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AFRICAN EAGLE RETAINS ITS INTEREST IN THE MIYABI PROJECT, TANZANIA

News Report
2 February 2004

African Eagle has received notice from Gold Fields Limited that following a recent review of its exploration projects, subsidiary Orogen Holding (BVI) Ltd will not exercise its option to enter into joint venture with African Eagle on the Company's Miyabi project in Tanzania.

Gold Fields acquired an option to enter into a 51% joint venture on the Miyabi project under two Subscription Agreements signed in May 2002 and June 2003, under which Orogen subscribed for African Eagle shares and warrants to a total of £820,000.

John Park, African Eagle's Chairman, said "Miyabi has benefited greatly from Gold Fields' technical and financial expertise over the last two years. Although they have chosen not to exercise their option, Gold Fields will remain significant shareholders in African Eagle and will continue to monitor progress at Miyabi in that capacity. To our minds, this demonstrates their belief that our exploration programme has the potential to uncover a significant gold resource."

African Eagle now retains the Miyabi project unencumbered and will continue its aggressive exploration there, focussing on resource definition. African Eagle's geologists are currently analysing and interpreting the results of recent drilling, together with the data, maps and sections from all the drilling and other exploration carried out over the past 18 months, with a view to prioritising future drilling targets to add to the gold resources on the property and to locate the mineable ounces Gold Fields believe the area has the potential to yield.

Although African Eagle plans to undertake the next phase of exploration from its own resources, several other mining groups have expressed considerable interest in the Miyabi project and the Company may enter into discussions with them.

In line with its strategy of assessing other licence areas in the Lake Victoria Goldfield, the Company has recently signed a six month option with Eb-Hance Ltd to evaluate the gold potential of prospecting licence 1975/2002 at Ugambilo in Kwimba District and has relinquished its rights over prospecting licences 1747/2001 (Ekta) and 2084/2002 (Zig-zag). Other possible projects are under negotiation.

John Park
Chairman
African Eagle Resources plc