Eagle Plains Announces $4.5M Financing


Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:TSX-V) announces that it intends to complete a brokered public offering to raise up to $4,500,000 by way of Offering Memorandum to arm’s-length investors. First Associates Investments Inc. will be lead broker for the offering on a best efforts basis and subject to due diligence, though a sellers group is expected to involve various investment houses.

Through its agent, Eagle Plains will offer a minimum of 2 million and a maximum of 3 million units at $1.50/unit to purchasers in British Columbia, Alberta, Saskatchewan and Ontario. Each unit will consist of two common shares and one flow-through common share with one non-transferable share purchase warrant, and will be subject to a four-month hold period. Each warrant will entitle the holder to acquire one additional common share for a period of two years at a price of $1.00 per share. The common share purchase warrants are subject to an accelerated expiry if the published closing trade price of the common shares on the TSX Venture Exchange is greater than or equal to $1.00 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.

First Associates, as agent for this offering, will be paid a commission of 7.5% on the gross proceeds of the offering, plus 10% agents units (200,000-300,000 units) exercisable at $1.50 per unit for a period of two years. Each agents unit will be exercisable into three common shares and one common share purchase warrant. Each agents warrant will entitle the agent to acquire one common share at an exercise price of $1.00 per share for a period of 24 months from the closing date. The financing is expected to be completed by late February.

Proceeds from the offering will be used to advance exploration work on Eagle Plains’ 100% owned Kalum property located near Terrace, BC, and for property research, general corporate and working capital purposes. The offering is subject to execution of agency agreements and TSX Venture Exchange acceptance which is expected in the ordinary course.

Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. Through a network of prospectors, consultants and experienced contractors in addition to seasoned employees and a well-rounded Board of Directors, the Company has assembled a diverse portfolio of gold and base-metal properties. EPL seeks to attract joint-venture participation on its properties, thereby leveraging exploration spending to the ultimate benefit of the Company’s shareholders. In recent years, Eagle Plains has completed option agreements with Billiton Exploration Canada Ltd., Rio Algom Exploration Inc., Kennecott Canada Exploration Inc., NovaGold/SpectrumGold Inc., Viceroy Resource Corp. and numerous other junior exploration companies, resulting in nearly 10,000m (33,000’) of drilling and over $5,000,000 in exploration spending on its properties since 1998.

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.