Eastern Platinum Limited

Eastern Platinum Limited

August 14, 2008 08:21 ET

Eastern Platinum Reports Record Earnings for the Quarter Ended June 30, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2008) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") (TSX:ELR)(AIM:ELR)(JSE:EPS) is pleased to report on financial results for the quarter ended June 30, 2008.

Highlights for the quarter ended June 30, 2008 ("Q2 2008")

Eastplats recorded net earnings of $12,705,000 ($0.02 per share) compared to a net loss of $4,693,000 ($0.01 loss per share) in the second quarter of 2007 ("Q2 2007"). The Company's results improved over Q2 2007 primarily due to a significant increase in revenues and PGM production.

- Production at the Crocodile River Mine ("CRM") increased by 21% to 30,311 PGM ounces, from 25,111 PGM ounces in Q2 2007.

- Revenues from CRM increased by 125% to $50,143,000 compared to $22,324,000 in Q2 2007.

- The average sales price per PGM ounce increased by 49% to $1,657 compared to $1,113 in Q2 2007.

- EBITDA increased by 538% to $29,085,000 from $5,033,000 in Q2 2007.

- Operating cash costs decreased by 1% to $696 per ounce, compared to $702 per ounce in Q2 2007.

- Recovery rates improved to 73%, compared to 69% in Q2 2007, following planned improvements to the concentrator circuit at the Crocodile River Mine.

- Grades improved to 4.03 grams per tonne (5PGE+Au) compared to 3.97 grams per tonne (5PGE+Au) in Q2 2007.

- Stoping units for the quarter increased by 25% to a record 44,277 square meters, compared to 35,315 square meters in Q2 2007.

- Total underground development increased by 16% to 5,575 meters during the quarter (4,807 meters in Q2 2007) as the Company continues to make substantial progress in the development of the ore reserve at CRM.

- The average mining rate increased by 25% to 101,711 tonnes per month during Q2 2008 from 81,425 tonnes per month in Q2 2007.

- At June 30, 2008, the Company had a cash position (including cash and cash equivalents and short term investments) of $195,387,000 (December 31, 2007 - $189,856,000).

"We are pleased to report that production, mining rates, and underground development rates have increased compared to the first quarter of this year," said Mr. Rozier. "Our primary objectives are to increase our current rate of production at the Crocodile River Mine while maintaining a steady cost structure, and to develop and bring CRM's Crocette Section and our Spitzkop project into production as quickly as possible. With our current management team and financial resources, we are confident that we can achieve these objectives."

Financial Information

For complete details of financial results, please refer to the attached audited consolidated financial statements and accompanying Management's Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2008. These financial statements and MD&A, and the comparative financial statements for the three and six months ended June 30, 2007 are all available on SEDAR at www.sedar.com and on the Company's website www.eastplats.com.

About the Company

Eastplats is an expanding platinum group metals ("PGM") producer engaged in the mining and development of PGM's with properties located in various provinces in South Africa. All of the Company's properties are situated on the western and eastern limbs of the Bushveld Complex ("BC"), the geological environment that supports over 75% of the world's PGM supply.

The Company's primary operating asset is an 85% direct and indirect interest in Barplats Investments Limited ("Barplats"), whose main assets are the PGM producing Crocodile River Mine located on the western limb of the BC and the non-producing Kennedy's Vale Project located on the eastern limb of the BC. The Company also has a 75.5% direct and indirect interest in Mareesburg Platinum JV ("Mareesburg") and a 93.4% direct and indirect interest in Spitzkop PGM Project ("Spitzkop") both located on the eastern limb of the BC.

The Company's strategy is to maximize shareholder returns from its Crocodile River Mine and from its other mining properties under development. The Company will continue to focus on traditional cost effective mining methods that place a premium on a safe work environment. The Company takes full advantage of the current PGM price environment as it has neither hedged nor sold forward any of its PGM production.

The Company's shares are listed in Toronto on the TSX and on AIM (Alternative Investment Market) of the London Stock Exchange and trade under the symbol ELR. The Company shares are also listed on the Johannesburg Stock Exchange and trade under the symbol EPS.

The Company's Nominated Advisor ("NOMAD") in London is Canaccord Adams Limited and the Company's Sponsor in Johannesburg is PSG Capital (Pty) Limited.

Teleconference call details

Eastern Platinum Limited will host a telephone conference call on Thursday August 14, 2008 at 10:00 am Pacific (1:00 pm Eastern) to discuss these results. The conference call may be accessed by dialing 1-800-319-4610 in Canada and the United States, or 1-604-638-5340 internationally.

The conference call will be archived for later playback until Thursday August 21, 2008 and can be accessed by dialing 1-604-638-9010 or 1-800-319-6413 and using the pass code 4219 followed by the number sign (#).

Total shares issued and outstanding - 680,251,290

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Cautionary Statement on Forward-Looking Information

This press release, which contains certain forward-looking statements, is intended to provide readers with a reasonable basis for assessing the financial performance of the Company. All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to, fluctuations in the currency markets such as Canadian dollar, South African Rand and U.S. dollar, fluctuations in the prices of PGM and other commodities, changes in government legislation, taxation, controls, regulations and political or economic developments in Canada, the United States, South Africa, or Barbados or other countries in which the Company carries or may carry on business in the future, risks associated with mining or development activities, the speculative nature of exploration and development, including the risk of obtaining necessary licenses and permits, and quantities or grades of reserves. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Readers are cautioned that forward-looking statements are not guarantees of future performance. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those acknowledged in such statements. 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.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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