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AWARD OF PROSPECTING LICENCE IN ZAMBIAN COPPERBELT

News Report
5 August 2005

New licence in world-class copper-cobalt province
Drilling to start by mid 2006

African Eagle Resources ("the Company", ticker AFE) announces the award of a prospecting licence in the Ndola region of Zambia, covering a large, highly prospective area of the Central African Copperbelt.

The prolific Copperbelt is one of the great mining districts of the world. It contains a global resource of almost 200 million tonnes of copper metal, mostly in very high grade deposits and includes two of the world's ten biggest copper deposits. Many of the deposits also contain high cobalt concentrations and the Copperbelt accounts for about 40% of the world's cobalt reserves.

The Company's new licence lies close to several important deposits and contains highly prospective geological units and structures. African Eagle will be the first company to explore this strategically important area of the Copperbelt using state of the art techniques and knowledge.

The new licence, granted by the Zambian Ministry of Mines for an initial, renewable period of two years, covers 428 square kilometres, much of it underlain by the highly prospective Mine Series geological sequence which hosts most of the world-class deposits in Zambia and the neighbouring DRC.

The licence surrounds First Quantum's mining lease and showcase SX/EW plant at Bwana Mkubwa. Five other major copper deposits lie within 30km. The infrastructure of the area is excellent, with good roads, railways and power lines running through the licence.

A map showing the geology of the new licence, together with a sketch showing the locations of the principal deposits of the Copperbelt may be viewed on the Company's web site www.africaneagle.co.uk/projects-ndola.html.

African Eagle is conducting a thorough review of the archive data from earlier exploration and will shortly start a field exploration programme including advanced geophysical surveys, designed to define drill targets for testing by mid 2006.

African Eagle's Chairman John Park, comments "This licence gives African Eagle a presence in one of the world's greatest metallogenic provinces. Coupled with our ongoing exploration at Eagle Eye, Mkushi and Lunga, the new licence significantly enhances African Eagle's Zambian portfolio and increases the likelihood of our making a major copper discovery".

John Park
Chairman
African Eagle Resources plc