Silver Eagle Mines Inc.
TSX : SEG

Silver Eagle Mines Inc.

December 04, 2006 12:14 ET

Silver Eagle Reports Continuing High Grade Underground Vein Development

TORONTO, ONTARIO--(CCNMatthews - Dec. 4, 2006) - Silver Eagle Mines Inc. (TSX:SEG) -

Results of continuing underground development:

- Ramal 1 Vein on 86 metre level: channel samples over 15 metre drift length average 0.23 g/t Au, 515 g/t Ag, 2.68% Pb, and 1.51% Zn over a 1.30 metre average true vein width.

- Ramal 1 Vein on 105 metre level: channel samples over 5 metre drift length average 0.38 g/t Au, 518 g/t Ag, 1.85% Pb, and 1.53% Zn over a 1.30 metre average true vein width.

- Ramal 2 Vein on 103 metre level: channel samples over 21 metre drift length average 0.99 g/t Au, 738 g/t Ag, 0.72% Pb, and 0.25% Zn over a 0.93 metre average true vein width.

- Ramal 2 Vein on 105 metre level: channel samples over 50 metre drift average 0.43 g/t Au, 617 g/t Ag, 0.93% Pb, and 0.62% Zn over a 1.51 metre average true vein width.

Silver Eagle Mines Inc. ("Silver Eagle") is pleased to announce further assay results from drifting on the Ramal 1, Ramal 2, and Calvario Veins. Mineralized material from the vein drifts stockpiled on surface now exceeds 4,000 tonnes. The onsite mill test plant is now complete and will begin processing stockpiled material upon completion of the tailings dam. The King Ramp has now accessed the upper part of the indicated resource (as reported in April 2006) on the Calvario Vein. The ramp is currently at a mine depth of approximately 115m and approaching Martinez No. 1 shaft.

Results of underground development and channel sampling on Ramal 1 and 2 Veins on the two present levels, 86/87 and 103/105, can be summarized as follows (the table below summarizes all channel sample assay results received to date).

A total of 103 metres of continuous vein development has been completed on the 87 metre level, of which 88 metres of channel sample assays received to date average 0.65 g/t Au, 968 g/t Ag, 1.93% Pb, and 0.78% Zn (1,121 g/t Ag equivalent(i)) over 1.60 metres average true vein width.

A total of 91 metres of continuous vein development has been completed on the 105 metre level, of which 76 metres of channel sample assays received to date average 0.55 g/t Au, 651 g/t Ag, 1.00% Pb, 0.62% Zn (758 g/t Ag equivalent(i)) over 1.30 metres average true vein width.

Two underground drills are currently turning with the goal of defining and expanding the mineral resource on the Ramal and Calvario Veins in the King Ramp. Surface drilling, with four diamond drills, is continuing on the depth and lateral extensions of the Calvario Vein system in the East Zone and at depth beneath the Martinez 1 and 2 shafts. Drill core will also provide material for additional metallurgical testwork to that currently underway at Lakefield Research, Peterborough, Ontario.

VP Exploration, Dr. Chris Hodgson commented, "Development over the past month on Ramal 1 and 2 veins on 86/87 and 103/105 mine levels has continued to yield very encouraging results, and surface stockpiles of vein material at the mill continue to grow. The King Ramp has advanced 70 metres since last reported and is now at the 115 mine level. The Calvario Vein, the principal vein in the ramp area where all current indicated resources are located, has now been intersected on both the 86 and 105 mine levels. Drifting along this vein on the 105 level will be our next priority".

The Qualified Person for Silver Eagle, as defined by National Instrument 43-101, is Dr. Christopher Hodgson, P. Eng., Vice President, Exploration. Preparation of the above-reported assay samples was carried out by ALS Laboratories Ltd. at their facility in Chihuahua, Mexico, with assaying conducted by ALS at their laboratory in North Vancouver, British Columbia.

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 & CEO



---------------------------------------------------------------------------
True Ag
Width Au Ag Pb Zn Eq.
CHANNEL SAMPLE ASSAY LINES (m) (g/t) (g/t) (%) (%) (g/t)(i)
---------------------------------------------------------------------------

RAMAL I VEIN, -86 LEVEL
R1-86-L27 0.80 0.20 349 0.35 0.31 395
R1-86-L28 1.40 0.43 1249 9.29 4.33 1,897
R1-86-L32 1.30 0.10 427 1.24 1.65 607
Wtd Avg Lines 27-32 (6.8m) 1.17 0.25 738 4.26 2.41 1,075
Wtd Avg Lines 22-26 (8.2m)(ii) 1.40 0.22 361 1.59 0.89 492
Wtd Avg All Lines (22-32)
(15m total vein length) 1.30 0.23 515 2.68 1.51 730

RAMAL I VEIN, -105 LEVEL
RI-105-L1 1.25 0.34 413 1.15 0.37 493
RI-105-L2 1.35 0.41 616 2.49 2.61 929
Wtd Avg Lines 1-2
(5m total vein length) 1.30 0.38 518 1.85 1.53 719

RAMAL II VEIN, -103 LEVEL

R2-103-L1 0.50 1.90 1195 2.14 0.35 1,379
R2-103-L2 0.50 0.10 133 0.77 0.15 172
R2-103-L3 1.90 1.51 829 0.50 0.37 949
R2-103-L4 0.40 1.40 2284 0.71 0.35 2,403
R2-103-L5 0.35 0.10 132 0.24 0.13 155
R2-103-L6 1.90 0.55 472 0.64 0.14 529
Wtd Avg Lines 1-6
(21m total vein length) 0.93 0.99 738 0.72 0.25 829

RAMAL II VEIN, -105 LEVEL
R2-105-L10 1.00 1.35 2116 1.96 0.27 2,260
R2-105-L11 0.85 0.31 486 0.37 0.13 522
R2-105-L12 0.50 0.37 787 0.80 0.48 868
R2-105-L13 1.50 0.28 395 1.07 0.22 457
R2-105-L14 4.75 0.17 520 0.96 0.58 605
R2-105-L15 2.05 0.26 173 0.74 0.30 232
R2-105-L16 1.10 0.10 67 0.19 0.16 91
R2-105-L18 2.50 0.38 647 1.75 1.47 840
R2-105-L19 1.30 0.67 532 1.40 4.00 947
Wtd Avg Lines 10-19 (28.2m) 1.68 0.35 561 1.08 0.86 682
Wtd Avg Lines 1-9 (21.8m)(ii) 1.30 0.56 713 0.68 0.20 777
Wtd Avg All Lines 1-19
(50m total vein length) 1.51 0.43 617 0.93 0.62 717

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

(ii) Reported previously


Please note: A map is available on CCNMatthews' website at the following link: http://www.ccnmatthews.com/docs/seg1204.pdf

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

Contact Information