Silver Eagle Mines Inc.

Silver Eagle Mines Inc.

December 16, 2008 09:13 ET

Silver Eagle Prepares for a Temporary Shut Down at Miguel Auza

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2008) - Silver Eagle Mines Inc. (TSX:SEG) ("Silver Eagle" or the "Company") announces that it has received approval from the Mexican Government to an agreement reached with the Company's union to implement a temporary suspension of operations at its Miguel Auza Mine property located in Zacatecas, Mexico, due to the continued low prices of Silver, lead and zinc. The temporary suspension has been approved until June 15, 2009, and the suspension period could be extended.

This approval allows the Company to suspend operations and temporarily lay off workers without the need to terminate their employment on the basis that there are external conditions that currently render the operation unprofitable. The Company intends, if and when the above mentioned conditions improve, to reinstate its workforce to their usual positions, and resume operations.

It is the Company's intention to put the mine on care and maintenance, and to implement the temporary suspension in an orderly fashion during the next few weeks; a reduced number of employees and workers will execute the tasks required to keep the minesite available to be reactivated if and when it is appropriate.

Silver Eagle continues to review and consider all options and strategic alternatives including potentially raising additional capital, completing a merger or acquisition transaction or selling assets to improve its financial position and its ability to resume operations and exploration activities when conditions enable it to do so.

An update on exploration and mining activity, results to date, including development of the newly identified "Ryan Vein", which was underway prior to the temporary shutdown, is forthcoming.


Silver Eagle Mines Inc. is a TSX-listed (TSX:SEG), Canadian-based mining company exploring and redeveloping an historic silver property in the heart of the Mexican precious metals belt. The Company's primary asset is its wholly-owned Mexican subsidiary, San Pedro Resources, S.A. de C.V., which controls the fully-permitted Miguel Auza Mine and adjacent properties in Zacatecas, Mexico. The property includes the mineral rights to 41,498 hectares, hosts past-producing mines and has the necessary infrastructure and a trained mining work force nearby. Results of a pre-feasibility study have been announced and the Company's plant expansion from 150 to 600 tpd is being commissioned. The plant has proven itself capable of processing ore to its designed capacity and recoveries were as expected per the pre-feasibility study.


Terrence H. Byberg, President and CEO

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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, other than as required by law, 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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