African Eagle Resources plc

MKUSHI JOINT VENTURE PROGRESS UPDATE

News Report
4 December 2007

Pre–feasibility study nearing completion
Joint venture company established
Production decision on course for late 2008
Resource drilling progressing well

African Eagle Resources plc (“African Eagle” or “the Company”, ticker AIM: AFE, AltX: AEA) today announces a progress update from the Mkushi Copper Mines Joint Venture in central Zambia.

Mkushi is a joint venture between African Eagle and CGA Mining Limited (CGA), through their respective Zambian subsidiaries. CGA manages and funds the resource drilling and feasibility study while AFE manages a jointly funded regional exploration programme.

Both CGA and African Eagle have made substantial progress. CGA’s resource drilling programme is well advanced and to date, the partners have completed more than 33,000 metres of diamond and percussion drilling. Drilling within the 1970s era Munshiwemba open pit is underway, now that the pit has been pumped dry. CGA has generated a resource model from the drill results as the basis for the pre-feasibility study. This study is now expected to be ready by the end of January 2008, slow laboratory turn-around and other delays outside the JV partners’ control having pushed the completion date back a few weeks.

The current resource drilling programme will continue until mid-2008, after which the resources delineated will be converted to mineable reserves as part of the bankable feasibility study, scheduled for completion in late 2008. Geotechnical and sterilisation drilling will also be undertaken during this period.

African Eagle’s regional exploration programme is making excellent progress, with the aim of finding additional copper resources around Mkushi. Geochemical and geophysical surveying under this programme, as well as showing probable extensions of the known copper zones, have revealed new anomalies further southwest and northeast which have yet to be drill tested.

Overall, work at Mkushi is progressing extremely well and the partners expect to lodge an application for a mining licence with the Ministry of Mines in the New Year. The full bankable feasibility study is on track and the final decision to go into production will be made around the end of 2008.

Following signature of the full joint venture agreement in May, the two Mkushi Prospecting Licences were transferred to Mkushi Copper Joint Venture Limited and the shares of that company have now been allotted to the partners. Katanga Resources Ltd, the wholly owned Zambian operating subsidiary of AFE, now holds 2,450,000 shares (49% of the total) and Seringa Mining, a wholly owned subsidiary of CGA, holds 2,550,000 shares (51%).

Managing Director Mark Parker said: "We are pleased with the progress our partners and operators CGA have made on the project over the past few months. Despite minor operational delays, we look forward to completion of the pre-feasibility study. African Eagle’s regional exploration is also progressing well and gives strong indications of previously undiscovered mineralised zones in the Mkushi copper system.”

John Park
Chairman
African Eagle Resources plc

4 December 2007