Gold Eagle Mines Ltd.

Gold Eagle Mines Ltd.

March 28, 2007 16:21 ET

Gold Eagle Mines Ltd. Announces CDN$80 Million Bought Deal of Common Shares

TORONTO, ONTARIO--(CCNMatthews - March 28, 2007) -


Gold Eagle Mines Ltd. (TSX:GEA) ("Gold Eagle" or the "Company") announced today that it has entered into a bought deal agreement with a syndicate of underwriters led by Orion Securities Inc. Under the agreement, the syndicate will purchase 8,900,000 common shares ("Common Shares") of the Company at a price of CDN$9.00 per Common Share ("the Offering Price") for gross proceeds of CDN$80,100,000. The Company will grant the Underwriters an over-allotment option, to purchase up to an additional 1,335,000 Common Shares (CDN$12,015,000), exercisable at the Offering Price up until the 30th day following the Closing Date. The Company expects to file a Preliminary Short Form Prospectus with the applicable securities regulatory authorities to qualify the Common Shares for distribution on April 3rd, 2007.

The net proceeds of the offering will be used for the continued exploration of Gold Eagle's Bruce Channel Discovery and to commence the Regional Exploration Program.

The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals. The offering is expected to close on or about April 24th, 2007.

The securities offered have not been registered under the U.S. Securities Act of 1933 (the "1933 Act"), as amended and may not be offered or sold in the United States except pursuant to available exemptions from the registration requirements of the 1933 Act and applicable blue-sky laws and as are agreed to by the Company and the underwriters. This release does not constitute an offer for sale of securities in the United States.

About Gold Eagle

Gold Eagle Mines Ltd is a Canadian based junior natural resource company developing a significant new gold discovery in the prolific Red Lake gold camp, located in Northern Ontario, Canada.

Forward-Looking Statement

The statements made in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Gold Eagle's filings with Canadian securities regulators available on or the Company's website at

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