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EAST ASIA MINERALS ANNOUNCES INTENTION TO SPIN OUT ASSETS TO SHAREHOLDERS


For Immediate Release, March 4, 2011 TSXV: EAS

VANCOUVER, B.C. -- Friday, March 4, 2011 -- East Asia Minerals Corporation (TSXV-EAS) is pleased to announce that its Board of Directors has today approved the implementation of a series of value enhancing transactions that, subject to applicable regulatory and other approvals, will result in eligible East Asia shareholders owning shares in four (4) separate companies.

East Asia Minerals has recently set up three new wholly owned subsidiaries to which it will transfer most of its non-Miwah assets. The Company expects to undertake an internal reorganization and work with the appropriate authorities and its joint venture partners to transfer the non-Miwah assets from East Asia Minerals to these new wholly owned subsidiaries:

• Sangihe Gold Corporation is to become a precious metals exploration company focused on Eastern Indonesia. It will initially hold East Asia Minerals' 70% equity interest in the Sangihe gold project in North Sulawesi, Indonesia. The Sangihe project has an NI 43-101 compliant inferred resource of 1,075,263 ounces of gold equivalent (news release September 22, 2010).
• Barisan Gold Corporation is to become a gold-copper porphyry exploration company focused on Indonesia. It will initially hold East Asia Minerals' 80% equity interest in the Barisan gold-copper porphyries (including the Abong epithermal gold deposit) and East Asia Minerals' 75% equity interest in the Takengon gold-copper project, all located in Aceh Province, Indonesia. The Upper Tengkereng prospect at Barisan returned an interval of 40 metres at 1.46g/t gold and 0.48% copper within a 691-metre fully mineralized hole with 0.39g/t gold and 0.30% copper in UTD002 (news release January 17, 2011).
• East Asia Energy Corporation is to become a Mongolian mining and energy company. It will initially hold all of East Asia Minerals' Mongolian assets, which consist of early stage uranium and phosphate projects.

The directors and senior management teams of Sangihe Gold, Barisan Gold and East Asia Energy will consist of current directors and senior officers of East Asia Minerals.

Upon completion of the proposed internal reorganization and subject to applicable regulatory approvals, East Asia Minerals intends to distribute, by way of dividend-in-kind to current eligible East Asia shareholders, all of the shares in Sangihe Gold, Barisan Gold and East Asia Energy held by East Asia Minerals.

Immediately following distribution of the dividend-in-kind, Sangihe Gold and Barisan Gold intend to conduct rights offerings to raise the balance of funds necessary to conduct their near-term exploration and development activities. The rights offerings will entitle eligible shareholders to acquire additional shares in Sangihe Gold and Barisan Gold.

Michael Hawkins, President, CEO & Director of East Asia Minerals, commented: "With the continuing development of the large Miwah gold deposit, the significant value of our other assets has not been recognized. These transactions will allow our other assets, which we believe are potentially equally attractive to Miwah, to create their own market and raise their own funds to further exploration and add shareholder value."

Mr. Hawkins added: "We strongly believe this is a clear case where the sum-of-the-parts is significantly greater than the current market value of East Asia Minerals. These transactions will create market values for the other assets which we believe are quite significant given the discoveries made to date and the remaining economic potential."

East Asia Minerals anticipates completing these transactions by June 2011. The initial internal reorganization is expected to be completed in March 2011, following which East Asia intends to file preliminary prospectuses with the Canadian securities regulatory authorities for Sangihe Gold, Barisan Gold and East Asia Energy which will contain detailed information on the new companies as well as the terms of the dividends-in-kind and rights offerings. Completion of the proposed transactions is subject to a number of conditions including the approval of the TSX Venture Exchange and other applicable securities regulatory authorities.