Nevsun Resources Ltd., (NSU-TSX/NYSE AMEX) announced that its Bisha Project in Eritrea has received all required credit approvals from the project finance lenders for debt facilities totaling $235 million.

Further, the documentation of the facilities has been progressing in parallel and financial close is expected shortly. All amounts are expressed in United States dollars.

The debt package is a mix of senior and subordinated loans from a lending group comprised of seven institutions from Europe and South Africa. The arrangements include an available cost over-run facility of $30 million that will be in addition to a contingency allowance of $32 million in the budget.

The Project is now more than one third completed, and the forecast cost to complete remains on budget.

Endeavour Financial is the Company’s project finance advisor. At recent metal prices, the Project is expected to generate enough cash in the first two and a half years to repay all debt facilities, as well as fund the copper phase mine expansion during the same period.

The projected operating cash costs for gold production are estimated to be less than $230/oz, including royalties. The after tax internal rate of return of the Project, using recent metal prices and including the cost of finance, is approximately 54%. The mine is expected to start producing gold in Q3 2010.

The Company looks forward to progressing Bisha through to production with the continued full support of the Eritrean Government.