News > News Releases

SECOND SHARE SUBSCRIPTION BY PHELPS DODGE MINING (ZAMBIA) LIMITED

News Report
20 December 2007

African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE, AltX: AEA) today announces that under the earn-in agreement signed on 3 August 2006 between the Company and Phelps Dodge Mining (Zambia) Limited (PDMZ), the latter has subscribed for a second tranche of Ordinary Shares in the Company.

PDMZ has subscribed for a tranche of 4,196,293 Ordinary Shares in the Company at a price of 11.64625 pence per Ordinary Share, representing a 10% premium to the average closing mid-market price of AFE's shares for the 10 consecutive dealing days immediately preceding 17 December 2007 and equivalent to a value of US$1,000,000 or £488,710.78. Following this issue, PDMZ now holds approximately 4.76% of the Company's issued share capital. Application has been made for the admission of the new Ordinary Shares to trading on AIM and dealings are expected to commence on or about 24 December 2007.

Under the terms of the earn-in agreement, African Eagle is spending at least 75% of the total amount subscribed on an agreed 15-month exploration programme on the Ndola licence in Zambia. The balance will be spent on other African Eagle projects and general working capital. PDMZ can earn a 51% interest in the project by spending a further US$3 million on exploration and then an additional 19% by completing a bankable feasibility study.

African Eagle's Managing Director, Mark Parker, comments: "We are pleased that PDMZ has completed its second share subscription, showing its continuing positive view of the Ndola project."

John Park
Chairman
African Eagle Resources plc

20 December 2007