Filed by Filing Services Canada Inc. 403 717-3898

This is the form of a material change report required under section 85(1) of the Securities Act (British Columbia) and under section 75(2) of the Securities Act (Ontario).

BC FORM 53-901F
(Previously Form 27)

SECURITIES ACT

MATERIAL CHANGE REPORT UNDER SECTION 85(1) OF THE SECURITIES ACT (BRITISH COLUMBIA) AND UNDER SECTION 75(2) OF THE SECURITIES ACT (ONTARIO)

Nevsun Resources Ltd. (the “Company”)
Suite 800 - 1075 West Georgia Street
Vancouver, BC V6E 3C9

The press release was issued on July 26, 2004 and was disseminated by CCN Matthews, Canada Stockwatch and Market News.

Nevsun Resources Ltd. (NSU/TSX) announces further assay results from Diamond Drill Holes B-281 to B-299 from its 90% owned Bisha volcanogenic massive sulphide project in Eritrea.

These results represent part of the recently completed in-fill drill program at Bisha. Results continue to outline significant high grade intercepts in the gold bearing oxide, supergene copper and primary sulphide zones of the deposit. Nevsun focused the current drill program on the full delineation of the gold bearing oxide and supergene copper bearing massive sulphides over 1200 meters of strike length of the Bisha Main deposit with in-fill drilling on 25 meter sections. This will allow for the planning of a feasibility evaluation of the near surface horizons (gold bearing oxides to a typical vertical depth from surface to 35meters, copper bearing supergene from a depth of 35 meters to approximately 65meters, and zinc bearing primary sulphides below 65meters.). The mining of these near surface high grade gold, high grade copper and high grade zinc horizons will be able to be conducted with a minimum of overburden stripping. In the southern portion of the Bisha Main deposit the primary mineralization is open to depth and has been drill tested in the vicinity of line 1715500 to a depth of 375 meters.

Assay results from drill holes at the Bisha Main Zone are listed below by mineral zones: Oxide, Supergene sulphides, Primary sulphides. Zinc enriched sections have been averaged using a 2.0% lower cut-off and a 30% upper cut-off. (See drill plan map at end of release).

Hole #	From	To	Length (m)	Au g/t	Ag g/t	Cu %	Pb %	Zn %	Dip Collar	Section
Oxide
B-281	51.75	60.0	8.25	33.25	195.35	0.13	4.18	0.04	-45	1716125
B-284	0.0	61.0	61.0	7.73	14.14	0.18	0.67	0.04	-55	1716175
B-293	6.0	34.5	28.5	1.27	4.68	0.08	0.13	0.07	-45	1716025
B-295	30.5	43.5	13.0	6.17	38.89	0.09	0.81	0.08	-45	1716000
B-296	33.0	43.75	10.75	3.37	7.77	0.07	0.46	0.09
B-297	2.1	48.0	45.9	5.21	24.05	0.19	0.84	0.11	-45	1716050
B-298	33.0	49.5	16.5	2.54	28.18	0.02	0.83	0.02	-50	1715375
B-299	0.0	36.0	36.0	11.26	18.66	0.82	0.42	0.07	-65	1716075
Supergene
B-281	63.0	121.0	58.0	1.03	34.40	4.87	0.07	0.08	-45	1716125
B-283	58.7	72.0	13.3	0.02	0.61	1.04	0.01	0.03	-50	1715825
B-284	62.5	98.55	35.95	0.91	28.75	6.36	0.05	0.03	-55	1716175
B-285	57.3	73.1	15.8	0.81	49.61	15.54	0.23	0.05	-45	1715850
and	73.1	83.25	10.15	0.01	0.94	1.30	0.01	0.04
B-286	84.5	95.35	10.85	0.79	33.53	1.19	0.12	0.22	--50	1715875
B-287	82.5	91.0	8.5	0.99	31.4	6.07	0.21	0.04	-45	1715900
B-288	63.0	65.5	2.5	0.01	0.50	0.90	0.01	0.02	-53	1716075
B-289	57.5	65.0	7.5	0.02	1.2	1.01	0.02	0.02	-45	1715925
and	72.5	89.5	17.5	0.70	43.04	9.92	0.36	0.05
B-290	97.5	107.5	10.0	1.16	56.75	0.93	0.38	4.62	-45	1715925
B-291	68.5	76.5	8.0	0.01	0.65	0.74	0.01	0.04	-50	1715975
B-292	59.6	82.6	23.0	0.65	40.03	9.30	0.36	0.04	-45	1715950
B-294	49.5	70.5	21.0	0.61	56.43	11.79	0.45	0.05	-50	1715975
B-295	45.0	47.7	2.7	1.96	115.22	0.06	0.39	0.08	-45	1716000
and	47.7	56.5	8.8	0.42	14.60	1.54	0.01	0.02
B-296	43.75	52.0	8.25	33.17	903.45	0.03	2.09	0.02	-50	1715375
and	52.0	67.0	15.0	0.69	24.24	2.04	0.03	0.02
B-298	49.5	69.0	19.5	1.34	74.24	3.45	0.40	0.16	-50	1715375
B-299	36.0	42.0	6.0	34.86	64.47	0.0	1.01	0.01	-65	1716075
and	82.5	89.5	7.0	0.10	40.41	1.32	0.39	0.28
Primary
B-284	104.5	110.5	6.0	0.63	15.25	0.60	0.01	0.58	-55	1716175
B-294	70.5	80.2	9.7	0.53	8.24	1.33	0.01	0.02	-50	1715975
B-296	79.0	81.75	2.75	0.71	7.56	1.46	0.0	0.04	-50	1715375
B-298	93.5	102.8	9.3	0.30	11.52	1.10	0.0	0.24	-50	1715375

Hole B-283 intersected both oxide and supergene copper mineralization that averaged 0.81% Cu over 4.5 meters and 1.04% Cu over 13.3meters.

As the deposit becomes more defined it has become apparent that there are a number of mineralized domains that need to be separated out. The most obvious is a significant gold bearing sulphide zone that seems to be present just below the oxide/sulphide interface. Hole B-299 which averaged 34.9g/t Au over 6.0 meters is an example of this style of mineralization. A second style of mineralization that will likely have some economic impact on the deposit is a copper only bearing zone that is usually associated with acidified rocks. Examples of this style of mineralization include Hole B-87 that intersected 31.5 meters

averaging 1.44% Cu. It is suspected that there is a direct relationship of this mineralization type to proximal massive sulphides.

A block model based on all drilling completed to date is currently being formulated for the initial 1.2 kilometers of strike length of the Bisha structure. This will be verified by AMEC who will generate a resource calculation for the Bisha deposit over the next few months. Work required for an environmental baseline study is ongoing.

Bill Nielsen, Vice-President of Exploration for Nevsun, a qualified person under National Instrument 43-101, supervised and directed all work associated with the drilling program.

Nevsun implemented a QA/QC program, consisting of certified standards, for the drill program. The analytical methods used for gold and silver are fire assay with atomic absorption or gravimetric finish. Induced Coupled Plasma (ICP) is used for silver trace level values. The analytical methods used for the base metals are aqua-regia digestion and atomic absorption finish or ICP for trace level values. Sample preparation and analysis were conducted at ALS Chemex of Vancouver, Canada.

Nevsun Resources Ltd. further announces that it has completed a settlement of all remaining obligations that originated with the 2002 purchase of the Segala property in Mali. The Company has issued 1,420,000 common shares to settle the final US$4,000,000 of the original US$9,000,000 purchase from Semafo Inc (SMF/TSX).

Forward Looking Statements: The above contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world gold markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.