African Eagle Resources plc

FURTHER POSITIVE DRILLING RESULTS FROM THE MKUSHI COPPER MINES PROJECT, ZAMBIA

News Report
31 July 2007

Latest drill results continue to define high grades of copper over substantial widths
New L zone ore body defined
Pre-feasibility study on track for completion in Q3, 2007

African Eagle plc ("the Company"; Ticker "AFE") announces drill results and a progress update from the Mkushi Copper Mines in central Zambia. Mineralised intercepts included:

17m at 2.73% copper
15m at 2.45% copper
31m at 2.13% copper
40m at 0.95% copper
6m at 7.9% copper

African Eagle's Managing Director Mark Parker comments "the pre-feasibility study at Mkushi is on track for completion Q3,2007 and we look forward to the results of the study which will include an updated resource statement. The drilling results continue to impress, in particular those from the newly defined L zone ore body".

The Mkushi Copper Mines Project is a Joint Venture between CGA Mining Limited (CGA) and African Eagle Resources plc (African Eagle), through their respective Zambian subsidiaries. CGA manages and funds the resource drilling and feasibility operations while African Eagle manages a jointly funded regional exploration programme. A full joint venture agreement between the parties was signed in May 2007, supplanting an earlier heads of agreement. A Zambian company, Mkushi Copper Joint Venture Ltd, has been established to own and operate the project.

The latest results relate to drilling completed by CGA during the second quarter 2007 as part of a resource drilling programme which will form the basis of a pre-feasibility study (PFS) expected to be completed by end of September. During the period, a total of 30 drill holes were completed for 6,485 metres, bringing the total drilling at Mkushi to date to more than 25,000m

The PFS will include a JORC-compliant resource calculation and a preliminary estimate of mineable open pit reserves, a process flow sheet, a preliminary mine plan and a marketing assessment. Initial metallurgical test work has indicated 95% recovery of the contained copper to a sulphide concentrate which contains no deleterious elements. Based on the findings of the PFS, a further drill programme will be designed to ensure bankability of the final feasibility study.

The new results show zones of high grade copper mineralisation over significant widths at H zone, at the southern end of the Munshiwemba open pit, and at L zone, a newly defined zone of mineralisation adjacent to H zone. The drilling at L zone indicates the presence of a large coherent ore body with high grade mineralisation. Key intercepts are:

Hole No	Prospect	From (m)	Width (m)	Copper %
Diamond Drill holes
MMU031	Munshiwemba	92	2	1.34
MMU033	Munshiwemba	117	8	3.99
and	Munshiwemba	140	17	2.36
MMU034	Munshiwemba	61	3	2.12
MH053	H Zone	179	8	0.97
MH056	H Zone	152	11	0.93
MH061	H Zone	180	9	1.69
And	H Zone	210	7	1.03
And	H Zone	222	5	1.92
MH062	H Zone	139	15	2.45
MH060	L Zone	110	4	3.10
MH060	L Zone	123	17	2.73
MH060	L zone	162	4	2.90
MH063	L Zone	128	10.5	2.02
MH066	L Zone	130	6	7.90
including	L Zone	132	3	14.05
RC Pre-Collar Drill Holes
MH061	H Zone	75	25	1.79
MH062	H Zone	33	21	1.68
MH063	H Zone	26	40	0.95
MH065	H Zone	31	31	2.13
MMU025	Munshiwemba	63	8	2.11
MC009	Coloquo	76	14	0.89
MH014	Coloquo	58	11	1.02

While the H zone, L zone and southern Munshiwemba drilling yielded high grades and significant thicknesses of mineralisation, it has proved difficult to define economic mineralisation in the northern section of the Munshiwemba zone, north of a dolerite dyke which is thought to have influenced the form of the mineralisation. Recent drilling (not yet assayed) has located mineralisation at least 7m thick to the south of the dyke, however, suggesting the potential to define an additional ore body in this area. The water is currently being pumped from the flooded Munshiwemba pit to allow access for further rilling in this area. The pumping commenced on 28 June and the water level has already dropped by 3m, with complete dewatering expected to take 3 months.

As part of the PFS, an Environmental Impact Assessment (EIA) and Mitigation Plan will be commissioned. On completion of the PFS and EIA, application will be made to the Ministry of Mines in Lusaka for a Mining Licence over the total area covered by project development. Initial discussions have been held with the regulatory authorities at the Ministry who have assured their complete support for the project development.

Under its regional exploration programme, African Eagle has completed soil geochemical sampling of the inner licence PL114 and submitted the samples to ALS-Chemex in Johannesburg for multi-element assay. The survey will be extended at coarser spacing to the outer licence PL290. African Eagle has also received an interpretation of the airborne geophysical survey completed in February 2007.

John Park
Chairman
African Eagle Resources plc

Qualified Person

Information in this report relating to exploration results is based on data reviewed by Mr Christopher Davies BSc, MSc, DIC, FSEG, Operations Director for African Eagle, who is a Fellow of the Australasian Institute of Mining and Metallurgy, has more than 26 years relevant 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.

Technicl Terms

A glossary of technical terms used by African Eagle in this announcement and other published material may be found at www.africaneagle.co.uk/african-eagle-projects-glossary.html