EASTERN PLATINUM LIMITED - Hebei Zhongbo Platinum Co. Limited To Purchase The South African PGM Assets Of Eastern Platinum Limited

Hebei Zhongbo Platinum Co. Limited To Purchase 
The South African PGM Assets Of Eastern Platinum Limited

EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA2768555096
Share Code JSE: EPS ISIN: CA2768555096

Trading Symbol: ELR (TSX); EPS (JSE)


                          NEWS RELEASE

         HEBEI ZHONGBO PLATINUM CO. LIMITED TO PURCHASE
    THE SOUTH AFRICAN PGM ASSETS OF EASTERN PLATINUM LIMITED

November 7, 2014, Vancouver, British Columbia – Eastern Platinum
Limited (“Eastplats” or the “Company”) today announced that it
has reached an agreement with Hebei Zhongbo Platinum Co. Limited
(“Hebei Zhongbo”) whereby Hebei Zhongbo will acquire the
Company’s entire South African platinum group metal (“PGM”)
business and all loan agreements that Eastplats has with its
subsidiary companies, for a total consideration of US$225
million payable in cash on closing (the “Acquisition”). The
consideration received by Eastplats will be net of the amounts
payable to certain minority interests, which amounts remain to
be settled.

Under the Agreement, Hebei Zhongbo will acquire a portfolio of
PGM assets including the Crocodile River Mine, Spitzkop,
Kennedy’s Vale and Mareesburg projects and their associated
mining and prospecting rights (the "Assets") in a manner
compliant with South Africa's mining laws, environmental and
socio-economic requirements.

“The entire resource sector is under considerable pressure and
PGMs have been disproportionately impacted as a result of a
number of factors unique to the sector. The capital required to
advance the Eastplats assets into production is not available in
the public markets at this time and we are very encouraged by
the ability of Hebei Zhongbo to deploy its resources in this
regard. This foreign capital and the creation of much needed
jobs will contribute to the ongoing socio-economic development
in areas surrounding the mine and projects.” said Ian Rozier,
President and CEO of Eastplats. “Closing the transaction will
leave Eastplats extremely well capitalized to take advantage of
the considerable opportunities in this weak market.”

Upon closing, Hebei Zhongbo will assume operating responsibility
for the Crocodile River Mine and ownership of the Eastplats
subsidiaries, direct interests and joint venture      positions.
Eastplats will remain with cash as its sole asset.

Closing of the transaction is subject to execution of a
definitive agreement and certain conditions, including approval
by the shareholders of Eastplats and the necessary regulatory,
South African and People’s Republic of China (“PRC”) approvals.
The transaction is expected to close within 3 to 6 months.

The parties have agreed that certain events, including the
failure of Eastplats and Hebei Zhongbo respectively to secure
TSX or PRC approval within 90 days of signature will trigger the
payment of a break fee of US$11.25 million. A finder’s fee to an
arm’s length third party, in an amount that remains to be
negotiated, is payable in connection with the transaction.


For further information, please contact:

EASTERN PLATINUM LIMITED
Ian Rozier, President and CEO
+1-604-685-6851 (tel)
+1-604-685-6493 (fax)
info@eastplats.com
www.eastplats.com


JSE SPONSOR
David Tosi
PSG Capital (Pty) Limited
Email: davidt@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 Regarding Forward-Looking Information

This press release contains ‘forward-looking information’ within
the meaning of Canadian securities legislation. Forward-looking
information in this press release includes information about the
completion, timing and potential benefits of the proposed
transaction between Eastplats and Hebei Zhongbo. These forward-
looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to
differ materially from those anticipated, including, the
contemplated transaction not being completed as a result of a
number   of   factors   including,   without  limitation, the
shareholders of Eastplats not approving the transaction or
required regulatory approvals not being obtained; and other
risks and uncertainties.      Readers should not place undue
reliance on the forward-looking information contained in this
news release.    Eastplats does not undertake to update any
forward-looking information, except as required by applicable
securities laws.

Date: 10/11/2014 07:05:00 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.