmunities thereunder of theCompany, theTrusteeandtheHolders of theSecurities, andof thetermsuponwhichtheSecuritiesare,andaretobe,authenticatedanddelivered.[ThisSecurityisaglobalSecurityrepresenting$[,,000]aggregateprincipalamount[atmaturity]**oftheSecuritiesofthisseries.]***

Paymentoftheprincipalof(andpremium,ifany,)andinterestonthisSecuritywillbemadeattheofficeoragencyoftheCompanymaintainedforthatpurposein,insuchcoinorcurrencyoftheUnitedStatesofAmericaasatthetimeofpaymentislegaltenderforpaymentofpublicandprivatedebts;provided,however,thatpaymentofinterestmaybemadeattheoptionoftheCompany(i)bycheckmailedtotheaddressofthePersonentitledtheretoassuchaddressshallappearontheSecurityRegisteror(ii)bywiretransfertoanaccountmaintainedintheUnitedStatesbythePersonentitledtosuchpaymentasspecifiedintheSecurityRegister.[Notwithstandingtheforegoing,paymentsofprincipal,premium,ifany,andinterestonaglobalSecurityregisteredinthenameofaDepositaryoritsnomineewillbemadebywiretransferofimmediatelyavailablefunds.]PrincipalpaidinrelationtoanySecurityofthisseriesatMaturityshallbepaidtotheHolderofsuchSecurityonlyuponpresentationandsurrenderofsuchSecuritytosuchofficeoragencyreferredtoabove.

[AsprovidedforintheIndenture,theCompanymayfromtimetotimewithoutnoticeto,ortheconsentof,theHoldersoftheSecurities,createandissueadditionalSecuritiesofthisseriesundertheIndenture, equalinranktotheOutstandingSecuritiesofthisseriesinall respects(orinall respectsexceptforthepaymentofinterestaccruingpriortotheissuedateofthenewSecuritiesofthisseriesorexceptforthefirstpaymentofinterestfollowingtheissuedateofthenewSecuritiesofthisseries)sothatthenewSecuritiesofthisseriesshallbeconsolidatedandformasingleserieswiththeOutstandingSecuritiesofthisseriesandhavethesametermsastostatus,redemptionorotherwiseastheOutstandingSecuritiesofthisseries.]****

[TheSecuritiesofthisseriesaresubjecttoredemptionuponnotlessthan30normorethan60days'notice,atanytimeafter[dateandyear],asawholeorinpart, at theelectionoftheCompany[, at aRedemptionPriceequaltothepercentageoftheprincipal amountset forthbelowif redeemedduringthe12-monthperiodbeginning[date],oftheyearsindicated:

andthereafter]at100%oftheprincipalamount,togetherinthecaseofanysuchredemptionwithaccruedinterest,ifany,totheRedemptionDate,allasprovidedintheIndenture.]*

** Includeifadiscountsecurity.

*** IncludeinaglobalSecurity.

**** IncludeifthisseriesofSecuritiesmaybereopenedpursuantto0oftheIndenture.

* IncludeiftheSecuritiesaresubjecttoredemptionorreplacewithanyotherredemptionprovisionsapplicabletotheSecurities.

A-3

Year RedemptionPrice Year RedemptionPrice % % % % % %

TableofContents

[The Securities of this series are also subject to redemption on [date] in each year commencing in [year] through the operation of a sinking fund, at aRedemptionPriceequalto100%oftheprincipalamount,togetherwithaccruedinteresttotheRedemptionDate,allasprovidedintheIndenture.Thesinkingfundprovidesforthe[mandatory]redemptionon[date]ineachyearbeginningwiththeyear[year]of$aggregateprincipalamountofSecuritiesofthisseries.[Inaddition,theCompanymay,atitsoption,electtoredeemuptoanadditional$aggregateprincipalamountofSecuritiesofthisseriesonany such date.] Securities of this series acquired or redeemed by the Company (other than through operation of the sinking fund) may be credited againstsubsequent[mandatory]sinkingfundpayments.]**

[TheSecuritiesofthisseriesaresubjecttorepaymentattheoptionoftheHoldersthereofon[RepaymentDate(s)]ataRepaymentPriceequalto%oftheprincipalamount,togetherwithaccruedinteresttotheRepaymentDate,allasprovidedintheIndenture.ToberepaidattheoptionoftheHolder,thisSecurity,withthe"OptiontoElectRepayment"formdulycompletedbytheHolderhereof(ortheHolder'sattorneydulyauthorizedinwriting), mustbereceivedbytheCompanyatitsofficeoragencymaintainedforthatpurposeinnotearlierthan45daysnorlaterthan30dayspriortotheRepaymentDate.ExerciseofsuchoptionbytheHolderofthisSecurityshallbeirrevocableunlesswaivedbytheCompany.]***

Inthecaseofanyredemption[repayment] ofSecurities ofthis series, interest installments whoseStatedMaturityis onorpriortotheRedemptionDate[RepaymentDate]willbepayabletotheHoldersofsuchSecurities,oroneormorePredecessorSecurities,ofrecordatthecloseofbusinessontherelevantrecorddatesaccordingtotheirtermsandtheprovisionsofSection307oftheIndenture.Securitiesofthisseries(orportionsthereof)forwhoseredemption[repayment]paymentismadeordulyprovidedforinaccordancewiththeIndentureshallceasetobearinterestfromandaftertheRedemptionDate[RepaymentDate].

Intheeventofredemption[repayment]ofthisSecurityinpartonly,anewSecurityorSecuritiesofthisseriesfortheunredeemed[unpaid]portionhereofshallbeissuedinthenameoftheHolderhereofuponthecancellationhereof.

IfanEventofDefaultshalloccurandbecontinuing,theprincipalof[andaccruedbutunpaidintereston]alltheSecuritiesofthisseriesmaybedeclareddueandpayableinthemannerandwiththeeffectprovidedintheIndenture.

The Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of the Company on this Security and (b) certain restrictivecovenantsandtherelatedDefaultsandEventsofDefaultapplicabletotheSecuritiesofthisseries,uponcompliancebytheCompany,withcertainconditionssetforththerein,whichprovisionsapplytothisSecurity.

TheIndenturepermits,withcertainexceptionsasthereinprovided,theamendmentthereofandthemodificationoftherightsandobligationsoftheCompanyandtherightsoftheHoldersundertheIndentureatanytimebytheCompanyandtheTrusteewiththeconsentoftheHoldersofamajorityinaggregateprincipalamountoftheSecuritiesatthetimeOutstandingofallseriesaffectedbysuchamendmentormodification.TheIndenturealsocontainsprovisionspermittingtheHoldersofspecifiedpercentagesinaggregateprincipalamountoftheSecuritiesofthisseriesatthetimeOutstanding,onbehalfoftheHoldersofalltheSecuritiesofthisseries,towaivecompliancebytheCompanywithcertainprovisionsoftheIndentureandalsocontainsprovisionspermittingtheHoldersofnotlessthanamajorityinaggregateprincipalamountoftheOutstandingSecuritiesofallserieswithrespecttowhichaDefaultshallhaveoccurredandshallbecontinuing,onbehalfoftheHoldersofall OutstandingSecuritiesofsuchaffectedseries, towaivecertainpastdefaults undertheIndentureandtheir consequences. AnysuchconsentorwaiverbyoronbehalfoftheHolderofthisSecurityshallbeconclusiveandbindinguponsuchHolderanduponallfutureHoldersofthisSecurityandofanySecurityissuedupontheregistrationoftransferhereoforinexchangeherefororinlieuhereofwhetherornotnotationofsuchconsentorwaiverismadeuponthisSecurity.

** IncludeiftheSecuritiesaresubjecttoasinkingfund.

*** IncludeiftheSecuritiesaresubjecttorepaymentattheoptionoftheHolders.

A-4

TableofContents

No reference herein to the Indenture andnoprovisionof this Security or of the Indenture shall alter or impair the obligationof the Company, whichisabsoluteandunconditional,topaytheprincipalof(andpremium,ifany,on)andinterestonthisSecurityatthetimes,place,andrate,andinthecoinorcurrency,hereinprescribed.

AsprovidedintheIndentureandsubjecttocertainlimitationsthereinsetforth,thetransferofthisSecurityisregisterableontheSecurityRegisteroftheCompany, upon surrender of this Security for registration of transfer at the office or agency of the Company maintained for such purposeindulyendorsedby,oraccompaniedbyawritteninstrumentoftransferinformsatisfactorytotheCompanyandtheSecurityRegistrardulyexecutedby,theHolderhereoforhisattorneydulyauthorizedinwriting,andthereupononeormorenewSecuritiesofthisseries,ofauthorizeddenominationsandforthesameaggregateprincipalamount,willbeissuedtothedesignatedtransfereeortransferees.

TheSecuritiesofthisseriesareissuableonlyinregisteredformwithoutcouponsindenominationsof$1,000andanyintegralmultiplethereof.AsprovidedintheIndentureandsubjecttocertainlimitationsthereinsetforth,theSecuritiesofthisseriesareexchangeableforalikeaggregateprincipalamountofSecuritiesofthisseriesofadifferentauthorizeddenomination,asrequestedbytheHoldersurrenderingthesame.

NoservicechargeshallbemadeforanyregistrationoftransferorexchangeofSecuritiesofthisseries,buttheCompanymayrequirepaymentofasumsufficienttocoveranytaxorothergovernmentalchargepayableinconnectiontherewith.

PriortothetimeofduepresentmentofthisSecurityforregistrationoftransfer,theCompany,theTrusteeandanyagentoftheCompanyortheTrusteemaytreatthePersoninwhosenamethisSecurityisregisteredastheownerhereofforallpurposes,whetherornotthisSecurityisoverdue,andneithertheCompany,theTrusteenoranyagentshallbeaffectedbynoticetothecontrary.

Interest onthisSecurityshallbecomputedonthebasisofa360-dayyearoftwelve30-daymonths.ForthepurposesofdisclosureundertheInterestAct(Canada), theyearlyrate of interest to whichinterest calculatedundera Securityof this series for anyperiodinanycalendar year (the"calculationperiod") isequivalentistheratepayableunderaSecurityofthisseriesinrespectofthecalculationperiodmultipliedbyafractionthenumeratorofwhichistheactualnumberofdaysinsuchcalendaryearandthedenominatorofwhichistheactualnumberofdaysinthecalculationperiod.

[If at any time, (i) the Depositary for the Securities of this series notifies the Company that it is unwilling or unable to continue as Depositary for theSecuritiesofthisseriesorifatanytimetheDepositaryfortheSecuritiesofthisseriesshallnolongerbeaclearingagencyregisteredassuchundertheSecuritiesExchange Act of 1934, as amended and a successor Depositary is not appointed by the Company within 90 days after the Company receives such notice orbecomesawareofsuchcondition,asthecasemaybe,[or](ii)theCompanydeterminesthattheSecuritiesofthisseriesshallnolongerberepresentedbyaglobalSecurityorSecurities[or(iii) anyEventofDefault shall haveoccurredandbecontinuingwithrespect totheSecurities ofthis series]*, theninsuchevent theCompanywillexecuteandtheTrusteewillauthenticateanddeliverSecuritiesofthisseriesindefinitiveregisteredform,inauthorizeddenominations,andinanaggregateprincipalamountequaltotheprincipalamountofthisSecurityinexchangeforthisSecurity.SuchSecuritiesofthisseriesindefinitiveregisteredformshallberegisteredinsuchnamesandissuedinsuchauthorizeddenominationsastheDepositary,pursuanttoinstructionsfromitsdirectorindirectparticipantsorotherwise, shall instruct theTrustee. TheTrusteeshall deliver suchSecurities of this series tothePersonsin whosenamessuchSecurities of this series are soregistered.]**

TheIndentureandthisSecurityshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofNewYork.

Allreferenceshereinto"dollars"or"$"meansadollarorotherequivalentunitinsuchcoinorcurrencyoftheUnitedStatesofAmericaasatthetimeshouldbelegaltenderforthepaymentofpublicandprivatedebts,andalltermsusedinthisSecuritywhicharedefinedintheIndentureshallhavethemeaningsassignedtothemintheIndenture.

* Include,ifapplicable.

** Includeforglobalsecurity.

A-5

TableofContents

[OPTIONTOELECTREPAYMENT

TheundersignedherebyirrevocablyrequestsandinstructstheCompanytorepaythewithinSecurity[(ortheportionthereofspecifiedbelow)],pursuanttoitsterms,onthe"RepaymentDate"firstoccurringafterthedateofreceiptofthewithinSecurityasspecifiedbelow,ataRepaymentPriceequal%oftheprincipalamountthereof,togetherwithaccruedinteresttotheRepaymentDate,totheundersignedat:

(PleasePrintorTypeNameandAddressoftheUndersigned.)

ForthisOptiontoElectRepaymenttobeeffective,thisSecuritywiththeOptiontoElectRepaymentdulycompletedmustbereceivednotearlierthan45dayspriortotheRepaymentDateandnotlaterthan30dayspriortotheRepaymentDatebytheCompanyatitsofficeoragencyinNewYork,NewYork.

IflessthantheentireprincipalamountofthewithinSecurityistoberepaid,specifytheportionthereof(whichshallbe$1,000oranintegralmultiplethereof)whichistoberepaid:$.

If lessthantheentireprincipalamountofthewithinSecurityistoberepaid,specifythedenomination(s) oftheSecurity(ies)tobeissuedfortheunpaidamount($1,000oranyintegralmultipleof$1,000):$.

A-6

Dated:

Note:ThesignaturetothisOptiontoElectRepaymentmustcorrespondwiththenameaswrittenuponthefaceofthewithinSecurityineveryparticularwithoutalterationsorenlargementoranychangewhatsoever.]

TableofContents

ASSIGNMENTFORM*

ToassignthisSecurity,fillintheformbelow:IorweassignandtransferthisSecurityto

(INSERTASSIGNEE'SSOC.SEC.,SOC.INS.ORTAXIDNO.)

(Printortypeassignee'sname,addressandziporpostalcode)

andirrevocablyappointagenttotransferthisSecurityonthebooksoftheCompany.Theagentmaysubstituteanothertoactforhim.

* Omitifaglobalsecurity

A-7

Dated: YourSignature:

(SignexactlyasnameappearsontheothersideofthisSecurity)

SignatureGuarantee:

(Signaturemustbeguaranteedbyacommercialbankortrustcompany,byamemberormembers'organizationofTheNewYorkStockExchangeorbyanothereligibleguarantorinstitutionasdefinedinRule17Ad-15undertheSecuritiesExchangeActof1934)

TableofContents

EXHIBITB-1

FORMOFCERTIFICATETOBEGIVENBYPERSONENTITLEDTORECEIVEBEARERSECURITY

ORTOOBTAININTERESTPAYABLEPRIORTOTHEEXCHANGEDATE

CERTIFICATE

[InserttitleorsufficientdescriptionofSecuritiestobedelivered]

Thisistocertifythatasofthedatehereof,andexceptassetforthbelow,theabove-captionedSecuritiesheldbyyouforouraccount(i)arenotownedbyanyperson(s)thatisacitizenorresidentoftheUnitedStates;acorporationorpartnership(includinganyentitytreatedasacorporationorpartnershipforU.S.federalincome tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia unless, in the case of apartnership,U.S.TreasuryRegulationsprovideotherwise;anyestatewhoseincomeissubjecttoU.S.federalincometaxregardlessofitssourceor;atrustif(A)aU.S.courtcanexerciseprimarysupervisionoverthetrust'sadministrationandoneormoreUnitedStatespersonsareauthorizedtocontrolallsubstantialdecisionsofthetrustor(B)atrustinexistenceonAugust20,1996,andtreatedasaUnitedStatespersonbeforethisdatethattimelyelectedtocontinuetobetreatedasaUnitedStatesperson("UnitedStatespersons(s)"),(ii)areownedbyUnitedStatesperson(s)thatare(a)foreignbranchesofU.S.financialinstitutions(financialinstitutions,asdefinedinU.S.TreasuryRegulationSection1.165-12(c)(1)(iv)arehereinreferredtoas"financialinstitutions")purchasingfortheirownaccountorforresale,or(b)UnitedStatesperson(s)whoacquiredtheSecuritiesthroughforeignbranchesofU.S.financialinstitutionsandwhoholdtheSecuritiesthroughsuchU.S.financialinstitutionsonthedatehereof(andineithercase(a)or(b),eachsuchU.S.financialinstitutionherebyagrees,onitsownbehalforthroughitsagent, that you may advise Platinum Group Metals Ltd. or its agent that such financial institution will comply with the requirements of Section 165(j)(3)(A),(B)or(C)oftheU.S.InternalRevenueCodeof1986,asamended,andtheregulationsthereunder),or(iii)areownedbyU.S.orforeignfinancialinstitution(s)forpurposesofresaleduringtherestrictedperiod(asdefinedinU.S.TreasuryRegulationSection1.163-5(c)(2)(i)(D)(7)),and,inaddition,iftheownerisaU.S.orforeignfinancialinstitutiondescribedinclause(iii)above(whetherornotalsodescribedinclause(i)or(ii)),thisistofurthercertifythatsuchfinancialinstitutionhasnotacquiredtheSecuritiesforpurposesofresaledirectlyorindirectlytoaUnitedStatespersonortoapersonwithintheUnitedStatesoritspossessions.

Asusedherein,"UnitedStates"meanstheUnitedStatesofAmerica(includingthestatesandtheDistrictofColumbia);andits"possessions"includePuertoRico,theU.S.VirginIslands,Guam,AmericanSamoa,WakeIslandandtheNorthernMarianaIslands.

Weundertaketoadviseyoupromptlybytestedtelexonorpriortothedateonwhichyouintendtosubmityourcertificationrelatingtotheabove-captionedSecurities heldbyyouforour account inaccordancewithyourOperatingProcedures if anyapplicable statement hereinis not correct onsuchdate, andintheabsenceofanysuchnotificationitmaybeassumedthatthiscertificationappliesasofsuchdate.

Thiscertificateexceptsanddoesnotrelateto[U.S.$]ofsuchinterestintheabove-captionedSecuritiesinrespectofwhichwearenotabletocertifyandastowhichweunderstandanexchangeforaninterestinapermanentglobalSecurityoranexchangeforanddeliveryofdefinitiveSecurities(or,ifrelevant,collectionofanyinterest)cannotbemadeuntilwedosocertify.

WeunderstandthatthiscertificatemayberequiredinconnectionwithcertaintaxlegislationintheUnitedStates.Ifadministrativeorlegalproceedingsarecommenced or threatened in connection with which this certificate is or would be relevant, we irrevocably authorize you to produce this certificate or a copythereoftoanyinterestedpartyinsuchproceedings.

B-1

TableofContents

Dated:

B-2

[Tobedatednoearlierthanthe15thdaypriorto(i)theExchangeDateor(ii)therelevantInterestPaymentDateoccurringpriortotheExchangeDate,asapplicable]

[NameofPersonMakingCertification](AuthorizedSignatory)

Name: Title:

TableofContents

EXHIBITB-2

FORMOFCERTIFICATETOBEGIVENBYEUROCLEARANDCLEARSTREAMIN

CONNECTIONWITHTHEEXCHANGEOFAPORTIONOFATEMPORARYGLOBALSECURITYORTOOBTAININTEREST

PAYABLEPRIORTOTHEEXCHANGEDATE

CERTIFICATE

[InserttitleorsufficientdescriptionofSecuritiestobedelivered]

Thisistocertifythatbasedsolelyonwrittencertificationsthatwehavereceivedinwriting,bytestedtelexorbyelectronictransmissionfromeachofthepersonsappearinginourrecordsaspersonsentitledtoaportionoftheprincipalamountsetforthbelow(our"MemberOrganizations")substantiallyintheformattachedhereto,asofthedatehereof,[U.S.$]principalamountoftheabove-captionedSecurities(i)isnotownedbyanyperson(s)thatisacitizenorresidentofthe United States; a corporation or partnership (including any entity treated as a corporation or partnership for U.S. federal income tax purposes) created ororganizedinorunderthelawsoftheUnitedStates,anystatethereofortheDistrictofColumbiaunless,inthecaseofapartnership,U.S.TreasuryRegulationsprovide otherwise; any estate whose income is subject to U.S. federal income tax regardless of its source or; a trust if (A) a U.S. court can exercise primarysupervisionoverthetrust's administrationandoneormoreUnitedStatespersonsareauthorizedtocontrolall substantial decisionsofthetrust or(B)atrust inexistence on August 20, 1996, and treated as a United States person before this date that timely elected to continue to be treated as a United States person("UnitedStatesperson(s)"),(ii)isownedbyUnitedStatesperson(s)thatare(a)foreignbranchesofU.S.financialinstitutions(financialinstitutions,asdefinedinU.S. Treasury Regulation Section 1.165-12(c)(1)(iv) are herein referred to as "financial institutions") purchasing for their own account or for resale, or(b) United States person(s) who acquired the Securities through foreign branches of U.S. financial institutions and who hold the Securities through suchU.S.financialinstitutionsonthedatehereof(andineithercase(a)or(b),eachsuchfinancialinstitutionhasagreed,onitsownbehalforthroughitsagent,thatwemayadvisePlatinumGroupMetalsLtd.orits agentthat suchfinancial institutionwill complywiththerequirementsofSection165(j)(3)(A), (B)or(C)oftheInternal RevenueCodeof 1986, as amended, andtheregulations thereunder), or (iii) is ownedbyU.S. or foreignfinancial institution(s) for purposes of resaleduringtherestrictedperiod(asdefinedinU.S.TreasuryRegulationSection1.163-5(c)(2)(i)(D)(7))and,tothefurthereffect,thatfinancialinstitutionsdescribedinclause(iii) above(whether or not alsodescribedin clause (i) or (ii)) havecertified that theyhavenot acquired theSecurities for purposes of resale directly orindirectlytoaUnitedStatespersonortoapersonwithintheUnitedStatesoritspossessions.

Asusedherein,"UnitedStates"meanstheUnitedStatesofAmerica(includingthestatesandtheDistrictofColumbia);andits"possessions"includePuertoRico,theU.S.VirginIslands,Guam,AmericanSamoa,WakeIslandandtheNorthernMarianaIslands.

Wefurthercertifythat(i)wearenotmakingavailableherewithforexchange(or,ifrelevant,collectionofanyinterest)anyportionofthetemporaryglobalSecurityrepresentingtheabove-captionedSecuritiesexceptedintheabove-referencedcertificatesofMemberOrganizationsand(ii)asofthedatehereofwehavenotreceivedanynotificationfromanyofourMemberOrganizationstotheeffect that thestatementsmadebysuchMemberOrganizationswithrespect toanyportionofthepartsubmittedherewithforexchange(or,ifrelevant,collectionofanyinterest)arenolongertrueandcannotberelieduponasofthedatehereof.

Weunderstandthat this certificationis requiredinconnectionwithcertaintaxlegislationintheUnitedStates. If administrative or legal proceedingsarecommenced or threatened in connection with which this certificate is or would be relevant, we irrevocably authorize you to produce this certificate or a copythereoftoanyinterestedpartyinsuchproceedings.

B-3

TableofContents

B-4

Dated:

[TobedatednoearlierthantheExchangeDateortherelevantInterestPaymentDateoccurringpriortotheExchangeDate,asapplicable]

[]],asOperatoroftheEuroclearSystem][CLEARSTREAM]

By

QuickLinks

Exhibit7.1

PLATINUMGROUPMETALSLTD.asIssuerand[]asTrusteePlatinumGroupMetalsLtd.ReconciliationandtiebetweenTrustIndentureActof1939andIndenture,datedasof[]TABLEOFCONTENTSRECITALSARTICLEONEDEFINITIONSANDOTHERPROVISIONSOFGENERALAPPLICATIONARTICLETWOSECURITYFORMSARTICLETHREETHESECURITIESARTICLEFOURSATISFACTIONANDDISCHARGEARTICLEFIVEREMEDIESARTICLESIXTHETRUSTEEARTICLESEVENHOLDERS'LISTSANDREPORTSBYTRUSTEEANDTHECOMPANYARTICLEEIGHTSUPPLEMENTALINDENTURESARTICLENINECOVENANTSARTICLETENREDEMPTIONOFSECURITIESARTICLEELEVENSINKINGFUNDSARTICLETWELVEREPAYMENTATOPTIONOFHOLDERSARTICLETHIRTEENDEFEASANCEANDCOVENANTDEFEASANCEARTICLEFOURTEENMEETINGSOFHOLDERSOFSECURITIESEXHIBITAFORMOFSECURITY[FormofReverse]ASSIGNMENTFORMEXHIBITB-1CERTIFICATEEXHIBITB-2CERTIFICATE