Andromeda Letter of Intent Terminated
=======================================================================

Vancouver, British Columbia - December 24, 2010 - War Eagle Mining
Company Inc.  (TSXV - WAR) ("War Eagle" or the "Company") has received
notice from Andromeda Resources Inc. terminating the letter of intent
between the two companies that was announced on August 16, 2010.
Trading of the Company's shares on the TSX Venture Exchange has been
halted since that announcement. The Company expects that its shares
will come back to trade on December 29, 2010 and will provide an update
regarding its plans in early January 2011.


About War Eagle

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


For additional information please contact:

War Eagle Mining Company Inc.
Simon Anderson, President
604-681-7010
 
Email:     info@wareaglemining.com
Website:   www.wareaglemining.com

 
This news release was prepared by management of War Eagle, which takes
full responsibility for its contents. Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.