NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR
DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
VANCOUVER, British Columbia, Feb. 11, 2019 (GLOBE NEWSWIRE) -- East Africa Metals Inc. (TSX Venture: EAM) (“East
Africa”, or the “Company”) would like to provide an update on to the Project Development financing announcement released earlier
(see News Releases Dated February 8th and 11th).
As part of the overall financing strategy, East Africa is announcing its intention to complete an equity
financing by way of a private placement of up to C$3.0M at a price of C$0.16 per unit for 18.75M units. Each unit will consist of
one common share and one common share purchase warrant of the Company. Each warrant will entitle the holder to purchase one common
share at an exercise price of C$0.30 per share for a period of 24 months following the closing of the private placement. All
of the securities issued in connection with this private placement are subject to resale restrictions which expire four months and
one day from closing.
In connection with the private placement certain arm's-length parties may receive a cash finder's fee payment on
the gross proceeds of the units that are sold to subscribers introduced by such parties. The private placement is subject to
certain conditions, including but not limited to the approval of the TSX Venture Exchange and the Board of Directors.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as
amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to,
or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration
requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer
to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful.
Use of Proceeds:
Proceeds from the Private Placement will be used to a diamond drilling campaign targeted to increase the
existing global resource base of the Ethiopian assets by testing extensions to existing resources and the high priority exploration
targets as well as general working capital.
More information on the Company can be viewed at the Company’s website: www.eastafricametals.com
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., CEO
For further information contact:
Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian
securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as
“anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “forecast”, “project”, “budget”, “schedule”, “may”, “will”,
“could”, “might”, “should” or variations of such words or similar words or expressions. Forward-looking information is based on
reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown
risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied by such forward-looking information, including but not limited
to: risks associated with mineral exploration and development; metal and mineral prices; availability of capital; accuracy of the
Company’s projections and estimates; ability to obtain financing for the Ethiopian projects; ability to obtain appropriate rights
to explore at the proposed drill targets; interest and exchange rates; competition; stock price fluctuations; availability of
drilling equipment, services and access to drill sites; actual results of current exploration activities; government regulation;
political or economic developments; environmental risks; insurance risks; capital expenditures; successfully manage the
environmental and social impacts; the speculative nature of strategic metal exploration and development including the risks of
diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans
continue to be refined, as well as those risk factors set out in East Africa’s management’s discussion and analysis for the year
end December 31, 2017 and for the nine months ended September 30, 2018, and East Africa’s listing application dated July 8, 2013.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the price of
gold, copper, and silver; the demand for gold, copper and silver; the ability to carry on exploration and development activities;
availability of financing to fund working capital; the timely receipt of any required approvals; the ability to obtain
qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and
effective manner; the expected burn rate; ability to obtain financing for the Ethiopian projects, the regulatory framework
regarding environmental matters, and such other assumptions and factors as set out herein. Although the Company has attempted to
identify important factors that could cause actual results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information contained
herein, except in accordance with applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.