East Asia Minerals will sell the Ooshiin Govi uranium property to Compagnie Franaise de Mines et Metaux (CFMM), a subsidiary of Areva NC, for Can$83 million. The sale also includes the Bayan Uul, Elgenii, Ikh Khet and Airag-1 uranium tenements.

East Asia Minerals says: 'The company views CFMM's proposed purchase of the Ooshiin Govi tenements, for more than the current market capitalization of East Asia Minerals Corporation, as absolute validation of East Asia's ability to capture opportunities and maximize shareholder value.

'The preliminary nature of Ooshiin Govi, coupled with results from recent drilling, more appropriately suits the time horizon, risk tolerance and resources of a senior producer, such as Areva.

"We believe that the proposed transaction provides an optimal return of value to the shareholders, and the opportunity to continue receiving value through a strong acquisition and exploration strategy. We also believe that a purchase of this magnitude, by one of the world's leading uranium companies, supports the company's positive assessment of its remaining uranium portfolio, which includes the Ingiin-Nars, Ulaan Nuur and Enger properties.

"The first two of these properties possess historical resources, and Enger returned very strong drill results from our exploration program last year. Hence we consider them to be exceptionally strong assets with which to continue the company's uranium strategy."

East Asia's retained Mongolian assets will be drilled later this northern summer, starting at the company's 100% owned Ingiin-Nars property. The Ingiin-Nars deposit lies south of and continues north-east into the East Asia property, and contains a Soviet-era, P1 category drilled resource of about 2.2 million pounds of contained uranium. The grade averages 0.042% uranium, at a cut off grade of 0.02% uranium, representing a deposit of about 2.4 million tonnes. The average grade of non-category drill intercepts is 0.052% uranium.

East Asia drilling will be designed to quantify the portion of the deposit that lies within the company's property, and to determine the full extent of the strike distance.

Additionally, the mineralization remains open to the immediate north-east of the drilled resources where Soviet-era data suggests the presence of another mineralized body that may be as large, or larger, than the drilled Ingiin-Nars deposit.

East Asia owns 100% of Ulaan Nuur, a partially defined, potentially significant deposit of stratiform sandstone-hosted uranium mineralization. Limited drilling during the Soviet era outlined mineralization ranging in thickness from 0.1 to 3.5 metres and grading between 0.03% and 0.184% uranium. The mineralization was not fully defined nor closed off.

The Enger property includes a number of uranium mineralized zones that were identified from Soviet information and range in thickness from 1.7 to 6 metres, and grade from 0.056% to 0.19% U3O8 (high of 0.65 metres @ 0.549% U3O8). Results from the 2006 East Asia drill program significantly improved on grades and widths of the mineralization reported by the Soviets.