Elgin Resources Inc.

JONPOL EXPLORATIONS LIMITED

April 26, 2005 09:01 ET

Elgin and Jonpol Announce Amalgamation


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ELGIN RESOURCES INC.

TSX SYMBOL: ELR

AND JONPOL EXPLORATIONS LIMITED

TSX SYMBOL: JON

APRIL 26, 2005 - 09:01 ET

Elgin and Jonpol Announce Amalgamation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 26, 2005) - Further to
their news release of April 22, 2005, Elgin Resources Inc. ("Elgin")
(TSX:ELR) and Jonpol Explorations Limited ("Jonpol") (TSX:JON) are
pleased to announce that Jonpol has closed the acquisition of all of the
issued and outstanding shares of Eastern Platinum Holdings Ltd. (the
"Eastern Platinum Acquisition") immediately following which Jonpol and
Elgin completed their amalgamation to form Eastern Platinum Limited
("Eastplats").

As a result of the Eastern Platinum Acquisition, Jonpol indirectly
acquired a 74% interest in Spitzkop Platinum (Pty) Ltd. ("Spitzplats"),
which has entered into an agreement with Impala Platinum Holdings Ltd.
("Impala") of South Africa whereby Spitzplats has the right to acquire
100% of the mineral rights to the Spitzkop Platinum Group Metal ("PGM")
deposit located on the Eastern limb of the Bushveld Igneous Complex in
Mpumalanga Province, South Africa (the "Spitzkop Project"). Elgin had
previously entered into a 50:50 joint venture with Spitzplats with
regard to the Spitzkop Project, giving Eastplats an effective 87%
interest in the Spitzkop Project, as well as, its interest in the
Mareesburg PGM project, also in Mpumalanga Province, previously acquired
by Elgin. Completion of the acquisition of the Spitzkop Project by
Spitzplats is pending the South African Department of Minerals and
Energy confirming the transfer of mineral rights of the Spitzkop Project
to Spitzplats.

As consideration for the Eastern Platinum Acquisition Jonpol issued a
total of 75,000,000 common shares of Jonpol to the three shareholders of
Eastern Platinum Holdings Ltd., which shares are to be held in escrow
pending completion of the acquisition of the Spitzkop Project by
Spitzplats, anticipated to occur within the next month. As further
consideration for the Eastern Platinum Acquisition Jonpol paid into
trust the balance of the purchase price payable by Spitzkop to Impala in
respect of the Spitzkop Project, being 95,000,000 Rand plus 14% VAT on
the total purchase price of 111,000,000 Rand. Elgin had previously paid
16,000,000 Rand to Impala as a deposit.

As a result of the Amalgamation the shares of each of Elgin and Jonpol
were exchanged for shares of Eastern on the basis of one common share of
Eastplats for every issued and outstanding common share of Elgin, and
one common share of Eastplats for every four issued and outstanding
common shares of Jonpol. The property and assets of each of Elgin and
Jonpol have become the property and assets of Eastplats, Eastplats being
liable for the liabilities and obligations of Elgin and Jonpol.

Following the Amalgamation Eastplats has approximately 103,400,000
common shares issued and outstanding and approximately a further
34,000,000 shares issuable upon exercise of outstanding options and
warrants. Eastplats also has approximately $25,000,000 in its treasury,
exclusive of the monies paid out in respect of the Eastern Platinum
Acquisition.

It is anticipated that the shares of Eastplats will commence trading on
the Toronto Stock Exchange under the symbol ELR on Thursday, April 28,
2005 in place of the shares of Elgin and Jonpol.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Vanguard Shareholder Solutions Inc.
    (604) 608-0824 or Toll Free: 1-866-801-0779
    or
    Harbour Financial Inc.
    Brian Barbour
    (403) 813-5832
    or
    Harbour Financial Inc.
    Tom Hart
    (403) 701-4278
    or
    Elgin Resources Inc.
    Mr. Ian Rozier, M.Sc., P. Eng.
    President
    (604) 685-6851
    or
    Jonpol Explorations Limited
    Mr. Gordon Keep
    President
    (604) 609-6110