DRILL RESULTS FROM NGASAMO HILL AT
                AFRICAN EAGLE'S DUTWA NICKEL PROJECT IN TANZANIA

              Drill assay results from remaining holes at Ngasamo.

·                      Results from all 66 drill holes now received and sent for
resource estimate
·                     59 out of the 66 holes intersected mineralisation
·                     Key nickel mineralised intersections include:
-        75m at 1.42% nickel
-        84m at 1.07% nickel including 30m at 1.64%
-        63m at 1.41% nickel including 45m at 1.71%
-        66m at 1.11% nickel
-        57m at 1.25% nickel including 12m at 2.48%
·                     Key cobalt mineralised intersections include:
-        18m at 0.47% cobalt
-        54m at 0.13% cobalt
-        9m at 0.43% cobalt
-        9m at 0.27% cobalt including 3m at 0.48%
·                      Geostatistical infill  drilling at  Wamangola Hill (Dutwa
Main Deposit) also completed


Africa  Eagle is pleased to report the remaining assay results from its recently
completed  drilling  programme  at  Ngasamo  Hill,  a  part  of its Dutwa Nickel
project, and the appointment of Snowden Mining Industry Consultants in Perth, WA
to undertake a formal resource estimate.

The  Company's Managing Director Mark Parker comments, "We are extremely pleased
with  the drill results  from Ngasamo. They  reveal a deposit  which is somewhat
thicker  than the main Dutwa deposit, and  although the average grade appears to
be  slightly  lower,  we  expect  Ngasamo  will add significantly to the overall
resource base.

"We  have also completed an infill drilling programme at the Dutwa main deposit,
designed  to test the  internal variability of  the mineralisation and allow the
Dutwa main resource to be upgraded to JORC Indicated category.

"Meanwhile,  the nickel  market continues  to show  strength, with prices now up
more  than 40% this  year, backed  by an  increase of 55% year-on-year stainless
steel demand from China."


All  the assay results have now been  received from African Eagle's programme of
66 vertical  reverse circulation (RC) drill holes at Ngasamo, which was designed
to delineate a formal Mineral Resource to JORC Inferred category or better.

Tables  of all mineralised  intersections from Ngasamo  with grades of more than
0.5% nickel  and  0.05% cobalt  have  been  posted  on  the  Company's web site,
together  with a plan  of the grade  x thickness parameter  for each hole, which
provides    an    indication    of    the    form    of    the   resource.   See
www.africaneagle.co.uk/p/ng_drilling.asp
<http://www.africaneagle.co.uk/p/ng_drilling.asp>

Each  hole was drilled through the  blanket-like nickel deposit until it reached
bedrock. Samples were composited over 3m down-hole lengths and assays for nickel
and  cobalt  were  carried  out  at  Humac  Laboratories  in Tanzania, by atomic
absorption spectrometry (AAS). The samples have now been sent for analysis for a
wider  suite of chemical elements, to help in modelling any internal geochemical
domains  within the deposit.   The domain models  of the Ngasamo  and Dutwa Main
deposits  will be  used to  plan a  core drilling  programme to  obtain samples,
representative  of the  deposits and  their variations,  for the  final phase of
metallurgical testing.

The  Ngasamo drill database has been sent to Snowden Mining Industry Consultants
in  Perth,  WA,  for  deposit  modelling  and  generation  of  a formal resource
estimate.  The Dutwa  Main drill  database, including  the results of the infill
programme,  expected soon, will be sent to Snowden for an upgraded deposit model
and  resource estimate. Ngasamo drill samples  will also be sent for preliminary
metallurgical testing to Mintek in South Africa.

With  the  determination  of  a  resource  estimate  at Ngasamo to JORC inferred
standard  or better,  African Eagle  will have  completed its  earn-in of a 35%
interest in the deposit from Ngasamo's owners, Safina a.s. of the Czech Republic
and  its Tanzanian subsidiary Precious Metals Refinery Company Ltd.  Thereafter,
the  Company can increase its equity in Ngasamo to at least 50% and up to 75% by
completing further resource and feasibility work.



Qualified Person

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 www.africaneagle.co.uk/p/glossary.asp


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 77 3336 3501

About African Eagle

Since discovering major oxide nickel deposits at Dutwa in Tanzania, African
Eagle is in transition from a diversified explorer into a nickel mining company.
The Company completed a positive scoping study on the Dutwa deposit in July
2009 and is now working towards a full feasibility study.

African Eagle is evaluating a second promising oxide nickel deposit at Zanzui in
Tanzania, 60km south of Dutwa.

The Company also holds a 49% interest in the Mkushi Copper Mines joint venture
in Zambia, for which a draft feasibility study was completed in Q4 2008. In
addition, it holds a half million ounce gold resource at the Miyabi project in
Tanzania, and a portfolio of gold and base metal exploration assets, including
two projects in the Zambian Copperbelt.

The Company is seeking partners or buyers for its "non-core" copper, gold and
uranium projects.

More information may be found on the Company's website, www.africaneagle.co.uk

African Eagle's oxide nickel projects

The Dutwa oxide nickel project, discovered in mid-2008, consists of two deposits
within blankets of laterite or weathered rock on the tops of low ridges. African
Eagle believes that the deposits together contain around 500,000 tonnes of
nickel with by-product cobalt. Because the deposits lie at surface, mining costs
will be very low.

The deposits lie 100km east of the railhead at Mwanza and close to the main
Mwanza-Nairobi trunk road, a major power line and the shore of Lake Victoria.
The Company holds a 90% interest in the main Dutwa deposit, with option to
acquire 100%, and is earning up to 75% of a second nickel deposit at Ngasamo,
6km to the west.

Since discovering the deposits in June 2008, African Eagle has explored the
project very quickly and cost-effectively, completing within 9 months an interim
JORC-compliant resource estimate based on the drilling to September 2008 and
laboratory metallurgical and mineralogical tests which showed that the deposit
can be processed efficiently by sulphuric acid leaching.

In July 2009, the Company announced the results of a "proof of concept" scoping
study by GRD Minproc, which indicated that the project would be profitable if it
were in production today.  At current nickel prices (~$10 to $11/lb), earnings
over the life of mine would be of the order of $3 to 4 billion on an EBIT basis,
giving an internal rate of return around 30%, after tax. African Eagle has now
begun work towards a definitive feasibility study.

The economic viability of any nickel laterite deposit depends on its metallurgy,
its resource geology and its location. Metallurgical tests have shown that the
Dutwa ore is unusually, perhaps uniquely, amenable to acid leaching, with very
low acid consumption and a very fast leach reaction compared to other nickel
laterites around the world. These characteristics should allow the ore to be
processed at atmospheric pressure using straightforward heap or tank leaching.

In addition to the Dutwa deposits, African Eagle holds the Zanzui nickel
project, which is only 60km from Dutwa and offers potential economies of scale.
Zanzui is possibly as large as Dutwa and preliminary metallurgical tests suggest
that it shares the same fast, low-acid leaching characteristics. The Company is
aware of at least two other, similar deposits in Tanzania.


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