Stillwater Amends Auto Catalyst Sourcing Agreement

COLUMBUS, Mont., June 9 -- STILLWATER MINING COMPANY announced today that it has amended its long-term auto catalyst sourcing agreement with Power Mount Incorporated of Somerset, Kentucky. Stillwater believes that this new agreement will further enhance its competitiveness while endeavoring to aggressively further grow its share of the catalyst reclaim market.

Under the amended agreement Stillwater will purchase increased quantities of auto catalysts from Power Mount for recycling. These materials will be processed along with mine production in Stillwater's state of the art smelting and refining complex located conveniently next to Interstate Highway I-90 in Columbus, Montana.

The spent catalytic converter material is sourced primarily from automobile repair shops and automobile yards that dissemble old cars for the recycling of their parts. Stillwater's operation recovers platinum, palladium and rhodium contained in these and other similarly spent materials that the Company treats. The metals once recovered are sold for reuse.

Commenting on the signing of the agreement Frank McAllister, Stillwater's Chairman and Chief Executive Officer said, "We have been delighted with the success of our business relationship with Power Mount and wish to extend and grow it further. The recycling of auto catalysts is totally consistent with Stillwater's business. Our smelting and refining complex is among the most environmentally clean operations of its type in the world. The metals we mine are used by the automotive industry to protect the environment by cleaning auto emissions. Recycling the metals from auto catalysts after they have been used is also environmentally responsible." McAllister continued, "This extended contract enables our smelter and refinery complex to further utilize its capacity and to increase the amount of metals recovered."

Stillwater Mining Company is the only U.S. producer of palladium and platinum and the only significant primary producer of platinum group metals outside of South Africa. The Company is traded on the New York Stock Exchange under the symbol SWC. Information on Stillwater Mining can be found at its web site: www.stillwatermining.com.

THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially from projected results. Factors that could cause actual results to differ materially include price volatility of palladium and platinum, the operational and financial difficulties of commencing and sustaining commercial operations at a new mine, risk of cost overruns, problems with productivity, economic and political events affecting supply and demand for palladium and platinum, ability to access bank or other financing, economic developments affecting the capital markets, dependence on a few customers, labor difficulties and availability and cost of electricity. These and other factors are discussed in more detail in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Descriptions of events relating to the palladium and platinum markets are not intended to be complete, and readers are advised to obtain their own information and advice regarding commodities markets. The Company disclaims any obligation to update forward-looking statements.