In a letter to shareholders East Asia Minerals" president Michael Hawkins has declared the $83 million sale of Mongolian uranium properties as being the largest ever case sale for exploration stage properties on the Toronto Stock Exchange.

The company sold its Mongolian uranium properties to a subsidiary of the French nuclear giant Areva.

Michael Hawkins says: "The majority of the sale properties were acquired less than 12 months ago and East Asia had expended less than $2 million on their acquisition and exploration.

"The transaction provides both an immediate return of tangible value to shareholders and the capital required to continue the company's aggressive exploration, acquisition and growth strategy.

"The transaction was unique in that East Asia retained the most advanced projects of its uranium portfolio, including the Ingiin Nars and Ulaan Nuur properties that contain non-43-101 compliant, Soviet era prognostic resources of about 25 million pounds of uranium in an environment potentially amenable to in situ leach extraction.

"We view the exploration potential of these projects highly and are drilling to confirm their potential. While we are yet to receive assay results, indications from the field crew, supported by down-hole geophysical data, are that our results will generally demonstrate the veracity of the Soviet era data."

Meanwhile the company reports that drilling at the Sangihe Project in Indonesia continues to extend the Bawone Prospect.

One drill hole intersected 31.6 metres of 3.75 grams/tonne gold, including 21.6 metres of 5.02 grams/tonne from 3.4 metres depth. Another encountered 100 metres of 0.86 grams/tonne gold, with sampling ending in 3.26 grams/tonne gold near the end of hole in a newly recognized mineralization type.

The company believes these results indicate the presence of a potentially significant near surface epithermal gold mineralized zone of at least 80 metres width, open along strike in both directions and overlying possible porphyry-style mineralization.

Michael Hawkins says: "We continue to be greatly encouraged by the Bawone Prospect and other gold-copper mineralized zones on the Sangihe Property. The gold mineralization remains consistent over great widths and we are confident we will continue to enhance the potential of the Bawone Prospect, while opening up other prospects such as Binebase and Brown Sugar.

"We are well on track to start drill definition for 43-101 compliant resources at Sangihe during 2008."

East Asia intends to move the drill rig to the Binabase Prospect, about 1.2km north of Bawone, to test recently trenched gold zones in areas of interpreted feeder structures where up to 32 metres of 4.18 grams/tonne gold were encountered. A preliminary program of five drill holes for 400 to 500 metres of core drilling is planned.

Induced polarization surveying is also beginning to enhance understanding of the shallow covered geology between the Bawone and Binabase Prospects, and add to the understanding at the Brown Sugar and Bonzos Zones where recent East Asia drilling encountered 16 metres of 2.7 grams/tonne gold, 400 metres south-west of Bawone. www.eaminerals.com