COLUMBUS, MT -- (Marketwire) -- 07/22/09 -- STILLWATER MINING COMPANY (NYSE: SWC) was advised earlier today that the bankruptcy court has approved a petition from General Motors Corporation ("GM") to reject the existing Palladium & Rhodium Supply Agreement between GM and Stillwater Mining Company (the "Company"), with retroactive effect from July 7, 2009. The Company had filed an objection to the GM petition with the bankruptcy court, but after a hearing this morning the judge upheld the GM request.

Commenting on the bankruptcy court's decision, the Company's Chairman and CEO, Francis R. McAllister, noted, "We clearly are very disappointed with this outcome and are still assessing what additional avenues may be open to us in this matter. At the same time, we are extremely appreciative of the generous expressions of support we have received from so many in our communities, our industry, from Governor Schweitzer and other leaders in Montana and from the far corners of our nation. A special thank you to all for your kind efforts in our behalf.

"As I had commented previously, while the GM contract has been very beneficial to us in view of today's relatively low PGM prices, I believe in the current environment the Company has adequate financial resources to absorb the effect of this loss. Despite the absence of the GM agreement, the Company will still be able to sell all of its mine production into the market, although obviously we will no longer enjoy the benefit of the GM pricing floors. I noted earlier that loss of the GM agreement will likely cost the Company, at current PGM prices, between $5 and $10 million annually. However, the Company's cash position remains strong, and we have made substantial progress in recent months toward our goal of becoming a safe, low-cost operator in our industry. While losing our GM supply agreement certainly increases the Company's exposure to any sustained decline in PGM prices, I believe the longer-term fundamentals of our industry are favorable and our competitive position is strengthening."

Expanding on the Company's recent performance, Mr. McAllister added, "Although the Company's second-quarter financial results are not yet finalized, I am pleased to report that mine production in the quarter of about 137,700 platinum and palladium ounces was substantially better than planned and is trending well ahead of our mine production guidance of 495,000 ounces for the year. Cost reduction measures also appear to be taking effect at both mines, and total cash costs for the quarter are likely to come in far below our combined annual guidance of $399 per PGM ounce. At the same time, our cash position remains solid.