Project Update - Miyabi

MIYABI GOLD PROJECT, TANZANIA African Eagle Resources plc announces that Randgold Resources, its joint venture (JV) partner on the Miyabi Gold Project in Tanzania, has given the Company notice of withdrawal from the JV. Commenting, African Eagle's Managing Director Mr Parker said "Randgold has indicated that this decision is part of its intention to focus exploration efforts on West Africa. We are pleased with the investment and progress made at Miyabi by Randgold under the JV. Now that African Eagle has regained full control and ownership of the project, we will now resume work building on the existing gold resources, using the extensive results of the regional exploration, geological drilling and structural modelling generated by Randgold's team over the past 15 months, together with the gold mineralised targets identified from our own exploration. "Randgold's exploration at Miyabi was directed principally at testing their conceptual deposit model and was not intended to increase the existing 0.5Moz resource in the Miyabi Gold Corridor. This will now be our focus, as African Eagle's geologists remain convinced that there is good potential for a deposit of 1Moz or more at Miyabi. A number of targets in the Corridor, including intercepts of 3m at 6.94 g/t gold, 3m at 6.70 g/t and 9m at 0.8 g/t from previous African Eagle drilling outside the current resource, were not evaluated systematically under Randgold's management. African Eagle will consider new partners for Miyabi and will follow up a number of approaches which it could not pursue until now". The Miyabi project area contains a major shear zone gold system which forms a 7km x 2km gold-bearing corridor. Although only part of the system has been drilled to date, African Eagle has been able to define a JORC-standard resource of 520,000oz of gold. Metallurgical tests have shown that the gold can readily be extracted by conventional leaching. The Company holds licences covering more than 500km² surrounding the main corridor and has defined numerous other targets from regional exploration. Qualified Person (AFE) Information in this report relating to exploration results is based on data reviewed by Mr Christopher Davies BSc, MSc, DIC, FSEG, FAusIMM, Operations Director for African Eagle, who is a Fellow of the Australasian Institute of Mining and Metallurgy, has more than 27 years relevant experience in mineral exploration and is a Qualified Person under AIM rules. Mr Davies consents to the inclusion of the information in the form and context in which it appears. Technical terms A glossary of technical terms used by African Eagle in this announcement and other published material may be found at For further information: Mark Parker Managing Director African Eagle +44 20 7248 6059 +44 77 5640 6899 Nicola Marrin Seymour Pierce Limited, London Nominated Adviser + 44 20 7107 8000 Charmane Russell Russell & Associates, Johannesburg + 27 11 8803924 +27 82 8928052 Ed Portman / Leesa Peters Conduit PR, London +44 20 7429 6607 +44 (0) 7733 363 501 About Miyabi The Miyabi Gold Project lies in the southwest part of the Lake Victoria Goldfield of Tanzania, about 50km west-southwest of Kahama township in Shinyanga District. The multi-zoned gold system at Miyabi, discovered by African Eagle's geochemical prospecting team, forms a corridor around 7km long by 2km wide and is associated with a major shear zone through greenstone and granitic rocks. To date, African Eagle's drilling has delineated five principal orebodies: Faida, Shambani Main and North, Ngaya and Kilimani. In early 2006, the Company commissioned SRK Consulting Ltd to conduct a formal resource estimate based on all drill results to date. The total JORC compliant Mineral Resource was estimated to be 12.4Mt at a grade of 1.3g/t, containing 520,000 ounces of gold, using a cut-off grade of 0.5g/t, which is appropriate to Tanzanian deposits of the Miyabi type. Of this, 71% is in the Indicated category. Independent metallurgical testing of systematically selected gold-bearing drill samples representative of all of the principal mineralised zones at Miyabi showed that standard leaching recovers 95% of the gold from the ore. The potential for adding to the gold resource at Miyabi is very good, with many targets identified from geophysical and geochemical surveys within the main mineralised corridor remaining to be drilled, and African Eagle believes that the project could hold at least one million ounces. The Company's prospecting licences also cover more than 500 square kilometres of highly prospective granite-greenstone terrain around the main mineralised corridor and regional exploration of these areas has identified several promising targets. About African Eagle African Eagle is a diversified mineral exploration and development company operating in eastern and central Africa. The Company's principal advanced projects are the Mkushi Copper Mines project in Zambia, for which a Feasibility Study will be completed in Q4 2008, and the Miyabi gold project in Tanzania, at which the Company has defined an estimated half-million ounce gold resource. The Company also holds a large well-balanced portfolio of promising earlier stage gold and base metal projects, including the Ndola and Mokambo copper projects. Zambia, Tanzania and Mozambique, the sites of African Eagle's projects, are all countries which have highly prospective geology, relatively low above-ground risks and track records of successful major investments in the metals and minerals industries. African Eagle specialises in project generation and exploration. To take its discoveries into production, it seeks to sign up industry partners with records of successful mine development. These joint ventures and, in time, the revenue from advanced projects, will finance future exploration and new discoveries. ---END OF MESSAGE---