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Nevsun Resources Ltd
Symbol NSU
Shares Issued 196,608,322
Close 2011-04-05 C$ 6.04
Market Cap C$ 1,187,514,265
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Nevsun's Bisha Q1 2011 production at 75,000 oz Au dore

2011-04-06 09:39 ET - News Release

Mr. Cliff Davis reports

NEVSUN Q1 2011 OPERATING HIGHLIGHTS

Nevsun Resources Ltd.'s Bisha mine in Eritrea processed 461,000 tonnes of ore yielding 75,000 ounces of gold in dore in the first quarter of 2011 during the same period it was ramping up to commercial production. Nevsun has accumulated significant cash during the first quarter, with a cash balance of $100-million as of March 31, 2011.

The Bisha mine continues to perform very well and is now producing over 1,000 ounces of gold per day. The associated table demonstrates the successful ramp-up to commercial production in January and February, and the first month of full operations in March.


                               January, 2011    February, 2011    March, 2011  Total first-quarter 2011
                               Preproduction(1) Production               

Tonnes milled                  126,000          160,000           175,000      461,000
Recovery, per cent of gold     86%              88%               89%          88%
Gold in dore, ounces           16,000           25,000            34,000       75,000
Gold price realized, per ounce n/a(2)           $1,390            $1,430       $1,405

(1) For accounting purposes, sales from ounces produced prior to March 1,
    2011, are considered preproduction and capitalized.                      
(2) No gold sales in January.

Nevsun's cash accumulation since Dec. 31, 2010, reflects ounces shipped and paid by the refiner to March 31, 2011. The last shipment in the quarter was March 28, 2011.

Full first-quarter results including costs and profitability are expected on or before May 11, 2011.

We seek Safe Harbor.

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