Eagle Plains Sells Justin, Hit NSRs to Gold Royalties Corporation for $500,000 Share Consideration

Yukon Territory |

Cranbrook, B.C., 26 September, 2012: The Board of Directors of Eagle Plains Resources Ltd. (TSX-V:EPL) (the “Company” or “Eagle Plains”) announces that it has entered into an agreement with Gold Royalties Corporation (TSX-V:GRO)(“Gold Royalties”) whereby Gold Royalties has agreed to purchased the Net Smelter Royalties (“NSRs”) currently held by Eagle Plains relating to any future production at the Justin and Hit gold properties, both located in the Yukon Territory. Eagle Plains will consideration of $500,000, payable through the issuance of 625,000 common shares of Gold Royalties at a deemed price of $0.80 per share. Closing of the Transaction, which is expected to occur on or about October 5, 2012, is subject to certain conditions, including approval of the TSX Venture Exchange.

“This transaction is consistent with Eagle Plains’ business model as a prolific prospect generator. By accepting share consideration in Gold Royalties, a company our management deems to have good growth potential, EPL can continue to carry out high-risk generative and grassroots exploration work while minimizing shareholder dilution,” stated Tim Termuende, P.Geo., President and CEO.

Eagle Plains holds a net 2% NSR on the Justin Gold Project, an early-stage exploration project being advanced by Aben Resources Inc. (“Aben”) located approximately 35 kilometers southeast of the Cantung Mine in Yukon. 

Eagle Plains also holds a net 2% NSR on the Hit Gold Project, an early-stage exploration project being advanced by Aben located in central Yukon, approximately 27 kilometers north-northeast of MacMillan Pass and west of the Yukon/NWT border. 

Aben holds the exclusive right to purchase one-half of each of the Justin and Hit Royalties for a one-time cash payment of $1,000,000 each.

Eagle Plains has agreed to a contractual escrow period whereby all of the equity issued in the transaction will be subject to a two (2) year hold period.

About Eagle Plains Resources

Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. Since 1992, EPL has been acquiring and developing early stage projects utilizing an in-house team of geologists, technicians and specialists. Considered a prolific project generator with over 35 properties, EPL invites joint venture participation to expedite development, reduce risk and enhance exposure to discovery. 

Current third party agreements if maintained to completion expose EPL to over $50M in exploration expenditures, $6M cash and 14M shares in partner companies. Completed agreements have yielded over $5M in exploration spending, $900,000 cash to EPL and a total of 12M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp. and numerous others. 

Expenditures during 2011 and 2012 on Eagle Plains-related projects were approximately $13M, which was funded by Eagle Plains and third-party partners. This exploration work resulted in approximately 16,000m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development. 

The contents of this news release have been reviewed and approved by Tim J. Termuende, P.Geo.

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.