East Africa Metals' Magambazi Partner Engages Gareth Taylor as General Manager

VANCOUVER, BC--(Marketwired - August 03, 2016) - East Africa Metals Inc. (TSX VENTURE: EAM) ("East Africa" or the "Company") is pleased to report that Tanzanian Goldfields Limited ("Tanzanian Goldfields"), the Company's partner in Tanzania and Developer of the Magambazi Project, has appointed Mr. Gareth Taylor as General Manager for Tanzanian Goldfields.

Mr. Taylor has extensive experience in deep level, intermediate, shallow underground and open cast mining in a number of African countries including Mali, Namibia, South Africa and Tanzania. For 28 years he was employed by AngloGold Ashanti where he was head of mining and planning for the company's East and West Africa regions and also Managing Director of the Geita Gold Mine in Tanzania. In 2006 Mr. Taylor joined Barrick Gold, where he was Executive General Manager for Barrick Gold Tanzania and Vice President for Barrick Gold Africa, responsible for all Barrick's operational interests in Africa. In 2010 he joined Shanta Gold Limited and held positions as COO and CEO whilst bringing the New Luika Gold Mine to production. Shanta was a company focused on small to medium sized orebodies with production in the 50,000-100,000 ounce per year range requiring relatively low capex with fast payback.

Andrew Lee Smith, Company President and CEO stated, "East Africa's Board and Management welcomes the appointment of Gareth Taylor to lead Tanzania Goldfield's technical and operating team in the development of the Magambazi Project. Mr. Taylor has a depth of experience in mine development and mining operations in Tanzania that makes him the ideal candidate to advance our mutual interest in the Magambazi project."

The Magambazi Project and Handeni Properties
Pursuant to an agreement between Tanzanian Goldfields and East Africa (see news release dated March 7, 2016), East Africa agreed to sell its Magambazi Project, Handeni properties and all properties in Tanzania (the "Tanzanian Assets") to Tanzanian Goldfields for US$1 million and the right to purchase 30% of gold produced during the mining operations at any of the Assets, for a per ounce payment equal to the lesser of: (i) production cost plus 15% based on the Developer's historical and budgeted production costs, and (ii) the prevailing market price for gold.