AFRICAN EAGLE RESOURCES PLC

                      OPEN OFFER OVERSUBSCRIBED
                      RESULT OF GENERAL MEETING
                         DIRECTORS' HOLDINGS


*          Open Offer oversubscribed

*          Offer maximum of Euro 2.499 million (£2,136,700) raised
  and 53,417,500 Offer Shares issued

*          Placing of 30,804,500 new Ordinary Shares at 4p per share
  completed, raising £1.2 million before expenses

*          Proceeds of the Placing and Offer to fund work on African
  Eagle's feasibility study of the Dutwa Nickel Project and for
  general working capital

*          Directors subscribed for 250,000 shares in the Open Offer


The Board  of African  Eagle Resources  plc ("African  Eagle" or  the
"Company") is pleased  to announce  that its Placing  and Open  Offer
have been successfully completed, with all resolutions at the General
Meeting of the Company held on 6 August being duly passed.

The Company is delighted  to report that the  Open Offer to  Eligible
Shareholders ("Open  Offer"),  which  closed at  11am  yesterday  was
oversubscribed.  After scaling back, the Offer raised Euro 2,499,939,
equivalent to £2,136,700  at the  then ruling exchange  rate of  1.17
Euro to £1, and accordingly, 53,417,500 Offer Shares have been issued
at a price of 4p each.

Also, the placing by Seymour Pierce of 30,804,500 new Ordinary Shares
with new and existing investors at a price of 4p each, raising  gross
proceeds of approximately £1.2 million,  has now been completed  (the
"Placing").

Application has been  made for  admission to  trading on  AIM of  the
Placing Shares and  the Offer  Shares and  this is  expected to  take
place this morning. Application has  also been made for admission  to
trading on AltX of the Placing  Shares and the Offer Shares and  this
is expected to take place on 11 August.

Following the issue of these new Ordinary Shares there are
296,762,128 Ordinary Shares in issue. This figure may be used by
shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or a
change to their interest in, African Eagle under the FSA's Disclosure
and Transparency Rules.


Mark Parker, Managing  Director of African  Eagle commented, "We  are
delighted with the support shown  by our shareholders and by  leading
institutional investors. Their commitment  is a clear endorsement  of
the quality of the Company's  prospective nickel laterite project  at
Dutwa and our experienced executive  and operational teams.  We  were
very keen  to  give as  many  of  our shareholders  as  possible  the
opportunity to take  part in  this fundraising and  we are  therefore
delighted with the fantastic take up of the Open Offer.  In order  to
be able to  make the Open  Offer, we had  to work through  a raft  of
complex rules and regulations and we pay tribute to the guidance  and
support of our advisers throughout  this process, which ensured  that
we were  able to  include as  many shareholders  as possible,  whilst
keeping costs to a minimum."


The net proceeds of the Placing  and Open Offer, after expenses,  are
intended to be used, in conjunction with the Company's existing  cash
resources, to make a start on work leading to a feasibility study  on
African Eagle's  Dutwa Nickel  Project in  Tanzania and  for  general
working capital.

Since its discovery of the Dutwa nickel deposit in June 2008, African
Eagle  has  completed  resource  drilling;  received  an  independent
resource   estimate;   completed    laboratory   metallurgical    and
mineralogical  tests  (which  revealed  that  the  deposit  could  be
processed efficiently by sulphuric acid leaching), and commissioned a
scoping study which has  indicated that the project  is likely to  be
economically feasible.

In December 2008, African Eagle decided that the Dutwa project should
become its top priority, because the Directors believed that, of  all
the Group's projects,  Dutwa offered  the greatest  potential to  add
value. With the delivery of the positive scoping study in June  2009,
the Company  resolved  to start  work  immediately on  a  feasibility
study.

At the end of June 2009, African Eagle held net cash of approximately
£1.5M.  The  estimated cost  of the  next stages  of the  feasibility
study will  be  approximately £1.5M  to  £2M, including  the  working
capital the Company will  need to cover  its general operational  and
administrative expenditures. The  Board therefore  resolved to  raise
funds  through  a  placing  of  Ordinary  Shares  with  institutional
investors.


                         DIRECTORS' HOLDINGS

The Directors have in  total subscribed for  1,222,500 shares in  the
Placing and 250,000 shares in the Open Offer.

Details of individual Directors'  subscriptions and their  consequent
holdings and percentages following the  Placing and the Offer are  as
follows:


              Subscription Subscription in  Number of     Percentage
Director      in Placing   Offer            Ordinary      of Enlarged
                                            Shares held,  Share
                                            after the     Capital
                                            Placing and
                                            Offer
John Park     250,000      -                6,926,801     2.33%
Euan          250,000      -                1,060,000     0.36%
Worthington
Mark Parker   312,500      225,000*         4,033,857     1.36%
Christopher   152,500      25,000           971,730       0.33%
Davies
Bevan Metcalf 137,500      -                207,500       0.07%
Geoffrey      120,000      -                909,300       0.31%
Cooper

*  to be held by Mr Mark Parker's Self-Invested Personal Pension


                           IMPORTANT DATES




Admission and dealings in the New Ordinary Shares to    7 August 2009
commence on AIM

CREST accounts credited with New Ordinary Shares        7 August 2009

Listing of the New Ordinary Shares on ALTx  from       11 August 2009
commencement of business on

Definitive share certificates for the New Ordinary
Shares to be despatched (if appropriate) by            21 August 2009







For further information contact:


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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