Mr. Wanjin Yang reports

EASTERN PLATINUM LIMITED REPORTS RECORD ANNUAL FULL YEAR REVENUE FOR 2023, ANNOUNCES RESTATEMENT OF COMPARATIVES, AND PROVIDES ITS TARGETS FOR 2024

Eastern Platinum Ltd. has filed its audited consolidated financial statements for the fiscal year ended Dec. 31, 2023, and the corresponding management's discussion and analysis and annual information form. Below is a summary of the company's financial results for the fourth quarter of 2023 and for the fiscal year ended Dec. 31, 2023 (all amounts are in U.S. dollars unless specified), in comparison with the restated periods in 2022:

• Revenue for Q4 2023 increased to $30.5-million (restated Q4 2022: $12.4-million), representing a 146.0-per-cent increase. Revenue for FY 2023 increased to $106.9-million, a record full-year high (restated FY 2022: $53.9-million), representing a 98.3-per-cent increase.
• Mine operating income increased by $9.6-million to $7.8-million in Q4 2023 (restated Q4 2022 mine operating loss: $1.8-million), resulting in a gross margin of 25.5 per cent in Q4 2023 as compared with minus 14.5 per cent in restated Q4 2022. Mine operating income in FY 2023 increased by $24.0-million to $31.6-million (restated FY 2022: $7.6-million), resulting in a gross margin of 29.5 per cent in FY 2023 as compared with 14.2 per cent in restated FY 2022.
• Operating income was $2.8-million in Q4 2023 compared with an operating loss of $4.8-million in restated Q4 2022. Operating income increased by $23.2-million to $18.5-million in FY 2023 from an operating loss of $4.7-million in restated FY 2022, a 493.6-per-cent increase in operating income.
• Net income attributable to shareholders was $3.3-million (two-cent earnings per share) in Q4 2023 versus $1.4-million (one-cent earnings per share) in restated Q4 2022. The increase in net income was largely attributable to the significant increase in third party chrome concentrate sales in the period offset by preproduction costs of $2.1-million as the company initiated the restart of the Zandfontein underground section at the Crocodile River mine. The restated Q4 2022 net income was attributable to a restated operating loss offset by other income of $6.6-million, which was mainly related to the change in value of the company's loans payable.
• Net income attributable to shareholders increased to $13.8-million (eight-cent earnings per share) in FY 2023 compared with a net loss attributable to shareholders of $900,000 (one-cent loss per share) in restated FY 2022. The increase in income during FY 2023 is mainly attributable to the increased revenue and gross margins generated by remining and processing the company's tailings resources at the CRM to produce chrome concentrate and platinum group metal concentrate, respectively, offset by preproduction costs incurred in Q4 2023 as described in the previous point. The restated FY 2022 net loss was attributable to an operating loss offset by other income of $7.9-million, which mainly related to the change in value of the company's loans payable.
• The company had a working capital deficit (current assets less current liabilities) of $15.5-million as at Dec. 31, 2023 (restated Dec. 31, 2022: working capital deficit of $37.8-million), and short-term cash resources of $21.3-million (consisting of cash, cash equivalents and short-term investments) (restated Dec. 31, 2022: $2.4-million).

Wanjin Yang, chief executive officer and president of Eastplats, commented: "We are proud of the results that our chrome and PGM businesses have achieved. The team continues to work hard as the retreatment project comes to an end, turning its focus to ramping up underground tonnages in the Zandfontein underground section at the Crocodile River mine. Eastplats remains committed to continuing its operational and cost-efficiency initiatives while being mindful of PGM market price movements."

Prior-year error -- restatement of comparatives

Certain 2022 comparative numbers in the FY 2023 audited consolidated financial statements and corresponding management's discussion and analysis have been restated to correct an error in the fiscal 2022 consolidated financial statements that was identified subsequent to the 2022 year-end and is discussed below.

In connection with the preparation of the company's consolidated financial statements for the year ended Dec. 31, 2023, an error was identified in the recognition of revenue related to a chrome concentrate sales transaction in the fourth quarter of 2022, which impacts the company's previously filed audited consolidated financial statements for the year ended Dec. 31, 2022, and its unaudited interim consolidated financial statements for the three months ended March 31, 2023. Chrome concentrate revenue is recognized when control is transferred to the buyer and payment is considered probable. A sales transaction that was included in deferred revenue at the end of 2022 and recognized as revenue in the first quarter of 2023 should have been recognized in the fourth quarter of 2022 based on the fact that the company had met all of its required performance obligations at the time, as supported by the underlying contract and bill of lading. Previously reported revenue from 2022 was thus understated by $4.0-million, with associated errors in production costs, inventories and deferred revenue.

The attached table presents the effects of the restatement on the individual line items within the company's consolidated statement of income (loss), expressed in thousands of U.S. dollars, except for per-share amounts. The corrected prior-period error had no impact on cash flows.

The restated first quarter 2023 comparatives will be presented in the interim consolidated financial statements for the three months ended March 31, 2024, which are due to be filed by May 15, 2024.

The consolidated financial statements and related financial information for the affected period contained in the company's filings filed prior to May 3, 2024, should no longer be relied upon.

Operations

The company generated revenue from processing PGM and chrome concentrates during Q4 2023 and FY 2023. Eastplats' majority of revenue (approximately 96 per cent and 95 per cent for Q4 2023 and FY 2023, respectively) is from chrome concentrate sales. Until July of 2022, this revenue was based on the Union Goal offtake agreement entered into between the company's subsidiary Barplats Mines Pty. Ltd. and Union Goal Offshore Solution Ltd. in relation to chrome concentrate production from the retreatment project. Previously and until the end of the second quarter of 2022, the retreatment project produced revenue based on tons of material made available for processing by remining and processing the tailings, recovery of certain operational costs, and allocation of the upfront cash payment for the offtake of chrome concentrate to Union Goal.

Additional non-cash deferred revenue was recognized based on tons made available for processing from the discounting of the chrome equipment debt and the construction loan based on an effective discount rate. Although the Union Goal offtake agreement remains in place, Union Goal stopped taking shipments of chrome concentrate in June, 2022. Since July 1, 2022, chrome revenue has been recognized only through third party sales of chrome concentrate. The company also derives PGM revenue under a PGM offtake agreement with Impala Platinum Ltd. from further processing of tailings materials following the production of chrome concentrates. The retreatment project is expected to continue operating into late 2024 when the original CRM tailings from the tailings storage facility are expected to be fully processed. The company has initiated the restart of the Zandfontein underground section and is expected to process underground run-of-mine in May or June of 2024.

Outlook

The company's targets for 2024 are as follows:

• Resolve the outstanding receivables and related matters with Union Goal (continuing);
• Ramp up the Zandfontein underground operations (continuing);
• Confirm capital plans to support the full reopening of Zandfontein underground operations at the CRM from external or internal sources (continuing);
• Complete the second phase of the TSF capital works program and confirm the TSF dam space for new ROM tailings (continuing);
• Optimize Main plant Circuit B for underground operations (initiated);
• Renovate Circuit D to high-energy flotation cells for better ROM processing recovery rate to 82 per cent or higher (initiated);
• Advance the Mareesburg and Spitzkop project environmental work to complete the environmental impact assessment and other environmental studies and amendments (continuing);
• Continue prospecting and assessment work in relation to Zandfontein, Crocette and Kareespruit sections of the CRM and Kennedy's Vale and Spitzkop mines at the Eastern Limb of the Bushveld complex (continuing).

Eastplats completed a life-of-mine study and underground mine design for Zandfontein in 2022, and the board of directors supported carrying out the Zandfontein underground restart business plan, subject to final evaluation and financing arrangements. During 2024, the company is focusing on ramping up operations at the Zandfontein underground, subject to capital availability and profitability of its chrome operations. If successful, PGM production is expected to increase in 2024. There are no other expected changes to the business in 2024.

Care and maintenance will continue for the company's previously developed Eastern Limb projects for 2024. The company is actively looking at opportunities for its other assets, including continuing to explore options to utilize or monetize these assets.

The company has a primary listing on the Toronto Stock Exchange and a secondary listing on the JSE Ltd.

The company has filed the following documents, under the company's profile on SEDAR+:

• Audited consolidated financial statements for the fiscal year ended Dec. 31, 2023;
• Management's discussion and analysis for the fiscal year ended Dec. 31, 2023;
• Annual information form at Dec. 31, 2023.

The audited consolidated financial statements for the fiscal year ended Dec. 31, 2023, are available for download at the company's website and are also available on the JSE website.

About Eastern Platinum Ltd.

Eastplats owns directly and indirectly a number of platinum group metal and chrome assets in the Republic of South Africa. All of the company's properties are situated on the Western Limb (Crocodile River mine) and Eastern Limb (Kennedy's Vale, Spitzkop and Mareesburg) of the Bushveld complex, the geological environment that hosts approximately 80 per cent of the world's platinum-group-metal-bearing ore.

Operations at the Crocodile River mine currently include remining and processing its tailings resource from the Barplats Zandfontein tailings dam and mining and processing ore from the Zandfontein underground section to produce both PGM and chrome concentrates.

We seek Safe Harbor.