SCOPING STUDY REPORT ON DUTWA NICKEL PROJECT
                DELIVERED TO AFRICAN EAGLE MANAGEMENT

                  Work started on Feasibility Study


*                      Report conclusions indicate that project would
  be profitable if operating today
*                      Sensitivity analysis shows significant project
  upside, based on reasonable economic parameters
*                      African Eagle begins work on feasibility study

African Eagle announces that it has now received the full Scoping
Study report on the Dutwa Nickel Laterite Project in Tanzania,
undertaken by GRD Minproc of Perth, Australia, and confirms that work
on the feasibility study is now beginning.

African Eagle's Managing Director Mark Parker commented, "Using
current metals prices and recent long-term forecast prices, the
investment case for the project is very strong.  The study indicates
that if Dutwa were in production today, it would be making a
comfortable profit. The report's conclusions allow the Company to
examine further aspects of the project, in particular:

*          the potential upside at metals prices higher than base
  case prices
*          opportunities to improve the "bottom line" still further
  by cost reductions and revenue optimisation."

"In the context of a gold project, at today's metal prices the Dutwa
nickel project is approximately equivalent to a nine million ounce
gold deposit in "metal in the ground" value terms and our discovery
cost to date of US$7.50 per tonne of nickel is equivalent in value
terms to a gold discovery cost of about US¢35 per ounce, just 1/70th
of the long-term gold industry average of US$25/oz."


Following the Company's initial announcement of the "proof of
concept" scoping study results on 24 June 2009, the final report now
delivered shows the potential upside at metals prices higher than the
base case and allows the Company to begin work to improve the "bottom
line" by reducing costs and optimising revenues.

Recent consensus among a number of analysts is that nickel prices are
likely to improve over the long term. For example, in an analysis
published on 25 June 2009, BMO Research forecast a long-term price of
US$8.50/lb.

As a potentially low-cost producer, the upside for the Dutwa project
is considerable if nickel prices are above the $7/lb used in the base
case.  The following table shows the key metrics for several upside
cases, including the $8.50 BMO long-term forecast and today's prices
of $7.68/lb nickel and $18/lb cobalt (27 July 2009).



+-------------------------------------------------------------------+
|   Ni price | US$/lb |      8.50 |   7.68 |  7.50 |   7.00 |  6.50 |
|------------+--------+-----------+--------+-------+--------+-------|
|   Co price | US$/lb |     15.00 |  18.00 | 15.00 |  10.00 | 10.00 |
|------------+--------+-----------+--------+-------+--------+-------|
|    Average |  $M/yr |       130 |    110 |   100 |     87 |    71 |
|       EBIT |        |           |        |       |        |       |
|------------+--------+-----------+--------+-------+--------+-------|
|    Pre-tax |      % |        28 |     23 |    22 |     18 |    14 |
|        IRR |        |           |        |       |        |       |
|------------+--------+-----------+--------+-------+--------+-------|
|   Post-tax |      % |        24 |     20 |    18 |     15 |    12 |
|        IRR |        |           |        |       |        |       |
|------------+--------+-----------+--------+-------+--------+-------|
|    Pre-tax |     $M |       554 |    390 |   336 |    230 |   117 |
|        NPV |        |           |        |       |        |       |
|------------+--------+-----------+--------+-------+--------+-------|
|   Post-tax |     $M |       367 |    247 |   210 |    130 |    47 |
|        NPV |        |           |        |       |        |       |
|------------+--------+-----------+--------+-------+--------+-------|
|       Case |        |       BMO |     27 |       |   Base |       |
|            |        |  forecast |   July |       |   case |       |
+-------------------------------------------------------------------+




+-------------------------------------------------------------------+
| Base case:                           | Abbreviations:             |
|                                      |                            |
| Nickel price = US$ 7/lb              | EBIT = Earnings before     |
| ($15,430/tonne)                      | interest and tax           |
| Cobalt price = US$ 10/lb             | IRR = Internal Rate of     |
| Discount rate = 10%                  | Return                     |
| Transport cost = US$100/tonne        | NPV = Net Present Value    |
| (8¢/tonne/km)                        | DCF = Discounted cash flow |
| Tax rate = 30%, fiscal incentives    | analysis                   |
| not accounted                        |                            |
| Royalty = 3%                         | All numbers stated to 2    |
|                                      | significant digits         |
| The financial modelling was          |                            |
| conducted in US dollars with an      |                            |
| estimated accuracy of ±30%           |                            |
|                                      |                            |
+-------------------------------------------------------------------+


The Study indicates that Dutwa, if it were in production today, would
be profitable. Earnings, on an EBIT basis, would be of the order of
$110 million per annum on average over the life of mine, giving an
internal rate of return around 20%.

To provide indicative economics and demonstrate "proof of concept" at
this stage, the Study adopted a fairly broad brush approach to many
of the costs with GRD Minproc estimating individual capital and
operating costs to ± 30%, based on their considerable experience with
nickel laterites. These variables will be determined with more
accuracy and confidence during the forthcoming feasibility work.

The Study identified several key areas where further testwork and
detailed study are especially likely to result in improvements to the
"bottom line" or to important gains in confidence.  These areas
include:


  * Improved global deposit model and the potential for early
    "high-grading".  The Ngasamo resource will be drilled and
    incorporated into a more sophisticated global resource model and
    mining plan.  From this, it will be possible to establish whether
    richer ore can be mined first, giving increased early cash-flow
    and an improved NPV.
  * Ore beneficiation and project scale. The capital and operating
    costs of the plant would be reduced if mechanical beneficiation
    of the ore prior to leaching yields a smaller tonnage of richer
    material for processing through the plant.
  * Advanced leaching testwork. Column and vat leach tests at bench
    and pilot scale will determine the best operating conditions to
    optimise nickel extraction, including acid concentration,
    residence time and temperature.
  * Reagent cost reductions.  The cost of reagents, notably sulphur
    and lime, will be a significant component of operating costs and
    profitability will increase considerably if these costs are
    minimised.  Transport is a substantial part of the reagent costs
    and ways to minimise this will be investigated, as will the
    availability of more local sources, particularly of lime.
  * More sophisticated fiscal and economic modelling.  Tanzania
    offers a number of tax incentives for exploration and mine
    development, which were not fully accounted in the Study economic
    model.


While the Company is raising funds to address these activities and
studies in order to progress the project towards feasibility, it has
already committed some of its current cash reserve to start the work
with further metallurgical testing having commenced on drill core
samples at Mintek laboratories in South Africa. The Company will also
start resource drilling at Ngasamo in September.


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

African Eagle is a diversified mineral exploration and development
company operating in eastern and central Africa. The Company's
principal advanced assets are the Dutwa nickel laterite discovery in
Tanzania, where the Company completed a scoping study in June 2009,
and its 49% interest in the Mkushi Copper Mines joint venture project
in Zambia, for which a draft feasibility study was completed in Q4
2008.

African Eagle is evaluating a second promising nickel laterite
deposit at Zanzui in Tanzania and has defined a JORC gold resource
estimated at half a million ounces at its Miyabi gold project in
Tanzania. The Company holds a well-balanced portfolio of promising
earlier stage gold, copper, platinum and uranium projects, including
the Ndola and Mokambo projects in the Zambian Copperbelt and the
Igurubi gold project in Tanzania.

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.

In December 2008, African Eagle resolved to prioritise the Dutwa
project, because the Board believes that, of all the Company's
projects, it offered the greatest potential to add value. To take its
other discoveries into production, African Eagle is seeking industry
partners with records of successful mine development, by means of
joint ventures, farm-ins, spin-outs or other mechanisms.

About the Dutwa Project

African Eagle has discovered a significant nickel laterite deposit in
the Dutwa project area in the Lake Victoria Goldfield.  Within
Tanzania, the project is favourably situated 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.

Since the discovery of the Dutwa nickel deposit in June 2008, African
Eagle has explored the project very quickly and cost-effectively,
including resource drilling and an independent resource estimate;
laboratory metallurgical and mineralogical tests which revealed that
the deposit could be processed efficiently by sulphuric acid
leaching.  On 24 June 2009, the Company announced the results of its
"proof of concept" scoping study. The study, by GRD Minproc of Perth,
Western Australia, indicated that the project can be economically
viable, and African Eagle has now begun work towards a definitive
feasibility study.

For the study, GRD Minproc reviewed information provided by African
Eagle relating to the geology, resources, setting, mineralogy and
metallurgy of the deposit, and the infrastructure in Tanzania and
neighbouring countries, combining this information with its own
internal data and experience, to develop and calculate the economics
of ten alternative mining and process plant options. Costs were
estimated in US dollars, to an accuracy of ±30%. The economic
modelling was an iterative process, feeding back into the mining
plans and the process designs.

GRD Minproc used Whittle mine modelling to optimise the mining plan
and cut-off grade for each process option, based on the deposit model
and JORC compliant resource of 31 million tonnes at 1.1% nickel and
0.034% cobalt produced by SRK in November 2008. GRD Minproc added a
50% upside, to take into account the nearby Ngasamo laterite, which
adds a potential 15-20 million additional tonnes.

The study showed that the optimum process option is likely to be
atmospheric tank leach, but the project may also be viable using heap
leaching. High-pressure acid leach with direct solvent extraction of
the nickel is also potentially economically feasible.

The financial modelling showed that at today's nickel prices, the
project can be expected to generate a net cash-flow (EBIT) of US$ 53
million to 130 million per year over a mine life of 15 to 20 years,
depending on the processing method.  The detailed results are set out
in the table below.

The study also shows a good investment case for the project, with a
post-tax internal rate of return (IRR) of 15% and a net present value
(NPV) of US$110 million, using a base case of a 10% discount rate of
10%, a US$7/lb nickel price, with the best processing option
(AL/MSP).  The pre-tax NPV is US$200 million.

The cost of reagents, especially sulphur and lime, will be a major
component of operating costs and sensitivity analysis shows that
returns can be considerably increased if these costs can be
minimised.  Also, as anticipated, transport costs will form a
significant contribution to operating costs and the Company will
investigate ways to minimise them. The base case used transport costs
of US$0.08 per tonne per km; the NPV rises to $210 million (post-tax)
or US$350 million (pre-tax) and the IRR increases to 15.5% if the
transport costs can be reduced by 25% and an 8% discount rate is
used.

The study demonstrated that further feasibility studies are now
justified and the Company has commenced work on these. The initial
work will be directed towards investigating ways to reduce costs and
increase revenues, together with drilling the adjacent Ngasamo
deposit, improving the resource model and refining the metallurgical
information.  A start has already been made on the additional
metallurgical test work at Mintek Laboratories in South Africa,
including column and tank leach tests, sizing analysis and physical
test work to establish more definitively the optimum processing
routes.

African Eagle acquired the Dutwa project for its gold potential, but
the Company's exploration team quickly recognised that there was
significant nickel laterite potential. There is very little outcrop,
so the Company conducted extensive ground magnetic surveys to reveal
the underlying structure and geology. The Company also compiled
historical data, including detailed geological maps and trench
results dating from 1956, when rock chip samples from the trenches
over the ultramafic rocks were reported as yielding up to 1.9% nickel
and 10% chromium.

In all, African Eagle has explored a total area of more than 750km²
in the Dutwa project area. The Company holds a 90% interest, with
option to acquire 100%, over the Dutwa laterite deposit itself. In
April 2009, African Eagle signed a Letter of Intent for an option and
joint venture over another nickel laterite at Ngasamo, 5km west of
the Dutwa deposit.

Greenstones and granites underlie the project area. The greenstones,
of Archaean Nyanzian age, are mostly metamorphosed volcanic and
sedimentary rocks, with some banded iron formation in the east.
Several large ultramafic bodies occur within the greenstones and the
nickel laterites form a blanket up to 60m thick on top of these.

To investigate the nickel discovery, the Company undertook trial
drilling in June 2008. The results were very encouraging and a
139-hole reverse circulation (RC) drilling programme was completed to
delineate the resource. African Eagle also undertook a 10-hole
diamond drill programme to obtain core samples for metallurgical
testing and density measurements.

In November 2008, African Eagle announced an initial Inferred Mineral
Resource estimate of 31 million tonnes at an average grade of 1.1%
nickel and 0.034% cobalt. At a cut-off grade of 0.5% nickel, this
gives Dutwa a contained metal endowment of some 340,000 tonnes of
nickel and 11,000 tonnes of cobalt.  The estimate was prepared by
independent consultants SRK Consulting (UK) Ltd in line with the
Australasian Code for Reporting of Mineral Resources and Ore Reserves
(the JORC Code). A little additional drilling and more advanced
geostatistics and deposit modelling will be needed to upgrade the
resource to Indicated category.

Ngasamo Hill, 5km west of the Dutwa deposit, is geologically very
similar and holds a laterite deposit of the order of 15 to 20 million
tonnes, which would increase the global resource at Dutwa from the
currently defined 31 million tonnes at 1.1% nickel, to some 45 - 50
million tonnes.  Drilling and metallurgical tests will be needed to
confirm the size, grade and compatibility of Ngasamo.  Under its
agreement with Ngasamo's owners, (Safina a.s. of the Czech Republic
and its Tanzanian subsidiary Precious Metals Refinery Company Ltd),
African Eagle can earn an interest of at least 50% and up to 75% in
Ngasamo by carrying out exploration and evaluation work, up to a
feasibility study.

Mintek Laboratories in Johannesburg investigated the mineralogy and
metallurgy of mineralised drill samples from the deposit, including
extended 'bottle roll' sulphuric acid leach tests to investigate
metal recoveries and acid consumption. Mintek also carried out
mineralogical characterisation by X-ray diffraction (XRD), scanning
electron microscopy (SEM) and polished section work.

The bottle roll test results showed nickel extractions of 70-90% with
an average of 83%.  Cobalt extractions were mostly in the range 70 to
85%. The acid consumptions, averaging 209kg/t, are very low compared
to other Ni laterite ores worldwide.

The mineralogical investigations show that the laterite is extremely
silica-rich, with low iron and magnesium content, indicating that
Dutwa is not a typical laterite nickel deposit.  Mintek believes that
much of the nickel and cobalt occurs in "wad" with manganese content
of 20-60%, nickel content of up to 20% and cobalt content of up to
10%.

The unusual mineralogy of the deposit is highly beneficial, as it
results in lower acid consumption and is expected to give good heap
leach permeability or favourable liquid-solid separation in tank
leaching. The concentration of nickel and cobalt in the manganese wad
offers the possibility that mechanical selection of high-grade
material may allow reduced throughput and hence a lower cost
processing plant.

The Company is also investigating other potential nickel laterite
deposits in Tanzania, and has completed a trial programme of RC
drilling to test a laterite at its Zanzui project, 60km to the south
of Dutwa.  Results included 42m at 1.05% nickel (including 6m at
2.80%) and 33m at 0.91% nickel (including 9m at 1.41%).

---END OF MESSAGE---


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