Eagle Plains/Mulligan Capital Corp Execute Letter of Intent to Option Eagle Lake, Saskatchewan Uranium Property

Cranbrook, B.C., August 22nd, 2006: Eagle Plains Resources Ltd. (TSX-V:EPL) and Mulligan Capital Corp (TSX-V:MCC.P) have executed a Letter of Intent whereby Eagle Plains has agreed to grant an option to Mulligan to earn a 60% interest in EPL’s 100% owned Eagle Lake uranium project located 28 km southeast of Cameco's Key Lake mining operation in north-central Saskatchewan, Canada.

The claims cover 20,000 acres (8,000 ha.) containing uranium mineralization discovered by Great Plains Development Company of Canada Ltd. during the 1969 Athabasca Basin uranium rush.  The 1969 work program was carried out under the supervision of R.W. (Bob) Termuende, later a founding director of Eagle Plains.

Under terms of the proposed agreement, Mulligan will incur $5,000,000 in exploration expenditures by December 31st, 2010, issue 1,000,000 common shares to EPL, and reimburse EPL all acquisition costs. A 1% royalty has been reserved for a third-party individual, and may be purchased at any time for $1,000,000.

Eagle Plains and Mulligan are planning an airborne geophysical survey of the property with work to commence immediately, funded by Mulligan. Following completion of the airborne geophysical survey and a National Instrument 43-101 compliant report on the property, Mulligan will have up to 30 days to determine if it wishes to proceed to complete the next phase work program on the property.

Exploration in the area now covered by the Eagle Lake property by Great Plains between 1969 and 1971 reportedly identified a float boulder train 1.5 kilometers in length.  The boulders reportedly consisted of white pegmatite with uranium stain as well as uranium/copper mineralization in sheared graphitic material. Historical records document that four boulders collected from the float train assayed 0.19, 0.32, 0.56, and 0.50% U3O8 (note these are historical results and cannot be confirmed by Mulligan or EPL). The boulders were collected from an area adjacent to a prominent north-south trending fault structure visible on government aeromagnetic surveys.  Great Plains reported high radon gas values from both water and soil samples collected near the uraniferous boulder train. Notably, the bedrock source for these float boulders was not located.

Subsequent work on the property in 1979 and 1980 by Bonn Energy Corporation resulted in the discovery of pitchblende mineralization in veins associated with fault structures. Reportedly this mineralization was visually distinct from the uraniferous pegmatite boulders discovered by Great Plains in the late 1960s, and therefore their source remains undetermined.  Following the 1979-80 program, the project geologist concluded in his technical report that “considerable uranium mineralization is present on the property” and that “The probability that this mineralization reflects the presence of a uranium deposit is sufficiently high that work should continue”. A comprehensive program was recommended to further assess the property, but was never carried out.

The Eagle Lake property lies within the Wollaston domain and consists of Aphebian metasedimentary gneisses and schists, including pelitic schists and gneisses with graphitic horizons. Mulligan and EPL will focus on exploring for uranium deposits in north to northwest-trending faults which are interpreted to have formed structural traps where uranium mineralization may have been deposited and preserved.

A location map and general history of the property area may be viewed here: Eagle Lake
 

Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 35 gold and base metal projects, many of which are joint-ventured with third parties including NovaGold Inc. (AMEX,TSX:NG), Alexco Resource Corp. (TSX-V:AXR), and Blind Creek Resources.  These agreements expose Eagle Plains to over $13,000,000 in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 30,000m (100,000’) of drilling and over $9,000,000 in exploration spending on its projects since 1998. During the 2005 season, EPL and its partners completed over 11,900m (39,000’) of diamond drilling on its properties.

This news release has been reviewed and approved by Tim J. Termuende, P.Geo., hereby designated as a “Qualified Person” under National Instrument 43-101.

On behalf of the Board of Directors

“Tim J. Termuende”
President and CEO

For further information on EPL, please contact Mike Labach at 1 866 HUNT ORE (486 8673)
Email: mgl@eagleplains.com or visit our website at http://www.eagleplains.com

 

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.