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LUNGA PROJECT, ZAMBIA, REVERTS TO AFRICAN EAGLE ISSUE OF SHARES IN SOUTH AFRICA

News Report
8 October 2007

African Eagle Resources plc (African Eagle" or "the Company"; Ticker: AIM: AFE, AltX: AEA) announces that the Company has regained sole rights to the Lunga project in central Zambia.

African Eagle has regained sole rights to the Lunga Project by agreement with its former exploration partner, MinEx Projects (Pty) Ltd, under which African Eagle has issued 637 381 shares through its South African Register at a price of ZAR 2.42 per share and made a cash payment of ZAR 1,375,086 to the partner, which has now withdrawn from the project, relinquished all its earn-in rights and returned all data to African Eagle. Applications have been made for the shares to be listed on AIM and AltX. The new shares will rank pari passu with the existing ordinary shares and dealings on AIM and AltX are expected to commence on 12 October 2007.

The Lunga licence area is composed of rocks of the Katangan System which are similar in age to those of the Copperbelt. African Eagle and its former partners have completed geochemical and airborne geophysical surveys which have identified two main copper-gold prospects within the licence: the historic Buffalo mine in the north and the Karenda Dome in the south. There is also potential for calcrete-hosted uranium near the centre of the project area.

Managing Director, Mark Parker commented: "Lunga is a very prospective licence and we are delighted to have this project 100% back under our control. We now plan further work to explore some of the copper-gold and uranium occurrences already identified. Several other parties have expressed interest in the licence, but for the time being African Eagle will undertake and finance its own exploration programme."

John Park
Chairman
African Eagle Resources plc

8 October 2007

Qualified Person

Information in this report relating to exploration results is based on data reviewed by Mr Christopher Davies BSc, MSc, DIC, FSEG, FAusIMM, 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.

Technical 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