Eastern Platinum Limited

Eastern Platinum Limited

May 15, 2008 08:12 ET

Eastern Platinum Reports Record Earnings For the Three Months Ending March 31, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 15, 2008) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited (TSX:ELR)(AIM:ELR)(JSE:EPS) ("Eastplats") is pleased to report on financial results for the three months ended March 31, 2008.

Highlights for the quarter ended March 31, 2008 ("Q1 2008")

Eastplats posted record net earnings of $19,962,000 ($0.03 per share) compared to a net loss of $9,939,000 ($0.02 loss per share) in the first quarter of 2007 ("Q1 2007"). The Company's results improved over Q1 2007 primarily due to a significant increase in revenues and increased PGM production.

- Revenues from the Crocodile River Mine increased by 80% to $56,408,000, generated from the sale of 27,825 PGM ounces, compared to revenues of $31,332,000 from the sale of 26,807 PGM ounces in Q1 2007.

- EBITDA increased by 217% to $36,658,000 from $11,569,000 in Q1 2007.

- The average sales price per PGM ounce increased by 44% to $1,621 compared to $1,130 in Q1 2007.

- Operating cash costs decreased by 1% to $698 per ounce, compared to $704 per ounce in Q1 2007.

- Recovery rates improved to 78% compared to 73% in Q1 2007, due to improved plant operating efficiencies at the Crocodile River Mine.

- Grades improved to 4.04 grams per ton (5PGE+Au) compared to 3.91 grams per ton (5PGE+Au) in Q1 2007.

- Stoping units for the quarter increased by 45% to a record 38,349 square meters, compared to 26,441 square meters in Q1 2007.

- Total underground development increased by 20% to 4,409 meters during the quarter (3,687 meters in Q1 2007) as the Company continues to make substantial progress in the development of the ore reserve at CRM.

- The average mining rate increased to 93,012 tons per month during Q1 2008 from 70,610 tons per month in Q1 2007.

- The chrome recovery plant was commissioned in March 2008. The chrome plant will effectively reduce chrome content, and as a result the chrome penalties, in the concentrate being sold under the Company's primary off-take agreement.

- At March 31, 2008, the Company had a cash position (including cash and cash equivalents and short term investments) of $169,943,000 (December 31, 2007 - $189,856,000).

"Despite power interruptions and ongoing reductions in power supply during the first quarter, our PGM production increased compared to the quarter ended December 31, 2007 and we achieved record earnings for the quarter," said Mr. Rozier. "Mining rates, underground development rates and recovery rates are all up, and with sustained high PGM prices, we look forward to continued profitability at the Crocodile River Mine. We have also commenced underground development at the Crocette Section at CRM as well as at our Spitzkop property on the eastern limb and plan on bringing them into production as quickly as possible in order to take advantage of the high PGM prices."

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 months ended March 31, 2008. These financial statements and MD&A, and the comparative financial statements for the three months ended March 31, 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 Limited.

Teleconference call details

Eastern Platinum Limited will host a telephone conference call on Thursday May 15, 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 Wednesday May 21, 2008 and can be accessed by dialing 604-638-9010 or 1-800-319-6413 and using the pass code 4219 followed by the number sign (#).

Total shares issued and outstanding - 680,090,604

Cautionary Statement on Forward-Looking Information

This press release, which contains certain forward-looking statements, are 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.

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

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