EAM.V · 2017-12-07 12:00:00

East Africa Metals Receives Mine Permit for the Terakimti Oxide Gold Project, Ethiopia

Permits & Approvals

Suite 700 – 1055 W. Georgia Street

PO Box 11108, Vancouver, BC, Canada V6E 3P3

Tel: 604.488.0822

Toll Free: 866.488.0822

Fax: 604.899.1240

Web: www.eastafricametals.com

NEWS RELEASE

East Africa Metals Receives Mine Permit for the Terakimti Oxide Gold Project, Ethiopia

Vancouver, British Columbia – December 7 , 2017 – East Africa Metals Inc. (TSX-V: EAM) (“East Africa” or the

“Company”) is pleased to announce the Company has received government approval of E ast Africa’s Mining Licence

Agreement for the Terakimti Oxide Gold Project ( the “Terakimti Project”) at the Company’s 70% owned Harvest

Project located in the Tigray National Regional State of the Federal Democratic Republic of Ethiopia (“Ethiopia”).

The Mining Licence Agreement has been formally approved by the Ministry of Mines, Petroleum, and Natural Gas

(the “Ministry of Mines”), the Prime Minister and the Council of Ministers. The Company will now focus on finalizing

its previously announced Project Financing (refer to the Company’s news release dated November 10, 2017) and

proceed with engineering and development of the Terakimti Project.

Andrew Lee Smith, East Africa’s C.E.O. stated , “This is an extremely important achievement for East Africa, and we

appreciate the efforts of the Government and Ministry of Mines in the development of the Mining Licence Agreement

for Terakimti. We plan to move f orward as soon as possible with engineering and development of the project”. The

Terakimti Project will provide East Africa the opportunity to benefit from establishing the first commercial heap leach

operation in the country, and provide the basis for additional exploration and development to grow the Company’s

mineral resources in Ethiopia.

Terakimti Oxide Gold Project Profile:

• Mineral Resource : Indicated Resource of 1,110,000 tonnes grading 3.20 grams gold and 23.6 grams silver

per tonne containing 114,000 ounces of gold and 841,000 ounces of silver;

• Heap Leach Recoveries from Column Testwork1: up to 74.8 % gold and 39.4% silver;

• Proposed Mining Method: Conventional open pit;

• Proposed Processing Technology: Heap leaching to produce gold–silver dore.

(1)see East Africa Metals News Release dated January 23, 2017 for summary of metallurgical test work results.

Proposed Mining Operation:

The Terakimti Project is proposed as an open pit mining operation followed by heap leaching and on site processing to

produce gold-silver dore. The combination of near surface oxide gold and silver mineralization, hosted in soft rock

when compared to other deposits, high and rapid extraction of gold at coarse crush sizes in metallurgical testwork,

along with satisfactory percolation rates all support this strategy for the development of the Terakimti Project.

Project Infrastructure:

The Terakimti Project is located approximately 600 kilometres north of the Addis Ababa, the capital of Ethiopia. The

region has daily, commercial air service from Addis Ababa . The existing transportation and power infrastructure is

located close to the project site and enhances the development potential of the proposed operation. The proposed

mining operation would utilize grid power for the project, for which the nearest high tension power line is

approximately 7 kilometres away. Primary road access to the site is by pa ved highway from the town of Shire, 40

kilometres south of the project. Shire has a population of approximately 60,000 people and sufficient services to serve

as a base for off-site project activities.

Environmental Impact and Socio-Economic Assessment:

An independent Environmental Impact and Socio -Economic Assessment (“EISA”) study has been completed by Beles

Engineering Pvt. Ltd. Co. of Ethiopia, and forms an integral part of the Mining Licence Agreement. This EISA examined

the beneficial and adverse aspects of the proposed mining operation and concluded that the local population is in

favor of the project, and the anticipated benefits would be positive and very important to the local community and to

the local and regional governments. The EISA further concluded that the adverse impacts identified can be mitigated

through implementation of the proposed management and monitoring plans , and therefore recommended project

implementation.

Mineral Resources:

Terakimti Updated Oxide Mineral Resources2

Mineralization

Class

Mineralization

Type

NSR Cut-

Off

($/t)

Tonnes

('000s)

Grade Contained Metals

g/t

('000 oz)

('000 lb)

Indicated Oxide 15.74 1,110 3.20 23.6 0.08 114 841 -

Inferred Oxide 15.74 15 1.94 13.5 0.04 1 7 -

2Terakimti Oxide Resource update disclosed October 27, 2015; effective date October 18, 2015. Full mineral resource estimate d isclosure can be found in the company’s press

release dated October 27, 2015, available at www.eastafricametals.com or at www.sedar .com. Subsequent to the release of the Oxide Resource update, a review by the resource

QP identified an error in the tabulation of mineral resources. The error was not material and the corrected resource information was disclosed via East Africa Metals press release

on January 11, 2016. Metal prices for gold and silver are $1,300/oz and $17.50/oz, respectively.

Terakimti Sulphide Mineral Resources

Additional gold copper resources underlie the Terakimti oxide resource and the Company plans to continue i ts

assessment of these resources for future development.

Terakimti Mineral Resources3

Mineralization

Class

Mineralization

Type

NSR

Cut-

Off

($/t)

Tonnes

('000s)

Grade Contained Metals

g/t

CuEq

('000

oz)

('000

oz)

('000

lb)

('000

lb)

CuEq

(‘000

lb)

Indicated Sulphide 23.9 1,841 1.1 17.5 2.20 1.65 3.98 63 1,033 89,477 66,871 146,645

Inferred

Sulphide 23.9 2,583 1.0 20.6 1.09 1.42 2.60 80 1,712 62,187 77,101 134,337

Primary 63.9 939 0.8 15.2 0.69 2.92 2.66 25 459 14,198 60,358 49,862

Sub-Total

Inferred

3,522 0.9 19.2 0.98 1.82 2.61 105 2,171 76,385 137,459 184,199

3Terakimti Initial Resource Estimate as disclosed in the 43 -101 Technical Report dated February 14, 2014; effective date January 17, 2014. Full mineral resource estimate

disclosure can be found on the company’s website or at www.sedar.com. Metal prices for gold, silver, copper, and zinc are $1 ,400/oz, $25.00/oz, $3.50/lb, and $0.90/lb,

respectively.

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 assumptions 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, 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 recoveries ; early ex ploration;

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; availabili ty of capital; accuracy of East Africa's

projections and estimates, including the initial mineral resource for the Adyabo, Harvest and Magambazi Project s; interest and exchange rates;

competition; stock price fluctuations; availability of drilling equipme nt and access; actual results of current exploration activities; government

regulation; political or economic developments; foreign taxation risks; environmental risks; insurance risks; capital expendi tures; operating or

technical difficulties in connectio n 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 properties; and changes in project paramet ers

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, 2017 and for the year ended December 31, 2016, and East Africa’s l isting 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 wil l 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 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 time ly and

cost-efficient manner; the ability to operate in a safe, efficient and effective manner; the renewal or ex tension of exploration Licences; the

regulatory framework regarding environmental matters, and such other assumptions and factors as set out he rein. 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, estimat ed 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 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.

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