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War Eagle Mining Company Inc.: Gold Project Acquired, Yukon Territory.

Business Editors

SEC. No. 82-2008

CUSIP. No. 933901100

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 21, 2002

War Eagle Mining Company Inc. (TSX VENTURE:WEM) has signed a Joint Venture Agreement with Strategic Metals Ltd. on the Pike Mineral Property located in the Wernecke Mountains of the Yukon. The basic terms of the option are that WEM may earn a 70% interest in the property by issuing 150,000 shares of WEM and incurring exploration expenditures of $400,000 over a 3-year period.

The Pike claims cover a large Proterozoic age, breccia system containing iron oxide, copper, gold and uranium mineralization. The age, alteration and metal signature resembles the world class Olympic Dam Deposit in Australia.

In reports written by Archer, Cathro and Associates (1981) Limited the main exploration targets are two zones near the base of a talus slope that have yielded numerous angular float specimens containing native gold, pitchblende and brannerite in quartz/barite with assays ranging from less than one oz/ton gold to 2,078.6oz/ton gold (71,266g/t gold) and 4.66% uranium. The mineralized float trains are about 65m apart, 5 to 20m wide and each 100m long. Approximately 200m uphill from the float trains is a well-developed soil anomaly associated with hematitic breccia, which measures 960m by 300m with values from 25 ppb to 950 ppb gold. The source of gold in this anomaly is not yet explained. The gold anomaly approximately coincides with a copper anomaly 700m long by 300m wide containing values between 200 and 7800 ppm copper.

Initial work on the property will start in early September and will include sampling of high grade gold zones plus prospecting and mapping combined with re-evaluation of soil geochemical and geophysical data to identify potential high grade and bulk tonnage drill targets. Archer, Cathro & Associates (1981) Limited, which carried out the past work on the property, will be the operator of the project during the earn-in period.

The company has reached agreement as to a non-brokered private placement of 1,100,000 units at a price of $0.14 per unit, subject to TSX Venture Exchange approval. Each unit consists of one common flow through share and one-half of one non-transferable share purchase warrant, with each whole share purchase warrant entitling the holder to purchase one additional common share of the Company for a period of two years at a price of $0.28 per share. The subscriber will be entitled to a 90% tax deduction and will be subject to a 4 month hold priced.

"Terence F. Schorn, P. Geo"

President, War Eagle Mining Company Inc.

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of the contents of the foregoing.
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Publication:Business Wire
Date:Aug 21, 2002
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