African Eagle Resources Regulatory News (AFE)

8 Oct 2007 15:00

African Eagle Resources PLC08 October 2007 LUNGA PROJECT, ZAMBIA, REVERTS TO AFRICAN EAGLE ISSUE OF SHARES IN SOUTH AFRICA African Eagle Resources plc (African Eagle" or "the Company"; Ticker: AIM: AFE,AltX: AEA) announces that the Company has regained sole rights to the Lungaproject in central Zambia. African Eagle has regained sole rights to the Lunga Project by agreement withits former exploration partner, MinEx Projects (Pty) Ltd, under which AfricanEagle has issued 637 381 shares through its South African Register at a price ofZAR 2.42 per share and made a cash payment of ZAR 1,375,086 to the partner,which has now withdrawn from the project, relinquished all its earn-in rightsand returned all data to African Eagle. Applications have been made for theshares to be listed on AIM and AltX. The new shares will rank pari passu withthe existing ordinary shares and dealings on AIM and AltX are expected tocommence on 12 October 2007. The Lunga licence area is composed of rocks of the Katangan System which aresimilar in age to those of the Copperbelt. African Eagle and its former partnershave completed geochemical and airborne geophysical surveys which haveidentified two main copper-gold prospects within the licence: the historicBuffalo mine in the north and the Karenda Dome in the south. There is alsopotential for calcrete-hosted uranium near the centre of the project area. Managing Director, Mark Parker commented: "Lunga is a very prospective licenceand we are delighted to have this project 100% back under our control. We nowplan further work to explore some of the copper-gold and uranium occurrencesalready identified. Several other parties have expressed interest in thelicence, but for the time being African Eagle will undertake and finance its ownexploration programme." John ParkChairmanAfrican Eagle Resources plc 8 October 2007 For further information, see the Company's web site www.africaneagle.co.uk orcontact one of the following: Mark ParkerManaging Director+44 20 7248 6059+44 77 5640 6899 Nicola MarrinSeymour Pierce+44 20 7107 8000 Ed Portman / Leesa PetersConduit PR, London+44 20 7429 6607 James DuncanRussell & Associates, Johannesburg+ 27 11 8803924 / +27 82 8928052 Qualified Person Information in this report relating to exploration results is based on datareviewed by Mr Christopher Davies BSc, MSc, DIC, FSEG, FAusIMM, OperationsDirector for African Eagle, who is a Fellow of the Australasian Institute ofMining and Metallurgy, has more than 26 years relevant experience in mineralexploration and is a Qualified Person under AIM rules. Mr Davies consents to theinclusion of the information in the form and context in which it appears. Technical terms A glossary of other technical terms used by African Eagle in this announcementand other published material may be found at www.africaneagle.co.uk/african-eagle-projects-glossary.html About African Eagle African Eagle is a mineral exploration and development company operating ineastern and central Africa. The Company's principal advanced projects are theMkushi Copper Mines project in Zambia and the Miyabi gold project in Tanzania,which are being fast-tracked towards production. The Company also holds a largewell-balanced portfolio of promising earlier stage gold and base metal projects,including the Ndola copper project and the Eagle Eye iron-oxide copper goldproject. African Eagle's projects are in Zambia, Tanzania and Mozambique, countries whichall have highly prospective geology, relatively low above-ground risks and trackrecords of successful major investments in the metals and minerals industries. African Eagle specialises in project generation and exploration. To take itsdiscoveries into production, it seeks to sign up industry partners with recordsof successful mine development. These joint ventures and, in time, the revenuefrom advanced projects, will finance future exploration and new discoveries. The Company has a highly motivated team, proven management and an experiencedboard. African Eagle prides itself on being a low cost operator and on average80p or more of every £1 is spent "in the ground". This information is provided by RNS The company news service from the London Stock Exchange