East Africa Metals Provides Update on Magambazi Project, Tanzania

Core Viewpoint - East Africa Metals Inc. is advancing the Magambazi gold project in Tanzania by partnering with Ubora Minerals Company Limited to develop a formal mining plan and secure license renewal [1][2][3]. Government Engagement and Third-Party Developer - The company has been in continuous dialogue with the Tanzanian Ministry of Minerals since operations were suspended in December 2022 due to non-compliance by the previous operator [2]. - Following a government-led mediation process, East Africa and PMM were instructed to find a qualified third-party developer, resulting in a binding Memorandum of Understanding with Ubora [3]. Financial and Development Terms - The MOU stipulates that Ubora will acquire the Magambazi Project for a cash payment of US$1.0 million and a 4% Net Smelter Returns royalty to East Africa [4]. - Ubora is committed to starting project development within 48 months after obtaining necessary approvals, targeting a production rate of 40,000 ounces of gold annually [4]. Formal Mining Plan Development - Ubora, with East Africa's support, is preparing a formal mining plan as required for the renewal of mining licenses, which will outline technical, operational, environmental, and regulatory compliance aspects [5][6]. - The plan aims to establish a framework for advancing to the next phase of mine development, benefiting local stakeholders and East Africa shareholders [7]. About the Magambazi Property - The Handeni Gold Project includes two mining licenses covering 9.9 km² and additional prospecting licenses totaling 83.5 km², with historical exploration indicating over 1.0 million ounces of gold in the Magambazi deposit [8]. About East Africa Metals Inc. - The company holds a 30% Net Profits Interest in the Mato Bula and Da Tambuk mines and a 70% project interest in the Harvest polymetallic VMS Exploration Project in Ethiopia, alongside a 30% Net Streaming Interest in the Magambazi Mine [9]. - Since 2005, East Africa has invested US$66.8 million in African exploration, identifying 2.8 million ounces of gold and gold-equivalent resources at an average discovery cost of US$24 per ounce [10].