Mr. Andrew Smith reports

EAST AFRICA METALS GRANTS STOCK OPTIONS

East Africa Metals Inc. has granted an aggregate of 16.3 million stock options to certain directors, officers and consultants pursuant to the company's stock option plan. The options have an exercise price of 15 cents per share and an expiry date of Feb. 1, 2031. The options vest immediately and are subject to the approval of the TSX Venture Exchange. All securities are subject to a statutory hold period of four months and one day from the date of grant, in compliance with applicable stock exchange policies.

The grant of stock options to certain directors and officers constitutes a related party transaction pursuant to Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the stock options granted to related parties does not exceed 25 per cent of the company's market capitalization. The company did not file a material change report 21 days before the grant of the stock options, which is reasonable for a grant of stock options given the exemptions being relied upon.