SCOPING STUDY INDICATES
POTENTIAL ECONOMIC VIABILITY
          OF AFRICAN EAGLE'S DUTWA NICKEL PROJECT, TANZANIA

               Feasibility study to begin immediately


*                      Draft Scoping Study indicates economic
  viability of project
*                      Indicative life-of-mine pre-tax earnings
  US$1.5 billion at nickel price US$7/lb
*                      Atmospheric tank leaching likely to be optimum
  process
*                      Capital cost estimate US$435 million (2
  million tonne per annum tank leach plant)
*                      African Eagle to begin feasibility study
  immediately

African Eagle Resources today  announces the results  of a "proof  of
concept" scoping  study  on  the Dutwa  Nickel  Laterite  Project  in
Tanzania. The study was undertaken  by GRD Minproc of Perth,  Western
Australia, under contract to African Eagle.

African Eagle's  Chairman John  Park commented,  "This study  clearly
demonstrates that the Dutwa project can be economically viable.   The
Company will now begin  work on further  feasibility studies. I  also
believe that  the implementation  of GRD Minproc's  recommended  work
programme  to  investigate  the  potential  to  reduce  capital   and
operating costs and  to improve  revenues will  demonstrate both  the
robustness of  the project  and our  ability to  improve the  project
economics."

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.  GRD Minproc used this information,  combined
with its  own internal  data and  experience, to  develop mining  and
process plant  plans  for  ten alternative  process  options  and  to
calculate preliminary economics of each.  The economic modelling  was
an iterative  process, feeding  back into  the mining  plans and  the
process designs.

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.

Preliminary financial analysis indicates that the base case  post-tax
net present value (NPV) of the best option is US$109 million and  its
internal rate of return  (IRR) is 14.5% based  on a discount rate  of
10%, a nickel price of US$7/lb and transport costs of  US$100/tonne.
The NPV rises to $209 million and  an IRR of 15.5% at an 8%  discount
rate and $75/tonne transport costs.  The equivalent pre-tax NPVs  are
US$202 million and US$354 million respectively.

The results  of  this study  fully  justify commencement  of  further
feasibility studies on the project.

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

The study  determined that  atmospheric leaching  with production  of
intermediate hydroxide  or  sulphide products  is  likely to  be  the
optimum process route, although heap  leaching is also viable.   High
Pressure Acid Leach (HPAL) with  direct solvent extraction (DSX)  and
electrowinning of nickel metal also appears to be viable.

The cost  of  reagents,  especially  sulphur and  lime,  is  a  major
component of  operating costs  and  sensitivity analysis  shows  that
returns  can  be  considerably  increased  if  these  costs  can   be
minimised.  As  anticipated, transport  costs will  be a  significant
contributor to operating  costs and  ways to minimise  these will  be
investigated.  For the atmospheric tank leach processing option,  pre
tax NPV will increase by $50  million to US$252 million if  transport
costs can be reduced to $US75/t against the base case of $US100/t.

GRD Minproc  concluded  that  the   results  of  the  study   justify
commencement of further feasibility  studies on the project.  Initial
work on this should be directed towards investigating variables which
could lead to costs reductions and revenue increases.

Specifically, GRD Minproc recommended that the following further work
be undertaken:

*          Resource drill the Ngasamo deposit
*          Improve and upgrade the resource model, incorporating the
  Ngasamo drill data
*          Investigate beneficiation of the ore prior to leaching
*          Conduct advanced metallurgical testing for tank and heap
  leach options
*          Investigate ways to minimise transport costs
*          Investigate sources and costs of reagents, especially lime
  and sulphur
*          Investigate water balance at the project site
*          Conduct a marketing study for the alternative products
*          Complete an environmental impact assessment
*          Conduct hydrogeological surveys
*          Review power supply and co-generation options
*          Review requirements and time frames for statutory permits

Additional metallurgical test work  is currently being undertaken  by
Mintek Laboratories in South Africa. This work includes column  leach
test work, heap leach  test work, sizing  analysis and physical  test
work to establish  more definitively the  optimum processing  routes.
Resource definition  drilling  of  the Ngasamo  laterite  deposit  is
planned to commence in August.

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/african-eagle-projects-glossary.html

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 projects are  the Dutwa nickel laterite  discovery
in Tanzania,  where the  Company completed  a scoping  study in  June
2009, and the  Mkushi Copper  Mines project  in Zambia,  for which  a
draft Feasibility Study was completed in Q4 2008.

African Eagle has also  defined a gold resource  estimated at half  a
million ounces  at  the  Miyabi  gold project  in  Tanzania,  and  is
evaluating a  second  promising  nickel  laterite  deposit  which  it
recently discovered in  Tanzania. The Company  holds a  well-balanced
portfolio of promising  earlier stage gold  and base metal  projects,
including the Ndola and Mokambo projects in the Zambian Copperbelt.

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.

About Dutwa

African Eagle has  discovered a significant  nickel laterite  deposit
within the Dutwa  project area,  which lies in  the Kilimafedha  belt
(Swahili for "money hills") of the Lake Victoria Goldfield.

Operationally, 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.

Greenstones and  granites  underlie  the 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  intrude the  greenstones  and  the
nickel laterites form a blanket up to 60m thick on top of these.

African Eagle has explored several prospecting licences in the  Dutwa
project area, covering a total area of more than 750km². The  Company
holds 90% interests,  with options  to acquire 100%,  over the  Dutwa
laterite deposit. In  April 2009,  African Eagle signed  a Letter  of
Intent for  an option  and joint  venture over  the Ngasamo  licence,
which contains another nickel laterite 5km west of the Dutwa project.

African Eagle acquired the Dutwa project for its gold potential,  but
its exploration team  quickly recognised that  there was  significant
nickel laterite potential.  Geochemical soil surveys  carried out  by
African Eagle  over  the  whole  of the  project  area  identified  a
promising 5km-long nickel  anomaly and  a number  of gold  anomalies.
There is  very little  outcrop, so  the Company  conducted  extensive
ground magnetic  surveys  to  reveal  the  underlying  structure  and
geology. The  Company has  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.

To investigate  the  nickel  anomaly,  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). SRK classified  the estimate as an Inferred  Mineral
Resource in terms of the JORC code,  but noted that the deposit is  a
continuous mineralised body of simple  geometry, which has been  well
delineated by the drilling, and could be promoted easily to Indicated
category with more density measurements and improved knowledge of the
metallurgy.

Ngasamo Hill,  which  lies 5km  west  of the  Dutwa  deposit  appears
geologically very similar, probably 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, but first indications are very  promising.
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 50% and up to 75%
in Ngasamo by carrying out exploration  and evaluation work, up to  a
feasibility study.

The Company despatched mineralised drill core and RC chip samples  to
Mintek Laboratories  in  Johannesburg  for  investigations  into  the
mineralogy and metallurgy  of the  deposit, especially  tests of  the
amenability of  the  material  to  sulphuric  acid  leaching.  Mintek
carried  out  mineralogical  characterisation  by  X-ray  diffraction
(XRD), scanning electron microscopy (SEM) and polished section  work,
to determine the nature of the  ore body, and extended 'bottle  roll'
acid leach tests on ten samples, to investigate metal recoveries  and
acid consumption.

The bottle roll test results show nickel extractions of  70-90%  with
an average of 83%, based on assays  of the samples prior to the  test
and of the solid residues at the end of the test.  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 beneficial, as it results in
lower acid consumption and  would be likely 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
possibilities that mechanical  selection of  high-grade material  may
allow reduced throughput and hence a lower cost processing plant.

As the next step in the process, African Eagle commissioned a Scoping
Study to investigate the key  operating parameters and to assess  the
economic potential of the  project. The results  of the study  became
available in mid-June 2009 and are described in the main news release
above.

The Company has also  completed a trial programme  of RC drilling  to
test a laterite at its Zanzui  project, 70km 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%).

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