Eagle Plains Announces Financing

Cranbrook, BC; 25 November, 2009: Eagle Plains Resources Ltd. (TSX-V:EPL) (the “Company” or “Eagle Plains”) announces that the Company intends to complete a brokered and non-brokered private placement to arms-length and non arms-length investors and insiders of the Company.

Application will be filed with the TSX Venture Exchange (TSX-V) to sell up to 2,500,000 Non-Flow-Through (“NFT”) units at a price of $.18 CDN per unit, each NFT unit consisting of a NFT common share and one-half NFT common share purchase warrant, each whole warrant exercisable to acquire one NFT common share at $.30 CDN for an 18 month period. 

The Company will also make application to offer up to 2,500,000 Flow-Through (“FT”) units at a price of $.22 CDN per unit, each FT unit consisting of a FT common share and one-half NFT common share purchase warrant, each whole warrant exercisable to acquire one NFT common share at $.30 CDN for an 18 month period. 

A 10% overallotment will be reserved, comprised of an additional 250,000 NFT units and an additional 250,000 FT units.

The common share purchase warrants are subject to an accelerated expiry if the published closing trade price of the Company’s common shares on the TSX Venture Exchange is greater than or equal to $.50 for any 10 consecutive trading days, in which event the holder will be given notice that the warrants will expire 30 days following the date of such notice. The common share purchase warrants may be exercised by the holder during the 30 day period between the notice and the expiration of the common share purchase warrants. 

A 7% commission or finders fee will be paid, either in cash or through the issuance of common shares at a deemed price of $0.18 per share, to registered dealers or arms-length third parties involved in the financing. 10% broker warrants to acquire non-flow-through shares at a price of $0.18 per share for a period of 12 months may be offered to qualified registered dealers. The financing is expected to close in mid-December, 2009.

Maximum gross proceeds of the offering, including the 10% overallotment, are expected to be $1,100,000 CDN. A portion of the proceeds from the sale of the shares will be used to advance exploration at various British Columbia, Yukon or Saskatchewan projects held by Eagle Plains. These expenditures will qualify as Canadian Exploration Expenses (“CEE”) as defined in the Income Tax Act and will be renounced to FT unit subscribers for the 2009 taxation year. Non-flow-through funds raised will be allocated for general working capital.


About Eagle Plains Resources

Eagle Plains continues to conduct research, acquire and explore metal projects in western Canada. In addition to holding mining royalties on various projects, the Company controls over 35 gold, base-metal and uranium projects, several with third parties including Prize Mining Corp. (TSX-V:PRZ), Waterloo Resources Ltd. (TSX-V:WAT.P), Touchdown Capital Inc. (TSX-V:TDW), 99 Capital Corp. (TSX-V:WDG) and XO Gold Resources Ltd. (a private B.C. company). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 53,600m (163,370’) of drilling and over $28.3 million in exploration spending on its projects since 1998. 

Expenditures during 2008 and 2009 on Eagle Plains’ projects were approximately $7,300,000, funded by Eagle Plains and third party partners. This work resulted in approximately 6,900m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development. 

On behalf of the Board of Directors

Signed

 

“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.