Clinton Group Rejects Stillwater Settlement Proposal

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.

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