SOURCE: Stillwater Mining Company

August 18, 2009 19:30 ET

Stillwater Mining Company - General Motors Discussions Update

COLUMBUS, MT--(Marketwire - August 18, 2009) - STILLWATER MINING COMPANY (NYSE: SWC) confirms having met with General Motors Company (GM) officials on Thursday, August 13, 2009. Discussions in the meeting centered on the Stillwater palladium and rhodium supply agreement terminated at the request of GM in bankruptcy court proceedings held on July 22, 2009. Stillwater Mining Company is the only U.S. producer of platinum, palladium and rhodium, essential for catalytic converters which eliminate harmful auto emissions.

The termination of the Stillwater contract puts good paying American jobs at risk at the same time GM is receiving massive federal government funding of U.S. taxpayer dollars with which GM emerged from bankruptcy.

Reporting on the meeting Stillwater Chairman and CEO Frank McAllister stated, "The brief meeting did not yield any positive results for our Company, its employees and other stakeholders or the communities in which we operate. At issue is the termination of the Stillwater contract while at the same time GM continues to purchase palladium from foreign suppliers in Russia and South Africa, funded with U.S. tax payers' dollars."

McAllister continued, "The supply relationship with GM, which dates back to 1998, was renewed in 2007 in open competitive negotiations beneficial to the two companies. The sole focus of recent modifications has been on contract quantity guarantees in the 2007 contract, a focus which was logical and obviously necessary given the downsizing underway at GM. We were responsive to these requests. Modifications to price guarantees, which GM indicated in our meeting were key for them, had not ever been requested or even discussed prior to the contract being terminated, a point disputed by GM."

In seeking a continuation of the supply relationship Stillwater appealed directly to GM, submitted a legal objection to the bankruptcy court, petitioned the U.S. Government Auto Task Force and sought the assistance of its elected representatives. In the meeting, GM officials made it clear they are not interested in reconsidering the terminated supply contract with Stillwater, although they did not exclude the possibility of a future competitive supply relationship.

McAllister summarized, "Stillwater Mining Company remains able to sell all the metals it produces, recycles and processes in the U.S. to other customers or through well established terminal markets. We will continue to review and adjust our operations to remain a safe, low cost and sustainable mine operator and producer of palladium, platinum, rhodium and other associated metals."

Stillwater Mining Company is the only U.S. producer of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa and Russia. The Company's shares are traded on the New York Stock Exchange under the symbol SWC. Information on Stillwater Mining Company can be found at its web site:

Some statements contained in this report are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, therefore, involve uncertainties or risks that could cause actual results to differ materially. These statements may contain words such as "desires," "believes," "anticipates," "plans," "expects," "intends," "estimates" or similar expressions. These statements are not guarantees of the Company's future performance and are subject to risks, uncertainties and other important factors that could cause its actual performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Additional information regarding factors that could cause results to differ materially from management's expectations is found in the Company's 2008 Annual Report on Form 10-K on file with the United States Securities and Exchange Commission and available on the Company's website.

The Company intends that the forward-looking statements contained herein be subject to the above-mentioned statutory safe harbors. Investors are cautioned not to rely on forward-looking statements. The Company disclaims any obligation to update forward-looking statements.