(AFE) African Eagle Res

6 February 2012 

African Eagle Resources plc

("African Eagle" or the "Company")

Close of IFC Funding

African Eagle Resources plc (AIM: AFE; AltX: AEA) is pleased to announce that further to its announcements of 9 November 2011 and 4 January 2012, the Company has closed the subscription agreement and issued and allotted 45,509,570 ordinary shares of 1p each in the capital of the Company ("Ordinary Shares") to IFC, a member of the World Bank Group, at a placing price of 6.8 pence per share to raise £3.1 million (approximately US$5 million). Funds will primarily be used to finance the evaluation of the Company's Dutwa Nickel Project.

Application to the London Stock Exchange has been made for these new Ordinary Shares to be admitted to trading on the AIM market of the London Stock Exchange ("Admission"). It is expected that Admission will become effective on or around 8.00 a.m. on 9 February 2012.

The new ordinary shares will rank pari passu with the existing Ordinary Shares of the Company.

Following Admission of the new Ordinary Shares, the Company will have 455,095,698 fully paid Ordinary Shares in issue and IFC will have an interest in 45,509,570 Ordinary Shares, representing 10.0% of the Company's total voting rights.

About Dutwa

Dutwa was discovered in 2008 and is a nickel laterite project with unusually beneficial geometallurgical properties.  Since discovery, the progress of development has been rapid.  Dutwa is defined by a JORC resource of 99 million tonnes at 0.93% Ni, offering ready mining from two hilltop deposits and straightforward low consumption atmospheric acid leaching, leading to strong economics. The most recent financial modelling, prepared in early 2011, projected cash operating costs of approximately $3.50/lb., a post tax NPV₁₀ of $630M at $9/lb. nickel and a projected capital payback period between three and five years.  The current BFS and ESIA development is directed toward defining the full environmental, social, technical and economic performance of Dutwa.

About African Eagle

African Eagle Resources Plc is a junior mining developer and explorer with development projects in Tanzania and Zambia.  The Company's flagship project is the Dutwa Nickel project, located about 25 kilometres south of Lake Victoria and 140 kilometres east of Tanzania's second city, Mwanza, within greenstone gold belts which host many of Tanzania's operating and developing gold mines.  The Company is quoted on the AIM market of the London Stock Exchange (AIM: AFE) and on Johannesburg's AltX.

Technical terms

A glossary of technical terms used by African Eagle in this announcement and other published material may be found at www.africaneagle.co.uk/p/glossary.asp

For further information:

Please see the Company's web site at www.africaneagle.co.uk or contact one of the following:

African Eagle Resources plc
Trevor A. Moss (CEO)
Yasumi Toyoda (Investor Relations)
+44 20 7248 6059

Canaccord Genuity Limited
Rob Collins
Andrew Chubb
+ 44 207 050 6500

Ocean Equities Limited
Guy Wilkes
+44 20 7786 4370

Russell & Associates, Johannesburg
Charmane Russell
Marion Brower+27 11 8803924
+27 82 8928052

African Eagle Resources plc

("African Eagle" or the "Company")

BOARD CHANGES

African Eagle Resources plc (AIM: AFE; AltX: AEA) is pleased to announce the addition of two independent Non-Executive Directors to its Board of Directors who will bring additional expertise in support of the development of its flagship Dutwa Project in Tanzania, and improve compliance with current best practice in corporate governance.

Appointment of Independent Non-Executive Directors

The Company is very pleased to welcome both Mr. Don Newport and Dr. Christopher R. Pointon to the Board as independent Non-Executive Directors.  As a result of these appointments, the Non-Executive board composition will be five members: Messrs Pointon and Newport; along with existing Board members Mr. Geoffrey Cooper, Mr. Julian McIntyre and Chairman Mr. Euan Worthington. 

Mr. Don Newport

Mr. Don Newport is a veteran of the London mine finance industry with over 35 years of experience in the banking sector; 23 of those years were spent exclusively in the mining and metals sector.  After managing the Barclays Bank Metals & Mining Team, Mr. Newport went on to lead the global mining finance department of Standard Bank, establishing a significant portfolio of transactions in challenging emerging market situations often for first-time project sponsors.  Closing transactions in a wide variety of locations in Africa, North and South America, Europe, Central Asia and the FSU, China and Australia Mr. Newport established himself as a leader in global mining finance.  In 2008 Mr. Newport was honoured with the Mining Journal's Lifetime Achievement Award for "an outstanding contribution to the advancement of the international mining industry".  Currently Mr. Newport is a Non-Executive Director of Wolf Minerals Limited.

Dr. Christopher Pointon

Dr. Chris Pointon has wide international experience in the resources industry and a strong track record of building and managing new organisations in a diversity of cultural environments. He led BHP Billiton's Stainless Steel Materials division for 6 years, building it into one of the largest global nickel and ferrochrome producers with annual sales exceeding US$3 billion.  This business included Samancor Chrome, the second largest ferrochrome producer based in South Africa, of which he was Chief Executive Officer.  Dr. Pointon's career commenced in mineral exploration and business development with Rio Tinto, Billiton, Gencor and BHP Billiton, progressing through operations to general management.  He was a member of BHP Billiton's Executive Committee from that company's formation in 2001 until his retirement in 2006.  Dr. Pointon is a Non-Executive Director and Deputy Chairman of Ruukki Group plc, and is a consultant to private equity investors.

Euan Worthington, Chairman of African Eagle commented, "I am very pleased that the Board of African Eagle has managed to attract individuals of the calibre and quality of Chris and Don to join us and we look forward to benefiting from their wealth of experience as we continue the development of our exciting Dutwa Nickel project.  The appointment of individuals of such strength is another step in the transformation of African Eagle from an explorer to a mine developer and we look forward to a strong future."

Appendix:

Information provided in accordance with paragraph (g) of Schedule 2 to the AIM rules:

1. Details of full name, age, previous names: Mr. Donald Macfee Newport (58)

2. Names of all companies and partnerships of which the director has been a director or partner at any time in the previous five years, indicating whether or not the director is still a director or partner:

1. Details of full name, age, previous names: Mr. Christopher Richard Pointon (63)

2. Names of all companies and partnerships of which the director has been a director or partner at any time in the previous five years, indicating whether or not the director is still a director or partner:

About African Eagle

African Eagle Resources plc is a junior mining explorer and developer with development projects in Tanzania and Zambia.  The Company's flagship project is the Dutwa Nickel project in Tanzania located about 25km south of Lake Victoria and 140km east of Mwanza within greenstone gold belts which host many of Tanzania's operating and developing gold mines.  The Company is quoted on the AIM market of the London Stock Exchange (AIM: AFE) and on the AltX of the Johannesburg Stock Exchange (AltX: AER).

About Dutwa

Dutwa was discovered in 2008 and is a nickel laterite project with unusually beneficial geometallurgical properties.  Since discovery, the progress of development has been rapid.  Dutwa is defined by a JORC resource of 99 million tonnes at 0.93% Ni, offering ready mining from two hilltop deposits and straight forward low consumption atmospheric acid leaching, leading to strong economics. The most recent financial modelling, prepared in early 2011, projected cash operating costs of approximately $3.50/lb., a post tax NPV of $630M at $9/lb. nickel and a projected capital payback period between three and five years.  The current BFS and ESIA development is directed towards defining the full environmental, social, technical and economic performance of Dutwa.

Technical terms

A glossary of technical terms used by African Eagle in this announcement and other published material may be found at www.africaneagle.co.uk/p/glossary.asp 

For further information:

Please see the Company's web site at www.africaneagle.co.ukor contact one of the following:

African Eagle Resources plc
Euan Worthington (Chairman)
Trevor A. Moss (CEO)
Yasumi Toyoda (Investor Relations)
+44 20 7248 6059

Canaccord Genuity Limited
Rob Collins
Andrew Chubb
+ 44 207 050 6500

Ocean Equities Limited
Guy Wilkes
+44 20 7786 4370

Russell & Associates, Johannesburg
Charmane Russell
Marion Brower+27 11 8803924
+27 82 8928052

African Eagle Resources plc

("African Eagle" or the "Company")

APPOINTMENT OF BFS ENGINEERING CONTRACTOR FOR DUTWA

African Eagle Resources plc (AIM: AFE; AltX: AEA) is pleased to announce that after an extensive bidding and adjudication programme it has selected Lycopodium Minerals Pty Limited of Perth, Western Australia as the engineer to prepare the bankable feasibility study (the "BFS") for its flagship Dutwa project in Tanzania.

In the latter part of 2011 the Company issued requests for proposals for the engineering of the BFS to nine international EPCM firms. After a detailed and rigorous adjudication process performed through January 2012, Lycopodium Minerals Pty Limited ("Lycopodium") has been selected as engineer for the BFS.

Lycopodium was judged to offer the best service to the Company due to its strength in the design, engineering and construction of hydrometallurgical process plants; its experience defining and managing transportation and logistics for mining projects, particularly within Tanzania; the quality of the individuals to be engaged in the key roles of the BFS; and its commitment to the successful completion of the Dutwa project.  Lycopodium will manage all engineering tasks for the Dutwa project process plant and related facilities, including tailings management, and will compile the final BFS report which will incorporate inputs from other Company contractors such as Snowden (resource and mine planning engineer) and SGS (pilot plant test work).

Lycopodium completed Tanzania's first modern gold processing plant and infrastructure at Resolute Mining's Golden Pride Mine in 1998. This 1.5 Mtpa gold project presented significant logistical challenges in a developing country where road and rail infrastructure are limited.  Building on this success, Lycopodium has emerged as the pre-eminent mining EPCM engineer and contractor in Tanzania, completing such projects as Geita for AngloGold Ashanti and Buzwagi for African Barrick.  Moreover, Lycopodium is currently performing engineering services for a number of other nickel projects in Tanzania and Australia.  Lycopodium will commence the engineering immediately with full mobilisation of the project team to occur in early February.

Trevor A. Moss CEO of African Eagle commented, "After a very competitive bidding process, during which several competitors presented strong credentials, I am delighted that we have been able to select Lycopodium as the engineer for the completion of the Dutwa BFS.  Lycopodium's unrivalled experience in the study and development of projects in Tanzania is a fundamental skill which will contribute to the success of Dutwa.  We look forward to a long and beneficial relationship with them."

About Dutwa

Dutwa was discovered in 2008 and is a nickel laterite project with unusually beneficial geometallurgical properties.  Since discovery, the progress of development has been rapid.  Dutwa is defined by a JORC resource of 99 million tonnes at 0.93% Ni, offering ready mining from two hilltop deposits and straightforward low consumption atmospheric acid leaching, leading to strong economics. The most recent financial modelling, prepared in early 2011, projected cash operating costs of approximately $3.50/lb., a post tax NPV₁₀ of $630M at $9/lb. Ni and a projected capital payback period between three and five years.  The current BFS and ESIA development is directed toward defining the full environmental, social, technical and economic performance of Dutwa.

About African Eagle

African Eagle Resources plc is a junior mining explorer and developer with development projects in Tanzania and Zambia.  The Company's flagship project is the Dutwa Nickel project in Tanzania, located about 25kmsouth of Lake Victoria and 110km east of Tanzania's second city, Mwanza, within greenstone gold belts which host many of Tanzania's operating and developing gold mines.  The Company is quoted on the AIM market of the London Stock Exchange (AIM: AFE) and on Johannesburg's AltX.

Technical terms

A glossary of technical terms used by African Eagle in this announcement and other published material may be found at www.africaneagle.co.uk/p/glossary.asp

For further information:

Please see the Company's web site at www.africaneagle.co.ukor contact one of the following:

African Eagle Resources plc
Trevor A. Moss (CEO)
Yasumi Toyoda (Investor Relations)
+44 20 7248 6059

Canaccord Genuity Limited
Rob Collins
Andrew Chubb
+ 44 207 050 6500

Ocean Equities Limited
Guy Wilkes
+44 20 7786 4370

Russell & Associates, Johannesburg
Charmane Russell
Marion Brower+27 11 8803924
+27 82 8928052

African Eagle Resources plc

("African Eagle" or the "Company")

SGS SELECTED FOR METALLURGICAL PILOT TESTING

African Eagle Resources plc (AIM: AFE; AltX: AEA) is pleased to announce that it has selected SGS Metallurgy of Perth, Western Australia to perform the pilot-scale hydrometallurgical testing programme for its flagship Dutwa Nickel project in Tanzania.  The pilot test work will be performed to confirm and finalise the atmospheric tank leach flowsheet for Dutwa.   The pilot test work programme will commence at the facilities of SGS Lakefield Oretest in the second quarter of this year and forms an essential part of the Dutwa bankable feasibility study ("BFS"), which is due for completion around the end of 2012.

As previously announced, the Company has chosen atmospheric tank leaching as the primary metallurgical process method to be used for the leaching of Dutwa ores and has defined a preliminary process flowsheet for the Dutwa plant.  In order to finalise the flowsheet and to predict full plant metallurgical performance the Company will, commencing in the second quarter of 2012, perform a series of laboratory tests on representative ore samples.

Over the past twelve months, the Company has conducted a thorough worldwide research campaign assessing the capability of independent metallurgical laboratories in order to assess their facilities and technical capacity to undertake the requisite pilot-scale atmospheric tank leach testwork for the Dutwa project.  The Company selected SGS Metallurgy and their facilities at SGS Lakefield Oretest in Perth, Western Australia as a result of their unparalleled expertise in nickel hydrometallurgical pilot testing.

SGS Metallurgy is recognised as the world leader in the development and demonstration of bankable flow sheets and pilot plant test work programmes. With a purpose built, state-of-the art hydrometallurgical facility based in Perth, SGS Metallurgy has successfully completed a significant number of hydrometallurgical piloting campaigns over the past twelve years providing comprehensive metallurgical testing services to a large number of global resource projects.  Nickel laterite projects previously piloted in Perth by SGS Metallurgy include Niquel do Vermelho, Ravensthorpe and Shevchenko - the latter two included similar atmospheric tank leaching plants as will be employed at Dutwa.

The pilot plant work programme of continuous and fully integrated testing is in final development and will confirm the process design criteria, reagent consumptions, metal recoveries and overall performance of the Dutwa atmospheric leach process flowsheet.  The pilot plant will treat ore samples representative of the planned mining schedule at Dutwa.  Ore samples will be obtained from an upcoming large-core drilling programme developed in consultation with Snowden (Perth, W.A).

About Dutwa
Dutwa, which was discovered in 2008, is a nickel laterite resource with unusually beneficial geometallurgical properties.  Since discovery, the progress of development has been rapid.  Dutwa is defined by a JORC resource of 99 million tonnes at 0.93% Ni, offering ready mining from two hilltop deposits and straightforward low consumption atmospheric acid leaching, leading to strong economics. The most recent financial modelling, prepared in early 2011, projected cash operating costs of approximately $3.50/lb, a post tax NPV10 of US$630M at $9/lb. Ni and a projected capital payback period between three and five years.  The current BFS and ESIA development is directed toward defining the full environmental, social, technical and economic performance of Dutwa.

Technical terms
A glossary of technical terms used by African Eagle in this announcement and other published material may be found at www.africaneagle.co.uk/p/glossary.asp

For further information:

Please see the Company's web site at www.africaneagle.co.uk or contact one of the following:

African Eagle Resources plc
Trevor A. Moss (CEO)
Yasumi Toyoda (Investor Relations)
+44 20 7248 6059

Canaccord Genuity Limited
Rob Collins
Andrew Chubb
+ 44 207 050 6500

Ocean Equities Limited
Guy Wilkes
+44 20 7786 4370

Russell & Associates, Johannesburg
Charmane Russell
Marion Brower
+27 11 8803924
+27 82 8928052