War Eagle Closes Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 26, 2011) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) ("War Eagle" or the "Company") has closed its non-brokered private placement announced on September 7, 2011, consisting of 3,960,000 units at a price of $0.25 per unit for gross proceeds of $990,000. Each unit comprises one common share of War Eagle and one common share purchase warrant entitling the holder to purchase one common share of War Eagle at a price of $0.34 until September 26, 2013.

War Eagle has agreed to pay qualified parties finders' fees of $50,400 and non-transferable warrants entitling them to purchase 201,600 War Eagle common shares on terms and conditions similar to that of the warrants issued under the private placement, subject to the approval of the TSX Venture Exchange.

All securities issued with respect to the placement are subject to a four-month hold period expiring on January 27, 2012, in accordance with the policies of the Exchange and the provisions of the Securities Act (British Columbia).

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.