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East Africa Metals release update on Magambazi mine plan development

East Africa Metals Inc. is pleased to provide an update on the progress of the engineering and mine development work at the Magambazi mine in the Handeni region of the Federal Republic of Tanzania.

With the successful completion of the tailings processing in the third quarter of 2021, the technical team for PMM Mining Company Limited (“PMM”) are focused on the development of hard-rock mining operations.

Phase I of the mining operations will be initiated on surface from two open pit resources, the “North and “South” pits. These pits will be established on areas of the deposit representing approximately 15 percent of the recently upgraded one-million ounce Measured and Indicated resource (see October 19, 2021, press release).

Phase II of the mining operations will be conducted from underground where the resource within the Magambazi ridge will be accessed from the valley floor, 200m below the surface operations, to take full advantage of gravity in the mining process.

Flow-sheet

Engineering work is progressing and detailed plans for mining operations and surface equipment installations are expected to be complete early January 2022. Infrastructure required to initiate and support surface mining operations continues to be upgraded and expanded to increase milling capacity sufficient for surface open-pit operations. Development of the access road to the South Pit site is underway.

The processing flow-sheet continues to be refined and expanded to support the hard-rock mining operations. The plans for the expansion of the crushing and grinding circuit continue to be developed. Staged upgrades to the flow-sheet and processing plant will initially expand the capacity of the existing circuit to 1,000 tonnes per day and ultimately to a capacity capable of supporting a 40,000 ounce production rate per year within forty-eight months of commissioning of the hard-rock mining operations.

East Africa Metals has completed the formation of its Tanzanian gold trading company, “EMG Royalty Plc.”, in order to facilitate the acquisition of the Company’s share of gold production from the Magambazi mine. Under the terms of the sale purchase agreement with PMM, EAM holds the rights to acquire 30% of the gold produced from the mining operations for a payment equal to the per ounce cash costs of mining and processing plus 15%.

According to Q2 2021 processing reconciliations provided to EAM by PMM the tailings operations produced a total of 645 ounces of gold. EAM’s share of the Q2 2021production is 169 ounces with a current value of US$275,000. The final transfer of the Magambazi mining licenses to PMM and reconciliation of Q3 2021 processing are expected to be completed in early January 2022.

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