RAB Special Situations L.P.

War Eagle Mining Company Inc.

War Eagle Mining Company Inc.

April 08, 2005 15:13 ET

RAB Special Situations L.P./War Eagle Mining Company Inc.-Announcement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RAB SPECIAL SITUATIONS L.P.

AND WAR EAGLE MINING COMPANY INC.

TSX VENTURE SYMBOL: WEM

APRIL 8, 2005 - 15:13 ET

RAB Special Situations L.P./War Eagle Mining Company
Inc.-Announcement

LONDON, UNITED KINGDOM--(CCNMatthews - April 8, 2005) - RAB Special
Situations L.P. ("Special Situations") announces that it has subscribed
for a total of 2,000,000 units (the "Units") of War Eagle Mining Company
Inc. (the "Company") (TSX-VENTURE:WEM), at a price of Cdn.$0.20 per
Unit. Each Unit consists of one (1) common share in the share capital of
the Company (a "Share") and one (1) transferable Share purchase warrant
(a "Warrant"). Each one (1) whole Warrant shall entitle Special
Situations to purchase one (1) Share ("Warrant Share") at a price of
$0.30 per Warrant Share for a period of one (1) year from the date of
issuance of the Warrants. The transaction took place off the market by
way of private placement and closed on April 4, 2005.

Special Situations has ownership of and control over the securities
purchased in the Private Placement. The purchased securities represent
approximately 21.56% of the issued and outstanding Shares on a partially
diluted basis (assuming exercise of the Warrants) ("Partially Diluted
Basis").

Immediately after the Private Placement, Special Situations owned
2,000,000 Shares and 2,000,000 Warrants, representing approximately
21.56% of the issued and outstanding Shares on a Partially Diluted Basis.

Special Situations purchased securities for investment purposes only and
not with the purpose of influencing the control or direction of the
Company. Special Situations together with joint actors, if any, may,
subject to market conditions, make additional investments in or
dispositions of securities of the Company in the future, including
additional purchases of Shares. However, Special Situations and its
joint actors, if any, do not intend to acquire 20% or more of any class
of the outstanding voting or equity securities of the Company.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    RAB Special Situations L.P.
    Mr. Neil Warrender
    (44) 20-7389-7000
    nw@rabcap.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.