East Africa Metals announces Tibet Huayu moving forward with min e 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, Canada V7X 1A3
Tel: 604.488.0822
Toll Free: 866.488.0822
Web: www.eastafricametals.com
NEWS RELEASE
East Africa Metals announces Tibet Huayu moving forward with min e
development program s at the Mato Bula and Da Tambuk mines, Ethiopia .
Vancouver, Bri ti sh Columbia – May 10 , 20 24 – East Africa Metals Inc. (TSX - V: EAM) (“East
Africa” or the “Company”) are pleased to announce the development of the Mato Bula and Da
Tambu k mines has been initiated . EAM’s development partner, the Chinese company Tibet
Huayu Mining Co., Ltd. (“Tibet Huayu”), through its wholly owned subsidiary Silk Road
Investments Co. Ltd., will bear 100% of the costs of mine construction.
Th e m i ne development program is operated by the jointly owned company Tigray Resources
Inc. ("TRI" - 70% Silk Road, 30% East Africa Metals). Once commercial production begins, East
Africa will have the right to a Net Profits Interest (“NPI”) equivalent to 30% of the total
production (Au, Cu), net of mining and processing costs.
Operations at Mato Bula and Da Tambuk were suspended during the three - year regional
conflict which was ended with the signing of the Pretoria Agreement in November 2023 . Since
that time, TRI 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.
In addition to permitting and approvals, TRI’s staff h as advanced the mine development agenda
through:
T he revised feasibility study of the project has been completed. The revised study
includ es detailed design parameters that w i ll see the Mato Bula and Da Tambuk mines
now developed simultaneously around a central processing facility .
The p lans for access road construction has been completed and discussions with the
local government ( “ Werda ” ) to finalize the start of construction are in progress. The
commencement of road construction is expected to begin prior to the end of May 2024.
Community meeting s with all stakeholders have been held and support for the project
going forward has been confirmed by the Federal and Regional governments and local
community.
Ministry of Mines official mining cadastral confirm s EAM’s mining rights to the Mato
Bula and Da Tambu k Mining Licenses remain active and in good standing.
In addition, planning is in progress for a drill program to test the Halima Hill prospect that lies
within the Adyabo Mining License . Drilling is expected to begin prior to the end of Q2 2024.
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 have 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 2 8.4%. 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 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 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 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 using forward - looking terminology such as "anticipate", "believe", "plan", "expect",
"intend", "estimate", "forecast", "project", "budget", "schedule", "may", "will", "could", "might", "should", "indicate" or v ariations of
such words or similar words or express ions. Forward - looking information is based on reasonable assumptions th at 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 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 agreemen t 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 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 cur rent exploration activities; government
regulation; political or economic developments; foreign taxation risks; environmental risks; insurance risks; capital expendi tures;
operating or technical difficulties in connection with development activities; perso nnel 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 nine months ended September 30, 20 23 and for the year
ended December 31, 20 23 , 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 estimated quantities will be produced. Forward - looking statements are based on assumptions
management believes to be reasonable, 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 zi nc; the
ability to c arry 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 manner; 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 accura te, 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 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.