East Africa Metals Enters Binding MOU for Project Financing - Seite 2

If the loan is not allocated and the interest forgiven in connection with the formation of a joint venture for the Magambazi project, at any time following 30 days after the execution of the loan agreement, LW shall have the right to convert the C$2,000,000 loan principal and accrued interest into units of East Africa at a deemed price of $0.26 per unit. Each unit will consist of one common share and one-half of one share purchase warrant, with each whole warrant exercisable for $0.45 and expiring six months from issuance. The securities issued under the loan will be subject to a hold period of four months.

Until the loan is allocated for the Magambazi joint venture or is converted into units, East Africa is restricted to use the proceeds of the loan for East Africa's Harvest project's mining license application, the negotiation of an agreement respecting the Harvest project development stage, the restructure of the existing cooperation agreement respecting the Magambazi project, and the renewals of the Magambazi mining licenses if required.

Subject Conditions

The project development funding and private placement are subject to certain conditions, including but not limited to, the establishment of JVCo, receipt of mining license for the Harvest project, Harvest agreement to develop the project, completion of satisfactory due diligence reviews by both parties, execution of definitive agreements, East Africa's shareholder approval of the creation of a new control person and any transactions as required by the TSX Venture Exchange, and receipt of approval of the TSX Venture Exchange. The Company intends to call a shareholders meeting upon completion of East Africa's and LW's satisfactory due diligence review.

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

About Luck Winner

Luck Winner, incorporated in Hong Kong Special Administrative region in 2017, is an international mining development and investment company currently seeking to expand its investments throughout Africa.

Andrew Smith, P. Geol. and Jeff Heidema, P.Geol., Qualified Persons under the definitions of National Instrument 43-101, have reviewed and approved the contents of this news release.

On behalf of the Board of Directors:

Andrew Lee Smith, P.Geo., CEO

East Africa's Mineral Resources at Harvest and Adyabo.