IFC INVESTMENT IN AFRICAN EAGLE

9 November 2011

African Eagle Resources plc

IFC DISCLOSES PROPOSED INVESTMENT IN AFRICAN EAGLE

African Eagle Resources plc ("African Eagle" or "the Company"; AIM: AFE; AltX:
AEA) is pleased to report that IFC, a member of the World Bank Group, proposes
to subscribe for a 10% equity share in the Company, through an investment of
approximately US$5 million (£3.1m) in African Eagle Resources, primarily to
finance the evaluation of the Dutwa Nickel Project. The proposed investment is
subject to signature of a subscription agreement following IFC's 30 day public
disclosure period and formal approval by IFC's Board of Directors.

The proposed IFC investment will be made through an equity subscription
agreement (the "Placing") with the Company. The placing price of 6.8 pence per
share (the "Placing Price") values IFC's investment at approximately US$5
million (ca.£3.1m) and will result in the issue of 45,509,570 ordinary shares in
the capital of the Company to IFC. The Placing Price and total proceeds from the
Placing were determined by the 20-day volume weighted average price of African
Eagle shares on the day preceding this public disclosure of IFC's proposed
investment.

The Placing, which is subject to the signature of a subscription agreement
containing standard conditions for a financing of this type, is expected to
close following approval by IFC's Board of Directors after IFC's public
disclosure period of 30 days from the date of this announcement. Upon closing of
the Placing, IFC will hold 10% of the issued share capital of the Company,
making it the second largest shareholder in African Eagle.

For every two new shares subscribed for, IFC will receive a warrant to purchase
one further share at a price per share of 150% of the Placing Price, exercisable
for four years. Accordingly, on closing of the Placing, IFC will hold
22,754,785 share purchase warrants. IFC will also have a pre-emptive right to
participate in any future equity or equity linked financings in order to allow
it to maintain its 10% ownership in the Company.

The proceeds of the Placing will be used to continue the evaluation of the Dutwa
Nickel Project in Tanzania through the progression of the Company's bankable
feasibility study.

Euan Worthington, Chairman of African Eagle commented "We are delighted that IFC
has decided, after careful due diligence, to invest in the Dutwa project,
endorsing our view that Dutwa will become a major new mine for Tanzania. Our
management is fully behind the IFC`s criteria for responsible environmental and
social management of the Dutwa project and we will welcome IFC as a shareholder.
This investment will further de-risk the project by providing further financing
towards the feasibility study".

The IFC has posted a Summary of Proposed Investment ("SPI") and an Environmental
and Social Review Summary ("ESRS") for public viewing on its website.

The following are excerpts from the Development Impact section of the SPI:

Anticipated Development Impact of Project

The proposed investment will contribute to the completion of a full project
feasibility study to confirm the commercial viability of Dutwa. Thus IFC's
current investment will be used for further exploration and studies, and not for
the development of a mine. Development impacts from exploration activities are
typically limited and at this stage mainly limited to local employment.

If Dutwa is developed, significant development impacts will be realised,
including: (i) diversification of Tanzania's mining industry beyond gold and
gemstones into base-metals; (ii) Government revenue generation and increased
foreign exchange earnings; (iii) Significant linkages of Dutwa with other
domestic economic activities; especially transportation and logistics; (iv)
employment opportunities; and (v) Dutwa could become a long-term base-load
customer of the Tanzanian central rail system.

IFC's expected development contribution

African Eagle has shown commitment to responsible environmental and social
management. IFC will assist the Company to implement the appropriate measures to
ensure that the Project is developed in line with international best practice,
particularly with regard to environmental and social sustainability.

IFC will be a strategic long-term partner with the Company and assist it to
attract future investments to support the development of the Project.

Governance

The World Bank's Mining Policy group is actively involved in Tanzania and is
providing capacity building support to the Ministry of Mines in a number of
areas. In 2009, Tanzania became a candidate country to the Extractive Industries
Transparency Initiative ("EITI") and submitted its Validation report, disclosing
payments to Government made by major extractive industry companies, in May
2011, which is currently being reviewed by the EITI board.

African Eagle has agreed publicly to disclose any material payments to the
Government, as per IFC's requirements.

The full text of the SPI can be found at
http://www.africaneagle.co.uk/downloads/AFE-IFC_SPI.pdf

The full text of the ESRS can be found at
http://www.africaneagle.co.uk/downloads/AFE-IFC_ESRS.pdf

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 (Chief Executive Officer) 1 925 577 1078
Mark Parker (Director) 44 207 248 6059
Euan Worthington (Chairman) 44 775 386 2097

Canaccord Genuity Limited
Andrew Chubb 44 207 050 6500
Bhavesh Patel

Ocean Equities Limited
Guy Wilkes 44 207 786 4370

Russell & Associates, Johannesburg
Charmane Russell 27 11 880 3924
Marion Brower

ABOUT IFC

IFC, a member of the World Bank Group, is the largest global development finance
institution focused on private sector development in frontier and emerging
markets. IFC provides financing to help businesses develop sustainable projects,
thereby helping to reduce poverty by creating employment opportunities,
supplying essential services, facilitating broader local supply chains and
increasing government revenues. IFC aims to increase the amount of seed
financing it provides to exploration-stage companies through its early equity
mining program, as well as providing support to mid-tier mining companies by
participating in project and corporate financing partnerships that will support
mining development and expansion. IFC will continue to work with mining majors
to develop large projects with the potential to transform national and / or
regional economies. IFC's global mining portfolio spans 37 countries, of which
17 are in Africa, and totals more than US$400 million. IFC is also expanding its
work in Advisory Services for the mining sector, by providing supply chain SME
(Small and Medium Enterprise) capacity building, supporting community engagement
so that local communities can benefit more from mining activities, and new
programs to help the industry to use resources more efficiently with less impact
on the environment. For more information, visit www.ifc.org.







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Source: African Eagle Resources PLC via Thomson Reuters ONE

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Unternehmen: African Eagle Resources PLC - ISIN: GB0003394813