Eastern Platinum Ltd (ELR)

[sumisu]

Eastplats Proceeds With Development of Crocette

Press Release Source: Eastern Platinum Limited

On Tuesday January 12, 2010, 8:15 am EST

http://finance.yahoo.com/news/Eastplats-Proceeds-With-ccn-101291391.html?x=0&.v=1

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2010) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") (TSX:ELR - News; AIM:ELR)(JSE:EPS) is pleased to announce the reactivation of mine development at the Crocette Section of the Crocodile River Mine ("CRM"). The Crocette Project offers attractive economics as a result of recent increases in PGM prices combined with the meaningful reductions in operating costs which have been achieved at CRM.

Orebody access at Crocette was initiated in 2008 from two portals which will be reopened and developed to the UG2 reef. At full production the Crocette Section is anticipated to deliver up to 40,000 tons of ore per month (anticipated 50,000 opa PGM). This will enable CRM to reach its full production target of 175,000 tpm (approx. 200,000 opa), in line with Eastplats' anticipated growth profile for the mine. This target does not include any potential production from the Kareespruit Section at CRM.

In a news release dated November 7th, 2008 the Company reported that the development of Crocette was to be put on 'care and maintenance' in response to adverse market conditions while the Company took measures to increase production from the Zandfontein and Maroelabult sections at CRM. These measures, which have been successfully completed, include:

a. The reequipping and recommissioning of the Number One shaft at Zandfontein to open up new areas for mining has reduced the cost of moving mine workers, materials, ore and waste.

b. The upgrading and extension of the main ore conveyor at Maroelabult has resulted in improved efficiencies and more reliable operations.

c. The successful optimization of the chrome recovery circuit in the concentrator has produced more profitable chrome products and reduced chrome penalties in the PGM concentrate. d. Ongoing underground development at Zandfontein and Maroelabult to ensure future mill feed tonnages.

These measures, as well as ongoing mine design and operating improvements, have enabled the Company to continue as a low cost producer, conserve cash and increase production throughout 2009.

Crocette is one of the few remaining undeveloped near-surface PGM projects on the western limb of the Bushveld Complex that has immediate access to a processing facility. Infill drilling has confirmed the continuity of the UG2 at Crocette to a depth of 600m with a dip of 18 degrees, a reef width of 1.2m and an estimated head grade of 4.1g/t (5PGE+Au). Open pit mining at Crocette is not an option as the near-surface reef is highly oxidized which would result in poor metal recoveries; this is a common feature of outcropping PGM reefs throughout the Bushveld Complex. The New Order Mining Right for Crocette was granted in March 2008 (see news release dated April 2, 2008).

A commitment to provide construction power for the project has been received from Eskom but alternative guaranteed supplies are also being evaluated by Eastplats.

Design work for the Spitzkop mine and concentrator continued in 2009 and an updated cost estimate and schedule for the project is expected to be completed in the first half of 2010.

"The re-start of Crocette marks another era of expansion for CRM and Eastplats' operations and reflects our confidence in the PGM markets and in our ability to operate profitably at current metal prices and at current exchange rates. We look forward to further increases in production levels to offset current fixed costs on the mine with no significant capital inputs other than for the underground mine development. The re-start of mine development at Crocette represents just one phase of future development plans for Eastplats production growth," stated Ian Rozier.

The qualified person having prepared the contents of this news release is Mr. Brian Montpellier, P.Eng.

Total shares issued and outstanding: 680,946,625

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. 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.

Contact:
Investor RelationsEastern Platinum Limited1-(604)-685-68511-(604)-685-6493 (FAX)[e-mail]://www.eastplats.com/