Eastern Platinum Limited

Eastern Platinum Limited

June 26, 2008 08:46 ET

Eastplats Planning to Produce Over 530,000 Oz of PGM Per Year Within Four Years: Additional New Order Mining Rights Granted at CRM

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2008) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") (TSX:ELR)(AIM:ELR)(JSE:EPS), is pleased to provide the updated production growth profile and associated power requirements to produce over 530,000 ounces per year of PGM production by the end of 2012.

"With the issues currently faced in the mining sector in South Africa, we are extremely pleased to see that our production growth profile remains on track to produce over 500,000 annual ounces within the next four years. We are acquiring heavy fuel oil generating capacity that will enable us to meet the initial power requirements independently. Based upon our recent experience at the Crocodile River Mine we are confident that the required mining permits for Spitskop and Mareesburg will be received from the South African authorities to meet this schedule," stated Ian Rozier, President & CEO.

Production Growth

The production increase from the 128,500 oz anticipated in 2008 to 530,000 oz in 2012 will be achieved through the commissioning of four new decline mines (Crocette, Mareesburg, Spitskop UG2 and Spitskop Merensky) and a new concentrator plant at Spitskop/Kennedy's Vale. The development of Kennedy's Vale and the Kareespruit deposit at the Crocodile River Mine ("CRM") will take place subsequent to 2012.

Crocodile River Mine

Anticipated 2008 production of 128,500 oz will grow to 220,000 oz in 2010 as a new decline at Crocette and the existing Zandfontein operation reach full production.


Spitskop, where initial development of the 2 access declines is already underway, will commence test mining in the first half of 2009. Ore produced during this phase will be stockpiled, and then, subject to regulatory approval, the concentrator will be commissioned, with production at 60ktpm planned for Q3 2010, 90ktpm for Q4 2010 (2010 production 41,000 oz), with ramp up to 120ktpm in Q1 2011, 150ktpm for Q2, 180ktpm for Q3 and 180ktpm for Q4 (2011 production 140,000 oz). For 2012 the 180ktpm concentrator capacity is maintained (205,000 oz pa).


Mareesburg ore production commences at 20ktpm in Q4 2009 (2009 production at 5,000 oz), growing to 105,000 ounces in 2012.

To view the graph accompanying this press release please click on the following link: http://media3.marketwire.com/docs/elr0626a.pdf.


Subsequent to the power disruptions in South Africa in February 2008, Eastplats has completed additional engineering studies to determine the power requirements necessary to reach the planned production rates.

It is anticipated that the future power required to support this expansion program will be as presented in the graph below. The graph shows the current power commitment to us from Eskom, the planned Eastplats self generated supply, as well as future power requirements up to 2012.

To view the graph accompanying this press release please click on the following link: http://media3.marketwire.com/docs/elr0626b.pdf.

New Order Mining Rights

Eastplats is also pleased to report that the remaining New Order Mining Rights for the Zandfontein and Maroelabult Sections of CRM have been granted by the South African Department of Minerals and Energy ("DME"). This will allow for uninterrupted development and mining of these two sections.

As previously announced, Eastplats will release the Q2, 2008 mine production in mid-July 2008 and the associated second quarter financials in mid-August 2008.

Total shares issued and outstanding: 680,141,595

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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