TSX: GEA

TORONTO, May 9 /CNW/ - Gold Eagle Mines Ltd. (TSX: GEA) ("Gold Eagle" or the "Company") is pleased to announce its financial results for the period ended March 31st, 2008. (To review the complete unaudited Interim Consolidated Financial Statements and Management's Discussion and Analysis, please see Gold Eagle's SEDAR filings at www.sedar.com or Gold Eagle's website at www.goldeaglemines.com).

Gold Eagle continues to maintain a strong balance sheet with assets totalling $422.0 million at March 31, 2008. The assets consist mainly of the Gold Eagle mineral exploration property of $316.5 million and cash and cash equivalents of $103.3 million. Gold Eagle has no long-term debt as all funding for exploration expenditures has been provided through equity financings and the issuance of Gold Eagle common shares.

Gold Eagle is a development stage entity involved in the exploration and development of its 100% owned Gold Eagle property in the Red Lake gold mining camp in north-western Ontario, Canada. The Gold Eagle property remains the primary focus of the Company's efforts. Approximately $4.3 million was spent on the property during the first quarter of 2008, and approximately $1.7 million was spent on exploration equipment in support of the Company's Advanced Underground Exploration Program.

Gold Eagle's net earnings and basic and fully diluted earnings per share for the three months ended March 31, 2008 was $1.1 million and $0.01, respectively. Net earnings were triggered by the recognition of a $1.4 million future tax recovery due to the reduction of the combined federal and provincial tax rate applicable to the Company.

During the preparation of the Company's 2007 audited financial statements, an error was identified on the 2006 balance sheet relating to the accounting for unvested stock options granted to the Company's directors on December 21, 2006. The value of the unvested stock options and related future taxes was previously capitalized to the mineral exploration property. The non-cash adjustment of these items in the March 31, 2007 unaudited interim consolidated financial statements impacts the unaudited interim consolidated statements of operations and deficit for the Company. Additional information is provided in note 11 to the March 31, 2008 unaudited interim consolidated financial statements.

As at May 9, 2008, Gold Eagle remains well funded with a current cash position of approximately $99.8 million, no long-term debt and 101,106,868 million shares outstanding (107,156,831 on a fully diluted basis).

About Gold Eagle

Gold Eagle Mines Ltd is a Canadian based junior natural resource company developing a significant new gold discovery in the prolific Red Lake gold camp, located in Northern Ontario, Canada.

Forward-Looking Statement

The statements made in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Gold Eagle's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.goldeaglemines.com

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