Progress review and half year results

Half Year Results

23 September 2010

REVIEW OF PROGRESS AND RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2010

African Eagle Resources plc ("African Eagle" or the "Company", ticker AIM: AFE,
AltX: AEA) announces progress made so far in 2010 together with its financial
results for the half year to 30 June 2010.

African Eagle's Half Year Report for the period ended 30 June 2010 can be viewed
at:
http://www.africaneagle.co.uk/downloads/InterimFinancialStatements30June2010.pdf

Highlights - six months to 30 June 2010

Operations
* Successful drill campaign at Dutwa throughout Q1 and Q2 2010
* 59 out of the 66 holes at Ngasamo deposit intersected mineralisation
* Major increase of the JORC resource at Dutwa to 845,000 tonnes of contained
nickel equivalent, from 345,000 tonnes
* Excellent Phase 2 acid leach results from the Dutwa ore reported in May,
with column tests showing:

* Nickel extraction of 73-82% within 30 days and 86-92% after 100 days
* Cobalt extraction up to 60% within 30 days and 80-85% after 100 days

Financials
* Reduced loss for the first half of 2010 to £387,831 against £613,974 for the
six months to 30 June 2009. This is primarily due to lower impairment
charges and other income arising on the recognition of shares in Kibo Mining
Plc (Ticker: AIM: KIBO)
* £1.7 million cash in hand at 30 June 2010

Corporate
* Merchantec Capital appointed as new sponsor in South Africa
* Australian explorer Peak Resources acquired 75% of the Igurubi gold project
in return for Peak shares, cash and royalties based on agreed milestones
* Letter of Intent signed with Australian explorer Macquarie Harbour Mining
for a joint venture to develop a gold mine at its Miyabi project
* Transaction provides a quick and effective route to take Miyabi into
production and gives the Company a free-carry

Since 30 June
* Ocean Equities appointed as joint broker
* Successful and oversubscribed capital raising for £3.3M
* Zanzui drilling programme returns encouraging nickel and cobalt results
including

* 33m at 1.5% nickel from 18m including 6m at 3.1% nickel
* 42m at 1.1% nickel from 12m including 6m at 2.8% nickel
* 27m at 0.30% cobalt from 12m including 15m at 0.49% cobalt

CHAIRMAN'S STATEMENT

Dear Shareholder,

I am delighted to report the significant steps we have taken to date during
2010.

Dutwa Nickel Project

We are making excellent progress on the pre-feasibility stage of our Dutwa
project evaluation. Following the huge increase in the resource, we are
currently drilling to obtain a 40 tonne bulk ore sample which will be used for
pilot plant and other process design tests.

On June 15, we made the exciting announcement that Snowden Mining Industry
Consultants had completed deposit modelling of the Wamangola and Ngasamo
deposits which showed JORC inferred figures of:

Tonnage (Mt) Nickel Grade (%) Cobalt Grade (%)

Wamangola 56.8 0.86 0.030

Ngasamo 35.3 0.90 0.036

Total 92.1 0.88 0.032

These results exceeded expectations and represent an increase of 500,000 tonnes
of contained nickel equivalent over the previously reported figure of 345,000
tonnes. At current nickel prices of US$10.50/lb, the in-ground value of this
resource is close to US$ 20 billion.

The formal resource evaluation confirmed the very low average iron, aluminium
and magnesium contents, which help to explain the excellent leach
characteristics for the Dutwa ore.

We also received results of the second phase of metallurgical test work which
was carried out by Mintek Laboratories in South Africa on a representative
composite sample made up with drill cores from the Wamangola deposit. Column and
tank leach tests showed very rapid leaching rates with good nickel and cobalt
recoveries at low acid consumption. Column test recoveries were:

* Nickel extraction of 73-82% within 30 days and 86-92% after 100 days
* Cobalt extraction of up to 60% within 30 days and 80-85% after 100 days

In the tank leach tests nickel extraction of up to 70% occurred in the first
hour, with up to 85% after 8hrs and the final nickel extractions averaging 94%
over the full 24hr test.

We are currently carrying out a wide diameter diamond drilling programme to
provide a 40 tonne bulk ore sample from both deposits for mineralogical tests,
which will help us chose between heap or atmospheric agitated tank leaching as
the optimum processing route for the Dutwa ore. The work will include continuous
tank leaching tests and large scale tests using columns 6 to 8m high to
replicate heap leach behaviour.

Our consultants are working on upgrades to the resource calculations and
categories at Wamangola and Ngasamo which, together with pit optimisation plans
and mine scheduling, will be used to update the project economics in the coming
months.

Zanzui Nickel Project

Our primary focus remains the Dutwa project, but we recently followed up
previous positive scout drilling results at Zanzui, 50km to the south, with a
further 49 reverse circulation drill holes. The results, announced earlier this
month were very favourable, showing good nickel and cobalt grades over wide
thicknesses. So far, our drilling has only covered part of this potentially very
large deposit.

Non-core Projects

With Dutwa reaching potentially world-class status, nickel now dominates our
efforts and we are determined to spin out our legacy copper, gold and other
assets to focus on de-risking and unlocking the value at Dutwa.

In April, we agreed terms with Australian explorer Peak Resources to acquire our
75% of the Igurubi gold project in Tanzania in return for Peak shares, cash and
royalties based on agreed milestones. In May, the Company signed a Letter of
Intent with another Australian company, Macquarie Harbour Mining ("MHM"), to
develop a gold mine at our Miyabi project. MHM is now carrying out technical and
legal due diligence as per the agreement before reaching a decision to mine. We
are in discussions with a third Australian group to acquire or take a stake in
our uranium projects.

Aside from our nickel projects, we believe that the Company's most valuable
asset is its copper project portfolio and exploration infrastructure in Zambia.
The board's view is that the greatest value will be gained from maintaining all
these holdings in one company and we have therefore avoided selling or joint
venturing individual projects. Consequently, we have been in discussion with
various investment groups about creating a new structure for the Zambian assets,
including a possible public listing to realise value for AFE shareholders.

Financing

We recently announced the placing of 88 million new shares which raised £3.3
million before expenses. The placing, which was well oversubscribed will
introduce a number of major new shareholders to the register and followed a very
successful road show led by our new joint broker Ocean Equities together with
Seymour Pierce. The proceeds of the placing, to be approved by shareholders at a
General Meeting on Thursday 30 September, will be used primarily to finance the
next stages of the pre-feasibility study ("PFS") on the Dutwa project.

Plans

With the arrival of Dr Chad Czerny as Dutwa's Project Manager (Metallurgy) in
March, the scope and extent of detailed test work which will be required before
completing the PFS has become apparent. It is of greatest importance to have the
best information possible to select the optimum process route for this major
development. Consequently, our revised target date for completion of the PFS is
now Q3 2011.

In the coming months we expect to report on updated resource figures, ongoing
metallurgical test work and revised project economics. After increasing the
total resource by nearly 150%, we are confident that the Dutwa project has taken
a further step towards becoming a world class nickel laterite mine.

Euan Worthington
Chairman


For further information:

Mark Parker
Managing Director
African Eagle
+44 20 7248 6059
+44 77 5640 6899

Nicola Marrin
Seymour Pierce Limited, London
Nominated Adviser
+ 44 20 7107 8000

David Banks
Seymour Pierce Limited, London
Corporate Broking
+ 44 20 7107 8000

Guy Wilkes
Ocean Equities Limited, London
Corporate Broking
+ 44 20 786 4370

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

Ed Portman / Leesa Peters
Conduit PR, London
+44 20 7429 6607
+44 77 3336 3501


African Eagle Resources plc

Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2010

+-------------------------------------+----+-----------+-----------+-----------+
|  |  |6 months to|6 months to|Year to |
+-------------------------------------+----+-----------+-----------+-----------+
|  |  |30 June |30 June |31 December|
+-------------------------------------+----+-----------+-----------+-----------+
| | |2010 |2009 |2009 |
+-------------------------------------+----+-----------+-----------+-----------+
| |Note|Unaudited |Unaudited |Audited |
+-------------------------------------+----+-----------+-----------+-----------+
| | |£ |£ |£ |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Depreciation expense | |(21,062) |(30,461) |(60,659) |
+-------------------------------------+----+-----------+-----------+-----------+
|Employee benefits expense | |(211,274) |(205,723) |(500,305) |
+-------------------------------------+----+-----------+-----------+-----------+
|Impairment of deferred exploration | |(14,337) |(145,071) |(221,169) |
|expenditure | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Share of loss in associate | |(4,920) |(7,634) |(7,476) |
+-------------------------------------+----+-----------+-----------+-----------+
|Other expenses | |(256,822) |(223,515) |(453,200) |
+-------------------------------------+----+-----------+-----------+-----------+
|Other income |5 |120,000 |- |- |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Operating loss | |(388,415) |(612,404) |(1,242,809)|
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Finance income: | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Bank interest receivable | |19,217 |12,467 |29,887 |
+-------------------------------------+----+-----------+-----------+-----------+
|Foreign exchange (loss)/gain | |(18,633) |(14,037) |23,328 |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Loss before tax | |(387,831) |(613,974) |(1,189,594)|
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Income tax expense | |- |- |- |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Loss attributable to equity owners | |(387,831) |(613,974) |(1,189,594)|
|for the period | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Other comprehensive income/(loss): | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Exchange differences on translation | |198,393 |(1,751,419)|(857,040) |
|of foreign operations | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Available for sale investments | |20,000 |617 |13,694 |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Other comprehensive income/(loss) for| |218,393 |(1,750,802)|(843,346) |
|the period | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Total comprehensive loss attributable| |(169,438) |(2,364,776)|(2,032,940)|
|to equity owners for the period | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Loss per share: | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Basic/diluted loss per share from |3 |(0.1p) |(0.3p) |(0.5p) |
|total and continuing operations | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Headline/diluted loss per share from |3 |(0.2p) |(0.2p) |(0.4p) |
|total and continuing operations | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+

All operations are continuing.

The accompanying notes form an integral part of these condensed consolidated
financial statements.


African Eagle Resources plc

Condensed Consolidated Statement of Financial Position
For the six months ended 30 June 2010

+-------------------------------------+----+-----------+-----------+-----------+
| | |30 June |30 June |31 December|
| |Note|2010 |2009 |2009 |
| | |Unaudited |Unaudited |Audited |
+-------------------------------------+----+-----------+-----------+-----------+
| | |£ |£ |£ |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|ASSETS | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Non-current assets | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Property, plant and equipment | |64,753 |78,538 |80,706 |
+-------------------------------------+----+-----------+-----------+-----------+
|Available for sale assets |5 |1,022,148 |2,583 |- |
+-------------------------------------+----+-----------+-----------+-----------+
|Investment in associates | |2,318,401 |1,910,516 |2,319,435 |
+-------------------------------------+----+-----------+-----------+-----------+
|Investment in joint ventures | |35,054 |34,595 |34,626 |
+-------------------------------------+----+-----------+-----------+-----------+
|Deferred exploration costs |4 |10,562,228 |8,868,615 |10,261,104 |
+-------------------------------------+----+-----------+-----------+-----------+
|Non-current assets | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Total non-current assets | |14,002,584 |10,894,847 |12,695,871 |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Current assets | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Other receivables | |253,422 |140,393 |124,063 |
+-------------------------------------+----+-----------+-----------+-----------+
|Cash and cash equivalents | |1,726,671 |1,538,250 |3,293,014 |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Total current assets | |1,980,093 |1,678,643 |3,417,077 |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Total assets | |15,982,677 |12,573,490 |16,112,948 |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|LIABILITIES | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Current liabilities | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Other payables | |(326,145) |(350,546) |(322,740) |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Total liabilities | |(326,145) |(350,546) |(322,740) |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Net assets | |15,656,532 |12,222,944 |15,790,208 |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|EQUITY | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Equity attributable to owners of the | | | | |
|parent: | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Share capital | |2,967,622 |2,125,402 |2,967,622 |
+-------------------------------------+----+-----------+-----------+-----------+
|Share premium account | |21,678,832 |19,323,784 |21,678,832 |
+-------------------------------------+----+-----------+-----------+-----------+
|Merger reserve | |705,723 |705,723 |705,723 |
+-------------------------------------+----+-----------+-----------+-----------+
|Available for sale revaluation | |20,000 |(13,077) |- |
|reserve | | | | |
+-------------------------------------+----+-----------+-----------+-----------+
|Foreign currency reserve | |59,103 |(1,033,669)|(139,290) |
+-------------------------------------+----+-----------+-----------+-----------+
|Retained losses | |(9,774,748)|(8,885,219)|(9,422,679)|
+-------------------------------------+----+-----------+-----------+-----------+
+-------------------------------------+----+-----------+-----------+-----------+
|Total equity | |15,656,532 |12,222,944 |15,790,208 |
+-------------------------------------+----+-----------+-----------+-----------+

The accompanying notes form an integral part of these condensed consolidated
financial statements.


African Eagle Resources plc

Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2010

+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
| | | |Share | |Available |Foreign | |Total |
| | |Share |premium |Merger |for sale |currency |Retained |attributable|
| | |capital |account |reserve|revaluation|reserve |losses |to owners |
| | | | | |reserve | | |Unaudited |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
| | |£ |£ |£ |£ |£ |£ |£ |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Balance at | | | | | | | | |
|31 December | |2,125,402|19,323,784|705,723|(13,694) |717,750 |(8,280,445)|14,578,520 |
|2008 | | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
+-------------+-+---------+----------+-------+-----------+-----------+-----------+ |
|Loss for | |- |- |- |- |(613,974) |(613,974) | |
|period | | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Other | | | | | | | | |
|comprehensive| |  |  |  |  |  |  |  |
|loss: | | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Exchange | | | | | | | | |
|differences | | | | | | | | |
|on | |- |- |- |- |(1,751,419)|- |(1,751,419) |
|translation | | | | | | | | |
|of foreign | | | | | | | | |
|operations | | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Available for| | | | | | | | |
|sale | |- |- |- |617 |- |- |617 |
|investments | | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|  | |  |  |  |  |  |  |  |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Total | | | | | | | | |
|comprehensive| |- |- |- |617 |(1,751,419)|(613,974) |(2,364,776) |
|loss  for the| | | | | | | | |
|period | | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Transactions | | | | | | | | |
|with equity | | | | | | | | |
|owners for | |  |  | |  |  |  |  |
|the first | | | | | | | | |
|half of 2009:| | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Issue of | |- |- |- |- |- |- |- |
|share capital| | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Share issue | |- |- |- |- |- |- |- |
|costs | | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Share based | |- |- |- |- |- |9,200 |9,200 |
|payments | | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Total | | | | | | | | |
|transactions | |- |- |- |- |- |9,200 |9,200 |
|with equity | | | | | | | | |
|owners | | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+
|Balance at | |2,125,402|19,323,784|705,723|(13,077) |(1,033,669)|(8,885,219)|12,222,944 |
|30 June 2009 | | | | | | | | |
+-------------+-+---------+----------+-------+-----------+-----------+-----------+------------+

The accompanying notes form an integral part of these condensed consolidated
financial statements.


African Eagle Resources plc

Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2010

+-------------+---------+----------+-------+-----------+---------+-----------+------------+
| | |Share | |Available |Foreign | |Total |
| |Share |premium |Merger |for sale |currency |Retained |attributable|
| |Capital |account |reserve|revaluation|reserve |Losses |to owners |
| | | | |reserve | | |Audited |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
| |£ |£ |£ |£ |£ |£ |£ |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Balance at | | | | | | | |
|31 December |2,125402 |19,323,784|705,723|(13,694) |717,750 |(8,280,445)|14,578,852 |
|2008 | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Loss for year|- |- |- |- |- |(1,176,876)|(1,176,876) |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Other | | | | | | | |
|comprehensive| | | | | | | |
|loss: | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Exchange | | | | | | | |
|differences | | | | | | | |
|on |- |- |- |- |(857,040)|- |(857,040) |
|translation | | | | | | | |
|of foreign | | | | | | | |
|operations | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Available or | | | | | | | |
|sale |- |- |- |976 |- |- |976 |
|investments | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Disposal of | | | | | | | |
|available for|- |- |- |12,718 |- |(12,718) |- |
|sale | | | | | | | |
|investment | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Total | | | | | | | |
|comprehensive|- |- |- |13,694 |(857,040)|(1,189,594)|(2,032,940) |
|loss for the | | | | | | | |
|year | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Transactions | | | | | | | |
|with equity | | | | | | | |
|owners for | | | | | | | |
|2009: | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Issue of |842,220 |2,526,660 |- |- |- |- |3,368,880 |
|share capital| | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Share issue |- |(171,612) |- |- |- |- | |
|costs | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+(171,612) |
|Share-based |- |- |- |- |47,360 |47,360 | |
|payments | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Total | | | | | | | |
|transactions |842,220 |2,355,048 |- |- |- |47,360 |3,244,628 |
|with equity | | | | | | | |
|owners | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Balance at | | | | | | | |
|31 December |2,967,622|21,678,832|705,723|- |(139,290)|(9,422,679)|15,790,208 |
|2009 | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+

The accompanying notes form an integral part of these condensed consolidated
financial statements.


African Eagle Resources plc

Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2010

+-------------+---------+----------+-------+-----------+---------+-----------+------------+
| | |Share | |Available |Foreign | |Total |
| |Share |premium |Merger |for sale |currency |Retained |attributable|
| |Capital |account |reserve|revaluation|reserve |Losses |to owners |
| | | | |reserve | | |Unaudited |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
| |£ |£ |£ |£ |£ |£ |£ |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Balance at | | | | | | | |
|31 December |2,967,622|21,678,832|705,723|- |(139,290)|(9,422,679)|15,790,208 |
|2009 | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Loss for |- |- |- |- |- |(387,831) |(387,831) |
|period | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Other | | | | | | | |
|comprehensive| | | | | | | |
|loss: | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Exchange | | | | | | | |
|differences | | | | | | | |
|on |- |- |- |- |198,393 |- |198,393 |
|translation | | | | | | | |
|of foreign | | | | | | | |
|operations | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Available for| | | | | | | |
|sale |- |- |- |20,000 |- |- |20,000 |
|investments | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
+-------------+---------+----------+-------+-----------+---------+-----------+ |
|Total | | | | | | | |
|comprehensive|- |- |20,000 |198,393 |(387,831)|(169,438) | |
|loss for the | | | | | | | |
|period | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Transactions | | | | | | | |
|with equity | | | | | | | |
|owners for | | | | | | | |
|the first | | | | | | | |
|half of 2010:| | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Issue of |- |- |- |- |- |- |- |
|share capital| | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Share issue |- |- |- |- |- |- |- |
|costs | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Share based |- |- |- |- |- |35,762 |35,762 |
|payments | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Total | | | | | | | |
|transactions |- |- |- |- |- |35,762 |35,762 |
|with equity | | | | | | | |
|owners | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+
|Balance at |2,967,622|21,678,832|705,723|20,000 |59,103 |(9,774,748)|15,656,532 |
|30 June 2010 | | | | | | | |
+-------------+---------+----------+-------+-----------+---------+-----------+------------+

The accompanying notes form an integral part of these condensed consolidated
financial statements.


African Eagle Resources plc

Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2010

+----------------------------------+-----+------------+------------+-----------+
| | |6 months to |6 months to |Year to |
| | |30 June 2010|30 June 2009|31 December|
| | |Unaudited |Unaudited |2009 |
| | | | |Audited |
+----------------------------------+-----+------------+------------+-----------+
| |Notes|£ |£ |£ |
+----------------------------------+-----+------------+------------+-----------+
+----------------------------------+-----+------------+------------+-----------+
|Operating activities | | | | |
+----------------------------------+-----+------------+------------+-----------+
|Loss before taxation | |(387,831) |(613,974) |(1,189,594)|
+----------------------------------+-----+------------+------------+-----------+
|Adjustments for: | | | | |
+----------------------------------+-----+------------+------------+-----------+
| | |21,062 |30,461 |60,659 |
+----------------------------------+-----+------------+------------+-----------+
|Exchange loss | |(391) |(24) |(3,251) |
+----------------------------------+-----+------------+------------+-----------+
|Profit on disposal of property, | |238 |150 |705 |
|plant and equipment | | | | |
+----------------------------------+-----+------------+------------+-----------+
|Interest received | |(19,217) |(12,467) |(29,887) |
+----------------------------------+-----+------------+------------+-----------+
|Impairment of deferred exploration| |14,337 |145,071 |221,169 |
|expenditure | | | | |
+----------------------------------+-----+------------+------------+-----------+
|Share-based payments | |35,762 |9,200 |47,360 |
+----------------------------------+-----+------------+------------+-----------+
|Share of loss in associate venture| |4,920 |7,634 |7,476 |
+----------------------------------+-----+------------+------------+-----------+
|Disposable of available for sale | |- |- |12,718 |
|investment | | | | |
+----------------------------------+-----+------------+------------+-----------+
|(Increase)/decrease in other | |(128,027) |(13,856) |8,544 |
|receivables | | | | |
+----------------------------------+-----+------------+------------+-----------+
|Increase in other payables | |24,523 |66,682 |3,797 |
+----------------------------------+-----+------------+------------+-----------+
|Share of joint venture (gain)/loss| |(460) |762 |630 |
+----------------------------------+-----+------------+------------+-----------+
|Recognition of investment in a |5 |(120,000) |- |- |
|listed company | | | | |
+----------------------------------+-----+------------+------------+-----------+
+----------------------------------+-----+------------+------------+-----------+
|Cash flows from operating | |(555,084) |(380,361) |(859,674) |
|activities | | | | |
+----------------------------------+-----+------------+------------+-----------+
+----------------------------------+-----+------------+------------+-----------+
|Investing activities | | | | |
+----------------------------------+-----+------------+------------+-----------+
|Payments to acquire property, | |(1,467) |- |(26,505) |
|plant and equipment | | | | |
+----------------------------------+-----+------------+------------+-----------+
|Payments for deferred exploration | |(911,600) |(601,045) |(1,458,630)|
|expenditure | | | | |
+----------------------------------+-----+------------+------------+-----------+
|Interest received | |19,217 |12,467 |29,887 |
+----------------------------------+-----+------------+------------+-----------+
|Investments in associates | |(119,935) |(168,379) |(290,308) |
+----------------------------------+-----+------------+------------+-----------+
|Proceeds from sale of investments | |- |- |2,943 |
|for resale | | | | |
+----------------------------------+-----+------------+------------+-----------+
+----------------------------------+-----+------------+------------+-----------+
|Cash flows used in investing | |(1,013,785) |(756,957) |(1,742,613)|
|activities | | | | |
+----------------------------------+-----+------------+------------+-----------+
+----------------------------------+-----+------------+------------+-----------+
+----------------------------------+-----+------------+------------+-----------+
|Financing activities | | | | |
+----------------------------------+-----+------------+------------+-----------+
|Proceeds from issue of share | |- |- |3,197,268 |
|capital | | | | |
+----------------------------------+-----+------------+------------+-----------+
+----------------------------------+-----+------------+------------+-----------+
|Cash flows from financing | |- |- |3,197,268 |
|activities | | | | |
+----------------------------------+-----+------------+------------+-----------+
+----------------------------------+-----+------------+------------+-----------+
|Net (decrease)/increase in cash | |(1,568,869) |(1,137,318) |594,981 |
|and cash equivalents | | | | |
+----------------------------------+-----+------------+------------+-----------+
|Cash and cash equivalents at | |3,293,014 |2,709,957 |2,709,957 |
|beginning of period | | | | |
+----------------------------------+-----+------------+------------+-----------+
|Exchange loss/(gain) | |2,526 |(34,389) |(11,924) |
+----------------------------------+-----+------------+------------+-----------+
+----------------------------------+-----+------------+------------+-----------+
|Cash and cash equivalents at end | |1,726,671 |1,538,250 |3,293,014 |
|of period | | | | |
+----------------------------------+-----+------------+------------+-----------+

The accompanying notes form an integral part of these condensed consolidated
financial statements.


African Eagle Resources plc

Notes to the Condensed Consolidated Half Year Financial Statements
For the six months ended 30 June 2010

1   Nature of Operations and General Information

African Eagle Resources plc ("African Eagle" or the "Company") is a public
limited company incorporated and domiciled in England and is listed on the
Alternative Investment Market ("AIM") of the London Stock Exchange and the
Alternative Exchange of the Johannesburg stock Exchange Limited (AltX), and has
consented to its shares being traded on the London PLUS Markets. African Eagle
is a holding company of a mineral exploration and development group of companies
(the "Group"). The Group is currently undertaking a pre-feasibility study on its
Dutwa Nickel project in Tanzania.

Based on the cash in hand and the commitments received to subscribe in new
Ordinary Shares as outlined in Note 6, the Directors continue to adopt the going
concern basis in preparing the financial statements.

African Eagle's unaudited condensed consolidated half year financial statements
("Financial Statements") are presented in pounds sterling (£), which is also the
functional currency of the parent company. The Financial Statements were
approved for issue by the Board of Directors on 22 September 2010.

2   Statement of Compliance and basis of preparation

The Financial Statements are for the six months ended 30 June 2010.  They do not
include all the information required for full annual financial statements and
should be read in conjunction with the audited consolidated financial statements
of the Group for the year ended 31 December 2009, which were prepared under
International Financial Reporting Standards ("IFRS") as adopted by the European
Union ("EU").

The financial information is prepared under the historical cost convention and
in accordance with the recognition and measurement principles contained within
IFRS as endorsed by the EU.

The comparative amounts in the Financial Statements include extracts from the
Company's consolidated financial statements for the year ended 31 December
2009. These extracts do not constitute statutory accounts within the meaning of
Section 435 of the Companies Act 2006 (the "Act").

3   Loss Per Share

(a) Basic loss per share

The calculation of basic loss per share is based on the loss for the period
divided by the weighted average number of shares in issue during the period. In
calculating the diluted loss per share potential ordinary shares such as share
options and warrants have not been included as they would have the effect of
decreasing the loss per share. Decreasing the loss per share would be
anti-dilutive.

+------------------------------------------+-----------+-----------+-----------+
| |30 June |30 June |31 December|
|Loss per share |2010 |2009 |2009 |
| |£ |£ |£ |
+------------------------------------------+-----------+-----------+-----------+
|Loss for the period |(387,831) |(613,974) |(1,189,594)|
+------------------------------------------+-----------+-----------+-----------+
|Weighted average number of shares in issue|296,762,128|212,540,128|246,459,673|
+------------------------------------------+-----------+-----------+-----------+
|Basic & diluted headline loss per share |(0.1p) |(0.3p) |(0.5p) |
+------------------------------------------+-----------+-----------+-----------+

(b) Headline loss per share

Headline loss per share has been calculated in accordance with the South African
Institute of Chartered Accountants Circular 3/2009 - Headline Earnings. Circular
3/2009 is effective for interim and/or annual financial periods ending on or
after 31 August 2010.

The calculation of headline loss per share is based on the headline loss for the
year divided by the weighted average number of shares in issue during the year.
No diluted headline loss per share has been calculated as it would be
antidilutive by reducing the headline loss per share.

+-----------------------------------------++-----------+-----------+-----------+
|Headline Loss ||30 June |30 June |31 December|
+-----------------------------------------++-----------+-----------+-----------+
| ||2010 |2009 |2009 |
+-----------------------------------------++-----------+-----------+-----------+
| ||£ |£ |£ |
+-----------------------------------------++-----------+-----------+-----------+
+-----------------------------------------++-----------+-----------+-----------+
|Loss for the period ||(387,831) |(613,974) |(1,189,594)|
+-----------------------------------------++-----------+-----------+-----------+
|Adjusted for: || | | |
+-----------------------------------------++-----------+-----------+-----------+
|  Plus loss on sale of fixed assets ||238 |150 |705 |
+-----------------------------------------++-----------+-----------+-----------+
|  Plus impairment of deferred exploration||14,337 |145,071 |221,169 |
|assets || | | |
+-----------------------------------------++-----------+-----------+-----------+
|  Plus Group share of associated loss ||4,920 |7,634 |7,476 |
+-----------------------------------------++-----------+-----------+-----------+
|  (Less)/plus Group share of Joint ||(460) |762 |630 |
|Venture || | | |
+-----------------------------------------++-----------+-----------+-----------+
|  Plus impairment of available for sale ||- |- |12,718 |
|financial assets || | | |
+-----------------------------------------++-----------+-----------+-----------+
|  Less Recognition of investment in a ||(120,000) |- |- |
|listed company || | | |
+-----------------------------------------++-----------+-----------+-----------+
|  || | | |
+-----------------------------------------++-----------+-----------+-----------+
|Headline loss ||(488,796) |(460,357) |(946,896) |
+-----------------------------------------++-----------+-----------+-----------+
|  || | | |
+-----------------------------------------++-----------+-----------+-----------+
|Weighted average number of shares in ||296,762,128|212,540,128|246,459,673|
|issue || | | |
+-----------------------------------------++-----------+-----------+-----------+
|Basic & undiluted headline loss per share||(0.2p) |(0.2p) |(0.4p) |
+-----------------------------------------++-----------+-----------+-----------+

4   Deferred Exploration

+-------------------------------------+----------+-----------+-----------+
| |30 June |30 June |31 December|
+-------------------------------------+----------+-----------+-----------+
| |2010 |2009 |2009 |
+-------------------------------------+----------+-----------+-----------+
| |£ |£ |£ |
+-------------------------------------+----------+-----------+-----------+
+-------------------------------------+----------+-----------+-----------+
|Cost: | | | |
+-------------------------------------+----------+-----------+-----------+
|At 1 January |10,261,104|9,717,268 |9,717,268 |
+-------------------------------------+----------+-----------+-----------+
|Foreign currency exchange differences|308,119 |(1,326,422)|(746,873) |
+-------------------------------------+----------+-----------+-----------+
|Additions |889,490 |622,840 |1,511,878 |
+-------------------------------------+----------+-----------+-----------+
|Transfer to available for sale assets|(882,148) |- |- |
+-------------------------------------+----------+-----------+-----------+
|Impairment costs |(14,337) |(145,071) |(221,169) |
+-------------------------------------+----------+-----------+-----------+
+-------------------------------------+----------+-----------+-----------+
|Balance at the period end |10,562,228|8,868,615 |10,261,104 |
+-------------------------------------+----------+-----------+-----------+
+-------------------------------------+----------+-----------+-----------+

5   Available for Sale Assets

(a) Investment in listed companies

+----------------------------------+-----------+---------+-------------+
| | 30 June | 30 June | 31 December |
+----------------------------------+-----------+---------+-------------+
| | 2010 | 2009 | 2009 |
+----------------------------------+-----------+---------+-------------+
| | £ | £ | £ |
+----------------------------------+-----------+---------+-------------+
| Cost: | | | |
+----------------------------------+-----------+---------+-------------+
+----------------------------------+-----------+---------+-------------+
| Investment in listed companies | 140,000 | 2,583 | - |
+----------------------------------+-----------+---------+-------------+
| Exploration assets held for sale | 882,148 | - | - |
+----------------------------------+-----------+---------+-------------+
+----------------------------------+-----------+---------+-------------+
| Balance of at the period end | 1,022,148 | 2,583 | - |
+----------------------------------+-----------+---------+-------------+
+----------------------------------+-----------+---------+-------------+

Investment in listed companies at 30 June 2010 represents the Company 3.15%
interest in Kibo Mining, a AIM listed explorer (ticker: KIBO). This investment
was received in respect of compensation arising from the termination of a joint
venture between the Company and Sloane Developments Limited (a wholly owned
subsidiary of Kibo Mining).

+-------------------------------+---------+---------+-------------+
| | 30 June | 30 June | 31 December |
+-------------------------------+---------+---------+-------------+
| | 2010 | 2009 | 2009 |
+-------------------------------+---------+---------+-------------+
| | £ | £ | £ |
+-------------------------------+---------+---------+-------------+
| Cost: | | | |
+-------------------------------+---------+---------+-------------+
| Balance brought forward | - | 1,967 | 1,967 |
+-------------------------------+---------+---------+-------------+
| Investments during the period | 120,000 | - | - |
+-------------------------------+---------+---------+-------------+
| Adjustment to fair value | 20,000 | 616 | 976 |
+-------------------------------+---------+---------+-------------+
| Sale of investments | - | - | (2,943) |
+-------------------------------+---------+---------+-------------+
+-------------------------------+---------+---------+-------------+
| Balance at the period end | 140,000 | 2,583 | - |
+-------------------------------+---------+---------+-------------+

The recognition of the investment in Kibo Mining is treated as other income in
the condensed consolidated statement of comprehensive income.

(b) Exploration assets held for sale

This relates to African Eagle's Igurubi gold project in Tanzania. The Company
announced on 17 April 2010 that it had agreed terms for Peak Resources to
acquire the Company's 75% interest in Igurubi. The agreement is subject to a
number of pre-conditions which at 30 June 2010 had not yet been satisfied. It is
anticipated that these preconditions will be satisfied by the year end at which
point the Company will recognise the disposal of Igurubi in its financial
statements.

6   Events after the balance sheet date

On 15 September 2010 the Company announced that Seymour Pierce and Ocean
Equities have arranged a Placing to raise gross proceeds of approximately £3.3
million by way of a placing of 88,000,000 new Ordinary Shares at a price of
3.75p each (the "Placing Shares") with new and existing investors (the
"Placing"). The Placing will represent approximately 22.9% of the issued
Ordinary Share capital of the Company as enlarged by the Placing Shares.

At the end of August 2010, African Eagle held net cash of approximately £1.25
million. The Board has decided to raise £3.1 million, after expenses, through a
placing of the Placing Shares at the Placing Price to institutions and private
client brokers. The expenses of the Placing are estimated to be approximately
£0.2 million. Based on current forecasts, the Directors believe that the Placing
proceeds alone will be sufficient to fund the next stage of the Dutwa project
and the general working capital requirements of the Group over the next 12
months.

In connection with the Placing, the Company posted a circular (the "Circular")
to Shareholders which contains a notice of General Meeting. The purpose of the
GM is to consider and, if thought fit, to pass the resolutions necessary to
authorise and implement the Placing.

The Directors have subscribed for an aggregate of 546,667 Placing Shares.
Details of individual Directors' subscriptions and their consequent holdings and
percentages following the Placing are as follows:

+--------------+---------------+------------+---------+-----------+------------+
| | |Cash amount |Number of|Holding |Percentage |
|Director |Position |subscribed |Placing |after |after |
| | | |Shares |Placing |Placing |
+--------------+---------------+------------+---------+-----------+------------+
|Euan |Non-Executive |£5,000 |133,333 |1,193,333 |0.31 |
|Worthington |Chairman | | | | |
+--------------+---------------+------------+---------+-----------+------------+
|Mark Parker |Managing |£10,000 |266,667 |4,563,967 |1.19 |
| |Director | | | | |
+--------------+---------------+------------+---------+-----------+------------+
|Christopher |Operations |£1,000 |26,667 |1,047,165 |0.27 |
|Davies |Director | | | | |
+--------------+---------------+------------+---------+-----------+------------+
|Bevan Metcalf |Finance |£2,000 |53,333 |260,833 |0.07 |
| |Director | | | | |
+--------------+---------------+------------+---------+-----------+------------+
|Geoffrey |Non-Executive |£2,500 |66,667 |975,967 |0.25 |
|Cooper |Director | | | | |
+--------------+---------------+------------+---------+-----------+------------+


[HUG#1446235]








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Source: African Eagle Resources PLC via Thomson Reuters ONE


Unternehmen: African Eagle Resources PLC - ISIN: GB0003394813