War Eagle Mining Company Inc.

War Eagle Mining Company Inc.

March 04, 2010 09:30 ET

War Eagle Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2010) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) ("War Eagle" or the "Company") is pleased to provide an update on its business development strategy. The Company's recently announced assay results were very favourable and support a focus on zinc and lead resources. The Company plans to assess the feasibility of production at Tres Marias and investigate other zinc-lead properties that it could operate in conjunction with Tres Marias. War Eagle is adequately financed in the near term, with $925,000 in the treasury.

Tres Marias

As announced in a news release on February 17, 2010, War Eagle undertook a fieldwork program to assay the Tres Marias drill core, located in storage in Chihuahua, Mexico, and had the core assayed in January and February 2010. The assay program focused on mineralized drill intercepts in two areas of the Tres Marias property that had been recognized but not sampled due to the suspension of exploration activities in February 2009.

The assay results were very favourable and suggest that it may be possible to establish economically feasible mining operations. The Company plans to assess the viability of a limited mining program. This assessment will require that the Company formulate a mining plan and investigate processing options. In particular it will update the mine plans and sections as a precursor to establishing a mine development model.

The Company is aware of processing mills in the Tres Marias area, but has not quantified the cost of processing ore. The processing mill flow sheets would likely have to be adjusted to suit the Tres Marias type of sulphide ore and any oxide ore may need to be treated by a leaching process.

The Company will also develop the next steps of its exploration plan as it seeks to better understand the nature of the mineral structures before moving ahead with a 43-101 technical report. The objective of the program will be to determine if the high-grade mineralization that was recently outlined by the drill core sampling program can be reached from a short, accessible adit and decline, rather than hoisting the material to surface through the present shaft facilities. The Tres Marias property has further mineralization potential with additional targets identified within the 28 square kilometre project.

Complementary Zinc-Lead Resources

The Company is actively seeking zinc-lead resources that it can operate in conjunction with Tres Marias with a view to spreading costs over a broader base of activity and, ideally, sharing processing facilities.

Other Initiatives

As a result of War Eagle's focus on Tres Marias, it will seek a purchaser for its George's Lake gold property. As previously disclosed, the Company's arrangement with ELCOGAS to recover germanium from fly ash expired on November 17, 2009. The Company continues to work towards entering into a new arrangement with ELCOGAS with a view to recovering some benefit from its historical work. The Company does not intend to advance the research initiative as the estimated economic returns did not justify further investment by War Eagle.

About War Eagle

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

This news release was prepared by management of War Eagle, which takes full responsibility for its contents.

Legal Notice Regarding 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 future results, performance or achievements could differ materially from those expressed in these forward-looking statements will transpire. 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 references to a future drill program and related plans. 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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