Silver Eagle Mines Inc.
TSX : SEG

Silver Eagle Mines Inc.

June 06, 2006 14:52 ET

Silver Eagle Mines Inc.: New Drill Results, Miguel Auza Silver Property, Mexico

TORONTO, ONTARIO--(CCNMatthews - June 6, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Silver Eagle Mines Inc. ("Silver Eagle")(TSX:SEG) is pleased to present assay results from the ongoing diamond drilling program on its 80%-owned Miguel Auza property in Zacatecas, Mexico. Within the 27,575 hectare (68,140 acres) property, the 2 km square Miguel Auza Project contains 13 known veins, which are currently being drilled. Principal known structures on the property are the Calvario silver-base metal vein, the northerly-inclined Northern Veins and the Mill Area veins. The Calvario and Northern Veins are the principal veins and have returned bonanza grade silver results (commonly in excess of 1,000 g/t), while the Mill Area Veins are characterized by higher lead and zinc grades with lower precious metal grades. Silver-bearing veins have been mined discontinuously on the property over the past 450 years; the lowest workings were on the 140 metre level and remain open to depth. No modern exploration had been conducted prior to acquisition of the property by Silver Eagle in 2003.

The most recent drill results are tracing the Northern Veins and Mill Area Veins. The highest silver grades tend to be in the Northern Veins including Hole 2006-47 which intersected 748.1 g/t Ag, 0.62% Pb, 0.55% Zn and 0.18 g/t Au over 13.15 metres and represents a significant extension of the Northern Veins to the east. This hole is east of the previously drilled hole CN2005-01, which intersected 7,601 g/t Ag, 3.35% Pb, 1.90% Zn and 0.04 g/t Au and 7,378 g/t Ag, 4.2% Pb, 5.34% Zn and 0.28 g/t Au over 0.40 metres and 0.50 metres respectively.

"These encouraging results confirm the continuity and grade of the veins that we expected to find on the Northern Veins. Drilling continues on the project with two drill rigs as we continue to execute our current 10,000 metre drill program", stated CEO Terry Byberg.

A 9768 metre, 48 hole diamond drill campaign was initiated in 2005, directed towards establishing a mineral resource on the Calvario vein. This program culminated in an indicated resource of 3.2 million silver equivalent ounces (186,000 tonnes grading 530 grams per tonne silver equivalent including 0.31 gm/tonne gold, 243 gm/tonne silver, 2.53% lead and 2.86% zinc) and an inferred resource of 9.4 million silver equivalent ounces (740,000 tonnes grading 397 grams per tonne silver equivalent including 0.18 gm/tonne gold, 150 gm/tonne silver, 2.49% lead and 2.34% zinc). Equivalent silver ounces are based on $US 450/oz Au, $US 7.00/oz Ag, $US 0.40/lb Pb and $US 0.60/lb Zn. The NI 43-101 technical report on the Miguel Auza property, prepared by Wayne Valliant P.Geo., dated March 8, 2006 and revised April 30, 2006, can be viewed in its entirety at www.sedar.com or by accessing the Company web site at www.silvereaglemines.com. The assay results presented below are not included in the resource calculation and the majority were received subsequent to publication of the Valliant report. Vein true widths have not been calculated at this time. See attached map for drill hole locations.



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Drill Zone From To Core Au Ag Pb Zn
Hole (m) (m) Length(m) gpt(a) gpt(a) % %
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CN2005 North 180.35 180.75 0.40 0.04 7601.10 3.35 1.90
-01 Zone
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184.15 184.65 0.50 0.28 7377.90 4.72 5.34
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255.55 255.95 0.40 0.55 765.20 0.24 0.03
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260.95 263.35 2.40 0.07 318.50 0.01 0.04
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356.40 356.65 0.25 0.14 1511.60 20.85 12.52
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CN2006 North 114.45 115.30 0.85(b) 1.05 362.80 0.40 0.61
-27 Zone
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Including 114.45 114.65 0.20 2.48 1220.00 1.03 2.06
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C2006- North 172.65 173.10 0.45 1.80 349.70 0.85 1.03
33 Zone
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Including 172.65 172.80 0.15 2.23 869.00 2.01 2.20
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190.30 191.05 0.75 0.60 1034.50 1.89 1.02
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Including 190.30 190.50 0.20 1.82 3720.00 6.37 3.78
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277.20 277.50 0.30 0.30 444.00 0.19 0.06
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C2006- North 288.75 290.40 1.65 0.10 130.60 0.13 0.02
35 Zone
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C2006- North 219.60 225.35 5.75 1.00 171.90 1.55 1.26
43 Zone
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Including 219.60 220.15 0.55 2.82 799.00 4.00 4.17
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And 223.80 224.35 0.55 1.02 464.00 5.63 4.41
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C2006- North 128.45 141.60 13.15 0.18 748.10 0.62 0.55
47 Zone
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Including 128.45 130.25 1.80 0.32 648.10 0.34 0.28
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less
than
And 131.55 132.35 0.80 0.05 5220.00 4.20 3.05
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And 132.60 133.50 0.90 0.57 3120.00 2.52 1.21
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And 136.65 138.40 1.75 0.10 390.90 0.58 0.71
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And 140.15 141.60 1.45 0.27 510.90 0.37 1.04
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(a) Grams per metric tonne.

(b) Drill intercept in hole CN2006-27 was a partial intercept, as
this hole encountered and was terminated at previous
underground workings.


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Drill Zone From To Core Au Ag Pb Zn
Hole (m) (m) Length(m) gpt(a) gpt(a) % %
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2005- Calvario 175.55 177.55 2.00 0.18 334.25 4.39 3.32
20
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Drill Zone From To Core Au Ag Pb Zn
Hole (m) (m) Length(m) gpt(a) gpt(a) % %
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2006-34 Mill 206.35 214.15 7.80 0.36 68.80 1.74 1.61
Zone
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Including 211.60 214.15 2.55 0.45 146.90 3.90 2.80
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2006-36 Mill No significant results
Zone
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2006-37 Mill 71.05 71.85 0.80 0.24 93.00 1.10 1.22
Zone
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2006-38 Mill 58.70 61.20 2.50 1.72 32.54 0.22 0.24
Zone
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Including 58.70 59.60 0.90 3.04 55.00 0.06 0.38
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2006-39 Mill 88.15 88.85 0.70 0.51 114.00 2.81 2.93
Zone
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95.70 97.30 1.60 1.15 327.30 4.72 3.16
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2006-41 Mill 97.00 98.05 1.05 2.27 60.00 1.24 2.51
Zone
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2006-42 Mill 148.30 149.00 0.70 1.76 170.00 4.10 1.80
Zone
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2006-44 Mill 91.25 93.70 2.45 0.53 43.43 0.87 0.79
Zone
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Including 91.25 91.50 0.25 1.70 122.00 0.34 0.46
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And 93.00 93.70 0.70 1.04 108.43 2.83 2.53
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2006-45 Mill 137.90 139.90 2.00 0.53 29.58 1.77 1.64
Zone
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138.45 139.25 0.80 0.72 50.00 3.40 2.47
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138.45 138.65 0.20 0.59 69.00 7.28 4.82
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2006-49 Mill 105.10 105.60 0.50 1.96 41.00 0.66 1.35
Zone
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(a) Grams per metric tonne.


Drill core is cut longitudinally on site by diamond saw and one half is submitted for assay. Assay samples from the first four listed drill holes were prepared at SGS Lakefield laboratory in Durango, Mexico and assayed at SGS Canada Inc. laboratory in Toronto, Ontario. Assay samples from the remaining holes were prepared at ALS Laboratories Ltd. facility in Chihuahua, Mexico and assayed at ALS Laboratories Ltd., North Vancouver, British Columbia. In addition to the standard laboratory quality control measures (systematic insertion of standard samples, duplicate samples and blanks), Silver Eagle routinely re-cuts and quarters one sample in 20 and resubmits each with different sample numbers to confirm both laboratory reliability and sample homogeneity.

The Qualified Person for Silver Eagle Mines Inc. on the Miguel Auza project is Dr. Christopher Hodgson, P. Eng., with over 35 years experience in the minerals industry.

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 releases 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.

To view a map of the Miguel Auza Property in Zacatecas, Mexico please click on the following link:

http://www.ccnmatthews.com/docs/segmap.pdf

ON BEHALF OF THE BOARD OF DIRECTORS OF SILVER EAGLES 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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