News releases

DUTWA NICKEL PROJECT - DRILLING RESULTS

22nd February 2010

DRILLING RESULTS RECEIVED FROM NGASAMO HILL DEPOSIT AT

AFRICAN EAGLE'S DUTWA NICKEL PROJECT IN TANZANIA

First drill assay results from Ngasamo confirm the potential to increase the Dutwa resource.

9 of first 13 holes intersect mineralisation
Key mineralised intersections include:
- 66m at 1.1% nickel including 6m at 2.6%
- 69m at 0.8% nickel including 27m at 1.0%
- 30m at 1.3% nickel including 6m at 2.1%
30 of 55 hole RC drill programme completed to date
Results of the remaining 42 drill holes anticipated before end of Q1

African Eagle's Managing Director Mark Parker comments, "We are pleased to report the first assay results from our drilling programme at the Ngasamo Hill Deposit, which lies adjacent to the Dutwa Nickel Project in Tanzania. The results indicate that the Ngasamo deposit contains similar nickel grades to those seen at the main Dutwa deposit, but over greater thickness. Although these assays are only initial results, they reinforce our belief that Ngasamo has the potential to increase the Dutwa resource."

Assay results have been received from the first 13 drill holes of a programme of at least 55 vertical Reverse Circulation (RC) drill holes at the western Ngasamo Oxide Nickel Deposit at Dutwa. Each hole is drilled through the blanket-like deposit until it reaches un-mineralised bedrock. The average depth of the 30 holes drilled at Ngasamo to date is 75m, considerably deeper than at Wamangola.

Under African Eagle's April 2009 agreement with Ngasamo's owners, (Safina a.s. of the Czech Republic and its Tanzanian subsidiary Precious Metals Refinery Company Ltd), the Company will acquire a 35% interest on completion of the current drilling programme, which is designed to define a JORC inferred resource. By carrying out further exploration, evaluation and feasibility work, African Eagle can increase its equity in the Ngasamo project to at least 50% and up to 75%.

The mineralised intersections with grades of more than 0.5% nickel are listed below. Assays for nickel and cobalt were carried out at Humac Laboratories in Tanzania. The samples will now be sent for analysis for a wider suite of chemical elements.

Hole No	From (m)	Intersection (m)	Ni Grade (%)
NGRC - 3	3	6	0.71
	12	6	0.64
	21	27	1.03
	54	6	0.59
	63	9	0.86
or	3	69	0.77
NGRC - 5	6	12	0.69
	51	3	0.54
NGRC - 6	3	3	0.53
NGRC - 8	0	3	0.55
	18	6	0.6
NGRC - 9	0	27	1.35
incl.	12	6	2.63
	30	3	0.71
	36	6	0.86
	45	21	1.21
or	0	66	1.11
NGRC - 10	0	33	0.86
	36	15	0.83
or	0	51	0.82
NGRC - 11	18	30	1.26
incl.	33	6	2.05
	54	3	0.62
	63	3	0.5
	72	6	0.51
NGRC - 12	33	3	0.51
NGRC - 13	3	15	0.66

Qualified Person

Information in this report relating to exploration results is based on data reviewed by Mr Christopher Davies BSc, MSc, DIC, FSEG, FAusIMM, Operations Director for African Eagle, who is a Fellow of the Australasian Institute of Mining and Metallurgy, has more than 27 years' relevant experience in mineral exploration, and is a Qualified Person under AIM rules. Mr Davies consents to the inclusion of the information in the form and context in which it appears.

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/p/glossary.asp

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

UK Office & Registered Address : 2nd Floor, 6-7 Queen Street, London, EC4N 1SP, UK,
+44 20 72 48 60 59 Fax +44 20 76 91 77 45 e-mail info@africaneagle.co.uk
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