African Eagle Resources plc

NEW DRILLING RESULTS FROM MIYABI, TANZANIA

News Report
27 June 2005

African Eagle Resources ("the Company", ticker AFE) is pleased to announce the latest drilling results from the Faida zone at its Miyabi gold project in the Lake Victoria Goldfields of Tanzania.

Mineralised intercepts include 9.4g/t over 3m and 7.3g/t over 4m, within a wide zone of 2.4g/t over 66.5m. African Eagle's Managing Director Mark Parker notes "This latest drilling at Miyabi confirms the grade, thickness and higher grade central core of the Faida gold zone which we discovered last year. The new results have been provided to SRK, our independent consultants and will be used to calculate an addition to our current resource estimate of 400,000 ounces. The core rig has now moved to other target zones in the Miyabi corridor and a percussion rig has been mobilised to test new geophysical and geochemical targets".

The results are for five diamond-drilled cored holes from the Faida gold zone, inclined at 45 to 55 degrees and averaging 240m inclined depth. A map showing the geology and locations of all the drill holes at Faida can be seen at www.africaneagle.co.uk/projects-miyabi. The widths and grades of the new mineralised intersections were as follows:

Prospect	Drill Hole	From (m)	Interval (m)	Gold g/t
Faida	MBDH-26	87.9	4.9	2.26
	and	119.9	5.0	3.36
	and	148.9	66.5	2.44
	incl	157.9	4.0	7.26
	and	205.9	3.0	9.40
	MBDH-25	163.9	39	1.35
	MBDH-24	54.9	3.0	1.95
	and	62.4	1.5	2.90
	and	66.9	1.5	2.93
	and	193.9	47.0	1.97
	MBDH-23	160.9	11.0	1.50
	and	173.9	3.0	0.61
	and	192.9	1.0	1.29
	MBDH-21	65.3	3.0	0.62
	and	77.3	1.5	0.91
	and	82.8	44.0	1.88
	incl	82.8	9.0	3.29

The results, especially from holes 21 and 26, confirm the Company's earlier interpretation that the Faida orebody consists of a higher grade core surrounded by a wide lower grade zone and is hence potentially amenable to open pit mining. The results have been submitted to SRK, African Eagle's independent consultants and will be incorporated into the calculation of an increased gold resource estimate.

A geochemical anomaly which may represent the faulted extension of the Faida zone lies 150m to the northeast while another target area with a similar geochemical and geophysical signature to Faida lies 250m to the west. A reverse circulation drill rig has been mobilised to Miyabi following completion of a recent drilling programme at the Company's Msasa gold project, and will be used to test these and other geophysical and geochemical targets within the Miyabi gold corridor, including extensions of the known gold zones.

A single diamond drill hole has also been completed in the Shambani gold zone to test for mineralisation between the Shambani North and Main structures, and drilling is now underway on a three hole programme to expand the existing resource at the Kilimani gold zone, 2.5km east of Faida. The first hole of this programme has been completed.

In summary, African Eagle is making good progress with its resource drilling programme at Miyabi, and is on target with its aim of increasing the gold resource at Miyabi substantially during 2005.

John Park
Chairman
African Eagle Resources plc