Rights offering2020-12-11 02:24 ET - News Release Mr. Rowland Wallenius reports EASTERN PLATINUM LIMITED ANNOUNCES RIGHTS OFFERING IN ORDER TO PURSUE GROWTH OPPORTUNITIES Eastern Platinum Ltd. has arranged an offering to its shareholders of rights to acquire common shares of the company at the close of business on the record date of Dec. 18, 2020, on the basis of one right for each common share held. Each right will entitle the holder to subscribe for one common share of the company upon payment of the subscription price of 32 cents or 3.77136 South African rand (based on the applicable exchange rate as defined in the rights offering circular) per common share. Shareholders who fully exercise their rights under the basic subscription privilege will also be entitled to subscribe for additional common shares, on a pro rata basis, if available as a result of unexercised rights prior to the expiry time of the rights offering. The rights will be listed and posted for trading on the Toronto Stock Exchange under the symbol ELR.RT on a when issued basis, and the Johannesburg Stock Exchange (the JSE) under the symbol EPSN at 9 a.m. SAST on Dec. 15, 2020. The rights offering will close at 12 p.m. in South Africa and 2 p.m. Vancouver time/5 p.m. Toronto time on Jan. 22, 2021, after which time unexercised rights will be void and of no value. The rights will be issued only to shareholders on the record date who are resident in a province or territory of Canada or in South Africa. Shareholders will be presumed to be resident in the place shown on the corporate share registry or securities register (as the case may be), unless the contrary is shown to the company's satisfaction. Neither the offering notice (defined below), nor the rights offering circular (defined below) is to be construed as an offering of the rights, and the common shares issuable upon exercise of the rights are not offered for sale in any jurisdiction outside of the eligible jurisdictions, including in the United States, or to any shareholders who are resident in any jurisdiction other than the eligible jurisdictions. Details of the rights offering will be set out in the rights offering notice and rights offering circular, which will be available from today under the company's profile at SEDAR and on the company's website. The company currently has 100,639,032 common shares issued. If all rights issued under the rights offering are validly exercised, an additional 100,639,032 common shares will be issued. The company is pleased to provide all the existing shareholders of Eastplats an opportunity to directly finance the capital investment required to take advantage of the proposed opportunities. The company intends to use the net proceeds of the rights offering, subject to the results of the amount raised, on capital projects (focused on platinum group metals (PGM) opportunities) expected to be completed during 2021 and, if sufficient funds are raised, on secondary projects, which are expected to begin in 2021, but which are not expected to be completed until the following year. The company forecasts it has sufficient working capital to continue with its current operations in 2021, subject to the retreatment project option and loan assessment occurring in 2022. The company expects to use the net proceeds from the rights offering to commence and/or complete, subject to the net proceeds from the rights offering, the following: Upgrades and repairs to the Zandfontein underground shaft and the rock winder to ensure they are available for PGM operations; Purchase and install filter press and additional standby pumps for the PGM circuit D operations, which are intended to stabilize and enhance the PGM recovery and sales from circuit D; Refurbishment of the existing main PGM facility (circuit 1) to increase the capacity and recovery opportunity of PGM recovery and sales; Mareesburg project environmental work following the completion of the environmental impact assessment (EIA); Prospecting and assessment work in relation to Zandfontein, Crocette and Spitzkop orebodies; Feasibility and assessment work in regard to a vertical furnace and pelletizer of chrome concentrate; Refurbishment of the existing main PGM facility (circuit 2) to further increase the capacity and recovery opportunity of PGM recovery and sales; Crocodile River mine underground assessment, including all chrome recovery activities in relation to the retreatment project; Zandfontein underground start-up investment; Mareesburg project start-up, infrastructure and buildout, subject to environmental and economic confirmation; Additional feasibility and EIA work on the various mining rights; Capital requirements for care and maintenance, working capital, and general and administrative costs. Shareholders holding common shares listed on the Toronto Stock Exchange The notice of rights offering and accompanying rights certificate will be mailed to each shareholder of the company resident in the provinces and territories of Canada as at the record date. Registered shareholders who wish to exercise their rights must forward the completed rights certificate, together with the applicable funds, to the rights agent, Computershare Investor Services Inc., on or before the expiry time. Shareholders who own their common shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary. Each ineligible holder will be sent a letter describing how ineligible holders may, in the company's discretion, participate in the rights offering, provided such ineligible holder satisfies the company that, among other things, the distribution to and exercise by such ineligible holder of the rights in the rights offering: (i) are not unlawful; and (ii) are exempt from any prospectus or similar filing requirement under the laws applicable to such ineligible holder or the laws of such ineligible holder's place of residence and do not require obtaining any approvals of a regulatory authority in such ineligible holder's place of residence. The notice to ineligible shareholders will have attached a form of exempt purchaser status certificate to this effect. Brokers cannot exercise the rights on behalf of beneficial ineligible holders of common shares, unless the ineligible holder has completed an exempt purchaser status certificate and has provided same to the company through the applicable broker. Shareholders holding common shares listed on the JSE Eligible holders of certificated common shares will be sent a form of instruction in respect of their letters of allocation. Eligible holders of certificated common shares who exercise their rights must complete the form of instruction in accordance with the instructions contained therein and lodge it, together with the amount due in rand, with the Link Market Services South Africa Pty. Ltd. on or before the expiry time. Eligible holders of dematerialized common shares who wish to exercise their rights must notify their CSDP or broker of their acceptance of the offering in the manner and time stipulated in their custody agreement with their CSDP or broker. Ineligible holders of certificated common shares will be sent a letter advising them that their letters of allocation will be issued to, and held on their behalf by, the JSE Transfer Secretaries, and they will be sent an exempt purchaser status certificate. The exempt purchaser status certificate will set out the conditions required to be met, and procedures that must be followed, for such ineligible holders to participate in the offering. CSDPs or brokers cannot follow the rights in respect of ineligible holders of dematerialized common shares, unless the ineligible holder has completed an exempt purchaser status certificate and has provided same to the JSE Transfer Secretaries on or prior to Jan. 13, 2021 (ineligible holders must confirm the provision of the exempt purchaser status certificate to their CSDP or broker). After Jan. 13, 2021, ineligible holders should instruct their CSDPs or brokers to attempt to sell their rights for the account of such holders and to deliver any proceeds of sale to such holders or allow their rights to lapse. The form of exempt purchaser status certificate has been sent to ineligible holders (or their CSDP or broker) and will be available from the JSE Transfer Secretaries upon request, which can be contacted at 27-0-861-472-644 (local) or 27-11-029-0112 (international). General A copy of the notice of rights offering, the rights offering circular and the notice to ineligible shareholders is available under the company's profile on SEDAR and on the company's