East Africa Metals Closes $5.2 Million Non-Brokered Private Placement and Appoints Mr. Yongwen Wang to the Board of Directors

VANCOUVER, BC--(Marketwired - March 07, 2017) - East Africa Metals Inc.(TSX VENTURE: EAM) (or the "Company") announces today the closing of a $5.2M private placement with Shandong Tyan Home Co., Ltd. ("STH"), a Chinese listed public company. The private placement will finance ongoing exploration and project development activities at the Company's Harvest and Adyabo projects, located in the Tigray region of the Federal Republic of Ethiopia.

The Company is also pleased to announce the appointment of Mr. Yongwen Wang to the Company's Board of Directors.

Strategic Partnership with STH

STH is a Chinese listed public company on the Shanghai Stock Exchange (stock code: 600807), with an integrated business range including real estate, mining, finance and venture capital investment. The total assets of STH cumulate to more than RMB￥8 billion Chinese Yuan.

Gold is one of the key business sectors of STH.

Andrew Lee Smith, EAM's CEO commented, "The Company is grateful for the partnership and support received from STH as a result of this financing. This partnership increases EAM's capacity to provide the capital, equipment, operational and exploration expertise required to advance the Company's Ethiopian projects, and realize full potential of the tremendous mineral endowment on behalf of all stakeholders."

In addition to the private placement, STH and EAM also have a non-binding letter of intent to provide US$10,000,000 line of credit to support the development of the Terakimti Oxide Gold Project (see news release dated November 2, 2016). Alternatively, STH can choose to identify a third party to provide or participate in the debt financing.

As a result of this placement STH owns approximately 14.3% of the outstanding shares of the Company.

Mr. Yongwen Wang has been a Director and General Manager of STH since 2007, and Vice President of Shandong Tianye Real Estate Development Group Co., Ltd. since 1999. Mr. Wang holds a master degree of Business Administration from Shandong University and has rich experience in enterprise management and capital operation. He devotes himself to improve the competitiveness and profitability of the enterprise.