EAST AFRICA METALS PROVIDES UPDATE ON MAGAMBAZI PROJECT , TANZANIA Positioning Ubora as Development Partner and Advancing Formal Mining Plan to Enable License Renewa l and I nitiate Mine Development
777 Dunsmuir Street
PO Box 11108, Vancouver, BC, Canada V6E 3P3
Tel: 604.488.0822
Web: www.eastafricametals.com
NEWS RELEASE
EAST AFRICA METALS PROVIDES UPDATE ON MAGAMBAZI PROJECT , TANZANIA
Positioning Ubora as Development Partner and Advancing Formal
Mining Plan to Enable License Renewa l and I nitiate Mine Development
Vancouver, British Columbia – August 29 th , 2025 – East Africa Metals Inc. (TSXV: EAM; FSE: EA1; OTC Pink :
EFRMF ) (“East Africa” or the “Company”) is pleased to provide an update on the status of its Handeni
Properties in Tanzania, including the Magambazi gold deposit.
Government Engagement and Third - Party Developer
Since the suspension of operations at the Magambazi project in December 2022 due to non - compliance
by the prior operator PMM Mining Company Limited (“PMM”) , East Africa has maintained continuous
engagement with the Tanzanian Ministry of Minerals to secure a sustainable path forward for the
development of the Magambazi Project .
Following a government - led mediation process initiated in August 2024, East Africa and PMM were
directed by the Minister of Minerals to identify a qualified third - party developer to advance the project.
In consultation with the Ministry, East Africa has si gned a binding Memorandum of Understanding
(“MOU”) with Ubora Minerals Company Limited (“Ubora”), a Tanzanian company and subsidiary of
Anchises Capital Precious Metal Fund LLC, one of the major shareholders of East Africa.
The MOU provides for the acquisition of the Magambazi Project by Ubora, for a cash payment of US$1.0
million to East Africa and a 4% Net Smelter Return s royalty payable to East Africa. Ubora has committed
to commence project development within 48 months of securing the necessary approvals, with a targeted
production rate of 40,000 ounces of gold per annum .
Formal Mining Plan Development
As part of the government - supervised process, Ubora, with the support of East Africa and in consultation
with the Tanzanian Ministry of Minerals, is preparing a formal mining plan. This plan is a prerequisite for
the renewal of the Magambazi and Handeni mi ning licenses and is designed to establish a clear framework
for advancing to the next phase of mine development.
The mining plan will address:
Technical and operational parameters for open - pit development at Magambazi;
Environmental and community considerations;
Compliance with Tanzanian mining legislation and regulatory standards; and,
Timelines and investment thresholds required to initiate commercial mining.
Once accepted by the Tanzanian Mining Commission, the plan will enable the renewal of the suspended
mining licenses and the initiation of a mine development program designed to unlock the value of the
Handeni Properties for the benefit of Tanzania, local s takeholders and East Africa shareholders.
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About the Magambazi Property
The Handeni Gold Project, located 173 kilometres northwest of Dar es Salaam and 35 kilometres south of
the town of Handeni, consists of two mining licenses covering 9.9 km² (the “Magambazi” deposit) and
contiguous prospecting licenses totalling 83.5 km², c ollectively referred to as the Handeni Gold Mine.
Historical exploration and development have defined the Magambazi deposit containing over 1.0 million
ounces of gold.
About East Africa Metals Inc.
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 addi tion, 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 .
For further information please 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 variations of such word s or similar words or
expressions. 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, lev el 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 recoveri es ; early exploration;
the closing of the agreement with the exploration and devel opment 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 curre n t exploration activities;
gov ernment regulation; political or economic developments; 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
exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to prope rties; and changes in
project parameters as plans continue to be refined, as well as those risk factors s et out in in East Africa's management's discussion and analysis
for the three months and nine months ended December 31 , 2024 and for the year ended March 31, 2024 , 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 state ments are
based on assumptions ma nagement believes to be reasonable, including but not limited to the timely closing of the financing; the timely execution
of the Handeni Property D efinitive A greement and closing thereunder ; the price of gold, silver, copper and zinc; the demand for gold, silver, copper
and zinc; the ability to carry on exploration and development activities; the timely receipt of any required approvals; the a bility to obtain qualified
personnel, equipment a nd 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 an d 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 b e no assurance tha t 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 be comes availabl e
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 Ser vices Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.