ANNUAL INFORMATION FORM
For the year ended December 31, 2024
DATED: March 28, 2025
CONTENTS
Contents ......................................................................................................................................................................... i
LIST OF FIGURES AND TABLES ......................................................................................................................... iii
PRELIMINARY NOTES ............................................................................................................................................ 4
Currency ............................................................................................................................................................... 4
Measurements ....................................................................................................................................................... 4
Definitions for Mineral Symbols .......................................................................................................................... 4
Forward-Looking Statements/Reserves ................................................................................................................ 4
GLOSSARY ................................................................................................................................................................. 7
CORPORATE STRUCTURE .................................................................................................................................. 10
Name and Incorporation .............................................................................................................................................. 10
Intercorporate Relationships ........................................................................................................................................ 11
GENERAL DEVELOPMENT OF THE BUSINESS ............................................................................................. 12
Operations 2022 to 2024 .............................................................................................................................................. 12
Three Year History ...................................................................................................................................................... 12
NARRATIVE DESCRIPTION OF THE BUSINESS ............................................................................................ 13
South African Mining Industry .................................................................................................................................... 14
Mining Rights and Mining Royalties in South Africa ................................................................................................. 15
Mining Rights ..................................................................................................................................................... 15
Mining Royalties ................................................................................................................................................. 17
Mining Rights of the Company ................................................................................................................................... 17
Eastern Limb ....................................................................................................................................................... 17
Western Limb ..................................................................................................................................................... 18
Mineral Properties ....................................................................................................................................................... 18
Material Properties .............................................................................................................................................. 18
Non-Material Properties ...................................................................................................................................... 54
RISK FACTORS ....................................................................................................................................................... 57
DIVIDENDS ............................................................................................................................................................... 72
DESCRIPTION OF CAPITAL STRUCTURE ....................................................................................................... 72
MARKET FOR SECURITIES ................................................................................................................................. 72
OUTSTANDING OPTIONS AND WARRANTS ................................................................................................... 73
DIRECTORS AND OFFICERS ............................................................................................................................... 73
Committees of the Board ............................................................................................................................................. 75
Corporate Cease Trade Orders or Bankruptcies .......................................................................................................... 75
Personal Bankruptcies ................................................................................................................................................. 76
Penalties or Sanctions .................................................................................................................................................. 77
CONFLICTS OF INTEREST .................................................................................................................................. 77
LEGAL PROCEEDINGS AND REGULATORY ACTIONS ............................................................................... 77
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS .................................... 79
TRANSFER AGENTS AND REGISTRAR ............................................................................................................ 80
MATERIAL CONTRACTS ..................................................................................................................................... 80
INTERESTS OF EXPERTS ..................................................................................................................................... 81
Auditors of the Company ............................................................................................................................................ 81
INFORMATION CONCERNING THE COMPANY'S AUDIT COMMITTEE AND EXTERNAL
AUDITOR .................................................................................................................................................................. 81
The Audit Committee's Charter .................................................................................................................................. 81
Composition of the Audit Committee .......................................................................................................................... 81
Relevant Experience .................................................................................................................................................... 81
Pre-Approval Policies and Procedures ........................................................................................................................ 82
External Auditor Service Fees (by Category) .............................................................................................................. 82
Audit Fees ........................................................................................................................................................... 83
Audit-Related Fees ............................................................................................................................................. 83
Tax Fees .............................................................................................................................................................. 83
All Other Fees ..................................................................................................................................................... 83
ADDITIONAL INFORMATION ............................................................................................................................. 83
SCHEDULE "A" ....................................................................................................................................................... 84
LIST OF FIGURES AND TABLES
Figure 1: Location of CRM ......................................................................................................................................... 20
Figure 2: CRM Mining and Prospecting Rights Areas ................................................................................................ 21
Figure 3: Location of the Project Area in Relation to the Bushveld Complex ............................................................ 23
Figure 4: Major Faults Within the Project Area .......................................................................................................... 24
Table 1: Geology of the UG2 in the Project Area ....................................................................................................... 24
Figure 5: Schematic Stratigraphic Section of the UG2 ................................................................................................ 25
Figure 6: Drillholes Distribution Across the Project Area ........................................................................................... 27
Table 2: Historical Laboratories Used ......................................................................................................................... 29
Table 3: Impala Laboratory Fire Assay Methodology ................................................................................................. 30
Table 4: Certified Grades for AMIS 006, 009 and 010 ............................................................................................... 30
Figure 7: QAQC Drillholes Distribution Across the Project Area .............................................................................. 31
Figure 8: Standard Analysis of the KA Series Drillholes ............................................................................................ 32
Figure 9: Standard Analysis of the BHCR Series Drillholes ....................................................................................... 32
Figure 10: Standard Analysis of the Z Series Drillholes ............................................................................................. 33
Figure 11: Standard Analysis of the All Series Drillholes ........................................................................................... 33
Figure 12: Sample Plan Digitization ............................................................................................................................ 35
Figure 13: Sampling and Instrumentation Positions for Metal Accounting ................................................................. 36
Figure 14: Historical CRM Plant Recovery ................................................................................................................. 37
Figure 15: Mining and Prospecting Rights 2022 with Exclusions from the Mineral Resource Declaration ............... 38
Table 5: Portion of the Mineral Resource Excluded due to RPEEE ............................................................................ 38
Table 6: Measured and Indicated Mineral Resource of the Mining Cut at a 1.7 g/t 4E Cut-off as at January 1, 202239
Table 7: Inferred Mineral Resource of the Mining Cut at a 1.7 g/t 4E Cut-off as at January 1, 2022 ......................... 39
Table 8: Prill Split Percentages .................................................................................................................................... 39
Table 9: TSF Mineral Resource with No Cut-off Applied (SRK 2017) ...................................................................... 40
Figure 16: Tonnage Profile 2024 ................................................................................................................................. 41
Table 10: Updated Resources as at December 31, 2024 .............................................................................................. 41
Table 11: Conversion Factors ...................................................................................................................................... 42
Table 12: CRM Underground Operations Mineral Reserve Estimation as at January 1, 2022 .................................... 42
Table 13: CRM Underground Operations Mineral Reserves as at December 31, 2024 .............................................. 42
Table 14: Grade Variance ............................................................................................................................................ 43
Table 15: Conversion Factors ...................................................................................................................................... 43
Table 16: CRM TSF Re-mining Operations Mineral Reserve Estimate as at January 1, 2022 ................................... 43
Table 17: Processing and Metallurgical Factors on Recoverability, as at January 1, 2022 ......................................... 46
Table 18: Project Cost Indicators ................................................................................................................................ 48
Table 19: Underground and Plant Capital Cost Breakdown ........................................................................................ 49
Figure 17: Capital Cash Flow Schedule ...................................................................................................................... 50
PRELIMINARY NOTES
The audited consolidated financial statements of the Company have been prepared using accounting policies prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). All financial information in this Annual Information Form ("AIF") is prepared in accordance with IFRS.
This AIF should be read in conjunction with the Company's audited annual consolidated financial statements and notes thereto, as well as with the management's discussion and analysis ("MD&A") for the year ended December 31, 2024.
CURRENCY
The Company's presentation currency is U.S. dollars. Monetary amounts in the financial statement, the MD&A and in this AIF are in thousands of U.S. dollars ("$" or "U.S. dollars"), except when indicated as thousands of Canadian dollars ("Cdn$" or "Canadian dollars"), thousands of South African Rand ("ZAR" or "Rand") and except for per share amounts, per tonnage amounts or as otherwise indicated. The Company's costs are incurred principally in South African Rand and Canadian dollars.
MEASUREMENTS
Conversion of metric units into imperial equivalents is as follows:
Metric Units | Multiply by | Imperial Units |
Hectares | 2.471 | = acres |
Metres | 3.281 | = feet |
Kilometres | 0.621 | = miles (5,280 feet) |
Grams | 0.032 | = ounces (troy) |
Tonnes | 1.102 | = tons (short) (2,000 lbs) |
grams/tonne | 0.029 | = ounces (troy)/ton |
DEFINITIONS FOR MINERAL SYMBOLS
Pt - Platinum; Pd - Palladium; Rh - Rhodium; Os - Osmium; Ir - Iridium; Ru - Ruthenium; Au - Gold; Cu - Copper; Ni - Nickel and Cr - Chromium.
FORWARD-LOOKING STATEMENTS/RESERVES
This AIF contains certain "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. This AIF contains forward-looking statements, pertaining to, among other things, the following: the expectations and beliefs of Management; the long-term price of PGM, chrome and exchange rates; the estimation of mineral reserves and resources, and the realization of mineral reserve estimates in future expected production; anticipated future capital and operating costs; anticipated future potential joint ventures and business combinations; possible future dividends; the potential of the Company's properties and expectations of growth; the life of the Retreatment Project; estimated costs and timelines of production; estimated operations; estimated timelines for revenue production; estimated timelines and results of test work and feasibility studies; estimated economic assessment; conclusions of assessments of the Company's projects; the impact of Mining Charter 2018; potential non-compliance with the MPRDA and the corresponding impact; the BEE Buyout Agreements and all related transactions; anticipated social and community engagement; expectations regarding current and potential litigation; fluctuations in currency markets; the future funding of the Company's projects; the future development of the Company's projects; the likelihood of re-commencing operations at certain of the Company's mines; economic, political and regulatory conditions; the Company's expectations regarding regulation changes in South Africa; the Company's intention to conduct business in certain jurisdictions; future hiring and contracting for the Company; the Company's intentions in defending litigation proceedings; critical accounting judgments made by the Company and the Company's plans for its properties.
With respect to the forward-looking statements contained in this AIF, assumptions have been made regarding, among other things: compliance with the applicable BEE requirements throughout the relevant time under the "once empowered, always empowered" principle under the applicable South African mining laws, as stated in September 2021 by the High Court (Gauteng Division, Pretoria) in South Africa as a result of a court challenge by the Minerals Council of South Africa; the resolution of the black economic empowerment requirements; the price of PGM and chrome; fluctuations in currency markets; inflation; the regulatory framework in the jurisdictions that the Company conducts its business; operating cost; revenue and receivables collection; the accuracy of certain reserves analysis and the Company's ability to obtain financing on acceptable terms and litigation outcome.
Forward-looking statements are subject to all of the risks and uncertainties normally incident in the mining and development of PGM and chrome that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks include, but are not limited to: the risk of fluctuations in the assumed exchange rates of currencies that directly impact the Company, such as the Canadian dollar, Rand and U.S. dollar; the risk of fluctuations in the assumed prices of PGM, chrome, and other commodities; the risk of changes in government legislation, taxation, controls, regulations and political or economic developments in 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, assumed quantities or grades of reserves; the risk of higher than expected capital costs; the risk of the unavailability of appropriate funding arrangements; the risk of infrastructure failure; risks associated with breaches of sensitive information and technology; risks associated with the loss of key employees; risks due to the highly competitive nature of the industry; and certain other known and unknown risks detailed from time to time in the Company's public disclosure documents, copies of which are available on the Company's SEDAR+ profile atwww.sedarplus.ca.Many of these uncertainties 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 the Company. Readers are cautioned that forward-looking statements are not guarantees of future performance.
Although the Company believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. The Company's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this AIF are expressly qualified by this cautionary statement.
GLOSSARY
The following definitions apply throughout this document, unless the context otherwise requires:
"Afrimineral" means Afrimineral Holdings (Pty) Ltd.;
"AMSL" means above mean sea level;
"Barplats" means Barplats Mines (Pty) Limited, a company incorporated in South Africa;
"BCSC" means the British Columbia Securities Commission;
"BEE" means Black Economic Empowerment in South Africa, which seeks to increase the ownership and management of South Africa's resources by historically disadvantaged persons;
"BIL" means Barplats Investments (Pty) Limited, a company incorporated in South Africa;
"Bushveld Complex or BIC" means the Bushveld Igneous Complex in South Africa;
"Board" or "Board of Directors" means the board of directors of the Company for the time being, including a duly constituted committee of the directors;
"BRC" means bottom of reef contact;
"BVI" means the British Virgin Islands;
"Chrome Circuit" means the chrome processing circuit, related technology and knowhow financed and sourced by Union Goal for the Retreatment Project;
"CL" means chromitite layer;
"Company" or "Eastplats" means Eastern Platinum Limited, a company existing under the Business Corporations Act (British Columbia);
"Coronavirus" means Coronavirus disease or COVID-19 which is an infectious disease caused by a new virus. The disease causes respiratory illness (like the flu) with symptoms such as a cough, fever, and in more severe cases, difficulty breathing;
"CRM" means the Crocodile River Mine, comprising the Company's PGM mineral rights located on the eastern portion of the western limb of the BIC, in the North West Province, South Africa;
"DMRE" means the Department of Mineral Resources and Energy of South Africa;
"EIA" means Environmental Impact Assessment;
"Elgin" means Elgin Resources Inc., a company which was incorporated in Alberta and continued in British Columbia under the Business Corporations Act (British Columbia);
"Former Management" means the Board of Directors and Officers prior to July 5, 2016, specifically the former Chief Executive Officer ("CEO") David Cohen and the former Chief Financial Officer ("CFO") Horng Dih Lee;
"Gubevu" means Gubevu Consortium Investment Holdings (Proprietary) Limited, a private company incorporated in South Africa which holds 25.01% of the issued share capital of BIL;
"HDSAs" means historically disadvantaged South Africans;
"Impala" means Impala Platinum Limited;
"Implats" means Impala Platinum Holdings Ltd.;
"Jonpol" means Jonpol Explorations Limited, a company which was formed under the laws of the Province of Ontario by articles of amalgamation dated August 31, 1989;
"JSE" means the Johannesburg Stock Exchange in South Africa;
"Kennedy's Vale Project" means the Company's PGM prospecting and mineral rights to the Kennedy's Vale Project located on the eastern limb of the BIC, in Limpopo Province, South Africa;
"LOM" means life of mine;
"Mareesburg Project" means the PGM mineral rights to the Company's Mareesburg PGM deposit located on the eastern limb of the BIC in Limpopo Province, South Africa;
"Merensky Reef" means the predominantly sulfide-rich pyroxenite deposit located in the BIC in Limpopo Province, South Africa;
"Minerals Act" means the South African Minerals Act, 1991;
"Minxcon" means Minxcon (Pty) Ltd.;
"MPRDA" means the South African Mineral and Petroleum Resources Development Act, 2002;
"MPRRA" means the South African Mineral and Petroleum Royalty Act, 2008;
"Management" means the Board of Directors and Officers following the annual general meeting of the Company held on June 18, 2024;
"PGE" means platinum group elements, consisting of platinum, palladium and rhodium;
"PGM Circuits" means collectively, PGM Circuit D and PGM Main Circuit B;
"PGM Circuit D" means the small-scale PGM circuit D (previously the scavenger plant circuit) located at CRM and refurbished in Q1 2020;
"PGM Main Circuit B" means the PGM circuit B in the main plant, which was commissioned in Q4 2021;
"PGM(s)" means platinum group metals, consisting of platinum, palladium, rhodium, iridium, ruthenium and osmium;
"Projects" means the CRM, the Kennedy's Vale Project, the Spitzkop Project and the Mareesburg Project;
"Restated and Revised Retreatment Project Agreements" means the March 10, 2021 updated Retreatment Project agreements entered into between Eastern Platinum Limited, Barplats Mines (Pty) Limited and Union Goal which include the revised and restated framework agreement, revised and restated offtake agreement, revised and restated Eastplats loan agreement and the revised and restated Barplats equipment and chrome plant agreement;
"Retreatment Project" means the construction, re-mining and processing of the tailings resource, and the subsequent offtake of chrome concentrate from, the Barplats Zandfontein UG2 tailings facility located at the CRM in South Africa;
"ROM" means run-of-mine;
"Spitzkop Project" or "Spitzkop" means the Company's PGM prospecting and mineral rights to the Spitzkop PGM deposit located on the eastern limb of the BIC in Limpopo Province, South Africa;
"Spitzplats" means Spitzkop Platinum (Pty) Ltd., a South African corporation that holds a 50 percent joint venture interest in the Spitzkop Project with the Company;
"TRC" means top reef contact;
"TSF" means Tailings Storage Facility;
"TSX" means the Toronto Stock Exchange;
"UCZ" means Upper Critical Zone;
"UG Agreements" means the agreements entered into between Eastern Platinum Limited, Barplats Mines (Pty) Limited and Union Goal on or about March 1, 2018, including the framework agreement, offtake agreement, Eastplats loan agreement and the Barplats equipment and chrome plant agreement, which collectively provide for construction, re-mining and processing of the tailings resource, and the subsequent offtake of chrome concentrate from the Retreatment Project located at the CRM;
"UG2" or Upper Group 2, means the chromitite reef deposit located in the BIC in Limpopo Province, South Africa;
"Union Goal" means Union Goal Offshore Solution Limited;
"WHIMS" means Wet High Intensity Magnetic Separation;
"Zandfontein Underground" means the core section of the CRM; and
"ZAR" refers to South African Rand, the lawful currency of South Africa.