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EASTERN PLATINUM LIMITED - Eastplats Receives Notice To Terminate Share Purchase Agreement And Request For Release Of Escrow Funds

Release Date: 22/08/2017 08:30
Code(s): EPS     PDF:  
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Eastplats Receives Notice To Terminate Share Purchase Agreement And Request For Release Of Escrow Funds

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
(“Eastplats” or the “Company” or “the Group”)

August 22, 2017
Trading Symbol: ELR (TSX); EPS (JSE)

                                   NEWS RELEASE

EASTPLATS RECEIVES NOTICE TO TERMINATE SHARE PURCHASE AGREEMENT AND
                REQUEST FOR RELEASE OF ESCROW FUNDS

August 22, 2017, Vancouver, British Columbia – Eastern Platinum Limited (“Eastplats” or the
“Company”) reports that it has received a written notice, purporting to terminate on the basis of breach or
default, on behalf of Hebei Zhonghen Tianda Platinum Co. Limited (“HZT”) the June 28, 2016 (the “Share
Purchase Agreement”) in relation to the sale of the Company’s South African subsidiary, Barplats Mines
Limited, which holds the Crocodile River Mine. As previously disclosed, the Company and its subsidiaries
are contesting the litigation previously initiated by HZT seeking to enforce the Share Purchase Agreement
and damages against the Company, have previously notified HZT that in its view the Share Purchase
Agreement, if valid was already at an end, and deny any breach or default. The Company has also been
advised of a further notice purportedly being given by HZT seeking the release to it of the escrow and
break-fee funds being held by an independent escrow agent in connection with the transactions
contemplated under the Share Purchase Agreement. The Company is assessing the implications of these
notices and will respond to them in due course in light of the underlying agreements and the outstanding
litigation.

For further information, please contact:
EASTERN PLATINUM LIMITED
Rowland Wallenius, Chief Financial Officer
rwallenius@eastplats.com (email)
(604) 800-8200 (phone)
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to herein as
“forward-looking statements”) within the meaning of applicable securities legislation. Such forward-looking statements include,
without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are
statements that are not historical facts and are generally, but not always, identified by the words “will”, “plan”, “intends”, “may”,
“will”, “could”, “expects”, “anticipates” and similar expressions. Further disclosure of the risks and uncertainties facing the
Company and other forward-looking statements are discussed in the Company’s Annual Information Form and Management’s
Discussion and Analysis which are available under the Company’s profile on www.sedar.com.

In particular, this press release contains forward-looking statements pertaining to: the purported termination of the Share Purchase
Agreement, the release of the $10,000,000 escrow funds deposited by HZT and the $5,000,000 break fee deposited by the Company
under the Share Purchase Agreement and associated escrow agreement and the consequences of the foregoing under the outstanding
litigation between HZT, the Company and its subsidiaries. These forward-looking statements are based on assumptions made by
and information currently available to the Company. Although management considers these assumptions to be reasonable based
on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve
inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors
could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed
in such forward-looking statements. These factors include, but are not limited to, commodity prices, lower than expected grades
and quantities of resources, needs for additional funding, availability of such additional funding and that funding will be on
acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to
operations in foreign countries.

The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable
securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

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

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

JSE Sponsor

PSG Capital

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