War Eagle Mining Company Inc.
TSX VENTURE : WAR

War Eagle Mining Company Inc.

November 06, 2007 11:00 ET

War Eagle Signs a Letter of Intent With the World's Largest Coal Gasification Thermal Power Plant to Recover Germanium and Gallium

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 6, 2007) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) today announces that it has signed a Letter of Intent (LOI) with ELCOGAS SA of Spain regarding the testing of fly ash from its Puertollano power plant with the aim of recovering germanium (Ge) and gallium (Ga).

The Puertollano IGCC plant is a coal gasification thermal power plant that was supported by the European Union to facilitate clean energy production from coal. This is the largest single train IGCC plant in the world and achieves a net efficiency of 42%, around 10% higher than that produced by conventional thermal power plants. The plant currently produces some 12,000 tonnes of fly ash per year and the output might increase to 15,000 tonnes.

Some points regarding the LOI are:

1. 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.

2. War Eagle will fund a programme of testing and research with scientific teams at two of Spain's renowned universities, the University of Barcelona and the University of Seville, who have been closely involved with ELCOGAS in developing the recovery process.

3. The test work is scheduled over a period of 18 months, culminating in a full feasibility study using the existing pilot plant designed for germanium and gallium recovery at the University of Seville.

Following a successful test work programme, War Eagle will provide ELCOGAS with a detailed technical and economic proposal for a processing plant to be built on ELCOGAS property and would form a long-term agreement with ELCOGAS for the supply of fly ash.

Mr. Terry Schorn, President of War Eagle, said, "We are pleased to work with a world class organization like ELCOGAS and we look forward to a long term partnership. We intend to immediately begin metallurgy and additional research, testing for the presence of germanium and other elements in the Puertollano fly ash. Although a maximum of 18 months has been allowed for the test work and full feasibility study, we anticipate completion in a much shorter period. If the results prove to be commercially viable, we will enter into a Definitive Agreement to proceed with the construction of a production plant."

About War Eagle Mining:

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.

About ELCOGAS

ELCOGAS was formed in 1992 to carry out the construction, operation and marketing of the Integrated Gasification Combined Cycle (IGCC) Power Plant in Puertollano, Spain. It is the largest (IGCC) power plant in the world. This facility has an electrical output of 317.7 MW, is in commercial operation running on natural gas (raw) since 1996 and with coal gas (IGCC) since 1998. With support from the European Commission through the Program Thermie and based on European technology, the plant has established itself as an electricity producer, reaching a level of reliability in the operation demonstrating the maturity of this technology for the clean use of coal, and enables the operational experience gained by the company for future development of IGCC technology.

Terence F. Schorn, P. Geo., President

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. 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.

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