Eastern Platinum Ltd (ELR)

[sumisu]

Eastplats to Increase Production in 2009 but to Reschedule New Projects

Friday November 7, 8:29 am ET

http://biz.yahoo.com/ccn/081107/200811070495812001.html?.v=1

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 7, 2008) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats" or the "Company") (TSX:ELR - News; AIM:ELR)(JSE:EPS) reports that as a result of the dramatic drop in the PGM metal prices over the last three months and the associated reduction in operating margins, the Company has re-evaluated its short term development plan. Eastplats is committed to remaining a cost effective producer and over the short to medium term will concentrate on growth projects that support this objective. Accordingly, the Company will maintain near term focus on the optimization of production from the Crocodile River Mine (CRM) complex and reschedule other project developments in order to preserve existing cash resources.

Specific actions to be taken immediately include the following:

Western Limb - Crocodile River Mine

- The primary focus will be on optimizing production from the existing Zandfontein and Maroelabult sections of the mine.

- The refit of the Number One shaft at Zandfontein is complete and the shaft is operating. This complements the existing declines, opens up new areas for mining and reduces the cost of moving mine workers, material, ore and waste.

- Wherever possible, ongoing development work will be conducted using Eastplats crews rather than third party contractors.

- Work will continue on the installation of backup power to enable operations to continue during potential reductions in supply from Eskom.

- Work will continue on optimizing the chromite recovery circuit in the concentrator to produce the more profitable chromite products.

- The main ore conveyor and some of the mining fleet at Maroelabult have been replaced to support improved productivities through more reliable operation.

- The Crocette section declines have been driven down to the UG2 reef. The development of this section will be put on care and maintenance while the Company focuses on increasing production from existing mining areas.

- Eastplats forecasts 140,000 ounces of production from CRM in 2009, up 17% over 2008's full-year estimate of 120,000 ounces.

Eastern Limb - Spitzkop, Kennedy's Vale and Mareesburg

Most of the development on the Eastern Limb will be rescheduled until the PGM market improves. Specific actions include the following:

- Design work for the Spitzkop mine and concentrator will continue in order to produce an updated cost estimate and schedule for the project. This is expected to be completed by the first quarter of 2009 (Q1 2009). Current procurement activities will be put on hold.

- The feasibility study for the Mareesburg open pit continues and is expected to be available by Q1 2009.

- The UG2 and Merensky declines at Spitzkop have been developed to the point where they will be put on care and maintenance.

- The civil works underway for the development of the concentrator terrace at Kennedy's Vale will be put on hold.

"These actions will allow Eastplats to continue to be a low cost producer and conserve cash. As a direct result of the extensive underground development carried out at CRM over the past two years, we have the flexibility to enact these measures and at the same time increase production. Our new development projects, now rescheduled, can be maintained at very low cost and can be re-activated quickly when the PGM market recovers," stated Ian Rozier, CEO of Eastplats.

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

Total shares issued and outstanding: 680,526,421

S&P TSX Composite Index

Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production and a decline in metal prices. Eastplats is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

Contact:
Investor Relations
Eastern Platinum Limited
[phone]
[phone] (FAX)
Email: [e-mail]
Website: HTTP://www.eastplats.com

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Source: Eastern Platinum Limited