Mr. Nick Watters reports

EAST AFRICA METALS PROVIDES UPDATE ON MAGAMBAZI PROJECT, TANZANIA

East Africa Metals Inc. is providing 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 Ltd., 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 signed a binding memorandum of understanding (MOU) with Ubora Minerals Company Ltd., 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 $1.0-million (U.S.) to East Africa and a 4-per-cent net smelter returns 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 mining licences 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;

• 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 licences and the initiation of a mine development program designed to unlock the value of the Handeni properties for the benefit of Tanzania, local stakeholders and East Africa shareholders.

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 km (the Magambazi deposit) and contiguous prospecting licences totalling 83.5 km, collectively 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-per-cent net profits interest in the Mato Bula and Da Tambuk mines (collectively the Adyabo property) and a 70-per-cent project interest in the Harvest polymetallic VMS (volcanogenic massive sulphide) exploration project in the Tigray region of Ethiopia. In addition, the company has a 30-per-cent net streaming interest in the Magambazi mine in the Tanga region of Tanzania. East Africa Metals has invested $66.8-million (U.S.) 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 $24 (U.S.).

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