East Energy Corp.
TSX VENTURE : EEC

East Energy Corp.

June 05, 2007 16:50 ET

East Energy Warrant Exercise Adds $3.7 Million to Treasury

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2007) - East Energy Corp. (the "Company" or "East Energy") (TSX VENTURE:EEC) is pleased to report the exercise of 4,926,500 Share Purchase Warrants at a price of C$0.75 for proceeds of C$3,694,875. No commissions or fees were paid on the exercise of the warrants. The Company now has cash and equivalents of approximately C$8.9 million.

With such a strong financial foundation, East Energy eagerly anticipates expanded exploration and development of its highly promising Jiangcang metallurgical coal project, in China's Qinghai Province. Initial resource estimates have been completed for three of the four blocks and indicate an inferred resource of 172.7 million tonnes of metallurgical coal that is potentially surface mineable. In addition, East Energy intends to continue seeking high quality acquisition opportunities in China and North America.

"The funds realized from the exercise of these warrants will assist us with our aggressive exploration program in the Jiangcang Basin," said Howard Ratti, President and CEO of East Energy. "China's steel industry is the world's largest, with enormous metallurgical coal needs. Our primary goal continues to be a rapid move towards production and the monetization of our assets."

STOCK OPTION GRANT

An employee has been granted an option to purchase 60,000 shares of the Company at an exercise price of $0.92 per share for a period of up to five years, expiring June 4, 2012. The grant of stock options is subject to regulatory approval. The securities represented by this grant will be subject to a four-month hold period.

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. The Company is primarily involved in the metallurgical coal market and has a strong focus on China. East Energy holds a purchase option to acquire majority ownership of Qinghai Sinomine Resources Development Ltd. (QSRD) in stages from China Minmetals Corporation. QSRD currently holds a 26% equity interest in the Zhong'ao Joint Venture in the Jiangcang Mining Area of China's Qinghai Province. The members of the joint venture hold exploration licenses for four blocks of property in the area, as well as a mining license permitting the extraction of 900,000 tonnes per year. The Joint Venture Agreement has been approved by the TSX Venture Exchange; it is subject to approval by the Chinese regulatory authorities. Additional information is available on the East Energy web site at www.eastenergy.com.

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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