Resource Upgrade to Jorc Indicated Category at Dutwa Nickel Project, Tanzania

African Eagle Resources plc is pleased to announce a significant resource upgrade at its Dutwa nickel project in Tanzania. This resource upgracedar rapids crushersde, by independent geological contractors the Snowden Group, places more than three quarters of the Wamangola resource (the larger of the two nickel deposits that make up the Dutwa project) into the indicated category under the JORC code.

This is the first indicated resource at Dutwa and signifies a leap forward for the project, with increased confidence in the continuity of the orebody. Indicated resources can be used to derive formal mineral reserves for the feasibility study now underway.

Highlights of the resource statement upgrade are:

* 46.2 million tonnes (Mt) at 0.93% nickel and 0.03% cobalt (of the total Dutwa Project 98.6Mt) now in the JORC indicated category.
* Grade increase for the tonnes upgraded to indicated from 0.90% Ni to 0.93% Ni.
* 47% of the total Dutwa resource is now in JORC indicated category and more will be upgraded after further drilling at Ngasamo later in the year.
* Indicated resources can be used to derive probable mining reserves for the pre-feasibility study, due for completion by Q3, 2011.

African Eagle's Managing Director Mark Parker comments:

"This resource upgrade is another significant milestone in our Dutwa feasibility study. Snowden has converted a large portion of the Wamangola resource directly to the indicated category and we will only need to do infill drilling in areas of structural complexity such as fault zones and areas around cross-cutting dykes.

Infill and step-out drilling to delineate the smaller Ngasamo deposit fully is planned in early 2011 and we will then ask Snowden to upgrade from inferred to indicated.

Meanwhile work for the pre-feasibility study is progressing well and we have shipped a large portion of the bulk ore samples from both the Wamangola and Ngasamo deposits to Perth, WA for metallurgical tests."