African Eagle Resources plc

FIRST FORMAL RESOURCE ESTIMATE FROM H-ZONE AT MKUSHI COPPER MINES PROJECT, ZAMBIA

News Report
26 September 2006

Independently audited Mineral Resource estimated in accordance with the JORC Code (2004) at the Mkushi Copper Mines project.
The estimated Inferred Resource ranges from 10.7 million tonnes averaging 0.73% copper to 7.1 million tonnes averaging 0.90% copper, depending on the cut-off grade applied.
Drilling continues to expand and upgrade this preliminary total.
Metallurgical test results confirm that more than 95% of the copper can be recovered by simple flotation.
Bankable feasibility study underway.

African Eagle's Managing Director Mark Parker comments "This Inferred Resource represents the position at the start of our Joint Venture with Central Asia Gold and we expect that it will be augmented considerably. The metallurgical results confirm that the capital cost of the plant is likely to be relatively low. We now look forward to further news from the project as the feasibility study progresses over the coming months"

African Eagle Resources plc ("African Eagle" or "the Company"), the AIM quoted mining and exploration company, today announces the first independently audited Inferred Mineral Resource on its Mkushi Copper Mines project in Zambia. The estimate is for H-Zone only, just one of the six known mineralised zones at Mkushi, and is based on 42 of the 53 drill holes for a total of 8,359m drilled by African Eagle prior to commencement of its June 2006 Joint Venture with Central Asia Gold Limited (CAGL).

The Company has also received the results of metallurgical tests which show that the copper can be readily and effectively extracted from the samples using conventional flotation, with recoveries of more than 95%. The tests also showed that the mineralisation is easy to grind. The results confirm African Eagle's view that the capital cost of a plant for Mkushi should be relatively low, in line with the Company's internal economic modelling which indicates that the project should be profitable across a wide range of copper prices.

The Mineral Resource for H-Zone, estimated by Snowden Mining Industry Consultants (Snowden), depends on the cut-off grade applied, as shown in the table below. Although based on only part of the known strike length, this Inferred Resource estimate already represents 60,000 to 80,000 tonnes of contained copper. Future infill drilling will allow higher resolution resource modelling which is likely to result in a higher average grade estimate in the future, but with a lower tonnage.

Cutoff grade	Million tonnes	Average grade	Category
0.3%	10.7	0.73%	Inferred
0.4%	9.0	0.80%	Inferred
0.5%	7.1	0.90%	Inferred

African Eagle is confident that the resource will be considerably increased through extensive drilling and exploration programmes underway and planned on H-Zone and the other five known mineralised zones. Archive data from previous operators indicates that the Mkushi area as a whole contains a global exploration target of the order of 30 million tonnes averaging 1.2% copper.

African Eagle and its joint venture development partner Central Asia Gold Limited (CAGL) are now exploring for additional resources and undertaking a full feasibility study. Current priority activities are:

Infill and extension drilling of H-Zone to increase the tonnage and move towards increasing confidence in the resource estimate to Indicated and Measured Resource categories.
Resource drilling of the other known mineralised bodies, especially Munshiwemba, Coloquo and Mtuga.
Drilling of new exploration targets to increase the resource, including the IP anomalies starting with targets in the Munda area. All of the first five drill holes at Munda have intersected visible copper mineralisation, over a strike length of 1km and assays are awaited.

Snowden noted that their modelling used relatively large model blocks of 1000 cubic metres (20m along strike, 10m normal to strike and 5m vertical), with the block grades estimated by ordinary kriging. This coarse block size was necessary because the drill holes to date have been at the relatively wide collar spacing of approximately 50m x 50m. Nevertheless the continuity of the mineralisation is sufficient to enable a resource estimate in the Inferred Resource category. Future closer spaced infill drilling will allow higher resolution resource modelling on this area of the deposit and is likely to result in a higher average grade estimate in the future, but with a lower tonnage. Snowden suggest that structurally controlled high grade shoots with 2% or more copper may occur within the deposit and that infill drilling is also likely better to define these high grade lodes.

Clearly, additional drilling outside the H-Zone area is expected to increase and extend the resource considerably. Indeed, Snowden commented that mineralisation in the area has been confirmed by drilling over 7 km of strike length to at least 150 m vertical depth and that a considerable number of interesting geophysical IP anomalies remain to be drill-tested.

John Park
Chairman
26 September 2006

Qualified Person

Information in this report relating to the exploration results is based on data acquired under the supervision of Mr Christopher Davies B.Sc, M.Sc, DIC, Operations Director for African Eagle who is a Fellow of the Australasian Institute of Mining and Metallurgy, has in excess of 25 years 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.

The information in the technical report on which this statement is partly based that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by EurGeol Dr Edmund Sides B.A., M.Sc., D.I.C., of Snowden who is a professional member of the Institute of Geologists of Ireland (IGI). The IGI is a Recognised Overseas Professional Organisation (ROPO) as required under the JORC reporting guidelines.

EurGeol Dr Sides has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. EurGeol Dr Sides consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Glossary of technical terms used

Copper	A red metal widely used in the electrical and plumbing industries, chemical symbol Cu
Cut-off grade	The grade used to separate ore and waste such that only material classified as ore will be treated in order to recover the economic metal or mineral of interest.
Feasibility study	A study of the economic viability of the mining and production of base or precious metals or other minerals in such form and containing such detail as is customarily required by a bank or other financial institution engaged in mining project finance to enable it to determine whether to finance the development of a commercial mining operation.
Flotation	A method of separating ore mineral grains from other materials using surfactant chemicals to entice them to adhere to bubbles in an aerated mixture of crushed ore in water, allowing them to be skimmed from the surface of the mixture
Grade	The tenor or concentration by weight of a metal in a mineral deposit or ore
Indicated Resource	A category of Mineral Resource of higher confidence than an Inferred Resource, the estimation of which is prescribed by the JORC Code. This is the minimum level of resource classification required for Ore Reserve estimation under the JORC Code.
Inferred Resource	A category of Mineral Resource the estimation of which is prescribed by the JORC Code. Inferred Resources cannot be used as a basis for Ore Reserve estimation.
IP	Induced Polarisation, a geophysical prospecting method which measures the induction of electrical charge on the surfaces of conducting mineral grains such as metal ores, within the Earth
JORC Code	Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (Joint Ore Reserves Committee). See www.jorc.org/main.php
Kriging	A class of methods of estimating mathematically the distribution of a metal in three dimensions within the earth, together with the confidence of the estimate
Measured Resource	A category of Mineral Resource of higher confidence than an Indicated Resource, the estimation of which is prescribed by the JORC Code
Mineral Resource	An estimated tonnage and grade of mineralisation in the ground determined as prescribed by the JORC Code
Ore Reserve	That part of a Mineral Resource which can be demonstrated to be worked profitably when all modifying factors are taken into account.
Metallurgical	Relating to the study of the extraction, processing and properties of metals and their ores
Model block	A finite 3D element of the Earth for which the average grade can be estimated from drill data
Mt	Million Tonnes
Tonne	A metric tonne of 1000 kilograms, abbreviation t