Nevsun Resources Ltd.: Bisha Update and Annual Financial Results

VANCOUVER, BRITISH COLUMBIA, Mar 30 (MARKET WIRE) --
Nevsun Resources Ltd. (TSX: NSU)(NYSE Alternext US: NSU)(NYSE Amex:
NSU.A) wishes to announce its recent financial position and its annual
results for 2008 as well as provide an update on the Bisha project. All
amounts are expressed in United States dollars.

The Company's current cash position at the end of March will be
approximately $30 million.

For the year ended December 31, 2008 the Company has reported a loss of
$5.7 million, net of income of $2.0 million from discontinued operations
in early 2008. The results compare to 2007 when the Company reported a
loss of $12 million, including $7.8 million from discontinued operations.

Complete details of the 2008 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.

BISHA UPDATE

The Bisha Project is a World Class gold/copper/zinc deposit in Eritrea.
It benefits from the continued support of the local Eritrea Government
and, despite the "credit crunch", Nevsun is in the process of arranging,
with a reputable lending group, the necessary additional finance for the
Bisha development. The project continues to be on budget. Production is
scheduled for mid 2010.

Bisha Mining Share Company (BMSC), the project company, had, as of
December 31, spent, ordered or arranged approximately $80 million of the
$250 million project cost. Funding to date has been provided by Nevsun
and ENAMCO; the Eritrean National Mining Corporation. ENAMCO is a 40%
owner, contributing 1/3 of the equity requirements. Finance costs will be
in addition to the $250 million project costs.

1. Completion of debt finance. The lending group for the project debt has
been actively dealing with the documentation and normal legal, due
diligence and documentation arrangements. While not absolutely assured
until all approvals and documentation is completed, the planned debt
package will be a mix of senior and subordinated debt coming from a
number of development agencies and commercial banks from Europe and South
Africa. The completion of debt facilities will take place during Q2 and
is expected to total $240 million, including a cost over-run facility of
$30 million. The robust nature of the Bisha Project will likely result in
a fairly quick payback, depending upon the price of gold. For example,
assuming a gold price of $900 per ounce, debt payback is expected to be
less than 2 years. Operating costs for the gold phase is projected at
approximately $200/oz. Endeavour Financial is the project finance advisor.

2. Construction. Photographs of the progress at site can be found on the
Company website - http://www.nevsun.com/properties/photo_gallery/.
Preparatory work, equipment orders and delivery are continuing. The
project detailed design work is virtually complete and orders have been
placed with terms secured for a substantial portion of the project. The
early order strategy was followed so as to ensure capex costs were
controlled. As a result of exchange rates favorable to the project, as
well as the early order strategy, the Company remains confident that the
Project can be completed within the previously issued capex estimate of
approximately $250 million, excluding cost of finance. The Company
continues to build its team of personnel in Eritrea from available skills
in country and from abroad.

Bisha Milestones Achieved

January 2008 Mining license granted

February 2008 Orders placed for critical equipment (long lead items,
ball and SAG mills)

August 2008 Contractor mobilized to site; site clearing and heavy
earth moving started

Sept 2008 Construction camp for 400 people advanced

October 2008 $89 million debt finance commitment received from
Industrial Development Corporation of South Africa, as
part of the project finance consortium, subject to
completion of all debt facilities referred to above

March 2009 Over 500,000 accident free hours on Bisha site since
start of construction

Bisha Project Economics

High returns and quick capital payback highlight the economic strength of
the Project. Low site operating costs throughout the projected mine life
result in Bisha being particularly robust and the strengthening of the US
dollar will also improve the economics further regarding both capital and
operating costs. Due to the volatility in metals prices over recent
months, management presents below two projections using different metals
prices. Both cases are prior to the cost of the project debt finance that
is currently being arranged.

---------------------------------------------------------------------------
Lower metals prices(1) Higher metals prices(1)
---------------------------------------------------------------------------
Rate of return (IRR) 35% 47%
---------------------------------------------------------------------------
Net cash flow (after tax) $560 million $856 million
---------------------------------------------------------------------------
Payback 2.4 years 2.0 years
---------------------------------------------------------------------------

(1) Assumptions Lower metals prices - Au $750/oz, Cu $1.70/lb,
Zn $0.60/lb, Ag $10/oz
Higher metals prices - Au $900/oz, Cu $2.00/lb,
Zn $0.70/lb, Ag $12/oz
Preproduction capex - $250 million (June 2008, including
$32 million contingency)

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

Forward Looking Statements: The above contains forward-looking statements
concerning Eritrean government support, production schedule, details of
the planned debt package, completion date of debt facilities and payback
time, operating costs and costs to project completion, metals price
projections and assumptions. 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

Contacts:
Nevsun Resources Ltd.
John Clarke
(604) 623-4700 or 1-888-600-2200
Email: nevsuninfo@nevsun.com
Website: www.nevsun.com

Copyright 2009, Market Wire, All rights reserved.

-0-