Eagle Plains Options Kalum Gold Project to MCI
Cranbrook, BC; 10 December, 2007: Eagle Plains Resources Ltd. (TSX-V:EPL) announces that it has reached agreement with Mountain Capital Inc. (TSX-V:MCI.P) whereby MCI may earn a 60% interest in the Kalum Property (the "Property") located approximately 35 kilometers northwest of Terrace, British Columbia in the Skeena Mining Division of British Columbia. In order to exercise the option and acquire a 60% interest in the Property MCI is required to make cash payments totaling $500,000, issue 500,000 common shares and make exploration expenditures of $4,000,000 over a period of five years, of which $5,000 has been paid as a refundable deposit and $20,000 and 50,000 shares are due to Eagle Plains upon closing. The exploration commitment in the first year of the agreement is $250,000. The Property is subject to a 1% net smelter returns royalty in favor of a third party. Closing is subject to acceptance for filing by the Exchange.
The Property is comprised of 20,762 hectares of contiguous claim units and is the subject of a report prepared by Peter M. Daignault, P. Geo. dated October 29, 2007 and entitled "2007 Exploration and Geological Report for the Kalum Property" which has been filed with the Exchange and will be filed on SEDAR following review by the Exchange.
The Property is centered upon a Cretaceous-age granodioritic stock of the Coast Crystalline Complex that has intruded Jurassic to Cretaceous-age sedimentary rocks of the Bowser Lake Group. A number of high-grade, vein-type gold occurrences are associated with the contact zone and magnetic signature of the intrusive stock. These occurrences have been explored by various operators and to various degrees over the past 80 years. All previous exploration efforts have been directed toward the discovery of high-grade stand-alone mineralization. The current Eagle Plains tenure represents the first time gold occurrences have been consolidated by a single company.
Eagle Plains initiated property acquisition in the Kalum area in 2003 and completed significant exploration programs on the property in 2003 and 2004. The programs included a VTEM airborne survey, extensive geochemical programs, geologic mapping, and a 19 hole diamond drill program. In addition, many of the historical showings on the Property were located, sampled and surveyed. The program was successful in consolidating and evaluating all historic showings, discovering new high-grade Au-Ag occurrences, and developing new exploration models to help focus exploration in new directions.
Recommendations for future work on the Property include continued grass roots exploration within previously unexplored structural zones. It is estimated that the exploration program will take two months to complete and cost $250,000.
About Eagle Plains Resources
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 and Golden Cariboo Resources Inc. (TSX-V:GCC). These agreements expose Eagle Plains to over $24.0 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 47,000m (155,000’) of drilling and over $20,000,000 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
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.