Eastern Platinum Limited

Eastern Platinum Limited

November 13, 2008 08:46 ET

Eastern Platinum Reports Results for the Quarter Ended September 30, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 13, 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 September 30, 2008.

Highlights for the quarter ended September 30, 2008 ("Q3 2008")

Eastplats recorded a net loss of $10,561,000 ($0.02 loss per share) compared to a net loss of $1,390,000 ($0.00 loss per share) in the third quarter of 2007 ("Q3 2007"). The Company's net loss increased over Q3 2007 primarily due to a significant decline in the price of PGMs during Q3 2008.

- Production at the Crocodile River Mine ("CRM") increased by 5% to 30,758 PGM ounces, from 29,417 PGM ounces in Q3 2007.

- Negative provisional sales price adjustments (prior months' adjustment and end of quarter mark-to-market) of $29,416,000 were recorded in the quarter, causing revenues from CRM to decrease by 70% to $9,291,000 compared to $31,452,000 in Q3 2007.

- The average realized basket price per PGM ounce was $1,193, an increase of 10% compared to $1,088 in Q3 2007, but a decrease of 28% compared to $1,657 in the second quarter of 2008 ("Q2 2008").

- EBITDA was negative $11,338,000 compared to $11,036,000 in Q3 2007.

- Operating cash costs were $672 per ounce, an increase of 5% compared to $637 per ounce in Q3 2007, but a decrease of 3% compared to $696 per ounce in Q2 2008.

- Operating cash costs net of by-product credits was $521 per ounce, as the chrome recovery circuit became fully integrated at the end of the last quarter.

- Recovery rates improved to 78%, compared to 72% in Q3 2007, following planned improvements to the concentrator circuit at the CRM.

- Average grade was 3.99 grams per tonne (5PGE+Au) compared to 4.10 grams per tonne (5PGE+Au) in Q3 2007.

- Stoping units for the quarter increased by 12% to 39,652 square meters, compared to 35,262 square meters in Q3 2007.

- Total underground development increased by 15% to 5,599 meters during the quarter (4,868 meters in Q3 2007).

- The average mining rate decreased by 1% to 106,487 tonnes per month during Q3 2008 from 107,926 tonnes per month in Q3 2007.

- At September 30, 2008, the Company had a cash position (including cash, cash equivalents and short term investments) of $172,060,000 (December 31, 2007 - $189,856,000).

"The significant decline in PGM prices during the last four months has had a negative impact on the Company's cash flow. Given the challenging markets we are currently facing and the uncertainty of future market conditions, we have addressed capital expenditures in order to preserve our robust cash balances by rescheduling our development projects, Crocette, Spitzkop and Mareesburg and we have made significant progress in reducing our operating costs at CRM. We believe we have taken the appropriate action to make Eastplats well positioned to benefit quickly when the PGM market recovers," said Ian Rozier.

The qualified person having reviewed the operating disclosures presented in this press release is Mr. Brian Montpellier, V.P. Project Development, P. Eng.

Financial Information

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

Teleconference call details

Eastern Platinum Limited will host a telephone conference call on Thursday November 13, 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 November 20, 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 - 680,526,421

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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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