Attention Business Editors:

Gold Eagle Mines Ltd. announces closing of over-allotment option

     TSX: GEA
     TORONTO, May 17 /CNW/ - Gold Eagle Mines Ltd. (TSX: GEA) (OTCBB:GEAFF)
("Gold Eagle" or the "Company") announced today that it has closed the
over-allotment option previously granted to the syndicate of underwriters
co-led by Orion Securities Inc. and Westwind Partners Inc. and including, BMO
Nesbitt Burns Inc., Dundee Securities Corporation and Genuity Capital Markets
(collectively, the "Underwriters") in connection with the bought deal
financing which closed on April 24, 2007. Pursuant to the over-allotment
option, the Underwriters purchased an additional 1,000,000 common shares of
the Company at a price of $9.00 per share for additional gross proceeds of
$9,000,000.
     In total, including the over-allotment option, the Company has issued
9,900,000 common shares of the Company pursuant to this offering for total
gross proceeds of $89,100,000. The net proceeds of the offering will be used
for the continued exploration of Gold Eagle's Bruce Channel Discovery,
including a work program to sink an exploration shaft to facilitate continued
exploration of the mineralized envelope.
     The securities offered have not been registered under the U.S. Securities
Act of 1933 (the "1933 Act"), as amended and may not be offered or sold in the
United States except pursuant to available exemptions from the registration
requirements of the 1933 Act and applicable blue-sky laws and as are agreed to
by the Company and the underwriters. This release does not constitute an offer
for sale of securities in the United States.
     About Gold Eagle
     Gold Eagle Mines Ltd is a Canadian based junior natural resource company
developing a significant new gold discovery in the prolific Red Lake gold
camp, located in Northern Ontario, Canada.
     Forward-Looking Statement
     This News Release contains forward-looking statements regarding the
proposed use of proceeds from the offering. Forward-looking statements may
involve a number of risks and uncertainties. Actual events or results could
differ materially from the Company's current expectations and projections.
Accordingly, readers should not place undue reliance on forward-looking
statements. For a more detailed discussion of such risks and other factors,
refer to Gold Eagle's filings with Canadian securities regulators available on
www.sedar.com or the Company's website at www.goldeaglemines.com
     %SEDAR: 00024756E

For further information: please feel free to contact our offices at: Tel:
(416) 867-8998, Fax: (416) 867-9393, www.goldeaglemines.com