African Eagle Resources plc : Placing

16 September 2013

AFRICAN EAGLE RESOURCES PLC

("African Eagle" or the "Company")

Placing to raise £300,000 (net)

African Eagle (AIM: AFE, AltX: AEA) is pleased to announce it has conditionally raised net proceeds of £300,000 through a placing (the "Placing") of 171,428,571 new ordinary shares of 0.1p each in the Company (the "Placing Shares") at a price of 0.175 pence per Placing Share (the "Issue Price") with certain existing shareholders and directors. The Issue Price represents a discount of approximately 41.7 percent to the closing middle market price of 0.3 pence per ordinary share on 13 September 2013, being the last trading day prior to this announcement.

The Placing is conditional on admission of the Placing Shares to trading on AIM ("Admission") and the net proceeds of the Placing will be used to fund the general working capital requirements of the Company. The Placing Shares represent approximately 19.7% of the enlarged issued share capital.

Placing Shares were subscribed for by certain directors of the Company and persons connected with them, whose disclosable interests are as set out below.  

* (Julian McIntyre's family's trust company)

The Company also announces that, pursuant to certain costs associated with the Placing, it is proposing to settle these costs through the issue and allotment of 5,714,283 new Ordinary Shares in lieu of payment (the "Fee Shares").

The Placing Shares and the Fee Shares (together the "New Ordinary Shares") will be fully paid and will rank pari passu in all respects with the Company's existing ordinary shares of 0.1p each ("Ordinary Shares").

Application has been made to the London Stock Exchange for Admission.  It is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. on Wednesday, 18 September 2013. Following Admission the Company's issued share capital will consist of 871,157,261 Ordinary Shares with voting rights. African Eagle does not hold any Ordinary Shares in treasury.

The aforementioned figure of 871,157,261 Ordinary Shares may be used by shareholders in the Company 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 Financial Conduct Authority's Disclosure and Transparency Rules.

The participation of Allard Services Limited, Mark Thompson and Paul Colucci in the Placing is deemed to be a related party transaction under the AIM Rules. Robert McLearon, the Company's independent Director in connection with the Placing considers, having consulted with Strand Hanson Limited, the Company's nominated adviser, that their participation in the Placing is fair and reasonable insofar as the Company's shareholders are concerned.

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

African Eagle Resources plc

Robert McLearon, Managing Director

+44 20 7248 6059

Strand Hanson Limited (NOMAD)

Stuart Faulkner

Angela Hallett

James Dance

+ 44 20 7409 3494

Ocean Equities Limited (Broker)

Guy Wilkes

+44 20 7786 4370