African Eagle Resources plc

AFRICAN EAGLE RESOURCES PLC SIGNS FARM OUT AGREEMENT ON FINGOE ASSETS IN MOZAMBIQUE

News Report
13 April 2007

African Eagle Resources plc ("African Eagle") (AIM: AFE) announces that it has signed a farm out agreement with Pan African Mining Corp (TSX-V: PAF) for the exploration, development and exploitation of its five prospecting licences totalling 909 km2 in the Fingoe area of Tete Province in northwest Mozambique.

Under the terms of the Agreement, Pan African has the right to acquire African Eagle's Fingoe licences by carrying out and funding the exploration and development of the licences, starting with a regional exploration programme during the next twelve months. African Eagle shall retain a customary 2% NSR with respect to all mineral production from the licence area.

African Eagle's Managing Director Mark Parker said "Farming out these licences in the prospective Fingoe Belt of Mozambique will allow African Eagle to focus on its core projects while enabling shareholders to benefit from any future upside from the assets."

Mark Parker
Managing Director
African Eagle Resources plc