TSI.L Regulatory News (TSI)

23 July 2013

Coburg Group Plc

('Coburg' or 'the Company')

Investment in African Eagle Resources Plc

COBURG GROUP PLC announces that in accordance with its new investing policy it has purchased from International Finance Corporation 78,009,570 ordinary shares of £0.01 each in the company ("Ordinary Shares") and 22,754,785 warrants in the AIM quoted and Johannesburg listed company African Eagle Resources ("African Eagle") for a total cash consideration of £117,014, which represents a discount to African Eagle's current share price of 0.22p per Ordinary Share. The unlisted warrants carry the right to subscribe for new Ordinary Shares of African Eagle at 6.8 pence per Ordinary Share any time up to 10 February 2016. This purchase gives Coburg Group a total holding of 78,509,570 Ordinary Shares being approximately 11.3% of the total voting rights of African Eagle.

On 22 July 2013, shareholders of African Eagle voted in favour of a fundamental change of business whereby African Eagle, subject to satisfaction of the remaining condition precedent, being the approval of the Tanzanian mining licence authority, will dispose of a 90% interest in Blackdown Minerals Limited, a company holding substantially all of African Eagle's assets and businesses in Tanzania, to Blackdown Resources (UK) Limited.

Following the receipt of shareholder consent for the disposal, African Eagle is becoming an investing company with a mandate to invest in the natural resources, infrastructure and service sectors, located in all geographic regions. African Eagle will continue to hold an interest of 10% in Blackdown Minerals Limited and the future majority owner of Blackdown Minerals Limited is committed to the continued development of the assets. African Eagle's interest in Blackdown Minerals Limited is non-diluting until the new majority owner has committed $20m to the continued development of the assets.

African Eagle made a loss of £28,935,734 for the year to 31 December 2012, of which £25,366,967 related to the impairment of assets resulting from post balance sheet events leading to the accounts being prepared on a break up basis.

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