GOLD EAGLE MINES LTD.

Gold Eagle Mines Ltd. Announces Closing of Over-Allotment Option

TORONTO, May 17, 2007 – Gold Eagle Mines Ltd. (TSX: GEA) (OTCBB: GEAFF) (“Gold Eagle” or the “Company”) announced today that it has closed the over-allotment option previously granted to the syndicate of underwriters co-led by Orion Securities Inc. and Westwind Partners Inc. and including, BMO Nesbitt Burns Inc., Dundee Securities Corporation and Genuity Capital Markets (collectively, the “Underwriters”) in connection with the bought deal financing which closed on April 24, 2007. Pursuant to the over-allotment option, the Underwriters purchased an additional 1,000,000 common shares of the Company at a price of $9.00 per share for additional gross proceeds of $9,000,000.

In total, including the over-allotment option, the Company has issued 9,900,000 common shares pursuant to this offering for total gross proceeds of $89,100,000.  The net proceeds of the offering will be used for the continued exploration of Gold Eagle’s Bruce Channel Discovery, including a work program to sink an exploration shaft to facilitate continued exploration of the mineralized envelope.

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
This News Release contains forward-looking statements regarding the proposed use of proceeds from the offering.  Forward-looking statements may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s current 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

Contact Us
For further information please feel free to contact our offices at:
Tel: 416-867-8998; Fax: 416-867-9393
www.goldeaglemines.com