Eagle Plains Resources Ltd. Announces its Guidance Regarding Computation of the Shareholders' Adjusted Share Cost Base for Copper Canyon New Shares Issued in Connection with its Plan of Arrangement
Cranbrook, B.C., February 19th, 2007: Eagle Plains Resources (TSX-V:EPL) is pleased to provide guidance regarding the computation of shareholders' adjusted cost base for Canadian tax purposes in connection with its Plan of Arrangement (the "Arrangement") which became effective June 9, 2006. Under the Arrangement, each Eagle Plain shareholder of record on June 1, 2006 (the share distribution record date) received one common share in Copper Canyon Resources Ltd. for each common share of Eagle Plains held by such shareholder. In order to compute the adjusted cost base for Canadian tax purposes of the shares of the two companies resulting from completion of the Arrangement, a shareholder should apportion the adjusted cost base of the Eagle Plains Common Shares held immediately prior to the share distribution record date on the following basis: 40.65% should be allocated to the post-Arrangement Eagle Plains Common Shares and 59.35% to the Copper Canyon Common Shares, respectively.
The Copper Canyon Common Shares commenced trading on the TSX Venture Exchange on June 22, 2006 under the symbol "CPY.
A description of the Arrangement and of Eagle Plains and Copper Canyon upon completion of the Arrangement is set out in the management information circular of Eagle Plains dated May 15, 2006 which is available on SEDAR at www.sedar.com.
Eagle Plains Resources continues to conduct research, acquire and explore metal projects in western Canada. The Company controls over 35 gold, base-metal and uranium projects, many with third parties including Alexco Resource Corp. (TSX-V:AXR), Wellstar Energy Corp. (TSX-V:WST), Solomon Resources Inc (TSX-V:SRB), Blue Sky Uranium Corp. (TSX-V:BSK), Blind Creek Resources and Golden Cariboo Resources Inc. (TSX-V:GCC). These agreements expose Eagle Plains to over $14.0 million in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 38,000m (125,000’) of drilling and over $16,000,000 in exploration spending on its projects since 1998. During the 2006 season, EPL and its partners completed over 7,000m (23,000’) of diamond drilling on its properties.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.