African Eagle Resources plc

African Eagle Resources lists on the Alternative Exchange of the Johannesburg Stock Exchange (AltX)

News Report
24 August 2007

Highlights

Largest capital-raising on AltX by an exploration and development company
Placement of 53 457 310 shares at R1.95 a share to raise R104.2 million
The Company's exploration programme now fully funded for the next 24 months
About 30% of African Eagle's shareholder register is now in South African investors' hands

African Eagle Resources plc (AIM: AFE, AltX: AEA), a mineral exploration and development company with projects in Zambia, Tanzania and Mozambique, lists on the Alternative Exchange of the Johannesburg Stock Exchange (AltX) today following a placement of 53 457 310 shares at a price of R1.95 a share.

Commenting today, African Eagle Chairman John Park said "We are enormously proud to be notching up some important AltX firsts.

"We are the first AIM-listed resource company without South African assets or previous South African connections to list on AltX and ours is the biggest capital-raising to date on AltX by an exploration and development company."

Park added "The relative ease of meeting AltX's requirements, coupled with the South African market's understanding of mining and Africa, and its strong appetite for exploration ranked high amongst African Eagle's reasons for choosing AltX over other options."

Reflecting the last of these points, he said, was the company's 'remarkable' success in raising a total of R88 million through a private placement of 45 457 310 African Eagle shares with South African investors prior to the AltX listing. The other 8 000 000 shares were placed with JP Morgan, a longstanding UK shareholder.

The raising means African Eagle can now show some 30% of its shareholder register as being in South African hands. The capital raised means African Eagle's exploration programme will be fully funded over the next 24 months, and the company will have enough capital to bring various projects to feasibility stage.

Noah Greenhill, Head of Marketing and Business Development at the JSE said: "We believe it is testimony to the quality of AltX that African Eagle is the first company with no South African assets to dual-list on the JSE.

We are delighted that it is an African, resource-based company. Capital has been raised in South Africa and we offer an environment in which there is liquidity without added regulatory burden."

For further information:

Mark Parker
Managing Director, African Eagle
+44 20 7248 6059
+44 77 5640 6899

Nicola Marrin
Seymour Pierce
+44 20 7107 8000

Ed Portman / Leesa Peters
Conduit PR, London
+44 20 7429 6607

James Duncan
Russell & Associates, Johannesburg
+ 27 11 8803924 / +27 82 8928052