February 25, 2008
Nevsun Resources Ltd., (NSU-TSX/AMEX) (“Nevsun”) wishes to provide an update to shareholders on its
Bisha project. Recent milestones achieved by the Bisha Mining Share Company (“BMSC”), the Company’s
Eritrean subsidiary, include:
N E W S R E L E A S E
Bisha Mining License Issued, announced January 8, 2008
· Bisha Mining Agreement Signed, announced December 12, 2007
· Agreement for State Participation Signed, announced October 29, 2007
The boards of Nevsun Resources and BMSC have recently approved the decision to progress the Bisha project
through to project construction. Senet Engineering of South Africa was selected in 2007 as the preferred
contractor for the project following an international bidding process, and has been actively engaged with BMSC
in the preliminary and detailed engineering design for the Bisha Mine since mid 2007. During that time, BMSC’s
Project Manager has been located in Senet’s Johannesburg office liaising with Senet staff. Senet established an
office in Asmara during Q4 2007.
A contract with Senet defining their continuing role as the EPCM (Engineering, Procurement, and Construction
Management) contractor for the development of the Bisha Mine in Eritrea will be completed shortly. The longest
lead items and hence the critical path limitation for the development of the Bisha Mine are the SAG and ball mills.
BMSC has selected the crusher and mill supplier for the project following an international bidding process and is
in the process of finalizing orders.
Nevsun has received a substantial provisional payment from ENAMCO, the Eritrean National Mining
Corporation, in connection with the State participation arrangements announced in October 2007, such that
Nevsun cash position at month end January 2008 is approximately US$40 million. The Company is well financed
to continue with the development of the Bisha Mine with its partner ENAMCO.
BMSC has commenced actively seeking project deb