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Re:   News Release - Thursday, June 17, 2010
      War Eagle Announces $1,200,000 Non-Brokered Private Placement
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Vancouver, British Columbia - June 17, 2010 - War Eagle Mining Company
Inc. (TSXV - WAR) ("War Eagle" or the "Company") proposes to raise up
to $1,200,000 by way of a non-brokered private placement offering (the
"Offering") of the Company.

The Offering will be priced at $0.06 per unit with each unit consisting
of one common share of War Eagle and one-half common share purchase
warrant exercisable at $0.15. Each full warrant, which may include
acceleration provisions, will entitle the holder to purchase one common
share of War Eagle for a period of 18 months following the date of
closing of the Offering.

The Offering is subject to certain conditions including, but not
limited to, the receipt of all necessary corporate and regulatory
approvals, including acceptance of the TSX Venture Exchange. The net
proceeds of the Offering will be used to acquire a minority interest in
a private company that holds an option to acquire a Chihuahua,
Mexico-based mineral property.
Net proceeds may also be used to source prospective acquisitions and
for working capital for general corporate purposes.

The Offering is expected to close on or before June 30, 2010. All
common shares issued under the Offering will be subject to a four-month
hold period. Subject to regulatory approval, finders' fees may be paid
to certain finders. Some Insiders of the Company may purchase Shares
under the Offering.

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.

Legal Notice Regarding Forward Looking Statements

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 future results, performance or
achievements could differ materially from those expressed in these
forward-looking statements will transpire. 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 include
references to a future drill program and related plans. These
statements are based on assumptions made by the company based on its
experience, 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) 2010 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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