News - African Eagle Resources plc.: Corporate and Dutwa Project Update and Changes to the Board

African Eagle Resource plc.

Corporate and Dutwa Project Update and Changes to the Board

2 April 2013: African Eagle Resources plc ("African Eagle" or the "Company") (AIM: AFE; AltX: AEA) wishes to provide a corporate and project update as a result of the Company's current Strategic Partner search for the development of the Dutwa Nickel Laterite Project in Northern Tanzania.

Following a strategic review undertaken with the assistance of its financial adviser, Cutfield Freeman and Co Ltd., the Company has determined that the priority for the advancement of the Dutwa Project is the search for a strategic partner.  This has significantly advanced following a series of recent meetings held with interested parties in Asia and elsewhere, and a number of confidentiality agreements have been signed and a data room established.  The interested parties are now working through the available documentation. The Dutwa Nickel Laterite Project is an attractive project due to its favourable mineralogy which allows nickel extraction using straightforward atmospheric tank leaching instead of the complex high pressure acid leaching as required for most nickel laterite projects.  

Whilst the Strategic Partner search is ongoing, the Board of Directors has determined it is important to effectively manage its resources and revise the near term focus of its development activities.  These changes will result in a reduction in the costs of its operations and optimise financial resources in the near term.

Additionally, the Company advises that, by mutual agreement, David Newbold stepped down from the Board of Directors effective 1st April 2013.  He will still continue as CFO for a transitional period of six months following which he will leave the Company.  The Company expects that Robert McLearon (Group Financial Controller) will thereafter assume Mr Newbold's responsibilities in connection with the Company's finance function.

In the near term, the focus of the Company's personnel within Tanzania will be advancing logistical studies, progressing environmental studies, and exploring the potential of the Dutwa and Zanzui licences to hold economic nickel sulphide mineralisation in addition to the significant nickel laterite resources that have already been delineated.  In addition, the planned integrated laterite mini-pilot plant test work has been deferred until the Strategic Partner search has progressed sufficiently to ensure clarity that the test programme will serve the full purpose of defining operational parameters as it is expected that the Strategic Partner will wish to influence the nature of the test programme, as a part of any funding it may provide for the finalisation of the bankable feasibility study.

Furthermore, after initiation by the Company of an internal review, the Tanzanian Revenue Authority ("TRA") has also undertaken review of the Company's previous tax filings.  The Company has provided data to the TRA and is cooperating fully with its requests. The TRA has not disclosed the results of its review. The Board cannot accurately forecast the level of any tax assessments or tax liabilities that may result from such a review of the Company's tax returns to date. However, there can be no assurance that the Company will not be subject to material assessments with respect to prior years.

For further information, please visit www.africaneagle.co.ukor contact:

African Eagle Resources plc
Trevor Moss, CEO
Alex Buck
+44 20 7248 6059

Canaccord Genuity Limited (NOMAD and Joint Broker)
Andrew Chubb
+ 44 20 7523 8000

Ocean Equities Limited (Joint Broker)
Guy Wilkes
+44 20 7786 4370

Russell & Associates, Johannesburg
Charmane Russell or Marion Brower
+27 11 880 3924

About African Eagle
African Eagle Resources plc is a nickel development and exploration company listed on the London AIM (AFE) and Johannesburg AltX (AEA) stock exchanges. The Company's flagship project is the Dutwa Nickel project in Tanzania located about 25km south of Lake Victoria and 100km east of Mwanza within greenstone gold belts which host many of Tanzania's operating and developing gold mines.

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