East Africa Metals Announces Closing of Non-Brokered Private Placement

East Africa Metals Inc. has successfully completed a CAD$500,000 non-brokered private placement, issuing 3,333,333 common shares at CAD$0.15 per share to a strategic investor. The financing reflects investor confidence in the company's African portfolio and provides essential working capital for ongoing operations.

The company maintains a diversified portfolio of precious and base metal assets across East Africa, including a 30% net profits interest in the Mato Bula and Da Tambuk mines in Ethiopia's Tigray Region, and a 70% interest in the Harvest polymetallic VMS exploration project. Additionally, East Africa Metals holds a 30% net streaming interest in the Magambazi Mine in Tanzania's Tanga Region.

Since 2005, the company has invested US$66.8 million in African exploration activities, successfully identifying 2.8 million ounces of gold and gold-equivalent resources at an average discovery cost of US$24 per ounce. This track record demonstrates the company's ability to generate value through systematic exploration in the region.

The proceeds from this private placement will be allocated toward legal and accounting expenses, as well as general working capital requirements. All securities issued are subject to a standard four-month holding period, and the transaction remains subject to final TSX Venture Exchange approval. This financing provides the company with necessary capital to advance its operations while maintaining its strategic focus on the East African mining sector.