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AFRICAN EAGLE RESOURCES plc NEW SHARE PLACING

News Report
14 May 2003

African Eagle Resources plc ("AER") is pleased to announce that the Company has reached agreement regarding a second placing of equity in the Company to Orogen Holding (BVI) Ltd, a subsidiary of Gold Fields Limited ("Gold Fields"). The placing will consist of 3,200,000 units, each comprising one AER Ordinary Share and one half Warrant, at a price of 10p per unit, with a total value of £320,000. Each two half warrants will entitle Gold Fields to purchase one additional Ordinary Share at a price of 11p at any time up to 31 March 2006. AER will apply at least 80% of the proceeds of this placing to the advancement of the Miyabi gold project in the Lake Victoria Goldfields of Tanzania.

The new placing agreement makes certain changes to the existing agreement between AER and Gold Fields regarding the Miyabi project:

• New licences acquired by AER within an agreed area of mutual interest around the existing Miyabi project area will become subject to the Agreement. These licences increase the area covered by the agreements by more than 150% to 576 sq km.
• The exclusive right granted by AER to Gold Fields to enter into a joint venture with AER on the Miyabi gold project is extended until 31 December 2003.
• On exercise of the right to joint venture, Gold Fields will be able to earn 51% of the Miyabi project by spending a further £2,000,000 on exploration, an increase of £500,000 over the £1,500,000 expenditure commitment originally agreed. The right to earn an additional 19% by completing a bankable feasibility study on the property remains unchanged.

The agreement has been approved by AER's Board and Gold Fields' Executive Committee, subject to drafting and execution of the relevant instruments and completion of due diligence.

AER is delighted with the continuing confidence shown by Gold Fields in its projects, operations and management, and looks forward to continuing progress on the Miyabi gold project. Work completed at Miyabi so far, in collaboration with Gold Fields, has included deep regolith sampling with RAB and aircore drills, airborne geophysics, multi-element geochemistry and regolith mapping. An extensive drilling campaign to investigate targets identified by the work to date is programmed to start in June - July 2003.

AER will make a full announcement of resulting shareholdings after the placing has been completed.

Gold Fields reports that it is the world's largest unhedged gold company, with annual attributable gold production of over 4.4 million ounces and attributable Mineral Resources of 187 million ounces and Mineral Reserves of 79 million ounces. It has operations in South Africa, Australia and Ghana (West Africa) and gold and platinum group metals exploration projects throughout the world. The principal trading market for the Company's ordinary shares is the Johannesburg Securities Exchange in South Africa (GFI). The company's American Depositary shares are listed on the New York Stock Exchange, also under the symbol GFI, as well as being listed on the London, Euronext, Paris, Brussels, and Swiss exchanges.

AER is a UK-based minerals exploration company with a focus on gold in East Africa. Current projects are located in Tanzania, Zambia and Mozambique.

John Park
Chairman
African Eagle Resources plc