East Africa Metals Provides Update on Metallurgical Testwork for the Terakimti Gold Project, Ethiopia


VANCOUVER, BC --(Marketwired - July 05, 2016) - East Africa Metals Inc. (TSX VENTURE: EAM) ("East Africa" or the "Company") is pleased to report the initial results of ongoing column leaching test work for the Terakimti Gold Project in the Federal Republic of Ethiopia.

Results received to date from the first column leach test demonstrate excellent gold extractions have been achieved as indicated by the rapid recovery of 76.8 percent of gold after 24 days of a planned 60 day leach test. These initial column leach results are positive and further support heap leaching as the preferred technology for the extraction of gold and silver at Terakimti.

Column Leach Test Work Results to date

Two column leach tests are currently underway at the SGS laboratory in Johannesburg, South Africa. The first column has been in operation for 24 days and has achieved gold extraction of 76.8 percent and a silver extraction of 36.8 percent based on solution assays. The second column has been in operation for five days and has already achieved a gold extraction of 50.3 percent. Both columns are scheduled to operate for 60 days.

Heap leaching typically requires lower capital and operating costs than processes utilizing grinding and agitated leaching technologies, as well as shorter construction periods.

"We are very pleased by the excellent metallurgical test results achieved to date for Terakimti. These positive results build on the encouraging performance of previous test work and are an important indicator that heap leaching technology is an appropriate application for the Terakimti Oxide Gold Project. East Africa's technical team is taking a methodical approach to the test work program in order to build a solid technical database for project development," stated Sean Waller, P.Eng., Chair of East Africa's Technical Development Committee. "The test work is ongoing and we look forward to receiving the next set of results."

Testwork Program

The objectives of this program are to test the amenability of the Terakimti near surface oxide material to extraction of gold and silver utilizing industry standard heap leaching technology, and to determine parameters for preliminary process design. Column operation is monitored daily by analyzing the gold and silver content and volume of the discharge solution as well as other key operating parameters including flow rates and reagent levels. At the completion of the 60 day leach period the solids residues from the columns will be assayed to finalize the gold and silver extractions. The column tests are being performed on composite samples developed to be representative of the Terakimti oxide gold deposit. The samples have been crushed to a relatively coarse particle size of 100% passing 16 mm and have been agglomerated prior to placement in the columns. The columns are two meters high with a diameter of 150 mm.

Two column leach tests are currently in operation and a third column test is scheduled to start within the next ten days. Based on the positive results to date, the third column will be performed an a sample crushed to 100 percent passing 38 mm, as compared to the 16 mm crush size in the current tests. The results of the third column will provide an indication of the potential to use a coarser crush size for heap leaching, thereby reducing the crushing requirement and related costs in an actual operation.

The test work program is being performed by SGS South Africa (Pty) Ltd at its metallurgical testing facility in Johannesburg, South Africa. SGS is recognized globally for its metallurgical testing expertise.

About East Africa

The Company's principal assets and interests include both the 70%-owned Harvest polymetallic VMS exploration Project, which hosts the Terakimti Deposit and which covers approximately 86 square kilometres in the Tigray region of Ethiopia, 600 kilometres north‚Äźnorthwest of the capital city of Addis Ababa, and the Adyabo Project, hosting the Mato Bula trend Adyabo Resource, covering 225 square kilometres immediately west of the Harvest Project. The Company owns 80% of the Adyabo Project, and upon execution of a net smelter return agreement the Company will own 100% of the Adyabo Project, subject to a 2% NSR. East Africa now has mineral resources defined at both projects in Ethiopia and plans to continue to test priority targets. Additionally, the Company owns the 93 square kilometre Handeni Property located in north-eastern Tanzania. Handeni includes the Magambazi Project, a gold deposit discovered in 2009. East Africa has entered into a definitive agreement with an arm's length private exploration and development company to advance the project.

More information on the Company can be viewed at the Company's website: www.eastafricametals.com.

Sean Waller, P.Eng., Director, a Qualified Person under the definitions of National Instrument 43-101, has reviewed and approved the contents of this news release.

On behalf of the Board of Directors:

Andrew Lee Smith, P.Geo., CEO

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" 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, level 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: early exploration; 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; availability of capital; accuracy of East Africa's projections and estimates, including the initial mineral resource for the Adyabo, Harvest and Magambazi Projects; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; political or economic developments; foreign taxation risks; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection 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 parameters as plans continue to be refined, as well as those risk factors set out in East Africa's management's discussion and analysis for the year end December 31, 2015, management's discussion and analysis for the three months ended March 31, 2016 and East Africa's listing application dated July 8, 2013 and Tigray Resources Inc. Management Information Circular dated March 28, 2014. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the successful integration of Tigray Resources Inc.'s business with the Company; 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 timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; and the regulatory framework regarding environmental matters, and such other assumptions and factors as set out herein. 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, estimated 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.

For further information contact:
Nick Watters
Business Development
Telephone +1 (604) 488-0822
Email investors@eastafricametals.com
Website www.eastafricametals.com