War Eagle Mining Company Inc.

War Eagle Mining Company Inc.

November 09, 2007 10:00 ET

War Eagle Signs Letter of Intent to Option 70% of George's Lake Gold Property to Yankee Hat

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2007) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) (the "Company") has entered into a Letter of Intent with Yankee Hat Minerals Ltd. ("Yankee Hat") a British Columbia corporation (TSX VENTURE:KHT), whereby Yankee Hat may acquire a 70 per-cent interest (the "Property"). To exercise its option Yankee Hat must incur exploration expenditures on the Property totaling $1,500,000 by December 31, 2010.

Under the terms of the Letter of Intent, Yankee Hat will be granted, subject to an existing 0.5 per-cent Net Smelter Return Royalty ("NSR") and a 10 per-cent carried interest owned by an unrelated party, sole and exclusive rights to earn up to 70 per-cent interest in the property in consideration of incurring a total of $1.5 million in expenditures on the property over a period of three years. Of the 10 per-cent carried interest, 5 per-cent may be purchased at any time for a payment of $2.0 million Cdn. and the 0.5 per-cent NSR can be purchased at any time for one-time payment of $250,000 Cdn. The 70 per-cent interest in the Property can be earned by Yankee Hat in accordance with the following schedule:

- $750,000 on or before December 31, 2008, to earn 50 per-cent;

- an additional $375,000 on or before December 31, 2009, to earn an additional 10 per-cent; and

- an additional $375,000 on or before December 31, 2010, to earn an additional 10 per-cent for a total of 70 per-cent interest in the Company's 90 per-cent interest in the Property.

The Company and Geneva Resources Inc. (formerly Revelstoke Industries Inc.) terminated a previous option agreement dated October 20, 2006, whereby Geneva had an option to acquire an ownership position on the George's Lake Property.

About War Eagle Mining:

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

The Project is under the direction of Mr. Terence Schorn, P. Geo., the qualified person pursuant to the National Instrument 43-101.

Terence F. Schorn, P. Geo., President

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 actual results, performance or achievements could differ materially from those expressed in or implied by these forward-looking statements will transpire, or occur, or if any of them do so, what benefits, including the amounts of proceeds which the company will derive therefrom. 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 future pricing trends of Ge metal, completion and production timetables. These statements are based on assumptions made by the company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

CUSIP. No. 933901209

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of the contents of the foregoing.

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