War Eagle Mining Company Inc.

War Eagle Mining Company Inc.

August 27, 2010 12:37 ET

War Eagle Trading Status Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2010) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) ("War Eagle" or the "Company") wishes to provide an update regarding its trading halt on the TSX Venture Exchange (the "Exchange"). As previously announced on August 16, 2010, War Eagle has entered into a letter of intent with Andromeda Resources Inc. ("Andromeda") regarding a proposed transaction under which the shareholders of Andromeda will exchange all of the issued and outstanding common shares of Andromeda for common shares of War Eagle. This transaction will be a reverse takeover of War Eagle and, in accordance with Exchange policies, trading in the Company's shares has been halted.

Before trading in the Company's shares can resume on the Exchange, the Company must comply with applicable Exchange requirements, including filing a current National Instrument 43-101 ("43-101") Technical Report on Andromeda's optioned Terrazas property. In 2005, Constellation Copper Corporation, which had previously optioned the Terrazas property, prepared a 43-101 report. Andromeda is preparing a new 43-101 report to incorporate subsequent information and expects to complete this update in September 2010. War Eagle and Andromeda will file a draft copy of the 43-101 Technical Report with the Exchange as soon as it is available.

The Company expects that once it has met all necessary regulatory conditions, trading of the Company's shares will resume.

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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