ELR Eastern Platinum Limited

Eastern Platinum Limited (TSX:ELR)(AIM:ELR)(JSE:EPS) ("Eastplats" or the
"Company") reports that due to the continuing negative changes in the global
economic environment and the operating environment in South Africa, it has
decided to suspend funding for the ongoing development of the Mareesburg open
pit mine and construction of the Kennedy's Vale Concentrator Plant (the
"Project"). The Company will reassess the project economics as and when a
sustained recovery in the global economic environment and metals prices takes
place.


The Project was progressing according to the planned schedule and budget with
initial commissioning planned for the first quarter of 2013. Civil works are
largely complete and concrete work is well advanced. Almost all the necessary
process equipment has been procured and received. Engineering is over 90%
complete with construction about 20% complete. The overall project is 30%
complete and a rapid restart of project construction could take place when
conditions warrant.


The pricing of PGMs has declined significantly since the decision was made to
develop the project nine months ago, with little or no fundamental demand
recovery or supply reduction forecast in the near to medium term. With the
ongoing weakness and volatility in the global financial markets (particularly in
Europe which consumes approximately 50% of South Africa's platinum production),
the Company is of the view that a near term recovery in PGM prices to
sustainably appropriate levels is unlikely. In addition, the South African PGM
industry is dealing with a number of other predominating economic factors,
including unrelenting operating cost inflation, adverse currency exchange rates,
weak chrome prices, heightened concerns with respect to reliable power delivery
and unplanned and unlawful labour actions.


In the current operating environment, the financial risk of continued project
development is not merited and Eastplats has taken the decision to suspend the
Project funding so as to maintain the value in the resources planned to be
mined. The Project will be monitored subject to a sustainable strengthening of
metal prices and improvement in operating conditions in South Africa.


"These factors, and particularly the continued cost pressures that we are
experiencing in South Africa, make the platinum sector an extremely difficult
space in which to operate. We do not envisage any significant large scale
production cuts from the larger producers and consequently expect that the
industry will have to contend with much lower metal prices than previously
projected in the medium term. As the open pit operation at Mareesburg was
previously projected to provide a significant contribution to revenue in the
near term, we see no merit in depleting the deposit and the financial resources
of the Company until such time as economic and operating conditions markedly
improve. After a considerable amount of review and evaluation Eastplats has been
proactive in taking this action in the interests of maximizing the value of the
PGM resources in the Company," stated Ian Rozier, President and CEO.


The Company continues to review its overall mining operations at CRM in order to
mitigate the impact of depressed prices and to safeguard its business and cash
resources. As mentioned in the Company's first quarter financial statements, the
performance of the mining contractor, JIC Mining Services, at the Maroelabult
section of CRM, is also being reviewed.


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


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. 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.

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