African Eagle Resources plc

African Eagle awarded Mokambo South Prospecting Licence in the Zambian Copperbelt

News Report
18 September 2007

Highlights

Evaluation of archive data well advanced
Conceptual deposit of ~6 Mt at 2.4% copper estimated from 1960s drilling
Diamond drilling planned to verify and augment historical resource
Advanced JV negotiations with licence holder at Mokambo North

African Eagle's Managing Director Mark Parker commenting today said "The Mokambo South licence represents a significant exploration target for us as it contains a known copper deposit on the eastern limb of the Mufulira Syncline. The Mufulira copper mine, on the opposite western limb of the syncline, is Africa's largest underground copper mine."

African Eagle Resources plc ("African Eagle" or "the Company"; Ticker: AIM: AFE, AltX: AEA) today announces the award of the Mokambo South Prospecting Licence by the Ministry of Mines, Zambia. The licence is situated in the Zambian Copperbelt, approximately 90km northeast of Ndola by road, and forms a narrow strip covering 15 square kilometres along the border between Zambia and the Democratic Republic of Congo (DRC). The proximity of the licence to African Eagle's exploration activities at Ndola means that the Company can easily conduct work in the area.

Much of the licence is underlain by the highly prospective Lower Roan and Mine Series geological sequences, which host most of the world-class copper deposits of Zambia and neighbouring DRC.

Mokambo lies on the eastern limb of the Mufulira Syncline. The Mufulira copper mine, operated by Mopani Mines, is situated 15 km west of the licence, on the western limb of the Syncline. The Mine has been in operation since 1933 and by 2000 had produced nine million tonnes of copper.

The Mokambo area contains at least six stratiform copper sulphide deposits, grouped into three separate areas, referred to as the North, Central and South zones. African Eagle's licence covers the South zone. The mineralisation was investigated by drilling by a Mufulira Mine team in the 1950s and by a Romanian company, Geomin, in the 1970s. Geomin reported "probable and possible ore reserves" across the three zones of 41 million tonnes at an average grade of 1.72% copper, using a cut-off of 1.2%. The company started to sink a shaft near the central ore body in 1976, but abandoned development when it hit an aquifer and the workings flooded.

Since 1950, 22 diamond drill holes have been drilled within the Mokambo South licence area. Of these, 11 intersected significant copper mineralization, to depths of 1400m, over a strike length of 1km. From the results reported from these drill holes, the average grade of the mineralisation is 2.4% copper and the average thickness is about 4.6m, indicating a deposit of about 6 million tonnes with some 1.4 million tonnes of contained metal.

The Company is near to completing a thorough review of all existing data including logging of historical Mokambo core stored at nearby Kalalushi and will then undertake drilling to evaluate the Mokambo South Zone. This work will also assess the potential for copper oxide mineralisation not previously tested by drilling.

The adjacent Mokambo North licence was recently granted to UK-based Copperbelt Minerals Ltd and the two companies are negotiating to explore both licences jointly. The Mokambo North licence has been estimated to contain a conceptual deposit of at least 3.85 Mt at 1.69% copper in two separate lenses, based on reports of past drilling.

John Park
Chairman
African Eagle Resources plc