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PLACING RAISES £3.3M

News Report
22 May 2006

African Eagle Resources plc (ticker AFE, the "Company"), the AIM-listed mineral resources company, has raised a total of £3.35 million (before expenses) by way of a placing to new and existing investors of 27,916,670 new ordinary shares of one pence each ("Ordinary Shares") at an issue price of 12p per Ordinary Share. (the "Placing").

The capital raised will provide the Company with additional funds to accelerate the economic assessment of the Mkushi Copper Mines towards a decision to restart production, and to advance the Company's other key projects for development in partnership with other operators.

Application has been made for the admission of the new Ordinary Shares to trading on AIM and dealings are expected to commence on [25] May 2006.

Mark Parker, Managing Director, commented: "We completed this financing under difficult market conditions because we want to advance the Mkushi Copper Mines project as quickly as possible. We believe that the project compares extremely favourably with other developments underway in the region, with robust economics across a wide range of likely metal prices.

"We are keen to complete a full scoping study by the end of the year to review the possible routes to development. We are also actively seeking development partners for this and all of our projects.

"We are delighted that the placing has brought several high quality institutions onto our register of shareholders."

John Park
Chairman
African Eagle Resources plc