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AFRICAN EAGLE EXPANDS ITS TANZANIAN EXPLORATION PORTFOLIO
AND BEGINS DRILLING AT IGURUBI

News Report
29 November 2004

African Eagle (Ticker: AFE) announces that it has acquired an 837 square kilometre licence over a platinum target in eastern Tanzania and has signed option agreements with Tanzanian partners over eight new licence areas in the Lake Victoria Goldfield, adding a further 441 square kilometres to the Company's exploration holdings.

The Company also announces that drilling has begun at its Igurubi gold project in Tanzania.

African Eagle's growth strategy stands on two pillars: adding value to its priority projects through drilling and other exploration, and acquiring promising new opportunities as they arise.

In line with the first objective, the Company is pleased to report that it has begun reverse circulation drilling at its Igurubi gold project. An extensive shear zone gold system along the granite-greenstone contact at Igurubi has been worked by artisanal miners for many years and has yielded promising geochemical results. The first drilling results are expected in mid-December.

African Eagle has been awarded a reconnaissance licence over the Ikongwe Basic Complex, which has potential for nickel and platinum deposits. The licence has an area of 837 square kilometres, covering the Complex and surrounding areas, which lie in the Pare Mountains of eastern Tanzania. Platinum and palladium were recorded in serpentinite samples taken during the 1970's and quartz veining in the area is reported to carry significant gold mineralisation. Aeromagnetic evidence suggests that the complex may be much larger than indicated on published geological maps.

African Eagle has also signed six-month option agreements over eight licence areas with a total of 441 square kilometres in the Lake Victoria Goldfield.

Two of the licence areas under these options cover the northern part of the Zanzui Mafic Complex. The Company already holds title to the southern part of the Complex and earlier this year conducted reconnaissance platinum and nickel exploration with encouraging results. The new options at Zanzui were signed with the licence holder, the RSR Group.

RSR has also granted African Eagle options over two licences on the Iramba Plateau in the southeast of the Lake Victoria Goldfield. These properties include several colonial-era gold workings, including the Kinyanele Mine.

Four more options have been signed with other local partners. The first covers an area southeast of Resolute Mining Ltd's Golden Pride Mine in the Nzega greenstone belt. The second lies along a granite-greenstone contact near the extensive artisanal mining area of Nyaragusu at the northeast end of the highly prospective Rwamagaza greenstone belt, where Gallery Gold has recently announced significant new resources at the old Buck Reef mine. The third abuts two properties already under option to African Eagle in the Wamangola area, and has potential for platinum as well as gold. The fourth lies in Musoma District and contains part of the Suguti shear, granite-greenstone contacts and at least one old gold prospect.

In Tanzania, many prospecting licences are held by local companies which commonly seek outside partners with skills and finance. African Eagle's management and exploration teams are well qualified to assess the potential of such new areas quickly and cost-effectively. If this preliminary work confirms an area's promise, the Company undertakes a programme to quantify the deposit and add value to the asset. Almost all of African Eagle's current priority projects in Tanzania, including Miyabi and Igurubi, were initially acquired in this way.

John Park
Chairman
African Eagle Resources plc