MINERAL RESOURCE

A Mineral Resource estimate for the deposits at Miyabi was completed in 2006. The estimate was prepared by the UK division of SRK Consulting at the direction of African Eagle.

Detailed drilling has been carried out on four deposits at the project. Both reverse circulation (RC) and diamond drilling has been carried out, typically on 50m by 50m spacings with some areas of infill to 25m. The strongest mineralisation has been defined at the Faida and Kilimani deposits which have strike extents of approximately 600m each, but where drilling rarely extends below 120m vertical depth. Mineralisation is typically 20m to 50m in width and sub-crops beneath a thin veneer of alluvial cover (Faida) or ferruginous hardpan (Kilimani).

A total of 30 diamond holes and 165 RC holes were included in the estimate. Industry standard quality control programs were included in the drilling and supported the data used in the estimate.

Resource boundaries were defined using nominal 0.5g/t Au envelopes which were modelled into a series of three-dimensional wireframes which showed excellent lateral continuity. Statistical and geostatistical analysis was followed by ordinary kriging estimation to produce the Mineral Resource. A high grade cut of 50g/t was applied to 3m composited assay data prior to estimation. Oxidation boundaries were interpreted from geological logging and were used to define oxide, transitional and fresh mineralisation in each deposit. Bulk density data was measured from drill core and mean densities applied to each of the weathering types at each deposit.

Resource classification was largely based on drill hole spacing. Indicated Mineral Resource was defined where drill hole spacing was typically less than 40m by 40m. A summary of the SRK Mineral Resource estimate at a 0.5g/t Au cut-off is shown below.

Miyabi Mineral Resource Estimate 0.5g/t Au Cut-off (SRK Estimate 2006)

Deposit	Indicated			Inferred			Total Resource
	Mt	g/t	Moz	Mt	g/t	Moz	Mt	g/t	Moz
Faida	3.5	1.5	0.17	1.0	0.9	0.03	4.4	1.4	0.20
Ngaya	0.2	1.0	0.01	1.5	1.1	0.05	1.7	1.1	0.06
Shambani	1.6	1.5	0.07	0.8	1.1	0.03	2.4	1.3	0.10
Kilimani	2.6	1.4	0.12	0.3	1.6	0.01	2.9	1.4	0.13
Northern Zone				1.0	0.8	0.02	1.0	0.8	0.02
Total	7.9	1.5	0.37	4.5	1.0	0.15	12.4	1.3	0.52
*Rounding errors may occur