East Energy Corp.
TSX VENTURE : EEC

East Energy Corp.

January 10, 2008 15:16 ET

East Energy Updates Corporate Activities

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2008) - East Energy Corp. (the "Company" or "East Energy") (TSX VENTURE:EEC) is pleased to provide an update and overview of recent corporate activities.

Update on QSRD Acquisition

East Energy is continuing to work with China Minmetals Corp. ("China Minmetals") to obtain approval for the Company's agreement to acquire a 49% interest in Qinghai Sinomine Resource Development Co., Ltd. (QSRD) from China Minmetals. Discussions are still ongoing between China Minmetals, the other shareholders in Zhong'ao and the Quinghai Government. The agreement has been approved by the TSX Venture Exchange, and requires the approval of the Chinese regulatory authorities to proceed. Details of the agreement are discussed in a press release dated March 15, 2007.

QSRD holds a 26% equity interest in the Zhong'ao Joint Venture. Zhong'ao holds exploration licenses for four blocks of property, including the QSRD exploration license block, in the Jiangcang Basin. Chinese government officials estimate that the Jiangcang Basin contains over 1.7 billion tonnes of metallurgical coal. Zhong'ao also holds a mining license on one of the four blocks, permitting the extraction of 900,000 tonnes per year.

A technical report prepared in compliance with National Instrument 43-101 estimates an inferred resource of 311.5 million tonnes of metallurgical coal in the four blocks that is potentially surface-mineable. For any interested party, the technical report can be viewed through the Company's website or accessing SEDAR. East Energy's potential share of the 311.5 million tonnes of inferred metallurgical coal resource is 39.6 million tonnes.

A 40-hole drilling program is being conducted on the QSRD license area. Drilling is being carried out by QSRD and its parent company, China Minmetals, and is designed to assist in upgrading estimates of the extent and quality of metallurgical coal resources on the property.

"This continuing progress in the development of the QSRD property will augment East Energy's understanding of the geology of the site, giving us a more detailed picture of the structure of the metallurgical coal deposits in the license area," said Howard Ratti, President and CEO of East Energy.

The drill program is being conducted according to Chinese technical requirements, and would be subject to independent verification to be 43-101 compliant.

Acquisition Strategy

East Energy continues to investigate coal projects, including metallurgical coal properties in Qinghai province and in other areas in China. Several of these opportunities exhibit particularly strong potential and are being actively pursued. The Company continues to evaluate both metallurgical and thermal coal property acquisitions in North America.

Worldwide Coal Industry

Meanwhile, demand for coal remains strong both in China and internationally. The annual contract price of metallurgical coal may rise to a record US$140 per tonne by April 1, 2008, up from $98 this year, according to an October, 2007 report issued by Goldman Sachs JBWere Pty Ltd, the Australian affiliate of the world's largest securities firm. Thermal coal is also seeing strong demand. According to the Goldman report, the price of thermal coal may rise 35% to $75 per tonne in 2008, from $56 a tonne this year.

US Registration

The Company is pleased to announce that in early December 2007 it became registered with the United States Securities and Exchange Commission under the 12(g) exemption of the Securities Exchange Act of 1934. This registration will help to broaden the Company's investor base.

About East Energy

East Energy Corp. is a Canadian junior mining company engaged in the acquisition and development of coal properties in China and North America. Additional information is available on the East Energy web site at www.eastenergy.com. East Energy trades on the TSX Venture Exchange under the symbol EEC.

ON BEHALF OF THE BOARD:

Howard Ratti, President and CEO

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are referred to the sections entitled "Risk Factors" in the Company's periodic filings with the British Columbia Securities Commission, which can be viewed at www.SEDAR.com.

The TSX Venture Exchange has neither reviewed nor accepts responsibility for the adequacy or accuracy of this release.

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