East Asia Minerals Corporation
TSX VENTURE : EAS

East Asia Minerals Corporation

October 10, 2007 08:00 ET

East Asia Minerals Declares CAD$1.30 Per Share Cash Dividend

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 10, 2007) - East Asia Minerals Corporation (TSX VENTURE:EAS) is pleased to announce that it will provide a cash payment of CAD$1.30 per share to registered shareholders of East Asia as of the record date of October 19, 2007. Funds for this cash distribution are provided by the recent amalgamation of East Asia and East Asia Minerals Corporation (Ontario), and the resulting proceeds received through the sale of the Ooshiin Govi uranium property to Compagnie Francaise de Mines et Metaux ("CFMM"), a subsidiary of Areva NC, for a cash payment of CAD$83 million. This transaction was approved by the shareholders of East Asia and the TSX-Venture Exchange, and facilitated through the sale of its wholly owned Mongolia subsidiary, EAM Energy LLC ("EAME"). The transaction included the Bayan Uul, Elgenii, Ikh Khet and Airag-1 uranium tenements. Details of the properties can be found on the East Asia web site at www.EAminerals.com and in previous news releases.

"We are pleased to be able to return such value to our shareholders so early in the life of the Company," commented Michael Hawkins, East Asia Minerals' President. "The transaction with Areva provides an immediate return of outstanding value to the shareholders and the capital required to continue the Company's aggressive exploration, acquisition and growth strategy. The Mongolian transaction was unique in that East Asia retained the most advanced of its uranium portfolio. In addition to the Mongolian uranium assets, we are also extremely encouraged with the strength of the Company's Indonesian copper-gold assets. At the Sangihe gold project we are expecting the first round of assays in the coming weeks and thus far have encountered very promising alteration and mineralization in all three holes completed to date."

The final calculated cash distribution has been subject to net corporate tax considerations, transaction costs, and the Board of Directors' determination of the Company's future capital requirements. The date of the cash distribution payout to registered and beneficial shareholders has been set for October 29, 2007. Beneficial shareholders having shares held through brokerage houses shall receive their cash distributions shortly thereafter. Un-exercised warrants and options are not eligible for the cash distribution.

The Company is relying on proposed amendments to Canadian income tax laws to distribute a minimum of 47% of the total cash distribution to shareholders as a tax free return of capital. In addition, the residual per share distribution (CAD$1.30 less the return of capital) will be a taxable dividend and designated as an "eligible dividend" for Canadian tax purposes by the Company. In the event that the proposed amendments to Canadian income tax laws are not enacted, it is expected that 100% of the cash distribution will be designated as an "eligible dividend" for Canadian tax purposes by the Company, as previously disclosed. This tax free return of capital is also subject to shareholder approval, which shall be voted on at a special meeting to be held October 18, 2007.

T5 statements will be issued to Canadian recipients and NR4 statements to United States recipients indicating the taxable portion of the dividend received for the 2007 tax year. For further information please review the Company's Information Circular posted on SEDAR. Individuals should obtain their own independent tax advice to determine their particular tax implications for this transaction.

About East Asia Minerals Corporation

East Asia Minerals is an Asian-based, Canadian mineral exploration company with uranium, gold and copper assets in Mongolia and Indonesia. The Company owns three uranium properties, Ingiin-Nars, Ulaan Nuur and Enger, and a 75% interest in the Khok Adar copper oxide discovery, in Mongolia. In Indonesia, it has a 70 to 85% interest in five advanced gold and gold-copper projects located in Aceh Province in Sumatra and North Sulawesi. East Asia currently has 48,047,832 shares outstanding. Its shares are listed for trading on the TSX Venture Exchange under the symbol "EAS".

Forward Looking Statements - This News Release contains forward looking information within the meaning of the Ontario Securities Act and the Alberta Securities Act, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with our expectations, metal recoveries, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration or development activities or the completion of new or updated feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations (including uranium, fuel, steel and construction items), currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The words anticipate, believe, estimate and expect and similar expressions, as they relate to us or our management, are intended to identify forward looking statements relating to the business and affairs of the Company. Except as required under applicable securities legislation, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

To receive or stop receiving EAS news via email, please email Info@EAminerals.com and state your preference in the subject line.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information