Eastern Platinum Limited
TSX : ELR
AIM : ELR
JSE : EPS

Eastern Platinum Limited

May 24, 2011 08:00 ET

Eastern Platinum Limited: Operations Resume at Crocodile River Mine-Two Year Wage Agreement Reached With NUM

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 24, 2011) - Eastern Platinum Limited ("Eastplats" or the "Company") (TSX:ELR)(AIM:ELR)(JSE:EPS) is pleased to report that as of Friday 20th May, full mining operations have resumed at the Crocodile River Mine ("CRM"), and a two year wage agreement has been reached with the National Union of Mineworkers ("NUM").

Operations at CRM are normalizing following the previously reported illegal 'sit-in' by 155 employees, and an illegal strike by a further 480 employees that resulted in disrupted production at the Zandfontein and Maroelabult sections at CRM, as well as damage to underground infrastructure.

Management at CRM have continued to constructively engage with NUM and confirmed that all employees at the mine, except the 155 who are subject to disciplinary action, have returned to work as of Friday 20th May. Following extensive negotiations with NUM, a two-year wage agreement has been reached with NUM which provides for an effective cost to company increase of approximately 10% year-on-year commencing March 1, 2011. The Company is very pleased to have reached an agreement on wages, benefits and other production related issues and recognizes the efforts of both CRM management and NUM leadership on the outcome achieved.

It is estimated that second quarter production will be negatively impacted by approximately 7,000 PGM ounces as a result of this industrial action. CRM management and NUM have agreed to work together to make every effort to make up this shortfall over the balance of 2011.

"Our primary focus has been to resolve this situation safely for everyone and we would like to thank all those involved in achieving this. It is now critical that all parties continue to work together to maintain a safe and beneficial working environment to increase productivity at CRM for the benefit of employees, shareholders, the local community and all other stakeholders," stated Ian Rozier, President and CEO of Eastplats.

Total shares issued and outstanding – 908,187,807

Cautionary Statement on Forward-Looking Information

Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats and therefore, readers are cautioned that forward-looking statements are not a guarantee of future performance. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, changes in government legislation, controls, regulations and political developments. Specific reference is made to the Company's most recent Annual Information Form on file with Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

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