RNS Number:2706P
African Eagle Resources PLC
02 September 2003

                          AFRICAN EAGLE RESOURCES plc


African Eagle is pleased to announce completion of a Placing with funds managed
by RAB Capital Limited.  The proceeds of the Placing will enable the Company to
accelerate its exploration drilling programmes on a number of very promising
gold prospects.

The Placing consists of 10,000,000 Ordinary Shares at a price of 8p per share,
together with 10,000,000 Warrants to subscribe for additional new Ordinary
Shares at a price of 11p per share exercisable at any time up to 30 September

As a consequence, RAB Capital managed funds hold 19,600,000 Ordinary Shares
representing 28.59% of the issued share capital of African Eagle.

Application will be made for the new Ordinary Shares to be admitted to trading
on AIM.

For further information                                      Tel                   Fax

John Park (Chairman)             African Eagle               00 61 7 5528 6750     00 61 7 5528 6750

Mark Parker (MD)                 African Eagle               01590 679 420         020 7691 7745

Carina Corbett                   4C Communications Ltd       020 7907 4761         020 7907 4769

John Robertson                   Nabarro Wells               020 7710 7400         020 7710 7401

2 September 2003

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