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NEW DRILL RESULTS FROM MIYABI
AND OTHER NEWS FROM TANZANIA

News Report
22 June 2004

African Eagle has received the first results from the current drilling programme at its Miyabi gold project in the Lake Victoria Goldfield of Tanzania. The results confirm the existence of significant mineralisation at the Faida prospect, which lies at the western end of the Miyabi gold corridor.

Elsewhere in the Lake Victoria Goldfield, the Company last week signed heads of agreement to explore the Igurubi gold prospect. Igurubi is a promising area of past small-scale gold mining which lies 175km east of Miyabi. The Company has also received promising gold-in-soil geochemical results from three of the seven new areas which it is evaluating under option.

African Eagle's Managing Director Mark Parker commented "Last year's drilling at Miyabi drew our attention to the Faida prospect and these latest results confirm that a wide zone of gold mineralisation occurs there. We will be drilling more holes to quantify the resource formally, but based on these results alone, we expect Faida at least to double our gold resources at Miyabi. Our acquisition of Igurubi and the positive results on the three other areas are in line with our strategy of identifying new prospects elsewhere within the prolific Lake Victoria Goldfield."

Miyabi is a shear zone hosted gold system discovered by African Eagle in 1999, within a 300 square km area of greenstone rocks, for which African Eagle holds almost all of the exploration rights.

During the first months of 2004, the Company's geologists conducted a thorough reappraisal of all the results from the project to date and identified several priority target areas including Faida, where gold occurs near a greenstone - granite contact.

The 2004 drill programme commenced in late May with diamond drilling of five holes for a total of 927 metres. Laboratory results now received include the following intersections:

The results show that the Faida gold mineralization is remarkably consistent in thickness and grade over a strike length of at least 220m and extends to a vertical depth of at least 120m, dipping at 55 degrees to the southeast. The mineralization remains open at depth and along strike.

More drilling is now required before a formal resource estimate can be made, but preliminary calculations based on average 35m true thickness and 1.5g/t grade indicate that the present drill results at least double the existing resource at Miyabi. Good potential exists to increase resources substantially by "step-out" drilling at Faida.

Over the coming months, the Company will carry out a systematic drilling programme to add to the existing resource at Miyabi, based on the recent data reappraisal. New targets identified by the reappraisal will also be drilled.

The Company last week signed heads of agreement to explore the Igurubi gold prospect, 175km east of Miyabi and 40km northeast of Resolute Mining's Golden Pride Mine. Igurubi is an area of past small-scale gold mining and preliminary work by the Company's geologists indicates that the licence contains a promising shear-zone hosted gold system. African Eagle can earn a 75% interest in the licence by exploring the prospect and making scaled annual payments totalling US$ 133,000 over three years to a local partner. The Company also has a right to buy out the remaining 25% interest if the project becomes a mine.

The Company has also completed reconnaissance soil geochemical surveys over seven areas which it holds under option within the Lake Victoria Goldfield. Positive gold-in-soil geochemical results were obtained from three of these areas. The three options will now be exercised and follow-up geochemical and geophysical surveys will be conducted.

John Park
Chairman
African Eagle Resources plc