Eagle Plains Announces the Execution of a Formal Option Agreement with Billiton Exploration Canada Limited

Cranbrook, B.C.:Eagle Plains Resources Ltd. (EPL:ASE) (the "Company") is pleased to announce the execution of a formal Option Agreement with Billiton Exploration Canada Limited respecting the Company's North Findlay Property, the completion of a private placement with Billiton Metals Canada Inc. for gross proceeds of $450,000, and the completion of a first closing of a concurrent Unit private placement for gross proceeds of $281,000, all as initially announced May 20, 1999. The proceeds of the private placements will be used to carry out a $375,000 diamond drilling program on the North Findlay Property, and to fund the Company's other 1999 exploration programs.

As previously announced, Billiton Metals Canada Inc. has purchased 1,125,000 Common Shares of the Company at a price of $CDN 0.40/share, 875,000 of which have been issued a "flow-through" shares. Billiton Metals Canada Inc. also received 1,125,000 Warrants (exercisable for one year at $0.55/share, and for a second year at $0.75/share) and 1,000,000 Series "B" Warrants (exercisable at $0.75/share for a period of 36 months conditional upon Billiton Exploration Canada Limited funding $400,000 in exploration expenditures under the above referenced North Findlay Property Option Agreement).

Aggregate gross proceeds of $281,000 have been raised through the concurrent private placement issuance of 702,500 Units to arm's length and non-arm's length investors. Each Unit is comprised of one "flow-through" Common Share and one Warrant. A maximum of 1,125,000 Units are being offered by the Company, with a second closing expected to occur prior to September 30, 1999.

On Behalf of the Board of Directors

Tim J. Termuende, P.Geo.
President and CEO