Stillwater Mining Company Reports First Quarter Earnings

STILLWATER MINING COMPANY (NYSE:SWC)(TSX: SWC.U)

• 
  Consolidated net income attributable to common stockholders of $14.6
  million or $0.12 per diluted share
  
• 
  First quarter mine production of 127,100 PGM ounces ahead of plan
  
• 
  Recycling volume of 154,200 ounces sets Company quarterly record
  
• 
  Three Montana expansion projects continue to make significant progress
  

Stillwater Mining Company today reported consolidated net income
attributable to common stockholders for the 2013 first quarter of $14.6
million, or $0.12 per diluted share. Total revenues for the first
quarter were $250.6 million. Consolidated net income attributable to
common stockholders reported for the 2012 first quarter was $5.9
million, or $0.05 per diluted share on revenues of $203.1 million.

Commenting on the Company's 2013 first quarter results, Frank
McAllister, the Company's Chairman and Chief Executive Officer, stated,
'The first quarter of 2013 has provided an excellent start to the year
for Stillwater Mining. Production from our Montana mines exceeded plan
with a run rate ahead of our 500,000 ounce annual guidance, recycling
volumes for the quarter set a new Company record, total cash costs per
ounce were lower than our guidance, and our teams continue to be on
track at our three Montana growth projects. Overall, the Company′s
operations are better positioned than ever before in its 26 year
operating history. In addition to operational strength, the Company is
on firm financial footing, with liquidity sufficient to ensure we will
be able to fund our PGM growth projects and should withstand any
short-term volatility in PGM prices. Despite a drop in most metal prices
during early April, the fundamentals for palladium remain robust. Demand
for this precious metal continues to grow in the face of some severe
supply constraints, and Stillwater is in an enviable position to benefit
from these fundamentals.?

The Company's mines produced a total of 127,100 ounces of palladium and
platinum during the first quarter of 2013, a 5.2% increase from the
120,800 ounce production in the first quarter of 2012. The increase in
ounces produced between 2012 and 2013 was driven by the selection of
developed mining stopes available from period to period, typical
variability in mining production, the normal result of changes in mining
conditions.

First quarter 2013 revenues from sales of mined production (including
by-products) totaled $128.3 million, up from $116.7 million in the same
period last year. Combined sales realizations increased during the first
quarter of 2013 for mined palladium and platinum ounces, averaging $926
per ounce, an increase from the $875 per ounce realized in the first
quarter of 2012. This combined improvement in price and production, if
sustained, would equate to a benefit of about $12 million to the
Company′s quarterly revenues. The total quantity of mined palladium and
platinum sold increased to 130,400 ounces in the first quarter of 2013,
compared to the 123,000 ounces sold during the same period in 2012.

Total cash costs per mined ounce (a non-GAAP measure defined below)
averaged $523 in the first quarter of 2013, compared to total cash costs
of $514 per ounce for the first quarter of 2012. The increase is
primarily the result of the ever-expanding underground mining
operations, general wage and other cost inflation and the priority given
to the new-miner training programs. Based on results for the first
quarter and projections for the remainder of the year, the Company is
maintaining its full-year cash cost guidance of $560 per mined ounce.

The total recycled ounces of 154,200 for the first quarter of 2013 set a
new quarterly record for the Company and were 15.5% more than the
previous quarterly high of 133,500 ounces in the third quarter of 2011.
It was up from the 107,300 ounces of palladium, platinum and rhodium
(including tolled ounces) recycled during the first quarter of 2012. The
increased volumes were primarily attributable to finding and adding new
recycling suppliers. Recycling sales volumes increased 42%, to 116,900
ounces in the first quarter of 2013, from 82,400 ounces in the first
quarter of 2012. Revenues from sales of purchased recycling materials
totaled $122.3 million in the 2013 first quarter, up from $86.3 million
in the same period last year. The Company's combined average realized
price for sales of recycled palladium, platinum and rhodium increased to
$1,043 per ounce in the first quarter of 2013 from $1,039 per ounce in
the first quarter of 2012.

Commenting further on the first quarter, Mr. McAllister added, 'Our
teams continue to make significant strides on our Montana development
projects. The 8,200-foot tunnel boring machine (TBM) drive associated
with the Graham Creek project at the East Boulder Mine is nearly
complete, with total advance of nearly 8,000 feet at the end of the
first quarter. Construction on one of the two ventilation raises to the
surface planned for this project has started and first production from
Graham Creek is expected in late 2014. At the Stillwater Mine,
construction on the Far West project, located in the lower west area,
commenced during the first quarter with work beginning on the extension
of the 3500 West rail level, which will be the primary haulage level for
this area. And at the Blitz project, on the eastern side of the
Stillwater Mine, the new TBM has now advanced 1,300 feet and the
conventional drift above it has driven about 1,800 feet of ramp and
infrastructure development to date. We are very pleased with the
progress on these projects, which are expected to provide sustainability
and future growth for our operations. Our capital expenditure guidance
for this year remains at $172.8 million, with almost 87% of that amount
focused on the existing Montana operations and these key growth projects.

'At our Marathon PGM-copper development in Canada, early indications
from the ongoing engineering work suggests the project remains
economically viable, at current metal prices, and even ?with the expected
adjustments to grade that we have discussed previously. We expect to
complete the engineering design as well as an updated economic
assessment during the second half of this year. In addition, the Company
is in the process of responding to information requests following the
submission of an Environmental Impact Statement (EIS) to the Canadian
authorities. These responses are expected to be submitted by the end of
this year's second quarter.

'The 2013 drilling season at the Altar project in Argentina is now
complete, one month ahead of schedule. We significantly scaled back
spending at Altar, with total exploration expenses and administrative
costs of $6.7 million for the first quarter, down approximately 44%
compared to $12.0 million in the first quarter last year. This year's
drill program included 20 drill holes (16 new drill holes and 4
extensions) totaling 11,100 meters, compared to the 70 drill holes
totaling 27,280 meters completed during the 2012 drilling season.
Overall drilling results have been favorable. These holes were designed
to test for horizontal and vertical extensions to the known mineralized
area at Altar.?

Mr. McAllister concluded, 'The J-M Reef is a unique, world-class
resource, but our most important asset is our people. Underground mining
requires highly developed skills and continuous attention to detail. I
would like to thank our teams for their ever-continuing efforts to
improve mining safety and efficiency. For the first quarter, the
Company's overall safety incidence rate, which is calculated as the
number of reportable injuries per 200,000 hours worked, was 3.3, higher
than the exceptionally low 1.5 rate for the first quarter last year. By
historical standards, the 2013 first quarter incidence rate of 3.3 would
be good safety performance, but we continue to focus on improving our
safety culture through our on-going commitment to the CORESafety
philosophy.?

Cash Flow and Liquidity

At March 31, 2013, the Company′s available cash was $203.1 million,
compared to $379.7 million at December ?31, 2012. If highly liquid
short-term investments are included with available cash, the Company′s
balance sheet liquidity totaled $462.1 million at March 31, 2013, a
decrease from $641.7 million at December ?31, 2012. Most of this decrease
was related to debt redemption during the first quarter. Of the
Company's current cash balance, $38.9 million is dedicated to the
Marathon project (and other related properties) and is unavailable for
other corporate purposes. Net working capital ? comprised of total
current assets (including available cash and short-term investments),
less current liabilities ? increased to $619.3 million at March 31,
2013, from $606.0 million at year end 2012.

Net cash provided by operating activities (which includes changes in
working capital) totaled $15.5 million in the first quarter of 2013,
compared to $15.1 million of cash provided in the first quarter of 2012.
However, cash provided from operations included working capital
requirements of $21.1 million in the first quarter of 2013, which
included significant growth in recycling inventories; in the first
quarter of 2012, working capital requirements totaled $6.1 million.
Capital expenditures were $29.4 million in the first quarter of 2013, up
from $22.7 million in the first quarter of 2012. Of the capital
expenditures for the quarter, $3.1 million was attributable to the major
development projects underway on the J-M Reef in Montana. The capital
spending budget for 2013 is $172.8 million, up from $116.6 million of
capital spending during 2012.

Outstanding debt at March 31, 2013 was $300.2 million, down from $461.1
million at December ?31, 2012. On March 15, 2013, the Company repaid
$164.3 million of its 1.875% convertible debentures. The Company′s
current debt balance includes $264.3 million outstanding in the form of
convertible debentures, $29.6 million of exempt facility revenue bonds
due in 2020, a capital lease of $6.0 million and $0.3 million for a
small installment land purchase.

First Quarter Results - Details

For the first quarter of 2013, the Company′s Stillwater Mine produced
92,600 ounces, an increase of 5.6% from the 87,700 ounces produced in
the first quarter of 2012. Production at the Company′s East Boulder Mine
of 34,500 ounces in the first quarter of 2013 reflected an increase from
the 33,100 ounces produced in the same quarter of 2012.

Costs of metals sold (before depletion, depreciation and amortization
expense) increased to $192.6 million in the first quarter of 2013 from
$158.1 million in the first quarter of 2012. Mining costs included in
costs of metals sold increased slightly to $75.7 million in the 2013
first quarter from $74.0 million in the 2012 first quarter. Recycling
costs, which primarily reflect the cost of acquiring spent catalytic
materials for processing, totaled $116.9 million in the first quarter of
2013, more than the $84.1 million reported in the first quarter of 2012.
The increase was due to higher volumes sold and the related higher
market value of the materials acquired for processing.

General and administrative ('G&A?) costs were $15.2 million in the first
quarter of 2013, up from the $12.5 million incurred during the same
period of 2012, due in part to higher legal and advisory fees.
Exploration expenses decreased to $6.0 million for the first quarter of
2013, of which almost all was attributable to the Altar copper-gold
project. Exploration expenses incurred during the first quarter of 2012
were $10.1 million. Marketing expenses declined to $1.7 million in the
2013 first quarter compared to $2.3 million in the same quarter of 2012.

Interest expense reported for the first quarters of 2013 and 2012 was
$6.7 million and $1.7 million, respectively. This increase is
principally the result of non-cash accretion of the debt discount
related to the new 1.75% convertible debentures that is charged to
earnings over the expected life of the convertible debentures. The
amount of these non-cash charges to earnings in the first quarter of
2013 was $3.8 million.

During the first quarter of 2013, the Company recorded a foreign
currency transaction gain of $4.2 million, primarily related to the
deferred tax liability recorded in association with the acquisition of
Peregrine Metals Ltd. The foreign currency transaction gain recorded for
the first quarter of 2012 was $2.9 million.

Reported consolidated net income attributable to common stockholders for
the first quarter of 2013 included, by business segment (before income
taxes), income of $37.5 million from mining operations, income of $6.0
million from recycling activities (including financing income), $0.9
million of costs associated with the Marathon properties, $1.2 million
of costs related to the Altar copper-gold project, and corporate costs
of $22.4 million. For the first quarter of 2013, the Company reported a
$4.9 million income tax provision. For the first quarter of 2012, the
consolidated net income attributable to common stockholders included, by
business segment (before income taxes), $28.3 million of income from
mining operations, $2.4 million income from recycling activities
(including financing income), $9.0 million of costs related to the Altar
copper-gold project, $3.6 million of costs associated with the Marathon
properties and corporate costs of $14.4 million. For the first quarter
of 2012, the Company reported a $2.3 million income tax benefit.

About Stillwater Mining Company

Stillwater Mining Company is the only U.S. producer of palladium and
platinum and is the largest primary producer of platinum group metals
outside of South Africa and the Russian Federation. The Company′s shares
are traded on the New York Stock Exchange under the symbol SWC and on
the Toronto Stock Exchange under the symbol SWC.U. Information on
Stillwater Mining can be found at its website: www.stillwatermining.com.

Some statements contained in this news release are forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and, therefore, involve uncertainties or risks that
could cause actual results to differ materially. These statements may
contain words such as 'desires,? 'believes,' 'anticipates,' 'plans,'
'expects,' 'intends,' 'estimates' or similar expressions. Such
statements also include, but are not limited to, comments regarding
expansion plans, costs, grade, production and recovery rates;
permitting; financing needs and the terms of future credit facilities;
exchange rates; capital expenditures; increases in processing capacity;
cost reduction measures; safety; timing for engineering studies;
environmental permitting and compliance; litigating; labor matters; and
the palladium, platinum, copper and gold market. These statements are
not guarantees of the Company's future performance and are subject to
risks, uncertainties and other important factors that could cause its
actual performance or achievements to differ materially from those
expressed or implied by these forward-looking statements. Additional
information regarding factors that could cause results to differ
materially from management's expectations is found in the section
entitled 'Risk Factors' in the Company's 2012 Annual Report
on Form 10-K, in its quarterly Form 10-Q filings, and in corresponding
filings with Canadian securities regulatory authorities.

The Company intends that the forward-looking statements contained herein
be subject to the above-mentioned statutory safe harbors. Investors are
cautioned not to rely on forward-looking statements. The Company
disclaims any obligation to update forward-looking statements.

Reconciliation of Non-GAAP Measures to Costs of Revenues

The Company utilizes certain non-GAAP measures as indicators in
assessing the performance of its mining and processing operations during
any period. Because of the processing time required to complete the
extraction of finished PGM products, there are typically lags of one to
three months between ore production and sale of the finished product.
Sales in any period include some portion of material mined and processed
from prior periods as the revenue recognition process is completed.
Consequently, while costs of revenues (a GAAP measure included in the
Company′s Consolidated Statements of Comprehensive Income) appropriately
reflects the expense associated with the materials sold in any period,
the Company has developed certain non-GAAP measures to assess the costs
associated with its producing and processing activities in a particular
period and to compare those costs between periods.

While the Company believes that these non-GAAP measures may also be of
value to outside readers, both as general indicators of the Company′s
mining efficiency from period to period and as insight into how the
Company internally measures its operating performance, these non-GAAP
measures are not standardized across the mining industry and in most
cases will not be directly comparable to similar measures that may be
provided by other companies. These non-GAAP measures are only useful as
indicators of relative operational performance in any period, and
because they do not take into account the inventory timing differences
that are included in costs of revenues, they cannot meaningfully be used
to develop measures of earnings or profitability. A reconciliation of
these measures to costs of revenues for each period shown is provided as
part of the following tables, and a description of each non-GAAP measure
is provided below.

Total Costs of Revenues: For the Company as a whole, this measure
is equal to total costs of revenues, as reported in the Consolidated
Statements of Comprehensive Income. For the Stillwater Mine, the East
Boulder Mine, and other PGM activities, the Company segregates the
expenses within total costs of revenues that are directly associated
with each of these activities and then allocates the remaining facility
costs included in total cost of revenues in proportion to the monthly
volumes from each activity. The resulting total costs of revenues
measures for Stillwater Mine, East Boulder Mine and other PGM activities
are equal in total to total costs of revenues as reported in the
Company′s Consolidated Statements of Comprehensive Income.

Total Production Costs (Non-GAAP): Calculated as total costs of
revenues (for each mine or combined) adjusted to exclude gains or losses
on asset dispositions, costs and profit from recycling activities,
revenues from the sale of mined by-products and timing differences
resulting from changes in product inventories. This non-GAAP measure
provides a comparative measure of the total costs incurred in
association with production and processing activities in a period, and
may be compared to prior periods or between the Company′s mines.

When divided by the total tons milled in the respective period, Total
Production Cost per Ton Milled (Non-GAAP) - measured for each mine
or combined - provides an indication of the cost per ton milled in that
period. Because of variability of ore grade in the Company′s mining
operations, production efficiency underground is frequently measured
against ore tons produced rather than contained PGM ounces. Because ore
tons are first actually weighed as they are fed into the mill, mill feed
is the first point at which production tons are measured precisely.
Consequently, Total Production Cost per Ton Milled (Non-GAAP) is a
general measure of production efficiency, and is affected both by the
level of Total Production Costs (Non-GAAP) and by the volume of tons
produced and fed to the mill.

When divided by the total recoverable PGM ounces from production in the
respective period, Total Production Cost per Ounce (Non-GAAP) -
measured for each mine or combined - provides an indication of the cost
per ounce produced in that period. Recoverable PGM ounces from
production are an indication of the amount of PGM product extracted
through mining in any period. Because extracting PGM material is
ultimately the objective of mining, the cost per ounce of extracting and
processing PGM ounces in a period is a useful measure for comparing
extraction efficiency between periods and between the Company′s mines.
Consequently, Total Production Cost per Ounce (Non-GAAP) in any period
is a general measure of extraction efficiency, and is affected by the
level of Total Production Costs (Non-GAAP), by the grade of the ore
produced and by the volume of ore produced in the period.

Total Cash Costs (Non-GAAP): This non-GAAP measure is calculated
by excluding the depreciation and amortization and asset retirement
costs from Total Production Costs (Non-GAAP) for each mine or combined.
The Company uses this measure as a comparative indication of the cash
costs related to production and processing in any period.

When divided by the total tons milled in the respective period, Total
Cash Cost per Ton Milled (Non-GAAP) - measured for each mine or
combined - provides an indication of the level of cash costs incurred
per ton milled in that period. Because of variability of ore grade in
the Company′s mining operations, production efficiency underground is
frequently measured against ore tons produced rather than contained PGM
ounces. Because ore tons are first weighed as they are fed into the
mill, mill feed is the first point at which production tons are measured
precisely. Consequently, Total Cash Cost per Ton Milled (Non-GAAP) is a
general measure of production efficiency, and is affected both by the
level of Total Cash Costs (Non-GAAP) and by the volume of tons produced
and fed to the mill.

When divided by the total recoverable PGM ounces from production in the
respective period, Total Cash Cost per Ounce (Non-GAAP) -
measured for each mine or combined - provides an indication of the level
of cash costs incurred per PGM ounce produced in that period.
Recoverable PGM ounces from production are an indication of the amount
of PGM product extracted through mining in any period. Because
ultimately extracting PGM material is the objective of mining, the cash
cost per ounce of extracting and processing PGM ounces in a period is a
useful measure for comparing extraction efficiency between periods and
between the Company′s mines. Consequently, Total Cash Cost per Ounce
(Non-GAAP) in any period is a general measure of extraction efficiency,
and is affected by the level of Total Cash Costs (Non-GAAP), by the
grade of the ore produced and by the volume of ore produced in the
period.

Total Operating Costs (Non-GAAP): This non-GAAP measure is
derived from Total Cash Costs (Non-GAAP) for each mine or combined by
excluding royalty, tax and insurance expenses from Total Cash Costs
(Non-GAAP). Royalties, taxes and insurance costs are contractual or
governmental obligations outside of the control of the Company′s mining
operations, and in the case of royalties and most taxes, are driven more
by the level of sales realizations rather than by operating efficiency.
Consequently, Total Operating Costs (Non-GAAP) is a useful indicator of
the level of production and processing costs incurred in a period that
are under the control of mining operations.

When divided by the total tons milled in the respective period, Total
Operating Cost per Ton Milled (Non-GAAP) - measured for each mine or
combined - provides an indication of the level of controllable cash
costs incurred per ton milled in that period. Because of variability of
ore grade in the Company′s mining operations, production efficiency
underground is frequently measured against ore tons produced rather than
contained PGM ounces. Because ore tons are first actually weighed as
they are fed into the mill, mill feed is the first point at which
production tons are measured precisely. Consequently, Total Operating
Cost per Ton Milled (Non-GAAP) is a general measure of production
efficiency, and is affected both by the level of Total Operating Costs
(Non-GAAP) and by the volume of tons produced and fed to the mill.

When divided by the total recoverable PGM ounces from production in the
respective period, Total Operating Cost per Ounce (Non-GAAP) -
measured for each mine or combined - provides an indication of the level
of controllable cash costs incurred per PGM ounce produced in that
period. Recoverable PGM ounces from production are an indication of the
amount of PGM product extracted through mining in any period. Because
ultimately extracting PGM material is the objective of mining, the cost
per ounce of extracting and processing PGM ounces in a period is a
useful measure for comparing extraction efficiency between periods and
between the Company′s mines. Consequently, Total Operating Cost per
Ounce (Non-GAAP) in any period is a general measure of extraction
efficiency, and is affected by the level of Total Operating Costs
(Non-GAAP), by the grade of the ore produced and by the volume of ore
produced in the period.

INVESTORS:

Stillwater Mining Company

Mike Beckstead

406-373-8971

or

Innisfree
M&A Incorporated

Arthur Corzier / Jennifer Shotwell / Scott
Winter

212-750-5833

or

MEDIA:

Sard Verbinnen & Co

Dan
Gagnier / Michael Henson

212-687-8080