Nevsun Eritrea

Nevsun ownership interest in the Bisha Project

On October 26, 2007 the Company and the State-owned Eritrean National Mining Corporation (ENAMCO) entered into an agreement to increase the State’s participation in the Bisha project. ENAMCO agreed to purchase at fair value a 30% paid participating interest to add to its 10% free participating interest provided by Eritrean mining legislation, resulting in a total State participation of 40% (30% contributing; 10% free carried).

The final amount to be paid by the State will be determined by an independent valuator and will be based on the net present value of 30% of the project, as evaluated upon the first shipment of gold from the mine. As a first provisional payment, ENAMCO paid the Company $25,000,000 during Q1 2008.

Liquidity and Capital Resources

The Company’s cash at December 31, 2009 was $29.1 million (December 31, 2008 – $40.7 million).

In January 2008 the Company received $25 million related to the provisional payment on acquisition by ENAMCO of its contributing interest in Bisha. ENAMCO continues to fund its share of all costs of the Bisha project and advanced $21.9 million to Bisha during 2009. The advances incurred $1,413,850 of interest, which was capitalized to property, plant and equipment. The interest and advances will be repaid out of operating cash flow, are not callable and have no specified repayment terms.

In May 2008 the Company received $20 million from the sale of its Mali assets. In July 2008 the Company also collected $3 million from PMI Gold Corporation related to the 2007 sale of its Ghana assets.

In September 2009 the Company received a $20 million loan from ENAMCO. In October 2009 it then raised $30.1 million by way of a non-brokered private placement of 11,500,000 common shares.

From these cash resources the Company used $83.8 million in its operating and investing activities during 2009 (2008 - $45.1 million). The Company has spent $122.4 million on the Bisha capital project and based on current estimates, as at December 31, 2009 required approximately $137.6 million to complete the project.

Subsequent to December 31, 2009 the Company raised a further $111.5 million by way of a non-brokered private placement of 52,000,000 common shares. The Company is confident the funds from this private placement, together with its existing cash and the ongoing one-third contribution by ENAMCO to Bisha will be sufficient to see the Bisha project through to cash positive operations.

In July 2009 the Company’s subsidiary, Bisha Mining Share Company (BMSC) had arranged debt facilities totalling $235 million for the Bisha project. The debt package was a mix of senior and subordinated facilities from a lending group comprised of seven institutions from Europe and South Africa.

In February 2010 the Company changed its approach to funding the Bisha project to ensure the project continued on schedule. While Bisha had already completed project debt agreements with European and South African lenders, these debt facilities had not yet been drawn and it became apparent that access to the debt in the required time frame was uncertain. The Company and ENAMCO concluded that the debt facilities were unreliable and inconclusive for the Bisha project.

As a result of the change in approach to funding the Bisha project, during Q1 2010 the Company expensed approximately $8 million of costs related to securing the debt financing that at December 31, 2009 were treated as deferred finance costs and were included in property, plant and equipment.

Contractual Obligations

As of December 31, 2009 the Company had the following contractual obligations:

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The Company also has an environmental bond to cover remediation liabilities for Bisha in the amount of $2,000,000 at a cost of 1% per annum.

The Company has not entered into any specialized financial agreements to minimize its commodity risk, investment risk or currency risk. There are no off-balance sheet arrangements, except for the purchase price adjustment on the disposition of the 30% contributing interest in Bisha, acquired by ENAMCO (the Eritrean State mining company). Refer to note 10(a) of the annual consolidated financial statements for a description of the purchase price adjustment with ENAMCO.

Also refer to note 4 of the annual consolidated financial statements for a description of the Company’s financial instruments and risk management.

Financial Report 2009: http://www.nevsun.com/docs/financials/1209_NSU_MD&A_Final.pdf

Nevsun Resources

Nevsun Resources Ltd. (TSX:NSU / NYSE Amex:NSU) is pleased to announce its recent financial position and its annual results for 2009. All amounts are expressed in United States dollars.

The Company’s cash position at the end of March 2010 is approximately $118 million.

For the year ended December 31, 2009 the Company has reported a loss of $5.5 million. The results compare to 2008 when the Company reported a loss of $5.7 million, including $2.0 million of income from discontinued operations.

Included in the Company’s MD&A are management’s report on the Company’s Bisha Project construction progress, as well as economics and cash flows for the project. The project is now over 50% complete and commissioning is expected to commence in late 2010. Photographs of the construction progress can be found at www.nevsun.com/properties/photo_gallery.

Complete details of the 2009 financial statements and management’s discussion and analysis can be found on the Nevsun website at www.nevsun.com as well as on Sedar at www.sedar.com and EDGAR at http://www.sec.gov/edgar/searchedgar/webusers.htm.

Forward Looking Statements:

The above contains forward-looking statements concerning cash position, construction progress and project economics. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those described in the Management Discussion and Analysis of the Company. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

NEVSUN RESOURCES LTD.

Cliff T. Davis

President & Chief Executive Officer

Nevsun

Nevsun Resources Ltd., (NSU-TSX/NYSE AMEX) wishes to announce its recent financial position and its quarterly results for Q3 2009. All amounts are expressed in United States dollars.

The Company’s cash position at the end of September was $26.8 million, prior to raising $32.8 million during late October.

The loss for the quarter was $1.0 million compared to a loss of $843 thousand for the same quarter in 2008, with the increase mainly due to reduced interest income.

During the quarter the Company spent $21.7 million on the development of the Bisha project in Eritrea (2008 - $14.3 million). As at September 30th the project was approximately 40% complete to production and remains on budget.

Complete details of the Q3 2009 financial statements and management’s discussion and analysis can be found on the Nevsun website at www.nevsun.com as well as on Sedar at www.sedar.com and EDGAR at http://www.sec.gov/edgar/searchedgar/webusers.htm. Source: (Nevsun Resources)