ORGANIZATIONAL BEHAVIOR

Organizational Behavior

Organizational Behavior

Stillwater Mining Company: Organizational Structure and customer Service

Introduction

Stillwater Mining Company, incorporated in 1992, is engaged in the development, extraction, processing, refining and marketing of palladium, platinum and associated metals from a geological formation in south central Montana known as the J-M Reef and from the recycling of spent catalytic converters. The Company conducts mining operations at the Stillwater Mine near Nye, Montana and at the East Boulder Mine near Big Timber, Montana. Both mines are located on the J-M Reef. The Company operates concentrating plants at each mining operation to upgrade mined production to a concentrate form. The Company operates a smelter and base metal refinery at Columbus, Montana at which it further upgrades the mined concentrates into a PGM-rich filter cake. During the year ended December 31, 2008, the Company had proven and probable ore reserves of approximately 38.2 million tons with an average grade of 0.54 ounce of platinum group metals (PGMs) per ton.

During 2008, the Company's total proven palladium and platinum ore reserves were five million tons at an average grade of 0.57 ounce per ton, containing 2.8 million ounces of palladium and platinum. In 2008, the Company's total probable palladium and platinum ore reserves were at 33.2 million tons at an average grade of 0.53 ounce per ton, containing 17.6 million ounces of palladium and platinum.

Stillwater Mine

The Company conducts the underground mining operations at its wholly owned Stillwater Mine, near Nye, Montana. The Stillwater Mine facility accesses, extracts and processes PGM ores from the eastern portion of the J-M Reef using mine openings located in the Stillwater Valley. In addition, the Company owns and maintains ancillary buildings that contain the concentrator, shop and warehouse, changing facilities, headframe, hoist house, paste plant, water treatment, storage facilities and office. All surface structures and tailings management facilities are located within the 2,450 acre Stillwater Mine Operating Permit area. Ore reserves developed at the Stillwater Mine are controlled by mining claims either leased or owned outright by the Company. The mine is located approximately 85 miles southwest of Billings, Montana.

The Stillwater Mine accesses and has developed a 5.9-mile-long underground segment of the J-M Reef, between the elevations of 2,000 and 7,300 feet above sea level. Access to the ore at the Stillwater Mine is accomplished by means of a 1,950-foot vertical shaft and by a system of horizontal adits and drifts driven parallel to the strike of the J-M Reef at vertical intervals of between 150 feet and 300 feet. Seven main adits have been driven from surface portals on the west and east slopes of the Stillwater Valley at various elevations between 5,000 and 5,900 feet above sea level. Several additional principal levels have been developed below the 5,000-foot level down to the 3,200-foot elevation, accessed from a vertical shaft and the associated shaft ramp system. The Company is continuing to develop a decline system below the 3,200-foot elevation to access and develop deeper areas in the central part of the mine below those ...