Silver Eagle Mines Inc.
TSX : SEG

Silver Eagle Mines Inc.

October 17, 2006 15:04 ET

Silver Eagle Reports Continuing High Grade Assays from Underground Channel Samples

Results of continuing underground channel sampling: - Ramal II Vein on -87 metre level: 73 metre drift averages 0.72 g/t Au, 1,039 g/t Ag, 1.81% Pb, and 0.67% Zn over a 1.7 metre average vein width. - Ramal II Vein on -105 metre level: 22 metre drift averages 0.56 g/t Au, 713 g/t Ag, 0.68% Pb, and 0.20% Zn over a 1.3 metre average vein width. - Ramal I Vein on -86 metre level: 8 metre drift averages 0.22 g/t Au, 361 g/t Ag, 1.59% Pb, and 0.89% Zn over a 1.4 metre average vein width. - Calvario Vein on -100 metre level: 23 metre drift averages 0.58 g/t Au, 222 g/t Ag, 1.34% Pb, and 1.08% Zn over a 0.8 metre average vein width. - Underground drilling to commence in November of 2006.

TORONTO, ONTARIO--(CCNMatthews - Oct. 17, 2006) - Silver Eagle Mines Inc. ("Silver Eagle") (TSX:SEG) is pleased to announce further assay results from silver bearing veins accessed by the King Ramp on the Miguel Auza property, Zacatecas State, Mexico. Drifting on the Ramal II, Ramal I and Calvario Veins is ongoing and mineralized vein material is being stockpiled on surface, pending start-up of the mill test plant. A combined mining advance on the veins of 63 metres has been completed since previous channel sampling was reported on August 29, 2006 (please see attached map).

The Ramal II Vein has now been followed over 73 metres on the -87 metre level, and averages 0.72 g/t Au, 1,039 g/t Ag, 1.81% Pb, and 0.67% Zn over a 1.7 metre average vein width. The Ramal II Vein has also been followed over 22 metres on the -105 metre level, and averages 0.56 g/t Au, 713 g/t Ag, 0.68% Pb, and 0.20% Zn over a 1.3 metre average vein width.

Based on sampling of 8 metres to date, Ramal I averages 0.22 g/t Au, 361 g/t Ag, 1.59% Pb, and 0.89% Zn over a 1.4 metre average vein width. The Calvario Vein has been sampled over a total length of 23 metres on the -100 metre level, and averages 0.58 g/t Au, 222 g/t Ag, 1.34% Pb, and 1.08% Zn over a 0.8 metre average vein width.

Both Ramal I and II Veins cross the Calvario Vein and continue south. The Ramal I -87 metre drift will continue in this direction in order to outline a resource on the Ramal I Vein, and provide future drill stations to allow further drill testing of the Ramal II Vein.

A second surface diamond drill has been purchased (in addition to two contract drills) to increase drilling activity and a contract has been let with a local contractor to perform 1,000 metres of underground diamond drilling to further define the three principal veins with the objective of defining resources for bulk sampling in these three veins.



The table below summarizes all channel sample assay results received
to date.

------------------------------------------------------------------------
------------------------------------------------------------------------
Sample Total Ag
Line Width Au Ag Pb Zn Eq(i)
(m) g/t g/t % % g/t
------------------------------------------------------------------------
------------------------------------------------------------------------

RAMAL II VEIN, -87 LEVEL
87R2-17 2.55 0.20 464 0.66 0.40
87R2-18 2.40 0.45 1083 1.65 1.45
87R2-19 2.05 0.54 1044 1.89 1.47
87R2-20 0.55 0.81 1899 4.32 1.43
87R2-21 1.80 0.61 623 0.84 0.58
87R2-22 1.45 0.16 1052 3.21 0.91
87R2-23 2.80 0.53 814 3.40 1.70
87R2-24 3.00 0.42 1454 5.15 1.75
Weighted avg. width/grade
over 20 m length (lines
17-24, this press release) 2.1m 0.44 979 2.59 1.25 1179
Weighted avg. width/grade
over 53 m length (lines
0-16, reported 29 Aug 06) 1.6m 0.86 1,068 1.43 0.39 1184
Weighted avg. width/grade
over 73 m length 1.7m 0.72 1,039 1.81 0.67 1182

RAMAL II VEIN, -105 LEVEL 105R2-5 2.20 0.17 395 0.36 0.16
105R2-6 0.60 0.20 371 1.70 0.32
105R2-7 0.50 0.25 146 0.30 0.16
105R2-8 0.80 0.46 129 0.38 0.11
105R2-9 1.25 0.37 912 0.94 0.27
Weighted avg. width/grade
over 15.6m length (lines
5-9, this press release) 1.1m 0.27 450 0.64 0.20 498
Weighted avg. width/grade
over 6.2m length (lines
1-4, reported 27 July 06) 1.9m 0.98 1,095 0.74 0.21 1,182
Weighted avg. width/grade
over 21.8 m length 1.3m 0.56 713 0.68 0.20 776

------------------------------------------------------------------------
------------------------------------------------------------------------


------------------------------------------------------------------------
------------------------------------------------------------------------

RAMAL I VEIN, -86 LEVEL
86R1-22 0.30 0.45 1268 6.95 1.19
86R1-23 1.30 0.31 830 4.52 2.73
86R1-24 0.80 0.70 711 3.53 1.96
86R1-25 1.90 0.09 37 0.06 0.12
86R1-26 2.80 0.11 165 0.14 0.22
Weighted avg. width/grade
over 8m length (this press
release) 1.4m 0.22 361 1.59 0.89 492

CALVARIO VEIN, -100
LEVEL
100C-0 0.75 0.57 367 2.16 1.25
100C-00 0.50 0.10 550 1.29 1.19
100C-1 1.00 0.08 111 1.45 1.28
100C-2 0.65 1.25 235 2.73 1.94
100C-3 0.45 1.35 146 2.34 2.31
100C-4 0.80 0.85 78 1.22 1.38
100C-5 1.30 0.93 134 1.16 0.95
100C-6 1.25 0.12 89 0.41 0.27
100C-7 0.80 0.40 550 0.68 0.41
Weighted avg. width/grade
over 23m length (this
press release) 0.8m 0.58 222 1.34 1.08 381

------------------------------------------------------------------------
------------------------------------------------------------------------
(i)Silver equivalent grade calculated at the following metal prices:
US$500/oz Au; US$10/oz Ag; US$0.40/lb Pb; and, US$1.25/lb Zn.


VP Exploration, Dr. Christopher Hodgson commented, "A number of veins converge in the ramp near the apparent western limit of the Calvario Vein system. The richest of these, the Ramal I and Ramal II Veins, were mined northeast of the Calvario Vein and above the -85 metre level in the 1980s. Neither of these veins was mined southeast of the Calvario Vein, nor below the -85 metre level west of this vein. Diamond drilling has identified the Ramal II Vein down to the -127 metre level. It remains open to depth and on strike to the southeast. Silver Eagle plans to continue testing both veins with drifting and underground diamond drilling, with the goal of defining a resource."

The Qualified Person for Silver Eagle, as defined by National Instrument 43-101, is Dr. Christopher Hodgson, P. Eng., Vice President, Exploration. Preparation and assaying of the above-reported samples was performed by ERSA Global Laboratory at their facilities in Torreon, Mexico. Silver Eagle has a QA/QC program, submitting duplicate check samples for assaying to both ERSA and ALS Laboratories in Vancouver, B.C., with acceptable results to date.

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.

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

Terrence H. Byberg, President and CEO

To view a copy of the "Miguel Auza Property" map click the link below:

http://www.ccnmatthews.com/docs/silvermap.pdf

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

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