African Eagle Resources plc

AFRICAN EAGLE AGREE TO JOINT VENTURE WITH RANDGOLD RESOURCES ON THE MIYABI GOLD PROJECT IN TANZANIA

News Report
3 May 2007

Option and farm-in agreement signed between African Eagle and Randgold Resources
Randgold will fund, perform and accomplish a pre-feasibility study to earn a 50% interest in the Miyabi project
African Eagle can then retain a 49% stake in the Project by co-funding a full feasibility study, or dilute to 35%
Randgold to arrange development finance on a production decision

African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE) today announces that it has entered into a Joint Venture with a wholly-owned subsidiary of Randgold Resources ("Randgold") on its +500,000 ounce Miyabi Gold Project in the Lake Victoria Goldfield of Tanzania.

The Joint Venture has the form of an option and farm-in agreement. Under the initial option, Randgold will carry out and fund an agreed phase-1 exploration programme by end of May 2008. This programme will consist principally of a series of diamond drill hole fence lines to investigate the geology, structure and controls on mineralisation across the width of the Miyabi corridor. Randgold will then have the right to earn a 50% interest in the project by conducting and funding a pre-feasibility study to agreed parameters. Following the pre-feasibility study, African Eagle can retain a 49% stake in the Project by co-funding a full feasibility study, or dilute to a 35% stake if Randgold provides the funding in full. Randgold, as Project Manager will also arrange the financing for the development of a mine.

Randgold Resources is an Africa-focussed international gold mining and exploration business with listings on the London and New York Nasdaq exchanges. Randgold has a strong track-record of exploration and development success including the 7.5 million ounce Morila deposit in southern Mali, the six-plus million ounce Yalea deposit at Loulo in western Mali and the three million ounce Tongon deposit in Côte d'Ivoire. Randgold successfully financed and developed the Morila mine, which has produced more than four million ounces of gold since it was brought into production in October 2000. It also financed and developed the Loulo Mine which was officially opened in November 2005 and is scheduled to produce 250,000 ounces per year for six years, from an open pit operation. Development of the Loulo underground operation has commenced and will significantly enhance the value and extend the life of mine. Randgold recently completed a pre-feasibility study on the Tongon deposit and holds a portfolio of exploration projects in Mali, Côte d'Ivoire, Senegal, Burkina Faso, Ghana and Tanzania.

African Eagle's Managing Director Mark Parker commented "We are delighted to have signed one of Africa's most exciting and successful gold companies, as our partner at Miyabi. Randgold has a strong mining and geological team and African Eagle will benefit enormously from this additional expertise in evaluating the Miyabi project and taking it through to production. We look forward to making swift progress with Randgold on the Miyabi project".

John Park
Chairman
African Eagle Resources plc