Eastern Platinum Limited

Eastern Platinum Limited

October 16, 2008 09:08 ET

Eastplats Reports Ongoing Production Growth for the Quarter Ended September 30, 2008

Conference Call Thursday 16 October

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2008) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") (TSX:ELR)(AIM:ELR)(JSE:EPS) is pleased to report on production from the Crocodile River Mine ("CRM") for the quarter ended September 30, 2008.

Ounces produced are up by 1.5% this quarter compared to the quarter ended June 30, 2008 to a quarterly record of 30,755 PGM ounces. Production statistics for the quarter are as follows:

Quarter Quarter Quarter
ended ended ended
Sept 30, June 30, March 31, Increase
Production 2008 2008 2008 (Decrease)
Q3 Q2 Q1 Q3 vs Q2
Ounces produced 30,755 30,314 27,825 441
Run of mine tons 319,462 305,134 279,036 14,328
Total tons processed 317,602 337,471 349,497 (19,869)
Development meters 5,599 5,575 4,409 (363)
On-reef development meters 3,556 3,230 2,343 326
ROM head grade (grams/ton) 3.99 4.03 4.04 (0.04)
ROM recovery (%) 78 73 78 5

Tonnage processed decreased slightly as a result of a planned reduction of the treatment of low grade tailings as the current tailings retreatment area was depleted. Planning is in progress to optimize the further treatment of tailings on the existing dam.

Two significant concentrator upgrades were completed during the second quarter that resulted in a negative impact on recoveries during that quarter. Recoveries have now returned to near previously achieved levels. Also, the second quarter integration of the chrome recovery plant into the floatation circuit was brought to account resulting in an 83% increase in chromite production from 35,903 tonnes in the second quarter to 65,536 tonnes in the third quarter.

At the Crocette section of Crocodile River, underground development has reached the UG2 ore body in both declines.

"We are pleased to report that we have been able to continue our production build-up at Crocodile River while continuing the process plant upgrading and once again have achieved a quarterly record of PGM ounces in Q3 2008. We plan to continue this trend into Q4 with our 2008 production now expected to be approximately 120,000 PGM ounces. We believe Eastplats is well positioned to meet the challenges that face the sector in the short term and we remain very optimistic about the mid and long term prospects for PGM's and for the Company," said Ian Rozier.

Eastplats will host a telephone conference call on Thursday 16 October at 11:00 a.m. Pacific (2:00 p.m. 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 October 23, 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.

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

Eastplats will release its full third quarter results on Wednesday November 12, 2008.

Total shares issued and outstanding: 680,526,421

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Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production and a decline in metal prices. Eastplats is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

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