East Africa Metals Announces SinoTech Elects to Exercise $805,000 in Warrants

VANCOUVER, BC--(Marketwired - August 23, 2016) - East Africa Metals Inc. (TSX VENTURE: EAM) ("East Africa" or the "Company") is pleased to report that long time shareholder SinoTech (Hong Kong) Corporation Limited ("SinoTech") has elected to exercise 3,500,000 warrants at a price of $0.23 realizing $805,000 CDN for the Company. The exercise will bring SinoTech's total holdings to 37,788,062 or 32.1% of the Company. SinoTech is a private share company incorporated October 26, 2010, that has supported East Africa's advancement activities for a number of years.

The proceeds will be used for ongoing technical, permitting and exploration expenditures as the Company prepares to advance the Terakimti Oxide Gold Project to the development stage, and prepare the Mato Bula and Da Tambuk deposits for mine permitting.

East Africa's management anticipates an active Fall program on the development and exploration fronts as the Company looks to address corporate objectives including; completion of mine permitting, close project financing and on receipt of the mining permit initiate development for the Terakimti Oxide Gold project, the initiation of operations at Magambazi in Tanzania, and continuing to grow the Company's mineral resource base in Ethiopia through exploration and definition drilling.

The Company's current resource base in Ethiopia comprises 926,000 gold equivalent ounces in the indicated category plus 860,000 gold equivalent ounces in the inferred category (see table below and news release dated June 29, 2016) from Terakimti, Mato Bula and Da Tambuk. Exploration targets planned to be tested to continue the growth of the resource base include the VTEM09 and Mayshehagne prospects, and additional targets along the largely underexplored Mato Bula/Da Tambuk trend.

"The continued support of SinoTech as we develop our Ethiopian assets is greatly appreciated", stated Andrew Lee Smith, Company President and CEO. "East Africa Metals expects to continue to benefit from the contributions of our Beijing-based partner as we continue to advance the Harvest and Adyabo Projects".

East Africa's Mineral Resources at Harvest (Terakimti) and Adyabo Projects

Project		Ownership		Resource Summary
Adyabo 3(Indicated)		100%		446K Ounces AuEquiv
Adyabo 3(Inferred)		100%		434K Ounces AuEquiv
Terakimti Oxide Update 1 (Indicated)		70% (Permit Pending)		132K Ounces AuEquiv
Terakimti Sulphide 2 (Indicated)		70%		348K Ounces AuEquiv		139M lbs CuEquiv
Terakimti Sulphide 2 (Inferred)		70%		426K Ounces AuEquiv		170M lbs CuEquiv

The resources stated above have been previously disclosed in News Releases. (Terakimti Initial Resource Estimate disclosed via news release dated January 27, 2014; effective date January 17, 2014. Terakimti Gold Oxide disclosed via news release October 27, 2015; effective date October 18, 2015. Subsequent to the release of the Terakimti Gold Oxide Resource update, a review by the resource QP identified an error in the tabulation of mineral resources. The corrected resource information was disclosed via news release on January 11, 2016. Adyabo project updated mineral resource estimate disclosed via news release dated June 14, 2016; effective date May 31, 2016).