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NEW JOINT VENTURE AGREEMENTS IN MOZAMBIQUE AND TANZANIA, PROGRESS ON THE LUNGA PROJECT, NEW COPPERBELT LICENCE GRANTED

News Report
3 February 2006

African Eagle Resources plc (the Company, ticker AFE) is pleased to announce that it has signed exploration joint venture agreements with African Advanced Metals Limited (AAML) and MSA Projects Limited (MSA). Under the first agreement, AAML will explore African Eagle's Majele and Muazua licences in Mozambique, while under the second agreement, MSA will explore AFE's diamond property in central Tanzania.

The Company also announces that, in the Lunga area in Zambia a comprehensive soil geochemical survey by farm-in partner MSA has revealed highly significant anomalies, including three large areas which show potential for copper-gold discoveries.

The Company is also pleased to report that it has been granted a prospecting licence around the old Mokambo Mine, situated 15km northeast of Mufulira in the Zambian Copperbelt. The Mokambo Mine was partially re-evaluated during the mid 1970's and was then reported to host a resource of 41 million tonnes of ore at an average grade of 1.72% copper.

Managing Director Mark Parker comments "The two new farm-in agreements are in line with the Company's policy of leveraging its local knowledge and networks to acquire promising exploration properties, while limiting its own exposure. The discovery of extremely promising geochemical targets by our partner on the Lunga licence shows that this strategy works well. The Mokambo area, with its known copper resource, is a very significant addition to African Eagle's Copperbelt assets, which already include the 480km2 Ndola licence".

AAML Agreement

African Eagle has been exploring the Majele licence for gold and base metals and the Muazua licence for nickel and platinum group metals. The area is also prospective for tantalum-niobium deposits and AAML owns and operates the Muiane tantalum mine which lies just 10km from African Eagle's licences.

Under the Agreement, AAML will spend a minimum of US$250,000 within 18 months of signature, to undertake an agreed exploration programme on the two licences. Thereafter, the two companies will explore jointly, with AAML able to earn 80% of any tantalum, niobium or uranium discovery by funding the development costs and African Eagle retaining 80% of any discovery of other commodities.

Diamond Agreement

The diamond agreement covers African Eagle's licences and other interests within a specified area of central Tanzania. The parties to the agreement are African Eagle, MSA and Mr Rob Bowell, who will initially hold 45%, 45% and 10% interests respectively Under the Agreement, MSA will manage the exploration programme and Mr Bowell will contribute intellectual capital and expertise.

MSA Projects is a Johannesburg-based company with an impressive track record of discovering economic mineral deposits, including diamond mines. Since 1992, exploration conducted by MSA Projects has led to three mines being brought into production in South Africa: the Messina platinum mine, the Marsfontein diamond mine and the Klipspringer diamond mine. MSA Projects is a farm-in partner on African Eagle's Lunga project in Zambia.

Lunga, Zambia

MSA Projects has delivered to African Eagle the results from its large-scale geochemical soil survey covering the whole of the Company's 1956km2 Lunga licence area, which it is exploring principally for Kansanshi-type copper-gold deposits. The results revealed some very significant anomalies, including three extensive copper-gold targets. MSA has commissioned an airborne geophysical survey to investigate these, and plans follow-up surface surveys and drilling during 2006.

Mokambo licence award, Zambia

The Mokambo licence is situated 15km northeast of the Copperbelt town of Mufulira and 25km northwest of African Eagle's 480 square kilometre Ndola Copperbelt licence. It covers an area of approximately 30 square kilometres, in the form of a 20km strip along the frontier between Zambia and the DRC, and contains geological units which host many of the Zambian copper deposits.

The historic Mokambo Mine copper deposits lie in the central part of the licence. A Romanian company, Geomin, partially re-evaluated the deposits in the mid 1970's, drilling more than 40 boreholes and sinking a vertical shaft to a depth of 130m. Geomin reported "probable and possible ore reserves" of 41 million tonnes at an average grade of 1.72% copper, using a cut-off of 1.2% copper. Reported intersections from the drill programme included 3% copper over 4.5m.

A map on the Company's web site www.africaneagle.co.uk/projects-mokambo shows the location and geology of the new licence.

African Eagle has started a thorough review of all existing data and will shortly begin a field exploration programme, including geophysical surveys and drilling, to evaluate this extremely promising area.

John Park
Chairman
African Eagle Resources plc