February 18, 2014

Nevsun Increases Indicated Resource Tonnes by 29% and Contained Copper by 22%

Highlights

• Bisha tenements indicated resources of contained copper increases by 22% to 1.4 billion pounds
• Bisha tenements indicated resources of contained zinc increases to 3.2 billion pounds
• Bisha pit supergene contained copper increases 1% in probable reserve, even after 2013 depletion
• All deposits remain open to further resource expansion

Vancouver, BC - Nevsun Resources Ltd. (TSX: NSU / NYSE MKT: NSU) ("Nevsun" or the "Company") is pleased to announce the maiden open pit mineral resource estimates for the Hambok and Northwest Zone deposits and the updated mineral reserve estimates for the Bisha Main and Harena open pit mines. Hambok and the Northwest Zone are satellite deposits to the Bisha Main pit and, in addition to Harena, are expected to provide additional feed to the Bisha mill, extending mine life.

The total indicated mineral resource estimate of the combined Bisha Mining Share Company ("BMSC") property tenements has increased 29% from the previous total indicated mineral resource estimate of May 31, 2012, by an additional 9.3 million  combined oxide gold, supergene copper and primary copper-zinc zone tonnes. This results in an additional 247 million pounds of in-situ copper for a 22 percent increase in contained copper and an additional 47 million pounds of in-situ zinc for a 1 percent increase in contained zinc.  Tables 1.1 to 1.5 contain the complete mineral resource estimates for each deposit.

Using a Net Smelter Return (NSR) cut-off of US$39.55 per tonne at $2.90 and $0.92 per pound copper and zinc respectively, the updated Bisha Main pit probable mineral reserve estimate consists of supergene copper ore of 7.4 million tonnes grading at 3.57 % copper, 0.61 g/t gold and 27 g/t silver and primary copper-zinc ore of 18.4 million tonnes grading at 1.02 % copper, 5.66 % zinc, 0.68 g/t gold and 46 g/t silver.  See Table 2.1 to 2.3 for details. 

Cliff Davis, Nevsun CEO commented, "Despite mining depletion and cost inflation since our last reserve report in mid-2012, Bisha base metal mine life is 11 years, demonstrating the robust nature of the high grade Bisha Main ore body."

The maiden open pit Hambok indicated mineral resource estimate includes 6.9 million tonnes grading at 1.14% copper and 1.86% zinc for 172 million pounds copper and 281 million pounds zinc.  The maiden open pit Northwest Zone indicated mineral resource estimate includes 1.0 million tonnes of supergene material grading 1.47% copper and 2.5 million tonnes of primary material grading at 1.04% copper and 1.08% zinc for a combined 92 million pounds copper and 60 million pounds zinc. See Tables 1.4 and 1.5 for details.

CEO Cliff Davis further commented, "The addition of new resources at Hambok and the Northwest Zone is an exciting first step to expanding the resource base at Bisha. All four Bisha deposits are open with extensions that we have yet to define.  We also look forward to further exploration success and unlocking the potential in the Bisha VMS camp."

The associated NI 43-101 Technical Report further detailing and supporting the Mineral Resources and Mineral Reserves highlighted below in this release will be filed on SEDAR no later than 45 days from today's date.

To view the tables associated with this press release, please follow this link.

Qualified Persons Statement

All mineral resources and mineral reserves estimates in this report have been prepared by the Qualified Persons described below in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects and the Canadian Institute of Mining, Metallurgy and Petroleum's Classification System (CIM Definition Standards for Mineral Resources and Mineral Reserves 2010).

The information in this press release that relates to mineral resources was prepared by Paul Gribble, C. Eng., FIMMM, Chief Resource Geologist of BMSC. The information in this report that relates to mineral reserves was prepared by Jay Melnyk P. Eng. of AGP Mining Consultants Inc. The information relating to mineral processing was prepared by Peter Munro BAppSc., of Mineralurgy Pty. Ltd. Mr. Gribble, Melnyk and Munro are Qualified Persons as defined by NI 43-101 and have reviewed and approved the technical contents of this press release.

Peter Manojlovic, P.Geo., and Frazer Bourchier, P.Eng., are Nevsun's designated Qualified Persons and have reviewed and approved the contents of this press release.

A Quality Assurance/Quality Control programme was part of the sampling programme for the Bisha work. Certified reference material (standards), duplicates and blank samples are systematically inserted into the flow of drill samples and results analysed on a batch by batch basis. This programme includes a chain of custody whereby Diamond drill core samples are initially crushed and subsampled at the Bisha Mine sample preparation facility and pulverised and analysed by ALS Chemex in Vancouver. Multi-element analysis is completed using ICP-AES methods; gold is analysed by fire assay with AAS finish. Reverse circulation drill samples are processed at the Bisha Mine on site laboratory, which is a member of the SGS group. Multi-element analysis is completed using AA methods with gold also analysed by fire assay. 

Cautionary Notes to Investors - Reserve and Resource Estimates

In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed or incorporated by reference in this news release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines"). The definitions of mineral reserves and mineral resources are set out in our disclosure of our mineral reserve and mineral resource estimates in our Annual Information Form.

The Company uses the terms "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". While those terms are recognized by Canadian securities regulatory authorities, they are not recognized by the United States Securities and Exchange Commission (the "SEC") and the SEC does not permit U.S. companies to disclose resources in their filings with the SEC.

Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered.

Forward Looking Statements

The above contains forward-looking statements or forward-looking information within the meaning of the United States Private Securities Litigation Reform Act of 1995, and applicable Canadian securities laws. Forward-looking statements are frequently, but not always, identified by words such as "expects," "anticipates," "believes," "intends," "estimated," "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 concerning the Company's current beliefs, plans and expectations about the future regarding the Company's continuing operations in Eritrea including but not limited to mineral resource and reserve estimates and future gold and copper production, all of which are inherently uncertain. The 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, the risks that: (i) any of the assumptions in the historical resource estimates turn out to be incorrect, incomplete, or flawed in any respect; (ii) the methodologies and models used to prepare the resource and reserve estimates either underestimate or overestimate the resources or reserves due to hidden or unknown conditions, (iii) exploration activities or the mine operations are disrupted or suspended due to acts of god, internal conflicts in the country of Eritrea, unforeseen government actions or other events; (iv) the Company experiences the loss of key personnel; (v) the Company's operations are adversely affected by other political or military, or terrorist activities; (vi) the Company becomes involved in any material disputes with any of its key business partners, lenders, suppliers or customers; (vii) the Company is subjected to any hostile takeover or other unsolicited attempts to acquire control of the Company; (viii) the Company is subject to any adverse ruling in any of the pending litigation to which it is a party; (ix) the Company incurs unanticipated costs as a result of the transition from the oxide phase of the Bisha mining operations to the copper phase in 2013; (x) the Company is unable to effectively manage the sulphide rich reactive ground as it affects blasting and continuous ore supply; (xi) the Company experiences a failure of drilling, processing and mining equipment; (xii) the Company is unable to achieve transport logistical efficiencies in the transportation of copper concentrate from the mine site to port; or (xiii) are associated with the speculative nature of mining activities, periodic interruptions to operations, failure of drilling, processing and mining equipment, the interpretation of drill results, changes to operations and project plans and parameters, obtaining extensions, or renewals to licenses, permits, concessions or consents from governmental authorities and other risks are more fully described in the Company's Management Discussion and Analysis for the fiscal year ended December 31, 2012, which is incorporated herein by reference.  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, except as required by law.  For the reasons set forth above, investors should not place undue reliance on the Company's forward-looking statements.

Please see the Company's Annual Information Form for the fiscal year ended December 31, 2012, and the Company's Management Discussion and Analysis for the year ended December 31, 2012, for a more complete discussion of the risk factors associated with our business.

About Nevsun Resources Ltd.

NEVSUN RESOURCES LTD.

Cliff T. Davis
President & Chief Executive Officer