Eagle Plains/Blue Sky Execute Letter of Intent on Karin Lake Uranium Project
Cranbrook, B.C., February 15th, 2007: Eagle Plains Resources (TSX-V:EPL) and Blue Sky Uranium Corp. (TSX-V:BSK, WKN:AOMKXP) have executed a Letter of Intent whereby Eagle Plains has agreed to grant Blue Sky the option to earn a 60% interest in the 35,000 ha Karin Lake property located 35 km east of Cameco’s Key Lake mining operation in north-central Saskatchewan, Canada. The project area is contiguous to the 34,000 ha Eagle Lake property, owned 100% by Eagle Plains and currently under option to Blue Sky.
At Karin Lake, historical assays from the area returned values up to 8.0% U3O8 (AR 74A14-0023). Uranium mineralization occurs both as low-grade material in granitic pegmatites and associated granites, as well as higher-grade fracture controlled mineralization in pegmatites and metasediments. Additional areas were targeted to cover known uranium and molybdenum showings, including a showing which comprises several trenches in a pegmatite stock containing disseminated and fracture-hosted uranium and molybdenum mineralization. Historical assays reported up to 0.226% U3O8, and 0.67% MoS2 (AR 74-A-11-NW-0026). A preliminary scintillometer survey conducted over the area this fall by Eagle Plain’s suggests that the area is prospective.
Acquisition of the property followed an airborne geophysical survey and ground geological program carried out under the supervision of Eagle Plain’s geologist Jarrod A. Brown, P.Geo. Under terms of the proposed agreement, Blue Sky will incur $2,500,000 in exploration expenditures by December 31st, 2011, issue 500,000 common shares to EPL and reimburse EPL all acquisition costs. Blue Sky has agreed to issue Eagle Plains 150,000 shares and complete $100,000 in exploration expenditures during the first year.
Eagle Plains now controls over 110,000 ha (1,100 sq. km.) within the Wollaston Domain; the same geologic sequence which hosts most of Saskatchewan’s prolific uranium deposits including Key Lake, Millenium, McArthur River, Cigar Lake, Midwest, Eagle Point, and others. EPL has successfully attracted partners who have collectively committed to spending $12,500,000 on exploration of the projects, effectively giving EPL risk-free exposure to high-quality targets while receiving cash and share payments from its respective partners.
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.
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 Alexco Resource Corp. (TSX-V:AXR), Wellstar Energy Corp. (TSX-V:WST), Solomon Resources Inc (TSX-V:SRB), 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 $14.0 million in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration, Viceroy Resource Corp. 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 2006 season, EPL and its partners completed over 7,000m (23,000’) of diamond drilling on its properties.
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.