ANNUAL REPORT 2006

Interpretation of detailed aeromagnetics and existing drill data indicates that there is the potential to more than
double the high grade open pit resource, by drilling along strike and down-dip of the known deposits. There is also
potential to define a substantial underground resource by deeper drilling. Any such resource would be amenable to
mechanized mining methods due to the attitude and thickness of the mineralization.
Platinum Australia can earn a 49% interest in Kalplats by providing its Panton (metallurgical) Process free of charge
to the project and managing and funding a feasibility study, including drilling aimed at increasing the resource. The
study will be aimed at a project able to produce about 200,000 ounces 3E PGM from open pit operations.
A N N U A L R E P O R T 2 0 0 6
A New Order Prospecting Right for the Kalplats Project was issued by the South African authorities in September and
drilling commenced soon after.
The Company’s third potential development project is its 100% owned Panton Project in the Kimberley Region
of Western Australia. Panton has a high grade resource of 10.1 million tones of 6.1 g/t 7E PGM (platinum plus
palladium plus rhodium plus ruthenium plus iridium plus osmium plus gold) or 2 million ounces 7E PGM.
To facilitate development of Panton and save on capital costs, the company has reached an agreement with Sally
Malay Mining Limited (SMY) for that company to carry out and fund a feasibility study for treating Panton ore in the
SMY nickel sulphide recovery plant, located 60 kilometres north of Panton.
Should the study prove positive, SMY can earn a 50% interest in the first 1.5 million tonnes of ore mined from Panton
and treated through the SMY plant. The agreement may be extended to further parcels of ore. The study is well
advanced, and is expected to be completed by the end of 2006. I look forward to the development of Panton, which
would be the first hard rock platinum mine in Australia, and the first in the world to use the Company’s patented
Panton Metallurgical Process.
In May 2006, Platinum Australia Limited successfully raised $21 million at 95 cents per share in a placement to
fund work primarily on the three advanced development projects, Smokey Hills, Kalplats and Panton. Accordingly,
at report date, your company is well positioned financially and technically to move forward and take its place in the
select ranks of PGM producers.
I would like to thank our Managing Director, John Lewins and his capable staff for their outstanding efforts this year.
I also thank our loyal shareholders for their support and encouragement throughout the year.
PETER D ALLCHURCH
Chairman
chairman's report.
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