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Re:   News Release - Tuesday, December 16, 2008
      War Eagle Signs Letter of Intent with Saskpower International
      Inc. to Sample Fly Ash for Germanium
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Vancouver, British Columbia War Eagle Mining Company Inc. 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.  

Sask Power

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

Bob Faris, Corporate Development
at 1-800-877-1626 or 604-606-7973
bob@wareaglemining.com

Media Relations
Nancy Tamosaitis Vorticom Public Relations
212.532.2208
nancyt@vorticom.com

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

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.

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Copyright (c) 2008 WAR EAGLE MINING COMPANY INC. (WAR)  All rights
reserved.  For more information visit our website at
http://www.wareaglemining.com/ or send
mailto:news@sweetwatercapital.net
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