Eagle Plains Makes Strategic Investment in Northern Freegold

Cranbrook, B.C., 04 April, 2013: Eagle Plains Resources Ltd. (EPL:TSX-V), through its wholly-owned subsidiary TerraLogic Exploration Inc. has received conditional TSX-V approval to purchase from Northern Freegold Resources Ltd (NFR:TSX-V) 8,333,333 units at $.06 per unit (a unit consisting of a common share and one-half warrant) for a total consideration of CDN$500,000. The investment by Eagle Plains/TerraLogic represents approximately 6% of the total issued and outstanding shares of Northern Freegold and is conditional on a number of commitments by both NFR and TerraLogic. Eagle Plains and Northern Freegold have certain directors and/or executive officers in common, who have abstained from voting on the transaction.

Northern Freegold Resources was listed on the TSX-V in 2007 with the primary objective of developing the Freegold Mountain Project, located by road 70km west of Carmacks, Yukon. Over 108,000m of drilling in 815 holes has been completed on the property, resulting in the definition of a multi-million ounce gold and multi-million pound copper resource (with associated silver and molybdenum) on the property in the Nucleus and Revenue Zones (www.northernfreegold.com). The potential to increase these resources is considered to be significant. A higher grade polymetallic deposit also exists at the Tinta Hill Zone, and numerous occurrences of high-grade gold mineralization exist elsewhere on the 6km x 35km property.

Preliminary metallurgical studies for the Nucleus and Revenue Zones were released by NFR in September, 2012 and indicated “excellent overall recoveries of copper, gold, molybdenum and silver”.

On February 20th, 2013, Northern Freegold released a positive Preliminary Economic Assessment (“PEA”), prepared by GeoVector Management Inc. The PEA contemplated an open pit mining project which expects to yield a pre-tax net present value (5%) of $614.8 million and an internal rate of return (“IRR”) of 23.4% using three year trailing average prices of US $1455 per ounce gold, US $3.65 per pound copper, US $14 per pound molybdenum, and US $27.55 per ounce silver respectively. At recent prevailing spot commodity prices the pre-tax NPV (5%) and IRR increase to $779.6 million and 29.7% respectively. “The results of the PEA demonstrate the potential technical and economic viability of a new gold with copper and molybdenum mine on the property” (NFR news release February 20, 2013).

Tim Termuende, P.Geo., President and CEO of Eagle Plains and a founding director of Northern Freegold commented recently “Eagle Plains and our subsidiary TerraLogic Exploration have established a healthy treasury over the years through our focussed project generator/joint-venture model, and is now seeking to effectively deploy a portion of these funds. It is during these challenging economic markets that opportunities present themselves- Northern Freegold appears to represent just such an opportunity. It is EPL’s managements’ opinion that despite making significant positive milestones on its Freegold Mountain Project, Northern Freegold remains undervalued. Our investment in Northern Freegold at this time will not only assist NFR in further advancing the Freegold Mountain Project, but will also create opportunities for TerraLogic to increase its exposure to advanced project exploration and development. We see this as a beneficial arrangement for all parties concerned” 

About Eagle Plains Resources

Based in Cranbrook, B.C., 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 $17M in exploration spending, $1.8M cash to EPL and a total of 18M 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 $14M, which was funded by Eagle Plains and third-party partners. This exploration work resulted in approximately 15,000m of diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 23 projects at various stages of development. 

About TerraLogic Exploration

TerraLogic is a wholly-owned subsidiary of Eagle Plains, established in 2004 to carry out exploration activities for Eagle Plains and other third-party clients (www.terralogicexploration.com). Based in Cranbrook, B.C., TerraLogic is headed by President Jesse Campbell, B.Sc., and consists of a talented team of seasoned exploration geologists and field technicians that have worked for numerous third-party clients throughout North America, managing over $48 million in exploration funding, resulting in numerous mineral discoveries. 

General 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.