Metals - Mining

“We are extremely pleased that Polion has offered these substantial funds to Golden Eagle. We anticipate that these funds, once received, will allow us to cover current working capital requirements. We also anticipate that once we begin receiving this investment, we will be able to start the process of dismantling our Gold Bar mill and plant in preparation for shipping and re-erecting it on our Buen Futuro project in eastern Bolivia,” stated Terry C. Turner, Golden Eagle’s CEO. “Bringing the Buen Futuro gold and copper project on-line in 2005 is our highest priority. We intend to continue seeking additional debt financing of $10 million to complete the Buen Futuro project and bring the copper recovery circuit on faster than projected.”

In a Letter of Intent, Polion do Brasil, S.A., expressed its intention to invest $3.5 million in Golden Eagle by purchasing 3.5 million convertible preferred shares at $1.00 per share in eight equal monthly purchase amounts of $450,000. As these preferred shares are issued, they will earn a fixed annual dividend of 8% from their date of issue, which is also convertible to common shares. After a minimum holding period of one year on each monthly share purchase, Polion’s preferred shares may be converted to Golden Eagle common shares at 50% of the market price per share on the date of conversion, or $0.10 per share, whichever is greater. However, if Golden Eagle’s shares trade at $0.15 per share or less for the 15 trading days prior to conversion, then Polion may convert at 50% of the market price per share down to a minimum floor of $0.05 per share.

As long as Polion holds a minimum of 100,000 shares of preferred stock, it will be entitled to name one director to Golden Eagle’s Board of Directors. Based on discussions between Golden Eagle and Polion, Golden Eagle is optimistic that Polion will meet its investment commitment, however there are no guarantees that the funding offer will be completed as outlined.

Golden Eagle owns the Gold Bar mill and plant located in Eureka, Nevada. The Company has been preparing the engineering for the dismantling and re-erection of its mill and plant on its Buen Futuro site in Bolivia for the past six months, investing $500,000 in the process. Concurrently, Golden Eagle has carried out site preparations, surface rights acquisitions and infrastructure improvements on its Buen Futuro gold and copper deposit located 160 miles north of Santa Cruz, Bolivia, over the course of the past year.

The Buen Futuro project has current estimated proven and probable reserves of 84,000 troy ounces of gold and 82 million pounds of copper. However, the company believes that it can expand its proven and probable reserves with its projected drilling program within the zone of influence of its current reserves.

The company is still advancing its debt financing applications for $10 million with the Overseas Private Investment Corporation (OPIC) and the Andean Development Corporation (ADC). Golden Eagle’s CEO and CFO will be meeting with representatives of the ADC in La Paz this week.

‘We believe that our debt financing position is considerably enhanced by Polion’s expression of its intent to fund $3.5 million,” said Mr. Turner, the company’s CEO.

Golden Eagle also announced that it has discontinued its joint-venture with a small operator in the Tipuani Gold District. With the escalating price of diesel fuel and other operating costs, as well as the nature and size of the operation, Golden Eagle projected that the joint-venture was not going to achieve suitable returns.

Golden Eagle International, Inc. is a gold exploration and mining company located in Salt Lake City, Utah; and La Paz and Santa Cruz, Bolivia. The company is currently focusing its efforts on developing its mining rights on its Buen Futuro project within its 136,500 acres (213 square miles) in eastern Bolivia’s Precambrian Shield. Buen Futuro is projected to produce 5,900 troy ounces of gold and 4.4 million pounds of copper per month once brought on-line. The company also owns mining rights on 49,900 acres (77 square miles) in the Tipuani Gold District located in western Bolivia, which has produced 32 million ounces of gold in its known history. Golden Eagle is a mining company with a social conscience, having provided many humanitarian programs at its mine site, including the only hospital, doctor and nurse in Cangalli, Bolivia, for the past eight years, as well as having provided for the educational needs of the students of the area. The Company highly recommends that you review its disclosures, risk statements, previous press releases, annual reports, quarterly reports and current reports found at its website: www.geii.com

Cautionary Note Regarding Forward-Looking Statements and Risks:
Some of the statements in this press release are forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include the ability of Golden Eagle to obtain the necessary financing on reasonable terms, estimates of mineral reserves and future production levels, expectations regarding mine production costs, expected trends in mineral prices, and statements that describe Golden Eagle’s future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for gold and copper, technological and operational hazards in Golden Eagle’s mining and mine development activities, uncertainties inherent in the calculation of mineral reserves, mineral resources and metal recoveries, the timing and availability of financing, governmental and other approvals and other risk factors listed from time-to-time in Golden Eagle’s Form 10-K and its other reports filed with the Securities and Exchange Commission. Golden Eagle disclaims any responsibility to update forward-looking statements made herein.

Contact: Sabrina Martinez in Investor Relations: (801) 619-9320