signature=49f81afbb172d447218c0dd8b4e715c0,Filed by Avantafile.com - Nevsun Resources Ltd.

Filed by Avantafile.com - Nevsun Resources Ltd. - Exhibit 99.1

N E W S R E L E A S E

October 10, 2012

Nevsun Closes Acquisition

of Mogoraib Exploration License Near Bisha Mine

HIGHLIGHTS

Acquisition agreement announced August 1, 2012 now closed

Exploration license 97.4 square kilometers

Includes the historic copper-zinc resources at the Hambok deposit

Hambok has open pit potential 16 km southwest of Bisha processing

plant

Nevsun Resources Ltd. (TSX: NSU / NYSE MKT:

NSU) (“Nevsun”) today is pleased to announce that the Bisha Mining Share Company

(“Bisha”), a 60% owned subsidiary of Nevsun, has closed its previously

announced agreement to acquire the Mogoraib River exploration license in

Eritrea. Pursuant to the Agreement announced August 1, 2012, Bisha has paid Sanu

Resources, a subsidiary of NGEx Resources Inc. of Vancouver, US$5 million.

Nevsun CEO Cliff Davis commented: “Bisha is

commencing a strategic review of regional exploration potential that as a

minimum will include further work on the historic resources at Hambok. In

addition to the Mogoraib license, Bisha also plans to apply for further exploration

area contiguous to the Bisha Mine to support a regional generative exploration

program. We believe the Bisha region has excellent potential for the discovery

of additional VMS deposits.”

The Mogoraib license is 97.4 square

kilometers in area and includes the Hambok copper-zinc deposit. The Hambok

deposit is located 16 km southwest of the Bisha Mine (Figure 1). The Company believes

that the Hambok deposit is potential additional feed for the Bisha plant. If

additional exploration is successful and reserves are identified, then Bisha

may consider increasing plant capacity when it adds a zinc flotation plant to the

copper plant in 2015 or 2016.

A historical resource estimate for Hambok (see

Table 1) was filed in a NI 43-101 technical report on March 27, 2009 by Sanu

Resources Ltd. A qualified person has not done sufficient work to classify the

historical estimate as current mineral resources or mineral reserves and the

Company is not treating the historical estimate as current mineral resources or

mineral reserves.

Table

1: Historic Hambok Resource Estimate within the Mineralized Shell

[Source: NI 43-101 Technical Report, Effective January 23, 2009 (1)]

Indicated

Cut-off

Zn % Grade

> Cut-off

Tonnes

Cut-off

(%)

Zn(%)

(g/t)

0.75

10,700,000

0.98

2.25

0.20

6.84

2.00

5,100,000

1.12

3.24

0.21

7.81

Inferred

Cut-off

Zn % Grade

> Cut-off

Tonnes

Cut-off

(%)

Zn(%)

(g/t)

0.75

17,000,000

0.85

1.74

0.19

5.89

2.00

5,100,000

0.96

2.81

0.19

6.20

1. The historic mineral resources estimate

set out in the table above have been extracted from NI 43-101 technical report

dated January 23, 2009, by Messrs. G. H. Giroux, P Eng. and C. Tucker Barrie,

P.Geo., who are qualified persons under NI 43-101. Assumptions in the NI 43-101

report included: (i) metals prices – Cu at $1.30/lb; Zn at $0.79/lb; Au at

$675/oz; Ag at $10/oz; (ii) recoveries – Cu at 85%; Zn at 84%; Au at 36%; Ag at

29%, however no metallurgical test work had been performed.

Details and additional notes can be found in

the Hambok Technical report filed March 27, 2009 on SEDAR www.sedar.com

under Sanu Resources Ltd.

Figure 1 – Map of Mogoraib License and Bisha Area

Forward Looking Statements

The

above contains forward-looking statements regarding potential exploration

results, expansion of the Bisha mill, historical estimated grade and estimated

mineral resources and potential for mining such economically unproven resources.

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.

Information concerning the interpretation of drill results and mineral resource

and reserve estimates also may be deemed to be forward-looking statements, as

such information constitutes a prediction of what mineralization might be found

to be present if and when a project is actually developed. 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, 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) the mine operations are disrupted or suspended due to

acts of god, internal conflicts in the country of Eritrea, or unforeseen

government actions; (iv) the Company experiences the loss of key personnel; (v)

the mine 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; or (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. Other risks are more fully described in the Company’s most

recent Management Discussion and Analysis, 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 forward-looking statements.

Please

see the Company’s Annual Information Form for the fiscal year ended December

31, 2011 and the Company’s Management Discussion and Analysis for the quarter

ended June 30, 2012 for a more complete discussion of the

risk factors associated with our business.

About

Nevsun Resources Ltd.

Nevsun Resources Ltd. is a Vancouver-based

mining company with an operating mine in Eritrea. Nevsun’s 60%-owned Bisha Mine

commenced gold production in February 2011 and is scheduled to transition to

copper/gold production in 2013. Management expects the Bisha Mine will rank as

one of the highest grade open pit base metal deposits in the world.

NEVSUN

RESOURCES LTD.

“Cliff

T. Davis”

Cliff T.

Davis

President & Chief Executive Officer

For

further information, Contact:

Kin Communications

Tel: 604 684 6730

Toll free: 1 866 684 6730

Email: nsu@kincommunications.com

Website:

signature=49f81afbb172d447218c0dd8b4e715c0,Filed by Avantafile.com - Nevsun Resources Ltd. - Form 6-...