Eastern Platinum Limited Reports Q1 2019 Results
1080 - 1188 West Georgia St.
Vancouver, BC Canada V6E 4A2
May 15, 2019
Trading Symbol: ELR (TSX); EPS (JSE)
NEWS RELEASE
EASTERN PLATINUM LIMITED REPORTS Q1 2019 RESULTS
May 15, 2019, Vancouver, British Columbia – Eastern Platinum Limited (“ Eastplats ” or the “ Company ”) is pleased
to report that it has filed its Q1 2019 condensed i nterim consolidated financial statements and manage ment’s
discussion and analysis for the three month period ended March 31, 2019. Below is a summary of the Com pany’s
financial results and highlights for Q1 2019 (all amounts in USD, except as indicated in South African Rand (“ ZAR ”)):
• Revenue from the Retreatment Project $5.4 million;
• Operating loss $1.8 million in Q1 2019 compared to $2.6 million in Q1 2018;
• Net financing cash flow of $2.2 million (ZAR31.3 mi llion) during Q1 2019 - Retreatment Project
construction loan from Union Goal (as defined below ) in accordance to the Framework Agreement (as
defined below);
• Cash and short-term investments of $3.8 million and net working capital (excluding non-cash deferred
revenue) of $5.7 million as at March 31, 2019;
• Net operating cash flows used during Q1 2019 was $3.7 million compared with $1.7 million in Q1 2018; and
• Net loss to equity shareholders of $0.8 million (loss of $0.01 per share) during Q1 2019 compared with $0.7
million (loss of $0.01 per share) in Q1 2018 – the increase resulting from a $0.4 million change in fo reign
exchange losses.
Operations of the Retreatment Project
As previously disclosed, on March 1, 2018, the Company entered into an agreement (the “ Framework Agreement ”)
with Union Goal Offshore Solution Limited (“ Union Goal ”) relating to the construction, re-mining and proc essing of
the tailing resource and offtake of chrome concentr ate from Barplats Mines (Pty) Limited tailings faci lity (the
“ Retreatment Project ”) located at the Company’s Crocodile River Mine in South Africa (“ CRM ”).
The Company is operating the Retreatment Project an d during Q1 2019, reached 45% of processing capacit y. Based
on the Company’s targets, the Retreatment Project i s forecast to reach full capacity by July 2019. During April 2019,
material from re-mining the tailings reached over 7 0% of processing capacity. The Company remains focu sed on
ramping-up throughput of tailings material.
Production during the initial operation in late December 2018 to the end of April 2019:
Average grade Cr concentrate Tons of Cr concentrate
38.6 % 144,419
The Company began in April 2019 the consideration a nd testing of a PGM recovery circuit in relation to the tailings
resource in an effort to generate additional revenu e. The Company has numerous alternatives and is see king the best
possible path forward. Samples and testing from the new operating chrome plant will allow for the most accurate
assessment. The Company targets a decision in this regard during Q3 2019.
Outlook
The Company seeks to ensure the Retreatment Project is brought into full operations, which is estimate d to occur in
July 2019. Once the Retreatment Project has reached full commercial production, the Company will annou nce its
production targets for the remainder of 2019. Based on early results the Company believes that it will make a definitive
decision with respect to PGM’s by the end of Q3 201 9.
The Company’s targets for 2019 remain:
• Retreatment Project ramp-up to full production in July 2019;
• Assessment and decision regarding the PGM recoverability opportunities in relation to the tailings resource;
• Finalize the Retreatment Project Chrome Circuit pur chase in accordance with the option under the
Framework Agreement;
• Assessment and decision regarding Mareesburg projec t; and
• Assessment and discussions regarding the CRM Zandfo ntein underground operations.
The Company is actively looking at opportunities for its other assets and properties and exploring options to utilize or
monetize these assets.
AGM and Special Meeting
On May 14, 2019 the Company mailed its annual circu lar to Shareholders. The Annual General and Special Meeting
is to be held June 13, 2019 at 10:00am local time i n South Africa. The material is filed on SEDAR and available on
the Company’s website, www.eastplats.com.
The Company has filed the following documents, under the Company’s profile on SEDAR at www.sedar.com :
• Condensed interim consolidated financial statements for the three months ended March 31, 2019;
• Management’s discussion and analysis for the three months ended March 31, 2019; and
• 2019 Company Circular for voting at the Annual General and Special Meeting.
For further information, please contact:
EASTERN PLATINUM LIMITED
Rowland Wallenius, Chief Financial Officer
[email protected] (email)
(604) 800 -8200 (phone)
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statem ents” or “forward-looking information” (collectivel y referred to herein as
“ forward-looking statements ”) within the meaning of applicable securities legislation. Such forward-looking statements include,
without limitation, forecasts, estimates, expectati ons and objectives for future operations that are s ubject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-lo oking statements are
statements that are not historical facts and are ge nerally, but not always, identified by the words “w ill”, “plan”, “intends”, “may”,
“will”, “could”, “expects”, “anticipates” and simil ar expressions. Further disclosure of the risks and uncertainties facing the
Company and other forward-looking statements are di scussed in the Company’s most recent Annual Informa tion Form available
under the Company’s profile on www.sedar.com.
In particular, this press release contains forward-looking statements pertaining to: forecast of operational activity of the Retreatment
Project and the Company’s ability to achieve full-operational capacity at the Retreatment Project by July 2019 or at all; forecasted
cashflows of the Retreatment Project; the Company’s ability to test and assess PGM recovery opportunities in connection with the
Retreatment Project; the Company’s possible decisio n regarding the option exercise in relation to the Framework Agreement; or
the Company’s ability to assess and make decisions with respect to its other assets. 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 relia nce on these statements as a
number of factors could cause actual results to dif fer materially from the beliefs, plans, objectives, expectations, estimates and
intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that
may arise in our production processes, commodity pr ices, lower than expected grades and quantities of resources, need for
additional funding and availability of such additio nal funding on acceptable terms, economic condition s, currency fluctuations,
competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this press releas e are expressly qualified in their entirety by this cautionary statement, the
“ Cautionary Statement on Forward-Looking Information ” section contained in the Company’s most recent Ma nagement’s
Discussion and Analysis available under the Company’s profile on www.sedar.com. 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, and does not undertake, to update or revise any forward-looking statements, w hether as a result of new
information, future events or otherwise.
No stock exchange, securities commission or other r egulatory authority has approved or disapproved the
information contained herein.
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