Eastern Platinum Reports Results for the Six Months Ended December 31, 2007 Record Revenues and EBITDA

2008-03-31 02:00:00

Eastern Platinum Reports Results for the Six Months Ended December 31, 2007

Record Revenues and EBITDA

VANCOUVER, BRITISH COLUMBIA–( EMWNews – March 31, 2008) – Eastern Platinum Limited (the “Company”) (TSX:ELR)(AIM:ELR)(JSE:EPS) – Mr. Ian Rozier, President and CEO of Eastern Platinum Limited (“Eastplats”) is pleased to report on financial results for the six months ended December 31, 2007. Effective July 1, 2007, the Company changed its fiscal year-end from June 30 to December 31 to conform with reporting periods of other companies in the mining industry. All monetary amounts are stated in U.S. dollars.

Eastplats recorded a net loss of $12,204,000 ($0.02 loss per share) for the six months ended December 31, 2007 compared to a net income of $4,360,000 ($0.01 earnings per share) for the six months ended December 31, 2006. For the quarter ended December 31, 2007, the Company recorded a net loss of $10,814,000 ($0.02 loss per share) compared to a net income of $6,550,000 ($0.01 earnings per share) in the same period in 2006. Despite increased revenues in the quarter ended December 31, 2007 compared to the quarter ended December 31, 2006, the Company incurred a net loss in the quarter ended December 31, 2007 compared to 2006 as a result of significant foreign exchange loss due to the weakening of the South African rand relative to the Canadian dollar and a stock-based compensation expense compared to the prior period.

Highlights for the quarter ended December 31, 2007

– Revenues from the Crocodile River Mine (“CRM”) of $34,126,000 were generated from the sale of 26,632 PGM ounces, compared to revenues of $25,062,000 from sales of 25,873 PGM ounces in the same quarter in 2006.

– The average sales price per ounce was $1,305 compared to $992 in the same quarter in 2006.

– Operating cash costs were $774 per ounce, compared to $613 per ounce for the same quarter in 2006, primarily as a result of increased on-reef development, and cost increases as a result of a 9% inflation rate in South Africa (accounting for a $58 per ounce increase in cash costs) and an 8% increase in the value of the rand in relation to the U.S. dollar during the period (accounting for a $49 per ounce increase in cash cost).

– EBITDA increased by 58% to $13,179,000, up from $8,324,000 in the same quarter in 2006.

– Total underground development rate increased by 95% to 4,759 meters during the quarter, up from 2,438 meters in the quarter ended December 31, 2006, continuing the substantial progress in the development of the ore reserve at CRM.

– On-reef development increased by 62% to 2,814 meters, up from 1,737 meters in the quarter ended December 31, 2006. This is integral in generating additional mineable ore to support the continued production build up at CRM.

– The average mining rate increased 60% during the quarter ending December 31, 2007 to 111,750 tons per month, up from 69,993 tons per month in the same quarter of 2006, with grades maintaining a consistent average of 4.02 g/t (5PGE+Au).

– Construction of a chrome recovery plant was completed which will reduce the chrome content and resulting chrome penalties in the concentrate being sold.

– CRM maintained a safety record that was significantly better than the industry average in 2007 (measured on the basis of lost time injury rates).

– Development continued on the Mareesburg and Spitzkop/Kennedy’s Vale properties.

– At December 31, 2007, the Company had a cash position (including cash and cash equivalents and short term investments) of $189,856,000 (June 30, 2007 – $204,498,000) which is invested in highly liquid, fully guaranteed, bank sponsored instruments. The Company is not exposed to financial instruments involving the U.S. residential property markets or Canadian asset backed commercial paper.

Highlights for the six months ended December 31, 2007

– Revenues of $65,578,000 were generated from the sale of 56,049 PGM ounces, compared to revenues of $47,549,000 from sales of 48,539 PGM ounces in the six months ended December 31, 2006.

– The average sales price per ounce was $1,203 compared to $994 in the comparative six months in 2006.

– Operating cash costs were $723 per ounce compared to $628 per ounce for the comparative six months in 2006.

– EBITDA increased by 54% to $24,215,000, up from $15,699,000 in the comparative six months in 2006.

– Total underground development increased by 101% to 9,627 meters, up from 4,789 meters for the six months ended December 31, 2006.

– On-reef development increased by 58% to 5,384 meters, up from 3,401 meters in the six months ended December 31, 2006.

– The average monthly mining rate increased 63% to 109,840 tons, up from 67,397 tons for the six months ended December 31, 2006.

– On November 27, 2007, the Company announced mineral reserve and resource estimates for all of its PGM projects in South Africa. Based upon the new mineral resource estimate for Spitzkop/Kennedy’s Vale on a 5PGE + Au basis, the Company’s projects have reserves and resources with over 100 million contained PGM ounces after accounting for geological losses, with over 86 million ounces PGM attributable to the Company. The estimates were prepared following extensive infill drilling programmes and were completed in accordance with NI 43-101, JORC (Australasian Joint Ore Reserve Committee) and SAMREC (South African Code for Reporting of Mineral Resources and Mineral Reserves) technical reporting requirements. Details of these reserve and resource estimates are available on SEDAR at www.sedar.com.

“The last six months were a successful period for the Company as PGM prices reached historical highs and we generated record EBITDA for the quarter and six months,” said Mr. Rozier. “We are making substantial progress with underground development at CRM in order to build up towards a target production rate of 200,000 tonnes per month. We have major plans in 2008 for developing the Crocette Section at CRM as well as our Spitzkop and Mareesburg properties on the eastern limb and plan on bringing them into production as quickly as possible. We are taking advantage of the high PGM prices and are poised to grow our production as planned into an extremely positive long-term price outlook.”

Financial Information

For complete details of financial results, please refer to the attached audited consolidated financial statements and accompanying Management’s Discussion and Analysis (“MD&A”) for the six months ended December 31, 2007. These financial statements and MD&A, and the comparative financial statements for the year ended June 30, 2007 are all available on SEDAR at www.sedar.com and on the Company’s website www.eastplats.com.

About the Company

Eastplats is an expanding platinum group metals (“PGM”) producer engaged in the development and mining of PGM’s with properties located in various provinces in South Africa. All of the Company’s properties are situated on the western and eastern limbs of the Bushveld Complex (“BC”), the geological environment that supports over 75% of the world’s PGM supply.

The Company’s primary operating asset is an 85% direct and indirect interest in Barplats Investments Limited (“Barplats”), whose main assets are the PGM producing Crocodile River Mine located on the western limb of the BC and the non-producing Kennedy’s Vale Project located on the eastern limb of the BC. The Company also has a 75.5% direct and indirect interest in Mareesburg Platinum JV (“Mareesburg”) and a 93.4% direct and indirect interest in Spitzkop PGM Project (“Spitzkop”) both located on the eastern limb of the BC.

The Company’s strategy is to maximize shareholder returns from its Crocodile River Mine and from its other mining properties under development. The Company will continue to focus on traditional cost effective mining methods that place a premium on a safe work environment. The Company takes full advantage of the current PGM price environment as it has neither hedged nor sold forward any of its PGM production.

The Company’s shares are listed in Toronto on the TSX and on AIM (Alternative Investment Market) of the London Stock Exchange and trade under the symbol ELR. The Company shares are also listed on the Johannesburg Stock Exchange and trade under the symbol EPS.

The Company’s Nominated Advisor (“NOMAD”) in London is Canaccord Adams Limited and the Company’s Sponsor in Johannesburg is PSG Capital Limited.

Teleconference call details

Eastern Platinum Limited will host a telephone conference call on Monday, March 31, 2008 at 1:00 pm PST (4:00) EST) to discuss these results. The conference call may be accessed by dialing 1-800-319-4610 in Canada and the United States, or 1-604-638-5340 internationally.

The conference call will be archived for later playback until Monday April 7, 2008 and can be accessed by dialing 604-638-9010 or 1-800-319-6413 and using the pass code 4219 followed by the number sign (#).

Total shares issued and outstanding – 671,306,427 as at March 28, 2008

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 and outlook 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. 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, fluctuations in the currency markets such as Canadian dollar, South African rand and U.S. dollar, fluctuations in the prices of PGM and other commodities, 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 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.

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

For more information, please contact

Eastern Platinum Limited
Ian Rozier
President & C.E.O.
(604) 685-6851
(604) 685-6493 (FAX)
Email: info@eastplats.com
Website: www.eastplats.com

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