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EASTERN PLATINUM LIMITED - News release: Eastplats suspends funding for the Crocodile River Mine development plan

Release Date: 22/04/2013 07:50
Code(s): EPS     PDF:  
Wrap Text
News release: Eastplats suspends funding for the Crocodile River Mine development plan

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

April 19, 2013
Trading Symbol: ELR (TSX & AIM) EPS (JSE)

NEWS RELEASE

EASTPLATS SUSPENDS FUNDING FOR THE CROCODILE RIVER MINE
DEVELOPMENT PLAN

Eastern Platinum Limited (“Eastplats” or the “Company”) reports that due to the continuing
negative outlook in the global economic environment, the sustained weakness in PGM pricing
and the current operating environment in South Africa, it has decided to suspend funding for the
Crocodile River Mine (“CRM”) “Development Plan” previously announced on June 12, 2012.
The Company will continue to reassess the viability of production at CRM and reinitiate funding
for production once conditions support such a decision.

This decision to suspend funding for CRM was influenced by both macro and micro-economic
issues. The 2008 financial meltdown and its impact on European car sales resulted in a reduction
in platinum demand and this shows no signs of a near term recovery; year-on-year European car
sales have declined every single month since October 2011. At CRM, the costs per tonne milled
have risen by 82% since the beginning of 2007 and the PGM basket price has fallen by 17% in
Rand terms over the same period. Ongoing labour unrest continues to negatively impact
productivity throughout the South African mining sector. When taken together, the impact of a
stagnant commodity market, the rising costs of mining and decreasing productivity have resulted
in it becoming increasingly difficult to justify the continued level of funding required for the
CRM development plan.

“Given the stagnation of the European car market together with a continuing resistance to any
significant large scale production cuts from the larger producers, we expect that the industry
will have to contend with much lower metal prices than previously projected in the short and
medium term. Ongoing cost pressure and decreasing productivity in South Africa continue to
significantly reduce free cash flow. After a considerable amount of review and evaluation
Eastplats sees no merit in depleting the financial resources of the Company in this economic and
operating environment.” stated Ian Rozier, President and CEO.

Total shares issued and outstanding – 928,187,807

For further information, please contact:
EASTERN PLATINUM LIMITED
Ian Rozier, President & C.E.O.
+1-604-685-6851 (tel)
+1-604-685-6493 (fax)
info@eastplats.com
www.eastplats.com


NOMAD:
Andrew Chubb, Ross Allister
Canaccord Genuity Limited, London
Tel: +44 (0) 207 7523 8000

JSE SPONSOR:
Johan Fourie
PSG Capital (Pty) Limited
Email: johanf@psgcapital.com
Tel: +27 21 887 9602

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information
contained herein.


Cautionary Statement on Forward-Looking Information
This press release, which contains certain forward-looking statements, is 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. These forward-looking
statements pertain to assumptions regarding the price of PGMs, fluctuations in currency markets (specifically the Rand and the
U.S. dollar), the future funding of the Company’s projects, the future development of the Company’s projects, the Company’s
plans for its properties, the anticipated timing for the awarding of tenders, and the accounting policies issued but not yet effective
for the Company. 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, the risk of fluctuations in the assumed exchange rates of
currencies that directly impact the Company, such as Canadian dollar, South African Rand and U.S. dollar, the risk of
fluctuations in the assumed prices of PGM and other commodities, the risk of 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 assumed 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.

Date: 22/04/2013 07:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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