Welcome to the Stillwater Mining Company Q1 2008 results conference call. (Operator Instructions)

Welcome to the 2007 annual meeting of the stockholders of Stillwater Mining Company. I am Frank McAllister, Chairman and Chief Executive Officer of the company and I’ll be serving as chairman of this meeting. Before starting, some have asked about the venue of our meeting today and perhaps since now I am not quite sure exactly what it is, but let me author a word of explanation. It was five years ago this coming June that the Norilsk Nickel transaction was consummated after eight long months. Because of the transaction’s groundbreaking nature, obviously Norilsk now owns just over 50% of the company and they are based in Russia, and five years ago this was a significant event in the United States and obviously in Russia as well. But because of this groundbreaking nature, as it proceeded we were called upon to provide reassurance not just to our employees and our shareholders, but also to local government officials, government regulators, community and civic and business leaders and our neighbors. And we wanted to reassure them both of the need for the transaction and the value of the transaction to our local community. In the process we received great support from the Congressional delegation, but afterwards as a gesture of goodwill, the management of Norilsk Nickel arranged to provide funding for a bear habitat here in a zoo in Montana. And while it’s taken more time than it should have, the bear habitat is now completed and as of just a week ago inhabited by Bruno. And Bruno is a grizzly bear, we think. And if that is so, he is back here to his home native Northwest United States area just ‘Russian’ to get to the meeting so to speak. I see you are a little bit slow today. I’d like…

I have at this meeting a complete list of the stockholders of record of the Company’s common stock as of March 31, 2008, the record date for this meeting. I also have an affidavit certifying that on or about April 14, 2008, a notice of the annual meeting of stockholders of the company was deposited in the United States mail to all stockholders of record at the close of business on March 31, 2008.

I hereby appoint Patrick Hayes of Computer Search area of Investment Services, the company’s transfer agent, to act as inspector of elections at this meeting. Mr. Hayes has taken and subscribed to the customary oath of office to execute his duties with strict impartiality, which also will be filed with the records of the meeting. Mr. Hayes’ function is to decide upon the qualifications of voters, accept their votes and when balloting on all matters is completed, to tally the ballots cast as to each matter. Will the secretary please report at this time with respect to the existence of a quorum?

Yes I’ve been informed by the Inspector of Elections that proxies have been received for 86,442,663 of the 92,743,743 shares of the company’s common stock outstanding on the record date, which represents approximately 86% of the total number of shares of the company’s common stock. This constitutes a quorum for the transaction of business.

I hereby declare this meeting to be duly constituted for the transaction of business. Are there any additional proxies to be submitted to the Inspector of Elections at this time?

The time is now 1:40 pm on May 8, 2008 and the polls are now open for voting on all matters presented. The polls will be closed to voting on the two proposals after we go through the proposals. I will announce the closing of the polls in due course.

The first order of business is to consider the election of eight directors of the company’s Board of Directors. The following individuals have been nominated to serve as Directors of the company: Craig L. Fuller, Patrick M. James, Steven S. Lucas, Joseph P. Mazurek, Francis R. McAllister, Sheryl K. Pressler, Donald W. Riegle, Jr. and Todd D. Schafer. All of these persons are currently directors and up for re-election. Under our stockholders’ agreement with Norilsk Nickel and Norimet, its fully owned subsidiary and the owner of the Norilsk Nickel Stillwater Holding, Norimet is entitled to nominate a majority of directors on the Stillwater’s Board of Directors as long as Norimet owns a majority of our outstanding shares. Norimet owns about 53.7% of the company’s outstanding shares and has nominated Craig L. Fuller, Steven S. Lucas, Donald W. Riegle, Jr. and Todd D. Schafer for election as the Norimet Directors under the stockholders’ agreement. All of these persons have been directors of the company since June 23 of 2003, the date that the stock purchase transaction with Norilsk Nickel was completed. There is also one vacant Norimet director’s position due to Jack Thompson’s resignation in July 2006, which will be filled at a later date. The stockholders’ agreement also provides that the CEO will be a director, so I am also included as a nominee. Finally, the stockholders’ agreement provides that the Board will also include a so-called Public Director, who will be nominated in such a manner as to reserve their independence from Norimet. The current public directors are Patrick M. James, who is also the lead director on the Board, Joseph P. Mazurek and Sheryl K. Pressler and all three are nominated for re-election. All of these public directors have been directors of the company before the completion to transaction with Norilsk Nickel. Further information regarding the nominees for election is included in the proxy statement that was sent to shareholders earlier. Are there any questions on this proposal before we proceed?

The following resolution is hereby submitted to stockholders for their adoption and approval. Resolve that Craig L. Fuller, Patrick M. James, Steven S. Lucas, Joseph P. Mazurek, Francis R. McAllister, Sheryl K. Pressler, Donald W. Riegle, Jr., and Todd D. Shafer be, and they hereby are elected to serve on the company’s Board of Directors until the company’s 2008 annual meeting of stockholders or until their successors are duly elected.

Next we will consider the ratification of KPMG LLP as the company’s independent accountants for 2008. Are there any questions on this proposal before we proceed?

The following resolution is hereby submitted to the stockholders for their adoption and approval. Resolve the appointment of KPMG LLP as the company’s independent accountant for 2008, and it is hereby is ratified and approved in all respects. As we’ve already discussed, the voting is by proxy and written ballot; it is not necessary to vote in person if you have previously sent in or have at this meeting submitted your signed proxy. The only person present or they are not you have submitted proxy now wish to vote in person on proposals one and two. Please raise your hand. Seeing none, each holder of record of common stock as of March 31, 2008 is entitled to one vote for each share held on all matters to be voted upon.

Time is now approximately 1:45 pm and unless there is a need for more time to vote, I intend to now close the vote with respect to all proposals. The polls are now closed for voting. May we have the results to the voting?

The report of the inspector’s election counting proposals one and two presented at this meeting is as follows. The following individuals have been elected to serve on the company’s Board of Directors until the 2008 annual meeting and until their successors are duly elected: Craig L. Fuller, Patrick M. James, Steven S. Lucas, Joseph P. Mazurek, Francis R. McAllister, Sheryl K. Pressler, Donald W. Riegle, Jr. and Todd D. Shafer. The stockholders have approved KPMG LLP as the company’s independent accountant for 2008. A full tally of votes will be included in our next quarterly report on Form 10-Q filed with the SEC.

The formal part of the meeting having been completed I’d like to make some remarks regarding Stillwater Mining Company as well as the business environment that we face today and perhaps some comments on where we think Stillwater is headed. The schedule for this portion the Annual Meeting has been crafted to allow me not just to comment on the results of 2007, but to also report financial and operating results for the first quarter of 2008. A chance that is, to initiate discussion of our quarterly results after 2:00 PM and the New York Stock Exchange closes in New York at 4:00 PM. Well we are going to have a little bit of opportunity here to discuss new things ahead of that time. As we are free to comment on our first quarter at that time, we have also invited shareholders and analysts and others wishing to learn more about Stillwater to join us by phone and Internet hookup to get the report firsthand and to ask questions along with those here in person. Typically this is done a day or so after the annual meeting as we do with each of our other quarterly reports and while the format may be a little bit unwieldy, it does allow others to join us for the report portion of the annual meeting, at least that’s the intent. Thus, in a few minutes, a bit before 2:00 pm, I’m going to interrupt my remarks briefly to make sure that the proper links have been made to those who are joining by conference call, many who are already on the call and listening to us right now. Before I start with any company operating comments, let me call your attention to the SEC disclaimer, which generally states: some statements contained in this…

Different companies and Norilsk is a subsidiary company of Pechenganickel and it’s based in London and Norilsk is a different company. That’s a separate company and we are not involved with that is Pechenganickel and Norilsk. [Inaudible – No audio in audience.]:

Properties very intimately in fact there are number of people in the audience that could talk about them. The likelihood of that may be low and the reason for that is that they have basically a copper, nickel product that they are producing. They do have some palladium and some platinum with them but the bulk of the platinum, palladium in them will be very low and their concentrate volume is very high. As a result of that we probably don’t have to actually run it through the refinery. It’s pretty specific and pretty high-grade platinum and palladium. Terry would that be okay? A very important question though, I just commented briefly about this. The only other area in the United States where there is any platinum or palladium of any quantity would be at Minnesota, and there are several properties up there. One is own by the state, one is own by a company by the name of Calumet down in Denver, based out of Denver. One is owned by some private investors. We have looked at them, we understand them, and we know them. It is a processing problem because they come out with a bulk concentrate and to ship that very far is going to expensive for them and that’s why they are trying to put the other metallurgical process. Now the problem there is that putting a smelter in Minnesota is difficult so that’s the reason behind it. Any other questions? Let me just talk about a couple of things for a second. We’ve got about three minutes to go and I apologize for this unwieldy way to report. We are going to talk about when we get into this call, we are going to talk about South Africa a bit and the issues we are…

That statistic would be all mine employees not just the miners. [Inaudible Audience Question]:

That’s correct. [Inaudible Audience Question]:

Yes. Let me go back to my earlier comment, and I’m sure it’s very important for you to understand. It was a change in work schedule, which allowed somebody to come from Idaho and work for seven days and go back and be with his family for seven days. We changed the work schedule because what we were doing was the attrition means they were leaving voluntarily, going to Idaho because the silver price is now $14 instead of $3 and they can get a good job in Idaho next to their families. So what they were doing is leaving us. So this wasn’t just nickel, this was “I’m outta here guys, I’m going back to Idaho, I’m going back to Nevada where the gold price is $850 instead of $350.” they were leaving us to go back to their home areas. [Unidentified Audience Participant]: Was that mainly in the Stillwater Mine?

No, every mine in the country has experienced the same. [Unidentified Audience Participant – Inaudible Question]:

Yes. That’s correct. So this is basically the Stillwater Mine where the schedule change took place. That’s correct. It was. [Unidentified Audience Participant]: Seven and seven.

Yes. [Unidentified Audience Participant]: So they got seven on and seven off.

That’s correct. [Unidentified Audience Participant – Inaudible Question]:

The Stillwater was where it hurt, definitely in 2007 that’s correct.

Your next question comes from Victor Flores - HSBC.

I wanted to ask you about the recycling business, I understand that because you have to buy spent catalysts which are going up in price, there is a cost input issue even as commodity prices are going up. But I thought I would, I would have expected to see margins in the recycling business perhaps go up a bit. They’ve actually been fairly flat. Can you spend a bit more time talking about what’s happening on that side of the business?

Sure, first of all you are correct; the margins are up a bit. I think the second thing is there are two things that are going on here, first of all the production; the number of recycled ounces in the first quarter was down a bit from what it was last year. Meaning that if you have production down and you have profitability up just a little bit your margins are up a little bit. But the inventory methods that we use; we’ll defer some of that higher profitability into the second quarter and third quarter simply because it’s outturned. When it’s outturned is when we realize both the revenue but also the inventory is inventoried on an average cost basis and it’s very difficult to be able to explain what that does to us during a period of rising prices it defers profitability till later periods.

Both the first quarter operating performance and then the full year, it looks like you had a tough quarter at the Stillwater Mine and a much better quarter at East Boulder. Although I must say I am a bit surprised that costs came down as much as they did at East Boulder and rose as much as they did at the Stillwater Mine. Because there were differences in production but they weren’t that dramatic and I was hoping I can get a comment on that.

Victor you’ve analyzed it absolutely correctly.

We are going through bit of a change and rationalizing some of the production at the Stillwater Mine, trying to adjust to the reduced manpower level and focus on productivity, you should be expecting to see some of that benefit occur in the second, third and fourth quarter.

I suppose that explains why the Stillwater Mine was down. You basically you had extra expenditure to deal with that lower level of tonnage. At the same time why did cost come down as much as they did at East Boulder when production was a bit better but not materially better?

Some of that was just related to primary focus on the operations. There was some reduced spending in terms of contractor services, predominately contractor services.

With respect to the full year, obviously the first quarter you got off to a slow start, how do you see the rest of the year going in order to get to your target production?

Obviously it’s a ramp up in our workers.

I think the best way to look at it is it’s going to be a steady progression towards those goals that we put out in our guidance. We see ourselves on track as to what we said last conference call and we don’t see material changes to the production side. And likewise on the cost side, we think we are doing the right things that are going to keep us within the guidance that has been already stated as well. So, it’s somewhat related to our position we’re at within the stope and mining areas in general both at Stillwater and at the East Boulder and it’s also related to some of the things we are trying in terms of our productivity initiatives. But generally speaking we are looking well on track with the guidance given last February.

A lady here in the audience had asked about our attrition rates. At Stillwater obviously the attrition rates have been quite high. There are three keys to us building up this production through the year. Greg has mentioned them; one is obviously our productivity of each of our miners and especially the new miners that have been hired on. The second is our ability to maintain our manpower and grow it, but the third one is obviously making sure that our attrition rates are as low as they can get to.

Is the progress on moving towards more of the selective mining?

Yes Victor. What we are looking at right now is we still need to maintain our focus on both quality and quantity. So the guidance that has been given in terms of our shift to more captive cut and fill mining techniques. We are very focused on that especially in our areas that don’t lend themselves to more bulk style methods. However, that being said we still want to make sure that we are not walking way from potential opportunities that we can get from higher productivity related with our [inaudible] techniques. All that being said what we need to do going forward is make sure that we are really focused in on what the orebody will deliver and the methods that’s appropriate to get that done. So I would say this in terms of our shift towards captive cut and fill mining, we are going to continue with that in a very strong way and look for ways to optimize it where we can, but we are not going to lose sight of other opportunities that may arise by staying focused on our bulk mining as well.

Your next question comes from Borden Putnam - Eastbourne Capital.

I think the cost decline in East Boulder relates to an increase in head grade, it’s up about 8% year-on-year and up about 13% quarter-on-quarter. I track this stuff and it looks pretty good. I would love to see that at Nye or at Stillwater but we hope it will come. You periodically will give ore tons per day and I didn’t see them reported this quarter for both, either Nye or East Boulder. Could you give me those, do you have them handy? It’s tons mined by method for captive cut and fill and mechanical ramp and fill, just trying to track these and see how you are doing?

In fact what we will do is we’ll get back to you on both those questions.

There are no questions in queue.

Actually at this point in time, is there any other business that has to be brought forward to this meeting, John? As there is no further business the meeting is adjourned. Thank you for attending our annual meeting. The officers of the company will be available after if there’s anybody who’d like to ask questions and we appreciate your coming to Montana. Thank you again.