RNS Number:8452S
African Eagle Resources PLC
04 December 2003

                          AFRICAN EAGLE RESOURCES PLC

                    Completion of Placing and Project Update

With results from its Miyabi and Eagle Eye projects looking promising and
drilling programmes totalling 12,000 metres currently underway at the two
projects, African Eagle has decided to accelerate exploration at two additional
target areas, the Muazua nickel and Kampumba copper-gold-silver projects.  To
help facilitate this, the Company has completed a #1.1 million fundraising with
institutional investors.

The placees include two funds managed by Carmignac, a major French investment
institution and JP Morgan Fleming, which is already a significant shareholder.
The Placing consists of 6,836,060 Ordinary Shares at a price of 16.5p per share,
for a total of #1,127,950.  The Company has also received notice of exercise of
10,000 warrants to subscribe for new Ordinary Shares at 6p each.  Application
has been made for all these new Ordinary Shares to be admitted to trading on

African Eagle's board considers that the Muazua nickel project in Mozambique and
the Kampumba copper project in Zambia are the most likely of its other existing
projects to deliver results which will add value in the short term. At Muazua, a
1% nickel stream sediment anomaly led to discovery of extensive nickel-bearing
gossans on the Mount Muazua ultramafic complex.  Initial channel chip sampling
across these gave grades up to 2% nickel.  On the Kampumba exploration licence,
a single diamond drill hole in the 1960's on the 5.5km long Tandalwe copper
geochemical anomaly gave a copper mineralised intersection of 57m, with
significant silver content.  African Eagle also plans to recruit an exploration
manager for Zambia and Mozambique.

The following table sets out the shareholdings of the Company's significant
shareholders and directors after the Placing and Exercise

      Significant shareholders:                    No of shares         %
      RAB Capital managed funds                      19,600,000     25.90
      Orogen Holding (BVI) Ltd                        6,903,703      9.12
      JPMF Natural Resources fund                     5,750,000      7.60
      Carmignac managed funds                         4,500,000      5.95
      Mr R B Rowan                                    3,043,826      4.02
      John Park                                       3,508,467      4.64
      Mark Parker                                     2,256,087      2.98
      Chris Davies                                      266,667      0.35
      Euan Worthington                                  225,000      0.30
      Geoffrey Cooper                                   669,300      0.88

Extension of Gold Fields Option Agreement

African Eagle's current 8,000m drilling programme at Miyabi, follows on from the
very good gold intersections obtained during July's RC and diamond drilling,
reported in our news release of 3 September.  The drilling is expected to be
completed this month, but there has been some delay arising from the sale by the
Company's drilling contractor of its Tanzanian business to Stanley Mining
Services Pty Ltd.

Gold Fields Limited, through its subsidiary Orogen Holding, has a right to enter
into a joint venture with African Eagle on the Miyabi Project.  Under the
Company's agreements with Gold Fields, this right must be exercised before 31
December 2003, but to allow sufficient time for Gold Fields to evaluate the
results of the current drilling, the last date for exercise has been deferred by
one month to 31 January 2004.


In Zambia, a subsidiary of Anglovaal Mining (Avmin) has been exploring the Lunga
sediment-hosted base metals project under an option with the Company.  Having
spent more than US$720,000 on exploration at Lunga, Avmin has recently reviewed
its Zambian activities and notified the Company that it does not wish to
exercise its option to vest into the project.

African Eagle is now reviewing all the data obtained by Avmin and will consider
the options available, including bringing in a new partner. Five diamond drill
holes and numerous air core holes were completed by Avmin, with intersections
including 90m grading 0.3% copper and 0.7% zinc and 12m of 3.6% zinc.

Current Exploration

African Eagle is currently drilling on both its priority projects.  In addition
to its 8,000 metre programme at the Miyabi Gold Project, which is expected to be
completed by mid-December, the Company is mid-way through a 4,000 metre
programme at Eagle Eye to test the quality and continuity of the mineralised
zone reported in our news release of 28 October.  Results from these programmes
will be released as they become available.

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
Leesa Peters            Conduit PR        078 1215 9885        020 7936 9100
Hugh Oram               Nabarro Wells     020 7710 7400        020 7710 7401

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