East Asia Minerals Corporation
TSX VENTURE : EAS

East Asia Minerals Corporation

September 05, 2007 18:10 ET

East Asia Minerals Announces Shareholder Approval to Sell Ooshiin Govi Property for CAD$83million to CFMM (a Subsidiary of Areva NC)

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 5, 2007) - East Asia Minerals Corporation (TSX VENTURE:EAS) is pleased to announce that shareholder and TSX-Venture Exchange approval has been received for 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. The transaction will be facilitated through the sale of its wholly owned Mongolia subsidiary, EAM Energy LLC (EAME), and includes 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. The closing agenda is being finalized and the closing date for the sale will be announced when determined between CFMM and East Asia.

As announced July 27, 2007 on the signing of the agreement with CFMM, the Company intends to declare a dividend to its registered shareholders of at least 85% of the after-tax proceeds of sale. The final calculated dividend will be subject to net corporate tax considerations, transaction costs, and the Board of Directors' determination of the Company's future capital requirements. Notice of the value of this dividend, the setting of a record date, and additional details shall be provided following the closing of the transaction and approval of the dividend notice filing by the Exchange.

"CFMM's purchase of the Ooshiin Govi tenements is a unique opportunity for East Asia shareholders and the Company," stated Michael Hawkins, East Asia Minerals' President. "We believe that the proposed transaction 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."

Haywood Securities Inc. acted as financial advisor to East Asia and Gowling Lafleur Henderson LLP was its legal advisor. The financial advisor to CFMM was RBC Capital Markets Inc. and legal advisor was Blake, Cassels & Graydon LLP.

Retained Mongolian Uranium Assets

Validation drilling of historic Soviet results has commenced at the Company's 100% owned Ingiin-Nars uranium property (August 1, 2007 news release). The Ingiin-Nars Deposit lies south of and continues northeast into the East Asia property, and contains a Soviet-era, P1 category drilled resource of approximately 1,000 tonnes (2.2 million pounds) of contained uranium. Following this, the drill will be moved to undertake similar validation drilling at its 100% owned Ulaan Nuur property (May 3, 2007 news release), which contains a Soviet calculated projected resource (P2 category) of 10,000 tonnes (22 million pounds) of contained uranium. The current program will finish at the Company's 100% owned Enger property (June 26 and July 6, 2006 news releases) where results from the 2006 East Asia drill program included 2.5 metres of 0.410% U3O8 metres in hole ENDD003, 2.5 metres of 0.232% U3O8 in hole ENDD002, and 13.5 metres of 0.108% U3O8 in hole ENDD005. The mineralization was not closed off.

Indonesian Exploration Update

In Indonesia, the company has commenced validation and step-out drilling at the Sangihe property (August 30, 2007 news release) where historic work resulted in several significant drill intercepts including 91.3 metres starting at 29 metres with 2.45g/t gold, 0.42% copper and 12.0g/t silver, and trench results of up to 34.8g/t gold over 14 metres (July 17, 2007 news release). Recent trenching by the Company encountered 7.8 metres grading 15.6g/t gold and 195g/t silver at the south end of the prospect. Following Sangihe the drill rig will be moved to begin validation drilling of the Aceh portfolio.

Lionel Martin, P.Geo, the designated QP within the meaning of 43-101, has reviewed and approves the content of this release. EAS has not verified the classification of the historic resource references and is not treating them as NI 43-101 defined resources verified by a QP. Although the historical references of resource potential are relevant to recognizing the potential of the Ingiin-Nars and Ulaan Nuur Properties, they should not be relied upon.

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 seven 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 45,875,208 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