War Eagle Announces $1,000,000 Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2011) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) ("War Eagle" or the "Company") proposes to raise up to $1,000,000 by way of a non-brokered private placement offering (the "Offering") of units of the Company.

The Offering will be priced at $0.25 per unit with each unit consisting of one common share of War Eagle and one common share purchase warrant exercisable at $0.34. Each warrant will entitle the holder to purchase one common share of War Eagle for a period of two years following the date of closing of the Offering.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary corporate and regulatory approvals, including acceptance of the TSX Venture Exchange ("TSX-V"). The net proceeds of the Offering will be used for working capital and for general corporate purposes.

The Offering is expected to close on or before September 30, 2011. All common shares issued under the Offering will be subject to a four-month hold period. Subject to regulatory approval, finders' fees may be paid to certain finders. Some insiders of the Company may purchase shares, though this is expected to be less than 25% of the Offering.

Directors and officers of the Company have agreed to forgo all accrued fees and payments for the past 12 months in exchange and settlement for share purchase warrants, subject to regulatory and TSX-V approval.

About War Eagle

War Eagle Mining Company Inc. is an experienced mineral exploration company publicly traded since 1987 and listed on the TSX Venture Exchange under the symbol WAR. The Company is in the exploration phase of the Tres Marias zinc-lead project in Mexico. Tres Marias is a former producing high-grade zinc and germanium mine that first produced ore in 1949.

This news release was prepared by management of War Eagle, which takes full responsibility for its contents.

Legal Notice Regarding Forward Looking Statements

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with mining operations, therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements will transpire. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include references to a future drill program and related plans. These statements are based on assumptions made by the company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.