EMPLOYMENT AGREEMENT

THIS AGREEMENT made as of the 1^st day of April, 2005

BETWEEN:

PLATINUM GROUP METALS LTD., a corporation subsisting under the laws of British Columbia, with an office at Suite 328 550 Burrard Street, Vancouver, British Columbia, V6C 2B5

(PGM or the Corporation)

OF THE FIRST PART

- and -

FRANK R. HALLAM, businessman, of XXXX XXXX XXXXXX, XXXXXXX, XXXXXXX XXXXXXXX, XXX XXX

(Hallam)

OF THE SECOND PART

WHEREAS PGM wishes to employ Hallam and Hallam wishes to be employed by PGM in connection with the continuing operation of the business carried on by PGM (the Business) from Vancouver, British Columbia.

AND WHEREAS PGM and Hallam wish to set out the terms of Hallams employment.

NOW THEREFORE IN CONSIDERATION OF the payment of the sum of $1.00, the covenants and agreements continued in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

AGREEMENT TO EMPLOY

1.

PGM agrees to continue to employ Hallam in connection with the Business on the terms and conditions set out herein (the Employment), and Hallam agrees to accept employment on such terms.

TERM

2.

The term of this Agreement and the Employment shall be for an indefinite period, provided that:

(a)

PGM may terminate this Agreement and the Employment at any time as set out in paragraphs 9 and 10 hereof;

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(b)

Hallam may terminate this Agreement and the Employment at any time as set out in paragraph 11 hereof;

(c)

This Agreement and the Employment are automatically terminated when Hallam dies or, at PGMs option, at any time after he reaches the age of 65;

(d)

Hallam may terminate this Agreement and the Employment if there is a change in control as set out in paragraph 12 hereof; and

(e)

PGM may, at its option, give notice that this Agreement and the Employment are terminated effective immediately by reason of Hallam being unable to perform substantially all his duties for a continuous period in excess of 6 months or for periods collectively exceeding 6 months in any 12-month period.  Such termination may be without advance notice or compensation to Hallam.

DUTIES AND RESPONSIBILITIES

3.

Hallam shall be the Chief Financial Officer of PGM and shall, in such capacity, be in charge and control of and be responsible for the day-to-day financial operations of PGM and shall have the authority, and perform the duties, assigned to him from time to time by the Board of Directors of PGM.  PGM agrees that it shall not relocate Hallam outside of the Greater Vancouver Regional District without the consent of Hallam.

CONFLICT OF INTEREST/DUTY OF LOYALTY

4.

Hallam agrees to devote at least 80% of his working time during the Employment to the Business and shall not engage or have an interest in any other enterprise, occupation or profession, directly or indirectly, or become a principal, agent, director, officer or employee of another company, firm or person, as applicable, which will interfere with Hallams duties and responsibilities hereunder without the written approval, not to be unreasonably withheld, of the Board of Directors of PGM.  Hallam agrees not to be directly or indirectly engaged in any business, whether as a principal, agent, director, officer, employee or otherwise, which competes with PGM or which employment, business or activity would constitute a conflict of interest on Hallams part with PGMs interests.  The Board of Directors is aware of and agrees that Hallam may act as a director, officer and consultant for MAG Silver Corp., a silver mining and exploration company, and may act as a director, officer and consultant for Sydney Resource Corporation, a gold mining and exploration company and that Hallam is the CFO for Callinan Mines Limited.

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