East Africa Metals, Inc. · TSXV:EAM
East Africa Metals — Investor Presentation (March 2020)
32 slides from East Africa Metals's investor presentation, March 2020
Slide 1: East Africa Metals
East Africa Metals Exploring and Developing Gold Projects in Africa An Exploration Company with a Pathway to Cash Flow and Self-funding Presented March 2020 TSX-V: EAM • Frankfurt: EA1.F • US OTC: EFRMF • EastAfricaMetals.com
Slide 2: Introduction: Gold Resources of 1,636,000 oz. Indicated and 1,269,000 oz. Inferred
INTRODUCTION Gold Resources of 1,636,000 oz. Indicated and 1,269,000 oz. Inferred* East Africa Metals (EAM) is a Vancouver-based company listed on the TSX Venture Exchange. Uniquely positioned as an exploration company with a pathway to cash flow and self-funding. Through a focus on mineral explorat
Slide 3: Driving Value Creation Through Exploration
INTRODUCTION Driving Value Creation Through Exploration Ethiopian Mining Projects • Current combined gold deposits with 915,000 oz. indicated and 977,000 oz. inferred* • EAM has been granted three Mining Licenses Harvest & Adyabo • One for Harvest and two mining licenses for Adyabo – Projects, Ethio
Slide 4: Growth Through Exploration, Discovery and Development
INTRODUCTION Growth Through Exploration, Discovery and Development • Growth through discovery, operations, and de-risking Competitive Advantage • Development partners to provide vertically • Increase resource based through exploration and integrated exploration and mining company discovery • Four pe
Slide 5: A Pathway to Cash Flow and Self-funding
FUTURE OPPORTUNITY A Pathway to Cash Flow and Self-funding The Benefits of the Partnership The Opportunity • Competitive advantage • Exploration, discovery and resource growth • Vertically integrated Exploration and Mining Company • Development and operations with cash flow • Profiles of the complim
Slide 6: Risk Mitigation
FUTURE OPPORTUNITY Risk Mitigation • Country / sovereign risk – Mitigated because mining licences have been granted – Political capital developed through corporate social responsibility – Engagement of local, regional and federal governments – Strong relationships with Canadian foreign services • Fi
Slide 7: Market Capitalization vs. Asset Value
FUTURE OPPORTUNITY Market Capitalization vs. Asset Value “Value Gap” EAM market value is defined by the terms of the transaction: Current Market Cap • Current EAM market cap discounted to (@ (@ CA$0.26/share) CA$0.14/share) Asset Value; • Discount largely attributable to risk; Current asset Value –
Slide 8: Marketing and Promotion
FUTURE OPPORTUNITY Marketing and Promotion • Achieve recognition of company’s full value in the marketplace • Marketing and Promotion Agenda – Produce a new website and new marketing material (done) – Identified a receptive audience in Europe – Target audience with advertising and promotion – Contin
Slide 9: Guocheng Holdings and Tibet Huayu Mining Co.
CORPORATE PARTNERS Guocheng Holdings and Tibet Huayu Mining Co. • Founded in 2017, Guocheng Holdings is headquartered in Beijing and has registered capital of 5 Billion CNY, and is listed on the main board of Shenzhen Stock Exchange. • Guocheng Holdings is well capitalized and focused on key investm
Slide 10: Ethiopia: An Emerging Gold Sector
ETHIOPIA An Emerging Gold Sector EASTAFRICAMETALS.COM | PAGE
Slide 11: Federal Republic of Ethiopia
ETHIOPIA Federal Republic of Ethiopia Ethiopia and Neighbouring Key Projects • Infrastructure – US$71B investment in new transportation and energy Eritrea Emba Derho, Debarwa infrastructure in the region Bisha (Cu,Zn,Au)z (Cu,Zn,Au,Ag) – Between 2010 and 2015 Danakhil (Potash) – By the World Bank to
Slide 12: Company History in Ethiopia to 2020
ETHIOPIA Company History in Ethiopia to 2020 • $30 million spent on exploration • Over 1.89 M ounces – $16/ounce discovery cost versus the global average of $147 • First mover strategy – cheap, faster discoveries • Trading geological opportunity for country risk • Being able to manage the country ri
Slide 13: Ethiopian Projects – Current Status
ETHIOPIA Ethiopian Projects – Current Status • The Company previously signed a diamond drilling contract for up to 10,000 metres. • The Phase 1 drilling program has been initiated and equipment has begun being deployed to support the campaign. • Based on the recently completed sale of the 70% intere
Slide 14: Ethiopian Projects – Ownership Status
ETHIOPIA Ethiopian Projects – Ownership Status • Metal recoveries applied based on preliminary economic assessment study as disclosed (April 30, 2019) – EAM owns 30% Net Profits Interest on the Mato Bula and Da Tambuk Projects through its Ethiopia subsidiary Tigray Resources Inc. • Metal recoveries
Slide 15: Adyabo Property – Current Status
ETHIOPIA Adyabo Property – Current Status • Halima Hill I.P. – A high priority target that represents a compelling target as a large, I.P. chargeability anomaly extending laterally 500 metres south beyond the established Mato Bula mineralization. The currently defined copper/gold mineralization incl
Slide 16: Adyabo Property, Mato Bula and Da Tambuk – Drill Results
ETHIOPIA Adyabo Property, Mato Bula and Da Tambuk – Drill Results (1) Metal recoveries applied based on preliminary economic assessment study as disclosed April 30, 2019. References on page 31 EASTAFRICAMETALS.COM | PAGE 16
Slide 17: Harvest Property, Terakimti – Current Status
ETHIOPIA Harvest Property, Terakimti – Current Status EAM identified a corridor of anomalous surface geochemistry between the Terakimti deposit and the VTEM09 prospect (a 6 km separation). The VTEM09 prospect has yielded a number of precious metal-rich VMS related intersections, including 24.06 metr
Slide 18: Harvest Property, Terakimti
ETHIOPIA Harvest Property, Terakimti Proposed Target Areas for Deep EM Testing EASTAFRICAMETALS.COM | PAGE 18
Slide 19: Harvest Property, Terakimti – Drill Results
ETHIOPIA Harvest Property, Terakimti – Drill Results (1) Metal recoveries applied based on preliminary economic assessment study as disclosed April 30, 2019. (2) Metal recoveries not applied as a preliminary economic assessment study has not been completed or disclosed. (3) EAM owns 70% interest in
Slide 20: Tanzania: Africa's Third Largest Gold Producer
TANZANIA Africa’s Third Largest Gold Producer EASTAFRICAMETALS.COM | PAGE
Slide 21: United Republic of Tanzania
TANZANIA United Republic of Tanzania • Ranks as one of the best overall risk profiles in Africa* • Mining tradition since 1990 with recent revisions to mining act creating new opportunities • Favourable government policies and low royalty of 4% vs. 12% in South Africa • Stable democratic government,
Slide 22: Handeni / Magambazi – Schematic Map of Tanzania Craton
TANZANIA Handeni / Magambazi – Schematic Map of Tanzania Craton • Magambazi ridge outcrops 170 metres along a one km drill strike-length and has strong potential for an economic mining operation. • The main characteristics include: topographic advantage; favourable geometry; excellent recoveries; wi
Slide 23: Handeni / Magambazi – Mineral Resource Block Model
TANZANIA Handeni / Magambazi – Mineral Resource Block Model • Magambazi ridge outcrops 170 metres • Strike length defined along one kilometre of drilling • Hosts potential for an economic mining operation, characterized by: – Topographic advantage – Favourable geometry – Excellent recoveries – Favou
Slide 24: Handeni / Magambazi – Exploration Detailed Results
TANZANIA Handeni / Magambazi – Exploration Detailed Results • Mineral resource estimate – using 0.5 g/t cutoff – contains: – 15.2 million tonnes grading 1.48 g/t in indicated, totalling 721,300 ounces – 6.7 million tonnes grading 1.36 g/t in inferred, totalling 292,400 ounces (2) Metal recoveries no
Slide 25: Handeni / Magambazi – Economic Analysis
TANZANIA Handeni / Magambazi – Economic Analysis • PEA done to evaluate the economic viability of Magambazi • Includes capital and operating cost estimates, and preliminary production schedule. • And design and field work, metallurgical testing, geotechnical assessment, mill flow-sheet design, econo
Slide 26: Management: Experienced Exploration & Mining Team
MANAGEMENT Experienced Exploration & Mining Team EASTAFRICAMETALS.COM | PAGE 26
Slide 27: Management
EXPERIENCED TEAM Management Andrew Lee Smith P.Geo, ICD.D, President & CEO Denis Dillip President Canaco Tanzania • Professional Geologist who has over 25 years of • With over 10 years experience in gold exploration, experience successfully exploring, developing, and Denis over-sees the planning and
Slide 28: Board of Directors
EXPERIENCED TEAM Board of Directors Dr. Jingbin Wang P.Geo, Chairman David Parsons CGA, Director • Dr. Wang is Executive Director of China • Until 2016 David served as VP, Insurance of Goldcorp Inc. and has over 30 years of experience in the gold Nonferrous Metals Resource Geological Survey mining i
Slide 29: Mining Advisory Committee
EXPERIENCED TEAM Mining Advisory Committee Sean I. Waller P.Eng., Director and Chair of Technical Jay Melnyk P.Eng Development Committee • 25 years of international and domestic mining • See bio in Board of Directors section. engineering experience in open-pit mines, and Peter J. Hawley BSc, BEng, P
Slide 30: Public Company Market Profile
MARKET PROFILE Public Company Market Profile Market Metrics Share Price C$ 0.15 52 Week High-low C$ 0.11 – C$ 0.26 Market Capitalization $ 27M Share Capital Basic Shares Outstanding 180 M Shares issuable from Options and Warrants 46.1 M Fully Diluted Shares Outstanding 226.1 M Financial Metrics Cash
Slide 31: Cautionary Statement & References
DISCLAIMER Cautionary Statement & References This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipate", "believe",
Slide 32: Contact Information
CONTACT Contact Information East Africa Metals Inc. (Corporate ) Nick Watters 1100-595 Howe Street Business Development Vancouver, BC V6C 2T5 Mobile: +1-250-818-4640 Canada Email: nwatters@eastafricametals.com Tel: +1-604-488-0822 investors@eastafricametals.com East Africa Metals Inc. (Mailing) PO B
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