War Eagle Mining Company Inc.
TSX VENTURE : WAR

War Eagle Mining Company Inc.

July 22, 2011 09:30 ET

War Eagle Effects Share Consolidation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 22, 2011) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) ("War Eagle" or the "Company") has implemented a consolidation of its share capital on a 20 for 1 basis, consolidating its 69,645,394 currently outstanding common shares to 3,482,269 common shares. Shareholder authorization to effect the share consolidation was approved at the Company's annual and special general meeting held on February 28, 2011.

The Company's common shares will continue to be traded on the TSX Venture Exchange ("TSX-V") under the symbol "WAR" on a post-consolidation basis and under a new CUSIP number – 933901308. War Eagle's common shares are scheduled to begin trading on a post-consolidation basis on the TSX-V at market open today, July 22, 2011.

A letter of transmittal with respect to the consolidation will be mailed out to all registered shareholders on or about July 22, 2011. All registered shareholders of the Company will be required to send their certificates representing pre-consolidation common shares with a properly executed letter of transmittal to the Company's transfer agent, Computershare Investor Services Inc., in accordance with the instructions provided in the letter of transmittal. Additional copies of the letter of transmittal can be obtained through Computershare Investor Services Inc. or shareholders may also obtain a copy of the letter of transmittal by accessing the Company's SEDAR profile at www.sedar.com. All shareholders who complete letters of transmittal will receive post-consolidation common share certificates. No action is required by non-registered shareholders, who hold securities of the Company through an intermediary, to effect consolidation of their beneficially held securities.

No certificates representing fractional post-consolidation common shares will be issued pursuant to the consolidation. The exercise or conversion price and the number of common shares issuable under any of the Company's outstanding warrants and stock options will be proportionately adjusted upon consolidation.

The consolidation will provide the Company with increased flexibility when negotiating potential financing opportunities and allow it to consider joint venture or acquisition proposals with fewer material limitations.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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