Eastplats Provides a Response to Shareholder Press Release
1080 - 1188 West Georgia St.
Vancouver, BC Canada V6E 4A2
March 4, 2020
Trading Symbol: ELR (TSX); EPS (JSE)
NEWS RELEASE
EASTPLATS PROVIDES A RESPONSE TO SHAREHOLDER PRESS RELEASE
MARCH 4, 2020, Vancouver, British Columbia – Easter n Platinum Limited (the “ Company ”) is aware that a
shareholder, 2538520 Ontario Limited (“ 2538520 ”), has issued a press release on March 2, 2020 containing incorrect,
unproven, and speculative information concerning th e Company, its directors and others.
Derivative action
On August 28, 2019, Justice Smith of the Supreme Co urt of British Columbia dismissed an application by 2538520
on the basis that “2538520 has failed to satisfy th e good faith requirement in s. 233(1)(c) of the BCA .”
Appeal
As previously disclosed, 2538520 has filed an appea l from Justice Smith’s dismissal of their applicati on for leave to
commence a derivative action, which is scheduled fo r hearing in the Court of Appeal in April 2020. Th e Company
seeks dismissal of the appeal.
Further litigation
The Company has also recently become aware of a fur ther claim filed by 2538520 and its CEO, Rong Kai H ong,
(“Plaintiffs”) regarding various allegations, inclu ding that the Company was acting to oppress the Pla intiffs’ rights
among other claims. Several of these claims are sim ilar to the derivative action that was dismissed by the Court and
appear to primarily relate to 2538520’s unsuccessfu l attempt to acquire control of the Company. The Pl aintiffs seek
orders requiring a change to the Company ownership, election of new Directors, several changes to senior management
and damages of US$50 million (or such greater amoun t as may be proven at trial) from the Company, certain present
and former Directors and Officers, and separately seven other listed defendants. This new lawsuit has not been served
on the Company.
The Company intends to vigorously defend the lawsuit and to refute the information and many of the allegations made
in the claim. If and when the Company and others ha ve been formally served with the claim they will re spond in due
course.
For further information, please contact:
EASTERN PLATINUM LIMITED
Rowland Wallenius, Chief Financial Officer
[email protected] (email)
(604) 800 -8200 (office 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 discussed in the Company’s most recent Management Discussion and Analysis
and Annual Information Form available under the Company’s profile on www.sedar.com.
In particular, this press release contains forward-looking statements pertaining to the potential outcome of litigation matters. These
forward-looking statements are based on assumptions made by and information currently available to the Company. Although
management considers these assumptions to be reason able based on information currently available to it , they may prove to be
incorrect. By their very nature, forward-looking s tatements involve inherent risks and uncertainties and readers are cautioned not
to place undue reliance on these statements as a nu mber of factors could cause actual results to diffe r 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 prices, lower than expected grades
and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic
conditions, 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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