AFRICAN EAGLE PLC (AFE)

AFRICAN EAGLE PLC (AFE) – RANDGOLD RESOURCES TO PROCEED WITH PHASE TWO OF ITS JOINT VENTURE ON THE MIYABI GOLD PROJECT IN TANZANIA

• Randgold completes Phase One exploration and exercises option to begin Phase Two
• Structural study reveals targets for future drilling
• Follow-up drilling and increased exploration expenditure

African Eagle Resources plc today announces that Randgold Resources Ltd has now completed its Phase One exploration programme on the Miyabi Gold Project in the Lake Victoria Goldfields of Tanzania and has elected to enter the Earn-in Phase.

African Eagle’s Managing Director Mark Parker commented
“Randgold’s decision to exercise its option to begin a formal earn-in to the Miyabi Joint Venture shows that it sees the potential of the project, and we look forward to rapid progress over the coming months. Randgold’s careful geological and structural interpretation has identified several new conceptual gold targets. Elsewhere, African Eagle itself is progressing rapidly on a number of its other projects, particularly Mkushi, where the Company aims to start copper production by mid-2010”.

Under the joint venture agreement, which was signed in May 2007, RRS has been undertaking an agreed Phase One exploration programme to assess the gold potential of the project beyond the 520,000 ounce JORC-compliant resource already outlined by African Eagle. The Phase One programme included diamond drilling in the 7km x 2km northeast trending gold-bearing Miyabi shear zone corridor and RAB drilling over the Idahina geochemical targets, together with a structural and geological interpretation of all new and previous data.  RRS’s total expenditure on Phase One was just over US$1 million.

On completion of Phase One, RRS had the option, which it has now exercised, to commence Phase Two, under which it can earn a 50% interest in the joint venture by solely funding all further project costs up to and including completion of a predefined Pre-Feasibility Study. On completion of the Pre-Feasibility Study, African Eagle can elect to retain a 49% stake in the project by co-funding a Definitive Feasibility Study, or to dilute to a 35% stake if RRS provides all funding for this phase.

For more information please go to: www.africaneagle.co.uk