Exploration in East Africa
January 2015
Cautionary Statement
This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forwardlooking 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: the rules of the TSX Venture Exchange, mineral exploration and development; metal and mineral prices; availability of capital; accuracy
of the Company's projections and estimates; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment
and access; actual results of current exploration activities; government regulation; political or economic developments; environmental risks;
insurance risks; foreign taxation risks, capital expenditures; operating or technical difficulties in connection with development activities; personnel
relations; the speculative nature of strategic metal exploration and development including the risks of 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 the Company's listing application dated July 8, 2013
and Tigray Resources Inc.’s management information circular dated March 28, 2014.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to receipt of all
regulatory and third party approvals, the price of gold; the demand for gold; the ability to carry on exploration and development activities; 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 potential impact on the Company’s strength, depth and value proposition as a result
of the engagement of the investor relations consultants, and 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. The
Company does not undertake to update any forward-looking information that is included herein, except in accordance with applicable securities
laws.
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East Africa Metals at a Glance
Strong Position in
Arabian-Nubian
Shield
• Prospective for gold rich volcanogenic massive sulphide (“VMS”) and orogenic discoveries
• Host to several world class deposits, including Centamin’s Sukari deposit in Egypt (13.4M oz
Au in Measured and Indicated resources1)
Excellent
Jurisdiction
• Ethiopia: geopolitically stable, rapidly growing economy, and mining-friendly framework
• Tanzania: an established mining jurisdiction, Africa’s 4th largest gold producer
Established
Resources
• Terakimti deposit: high grade oxide gold deposit and copper-gold sulphide deposit
• Magambazi deposit: gold deposit with underground and open pit potential
Advanced
Exploration
Projects
• Harvest and Adyabo projects (concessions of 116 sq. km and 312 sq. km, respectively)
• Handeni project (Prospecting Licences of 83.5 sq. km, Mining Licenses cover 9.9 sq. km.)
Strong
Management
• Skilled technical team
• Track record of discovery in new mining districts
Capital Structure
• Working capital position of $15.2M2
• Strong partner in Sinotech Minerals Exploration Co., Ltd. (“Sinotech”), a Chinese based
company with interests in mineral exploration projects around the world
Note: All footnotes can be found in the appendix.
3
Focused on New Discoveries in East Africa
Harvest and Adyabo Projects
• Located in Ethiopia covering 428 sq. km
• Terakimti deposit contains an estimated:
¯ Indicated oxide resource of 24K oz Au @ 2.6 g/t Au
¯ Inferred oxide resource of 61K oz Au @ 4.8 g/t Au
¯ Indicated sulphide resource of 146M lbs CuEq @ 3.98% CuEq3
¯ Inferred sulphide resource of 184M lbs CuEq @ 2.61% CuEq3
• 21 prospective exploration targets
• Exploration work since 2011:
¯ 102 holes totaling 20,191 meters at Harvest project
¯ 44 holes totaling 8,938 meters at Adyabo project
Handeni Project
• Located in Tanzania covering 93 sq. km
• Magambazi deposit contains an estimated:
¯ Indicated resource of 721K oz Au @ 1.48 g/t Au
¯ Inferred resource of 292K oz Au @ 1.36 g/t Au
• Mining licenses received for Magambazi deposit and surrounding area
• Exploration work since 2009:
¯ 471 holes totaling 121,846 meters over a strike length of 1 km have
been drilled
Other Opportunities
• Continually examining other exploration opportunities that leverage core
competencies
Note: All footnotes can be found in the appendix.
4
Arabian-Nubian Shield Overview
•
•
•
•
The Arabian-Nubian Shield is found in Egypt, Ethiopia, Eritrea, Sudan and Saudi Arabia
Next major exploration frontier in Africa with excellent potential for more world class discoveries
Highly prospective for gold-rich orogenic and VMS deposits
Home to several operating mines and many discoveries
5
Select Arabian-Nubian Shield Deposits
Market Cap:
$800M
Market Cap:
$1,200M
Market Cap:
$18,000M
Commodity:
Copper / Zinc
Commodity:
Gold
Commodity:
Copper / Gold
Status:
Production
Status:
Production
Status:
Production
Asset:
Bisha
Asset:
Sukari
Asset:
Jabal Sayid
Location:
Eritrea
Location:
Egypt
Location:
Saudi Arabia
Highlight:
2014E production – 190M
lbs Cu
Highlight:
2014E production –
420,000 oz Au
Highlight:
Production expected in late
2015 with average annual
output of 115M lbs Cu
Market Cap:
Private
Market Cap:
$30M
Market Cap:
$50M
Commodity:
Gold
Commodity:
Copper, Zinc, Gold
Commodity:
Gold
Status:
Production
Status:
Development
Status:
Exploration
Asset:
Hassai
Asset:
Asmara
Asset:
Galat Sufar South
Location:
Sudan
Location:
Eritrea
Location:
Sudan
Highlight:
Production
Highlight:
JV agreement (60/40) with
Eritrean National Mining
Corporation
Highlight:
22.2Mt @ 1.84 g/t Au of
Indicated resources
6.6Mt @ 1.90 g/t Au of
Inferred resources
6
Ethiopia Overview
Ethiopia Highlights
Population:
Ethiopia Mining Activity
96.6 million
Bisha
Asamara
Una Deriam
2013 GDP:
US$46.8B
2013 GDP Growth Rate:
10%
Median Age:
17.6 years
Harvest / Adyabo
Jilaye
• Oldest independent country in Africa
• Fastest growing non-energy economy in Africa
• Economy based on agriculture, but government is
promoting development in manufacturing, textiles,
mining, and energy generation
`
Metekel
Asosa (Dish Mountain)
Tulu Kapi
Lega Dembi
East Sakaro
Dawa Okote
Mining in Ethiopia
• Several gold, copper and potash projects under development
• Mining sector opened to private investors in 1991
• Mining Operations Proclamation came into effect in 2010
¯ 25% corporate tax rate with breaks and holidays
¯ Royalty at discretion of Ministry
¯ Exemption from custom and duties on equipment, machinery, vehicles and spare parts necessary for mineral
operations
¯ Carry forward of losses up to 10 years
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Harvest and Adyabo Projects
8
Harvest and Adyabo Overview
Harvest Project
Ownership
Land Package
Drilling
Complete
• 70% with Ezana Mining Development
• 55% with option to earn in 80%4
• Four contiguous concessions covering over
116 sq. km – Terakimti, Nefasit, Igub, and
Hamlo
• Two contiguous concessions covering 312 sq. km
– Adi Dairo and West Shire
• 102 holes totaling 20,191 meters drilled to
date (at Terakimti, Nefasit, Mayshehagne,
and VTEM09 prospects)
• 30 holes totaling 5,696 meters drilled to date (at
Mato Bula, Mato Bula North, Da Tambuk, and Adi
Gozomo prospects)
• Copper-gold-silver-zinc rich VMS systems
• VMS and orogenic gold deposits, and contains
numerous alluvial, elluvial and bedrock gold
workings as well as several large gold and goldcopper-arsenic anomalies
• Diamond drilling, heliborne VTEM, magnetic
and radiometric survey, ground gravity and
electromagnetic surveys, over 110,000
surface soil, stream and rock chip samples
• Diamond drilling, magnetic and electromagnetic
surveys, over 50,000 surface soil, stream, and
rock chip samples
• Terakimti Au-Ag-Cu-Zn
• VTEM09 Au-Ag-Cu-Zn
• Mayshehagne Au-Ag-Cu-Pb-Zn
• Mato Bula Au-Cu (Zn-Ag-Mo)
• Mato Bula North Au-Cu (Zn-Ag-Mo)
• Da Tambuk Au (Pb, Mo)
Deposit
Exploration
Work
Priority
Targets
Adyabo Project
Note: All footnotes can be found in the appendix.
9
Terakimti Overview
Overview
Terakimti VMS Prospect – Long Section (Looking NW)
• Discovered in 2009
• VMS systems hosted within a sequence of
intermediate volcanic rocks and basalt
• Initial mineral resource estimate
announced on January 17, 2014
Exploration Potential
• Drilling confirms high-grade VMS
mineralization to 265 meters down hole
and 800 meters along strike; remains open
at depth
Metallurgy
• Drill holes profile gold enriched oxide mineralization, copper enriched supergene mineralization, and copper-zinc primary
mineralization
• Oxide mineralization amenable to conventional leaching with 100 micron grind gold recoveries of 75% - 80%
• Locked Cycle Testing on supergene and primary mineralization samples resulted in 90% copper recovery being achieved at a 25%
concentrate grade
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Terakimti Mineral Resource Estimate
Terakimti Deposit Mineral Resource Estimate3,5
Grade
Mineralization
Class
Ore Type
NSR Cut-Off
($/t)
Tonnes
('000s)
Contained Metals
Au
Ag
Cu
Zn
g/t
g/t
%
%
Au
('000 oz)
Ag
('000 oz)
Cu
('000 lb)
Zn
('000 lb)
Indicated
Oxide
25.9
290
2.6
10.5
0.06
0.02
24
98
-
-
Inferred
Oxide
25.9
398
4.8
7.2
0.13
0.07
61
92
-
-
Grade
Mineralization
Class
Indicated
Inferred
Ore Type
NSR Cut-Off
($/t)
Tonnes
('000s)
Contained Metals
CuEq
Au
Ag
Cu
Zn
CuEq
g/t
g/t
%
%
%
Au
('000 oz)
Ag
('000 oz)
Cu
('000 lb)
Zn
('000 lb)
(‘000 lb)
Sulphide
23.9
1,841
1.1
17.5
2.20
1.65
3.98
63
1,033
89,477
66,871
146,645
Sulphide
23.9
2,583
1.0
20.6
1.09
1.42
2.60
80
1,712
62,187
77,101
134,337
Primary
63.9
939
0.8
15.2
0.69
2.92
2.66
25
459
14,198
60,358
49,862
3,522
0.9
19.2
0.98
1.82
2.61
105
2,171
76,385
137,459
184,199
Sub-Total
Inferred
Note: All footnotes can be found in the appendix.
11
Mayshehagne Drill Highlights
Select Mayshehagne Drill Results6
Hole ID
From (m)
To (m)
Interval (m)
Au (g/t)
Ag (g/t)
Cu (%)
Zn (%)
24.00
44.70
20.70
1.10
31
4.97
8.24
28.75
41.55
12.80
1.73
50
7.72
12.72
89.55
93.25
3.70
2.07
13
1.79
3.01
99.00
99.80
0.80
0.48
21
1.96
5.94
HD002
HD010
Note: All footnotes can be found in the appendix.
12
Adyabo Project – Mato Bula Trend Map
13
Mato Bula Drill Highlights
Select Mato
Bula Drill
Results6
From (m)
To (m)
Interval
(m)
Au (g/t)
Ag (g/t)
Cu (%)
53.31
66.82
13.51
15.15
1
0.06
Including
64.45
65.15
0.70
284.50
17
0.04
86.20
98.48
12.28
12.25
1
0.30
Including
93.19
98.48
5.29
22.33
1
0.30
179.75
207.95
28.20
8.50
2
0.24
Including
189.25
206.80
17.55
13.18
2
0.27
And Including
195.80
206.80
11.00
19.55
3
0.35
101.09
124.00
22.91
14.34
0
0.04
Including
112.50
121.00
8.50
36.92
0
0.08
Hole ID
WDM006
WDM007
WMD032
Note: All footnotes can be found in the appendix.
14
Da Tambuk Drill Highlights
Select Da Tambuk Drill Results6
Hole ID
From (m)
To (m)
Interval (m)
Au (g/t)
Ag (g/t)
Cu (%)
Zn (%)
52.75
64.75
12.00
17.34
4
0.32
0.07
52.75
57.75
5.00
40.97
7
0.59
0.06
86.21
95.90
9.69
3.96
2
0.26
0.09
87.21
89.21
2.00
13.25
3
0.09
0.19
123.55
137.10
13.55
4.65
-
0.08
-
123.55
129.10
5.55
10.78
-
0.16
-
ADD002
ADD004
ADD007
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Note: All footnotes can be found in the appendix.
Tanzania Overview
Tanzania Highlights
Population:
49.3 million
2013 GDP:
US$33.2B
2013 GDP Growth Rate:
7%
Median Age:
Tanzania Mining Activity
North Mara
Buhemba
Geita
Bulyanhulu
Tulawaka
17.3 years
Williamson
Buzwagi
Golden Pride
• Africa’s 4th largest gold producer
• Established legal and regulatory framework for mining
companies
• Abundance of unexploited mineral reserves
Magambazi
Mining in Tanzania
• Fiscal Laws Act and Tanzanian Investment act of 1997
¯ 30% corporate tax rate
¯ 4% mining royalty for gold
¯ Exemption of import duty and value added tax on equipment and essential materials up to the first anniversary of the
start of production
¯ Depreciation allowances of 100% on CAPEX
¯ No restrictions on repatriation of profits from mining operations
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Handeni Overview
Overview
• Two contiguous prospecting licenses, PL 4781/2007 and PL
10016/2014, covering 83.5 sq. km
• Two Mining licenses received for the Magambazi deposit
and surrounding area, covering 9.9 sq. km.
• Strike length of 1 km has been drilled
• High grade underground potential
Note: All footnotes can be found in the appendix.
Magambazi Mineral Resource Estimate7
Grade
Contained Metal
Au g/t
Au oz
15,186
1.48
721,300
6,683
1.36
292,400
Mineralization
Class
Tonnes
('000s)
Indicated
Inferred
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Capital Structure
Capitalization
East Africa Metals Ownership
As of October 30, 2014
Share Price
$0.07
Market Capitalization
$7.2 M
Share Structure
Basic Shares Outstanding
102.2 M
Shares issuable from Options (avg. exercise price of $0.16)
Shares issuable from Warrants (avg. exercise price of $0.23)
8.2 M
31.6 M
Fully Diluted Shares Outstanding
142.0 M
Cash and Cash Equivalents2
$14.6 M
Working Capital
2
$15.2 M
LTM Share Price Performance
Source: Capital IQ and SEDI. As of October 16, 2014.
Note: All footnotes can be found in the appendix.
18
Experienced Management Team
Name
Position
Experience
Management
Andrew Lee Smith,
P.Geo
President, CEO
and Director
• Professional geologist with over 25 years of mineral exploration and mine development experience
• Co-founder and Director of True North Gems Inc.
Jeff Heidema,
P.Geo
Vice President
Exploration
• Professional geologist with over 25 years of domestic and international exploration experience
specializing in VMS and archean gold projects
• Experience in management positions with established mining companies including Cominco, Teck
Cominco and Teck exploration groups
Peter Granata, CA
Chief Financial
Officer
• Chartered Accountant with more than 10 years of accounting and financial reporting experience in
Canada and Australia
Business
Development
• Independent businessman with over 15 years of experience working with public companies in the
mining, high-tech, and biotech industries
• Raised ~$250 million throughout career
Nick Watters
Board of Directors
Dr. Jingbin Wang,
P.Geo
Chairman
• President and Chairman of Sinotech Minerals Exploration Co., Ltd.
• 24 years of experience as a leader in the non-ferrous metals industry in China
• Director of Orca Gold Inc.
Dr. Antony
Harwood, P.Geo
Director
• President and CEO of Montero Mining and Exploration
• Economic geologist with over 30 years of experience in the mining industry
David Parsons, CGA
Director
• Vice President, Insurance for Goldcorp Inc.
• Over 25 years of experience in the mining industry
Ge (Anna) Mao, MBA
Director
• Deputy General Manager of Sinotech Minerals Exploration
• General Manager of Beijing Donia Resources
• On the board of several junior resource companies listed in Australia and Canada
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Appendix
20
Presentation Notes
1.
Mineral resource estimate as at June 30, 2013, using a 0.3 g/t Au cut-off grade.
2.
As of June 30, 2014.
3.
October 16, 2014 spot metal prices for gold, silver, copper and zinc, are US$1,241/oz, US$17/oz, US$2.98/lb and
US$1.12/lb, respectively.
4.
Additional 25% interest can be earned by paying:
a) $300,000 cash and the issuance of 500,000 East Africa common shares and 400,000 East Africa warrants on
November 1, 2014; and
b) 550,000 East Africa shares 400,000 East Africa warrants on November 1, 2015.
5.
As disclosed in the Technical Report dated February 14, 2014; effective date January 17, 2014. Full mineral resource
estimate disclosure can be found on the company’s website.
6.
A list of full drill results can be found on the Company’s website.
7.
As disclosed in the Technical Report dated June 11, 2013. The mineral resource estimate for the Magambazi deposit
was prepared by Dr. Sandy M. Archibald, P.Geo, Ian J. Farrelly, P.Geo, James N. Gray, P.Geo, Dr. James A. King,
P.Eng. The cut-off grade used was 0.50 g/t Au.
East Africa Metals Inc.
700-1055 W. Georgia Street
Vancouver, BC V6E 3P3
www.eastafricametals.com
[email protected]
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