News

War Eagle Mining Company Inc. announced a new discovery hole at the Tres Marias concession in Mexico. The assay result for this hole is an intercept of 1.35 meters with a grade of 6.97% Zinc and 37 grams per tonne Germanium. The hole is located at La Blanca, which is approximately 600 meters to the south-east of the old mine shaft, but still on the concession. Despite the new discovery hole, War Eagle announces that it will be suspending exploration drilling at the Tres Marias concession during the economic downturn. With infrastructure in place, it is anticipated that drilling and exploration could resume at short notice and with minimal re-start costs. Advantage will be taken during the suspension of drilling to prepare a technical report compiling the results of drill programs conducted over the past two and a half years. During 2009 the Company intends to place an increased emphasis on identifying projects involving the potential recovery of germanium from fly ash and similar material. In this regard, the Company is actively looking for potential fly ash projects in several places, including the United States Midwest, and from the SaskPower operations in Canada. Recovering germanium from fly ash offers a number of advantages. "Once a project is identified, germanium recovery from fly ash offers a much more favorable risk profile and likely lower costs than would be expected from mining operations," Mr. Lantz stated. "We believe that War Eagle can become one of the leaders in this area." The Company will also continue its current fly ash processing initiatives, including its Phase 2 small-scale pilot plant in Spain aimed at developing process methodologies for extracting germanium and gallium from fly ash generated from the ELCOGAS S.A. coal gasification plant in Puertollano, Spain.