Exploration

Silver Eagle has an ongoing exploration program at Miguel Auza with the goal of expanding and upgrading current resource estimates.

In October of 2007, Silver Eagle reported an increase in indicated resources in excess of 500% at its wholly-owned Miguel Auza Property in Zacatecas, Mexico. Since announcing its initial resource estimate in April of 2006, an intensive diamond drill campaign has resulted in an increase in the indicated resource from 3.2M oz Ag Eq2 to 21.1M oz Ag Eq1 while the inferred resource has decreased slightly, from 9.4M oz Ag Eq2 to 9.1M oz Ag Eq1. Wayne Valliant P.Geo., of Scott Wilson Roscoe Postle Associates Inc., has audited and approved the updated resource estimate.

The following tables summarize the new indicated and inferred resource estimates, respectively, as approved by
Mr. Valliant:

Indicated Mineral Resources

Inferred Mineral Resources

1. The October 2007 Resource estimate was prepared under the supervision of Silver Eagle’s qualified person
   Dr. Christopher Hodgson, P.Eng., and audited by Wayne Valliant P.Geo., of Scott Wilson Roscoe Postle Associates Inc.

• CIM definitions were followed for mineral resources.
• Indicated mineral resources were estimated using a cutoff net smelter return of US$ 40, based on metal prices, plant recoveries, and smelter terms as per notes below.
• Inferred mineral resources were estimated using a cutoff net smelter return of US$ 30, based on metal prices, plant recoveries and smelter terms as per notes below.
• A minimum mining width of 1.0 m was used.
• Equivalent Ag grades and contained ounces were estimated based on US$600/oz gold, US$11/oz silver, US$0.65/lb lead, and US$1.00/lb zinc.
• Equivalent Ag grades and contained ounces were estimated based on gold, silver, lead and zinc plant recoveries as per the most recent metallurgical test work and smelter terms.
• Mineral resources that are not mineral reserves do not have demonstrated economic viability
• Rows and columns may not add exactly due to rounding.

2. The resource information presented in the April 2006 resource estimate Technical Report and used herein was prepared under the supervision of an independent “Qualified Person” within the meaning of National Instrument
   43-101 and is contained in a report entitled “Technical Report Miguel Auza Property” by Wayne Valliant, P.Geo,
   dated April 2006 which was prepared in accordance with National Instrument 43-101. The report is available for inspection at the Company’s office during business hours. Silver equivalents were calculated using US$450/oz Au; US$7.00/oz Ag; US$0.40/lb Pb; US$0.60/lb Zn. The cut-off NSR value included a 70% overall mill + smelter recovery as determined by preliminary metallurgical test work.
   

The current drill program is focused on extending the Calvario Vein system to depth and on strike to enhance the present resource and provide additional information for use in mine planning. The Mill, North, and East Vein systems will be further drilled to understand and expand the property's numerous vein systems. (View Drill Hole Assay Intervals)

The Miguel Auza property contains four discrete vein systems including; the Calvario Vein system (referred to above), the Northern Vein system, the Mill Area system and the East Vein system. (View Channel Sample Assays)