Silver Eagle Mines Inc.

Silver Eagle Mines Inc.

August 14, 2006 14:14 ET

Silver Eagle Reports Diamond Drill Intersections in Excess of 3,300 gpt Silver in Step-Out Holes as Vein Drilling Continues

TORONTO, ONTARIO--(CCNMatthews - Aug. 14, 2006) - Silver Eagle Mines Inc. ("Silver Eagle")(TSX:SEG) is pleased to present assay results from the diamond drill program currently underway using three drills on its Miguel Auza property in Zacatecas State, Mexico. These results continue to extend the strike lengths of the veins while delivering bonanza grade silver intersections (in excess of 1,000 gpt).

Northern Veins

Drill intersections feature up to 3,340 gpt Ag, 6.34% Pb and 1.55% Zn over 0.5 metres in drill hole 2006-55 at the extreme eastern limit of the drilling of the Northern veins. Drill holes 2006-55 and 2006-56 bring the strike length of the veins to 650 metres, with hole 2006-56 encountering three separate veins. (See attached diamond drill hole map). Holes 2006-53 and 2006-54 missed the veins, due to an interpreted 100-metre fault offset of the veins between drill holes 2006-47, 2006-50 and 2006-53, 2006-54.

Calvario Vein

Hole 2006-59 on the Calvario vein brings the strike length of the vein to 1.3 kilometres. Both the Northern and Calvario veins are open to the east and appear to be converging in that direction.

Mill Area Veins

Drill holes #2006-49, 2006-51 and 2006-52 in the Mill area encountered some encouraging widths and grades of what are largely base metal veins. Highlights include 274 gpt Ag, 10.2 % Pb and 13.30% Zn over 0.45 metres in 2006-52 and 887 g/t Ag, 0.17% Pb and 1.79% Zn over 0.55 metres in 2006-51. The vein intersections in drill holes 2006-51 and 2006-52 are 400 metres southwest of the San Jose shaft, towards which the veins are trending. It is expected that in-fill drilling in this area will demonstrate continuity between the Mill and Northern veins.

Please see table below for a complete listing of diamond drill assay results. Vein true widths have not been calculated at this time.

"We remain extremely excited about the ongoing drilling program on all three of the vein areas as we continue to return high grade assay results along extensions. Everything we are seeing suggests that historical reports on the property are correct." remarked CEO Terry Byberg and continued that "Our continued drilling success is very encouraging for us as we continue to work toward a new resource estimate."

Drill Core Au Ag
Zone Hole From(m) To(m) Length(m) gpt(i) gpt(i) Pb % Zn %

North 2006-50 102.70 104.45 1.75 0.32 742 0.36 0.46

Incl. 102.70 102.90 0.20 1.31 2,920 1.30 2.14

Incl. 104.15 104.45 0.30 0.85 2,300 1.16 1.13

2006-53 No significant assay results

2006-54 No significant assay results

2006-55 157.00 157.50 0.50 than 0.05 3,340 6.34 1.55

2006-56 168.10 170.30 2.20 0.15 492 0.46 0.61

Incl. 168.10 168.55 0.45 0.49 1,345 0.88 1.19

And 182.90 184.65 1.75 0.11 223 1.07 0.19

And 373.70 375.25 1.55 0.13 239 2.39 3.03

2006-57 Awaiting assay results

2006-58 No significant assay results

Mill 2006-49 105.10 105.60 0.50 1.96 41 0.66 1.35

2006-51 223.70 229.00 5.30 0.19 129 0.22 4.57

Incl. 227.70 228.25 0.55 0.13 887 0.17 1.79

2006-52 126.90 127.35 0.45 0.05 274 10.20 13.30

And 200.40 200.65 0.25 0.05 13 0.22 12.25

And 244.25 246.95 2.70 0.14 37 0.31 4.43

Calvario 2006-59 108.60 111.15 2.55 0.48 275 0.77 0.34

Incl. 109.35 109.60 0.25 1.09 1,120 1.81 1.01

(i) Grams per metric tonne.

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.


"Terrence H. Byberg"

President and CEO

To view the Miguel Auza Property Zacatecas, Mexico map please click on the link provided:

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

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