African Eagle Resources plc

AFRICAN EAGLE BEGINS DIAMOND DRILLING AT MOKAMBO PROJECT IN THE ZAMBIA COPPERBELT

News Report
5 December 2007

Highlights

Diamond drilling now in progress at Mokambo South
Soil sampling and geological mapping of Mokambo South completed
Mokambo North and South joint venture with Copperbelt Minerals plc
Mokambo South holds a historically reported deposit of ~6Mt at 2.3% copper
Project is 15km from Mufulira, Africa’s biggest underground copper mine

African Eagle’s Managing Director Mark Parker said: “This project is a major milestone for African Eagle, as the Mokambo area represents an exciting exploration target in the Zambian Copperbelt. From past drilling, significant sulphide copper deposits are known to occur in the area but the shallower oxide potential has yet to be tested. African Eagle and Copperbelt Minerals will now jointly explore approximately 12km strike length of potentially mineralised Lower Roan strata within the Mufulira syncline, a major fold structure which hosts the Mufulira Mine, Africa’s largest underground copper operation.”

African Eagle (“African Eagle” or “the Company”; Ticker: AIM: AFE, AltX: AEA”) today announces the start of drilling at Mokambo, near Mufulira in the Zambian Copperbelt, and the signing of a Heads of Agreement with Copperbelt Minerals plc (CML)., Under the Heads, the two companies, led by African Eagle, will jointly explore and develop the two prospecting licences they hold at Mokambo.

The two licences are Mokambo South (PLS 351), held by Katanga Resources Ltd (KRL), African Eagle’s wholly owned Zambian operating subsidiary and Mokambo North (PLS 350), held by CML’s wholly owned subsidiary, Platmin Congo Ltd. The two licences form a narrow strip along the border between Zambia and the Democratic Republic of Congo (DRC) and together comprise 25.9 square kilometres.

Much of the Mokambo project area is underlain by the highly prospective Lower Roan geological sequence, which hosts most of the world-class copper deposits of Zambia and neighbouring DRC. The Mokambo Project lies on the eastern limb of the Mufulira Syncline. The opposite western limb of the syncline contains the Mufulira copper mine, operated by Mopani Mines and situated 15km west of the project. The Mine has been in operation since 1933 and by 2000 had produced nine million tonnes (Mt) of copper.

Based on drilling conducted in the 1960s and 70s, Mokambo South was estimated to contain about 6Mt at 2.3% copper and Mokambo North was estimated to contain at least 3.8Mt at 1.69% copper in two separate lenses. African Eagle understands that these unclassified historical estimates refer to sulphide mineralisation only, as oxide copper mineralisation was of little interest at that time.

The Lower Roan rocks are well exposed in the project area, forming a 30m high ridge which can be traced for approximately 12km along strike. African Eagle has conducted a phase I exploration programme over Mokambo South, comprising geological mapping, geochemical soil sampling and gamma ray spectrometer surveys, and is currently extending this coverage to Mokambo North.

Drilling has started on a programme of 11 exploratory diamond drill holes, spaced at approximately one kilometre intervals, to test the continuity of the mineralisation and to establish the stratigraphic succession along strike. Based on this initial exploration programme, a resource definition drill programme will be implemented in 2008.

Under the Heads of Agreement, CML and AFE each have a 50% participating interest in the Mokambo Project. AFE will be the manager and operator of the project, and exploration and development will be funded pro-rata by both companies. The Heads will be replaced by a more formal joint venture agreement in due course.

CML is a private UK based mining company with copper exploration and development projects at Mokambo and at Deziwa and Ecaille near Kolwezi in the DRC.

John Park
Chairman
African Eagle Resources plc

5 December 2007