War Eagle Mining Company Inc.
TSX VENTURE : WAR

War Eagle Mining Company Inc.

December 16, 2008 09:01 ET

War Eagle Signs Letter of Intent With SaskPower International Inc. to Sample Fly Ash for Germanium

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2008) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) -

The Company announced today that it has signed a Letter of Intent (LOI) with SaskPower International Inc. and Saskatchewan Power Corporation to sample fly ash from SaskPower Saskatchewan coal-generating plant sites and to test the fly ash for Germanium content.

The terms of the agreement allow War Eagle to extract up to one tonne of fly ash over a twelve month time period for the purpose of determining the presence and amount of Germanium. If the extraction of Germanium is successful from SaskPower's fly ash and is ultimately found to be commercially viable, then, subject to board and other approvals by all parties, the parties can proceed to develop a definitive purchase agreement whereby War Eagle would purchase fly ash from SaskPower International.

Terry Schorn, CEO and President of War Eagle, commented, "We are delighted to enter into the LOI and look forward to testing the fly ash for Germanium. We intend on engaging in a two or three stage sampling program. The first stage will consist of a relatively small sampling program, and proceeding to the following stages will be dependent upon the results from the previous sampling. Extracting Germanium from fly ash offers a tremendous opportunity to recover metal with minimum impact to the environment."

War Eagle will also continue its current fly ash initiatives in Spain. Currently this project is in Phase 2, which consists of a small-scale laboratory pilot plant aimed at process methodologies for extracting Germanium from fly ash generated from the ELCOGAS S.A. coal gasification plant in Puertollano, Spain.

Separately, as of December 15, 2008, the Company had cash of more than $2.7 million CDN.

War Eagle Mining Company Inc.

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 phase in the area 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 Tres Marias Project is under the direction of Mr. Terence Schorn, P. Geo., the qualified person pursuant to the National Instrument 43-101.

SaskPower

As the principal supplier of electricity in Saskatchewan, SaskPower serves more than 451,000 customers and manages $4.5 billion in assets. SaskPower has almost 2,500 permanent full-time employees who operate three coal-fired power stations, seven hydroelectric stations, four natural gas stations, and two wind facilities.

For further information www.wareaglemining.com or contact info@wareaglemining.com.

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. There can be no assurance that any future events will transpire, or occur, or if any of them do so, what benefits, including the amounts of proceeds, 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 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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