East Africa Metals announces Tibet Huayu has approved the initiation of mining development program s at the Mato Bula and Da Tambuk mines, Ethiopia .
777 Dunsmuir Street, 17th Floor
PO Box 48658, Station Bentall Centre
Vancouver, BC V7X 1A3
Tel: 604.488.0822
Toll Free: 866.488.0822
Fax: 604.899.1240
Web: www.eastafricametals.com
NEWS RELEASE
East Africa Metals announces Tibet Huayu has approved the initiation of mining
development program s at the Mato Bula and Da Tambuk mines, Ethiopia .
Vancouver, Bri ti sh Columbia – December 1 , 20 23 – East Africa Metals Inc. (TSX - V: EAM) (“East
Africa” or the “Company”) i s pleased to announce it has received confirmation from the
C ompan y’s development partner , Tibet Huayu Mining Co ., Ltd . ( Shanghai Stock Exchange
“ Huayu Mining ” or “Tibet” , stock code: 601020) that their Board of Directors has approved the
initiation of mine development activity at the Mato Bula and Da Tambuk mines through their
subsidiary Silk Road Investments Co. Limited (“Silk Road”) .
Tibet Huayu has based their decision to engage the development agenda based on information
collected during recent site visits and meetings with regiona l and federal government
representative s in Ethiopia . Silk Road is currently staffing key management positions , review ing
detailed design parameter s and has established a base of operations and staff in the nearby
town of Shire . The Shire staff are currently working with local authorities and regional
governments to prepare the sites for construction activity .
Mato Bula Gold Copper and Da Tambuk Gold Projects
The Adyabo Project Mato Bula and Da Tambuk deposits are high sulphidation gold rich VMS
type deposits. 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 have
previously been received for both deposits at Adyabo, the Mato Bula Gold Copper Silver Project
and the Da Tambuk Gold Project .
Tibet Huayu Mining Co. Limited (“THM”) 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 very 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 USD1,250.
About Tibet Huayu Mining Co. Ltd.
Tibet Huayu Mining Co., Ltd. is part of Huayu Mining, and multinational mining group listed on
the Shanghai Stock Exchange since 201 6 . Huayu owns a 50% stake in Tajikistan ’ s largest state -
owned enterprise , Tajikistan Aluminum and Gold Industry, in addition to a 70% stake in Tigray
Resources Incorporated PLC (“TRI”), which owns the Mato Bula a nd Da Tambuk mines
About East Africa Metals
The Company's principal assets include a 30% Net Profits Interest in the Mato Bula and Da
Tambuk mines (collectively "Adyabo Property") and a 70% project interest in the Harvest
polymetallic VMS Exploration Project in the Tigray Region 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 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 website:
www.eastafricametals.com .
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 by the use of forward - looking terminology
such as "anticipate", "believe", " plan", "expect", "intend", "estimate", "forecast", "project", "budget", "schedule",
"may", "will", "could", "might", "should", "indicate" or variations of such words or similar words or expressions.
Forward - looking information is based on reasonable assump tions that have been made by East Africa as at the
date of such information and is subject 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 ma terially 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 closing of the
agreement with the exploration and development company to advance the Magambazi Project or identify any
other corporate opportunities for the Company; mineral exploration and development; metal and mineral prices;
availability of capital; accuracy of Eas t 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 result s of current exploration activities;
government regulation; political or economic developments; foreign taxation risks; environmental risks; insurance
risks; capital expenditures; operating or technical difficulties in connection with development activitie s; personnel
relations; the speculative nature of strategic metal exploration and development 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 discussion and analysis
for the three months and six months ended June 30, 2023 and for the year ended March 31, 2023, and East Africa's
listing application dated July 8, 2013 . Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. The contained gold, copper and silver figures shown are in situ. No assurance can be given that
the estimated quantities will be produced. Forward - looking stateme nts are based on assumptions management
believes to be reasonable, including but not limited to the timely closing of the financing; the ability of East Africa’s
operating partner in Tanzania to reactivate the mining operations at Magambazi or the success of East Africa to
recover the Magambazi project from the operating partner and engagement of new operating partners; the price
of gold, silver, copper and zinc; t he demand for gold, silver, copper and zinc; the ability to carry on exploration and
development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel,
equipment and services in a timely and cost - efficient mann er; the ability to operate in a safe, efficient and effective
manner; the renewal or extension of exploration Licenses; 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 contained in forward - looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended. There
can be no assurance 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 informati on becomes available unless legislation requires the Company do so. Accordingly,
readers should not place undue reliance on forward - looking information contained herein, except in accordance
with applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.