African Eagle Resources plc

AFRICAN EAGLE SIGNS ALLIANCE WITH TROLL MINING LIMITED OVER URANIUM, COPPER AND GOLD PROPERTIES IN SOUTHERN TANZANIA

News Report
15 May 2007

Alliance covers an initial 1900 sq km
Uranium, copper and gold mineralisation identified
African Eagle will conduct exploration and Troll will expand project portfolio
African Eagle will gain 80% interests in successful discoveries
Troll licences complement African Eagle's newly awarded Shikula licence in same area

African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE) announces that it has signed a strategic alliance agreement with Troll Mining Limited (Troll), a private Tanzanian company with an extensive portfolio of prospecting licences in southern Tanzania which have known potential for uranium, copper, gold, coal and other commodities.

Under the terms of the agreement, African Eagle will explore four of Troll's Prospecting Licences covering 1225 km2 and a further four areas totalling 675 km2 for which licence applications have been lodged. African Eagle has already identified significant uranium, gold and copper anomalies from archive data covering the current licences. Where African Eagle's exploration yields promising results, it has the exclusive right to enter into Prospecting and Mining Agreements with Troll over the relevant licences. Under these Agreements the Company will be granted 80% participating interests in the licences.

Troll will use its experience and extensive network of contacts in southern Tanzania to acquire additional prospective tenements for the partnership and has agreed to maintain a minimum of five licences (or applications) covering not less than 500 km2 within the alliance at all times. The alliance is initially for three years, renewable by mutual agreement.

To maintain the alliance, African Eagle will pay Troll US$30,000 annually. African Eagle will also pay US$60 per square kilometre while it is exploring any licence under a Prospecting and Mining Agreement.

Troll's licences lie in the same area of southern Tanzania as the Shikula licence which was recently granted to African Eagle by the Tanzanian government. The licence, which covers 240km2 at the edge of the Rukwa Basin, contains a linear copper geochemical anomaly recorded in the 1950s and has uranium potential.

Mark Parker, African Eagle's Managing Director comments: "African Eagle is very pleased to welcome Troll Mining as a partner in southern Tanzania and looks forward to exploring this exciting portfolio of promising uranium, gold and copper prospects. The deal complements the Company's recent acquisition of the Shikula copper-uranium property in the same area, and is in line with African Eagle's move to package its uranium prospecting rights into an energy minerals division for spin out or joint venture."

John Park
Chairman
African Eagle Resources plc