• Commercial production achieved on schedule and under budget
• Producing over 1,000 ounces per day
• Produced 40,000 ounces of gold to date
• Recoveries higher than expected

Nevsun Resources Ltd.(TSX:NSU / NYSE Amex:NSU) is very pleased to announce that the Bisha Mine in Eritrea has reached commercial production.  Commercial production marks the completion of project development, commissioning and operational ramp-up of the mine and processing plant.  The operation is currently producing gold at a rate in excess of 1,000 ounces per day.               

The commissioning of the plant commenced in late October, with first gold pour in late December and a progressive ramp up thereafter.  Plant throughput averaged approximately 5,250 tonnes per day over the last 30 days, with a peak of 6,560 tonnes per day, well above schedule.  Recoveries are also higher than planned, averaging 89% over the last 30 days.  During the commissioning phase, Bisha has produced approximately 40,000 ounces of gold.

Nevsun’s President Cliff Davis states “We are very pleased to bring this spectacular deposit into production and under budget.  Our success can be attributed to our staff, contractors and the unwavering support of the Government of Eritrea.  The State has understood from the beginning that responsible development of the mining industry has the potential to be a significant economic catalyst to the State of Eritrea over the next several years.”

Commercial production was defined as >90% of planned throughput and >90% of planned recoveries for a period of >30 days.

As announced in the Company’s news release dated January 27, 2011, the Company’s independent engineer is currently working on a re-statement of reserves for the Bisha deposit and anticipates this will be available before the end of this quarter.

Forward Looking Statements: The above contains forward-looking statements concerning development progress, planned mine output 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