Eastern Platinum Limited Reports Q1 2018 Results

/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/

Trading Symbol: ELR (TSX); EPS (JSE)

VANCOUVER, May 11, 2018 /CNW/ - Eastern Platinum Ltd. ("Eastplats" or the "Company") is pleased to report that it has filed its Q1-2018 condensed interim consolidated financial statements and management's discussion and analysis for the three month period ended March 31, 2018. Below is a summary of the Company's financial results and highlights for Q1 2018 (all amounts in USD, except as indicated in South African Rand ("ZAR")):

• cash inflow of $3.6 million (ZAR 42.2 million) as an upfront payment from Union Goal Offshore Solution Limited ("Union Goal") in accordance with the UG Agreement (as defined herein) (See March 5, 2018 press release);
• cash and short-term investments of $21.3 million and working capital of $25.6 million at March 31, 2018 available for completion of the Retreatment Project (as defined herein) and other 2018 operations;
• capitalized and expended $29.5 million on the Chrome Circuit (as defined herein) and related construction activities to further the Retreatment Project (as defined herein) during Q1 2018;
• net loss of $1.2 million (loss of $0.01 per share) compared with $2.5 million (loss of $0.02 per share) in the same period of 2017, an improvement of 52%; and
• net operating cash flows used during the quarter was $1.4 million compared with $2.3 million in the same period of 2017, an improvement of 39%.

Construction of the Retreatment Project

As previously disclosed, on March 1, 2018, the Company and its subsidiary Barplats Mines (Pty) Limited ("Barplats") entered into a framework agreement (the "UG Agreement") with Union Goal relating to construction, mining and processing of the tailings resource and offtake of chrome concentrate from Barplats' tailings facility (the "Retreatment Project") located at the Company's Crocodile River Mine in South Africa ("CRM"). Construction of the Retreatment Project is well underway with the significant components of the chrome processing circuit already imported and at site. Construction teams are well advanced with the civil construction to build the structures for the chrome processing circuit. Work is progressing well at the tailings facility to relocate and move the ore for initial production all within the existing facility. The Company has completed a cost to complete exercise, after contracting almost 80% of Phase 1, and updated the estimated capital requirements for Barplats related to the Retreatment Project at ZAR 191.2 million ($16 million) which is a 16.6% increase over the initial estimate. The schedule remains on track and the Company is targeting Q3 for commissioning with revenue expected in the fall of 2018. 

Operating Highlights and Outlook

Construction of the Retreatment Project has been the primary focus of Eastplats since the UG Agreement was signed. Appropriate resources have been authorized and allocated and management is very pleased with the progress and remains optimistic of delivery on the agreed construction timetable for the chrome operations with the expectation of revenue-producing operations during Q3 2018.

The Company anticipates that its updated Platinum Group Metals ("PGM's") feasibility studies on its tailings resource at CRM will be completed during the next few months.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation.  Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company.  Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's Annual Information Form and Management's Discussion and Analysis which are available under the Company's profile on www.sedar.com.

In particular, this press release contains forward-looking statements pertaining to: estimated timing of construction and commissioning of the Retreatment Project, estimated timing of operations and revenue generation of the Retreatment Project, estimated capital requirements for the Retreatment Project and the timing, completion, and results of the updated PGM feasibility study on the tailings resource at CRM. 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 reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements.  These factors include, but are not limited to, commodity prices, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

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 to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

SOURCE Eastern Platinum Ltd.