core sector communique

Stillwater Mining Company Report Clarifies Palladium Fundamentals; Details Provided on Company Website

BILLINGS, MT--(Marketwire - September 26, 2012) - STILLWATER MINING COMPANY (NYSE: SWC) (TSX: SWC.U) in an investor statement today reported that demand for palladium is intensifying worldwide resulting from price-driven substitution of palladium for platinum in gasoline and diesel catalytic converter applications, expanding automotive production and ever more stringent governmental emission regulations.

Amplifying on these developments, Stillwater has posted a 15-point review on its website entitled "Palladium Fundamentals" confirming the positive outlook for palladium and dispelling misconceptions prevalent in the market and among some analysts as to the status of catalytic converter technology. Direct link - www.stillwatermining.com/market/fundamentals-2012.

The Company commented further that these primary demand drivers for palladium are buttressed by some compelling, but often misunderstood, palladium fundamentals. Such fundamentals include the fact that today's gasoline emission catalytic converters, building on technological advances first introduced a decade ago, allow for the substitution of palladium for platinum on a one-for-one, ounce-for-ounce basis. Further, a notable recent development is that today most gasoline catalytic converters manufactured are predominantly palladium-based, contain essentially no platinum, and are augmented only with a small dose of rhodium to facilitate the reduction of nitrogen oxides. The Company observed that the technological advance permitting one-for-one substitution of palladium for platinum apparently has strengthened the market for palladium in gasoline catalytic converters.

Further, price-driven substitution of palladium in the platinum based diesel catalytic converter technology reportedly now can accommodate a theoretical limit of up to 50% palladium, with the actual penetration rate in today's diesel applications now approaching 30%.

The Company further noted that if the 775,000 ounces in sales of palladium reportedly supplied from the dwindling Russian government stockpile are excluded from 2011 supply figures, the share of palladium supply from primary mine production, used for catalytic converters increases from approximately 67% to 73% of total consumption. Analysts indicate that Russian government inventory shipments into Switzerland for the first seven months of 2012 have amounted to approximately 132,000 ounces, or less than 2% of market supply, whereas over the last 20 years such inventory shipments have on average constituted approximately 25% of the palladium supplied to the market. With Russian state inventories diminished, palladium supply growth extremely constrained, and demand increasing steadily, the market is expected to be under supplied going forward.

Speaking to the fundamentals, Frank McAllister, Chairman and CEO of Stillwater Mining Company commented, "Our white paper on palladium fundamentals has been prepared in order to dispel misconceptions and clarify the vital role of palladium in catalytic converters, a technology that provides the means by which otherwise noxious auto emissions are rendered harmless and the quality of our environment is improved."

About Stillwater Mining Company

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 and on the Toronto Stock Exchange under the symbol SWC.U. Information on Stillwater Mining can be found at its website: www.stillwatermining.com.