Eastern Platinum Reports Results for the Quarter and Year Ended December 31, 2011

VANCOUVER, BRITISH COLUMBIA -- (Marketwire - March 6, 2012) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited (TSX:ELR) (AIM:ELR) (JSE:EPS) (“Eastplats“) reports financial results for the quarter and year ended December 31, 2011.


Summary of results for the quarter ended December 31, 2011 (“Q4 2011“):

- Eastplats recorded a loss attributable to equity shareholders of the Company of $64,325,000 ($0.07 loss per share) in the quarter ended December 31, 2011 (“Q4 2011“) compared to earnings of $5,041,000 ($0.01 per share) in the quarter ended December 31, 2010 (“Q4 2010“).

- During the quarter ended December 31, 2011, the Company determined that the carrying value of CRM exceeded the expected net present value of its future cash flows. This resulted in an impairment charge of $46,327,000, of which $33,281,000 pertained to tangible assets owned, $11,796,000 pertained to intangible mineral properties being depleted, and $1,250,000 pertained to the refining contract.

- EBITDA decreased to negative $6,455,000 in Q4 2011 compared to $15,226,000 in Q4 2010.

- PGM ounces sold decreased 39% to 19,854 ounces in Q4 2011 compared to 32,752 PGM ounces in Q4 2010.

- The U.S. dollar average delivered price per PGM ounce decreased 12% to $931 in Q4 2011 compared to $1,058 in Q4 2010.

- The Rand average delivered price per PGM ounce increased 3% to R7,541 in Q4 2011 compared to R7,311 in Q4 2010.

- Total Rand operating cash costs decreased 1% to R208 million in Q4 2011 compared to R210 million in Q4 2010.

- Rand operating cash costs net of by-product credits increased 93% to R8,685 per ounce in Q4 2011 compared to R4,509 per ounce in Q4 2010. Rand operating cash costs increased 63% to R10,455 per ounce in Q4 2011 compared to R6,412 per ounce in Q4 2010.

- U.S. dollar operating cash costs net of by-product credits increased 64% to $1,072 per ounce in Q4 2011 compared to $653 per ounce achieved in Q4 2010. U.S. dollar operating cash costs increased 39% to $1,291 per ounce in Q4 2011 compared to $928 per ounce in Q4 2010.

- Head grade increased to 4.1 grams per tonne in Q4 2011 from 4.0 grams per tonne in Q4 2010.

- Average concentrator recovery decreased to 76% in Q4 2011 compared to 78% in Q4 2010.

- Development meters decreased by 16% to 2,929 meters and on-reef development decreased by 17% to 1,591 meters compared to Q4 2010.

- Stoping units decreased 40% to 31,767 square meters in Q4 2011 compared to 53,044 square meters in Q4 2010.

- Run-of-mine ore hoisted decreased by 38% to 200,919 tonnes in Q4 2011 compared to 324,879 tonnes in Q4 2010.

- Run-of-mine ore processed decreased by 41% to 194,532 tonnes in Q4 2011 compared to 327,872 tonnes in Q4 2010.

- The Company's Lost Time Injury Frequency Rate (LTIFR) improved to 2.61 in Q4 2011 compared to 3.88 in Q4 2010. However, as reported on November 7, 2011, a fatality occurred at CRM that resulted in a Section 54 Stop Work Order being issued by the Department of Mineral Resources (“DMR“).

- At December 31, 2011, the Company had a cash position (including cash, cash equivalents and short term investments) of $250,801,000 (December 31, 2010 - $350,292,000).


Summary of results for the year ended December 31, 2011

- Eastplats recorded a net loss attributable to equity shareholders of the Company of $76,545,000 ($0.08 loss per share) in the year ended December 31, 2011 (“12M 2011“) compared to earnings of $13,352,000 ($0.02 per share) in the year ended December 31, 2010 (“12M 2010“).

- In 2011, the Company determined that the carrying value of CRM exceeded the expected net present value of its future cash flows. This resulted in an impairment charge of $46,327,000, of which $33,281,000 pertained to tangible assets owned, $11,796,000 pertained to intangible mineral properties being depleted, and $1,250,000 pertained to the refining contract.

- EBITDA decreased to negative $1,411,000 in 12M 2011 compared to $45,099,000 in 12M 2010.

- PGM ounces sold decreased 30% to 92,724 ounces in 12M 2011 compared to 131,901 PGM ounces in 12M 2010.

- The U.S. dollar average delivered price per PGM ounce increased 8% to $1,073 in 12M 2011 compared to $995 in 12M 2010.

- The Rand average delivered price per PGM ounce increased 6% to R7,726 in 12M 2011 compared to R7,264 in 12M 2010.

- Total Rand operating cash costs increased 3% to R828 million in 12M 2011 compared to R804 million in 12M 2010.

- Rand operating cash costs net of by-product credits increased 48% to R7,118 per ounce in 12M 2011 compared to R4,800 per ounce in 12M 2010. Rand operating cash costs increased 46% to R8,929 per ounce in 12M 2011 compared to R6,099 per ounce in 12M 2010.

- U.S. dollar operating cash costs net of by-product credits increased 50% to $984 per ounce in 12M 2011 compared to $657 per ounce achieved in 12M 2010. U.S. dollar operating cash costs increased 48% to $1,236 per ounce in 12M 2011 compared to $835 per ounce in 12M 2010.

- Head grade decreased to 4.0 grams per tonne in 12M 2011 from 4.1 grams per tonne in 12M 2010.

- Average concentrator recovery decreased to 77% in 12M 2011 compared to 79% in 12M 2010.

- Development meters increased by 15% to 14,686 meters and on-reef development increased by 16% to 8,363 meters compared to 12M 2010.

- Stoping units decreased 28% to 148,863 square meters in 12M 2011 compared to 206,269 square meters in 12M 2010.

- Run-of-mine ore hoisted decreased by 29% to 917,343 tonnes in 12M 2011 compared to 1,288,416 tonnes in 12M 2010.

- Run-of-mine ore processed decreased by 29% to 903,298 tonnes in 12M 2011 compared to 1,265,973 tonnes in 12M 2010.

- The Company's LTIFR improved to 1.46 in 12M 2011 compared to 3.32 in 12M 2010. However, as reported on November 7, 2011, a fatality occurred at CRM and resulted in a Section 54 Stop Work Order being issued by the DMR. This came after 3.8 million fatality free shifts at the mine and was a major blow to the Company's efforts toward improvements in mine health and safety during 2011. The DMR's lengthy investigation into the accident resulted in lost production.

The qualified person having reviewed the operating disclosures presented in this press release is Mr. Brian Montpellier, P. Eng, V.P. Project Development.


Financial Information

For complete details of financial results, please refer to the audited condensed consolidated financial statements and accompanying Management's Discussion and Analysis (“MD&A“) for the year ended December 31, 2011. These financial statements and MD&A, and the comparative financial statements for the year ended December 31, 2010 are all available on SEDAR at www.sedar.com and on the Company's website www.eastplats.com.


Teleconference call details

Eastplats will host a telephone conference call on Tuesday, March 6, 2012 at 10:00 am Pacific (1:00 pm Eastern) 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 Tuesday, March 13, 2012 and can be accessed by dialing 1-604-638-9010 or 1-800-319-6413 and using the pass code 4219 followed by the number sign (#).

Total shares issued and outstanding - 928,187,807



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. 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 further information:

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