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Eastern Platinum Limited Reports Financial Results for the Quarter Ended March 31, 2014 and Proposes Share Consolidation

May 16, 2014



ENP Newswire - 16 May 2014

Release date- 15052014 - Eastern Platinum Limited announces its financial results for the quarter ended March 31, 2014.

At March 31, 2014, the Company had a cash position of $87,046,000 (December 31, 2013 - $92,960,000). The Company's cash position includes cash, cash equivalents and short-term investments held primarily in Canadian dollars, which was negatively impacted during the quarter as the Canadian dollar weakened by 3.8% against the U.S. dollar between December 31, 2013 and March 31, 2014.

Eastplats recorded a loss attributable to equity shareholders of the Company of $1,996,000 ($0.00 per share) in the three months ended March 31, 2014 ('Q1 2014') compared to a loss of $10,966,000 ($0.01 loss per share) in the three months ended March 31, 2013 ('Q1 2013').

General and administrative costs decreased 57% from $1,698,000 in Q1 2013 compared to $729,000 in Q1 2014.

In Q1 2014, Eastplats incurred care and maintenance costs of $2,862,000 in aggregate at its Crocodile River Mine, which was placed on care and maintenance on August 1, 2013 and at its Eastern Limb project, which was placed on care and maintenance in the fourth quarter of 2012.

For complete details of financial results, please refer to the condensed consolidated interim financial statements and accompanying Management's Discussion and Analysis ('MD&A') for the three months ended March 31, 2014. These financial statements and MD&A, and the comparative financial statements for the three months ended March 31, 2013 are all available on SEDAR at www.sedar.com and on the Company's website www.eastplats.com.

Share consolidation and subdivision

At the Company's annual general and special meeting scheduled to be held on June 12, 2014, shareholders will be asked to consider and, if thought fit, to adopt a special resolution to:

consolidate (the 'Consolidation') all of the issued and outstanding common shares of the Company (the 'Pre-Consolidation Shares') on the basis of one (1) new common share (a 'Consolidated Share') for each one thousand (1,000) Pre-Consolidation Shares;

purchase for cancellation all of the fractional shares held by any shareholder who holds less than one (1) Consolidated Share, by payment in cash and

to subsequently subdivide or split (the 'Subdivision') all of the Consolidated Shares on the basis of one hundred (100) new common shares (the 'New Common Shares') for each whole Consolidated Share being subdivided.

As a result of the above, any shareholder holding less than 1,000 Pre-Consolidation Shares will be entitled to receive a cash payment for equal to that number of Pre-Consolidated Shares multiplied by an amount equal to the average weighted trading price of the Pre-Consolidated Shares on the TSX and the JSE, whichever is applicable, for the ten trading days preceding the effective date of the Consolidation.

Upon the Consolidation and Subdivision being completed, the Company's transfer agent will, as soon as practicable, allow shareholders to exchange their share certificates representing Pre-Consolidation Shares for a certificate representing the appropriate number of New Common Shares.

It is currently envisaged that the New Common Shares will commence trading on the TSX and the JSE on or about June 27, 2014.

For complete details of the share consolidation and subdivision, please refer to the Company's management proxy circular dated May 2, 2014 available on SEDAR at www.sedar.com and on the Company's website www.eastplats.com.

Contact:

Ian Rozier

Tel: +1-604-685-6851

Fax: +1-604-685-6493

Email: info@eastplats.com

www.eastplats.com

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.


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Source: ENP Newswire


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