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REVIEW OF PROGRESS, FIRST QUARTER OF 2004

News Report
30 March 2004

In an extremely active first quarter of 2004, African Eagle has:

• Instigated a thorough review of all data generated from the Miyabi gold project to date
• Received the first drill results from the Eagle Eye copper-gold project in Zambia
• Recruited an experienced exploration manager for Zambia and Mozambique
• Signed an agreement to explore the Zanzui nickel/PGM project
• Signed option agreements over seven additional licences in the Lake Victoria Goldfield
• Opened an office in the City of London

Miyabi data review

Over the past two years, African Eagle has completed extensive geological, geochemical and geophysical surveys and carried out drilling programmes at Miyabi. The Company's geologists are currently making use of a cessation in drilling during the height of the rainy season to carry out a thorough review of all results to date.

The 7km x 2km Miyabi mineralised corridor contains a major gold mineralised shear-zone complex within altered mafic greenstone rocks characterised by high soil gold geochemistry, low electrical resistivity, high IP and strong magnetic anomalies associated with massive sulphides containing pyrrhotite. A schematic map of the Miyabi mineralised corridor may be found on the Company's web site at www.africaneagle.co.uk/projects-miyabi.html

African Eagle's past drilling at Miyabi has largely focussed on structures that have been worked by local miners. The data review has revealed a number of other drill targets, however, notably:

• Strike extensions to known mineralised structures, such as Ngaya, Faida and Kilimani
• A granite-greenstone contact along the northwest of the mineralised corridor
• A resistivity / IP boundary along the south of the corridor
• Numerous other IP, resistivity, magnetic and geochemical targets within the corridor

African Eagle has also carried out geochemical and geophysical surveys over a wider area around the main corridor, covering all 625 square kilometres under the Company's control. These surveys have revealed a significant new gold anomaly, confirming that gold targets exist beyond the main corridor.

The Company's geologists believe that there is potential for a gold deposit of at least 1 million ounces to be discovered within the corridor by following up the targets identified to date, and they are currently designing a drilling programme aimed at testing these targets and building up the gold resource inventory. With African Eagle now holding more than 90% of the project, the Company is well placed to add substantial value and plans to undertake the next phase of exploration utilising its own resources. For the longer term, several major mining groups have approached the Company to discuss the future of the project.

Drill results from Eagle Eye

Early in the quarter, African Eagle received the first results from its drilling and trenching programmes at the Eagle Eye copper and precious metals project in Zambia. The programme was designed to test some of many targets within extensive iron-oxide-copper-gold (IOCG) mineralisation which had been revealed by the Company's earlier geochemical and geological surveys. The results, which were reported of 10 February 2003, were encouraging, demonstrating copper sulphides in the system and showing some impressive mineralised intersections. The drilling programme will recommence at the end of the rainy season expected in May 2004. The Company plans soon to begin extending its detailed geochemical survey to cover anomalies in the northeast, and is obtaining quotes for a high-resolution airborne geophysical survey to be flown in May or June over the whole licence area.

Recruitment of an exploration manager for Zambia and Mozambique

Now that African Eagle has demonstrated the potential of its holdings in the region, the Company is pleased to report that it has recruited Clive Arthur as Exploration Manager responsible for operations in Zambia and Mozambique. Clive, who will be based in Lusaka, is an experienced economic geologist with over twenty years in precious metals, base metals and precious stones exploration.

After graduating from the University of Aberystwyth in 1980, Clive joined Anglovaal Ltd as a mine geologist, moving to exploration after three years. In 1987, after returning to Aberystwyth to take his MSc, Clive was appointed by JCI as Senior Exploration Geologist. In 1990, he joined Anglo-American's basin analysis team, working on the gold-bearing volcano-sedimentary basins of southern Africa. In 1997, Clive left Africa to become Exploration / Project Manager with Kazakhstan Minerals Corporation. Since 1999, he has been working as an independent consultant, mostly on projects in Eastern Europe and the FSU. He gained his MBA in 2003.

Clive is accustomed to working in Africa and is familiar with a wide range of prospecting techniques, evaluation, engineering and extraction methods. He has a thorough understanding of the business of exploration and mining and is highly proficient in IT.

Agreement to explore the Zanzui nickel/PGM project

The Company has signed an agreement with Shanta Mining Ltd for joint exploration of the Zanzui basic complex in Tanzania, which has potential for nickel, platinum group metals and gold. African Eagle controls the southern part of this 180 square kilometre complex while Shanta holds options over the licences covering the northern part. Under the agreement, the two companies will fund exploration and share any discoveries in the ratio of the areas contributed, 60% Shanta and 40% African Eagle. Shanta is managing the work and has already almost completed a reconnaissance soil geochemical survey.

Option agreements over seven licences in the Lake Victoria Goldfield

In line with the strategy of acquiring and cost-effectively investigating areas with gold potential, the Company has recently signed 6-month option agreements with local Tanzanian partners over 7 prospecting licences in the Lake Victoria Goldfield. If exercised, these options will grant the Group 90% holdings in the properties, in consideration of the Group undertaking the exploration of the licences and making annual payments between US$ 700 and US$ 6,000 per licence.

A schematic map showing the geology of the Lake Victoria Goldfield and the locations of all the Company's current options and licence holdings may be found on the Company's web site at www.africaneagle.co.uk/projects-tanzania.html

Also in line with its strategy of rapidly assessing licence areas, the Company has relinquished its options over prospecting licences 1747/2001 (Ekta) and 2084/2002 (Zig-zag).

London office

During March, the Company opened an office in the City of London. The new office will be the Group's headquarters and will allow the Company better to maintain contact with its investors and stakeholders and to expand its UK-based technical capabilities.

The office is at:

2nd Floor 6-7 Queen Street London EC4N 1SP

Tel: +44 20 72 48 60 59 Fax: +44 20 76 91 77 45 Email: info@africaneagle.co.uk

John Park
Chairman
African Eagle Resources plc