Re Alliance with Troll Mining

15 May 2007 07:00

African Eagle Resources PLC14 May 2007 AFRICAN EAGLE SIGNS ALLIANCE WITH TROLL MINING LIMITED OVER URANIUM, COPPER AND GOLD PROPERTIES IN SOUTHERN TANZANIA • Alliance covers an initial 1900 sq km • Uranium, copper and gold mineralisation identified • African Eagle will conduct exploration and Troll will expand project portfolio • African Eagle will gain 80% interests in successful discoveries • Troll licences complement African Eagle's newly awarded Shikula licence in same area. African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE)announces that it has signed a strategic alliance agreement with Troll MiningLimited (Troll), a private Tanzanian company with an extensive portfolio ofprospecting licences in southern Tanzania which have known potential foruranium, copper, gold, coal and other commodities. Under the terms of the agreement, African Eagle will explore four of Troll'sProspecting Licences covering 1225 km2 and a further four areas totalling 675km2 for which licence applications have been lodged. African Eagle has alreadyidentified significant uranium, gold and copper anomalies from archive datacovering the current licences. Where African Eagle's exploration yieldspromising results, it has the exclusive right to enter into Prospecting andMining Agreements with Troll over the relevant licences. Under these Agreementsthe Company will be granted 80% participating interests in the licences. Troll will use its experience and extensive network of contacts in southernTanzania to acquire additional prospective tenements for the partnership and hasagreed to maintain a minimum of five licences (or applications) covering notless than 500 km2 within the alliance at all times. The alliance is initiallyfor three years, renewable by mutual agreement. To maintain the alliance, African Eagle will pay Troll US$30,000 annually.African Eagle will also pay US$60 per square kilometre while it is exploring anylicence under a Prospecting and Mining Agreement. Troll's licences lie in the same area of southern Tanzania as the Shikulalicence which was recently granted to African Eagle by the Tanzanian government.The licence, which covers 240km2 at the edge of the Rukwa Basin, contains alinear copper geochemical anomaly recorded in the 1950s and has uraniumpotential. Mark Parker, African Eagle's Managing Director comments: "African Eagle is verypleased to welcome Troll Mining as a partner in southern Tanzania and looksforward to exploring this exciting portfolio of promising uranium, gold andcopper prospects. The deal complements the Company's recent acquisition of theShikula copper-uranium property in the same area, and is in line with AfricanEagle's move to package its uranium prospecting rights into an energy mineralsdivision for spin out or joint venture." John ParkChairman 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+44 20 7429 6607 Qualified Person Information in this report relating to exploration results is based on datareviewed by Mr Christopher Davies BSc, MSc, DIC, Operations Director for AfricanEagle, who is a Fellow of the Australasian Institute of Mining and Metallurgy,has more than 25 years relevant experience in mineral exploration and is aQualified Person under AIM rules. Mr Davies consents to the inclusion of theinformation in the form and context in which it appears. Technical terms A glossary of technical terms used by African Eagle in this announcement andother 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 prioritised 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