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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (10357)	4/2/2002 10:54:00 AM
From: rolatzi	Read Replies (1) \| Respond to of 36161

Stillwater Confirms Ore Reserve Estimates COLUMBUS, Mont., April 2 /PRNewswire-FirstCall/ -- STILLWATER MINING COMPANY (NYSE: SWC - news) announced today that it is engaged in discussions with the Securities and Exchange Commission concerning the Company's methodology for calculating its probable ore reserves. The Company's proven reserves are not affected by this issue. The SEC has informed the Company that it believes the Company's methodology for determining probable reserves should be revised in order to be in greater conformity with the SEC's interpretation of industry standards. The Company's ore reserves have been reviewed since 1994 by Behre Dolbear & Company, independent consultants, who are experts in mining, geology and ore reserve determination. Behre Dolbear & Company has reaffirmed the appropriateness of the Company's methodology. Moreover, in light of the SEC discussions, Behre Dolbear & Company retained another independent consultant to express an independent view, and such consultant has confirmed Behre Dolbear & Company's opinion and the Company's ore reserve estimation methodology. The Company intends to vigorously defend its position on reserve methodology and will pursue all avenues of appeal. Francis R. McAllister, Chairman and Chief Executive Officer of the Company, said, ``The discussions with the SEC arose in connection with its review of the Company's registration statement filed in December 2001. The Company has used the same reserve methodology since going public in 1994, which has consistently demonstrated the ability to estimate proven and probable reserves. We believe, and a second independent consultant has now concurred, that our methodology is in accordance with SEC guidelines. In addition, 16 years of actual mining experience firmly supports the estimation methods employed.'' The Company's audited financial statements for the year ended December 31, 2001, contained in its Form 10-K filed with the SEC yesterday, reflect the Company's position on its reserves. If the Company is not successful in its position, it could lead to a downward revision in its reserves which, in turn, would result in an adjustment to net income for the year 2001 and possibly to a restatement of prior years results. There can be no assurance as to the outcome of this issue with the SEC and it is not possible to quantify the amount of any potential adjustment, if any, until the matter is resolved with the SEC; however, any such adjustment, if required, could be material. While the Company is in compliance with its credit agreement, an adverse decision with respect to the Company's reserve methodology could result in violations of, or a default under, the credit agreement.