African Eagle Resources

African Eagle Resources is a UK-incorporated company traded on London AIM (AFE) and Johannesburg AltX (AEA). The Company discovered the Dutwa nickel project in Tanzania in mid-2008 and has since transformed itself from a diversified explorer into a nickel development and mining company.

A Bankable Feasibility Study for the Dutwa nickel oxide project is underway and the Company anticipates completion by the end of 2012. The Dutwa project is expected to produce around 27,000 tonnes of nickel in concentrate at full production from an open pit mine using atmospheric tank leaching, a well proven technology which uses standard processes and equipment. First production is being aggressively targeted for 2015. 

The Company has established a strong Board and highly experienced management team with expertise in project development and management, operations, metallurgy, the nickel industry and the capital markets (both debt and equity).

Tanzania is Africa's fourth largest gold project and has a mining friendly environment. The mining sector is a leading foreign exchange earner and one of the country's key growth areas. The Dutwa project is expected to be Tanzania's first nickel mine.

African Eagle also holds significant interests in several "legacy" mineral ventures, acquired before it discovered Dutwa. These include copper in Zambia, gold in Tanzania and uranium in these two countries and Mozambique.

The Dutwa Project 

The Dutwa Project is located in Northern Tanzania and was discovered by African Eagle in 2008. The Company is currently conducting a Bankable Feasibility Study which is expected to be published during the first quarter 2013.

Key Project Parameters

The Project represents a readily-accessible deposit. The Project is targeting open pit mining with minimal pre-stripping required, no significant blasting is expected to be necessary in order to mine the ore and a very low energy blasting is to be employed to mine the ore. This will keep mining costs minimised.

Nickel ores will be processed in a hydrometallurgical treatment plant with a nominal annual throughput of 3Mt to produce around 27,000tpa nickel in concentrate (i.e. an intermediate nickel product which requires refining) using atmospheric tank leaching. Life of mine is greater than 20 years.

The concentrate is expected to contain around 50% metal in the case of a mixed sulphide product (MSP) or 35% in the case of a mixed hydroxide product (MHP). A decision on which concentrate product will be produced will be made during the second quarter 2012, based on the combined result of marketing and technical evaluations.

Geology

Dutwa lies in the Kilimafedha belt (Swahili for "money hills") of the Lake Victoria Goldfield. Greenstones and granites underlie the area. The greenstones, of Archaean Nyanzian age, are mostly metamorphosed volcanic and sedimentary rocks, with some banded iron formation in the east. Several large ultramafic bodies intrude the greenstones, the nickel laterites form a blanket up to 80m thick on top of these.

To investigate the main nickel anomaly, African Eagle undertook trial drilling in June 2008. The results were very encouraging and a 139 hole reverse circulation (RC) drilling programme was completed to delineate the resource. The Company also undertook a 10 hole diamond drill programme to obtain core samples for metallurgical testing and density measurements. From the results of this drilling independent consultants SRK Consulting (UK) Ltd estimated a maiden JORC inferred mineral resource in November 2008.

Resource

The Dutwa nickel oxide project consists of two hilltop deposits, Wamangola and Ngasamo, which form thick residual lateritic caps on the tops of low ridges 7km apart.

Combined the two deposits have a JORC Indicated and Inferred resource of around 100Mt at circa 1% nickel equivalent (includes cobalt converted to into a nickel equivalent based on its relative value and proportion); 60Mt from Wamangola and 40Mt from Ngasamo.

An updated JORC resource is due mid 2012, which is expected to result in the majority of the resource being upgraded to the Indicated category.

Zanzui Exploration Project

African Eagle is evaluating a second promising nickel deposit at Zanzui, 70km south of Dutwa.

The Zanzui Complex is a circular, layered ultramafic-mafic intrusion 12km in diameter covering approximately 140km2. The central part of the complex forms a low but prominent hill, which is capped by siliceous duricrust of weathered dunite.

The area was first investigated in the 1980s by the United Nations Development Programme (UNDP), which conducted geophysical, geochemical and mapping work and reporting extensive geochemical nickel anomalies. The UNDP also analysed samples from one drill hole for platinum group metals (PGMs), reporting a single value of 1.24g/t palladium. There are also reliable reports of platinum being panned from the Ng'wangulu River on the eastern margin of the complex.

African Eagle's latest drill results show that parts of the complex have a nickel and cobalt enriched laterite blanket. The grades and thicknesses appear similar to those announced by the Company from Dutwa and suggest that Zanzui is potentially another significant laterite deposit.

African Eagle has also received favourable results from preliminary acid leach tests on drill samples from Zanzui by Mintek in South Africa.

Dr. Christopher Pointon

Non-Executive Director and Interim Chairman

Independent Dr. Chris Pointon has over 40 years experience in the resources industry and a strong track record of building and managing new organisations in a diversity of cultural environments, including Asia, Australia, South America, South Africa and Europe. During his career Dr. Pointon has worked in mineral exploration, business development and operations for Rio Tinto, Billiton, Gencor and BHP Billiton. At BHP Billiton he led the Stainless Steel Materials division for six years, building it into one of the largest global nickel and ferrochrome producers with annual sales exceeding US$3 billion. This business included Samancor Chrome, the second largest ferrochrome producer based in South Africa, of which he was Chief Executive Officer. He was a member of BHP Billiton's Executive Committee from that company's formation in 2001 until his retirement in 2006. Dr. Pointon is a Non-Executive Director and Deputy Chairman of Ruukki Group plc, and is a consultant to private equity investors.

Trevor A. Moss

Chief Executive Officer 

PE, MSc, BSc (Hons)

Trevor Moss has over 30 years of experience in the international mining industry. Mr. Moss is a corporate and project development executive who has worked for major mining companies such as Barrick, Newmont and Cyprus Amax, and with emerging producers including Tiberon Minerals and Gabriel Resources. Prior to joining African Eagle, he was responsible for the construction, completion and successful start up of the Bisha mine in Eritrea, as Executive Vice President and Chief Operating Officer of Canadian TSX and AMEX-listed Nevsun Resources Limited.

Mr. Moss has held directorships and corporate officer positions in several public companies and the positions of CEO and director in a number of private companies. Currently, he sits on the board of FGBI LLC, a private US resource company, and is director and president of HAWM Consulting Inc. He is a registered engineer in the US State of Arizona and holds an MSc in Civil Engineering from Arizona State University and an Honours degree in Civil Engineering from the University of Bradford in the UK.

Andrew Robertson

Finance Director & Company Secretary

BSC Hons Business Economics University College London, Fellow Institute of Chartered Accountants England and Wales

Andrew Robertson has a wide range of operational experience at senior finance levels in the mining, downstream chemicals, and engineering sectors and has extensive experience in fund raising. During his career he has worked for Laporte Plc, was Group controller at Laird Plc, a Group Finance Director with Jardines, Finance Director of Laporte's organic chemicals business and co-led a venture capital backed management buy-in of Bayer's global mineral processing business, managing the fund raising before an eventual disposal. Recently, he has been CFO of Ecometals Limited (gold exploration) and CFO of White Tiger Gold Limited, both listed on the Toronto Stock Exchange.

Don Newport

Non-Executive Director

Independent Don Newport is a veteran of the London mine finance industry with over 35 years of experience in the banking sector, 23 years of which were spent exclusively in the mining and metals sector. After managing the Barclays Bank Metals & Mining Team, Mr. Newport went on to lead the global mining finance department of Standard Bank, establishing a significant portfolio of transactions in challenging emerging market situations, including Central Asia and the FSU, China, Africa and South America, as well as North America, Europe and Australia. In 2008 Mr. Newport was honoured with the Mining Journal's Lifetime Achievement Award for "an outstanding contribution to the advancement of the international mining industry". Currently Mr. Newport is a Non-Executive Director of Wolf Minerals Limited.

Julian McIntyre

Non-executive Director

Julian McIntrye is the founder of MWB Capital, a private investment company focused on investing in credit and equities. He has a proven track record as an entrepreneur and investor, with broad experience in acquiring, financing and selling businesses. Mr. McIntyre was the founder and controlling shareholder of Gateway Communications Group, a pan-African telecommunications business that operated in over 40 African countries and was ultimately sold to Vodacom in 2008. Mr. McIntrye has previously held senior positions in the financial markets divisions of Deutsche Bank and Chase Futures. He is also a Non-executive Director of Ambrian Capital plc.

Updated from African Eagle website 11.05.2012