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DRILL RESULTS FROM MIYABI IN TANZANIA CONFIRM MINERALISED BODIES EXTEND TO DEPTH WITH INTERSECTIONS UP TO 24 g/t GOLD

News Report
19 January 2004

African Eagle has received the results from a programme of drilling completed in December 2003 at its Miyabi gold project in the Lake Victoria Goldfield of Tanzania. The results included some significant gold intersections, up to 24 g/t gold over a width of 3m.

Mark Parker, African Eagle's Managing Director, commented "As we expected, the 2003 Miyabi drilling has improved the definition of the known mineralised structures and demonstrated their continued extension at depth. It has also revealed some new mineralised structures. Most importantly, the results will allow our geologists to generate a predictive model of the structure and geology of the gold deposit at Miyabi. We have achieved the main aim of the drilling programme, which was to understand the mineralisation and target the areas where future drilling can quantify gold resources."

Miyabi is an extensive shear hosted gold system which the Company is exploring together with a subsidiary of Gold Fields Limited. The new drilling results have now been provided to Gold Fields, which has until 31 January 2004 to exercise its option to enter a joint venture with African Eagle over the Miyabi project.

The Miyabi project area contains a shear zone hosted gold system discovered by African Eagle in 1999. The gold system lies within a 300 square km area of poorly exposed Nyanzian greenstone rocks, over which African Eagle now holds almost all the exploration rights. The current drilling programme focused on the 7km x 2km "Miyabi Mineralised Corridor" along the northwest of the greenstones, which contains several distinct gold-bearing structures. The principal purposes of the drilling were to demonstrate continuation of the known gold mineralisation at depth and along strike, and to develop structural models. These structural models will enable African Eagle to target specific areas for future drilling to establish reliable estimates of the gold resources.

African Eagle has granted Orogen Holding Ltd, a subsidiary of Gold Fields Limited, an exclusive right until 31 January 2004 to enter into a joint venture with African Eagle on the Miyabi project. If Gold Fields exercise this right, it can acquire 51% of the project by spending £2 million on exploration and 70% by completing a bankable feasibility study.

The recent drilling programme, completed on the 6 December, consisted of 53 reverse circulation (RC) holes for a total of 6461 metres. Samples were collected over 1m intervals and composited over 3m for assay. Laboratory results now received include the following intersections:

The Company's geologists are now analysing and interpreting these new results, together with the data, maps and sections from previous drilling and other exploration, and will then prioritise future drilling targets to establish reliable estimates of the gold resources.

John Park
Chairman
African Eagle Resources plc