Silver Eagle Prepares for a Temporary Shut Down at Miguel Auza

Silver Eagle Prepares for a Temporary Shut Down at Miguel Auza

Silver Eagle Mines Inc. announces that it has received approval from the Mexican Government to an agreement reached with the Company’s union to implement a temporary suspension of operations at its Miguel Auza Mine property located in Zacatecas, Mexico, due to the continued low prices of Silver, lead and zinc. The temporary suspension has been approved until June 15, 2009, and the suspension period could be extended.

This approval allows the Company to suspend operations and temporarily lay off workers without the need to terminate their employment on the basis that there are external conditions that currently render the operation unprofitable. The Company intends, if and when the above mentioned conditions improve, to reinstate its workforce to their usual positions, and resume operations.

It is the Company’s intention to put the mine on care and maintenance, and to implement the temporary suspension in an orderly fashion during the next few weeks; a reduced number of employees and workers will execute the tasks required to keep the minesite available to be reactivated if and when it is appropriate.

Silver Eagle continues to review and consider all options and strategic alternatives including potentially raising additional capital, completing a merger or acquisition transaction or selling assets to improve its financial position and its ability to resume operations and exploration activities when conditions enable it to do so.

An update on exploration and mining activity, results to date, including development of the newly identified “Ryan Vein”, which was underway prior to the temporary shutdown, is forthcoming.

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