Eastern Platinum Limited

Eastern Platinum Limited

May 13, 2009 08:43 ET

Eastern Platinum Reports Results for the Three Months Ended March 31, 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 13, 2009) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") (TSX:ELR)(AIM:ELR)(JSE:EPS) is pleased to report financial results for the three months ended March 31, 2009.

Highlights for the quarter ended March 31, 2009 ("Q1 2009")

- Eastplats recorded a net profit attributable to equity shareholders of the Company of $3,164,000 ($0.00 per share) compared to $19,476,000 ($0.03 per share) in the first quarter of 2008 ("Q1 2008").

- Production at the Crocodile River Mine ("CRM") increased by 18% to 32,969 PGM ounces, from 27,825 PGM ounces in Q1 2008.

- The average delivered basket price per PGM ounce was $590, a decrease of 64% compared to $1,621 in Q1 2008, but an increase of 7% compared to $550 in the fourth quarter of 2008.

- EBITDA was $7,018,000 compared to $36,045,000 in Q1 2008 and negative $18,180,000 in the fourth quarter of 2008.

- Operating cash costs were $536 per ounce, an improvement of 23% over the $698 per ounce in Q1 2008, and an improvement of 15% over the $628 per ounce in the fourth quarter of 2008.

- Operating cash costs net of by-product credits was $388 per ounce.

- Average recovery rates for the quarter improved to 80%, compared to 78% in Q1 2008.

- Run-of-mine ore processed increased by 24% to 318,394 tonnes in Q1 2009 from 257,748 tonnes in Q1 2008.

- At March 31, 2009, the Company had a cash position (including cash, cash equivalents and short term investments) of $21,966,000.

"In the current economic environment, our primary objective is to continue to grow CRM production in a cash flow positive manner. We are extremely pleased that our production is at a record high for the quarter and that the cost cutting measures which were implemented in late 2008 have already resulted in the lowest cash cost per ounce achieved since we acquired CRM. We will continue to focus on lowering our cost profile and on preserving our cash balances, as well as taking the appropriate steps to position Eastplats to move our other development projects forward when PGM prices improve," 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 unaudited condensed consolidated financial statements and accompanying Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2009. These financial statements and MD&A, and the comparative financial statements for the three months ended March 31, 2008 are all available on SEDAR at www.sedar.com and on the Company's website www.eastplats.com.

Teleconference call details

Eastplats will host a telephone conference call on Wednesday, May 13, 2009 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 20, 2009 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 - 680,529,105

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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