War Eagle Mining Company Inc.

War Eagle Mining Company Inc.

April 24, 2008 10:30 ET

War Eagle Completes Successful First Phase Investigation Into the Recovery of Germanium and Gallium From Coal Flyash in Spain

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 24, 2008) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) today announces that it has successfully completed Phase 1 of a two-phase investigation into the recovery of germanium (Ge) and gallium (Ga) from flyash generated at the ELCOGAS S.A. Puertollano power plant in Spain.

Phase 1 consisted of a structured programme of analytical and laboratory processing test work carried out on selected samples of flyash by three of Spain's leading research organisations who have experience in various aspects of research on Germanium in flyash and have a combined expertise equal to any in the world:

AICIA (Andalussian Association for Research and Industrial Cooperation) through the Chemical and Environmental Engineering Department of the University of Seville, CSIC/IJA (Institute of Earth Sciences 'Jaume Almera', Spanish Research Council) which is a large research organisation based on the campus of Barcelona University, and the University of Barcelona, Department of Materials Science and Metallurgical Engineering.

Phase 1 concentrated on leaching mechanisms and the results are impressive. A weak acid solution recovered up to 83% of the germanium from flyash samples over a two hour leach period. At current germanium prices the average value of this metal in solution would be around US$275 per tonne flyash. A weak alkaline solution recovered rather less germanium, but up to 76% of gallium over a six hour leach period and the average value of the metal in solution was well over US$300 per tonne flyash. Phase 1 has shown conclusively that germanium and gallium can be recovered from the flyash and that a feasibility study is fully warranted.

Phase 2 will be a feasibility study covering the whole process of metal leaching and recovery, and on a larger scale than previously. It will include a programme of pilot plant test work, to be carried out at the Chemical and Environmental Engineering Department of the University of Seville, designed to optimise the metal recovery methods, provide a flow sheet for a full-scale processing plant and firm up the economic estimates. It will also establish whether the leached fly ash will be suitable for use in the construction industry. Phase 2 is scheduled to take 3 months.

The ELCOGAS operation at Puertollano is a coal gasification thermal power plant that was supported by the European Union to facilitate clean energy production from coal and is the largest single train IGCC plant in the world. It currently produces some 12,000 tonnes of fly ash per year and the output could increase to 15,000 tonnes.

ELCOGAS holds an international patent on the recovery of metals from the fly ash and will grant War Eagle permission to use part or all of their patented procedures for recovering germanium and gallium. Following success in Phase 2, War Eagle will provide ELCOGAS with a detailed technical and economic proposal for a processing plant to be built on ELCOGAS property and intends to form a long-term agreement with ELCOGAS for the supply of fly ash.

Germanium and gallium are exciting speciality metals used in modern industrial products such as infrared night vision systems, LED (light-emitting diode) lights, fibre optics and the semiconductors and PET for plastic bottles as well as Argentum silver. Germanium is obtained primarily as a by-product of zinc smelting and gallium as a by-product of bauxite treatment.

Flyash is potentially a very large resource of germanium, gallium and other metallic elements. It is generated in coal-fired power stations at the rate of over 100 million tonnes per year, of which around 40% is used in the construction industry and the rest dumped. Dumped flyash, including that pre-dating environmental concerns, exists in many parts of the world and probably totals several hundred million tonnes. Given success at Puertollano, it is War Eagle's intention to apply this expertise to other flyash deposits world-wide.

War Eagle Mining Company Inc.

War Eagle Mining Company Inc. is an experienced mineral exploration company publicly traded since 1987 and is listed on the TSX Venture Exchange under the symbol WAR. The company is in the exploration and development phase of the Tres Marias Germanium and Zinc Mine in Mexico. The Tres Marias is a former producing high-grade germanium and zinc mine that first produced ore in 1949.

The Project is under the direction of Mr. Terence Schorn, P. Geo., the qualified person pursuant to the National Instrument 43-101.

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.

In addition there are risks and uncertainties associated with mining operations, therefore the Company's actual results, performance or achievements could differ materially from those expressed in or implied by these forward-looking statements. There can be no assurance that any future events will transpire, or occur, or if any of them do so, what benefits, including the amounts of proceeds, the Company will derive therefrom. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

CUSIP. No. 933901209

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of the contents of the foregoing.

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