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Re: News Releases - Wednesday, September 05, 2007
East Asia Minerals Announces Shareholder Approval to Sell Ooshiin
Govi Property for CAD$83 Million to CFMM (A Subsidiary of Areva
NC)
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EAST ASIA MINERALS ANNOUNCES SHAREHOLDER APPROVAL TO SELL OOSHIIN GOVI
PROPERTY FOR CAD$83MILLION TO CFMM (A SUBSIDIARY OF AREVA NC)
For Immediate release, September 5, 2007 TSXV: EAS
VANCOUVER, B.C. -- Wednesday, September 5, 2007 -- East Asia Minerals
Corporation (TSXV-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 Fran�aise 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 15.6 g/t gold and 195 g/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.
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FOR FURTHER INFORMATION, visit the Company's website at
www.EAminerals.com, or contact:
Michael Hawkins, President
Vancouver
T: +1-778-997-2183
E: Hawkins@EAminerals.com
or
Nick Kohlmann, Corporate Communications
Toronto
T: +1-416-792-8734
E: Kohlmann@EAminerals.com
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Copyright (c) 2007 EAST ASIA MINERALS CORPORATION (EAM) All rights
reserved. For more information visit our website at
http://www.eaminerals.com/ or send mailto:info@eaminerals.com
Message sent on Wed Sep 5, 2007 at 3:06:26 PM Pacific Time
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