core sector communique

Stillwater Mining Company Comments on Stronger PGM Prices

BILLINGS, MT--(Marketwire - May 31, 2011) - STILLWATER MINING COMPANY (NYSE: SWC), commenting on today's significant strengthening in palladium and platinum prices, indicated that the market outlook for increasing demand and constrained production underlies the significant move in metal prices today. The afternoon platinum price on the London Bullion Metal Association fixed at $1828 per troy ounce today, up $42 per ounce, or 2.4%, from Friday's close, while palladium fixed at $777 per troy ounce, up $20 per ounce, or 2.6%, from Friday's afternoon quote. (Markets in the U.S. and the U.K. were closed on Monday.)
This move comes following press articles citing growing demand from the auto industry as the worldwide car build rate rebounds. A lengthy Bloomberg article released this morning presented a bright outlook for palladium over the next few months. Summarizing a few of the article's key points:

• "Palladium's biggest shortage in three decades means this year's worst-performing precious metal may rebound as growth spurs record car sales... "
• "The 1.6 million-ounce deficit seen by Standard Bank Plc [for 2011] explains why prices for the metal used in catalytic converters will rise 24 percent by Dec. 31, based on the median estimate in a Bloomberg survey of 24 analysts and traders. Autocatalysts are fitted to 95 percent of new cars and global sales will rise 5.1 percent to 76 million this year," according to Oxford, England-based J.D. Power Automotive Forecasting.
• "While commodities plunged the most since 2008 in the first week of May, prices are rebounding, with demand for cars signaling that the global economy is still expanding."
• "'The long-term story is excellent,' said Robin Bhar, a London-based analyst at Credit Agricole SA and the most accurate of 20 palladium forecasters surveyed by the London Bullion Market Association in 2009. 'With any commodity that gets a very restricted supply base, you're always going to get worries. We will see stronger growth.'"
• OAO GMK Norilsk Nickel, the biggest palladium producer, will report its highest profit this year, according to analysts' estimates compiled by Bloomberg. Bayerische Motoren Werke AG [BMW] sold a record number of cars in the first quarter while Nissan Motor Co. Chief Executive Officer Carlos Ghosn said May 12 he expects to sell the most vehicles ever in 2011.

Stillwater Mining Company is the only U.S. producer of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa and the Russian Federation. The Company's shares are traded on the New York Stock Exchange under the symbol SWC.