War Eagle Mining Company Inc.

War Eagle Mining Company Inc.

October 18, 2007 10:00 ET

War Eagle Mining Company Inc.: $4,000,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2007) - War Eagle Mining Company Inc. (the "Company") (TSX VENTURE:WAR) is pleased to announce its intention to raise up to $4,000,000 by way of a non-brokered private placement of a maximum 8 million units (the "Unit") of the "Company" at $0.50 per Unit. Each Unit is to consist of one common share and one half of one common share purchase warrant (the "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.75 for a period of 18 months from the date of issue.

The offering remains subject to the approval of the TSX Venture Exchange.

The Company may pay a finder's fee, payable in cash and/or securities to certain entities in connection with introductions of investors made by the finders, such finder's fees to be paid in accordance with TSXV policies.

An institutional shareholder with a significant number of shares has expressed interest in purchasing its pro rata share of the proposed private placement.

The net proceeds from the private placement will be used for General Administration and further development of the Company's Tres Marias project located in Mexico.

War Eagle Mining Company Inc. trades on the TSX-V exchange under the symbol WAR.

Terence F. Schorn, P. Geo, President

War Eagle Mining Company Inc.

Forward Looking Statements

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 will transpire, or occur, or if any of them do so, what benefits, including the amounts of proceeds which 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 include future pricing trends of Ge metal, completion and production timetables. These statements are based on assumptions made by the company based on its experience 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.

Contact Information

  • War Eagle Mining Company Inc.
    Bob Faris
    Vice President, Corporate Development
    1-800-877-1626 or (604) 606-7973
    War Eagle Mining Company Inc.
    Steve McGuire
    1-800-877-1626 or (604) 606-7973
    Email: info@wareaglemining.com
    Website: www.wareaglemining.com