Overview

The Miguel Auza property, which includes the mineral rights to 41,495 hectares (102,534 acres) of land, has several high potential exploration areas identified and targeted for evaluation. Contained within a 2 km² portion of the Miguel Auza property are several known silver bearing veins, which have been mined discontinuously since the Conquistadors initially worked the area in the mid 1500s. The deepest historic workings are at 140 metres and all veins remain open on strike and to depth. The Calvario and Northern Vein systems are the primary vein systems and ongoing drilling on these veins has returned many silver assays in excess of 1,000 g/t. The East Vein system, as well, is returning high precious metal values and is believed to be an eastern extension of the high grade Northern Veins, while the Mill Area Vein system appears to be characterized by higher lead and zinc grades, with lower precious metal grades. Silver Eagle has driven a ramp to intersect the Calvario Vein system, at its western extremity, and is currently mining and processing a bulk sample from the vein material. The knowledge gained from processing the bulk sample, along with the test work performed at SGS Lakefield Laboratories, will assist in planning the future growth of the mining. Silver Eagle also continues to develop the ramps and Calvario Vein system, which currently includes several previously unknown veins. The Milagro, Calvario B, B1, C and D Veins are newly discovered and are included in our recent mineral resource update (see October 17 news release). In 2005, Silver Eagle completed the property's first ever modern exploration campaign by diamond drilling the Calvario Vein system, enabling the company to declare a mineral resource on the property. This resource was recently updated in October 2007 (see October 17 news release). Silver Eagle is currently exploring the other vein systems and extending the Calvario Vein system on strike and to depth in an effort to augment and further delineate the veins for mine planning purposes.