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EPS - Eastern Platinum Limited - Eastplats increases equity interest in Lion`s

Release Date: 22/12/2011 15:30
Code(s): EPS
Wrap Text

EPS - Eastern Platinum Limited - Eastplats increases equity interest in Lion`s Head Platinum and ownership in the Mareesburg Platinum Project EASTERN PLATINUM LIMITED (Incorporated in Canada) (Canadian Registration number BC0722783) (South African Registration number 2007/006318/10) Share Code TSX: ELR ISIN: CA 2768551038 Share Code AIM: ELR ISIN: CA 2768551038 Share Code JSE: EPS ISIN: CA 2768551038 December 22, 2011 Trading Symbol: ELR (TSX & AIM) EPS (JSE) EASTPLATS INCREASES EQUITY INTEREST IN LION`S HEAD PLATINUM AND OWNERSHIP IN THE MAREESBURG PLATINUM PROJECT Eastern Platinum Limited ("Eastplats" or the "Company") is pleased to report that it has increased its interest in the Mareesburg platinum project ("Mareesburg") as a result of purchasing a further 23% interest in Lion`s Head Platinum (Proprietary) Limited ("LHP"), the entity that owns a 100% interest in Mareesburg. The consideration to be paid by Eastplats to acquire this additional interest in LHP is US$10 million and 20 million common shares of Eastplats, making the total cost to the Company approximately US$20.5 million. Eastplats previously held a 25.5% interest in Mareesburg through its 51% shareholding in LHP, and also successfully earned a 50% direct interest in the project by way of the original Mareesburg Joint Venture agreement, for a total direct and indirect interest of 75.5%. With the acquisition of a further 23% of LHP, Eastplats now holds a 37% interest in Mareesburg through its 74% shareholding in LHP, and the 50% interest by way of the joint venture, for a total direct and indirect interest of 87% in Mareesburg. The transaction is subject to acceptance by the Toronto Stock Exchange. "With the ongoing development of the low cost Mareesburg/Spitskop facilities, we are very pleased that we have been able to increase our equity position in Mareesburg. Mareesburg is progressing well and is an important step in our growth strategy of reaching target production by the end of 2013 of 225,000 PGM ounces for the group", stated Ian Rozier. Total shares issued and outstanding: 928,187,807 (including the 20,000,000 to be issued pursuant to the above transaction) For further information contact: Investor Relations Website: www.eastplats.com Email: info@eastplats.com Tel: +1-(604)-685-6851, Fax: +1-(604)-685-6493 NOMAD: Rob Collins/Bhavesh Patel Canaccord Genuity Limited, London Tel: +44 20 7050 6500 JSE SPONSOR: Johan Fourie PSG Capital (Pty) Limited Email: johanf@psgcapital.com Tel: +27 21 887 9602 Date: 22/12/2011 15:30:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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