Clinton Group Rejects Stillwater Settlement Proposal

  Clinton Group Rejects Stillwater Settlement Proposal

Business Wire

BILLINGS, Mont. -- May 1, 2013

Stillwater Mining Company (NYSE:SWC) (TSX:SWC.U) (“Stillwater” or the
“Company”) today announced that it has communicated an offer to the Clinton
Group, Inc. (“Clinton Group”), a 1.3% shareholder, to settle the proxy contest
related to the Company’s 2013 Annual Shareholders Meeting set for May 2, 2013.

In its most recent settlement offer, which followed extensive discussions
between Stillwater and Clinton Group, Stillwater has proposed reasonable Board
representation that would also remove the risk to shareholders of an abrupt
change of management. Specifically, Stillwater has proposed reconstituting the
Board to include four of Clinton Group’s director nominees and four of
Stillwater’s director nominees. In addition, the roles of Chairman and CEO
would be separated and the new Board would immediately select a Chairman. The
new Board would also immediately engage in a CEO search process and a prompt
and orderly transition would occur once a suitable candidate has been
identified. Clinton Group has declined to accept the latest proposal or engage
in further discussions.

Patrick M. James, Stillwater’s lead independent director, said, “Some of our
largest shareholders have conveyed what they believe to be the proper
governance structure of this Company, and we have made significant efforts to
reshape our Board accordingly through settlement negotiations with Clinton
Group. To avoid further cost and allow the Company to focus on the positive
operational and financial momentum it has achieved as evidenced by our recent
first quarter results, we believe this offer represents a positive outcome for
all shareholders and should be acceptable to Clinton Group.”

All shareholders of record as of March 6, 2013 are entitled to vote at the
2013 Annual Shareholders Meeting on May 2, 2013. Stillwater continues to
encourage all shareholders to vote only their WHITE proxy card. For more
information about Stillwater’s 2013 Annual Shareholders Meeting, please visit
www.supportstillwater.com.

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 Company can be found
at its website: www.stillwatermining.com.

Some statements contained in this news release are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended, and,
therefore, involve uncertainties or risks that could cause actual results to
differ materially. These statements may contain words such as "believes,"
"anticipates," "plans," "expects," "intends," "projects", "estimates,"
"forecast," "guidance," or similar expressions. These statements are not
guarantees of the Company's future performance and are subject to risks,
uncertainties and other important factors that could cause our actual
performance or achievements to differ materially from those expressed or
implied by these forward-looking statements. Such statements include, but are
not limited to, comments regarding expansion plans, costs, grade, production
and recovery rates, permitting, financing needs, the terms of future credit
facilities and capital expenditures, increases in processing capacity, cost
reduction measures, safety, timing for engineering studies, and environmental
permitting and compliance, litigation, labor matters and the palladium and
platinum market. Additional information regarding factors, which could cause
results to differ materially from management's expectations, is found in the
section entitled "Risk Factors" in the Company's 2012 Annual Report on Form
10-K and in subsequent filings with the United States Securities & Exchange
Commission. The Company intends that the forward-looking statements contained
herein be subject to the above-mentioned statutory safe harbors. Investors are
cautioned not to rely on forward-looking statements. The Company disclaims any
obligation to update forward-looking statements.

Contact:

Investors:
Mike Beckstead, 406-373-8971
or
Innisfree M&A Incorporated
Arthur Crozier / Jennifer Shotwell / Scott Winter
212-750-5833
or
Media:
Sard Verbinnen & Co
Dan Gagnier / Michael Henson
212-687-8080
 
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