Silver Eagle Mines Inc.

Silver Eagle Mines Inc.

May 31, 2006 11:05 ET

Silver Eagle Obtains Receipt for Final Prospectus

TORONTO, ONTARIO--(CCNMatthews - May 31, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Silver Eagle Mines Inc. (the "Company") announces that it has received a receipt for its final prospectus relating to its initial public offering of a maximum of 12,000,000 units at the price of $1.25 per unit for aggregate gross proceeds of up to $15,000,000 (the "Offering"). Each unit will consist of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company for a period of 24 months after the closing of the offering at a price of $1.75. Blackmont Capital Inc. and TD Securities Inc. (the "Agents") are acting as co-lead agents in respect of the Offering.

The Company has granted the Agents an over-allotment option, exercisable at any time up to 30 days following the close of the Offering, to increase the size of the Offering by up to 1,800,000 Units at $1.25 per unit for additional gross proceeds to the Company of up to $2,250,000. The Offering is expected to close on or about June 6, 2006. The common shares of the Company have been conditionally approved for listing on the Toronto Stock Exchange (TSX) under the stock symbol "SEG" and are expected to commence trading on closing of the Offering.

About Silver Eagle

Silver Eagle Mines Inc. is engaged in the acquisition, exploration and development of precious metal assets in Mexico through its 80% owned subsidiary, San Pedro Resources, S.A. de C.V. ("San Pedro"). The primary focus of the Company is the exploration and development of San Pedro's advanced Miguel Auza silver and base metal property in the state of Zacatecas. The property contains a number of veins with known silver mineralization including the Calvario Vein, which, over a 1.2 km strike length, hosts an indicated resource of 3.2 million silver equivalent ounces (186,000 tonnes grading 530 grams per tonne silver equivalent including 0.31 gm/tonne gold, 243 gm/tonne silver, 2.53% lead and 2.86% zinc) and an inferred resource of 9.4 million silver equivalent ounces (740,000 tonnes grading 397 grams per tonne silver equivalent including 0.18 gm/tonne gold, 150 gm/tonne silver, 2.49% lead and 2.34% zinc). Equivalent silver ounces are based on $US 450/oz Au, $US 7.00/oz Ag, $US 0.40/lb Pb and $US 0.60 Zn and a 70% overall mill and smelter recover rate as determined by preliminary metallurgical testwork. The Company expects to add to its existing resource through the drilling of additional veins on the property and the strike and depth extension of the Calvario Vein, which work is currently underway.

The foregoing was compiled under the supervision of Wayne W. Valliant, P. Geo who is an independent 'qualified person' under National Instrument 43-101 of the Canadian Securities Administrators and is described in more detail in the technical report of the Company in respect of the Miguel Auza property (dated March 8, 2006 and revised April 30, 2006) prepared by Mr. Valliant which is available on www.SEDAR.com.

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 releases 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 COMMON SHARES AND WARRANTS COMPRISING THE UNITS AND COMMON SHARES ISSUABLE UPON EXERCISE OF THE WARRANTS WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OR BENEFIT OF U.S. PERSONS ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS. THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE BE UNLAWFUL.

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