September 6, 2012

St. Paul, Minnesota, September 6, 2012 – PolyMet Mining Corp. (TSX: POM; NYSE MKT: PLM) (“PolyMet” or the “Company”) today reported that it has filed its financial results for the three months ended July 31, 2012. PolyMet controls 100% of the development-stage NorthMet copper-nickel-precious metals ore-body and the nearby Erie Plant, located near Hoyt Lakes in the established mining district of the Mesabi Iron Range in northeastern Minnesota.

The financial statements have been filed at www.polymetmining.com and on SEDAR and EDGAR and have been prepared in accordance with International Financial Reporting Standards (“IFRS”). All amounts are in U.S. funds.

Financial Highlights

Loss for the three months ended July 31, 2012 was $1.982 million compared with $1.187 million in the prior year period. General and administrative expenses were $0.837 million compared with $0.930 million in the prior period, excluding non-cash stock based compensation. Professional fees decreased by $0.138 million, primarily related to the first-time adoption of IFRS in the prior period.
At July 31, 2012 PolyMet had cash and cash equivalents of $5.821 million compared with $17.478 million at January 31, 2012. Under the November 2010 financing, Glencore is committed to purchase 5 million shares at $2.00 per share no later than October 15, 2012. This $10 million equity is in addition to the July 31, 2012 balance sheet numbers.

PolyMet invested $4.072 million into its NorthMet project during the three months ended July 31, 2012, compared with $7.843 million in the prior year period. The prior year period includes the purchase of land funded with proceeds from an Iron Range Resources and Rehabilitation Board loan.

As of July 31, 2012 PolyMet had spent $46.238 million on environmental review and permitting, of which $39.787 million has been spent since the NorthMet project moved from exploration to development stage.

(in ‘000 US dollars, except per share amounts)

Balance Sheet

July 31, 2012

January 31, 2011

Cash and equivalents

$

5,821

$

17,478

Working Capital

4,257

16,375

Total assets

195,887

189,571

Total liabilities

60,239

57,205

Shareholders’ equity

135,648

132,366

Three months ended July 31,

Six months ended July 31,

Income Statement

2012

2011

2012

2011

General and administrative expenses excluding non-cash share-based compensation

$

(837)

$

(930)

$

(1,504)

$

(1,577)

Non-cash share-based compensation

(1,121)

(32)

(1,737)

(568)

Other income (loss)

(24)

(225)

9

(361)

Loss for the period

$

(1,982)

$

(1,187)

$

(3,232)

$

(2,506)

Loss per share

$

(0.01)

$

(0.01)

$

(0.02)

$

(0.02)

Investing Activities

NorthMet Property, net of sales

$

4,072

$

7,843

$

10,260

$

10,761

Weighted average shares outstanding

177,737,896

156,040,791

177,088,293

155,480,584

* * * * *

About PolyMet

PolyMet Mining Corp. (www.polymetmining.com) is a publicly-traded mine development company that controls 100% of the NorthMet copper-nickel-precious metals ore body through a long-term lease and owns 100% of the Erie Plant, a large processing facility located approximately six miles from the ore body in the established mining district of the Mesabi Range in northeastern Minnesota. PolyMet Mining Corp. has completed its Definitive Feasibility Study and is seeking environmental and operating permits to enable it to commence production. The NorthMet project is expected to require approximately one-and-a-quarter million hours of construction labor at the plant site and an additional three-quarters of a million hours of construction labor preparing the mine site, creating approximately 360 long-term jobs, a level of activity that will have a significant multiplier effect in the local economy.

PolyMet Mining Corp.

Per: “Jon Cherry”
_______________________
Jon Cherry, CEO

For further information, please contact:

Corporate
Douglas Newby
Chief Financial Officer
Tel: +1 (651) 389-4105
dnewby@polymetmining.com

Media
LaTisha Gietzen
VP Public, Gov’t & Environmental Affairs
Tel: +1 (218) 471-2150
lgietzen@polymetmining.com

Investors
Jenny Knudson
VP – Investor Relations
Tel: +1 (651) 389-4110
jknudson@polymetmining.com

Alex Macdougall
IR Consultant
Tel: +1 (226) 663-3000
amacdougall@polymetmining.com

This news release contains certain forward-looking statements concerning anticipated developments in PolyMet’s operations in the future. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible,” “projects,” “plans,” and similar expressions, or statements that events, conditions or results “will,” “may,” “could,” or “should” occur or be achieved or their negatives or other comparable words. These forward-looking statements may include statements regarding our beliefs related to exploration results and budgets, reserve estimates, mineral resource estimates, work programs, capital expenditures, actions by government authorities, including changes in government regulation, the market price of natural resources, costs, ability to receive environmental and operating permits, job creation, or other statements that are not a statement of fact. Forward-looking statements address future events and conditions and therefore involve inherent known and unknown risks and uncertainties. Actual results may differ materially from those in the forward-looking statements due to risks facing PolyMet or due to actual facts differing from the assumptions underlying its predictions.

In connection with the forward-looking information contained in this news release, PolyMet has made numerous assumptions, regarding, among other things: the geological, metallurgical, engineering, financial and economic advice that PolyMet has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. While PolyMet considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.

PolyMet’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and PolyMet does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations and opinions should change.

Specific reference is made to PolyMet’s most recent Annual Report on Form 20-F for the fiscal year ended January 31, 2012 and in our other filings with Canadian securities authorities and the U.S. Securities and Exchange Commission, including our Report on Form 6-K providing information with respect to our operations for the three months ended April 30, 2012 for a discussion of some of the risk factors and other considerations underlying forward-looking statements.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.



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