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DRILLING AT MIYABI INTERSECTS HIGH GRADE ORE SHOOT

News Report
24 November 2004

African Eagle Resources plc (Ticker: AFE) is pleased to announce today that the latest core drilling results from the Faida Prospect at the Miyabi gold project in Tanzania have returned significant new intersections.

Hole MBDD16 intersected 58.3 metres grading 4.03 grams of gold per tonne (Au g/t), including higher grade zones of 21.5 metres at 3.0 g/t and 22.5 metres at 7.11 g/t. The latter of these zones included 12.8 metres at 11.54 g/t. Hole MBDD19, to the north of MBDD16 intersected 60.7 metres at 1.57g/t, including a central zone of 32.0 metres at 2.09 g/t and hole MBDD17 to the northeast intersected 61.2 metres grading 1.63 g/t, including 28.8 metres at 2.22 g/t.

These latest diamond drill holes are part of African Eagle's resource drilling programme at the Faida Prospect and the 11 holes drilled to date have shown that the gold mineralized zone has a true thickness of between 27 and 60 metres, a strike length of at least 300 metres and extends to a vertical depth of at least 120 metres. Geophysical surveys and soil geochemistry suggest that the mineralisation extends over at least 500 metres. Results from the drilling undertaken so far further suggest that a central higher-grade gold bearing zone averaging 24 metres in thickness and grading more than 3.0 g/t extends over a strike length of at least 150 metres. The mineralisation remains open at depth and to the east. A mineralised intersection of 7.0 metres at 1.1 g/t in hole MBDD18 indicates that it may also be open to the west. These latest results also suggest that the gold mineralisation increases with depth and may plunge to the east.

African Eagle's Managing Director, Mark Parker, remarked "The results from MBDD16 are particularly significant because they appear to reveal a higher grade "ore shoot" within the Faida gold zone. Shoots of this type can add greatly to the total resource ounces of gold in a project but they may be only 100 to 200 metres long and 20 to 50 metres thick, which makes them difficult to find except by sustained and systematic drilling."

"We believe that the 7 km by 2 km gold-bearing corridor at Miyabi has the potential to host other important gold structures of the Faida type. African Eagle has built up a comprehensive database of geophysical, geological and geochemical data, which our exploration team has been using to identify and target other possible gold structures. Our drilling programme over the coming months is designed to investigate these new targets, as well as extend the resource at Faida."

"We plan to complete a new resource estimate early in the New Year and we are confident that it will add significantly to the 140,000 oz currently in the Miyabi project inventory, which does not yet include any contribution from Faida".

Significant gold bearing intersections from holes MBDD16,17 and 19 are as follows:

The full drill results from the Faida area and elsewhere in the Miyabi corridor, together with a more technical explanation of the Miyabi corridor gold zone and a plan showing drilling locations, may be viewed at www.africaneagle.co.uk/projects-miyabi.html

John Park
Chairman
African Eagle Resources plc