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Tuesday 24 March, 2009

African Eagle Resources PLC

Dutwa Nickel Project Update





                FINAL BOTTLE ROLL LEACH TEST RESULTS
                     AND MINERALOGICAL ANALYSIS
         FROM AFRICAN EAGLE'S DUTWA NICKEL PROJECT, TANZANIA

   High nickel extraction and low acid consumption bodes well for
                               project


  * Exceptionally low acid consumption and good nickel recovery
    confirmed
  * High nickel extraction averaging 83% from solids
  * Unique laterite mineralogy: high silica, low iron, low magnesium
    account for the low acid and high recovery
  * Low acid consumption will have a major impact on capital and
    operating costs, favouring low cost heap or tank leach processing
    technology
  * Scoping study contract to be awarded


African Eagle Resources plc  has received the  final results of  acid
leach tests  and mineralogical  analyses on  drill samples  from  its
Dutwa nickel laterite  project in Tanzania.   The tests were  carried
out by Mintek in South Africa.

The leach test results show high nickel extractions, averaging 83% on
a solid basis, and very low sulphuric acid consumption, averaging 210
kilograms per  tonne.  These  compare very  favourably with  laterite
deposits elsewhere in the world.

The mineralogical  analyses show  that Dutwa  is a  unique  laterite,
dominated by  silica and  with very  low iron  and magnesium.   These
characteristics account for  the exceptionally  low acid  consumption
and high nickel recovery.

In November 2008, the Company announced a JORC compliant resource  at
Dutwa of  31  million  tonnes  at  1.1%  nickel  and  0.034%  cobalt,
containing 340,000 tonnes of nickel and 11,000 tonnes of cobalt.

Mark Parker,  African Eagle's  Managing  Director comments:  "We  are
delighted with  these  results.   Dutwa is  a  unique  deposit,  with
unusual  mineralogy  which  results  in  high  nickel  recovery  with
exceptionally  low  acid  consumption.  This  bodes  very  well   for
commercial development, as the ore should be amenable to tank or heap
leaching  at   atmospheric  pressure.   Either  technology   can   be
implemented at relatively low capital cost.

"We will now commission  a scoping study to  assess the viability  of
the project and indicate  the best way to  proceed. We are  currently
evaluating bids and  expect to  award the  contract in  the next  few
days. We then expect to commence a second phase of metallurgical test
work to evaluate the heap and tank leaching nickel-cobalt  extraction
technology options in greater detail."


Leach tests

The table  below shows  the  total acid  consumption and  nickel  and
cobalt extractions  from  "bottle  roll"  leach  tests  on  ten  500g
samples,  five  from  diamond  drill  cores  and  five  from  reverse
circulation cuttings. Each sample was  placed in a glass bottle  with
two litres  of dilute  sulphuric acid  and agitated  continuously  by
rolling  on  rotating   rollers.  Mintek  completed   the  tests   in
mid-February 2009  after  82  days  rolling.  The  metal  extractions
levelled off after 60  days; Mintek notes  that similar results  from
other laterite ores subsequently gave heap leach cycles of less  than
200 days.

Nickel extractions were between 70-90% averaging 83%, based on assays
of the samples prior to the test and of the solid residues at the end
of the test.   Extractions calculated  from the daily  assays of  the
liquid leachate  were  higher,  at 80-95%,  but  are  generally  less
reliable. The  acid consumptions,  averaging  209kg/t, are  very  low
compared with  other nickel  laterite ores.  The solids-based  cobalt
extractions were mostly in the range 70 to 85%.



             DH1 DH4 DH6 DH7 DH8 RC25 RC30 RC36 RC55 RC71 Average
   Acid kg/t 352 196 233 114 200  159  207  304  190  138     209
   Ni%        85  80  89  78  91   88   71   88   86   75      83
   Co%        69  71  77  55  85   76   18   77   86   73      69




See  our  web  site  for   day-by-day  nickel  extraction  and   acid
consumption                                                  charts:
www.africaneagle.co.uk/african-eagle-projects-dutwa-bottleroll.html


Mineralogy

Mintek used X-ray Diffraction (XRD), and scanning electron microscope
(SEM) backscattered electron images to investigate the mineralogy  of
the drill core  and chips.  Sixteen  samples of drill  core and  five
samples of reverse circulation (RC)  cuttings were submitted for  XRD
analysis.  The five RC samples and five composited drill core samples
were investigated by SEM.

The results showed two  broad classes of  material: a dominant  class
composed largely  of  silica and  a  mixed class.   The  latter  also
contains silica, together with variable amounts of the  iron-chromium
oxides magnetite  and chromite;  the  hydrated iron  oxide  goethite;
"manganese wad", (in which manganese, nickel, cobalt and other metals
replace some of the iron in amorphous goethite); and small quantities
of serpentine and clays.

The silica-rich  nature  of these  samples  and their  low  iron  and
magnesium content, indicates  that Dutwa  is not  a typical  laterite
nickel deposit as the  normal laterite mineralogy  is diluted by  the
high silica. The  unusual mineralogy  of the  deposit is  potentially
beneficial, as in heap leaching, the high silica and low iron  should
help  maintain  the  structural  integrity   of  the  heap  and   aid
percolation of  fluids through  the heap,  reducing residence  times,
while  in  tank   leaching,  the  high   silica  should  allow   good
filterability.

In addition, the low iron  concentration will result in low  impurity
levels in  purification  steps  and potentially,  lower  capital  and
operating costs. The  lower iron will  also result in  commensurately
less iron residue for disposal.

Mintek believes that  most of  the nickel  and cobalt  occurs in  the
manganese wad.  The SEM  work showed that this  can have a  manganese
content of 20-60%, a nickel content of up to 20% and a cobalt content
of up to 10%. 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


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 / Gareth Tredway
Conduit PR, London
+44 20 7429 6607
+44 (0) 7733 363 501



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.

The Dutwa project  area is composed  of several prospecting  licences
covering a  total  area  of  about  750km�.  The  Company  holds  90%
interests, with options to  acquire 100%, over  most of this  ground,
including the area of  the laterite discovery,  and the remainder  is
under application.

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.

The Company despatched 100 kilograms of 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  nickel  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 the low  iron
concentration will result  not only  in lower  acid consumption,  but
also in  commensurately less  iron residue  for disposal.  In a  heap
leach, the  low  iron  and  high  silica  should  help  maintain  the
structural integrity  of  the  heap and  aid  percolation  of  fluids
through the  heap, reducing  residence  times. 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  is commissioning  a
Scoping Study  to investigate  the key  operating parameters  and  to
assess the economic potential of the project.

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%).


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 announced  a significant resource  at
the end of 2008, 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.

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