EASTERN PLATINUM LIMITED SECURES ADDITIONAL CREDIT FACILITY

Eastern Platinum Limited has secured a new C$2,000,000 credit facility from Ka An Development Co. Limited, an insider and related party. This addition brings the company’s total available credit facilities to C$4,000,000, combining the new facility with prior facilities established on Feb 6, 2026, and Nov 14, 2025. The facility carries a 10.25% annual interest rate, features a six-month maturity, and includes a 15.375% penalty rate for overdue payments.

Proceeds from the transaction are strictly designated as working capital to support the ramp-up of underground production tonnages at the Crocodile River Mine. Management reaffirmed its target to increase output at the Zandfontein underground mine to 70,000 tonnes of run-of-mine (RoM) ore per month by the end of 2026. The transaction is classified as a related party transaction under Multilateral Instrument 61-101, relying on exemptions from valuation and minority shareholder approval.

Eastern Platinum Limited (ELR) announced a C$2M financing update, a move widely anticipated given the company’s severe cash crunch, which left it with just $73k on hand and a $58.4M working capital deficit. The injection serves to extend the company's operating runway by six months but does not alter its business model, mine life, or long-term net asset value.

Following the May 14 earnings print, the market reacted negatively, with the stock price dropping approximately 31%. This decline suggests investors view the financing as a stopgap measure rather than a fundamental turnaround, with the current share price reflecting continued liquidity stress.

Eastern Platinum Limited is a Canadian-listed mining company with assets in South Africa’s Bushveld Complex. Its Crocodile River Mine (CRM) is located on the Western Limb, approximately 70km northwest of Johannesburg, and features active underground UG2 production. The Kennedy’s Vale and Spitzkop operations are situated on the Eastern Limb, roughly 350km northeast of Johannesburg, and are currently in care and maintenance with an opencast desktop study underway. Additionally, the Mareesburg project, also on the Eastern Limb, is in development with a feasibility study pending the completion of an environmental impact assessment.