Mr. Andrew Smith reports

EAST AFRICA METALS ANNOUNCES AN EXTENSION TO RELATED PARTY LOAN

East Africa Metals Inc. and SinoTech (Hong Kong) Corp. Ltd., an insider of the company, have signed a third extension of the maturity date for the related-party loan entered into in September, 2017.

On June 1, 2018, the company announced that SinoTech had agreed to extend the maturity date of an unsecured loan to the company in the amount of $300,000. The loan carried an interest rate of 12 per cent per annum and was payable upon the earlier of: (a) 15 business days after the borrower's closing of any future financing greater than $3-million; or (b) 120 days from May 21, 2018.

The new extension of the $300,000 loan maturity date reflects the loan will be repaid upon the earlier of: (a) 15 business days after the borrower's closing of any future financing greater than $3-million; or (b) three months from Sept. 14, 2018, and will bear an interest rate of 12 per cent per annum.

The extension of the loan may be considered a related-party transaction pursuant to Multilateral Instrument 61-101 (Protection of Minority Shareholders in Special Transactions) as SinoTech is an insider of the company. The extension of the loan is exempt from the formal valuation requirement of such instrument and policy on the basis that the company is not listed on a market specified under such instrument and policy, and the extension of the loan is exempt from the minority shareholder approval requirement of such instrument and policy on the basis that the loan is made on reasonable commercial terms, which is not convertible into voting or equity securities of the company.

The company did not file a material change report 21 days prior to the extension of the loan as the company and SinoTech required time to negotiate the extension terms.

We seek Safe Harbor.