Silver Eagle Mines Inc.
TSX : SEG

Silver Eagle Mines Inc.

November 23, 2006 09:31 ET

Silver Eagle Consolidates Ownership of Miguel Auza Project

TORONTO, ONTARIO--(CCNMatthews - Nov. 23, 2006) - Silver Eagle Mines Inc (TSX:SEG) ("Silver Eagle") is pleased to announce that it has acquired the remaining 20% equity interest in San Pedro Resources, S.A. de C.V. ("San Pedro") and now owns 100% of the Mexican subsidiary that controls the San Pedro exploration property, within which is situated the Miguel Auza Project.

The 20% equity interest was purchased from Productos Canadienses, S.A. de C.V. ("Productos"), a private Mexican company, wholly owned by Javier Aguirre Sanchez and Michael Neumann, founding partners in San Pedro and current directors of Silver Eagle Mines Inc., who elected to sell the ownership interest. The total purchase price is US$4 million, of which US$2.5 million was paid today, US$200,000 is to be paid on June 15, 2007, and the balance of US$1.3 million is payable no later than May 15, 2008 or earlier, subject to certain conditions. This agreement was reached as a result of negotiations between an independent committee of the Silver Eagle Board of Directors and Messrs Aguirre and Neumann on behalf of Productos. Messrs Aguirre and Neumann will remain directors of Silver Eagle and are committed to the successful development of the Miguel Auza Project.

In addition, the parties agreed to certain amendments to the Thelma Claim agreement between Mr. Neumann and San Pedro. The Thelma Claim is comprised of 433 hectares and is adjacent to, and forms part of, the Miguel Auza Project. The original Thelma Claim agreement, which provided for a 1% net smelter return royalty ("NSR") and no buyout right, has been amended to provide for a 3% NSR, net of a minimum monthly royalty of US$20,000, commencing May 15, 2007. Further more, San Pedro now has the right, exercisable at any time at its sole discretion, to buy out the royalty and title to the Claim for US$2 million. The independent committee deemed the closing of each of the San Pedro acquisition and the Thelma option claim restructuring to be desirable at this time in order to ensure the completion of these transactions, which are in the best interest of the company.

President and CEO Terry Byberg stated: "As part of our ongoing strategy to fully consolidate control of the San Pedro properties and the Miguel Auza Project, we are pleased to have completed this acquisition. Our strong belief in the growth potential of this property is being reinforced daily, as we continue to receive new information from diamond drilling, underground development, and mining. Preparations for a bulk sample, to be processed through our mill, are proceeding according to plan. This processing is to commence upon completion of the tailings facility, which is expected this December. After the results of the bulk sample test work and mill test work are complete, we expect that the mill will continue to process mineralized material from underground, as well as the current stockpiles on surface. Additionally, we have completed other surface and mining rights acquisitions related to existing properties, and staked adjacent mining claims in order to add to our overall holdings."

In an amendment to an existing agreement with Javier Martinez Lomas, in respect of his property, Silver Eagle has acquired surface land pertaining to property on which the mill is located. Silver Eagle has agreed to pay an amount of US$150,000, over a period of 14 months.

Silver Eagle has also acquired the Enrique Gaitan Enriquez mining concessions, which were the subject of an option agreement with Sr. Gaitan. These concessions, which are located at the core of the Miguel Auza Project and include a 3% NSR, have been acquired for consideration of US$475,000, payable over 8 months.

Additionally, Silver Eagle has acquired, by staking, an additional 13,970 hectares of ground adjacent to the 27,575 hectares already held. The new ground covers the possible north-eastern strike extension of the Calvario Vein system, which hosts Silver Eagle's current resources. The company now controls an additional 6.4 kilometres of strike extension of the vein system beyond the area diamond drilled to date. The extension of the vein system is indicated by a prominent fault lineament on satellite photos for at least two kilometres beyond the area of current drilling, passing in part through favourable intrusive and limestone units.

The new staking covers aeromagnetic anomalies, small intrusive stocks and areas underlain by Cretaceous limestone, all of which are favourable for the occurrence of skarn-type replacement ore bodies. Evaluation of all regional exploration targets within the 41,545 hectare San Pedro exploration property is planned for 2007.

Silver Eagle has obtained TSX approval for the aforementioned transactions.

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.

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