Eritrea Resource play (ERP)

[Ed Monton]

Nevsun Resources Ltd.: Update on the Affairs in Eritrea

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 21, 2004) -
Nevsun Resources Ltd., (NSU/TSX) would like to announce that Mr.
John Clarke, President and Chief Executive Officer of Nevsun
Resources Ltd., was in Asmara, Eritrea from September 8th to
September 16th in an effort to get a better understanding of the
directive by the Government of Eritrea to halt all exploration
work. In Asmara he met with the Minister of Mines and Energy and
senior officials in the Department of Mines. The Government has
not provided any clarification of their directive. Nevsun will
continue to comply with the Government directive.

Management has no comment on rumours and speculation circulating
in the marketplace as any comment would be conjecture. We fully
recognize the value of shareholder concerns and will provide
further factual information as it becomes available.

On Eritrea related matters, work outside of the country is
continuing on the completion of the independent resource estimate
for the Bisha Project by the end of September. The Company is
planning for the advancement of this project to commercial
production.

A third diamond drill rig is currently in transit to Eritrea.
Once an announcement is received from the Government granting
permission to recommence exploration activities, the first
priority of the planned drill program will be geotechnical
drilling and sampling for metallurgical testing in connection
with a feasibility study for the Bisha Main Project. Exploration
work at Bisha and Nevsun's other properties in Eritrea will also
continue.

Forward Looking Statements: The above contains forward looking
statements that are subject to a number of known and unknown
risks, uncertainties and other factors that may cause actual
results to differ materially from those anticipated in our
forward looking statements. Factors that could case such
differences include: changes in world gold markets, equity
markets, costs and supply of materials relevant to the mining
industry, change in government and changes to regulations
affecting the mining industry. Although we believe the
expectations reflected in our forward looking statements are
reasonable, results may vary, and we cannot guarantee future
results, levels of activity, performance or achievements.

NEVSUN RESOURCES LTD.

Dr. John A. Clarke, President & Chief Executive Officer

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FOR FURTHER INFORMATION PLEASE CONTACT:
Nevsun Resources Ltd.
Don Halliday
Manager, Investor Relations
[phone] or Toll Free 1-888-600-2200
Email: [e-mail]
Website: www.nevsun.com