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EPS - Eastern Platinum Limited - News release: Us$100 Million debt facility

Release Date: 03/01/2012 16:00
Code(s): EPS
Wrap Text

EPS - Eastern Platinum Limited - News release: Us$100 Million debt facility agreement completed - Replacement of announcement sent at 15h30 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 January 3, 2012 Trading Symbol: ELR (TSX & AIM) EPS (JSE) NEWS RELEASE: US$100 MILLION DEBT FACILITY AGREEMENT COMPLETED Eastern Platinum Limited (the "Company" or "Eastplats") is pleased to report that further to its press release of February 1, 2011 announcing the receipt of letters of commitment for a debt facility, it has now signed a definitive agreement with UniCredit Bank AG, London Branch and Standard Finance (Isle of Man) Limited (a subsidiary of The Standard Bank of South Africa Limited) for a US$100 million financing package to be used to part fund the development costs of its Mareesburg Project and the construction costs of the associated concentrator. Highlights of the key terms of the financing package include: Scheduled tenor of 5.5 years with an 18 month grace period for principal repayments Separate term and revolving loan facilities (US$70 million and US$30 million, respectively) Initial interest rate of US LIBOR + 3.85% rising to US LIBOR + 4.15% for the last 2.5 years of the loan. US one-month LIBOR currently sits at approximately 0.26%. No required commodity, currency or interest rate hedging The term loan and revolving loan can be drawn down upon the satisfaction of agreed conditions precedent which is expected to occur on or prior to March 31, 2012. "This financing, combined with our existing cash resources, provide us with substantial flexibility over the upcoming year as we complete the development of Mareesburg and the construction of the concentrator within the next twelve months. We thank both UniCredit and Standard Bank for their ongoing support and commitment to Eastplats and are very pleased to be in such a well- capitalized position for this next stage of our corporate growth. We expect Mareesburg to be a low-cost operation that will deliver 100,000 PGM ounces per year at full production," said Ian Rozier, President and CEO of Eastplats. Total shares issued and outstanding: 928,187,807 No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Cautionary Statement on Forward-Looking Information 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 therefore, readers are cautioned that forward-looking statements are not a guarantee of future performance. There can be no assurance that such statements will prove to be accurate and 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, changes in government legislation, controls, regulations and political developments. 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. 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 Email: rcollins@canaccordgenuity.com / bpatel@canaccordgenuity.com Tel: +44 20 7050 6500 JSE SPONSOR: Johan Fourie PSG Capital (Pty) Limited Email: johanf@psgcapital.com Tel: +27 21 887 9602 Date: 03/01/2012 16:00:01 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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