Silver Eagle Mines Inc.
TSX : SEG

Silver Eagle Mines Inc.

January 11, 2007 11:26 ET

Silver Eagle Commences Processing of Bulk Sample

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2007) - Silver Eagle Mines Inc. ("Silver Eagle") (TSX:SEG) is pleased to announce the commencement of the processing of a bulk sample through the mill at its 100% owned Miguel Auza Mine located in Zacatecas, Mexico. The processing of this material will facilitate the testing and optimization of the mill circuit and metal recoveries. The bulk sample processing will result in the Company's initial production of concentrates containing silver, lead, zinc and gold. Mineralized material for this test work will be derived both from existing stockpiles and from ongoing underground development and stoping on three veins. The veins encountered underground contain both oxide and sulphide material and the Company continues to work closely with its metallurgical consultant, Godfrey MacDonald and SGS Lakefield of Peterborough, Ontario to further optimize metal recoveries.

Separately, Silver Eagle reports the departure of Chief Operating Officer, Michael Neumann, who has resigned his COO position for personal reasons, but remains on the Board of Directors of Silver Eagle. Operations in Mexico will now be the responsibility of Rodolfo Balderrama, who has been hired as General Director of Operations. Mr. Balderrama brings significant experience in the Mexican mining industry, having worked most recently as Project Evaluation Manager for Grupo Mexico's Southern Copper Corporation subsidiary. Mr. Balderrama has worked in increasingly senior capacities for various subsidiaries of Grupo Mexico for the past 15 years and holds a Bachelors degree in Mining and Metallurgy from Universidad Autonoma de Chihuahua.

In addition, Silver Eagle has hired Mr. Vladimiro Nettel as General Financial Controller, Mexico, for its 100% owned subsidiary San Pedro Resources S.A. de C.V. Mr. Nettel has spent the last 35 years working in senior financial capacities for the Mexican subsidiaries of various mining companies, including a number of Canadian companies.

Chief Executive Officer, Terry Byberg commented, "With the start up of our mill, Silver Eagle has achieved another significant milestone. We thank Mike Neumann for his contributions in moving the Miguel Auza Project to this point. We are very pleased to gain such a qualified operations executive in Rodolfo Balderrama to take over responsibility for our Mexican operations. The addition of both Rodolfo and Vladimiro greatly bolsters our management strength on the ground in Mexico and I am very pleased to welcome them to the Silver Eagle team. "

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

ON BEHALF OF THE BOARD OF DIRECTORS OF SILVER EAGLE MINES INC.

"Terrence H. Byberg", President and CEO

(The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.)

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