BCSC

Exemption Orders (Discretionary)

WAR EAGLE MINING COMPANY INC.

2001 BCSECCOM 748

IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418

AND

IN THE MATTER OF WAR EAGLE MINING COMPANY INC.

Exemption Order Under Section 9.1(1) of National Instrument 43-101

[para 1]
WHEREAS War Eagle Mining Company Inc. (the “Filer”) has applied to the Executive Director for an order under section 9.1(1) of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("43-101") that the requirement contained in 43-101 that at least one qualified person preparing or supervising the preparation of a technical report inspect the property that is the subject of the technical report (the “Personal Inspection Requirement”) will not apply to the Filer;

[para 2]
AND WHEREAS the Filer has represented to the Executive Director that;

1. the Filer is incorporated under the Company Act (British Columbia) with its head office in British Columbia;

2. the Filer is a reporting issuer under the Securities Act, R.S.B.C. 1996, c. 418 and is not in default of any requirements of the Act or the Securities Rules, B.C. Reg. 194/97;

3. under an option agreement (the “Option Agreement”) dated February 23, 2001, the Filer acquired an option to acquire a 50% interest in certain mineral claims known as the Mac Property;

4. under the terms of the Option Agreement, the Filer, among other things, is required to fund exploration expenditures of not less than $300,000 on the Mac Property on or before July 15, 2001;

5. in order to raise the funds to satisfy its exploration expenditure obligations, the Filer intends to complete an offering pursuant to a Short Form Offering Document in accordance with the policies of the Canadian Venture Exchange Inc.;

6. in order to comply with the requirements of the Short Form Offering Document, the Filer is required to file a technical report on the Mac Property prepared in compliance with 43-101;

7. section 6.2 of 43-101 requires at least one qualified person preparing or supervising the preparation of the technical report to inspect the property that is the subject of the technical report;

8. the Mac Property is located in the Northwest Territories and is not accessible for a property inspection in time for the Filer to complete the offering by way of Short Form Offering Document and satisfy its exploration expenditure obligations under the Option Agreement;

9. there is sufficient data available on the Mac Property, prepared by unrelated third party sources, for the preparation of a technical report by a qualified person without a property inspection; and

10. the proposed exploration program for 2001 on the Mac Property is an early stage mapping and prospecting program and a property inspection will not have significant utility to the public;

[para 3]
AND WHEREAS the Executive Director considers that to do so would not be prejudicial to the public interest;

[para 4]
IT IS ORDERED under section 9.1(1) of 43-101 that the Personal Inspection Requirement will not apply to the Filer in respect of the technical report to be filed by the Filer on the Mac Property in connection with the proposed offering by way of Short Form Offering Document, provided that the technical report and Short Form Offering Document include a statement that a personal inspection has not been conducted by the qualified person, as defined in 43-101, and the reasons why a personal inspection was not conducted.

[para 5]
DATED July 12, 2001.

Brenda Leong
Director