Eagle Plains/Sandstorm Execute Option Agreement on Elsiar Project, West-Central B.C.
Cranbrook, B.C., 23 January, 2008: Eagle Plains Resources Ltd. (TSX-V:EPL) and Sandstorm Resources Ltd (TSX-V:SSL.P) have executed a formal agreement whereby Sandstorm may earn a 60% option in the Elsiar copper-moly-gold property by making exploration expenditures of $3,000,000 and completing payments of 700,000 shares and $500,000 cash by the fifth anniversary. A 1% NSR is reserved for Eagle Plains. Sandstone may increase its interest in the property to 75% by delivering a bankable feasibility study by 2015.
The property is located 40km north of Terrace, B.C. and is held 100% by EPL, subject to a 1% NSR in favor of B. Kreft. The project area has seen little historical activity and was acquired by Eagle Plains due to the presence of a strong multi-element geochemical signature in stream sediments. It benefits from excellent infrastructure including logging roads, hydroelectric power lines and close proximity to rail and deep-water international ports in Kitimat and Prince Rupert.
The property was acquired by Eagle Plains in 2003 and was subsequently optioned to Northern Continental Resources which carried out approximately $1,000,000 in exploration work during 2004 and 2005, including an airborne geophysical survey and 20-hole, 7900’ (2,400m) drilling program.
The property hosts widespread mineralization in surface occurrences over a 3.5 sq. km. area. Both surface and drillhole data suggest the presence of a well-developed copper-molybdenum porphyry system with high-grade Au mineralization present in shears and veins. The 2005 drill program intersected high-grade Au mineralization with values ranging from trace quantities to up to 14.0g/T Au over 1.0m (DDH LC05018). Molybdenum mineralization was encountered in most holes, with assay values ranging from trace quantities to .01% Mo over 50.0 m, including 0.4% Mo over 6.0m (DDH LCO5016). Cu mineralization ranged from trace quantities to 0.1% Cu over 15.0m (DDH LC05004).
About Eagle Plains
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 Teck Cominco Ltd (TSE:TCK), Alexco Resource Corp. (TSX:AXR;AMEX:AXU), Wellstar Energy Corp. (TSX-V:WST), Blue Sky Uranium Corp. (TSX-V:BSK), Blind Creek Resources, Mountain Capital Inc. (TSX-V: MCI.P) and Golden Cariboo Resources Inc. (TSX-V:GCC). These agreements expose Eagle Plains to over $20 million in exploration expenditures over a five year period. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration, 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 2007 season, EPL and its partners completed over 9,000m (30,000’) 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
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.