African Eagle Resources PLC : African Eagle Resources PLC : Dutwa BFS Development Update

    African Eagle Resources PLC : African Eagle Resources PLC : Dutwa BFS
                              Development Update

22  January  2013:  African  Eagle  Resources  plc  ("African  Eagle"  or  the 
"Company") (AIM: AFE; AltX:  AEA) is pleased to  provide a development  update 
regarding its flagship  Dutwa project  in Tanzania.  Over the  past year  the 
Company has achieved substantial  advances in the  project in accordance  with 
its plan for  the development  of a  Bankable Feasibility  Study (the  "BFS"). 
During 2012  the Company  undertook  a significant  amount of  work  directed 
toward  de-risking  the   project  and  takes   this  opportunity  to   update 
shareholders of  developments and  outline  the near  term plans  for  further 
activities.

Principal Advances Achieved in 2012:

  *The resource  estimate  for Dutwa  has  been upgraded  and  extended  with 
    greater than 100Mt occurring  in the Indicated  category grading at  0.92% 
    nickel;

  *Extensive metallurgical test work has been performed on both ore types  in 
    the two hills comprising Dutwa (Wamangola  and Ngasamo). This has led  to 
    much improved understanding and prediction  of process behaviour in  terms 
    of beneficiation and leach performance  in support of straightforward  and 
    low risk atmospheric tank leaching; 

  *The  Company  has  significantly   advanced  its  efforts  regarding   the 
    environmental and social  impact assessment (the  "ESIA"), which is  being 
    performed in  accordance with  Tanzanian  government regulations  and  the 
    Equator Principles; 

  *Logistics review studies  have developed significantly.  The Company  now 
    believes that  rail transport  to and  from the  project is  a viable  and 
    secure transport option. Efforts have  been extended to secure  agreement 
    with the governments of Tanzania  and surrounding countries on the  method 
    and structure of rail operations in support of Dutwa; 

  *Robust sources of key process  reagents (limestone and sulphur) have  been 
    identified  and  their  future  supply,   demand  and  pricing  has   been 
    independently forecast and  efforts have been  undertaken to define  these 
    opportunities such that supply agreements can be established in support of
    the completion of the BFS; and

  *Cutfield Freeman and  Company ("CF&Co")  has been engaged  to provide  the 
    Company with advisory  services related to  the overall project  financing 
    and securing the  support of  a strategic  partner in  the development  of 
    Dutwa.  The  Company  has  held  early  stage  discussions  with  certain 
    potential strategic partners and will  shortly expand its efforts in  this 
    regard.

Principal Conclusions and Near Term Plans:

  *Beneficiation and  sequential  leaching  process  data  have  enabled  the 
    consumption of acid and  limestone to be optimised  with a good degree  of 
    confidence. The  estimate  of nominal  acid  demand per  unit  of  nickel 
    produced  is   in  line   with   estimates  recently   announced,   though 
    substantially higher than reported in 2011; 

  *Operating and  capital  costs  will be  subject  to  re-estimation  during 
    completion of the BFS and the Company anticipates that the potential Dutwa
    operating and  capital costs  should remain  competitive when  benchmarked 
    against similar projects in  the global nickel  industry and that  overall 
    project returns  are likely  to have  significant leverage  to the  nickel 
    price; 

  *In view  of  the  refinement  of the  flow  sheet,  better  definition  of 
    consumables volumes,  changes  to forecast  consumables  costs,  logistics 
    developments  and  potential  resultant  changes  in  capital  costs,  the 
    operating and  capital cost  assumptions included  in the  Dutwa  economic 
    model update of March 2011 are  no longer considered valid and a  material 
    increase in operating cost is to be anticipated;

  *To assist with its  strategic partner search, the  Company is planning  to 
    undertake a mini-pilot  plant test  programme, which will  model the  full 
    process flow sheet at a small scale, as a means to de-risk the more costly
    main pilot  plant  and  to  provide  early  confirmation  of  the  process 
    performance  predicted  by  the  discrete  beneficiation  and  leach  test 
    programmes. The integrated  test will  enable the  production of  limited 
    quantities  of  nickel  product,  which  the  Company  will  use  in   its 
    development activities  and  in support  of  the search  for  a  strategic 
    partner; and

  *The Company has determined it prudent  to defer any other significant  new 
    BFS project work activities, including the planned main pilot plant tests,
    until the results of the integrated test have been received. 

Commenting on the development progress, African Eagle's CEO, Trevor Moss  said 
"I am pleased with the solid progress we have made to date on the  development 
of the Dutwa BFS and the definition of  the project that we have been able  to 
achieve.  We  now  have   good  confidence  in   the  process  method,   with 
beneficiation and sequential leaching offering tangible benefits, and we  have 
significantly improved the understanding of reagent supply and transportation.
We seek to  extend that knowledge  further via economical  means such as  the 
integrated  test,  which  will  provide  meaningful  additional  data  without 
incurring the significant cost of the main pilot plant.



It is important that  the Company seeks maximum  benefit for its  shareholders 
and the early engagement of a  strategic partner to assist in the  development 
of Dutwa is a key objective in  this regard. With the assistance of CF&Co  we 
plan to expand our activities toward this objective."

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 visit www.africaneagle.co.ukor contact:

African Eagle Resources plc
Trevor Moss, CEO
Alex Buck
+44 20 7248 6059

Canaccord Genuity Limited (NOMAD and Joint Broker)
Rob Collins or Andrew Chubb
+ 44 20 7523 8000

Ocean Equities Limited (Joint Broker)
Guy Wilkes
+44 20 7786 4370

Russell & Associates, Johannesburg
Charmane Russell or Marion Brower
+27 11 880 3924

About African Eagle
African Eagle Resources plc is a nickel development and explorationcompany
listed on the London AIM (AFE) and Johannesburg AltX (AEA) stock exchanges.
The Company's flagship project is the Dutwa Nickel project in Tanzania located
about 25km south of Lake Victoria and 110km east of Mwanza within greenstone
gold belts which host many of Tanzania's operating and developing gold
mines.The Company is currently conducting a Bankable Feasibility Study.

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Source: African Eagle Resources PLC via Thomson Reuters ONE
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