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DRILL RESULTS AND OTHER RECENT EXPLORATION AT MIYABI, TANZANIA

News Report
3 September 2003

African Eagle recently completed a programme of diamond and RC drilling which yielded some very good gold intersections, including 51metres at 2.2 grams per tonne, 41.5m at 2.8g/t and 30.8m at 3.8g/t.

The Company has also made good progress on its general exploration programme at Miyabi, completing additional airborne geophysical and multi-element soil geochemical surveys, an IP survey and high-resolution ground magnetic surveys. A programme of deep geochemical sampling using RAB drilling was completed recently. The results of all these surveys will be used to plan and optimise a major drilling programme scheduled to begin in October.

The Company has also recently taken an option over an additional licence in the area, bringing African Eagle's total holdings around Miyabi to 626 sq km.

One of the most promising undeveloped prospects in the Lake Victoria Goldfield, Miyabi is a shear zone hosted gold system, discovered by African Eagle using soil geochemical surveying. It contains several gold-bearing structures within the 7km x 2km "Miyabi Mineralised Corridor". Much of African Eagle's recent exploration has been directed at providing a better understanding of the disposition of the gold in the system, as the rocks are deeply weathered and do not outcrop at the surface.

The gold system lies in an outlier of Nyanzian greenstone rocks and African Eagle now holds almost the whole area of this outlier. The signature recently of an option agreement with Ekta Resources (Tanzania) Limited bringing African Eagle's Miyabi holdings to 626 sq km. The Company's current exploration programme is also directed towards identifying other gold mineralised structures within this area.

African Eagle is exploring Miyabi with Gold Fields Limited, which holds an exclusive right until December 2003 to enter into a joint venture on the property and has financed much of the current exploration through two equity placings in the Company.

DRILLING

A program of nine RC holes and seven orientated diamond drill holes with RC pre-collars, for a total of 1045 metres of RC and 301m of core drilling, was completed on 20 July. The aim of the drilling was to define better and improve understanding of the mineralised structures at Kilimani, Shambani and Ngaya, three of the individual Miyabi prospects. Laboratory results now received include the following better intersections:

The results confirm the continuity of the mineralisation at Kilimani and Shambani, and provide new information on Ngaya.

In addition, a 4960m programme of widely spaced RAB drilling was completed in late August, to provide geological information, to delineate strike extensions to the known prospects and to investigate the structure of the "Miyabi Corridor". Laboratory results are awaited.

OTHER EXPLORATION

A geophysical induced polarisation (IP) survey is currently underway over the Miyabi Corridor. Results to date are encouraging. The Corridor is expressed as a broad conductive, high-IP zone containing internal structure which accords well with the known mineralization and also indicates several other promising targets.

High resolution ground magnetic surveys with 10m traverse spacing have been run over the principal gold prospects and are being extended to cover much of the Miyabi Corridor. The results are giving considerable help in mapping and understanding the hidden geological structures which host the gold.

To explore the wider 626 sq km Miyabi area, African Eagle has carried out regional soil geochemistry and airborne geophysics.

The Company's soil sampling teams have completed a 400 x 400m staggered grid of the area and are now conducting closer-spaced infill sampling over anomalous areas. All soil samples were assayed for gold and the results have revealed several new anomalies. In addition, multi-element analysis is being conducted on the samples and the results to date provide important information on geology and mineralisation.

African Eagle has also completed airborne magnetic and gamma ray spectrometric surveys over the whole wider Miyabi area. The results provide valuable geological and structural information in this deeply weathered area and show that the Miyabi Mineralised Corridor lies on a major northeast trending structure.

The results of these and previous surveys are currently being used to plan a major drilling programme scheduled to begin in October.

Concurrently with the work at Miyabi, African Eagle is exploring at Eagle Eye, its iron-oxide copper gold discovery in Zambia. The Company anticipates that announcements of results at Eagle Eye will be made over the coming weeks.

John Park
Chairman
African Eagle Resources plc