October 21, 2009 African Eagle (AFE), a diversified mineral exploration and development company operating in eastern and central Africa, announced on today that the company had made significant progress at its Dutwa Nickel project in Tanzania, with the current drill campaign well underway. The scoping study for the project (delivered end of July) indicated a likely Internal Rate of Return of some 25%. Net Present Value Estimates (at nickel price of around $8/lb) run at just around US$530 million. African Eagles successful placing in August raised £3.3 million towards funding further studies and progressing the project towards feasibility. The company has also begun a programme of approximately 60 infill and step-out drill holes on the main nickel deposit at Wamangola Hill. 250 kilograms of drill core have been despatched to Mintek Laboratories in South Africa for the second phase of metallurgical test work. This work will help determine the best extraction process. The company says it has begun the process of transformation from an exploration group into a nickel development and mining company. African Eagle carries £1.4m of cash on its balance sheet (at 30th June 2009) with not debt. Liquidity is good, at current ratio of 4.8. Capital Expenditure in six months to 30th June 2009 amounted to just over £0.5 million. Shares currently trade at 4.76 pence, giving a market capitalisation of £14.1m.