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

Eastern Platinum Limited

March 31, 2009 08:26 ET

Eastern Platinum Reports Results for the Year Ended December 31, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 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 year ended December 31, 2008.

Highlights for the quarter ended December 31, 2008 ("Q4 2008")

- Eastplats recorded a net loss of $5,742,000 ($0.01 loss per share) compared to a net loss of $10,814,000 ($0.02 loss per share) in the fourth quarter of 2007 ("Q4 2007").

- Production at the Crocodile River Mine ("CRM") increased by 9% to 29,015 PGM ounces, from 26,632 PGM ounces in Q4 2007.

- Negative provisional sales price adjustments of $16,698,000 were recorded in the quarter, causing revenue from CRM to decrease to $356,000 compared to reported revenue of $34,126,000 in Q4 2007.

- The average delivered basket price per PGM ounce was $550, a decrease of 58% compared to $1,305 in Q4 2007, and a decrease of 54% compared to $1,193 in the third quarter of 2008.

- EBITDA was negative $18,168,000 compared to $13,179,000 in Q4 2007.

- Operating cash costs net of by-product credits was $578 per ounce, an improvement of 25% over the $774 per ounce in Q4 2007.

- Average recovery rates for the quarter improved to 76%, compared to 72% in Q4 2007.

- Hard rock ore processed increased by 8% to 298,514 tonnes in Q4 2008 from 275,972 tonnes in Q4 2007.

- The Company acquired an additional direct and indirect 2.47% interest in Barplats Investments Limited, the subsidiary that holds CRM and Kennedy's Vale.

- At December 31, 2008, the Company had a cash position (including cash, cash equivalents and short term investments) of $61,063,000 (December 31, 2007 - $189,856,000).

Highlights for the year ended December 31, 2008

- Eastplats recorded net earnings of $16,364,000 ($0.02 per share) compared to a net loss of $26,836,000 ($0.04 loss per share) for the year ended December 31, 2007.

- Production at the Crocodile River Mine ("CRM") increased by 9% to 117,909 PGM ounces, from 107,967 PGM ounces in 2007.

- Total provisional sales price adjustments were negative $25,162,000 for the year.

- The average delivered basket price per PGM ounce was $1,204, an increase of 4% compared to $1,158 in 2007.

- EBITDA was $36,237,000 compared to $40,343,000 in 2007.

- Operating cash costs net of by-product credits were $622 per ounce, an improvement of 11% over the $699 per ounce in 2007, as the chrome recovery circuit became fully integrated in June 2008.

- Average recovery rates for the year improved to 76%, compared to 72% in 2007, following planned improvements to the concentrator circuit at the Crocodile River Mine.

- Hard rock ore processed increased by 15% to 1,175,519 tonnes in 2008 from 1,025,293 tonnes in 2007.

- The Company achieved an average grade for 2008 of 4.01 grams per tonne, up from 3.96 grams per tonne in 2007.

- During the year, the Company spent $143 million on capital expenditures primarily at Crocodile River and at Spitzkop.

"In the current economic environment, our primary objective is to continue to grow CRM production in a cash flow positive manner. We will continue to focus on lowering our cost profile and preserving our cash balances, as well as taking the appropriate steps necessary to position Eastplats to benefit quickly 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 attached unaudited consolidated financial statements and accompanying Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2008. These financial statements and MD&A, and the comparative financial statements for the year ended December 31, 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 Tuesday, March 31, 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 Tuesday, April 7, 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 - 680,526,421

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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