Eastern Platinum Reports Results for the Three Months Ended June 30, 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2012) - Eastern Platinum Limited (TSX:ELR)(AIM:ELR)(JSE:EPS) -

Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") reports financial results for the three months ended June 30, 2012.

Summary of results for the three months ended June 30, 2012 ("Q2 2012"):

• Eastplats recorded a loss attributable to equity shareholders of the Company of $85,674,000 ($0.09 loss per share) in the quarter ended June 30, 2012 ("Q2 2012") compared to a loss of $7,951,000 ($0.01 loss per share) in the quarter ended June 30, 2011 ("Q2 2011").
  
• The Company recorded an impairment charge of $88,278,000 on its Eastern Limb properties in Q2 2012.
  
• Adjusted EBITDA was negative $4,599,000 in Q2 2012 compared to negative $4,280,000 in Q2 2011. The impairment charge was not included in the calculation of adjusted EBITDA.
  
• PGM ounces sold increased 29% to 26,412 ounces in Q2 2012 compared to 20,528 PGM ounces in Q2 2011.
  
• The U.S. dollar average delivered price per PGM ounce decreased 19% to $902 in Q2 2012 compared to $1,113 in Q2 2011.
  
• The Rand average delivered price per PGM ounce decreased 3% to R7,324 in Q2 2012 compared to R7,557 in Q2 2011.
  
• Total Rand operating cash costs increased 11% to R235 million in Q2 2012 compared to R211 million in Q2 2011.
  
• Rand operating cash costs net of by-product credits decreased 9% to R7,390 per ounce in Q2 2012 compared to R8,119 per ounce in Q2 2011. Rand operating cash costs decreased 14% to R8,881 per ounce in Q2 2012 compared to R10,287 per ounce in Q2 2011.
  
• U.S. dollar operating cash costs net of by-product credits decreased 24% to $910 per ounce in Q2 2012 compared to $1,196 per ounce achieved in Q2 2011. U.S. dollar operating cash costs decreased 28% to $1,094 per ounce in Q2 2012 compared to $1,515 per ounce in Q2 2011.
  
• Head grade increased to 3.99 grams per tonne in Q2 2012 from 3.93 grams per tonne in Q2 2011.
  
• Average concentrator recovery increased to 79% in Q2 2012 compared to 76% in Q2 2011.
  
• Development meters decreased by 18% to 2,922 meters and on-reef development decreased by 21% to 1,653 meters compared to Q2 2011.
  
• Stoping units increased 29% to 40,959 square meters in Q2 2012 compared to 31,828 square meters in Q2 2011.
  
• Run-of-mine ore hoisted increased 27% to 257,250 tonnes in Q2 2012 compared to 203,166 tonnes in Q2 2011.
  
• Run-of-mine ore processed increased by 25% to 252,883 tonnes in Q2 2012 compared to 201,986 tonnes in Q2 2011.
  
• The Company's Lost Time Injury Frequency Rate (LTIFR) was 1.17 in Q2 2012 compared to 0.63 in Q2 2011.
  
• At June 30, 2012, the Company had a cash position (including cash, cash equivalents and short term investments) of $167,871,000 (December 31, 2011 - $250,801,000).

The Company is pleased to report that, following its announcement on May 30, 2012 of its proposed plan for the suspension of development of the Mareesburg open-pit mine and construction of the Kennedy's Vale concentrator, the construction work has wound down efficiently following a coordinated plan. The project will be an estimated 40% complete and is forecast to be on full care and maintenance by the end of September 2012.

The Company is also pleased to report that its implementation of a comprehensive mine development plan at the Crocodile River Mine is progressing well. As a result of the temporary suspension of stoping at the Zandfontein section while continuing "on-reef" mining operations at the Maroelabult section, the Company expects production for the full year of 2012 to be approximately 75,000 PGM ounces and for the full year of 2013 to be approximately 60,000 PGM ounces.

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

Financial Information

For complete details of financial results, please refer to the audited condensed consolidated financial statements and accompanying Management's Discussion and Analysis ("MD&A") for the three months ended June 30, 2012. These financial statements and MD&A, and the comparative financial statements for the three months ended June 30, 2011 are all available on SEDAR at www.sedar.com and on the Company's website www.eastplats.com.

Teleconference call details

Eastplats will host a telephone conference call on Tuesday, August 14, 2012 at 10:00 am Pacific (1:00 pm Eastern) to discuss these results. The conference call may be accessed by dialing 1-800-319-4610 in Canada and the United States, or 1-604-638-5340 internationally.

The conference call will be archived for later playback until Tuesday, August 21, 2012 and can be accessed by dialing 1-604-638-9010 or 1-800-319-6413 and using the pass code 4219 followed by the number sign (#).

Total shares issued and outstanding - 928,187,807

Cautionary Statement on Forward-Looking Information

This press release, which contains certain forward-looking statements, is intended to provide readers with a reasonable basis for assessing the financial performance of the Company. 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. These forward-looking statements pertain to assumptions regarding the price of PGMs, fluctuations in currency markets (specifically the Rand and the U.S. dollar), the future funding of the Company's projects, the future development of the Company's projects, the Company's plans for its properties, the anticipated timing for the awarding of tenders, and the accounting policies issued but not yet effective for the Company. 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, the risk of fluctuations in the assumed exchange rates of currencies that directly impact the Company, such as Canadian dollar, South African Rand and U.S. dollar, the risk of fluctuations in the assumed prices of PGM and other commodities, the risk of 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 assumed 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.

Eastern Platinum Limited
Condensed consolidated interim statements of loss
(Expressed in thousands of U.S. dollars, except per share amounts - unaudited)
					Three months ended					Six months ended
			Note		June 30,		June 30,				June 30,		June 30,
					2012			2011			2012			2011
Revenue				$	24,287		$	26,876		$	48,673		$	62,578
Cost of operations
	Production costs				28,886			31,156			55,686			60,446
	Depletion and depreciation		6		3,810			5,259			8,133			10,378
	Impairment		6		88,278			-			88,278			-
	Loss on disposal of property, plant and equipment				1,569			-			1,569			-
					122,543			36,415			153,666			70,824
Mine operating loss					(98,256	)		(9,539	)		(104,993	)		(8,246	)
Expenses
	General and administrative		6(d)		2,492			2,932			4,695			6,027
	Share-based payments		7(e)(f)		23			46			2,340			8,269
					2,515			2,978			7,035			14,296
Operating loss					(100,771	)		(12,517	)		(112,028	)		(22,542	)
Other income (expense)
	Interest income				897			1,413			1,929			2,922
	Finance costs		8		(4,805	)		(353	)		(5,099	)		(875	)
	Foreign exchange (loss) gain				(45	)		113			202			1,677
Loss before income taxes					(104,724	)		(11,344	)		(114,996	)		(18,818	)
Income tax recovery					15,312			471			12,475			593
Net loss for the period				$	(89,412	)	$	(10,873	)	$	(102,521	)	$	(18,225	)
Attributable to
	Non-controlling interest		9	$	(3,738	)	$	(2,922	)	$	(7,939	)	$	(4,641	)
	Equity shareholders of the Company				(85,674	)		(7,951	)		(94,582	)		(13,584	)
Net loss for the period				$	(89,412	)	$	(10,873	)	$	(102,521	)	$	(18,225	)
Loss per share
	Basic		10	$	(0.09	)	$	(0.01	)	$	(0.10	)	$	(0.01	)
	Diluted		10	$	(0.09	)	$	(0.01	)	$	(0.10	)	$	(0.01	)
Weighted average number of common shares outstanding in thousands
	Basic		10		927,499			908,183			927,499			908,099
	Diluted		10		927,499			908,183			927,499			908,099

Approved and authorized for issue by the Board on August 10, 2012.

David Cohen, Director

Robert Gayton, Director

Eastern Platinum Limited
Condensed consolidated interim statements of comprehensive loss
(Expressed in thousands of U.S. dollars - unaudited)
			Three months ended						Six months ended
			June 30,			June 30,			June 30,			June 30,
			2012			2011			2012			2011
Net loss for the period		$	(89,412	)	$	(10,873	)	$	(102,521	)	$	(18,225	)
Other comprehensive (loss) income
	Exchange differences on translating foreign operations		(40,064	)		1,257			(6,888	)		(472	)
	Exchange differences on translating non-controlling interest		576			(11	)		291			(203	)
Comprehensive loss for the period		$	(128,900	)	$	(9,627	)	$	(109,118	)	$	(18,900	)
Attributable to
	Non-controlling interest		(3,162	)		(2,933	)		(7,648	)		(4,844	)
	Equity shareholders of the Company		(125,738	)		(6,694	)		(101,470	)		(14,056	)
Comprehensive loss for the period		$	(128,900	)	$	(9,627	)	$	(109,118	)	$	(18,900	)

Eastern Platinum Limited
Condensed consolidated interim statements of financial position as at June 30, 2012 and December 31, 2011
(Expressed in thousands of U.S. dollars - unaudited)
					June 30,		December 31,
			Note		2012			2011
Assets
Current assets
	Cash and cash equivalents		11	$	57,397		$	151,838
	Short-term investments				110,474			98,963
	Trade and other receivables		12		27,244			23,580
	Inventories		13		6,556			7,989
					201,671			282,370
Non-current assets
	Property, plant and equipment		6		564,494			615,439
	Refining contract		14		8,230			9,009
	Other assets		15		8,595			7,995
				$	782,990		$	914,813
Liabilities
Current liabilities
	Trade and other payables		16	$	29,945		$	40,459
	Finance leases				-			1,675
					29,945			42,134
Non-current liabilities
	Provision for environmental rehabilitation		17		8,646			8,390
	Deferred tax liabilities				20,424			33,520
					59,015			84,044
Equity
	Issued capital		7		1,230,358			1,230,358
	Treasury shares		7(c)		(334	)		(334	)
	Equity-settled employee benefits reserve				43,887			41,563
	Foreign currency translation reserve				(110,367	)		(103,479	)
	Deficit				(428,438	)		(333,856	)
	Capital and reserves attributable to equity shareholders of the Company				735,106			834,252
	Non-controlling interest		9		(11,131	)		(3,483	)
					723,975			830,769
				$	782,990		$	914,813

Eastern Platinum Limited
Condensed consolidated interim statements of cash flows
(Expressed in thousands of U.S. dollars - unaudited)
					Three months ended						Six months ended
					June 30,			June 30,			June 30,			June 30,
			Note		2012			2011			2012			2011
Operating activities
Loss before income taxes				$	(104,724	)	$	(11,344	)	$	(114,996	)	$	(18,818	)
Adjustments to net loss for non-cash items
	Depletion and depreciation		6		3,878			5,853			8,266			10,972
	Impairment		6		88,278			-			88,278			-
	Refining contract amortization		14		340			407			697			802
	Share-based payments		7(e)(f)		23			46			2,340			8,269
	Loss on disposal of property, plant and equipment				1,569			-			1,569			-
	Interest income				(897	)		(1,413	)		(1,929	)		(2,922	)
	Finance costs		8		4,805			353			5,099			875
	Foreign exchange loss (gain)				45			(113	)		(202	)		(1,677	)
Net changes in non-cash working capital items
	Trade and other receivables				2,461			7,858			(3,192	)		7,541
	Inventories				1,959			792			1,322			754
	Trade and other payables				(2,284	)		(2,072	)		(739	)		356
	Cash (used in) generated from operations				(4,547	)		367			(13,487	)		6,152
Adjustments to net loss for cash items
	Interest income received				1,237			1,023			2,056			1,673
	Finance costs paid				(4,428	)		(2	)		(4,466	)		(195	)
	Net taxes (paid) received				(173	)		250			543			(33	)
Net operating cash flows					(7,911	)		1,638			(15,354	)		7,597
Investing activities
	Acquisition of Lion's Head		5		-			-			(10,000	)		-
	Net purchase of short-term investments				22,445			3,576			(12,022	)		(1,495	)
	Purchase of other assets				(378	)		(4,304	)		(712	)		(4,995	)
	Property, plant and equipment expenditures				(34,031	)		(19,193	)		(56,654	)		(33,516	)
	Disposal of property, plant and equipment				554			-			554			-
Net investing cash flows					(11,410	)		(19,921	)		(78,834	)		(40,006	)
Financing activities
	Common shares issued for cash - exercise of stock options				-			-			-			-
	Payment of finance leases				127			(648	)		(1,553	)		(648	)
Net financing cash flows					127			(648	)		(1,553	)		(648	)
Effect of exchange rate changes on cash and cash equivalents					(1,419	)		(756	)		1,300			1,370
Decrease in cash and cash equivalents					(20,613	)		(19,687	)		(94,441	)		(31,687	)
Cash and cash equivalents, beginning of period					78,010			95,846			151,838			107,846
Cash and cash equivalents, end of period				$	57,397		$	76,159		$	57,397		$	76,159