Gold Eagle Mines Ltd. - 2008 second quarter financial results



    TSX: GEA

    TORONTO, Aug. 11 /CNW/ - Gold Eagle Mines Ltd. (TSX: GEA) ("Gold Eagle"
or the "Company") is pleased to announce its financial results for the period
ended June 30th, 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 $475.3 million at June 30th, 2008. The assets consist mainly of the
Gold Eagle mineral exploration property of $321.7 million and cash and cash
equivalents of $147.0 million. Gold Eagle has no significant 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 $4.9 million was spent
on the property during the second quarter of 2008, and approximately $3.1
million was spent on exploration equipment in support of the Company's
Advanced Underground Exploration Program.
    Gold Eagle's net loss and basic and fully diluted loss per share for the
three months ended June 30th, 2008 were $0.5 million and $0.00, respectively. 
Gold Eagle's net earnings and basic and fully diluted earnings per share for
the six months ended June 30th, 2008 were $0.7 million and $0.01,
respectively.
    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 June 30th, 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 13 to the June 30th, 2008 unaudited interim consolidated
financial statements.
    As at August 11th, 2008, Gold Eagle remains well funded with a current
cash position of approximately $141.6 million, no long-term debt and
106,631,730 shares outstanding (116,482,124 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

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release and the
    information contained herein.

    %SEDAR: 00024756E




For further information:

For further information: please feel free to contact our offices at:
Tel: (416) 867-8998, Fax: (416) 867-9393, Email: info@goldeaglemines.com;
www.goldeaglemines.com

Organization Profile

GOLD EAGLE MINES LTD.

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