Silver Eagle Mines Inc.
TSX : SEG

Silver Eagle Mines Inc.

April 25, 2007 19:56 ET

Silver Eagle Announces Proposed Financing

TORONTO, ONTARIO--(CCNMatthews - April 25, 2007) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Silver Eagle Mines Inc. ("Silver Eagle") (TSX:SEG) announced today that it has filed a preliminary short form prospectus with the securities regulatory authorities in each of the provinces of Canada, except for Quebec, in connection with a new offering of units (the "Units").

The Company has entered into an agreement (the "Agreement") with Cormark Securities Inc. and Blackmont Capital Inc., as co-lead agents, (together with TD Securities Inc. and Fraser Mackenzie Limited, the "Agents") to offer for sale on a marketed basis Units of Silver Eagle (the "Offering"). Pursuant to the terms of the Agreement, each of the Units are to be comprised of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share at a price of 135% of the Offering price for a period of 18 months following the closing date of the Offering. The Offering price will be determined by negotiation between Silver Eagle and the Agents. Silver Eagle has granted to the Agents an over-allotment option entitling the Agents to purchase at the Offering price additional Units equal to up to 15% of the aggregate number of Units sold pursuant to the Offering, within 30 days of the closing of the Offering.

The Agents are to be paid a cash commission of 6% of the gross proceeds of the Offering by Silver Eagle. In addition to the cash commission, Silver Eagle has agreed to issue to the Agents broker warrants exercisable for a period of 18 months following the closing of the Offering to purchase that number of common shares that is equal to 6% of the aggregate number of Units purchased pursuant to the Offering.

The Offering is designed to raise gross proceeds of up to $20 million and the net proceeds are intended to be used to fund ongoing underground development, the expansion of the mill at the Miguel Auza mine in Mexico, exploration in and around the Miguel Auza mine and for general corporate purposes.

The Offering is being made in all provinces of Canada except Quebec by means of a short form prospectus, and is subject to, among other things, the approval of securities regulatory authorities, the approval of the Toronto Stock Exchange and the termination rights granted to the Agents under the Agreement. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from registration requirements.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

ON BEHALF OF THE BOARD OF DIRECTORS OF SILVER EAGLE MINES INC.

"Terrence H. Byberg", President and CEO

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

(The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.)

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