Gold Eagle Mines Ltd. announces CDN$80 million bought deal of common shares



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    TSX: GEA

    TORONTO, March 28 /CNW/ - Gold Eagle Mines Ltd. (TSX: GEA) ("Gold Eagle"
or the "Company") announced today that it has entered into a bought deal
agreement with a syndicate of underwriters led by Orion Securities Inc. Under
the agreement, the syndicate will purchase 8,900,000 common shares ("Common
Shares") of the Company at a price of CDN$9.00 per Common Share ("the Offering
Price") for gross proceeds of CDN$80,100,000. The Company will grant the
Underwriters an over-allotment option, to purchase up to an additional
1,335,000 Common Shares (CDN$12,015,000), exercisable at the Offering Price up
until the 30th day following the Closing Date. The Company expects to file a
Preliminary Short Form Prospectus with the applicable securities regulatory
authorities to qualify the Common Shares for distribution on April 3rd, 2007.
    The net proceeds of the offering will be used for the continued
exploration of Gold Eagle's Bruce Channel Discovery and to commence the
Regional Exploration Program.
    The transaction is subject to the receipt of all necessary regulatory and
stock exchange approvals. The offering is expected to close on or about
April 24th, 2007.
    The securities offered have not been registered under the U.S. Securities
Act of 1933 (the "1933 Act"), as amended and may not be offered or sold in the
United States except pursuant to available exemptions from the registration
requirements of the 1933 Act and applicable blue-sky laws and as are agreed to
by the Company and the underwriters. This release does not constitute an offer
for sale of securities in the United States.

    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.





For further information:

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

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GOLD EAGLE MINES LTD.

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