East Africa Metals advances mine development through the final permitting with community engagement
777 Dunsmuir Street, 17th Floor
PO Box 48658, Station Bentall Centre
Vancouver, BC, Canada V7X 1A3
Tel: 604.488.0822
Toll Free: 866.488.0822
Web: www.eastafricametals.com
NEWS RELEASE
East Africa Metals advances mine development through the
final permitting with community engagement
VANCOUVER, BC – June 7 , 2024 - East Africa Metals Inc. (TSX Venture: EAM) ( “ East Africa ” or the
“ Company ” ) and our development partner, Tibet Huayu Mining Co., Ltd. (“Tibet Huayu”) , are
pleased to inform about the progress of our mine development plan , on the heels of receiv ing
formal notification f rom the Ethiopian State Minister of Mines of the approval for extensions to
the min e development period for the Mato Bula, Da Tambuk and Terakimti projects located in
the Tigray region of the Federal Democratic Republic of Ethiopia .
The Mato Bula and Da Tambuk mining licenses, collectively referred to as the Adyabo Project, are
held by Tigray Resources Incorporated PLC (“TRI”), which is owned by Tibet Huayu and East Africa ,
70% and 30% respectively.
TRI has conducted community meetings in Shire to inform local stakeholders about the details of
the mine development plan and to gain their support for the program. These meetings included
members of the f ederal, r egional and local government as well as community members with
interest in the project development.
TRI’s presentation was received favourably and local experts, Beles Engineering PLC (“Beles”),
were commissioned to evaluate and assess all of TRI’s obligations to the local population affected
by our construction project and to work out adequate compensat ion, which will be fully borne
by Tibet Huayu.
Also , TRI is working with the local g overnment administration to finalize compensation for the
access road so construction can begin as soon as possible .
Mato Bula Gold Copper and Da Tambuk Gold Projects
The Adyabo Project Mato Bula and Da Tambuk deposits are high sulphidation gold rich VMS. This
submarine porphyry - related system is located in the southern part of the Arabian - Nubian Shield
(ANS) in the Tigray region of northern Ethiopia. Mining licences ha ve been received that cover
both deposits on Adyabo, Mato Bula Au - Cu - Ag and Da Tambuk Au.
Tibet Huayu Mining Co. Limited is responsible for 100% financing of both Adyabo’s Mato Bula
and Da Tambuk mine construction costs resulting in a 70% THM and 30% EAM ownership.
In April 2018, Preliminary Economic Assessment (PEA) results were released on the Mato Bula
Gold Copper and Da Tambuk Gold Projects, indicating strong project economics. For Mato Bula,
the post - tax NPV is US$56.7 million (8% discount rate), and an IRR of 28.4%. For Da Tambuk, the
post - tax NPV is US$13.0 million, with an IRR of 28.6% at a gold price of USD1,325.
About East Africa Metals
The Company's principal assets include a 30% Net Profits Interest in the Mato Bula and Da
Tambuk projects (collectively "Adyabo Project ") and a 70% interest in the Harvest polymetallic
VMS Exploration Project in the Tigray Region of the Federal Democratic Republic of Ethiopia . In
addition, the Company has a 30% Net Streaming Interest in the Magambazi Mine in the Tanga
Region of Tanzania.
EAM has invested US$66.8M in African exploration since 2005 and has identified a total of 2.8
million ounces of gold and gold - equivalent resources representing an average discovery cost per
ounce of US$24 .
More information on the Company can be viewed at the Company’s we bsite:
www.eastafricametals.com
Andrew Lee Smith is a Qualified Person under the definitions of National Instrument 43 - 101,
has reviewed and approved the contents of this news release.
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., CEO
For further information contact:
Nick Watters, Business Development
Telephone +1 (604) 488 - 0822
Email [email protected]
Website www.eastafricametals.com
Cautionary Statement Regarding Forward - Looking Information
This news release contains "forward - looking information" within the meaning of applicable Canadian securities legislation. Generally,
forward - looking information can be identified using forward - looking terminology such as "anticipate", "believe", "plan", "expect",
"intend", "estimate", "forecast", "project", "budget", "schedule", "ma y", "will", "could", "might", "should", "indicate" or variations of such
words or similar words or expressions. Forward - looking information is based on reasonable assumptions that have been made by East
Africa as at the date of such information and is subj ect to known and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements of East Africa to be materially different from those expressed or
implied by such forward - looking information, including but not limited to: timing of receipt of mining permit; timing of mining
development; projected heap leach recoveries ; early exploration; the closin g of the agreement with the exploration and development
company to advance the Magambazi Projec t or identify any other corporate opportunities for the Company; mineral exploration and
development; metal and mineral prices; availability of capital; accuracy of East Africa's projections and estimates, including the initial
mineral resource for the Adyabo, Harvest and Magambazi Properties; interest and exchange rates; competition; stock price
fluctuations; availability of drilling equipment and access; actual results of curre nt exploration activities; government regulation; political
or economic devel opments; foreign taxation risks; environmental risks; insurance risks; capital expenditures; operating or technical
difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal explor ation and
devel opment including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project
parameters as plans continue to be refined, as well as those risk factors set out in in East Africa's management's discus sion and
analysis for the three months and nine months ended December 31 , 2023 and for the fifteen month and year ended March 31 , 2023 ,
and East Africa's listing application dated July 8, 2013. Mineral Resources, which are not Mineral Reserves, do not have demonstrated
economic viability. The contained gold, copper and silver figures shown are in situ. No assurance can be given that the estim ated
quantities will be produced. Forward - looking stat ements are based on assumptions management believes to be reaso nable, including
but not limited to the timely closing of the financing; the timely closing of the Handeni Property definitive agreement; the price of gold,
silver, copper and zinc; the demand for gold, silver, copper and zinc; the ability to carry on expl oration and development activities; the
timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and c ost - efficient
manner; the ability to operate in a safe, efficient and effective manner; the renewal or extension of exploration Lic enses; the regulatory
framework regarding environmental matters, and such other assumptions and factors as set out herein. Although East Africa has
attempted to identify important factors that could cause actual results to differ materially from those cont ained in forward - looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no a ssurance
that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in
such information. The Company does not update or revise forward looking information even if new information becomes available
unless legislation requires the Company do so. Accordingly, readers should not place undue r eliance on forward - looking information
contained herein, except in accordance with applicable securities laws. Neither TSX Venture Exchange nor its Regulation Servi ces
Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts r esponsibility for the adequacy or accuracy of
this release.