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Re:   News Release - Wednesday, June 30, 2010
      War Eagle Closes First Tranche of Non-Brokered Private Placement
      and Acquires Interest in Chihuahua Property
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Vancouver, British Columbia - June 30, 2010 - War Eagle Mining Company
Inc. (TSXV - WAR) ("War Eagle" or the "Company") has closed the first
tranche of a non-brokered private placement announced on June 17, 2010.
The Company issued 9,576,668 units at a price of $0.06 per unit for
gross proceeds of $574,600. Insiders of the Company accounted for
$554,000 of the first tranche gross proceeds.

The Company is closing the private placement in two tranches to
facilitate an investment in a private company that has a scheduled
closing date of June 30, 2010. War Eagle used the net proceeds of the
first tranche of the private placement plus $130,000 of its cash on
hand to acquire a minority interest in a private company that holds an
option to acquire a Chihuahua, Mexico-based mineral property. The
Company believes the property is complementary to War Eagle's Tres
Marias project. The Company plans to invest up to a further $300,000 in
the private company. The second tranche of the private placement is
expected to close no later than July 15, 2010.

Each unit of the private placement consists of one common share of War
Eagle and one-half of one common share purchase warrant exercisable at
$0.15 for a period of 18 months, subject to acceleration of the
exercise period in certain circumstances. If the closing price of the
Company's common shares is $0.30 or more for 20 consecutive trading
days on the TSX Venture Exchange, or an equivalent stock exchange, (the
"Accelerating Event") the exercise period of the warrants may be
reduced to expire on the date that is 30 days following the Company's
notice to the warrantholders of the Accelerating Event.

The Company paid a finder's fee in connection with this tranche of the
private placement of $1,648 in cash and issued 27,466 finder's warrants
which have the same terms as the financing warrants, except they are
non-transferable. All securities issued pursuant to this first closing
are subject to a four month and one day hold period.

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.

If you wish to be taken off the email list to recieve further news
releases and updates from War Eagle Mining, please respond back to this
email address with the word "remove" in the subject line, thanks.

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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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