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SHARE PLACING WITH GOLD FIELDS CONCLUDED

News Report
13 June 2003

African Eagle is pleased to announce the completion of a Placing by the Company with Orogen Holding (BVI) Limited, a subsidiary of Gold Fields. The terms of the Agreement were outlined in our News Release of 14 May 2003.

The placing consists 3,200,000 Ordinary Shares at a price of 10p each, with 1,600,000 Warrants to purchase additional Ordinary Shares at a price of 11p each up to 31 March 2006. AER will apply at least 80% of the £320,000 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:

• The new licences acquired by AER 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.
• Gold Fields’ exclusive right 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.

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.

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 focussed on gold in East Africa with projects in Tanzania, Zambia and Mozambique.

The table below shows the effects of this transaction on the numbers of shares and the percentages of the issued share capital that will be held by Directors and other significant shareholders.

Note 1 The Company’s previous statement of directors’ interests contained data resulting from a typographical error for the number of shares held by John Park and connected persons, which is corrected here.
Note 2 Orogen Holding (BVI) Limited is a 100% subsidiary of Gold Fields Limited.
Note 3 Mr Rowan’s interests include the holdings of Sunvest Corporation Ltd of which Mr Rowan is the majority shareholder.

John Park
Chairman
African Eagle Resources plc