Metallurgical process selected for Dutwa

African Eagle Resources plc

("African Eagle" or the "Company")

SELECTION OF METALLURGICAL PROCESS FOR DUTWA

African Eagle Resources plc (AIM: AFE; AltX: AEA) announces that it has selected
atmospheric tank leaching as the metallurgical process method to be employed at
its flagship Dutwa nickel oxide project in Tanzania.  The atmospheric tank leach
flowsheet will be the subject of a pilot test work programme to be performed
later this year in Perth, Australia which will support the Dutwa bankable
feasibility study ("BFS"), due for completion around the end of 2012.

The Company has been conducting extensive batch metallurgical testwork over the
past two years to select the most appropriate processing method and define the
overall metallurgical performance of the Dutwa ore, which has advantageous
properties.  Being low in iron and aluminium, and with the predominant
"Ferruginous Siliceous" ore type also being relatively low in magnesium, the
Dutwa ore allows simplified processing, with atmospheric leach methods resulting
in rapid extraction without the need for the challenging and costly high-
pressure acid leach technologies that have proven problematic elsewhere.

The recent laboratory test work has been directed toward evaluating both
atmospheric tank leach and heap leach metallurgical process performance.
Throughout the test programme, atmospheric tank leaching has consistently
demonstrated the best overall metallurgical performance with respect to metal
recoveries and acid consumptions.  The selection of atmospheric tank leaching,
which is based on technical and economic factors as well as environmental
considerations, reflects the Company's focus on minimising the project risk
profile and maximising operational and economic benefits.

Selection of the process method at this stage will enable the streamlined
development of both the BFS and environmental and social impact assessment
("ESIA").  A pilot plant work programme of continuous fully integrated testing
is in development for final confirmation of the performance of the Dutwa
atmospheric leach process flowsheet; the pilot plant will treat ore samples
representative of the planned mining schedule at Dutwa. The Company is in
advanced stage negotiations with Australian laboratories that have the ability
to perform the pilot plant operation and testing.



About Dutwa

Dutwa was discovered in 2008 and is a nickel laterite project with unusually
beneficial geometallurgical properties.  Since discovery, the progress of
development has been rapid.  Dutwa is defined by a JORC resource of 99 million
tonnes at 0.93% Ni, offering ready mining from two hilltop deposits and
straightforward low consumption atmospheric acid leaching, leading to strong
economics. The most recent financial modelling, prepared in early 2011,
projected cash operating costs of approximately $3.50/lb., a post tax NPV of
$995M at $9/lb. nickel and a projected capital payback period between three and
five years.  The current BFS and ESIA development is directed towards defining
the full environmental, social, technical and economic performance of Dutwa.

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

Qualified Person

Information in this report relating to metallurgical test results is based on
data reviewed by Chad Czerny PhD, Project Metallurgical Manager for African
Eagle Resources, who is a Member of the Australasian Institute of Mining and
Metallurgy, has more than 20 years' relevant experience in the mining and
metallurgical industry, and is a Qualified Person under AIM guidelines. Dr
Czerny consents to the inclusion of the information in the form and context in
which it appears.


For further information:

Please see the Company's web site at www.africaneagle.co.uk or contact one of
the following:

African Eagle Resources plc
Trevor A. Moss (CEO)
Yasumi Toyoda (Investor Relations)
Euan Worthington (Chairman)
+44 20 7248 6059

Canaccord Genuity Limited
Rob Collins
Andrew Chubb
+ 44 207 050 6500

Ocean Equities Limited
Guy Wilkes
+44 20 7786 4370

Russell & Associates, Johannesburg
Charmane Russell
Marion Brower
+27 11 8803924
+27 82 8928052






This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: African Eagle Resources PLC via Thomson Reuters ONE

[HUG#1577966]


Unternehmen: African Eagle Resources PLC - ISIN: GB0003394813