Nevsun Resources Eritrea

VANCOUVER, BC - Nevsun Resources Ltd. (TSX:NSU)(NYSE Amex:NSU) (the “Company”) announces the initiation of a common share repurchase program using the normal course issuer bid facility under Toronto Stock Exchange (“TSX”) rules.

Nevsun has received approval from the TSX to purchase up to 4,009,408 common shares of the Company, representing approximately 2% of the 200,470,415 common shares issued and outstanding as at March 15, 2012. The purchases may commence no earlier than March 26, 2012 and continue over the next six months depending on market conditions until September 26, 2012.

The TSX approved the plan pursuant to which the Company has indicated that it intends to make a normal course issuer bid for certain of its outstanding common shares. Daily purchases will not be greater than 25% of the average daily trading volume of 594,331 common shares on the TSX in the preceding six calendar months, or up to 148,583 shares per day depending on market conditions and subject to prescribed exceptions.

Purchases will be made in open market transactions by a registered investment dealer through the facilities of the TSX and through other Canadian market places. Any common shares purchased pursuant to the bid will be cancelled by the Company. Management of the Company believe that the current share price is not reflective of the underlying value of the business.

A copy of the Company’s Notice filed with the TSX may be obtained, by any shareholder without charge, by contacting Nevsun’s Corporate Secretary.

This news release does not constitute a solicitation of an offer to buy any of the securities in the United States.