Eagle Plains Options Pine Channel Gold Project to Tri Capital

Saskatchewan | May 12, 2021

Cranbrook, B.C., May 12th, 2021: Eagle Plains Resources Ltd. (TSX-V:EPL) (“EPL” or “Eagle Plains”) and Tri Capital Opportunities Corp (“TCAP”, TCAP.P:TSX-V) have executed a formal option agreement (the “Option Agreement”) whereby TCAP may acquire up to an 80% interest in EPL’s 6,500 ha, 100%-owned Pine Channel project located 43 km west of Stony Rapids, Saskatchewan (the “Property”). Limited drilling has been completed in and around the property area by past operators, which resulted in the successful delineation of mineralization to shallow depths. Potential to test for further continuity at depth is considered to be excellent.

To earn an 80% interest in the property, TCAP will complete $3,000,000 in exploration expenditures, issue 2,000,000 voting class common shares to Eagle Plains and make $150,000 in cash payments over a 4-year period (see details below). EPL will retain a 2.0% net smelter returns royalty on the Property (subject to underlying royalties on certain areas of the Property), which royalty may be purchased by TCAP at any time for CDN$1,000,000. TCAP will be operator of the project.

Eagle Plains acquired the project in 2018-2020 by staking and in part, by purchase from third-party vendors. In 2019 and 2020 EPL completed field programs designed to evaluate and confirm the nature of mineralization previously documented at historical showings.

See Pine Channel Project Map here

Pine Channel Gold Property Summary

The Pine Channel Property consists of 28 mineral dispositions covering 6,502.63 hectares located approximately 40 km west of Stony Rapids, Saskatchewan-the logistics/business hub for northern Saskatchewan. The property can be accessed year-round by float- or ski-equipped aircraft from Stony Rapids, SK. or Fort MacMurray, AB. The eastern and northern part of the property is transected by a high-voltage powerline. Most geological fieldwork is limited to late May to October but other operations such as geophysical surveys and diamond drilling can be completed year-round.

Highlights from documented historical work include:

North Norite Bay (SMDI 2183): 407.96 g/t (14.39 oz/T) Au over 0.5 m (drill hole)
ELA (SMDI 1574): 39.96 g/t (1.41 oz/t) Au over 0.55 m (drill hole)
Holes G-1 and G-3 (SMDI 2329): 3.20 g/t Au over 1 m (drill hole)
Occurrence No. 6/Occurrence No. 8 (SMDI 1581): 90.6 g/t (3.20 oz/T) Au over 0.2 m (trench)
Cole Lake Ni-Cu (SMDI 1583): 0.45% Ni over 7.0 m (drill hole), 6.2 g/t Au, 0.01% Ni and 0.06% Cu over 3.0 m (trench)

The main deposit type that is being explored for at Pine Channel is structurally controlled vein-quartz (lode) gold deposits. Mineral occurrences on the Pine Channel Property contain predominantly gold, with rare base-metal occurrences. Within the Pine Channel tenures there are eighteen historical showings reported by the Saskatchewan Mineral Deposit Index (SMDI).

Government mapping in the Pine Channel area dates from 1913, with the first industry work reported in 1950. A total of 51 assessment reports have been filed within the current Pine Channel tenure area. Past operators include Golden Rule Resources Ltd. and Colchis Resources Ltd. who were both active on the project during the 1980’s, the last sustained period of exploration in the area. The most recent work prior to Eagle Plains acquiring the claims in 2018 was in 2013 when the area was flown with an airborne Variable Time Domain Electromagnetic (“VTEM”) survey focused on locating targets for diamond exploration. There has been a total of 6,066 meters of diamond drilling in 115 historic holes completed within the current Pine Channel property claim boundaries with the majority of the holes completed less than 100 meters in length. Although the wide-spaced drilling did intersect significant gold mineralization in places, much of the drilling was completed using thin diameter core which is considered ineffective for assessing the high-grade “nuggety” gold shears and veins found at Pine Channel.

The first recorded systematic exploration work on the Pine Channel property was in 1950 by Goldfields Uranium Mines. The first significant program on the property was in 1980 by Golden Rule Resources who completed 246 line-km of airborne EM (INPUT) and magnetic surveying. Follow-up ground work located 11 significant occurrences. From 1985-1988 Colchis Resources completed VLF-EM geophysics, biogeochemical surveys, prospecting, soil sampling and trenching followed by shallow diamond drill testing of selected targets.

The Pine Channel project lies within the Tantato Domain which is composed of highly deformed gneisses which form the eastern margin of the Archean Rae Craton. Metamorphic rocks which have been subject to varying degrees of strain form the majority of the property area.

The above results were summarized from SMDI descriptions and assessment reports filed with the Saskatchewan government. Management cautions that historical results were collected and reported by past operators and have not been verified nor confirmed by a Qualified Person, but form a basis for ongoing work in the Pine Channel property area.

In 2019-2020, Eagle Plains completed field programs focused on prospecting and mapping in areas of known mineral occurrences. The work confirmed the widespread occurrences of auriferous quartz veins and associated shear systems in the Pine Channel property. Analytical results from the seventy-two rock samples collected in 2020 range from 6 ppb Au to 68,400 ppb Au. Twenty-three of the samples returned greater than 1 g/t Au, and eight returned greater than 10 g/t Au. The most encouraging of the known showings are the ELA Shaft showing (SMDI 1574) and Occurrence No. 6 and No. 8 (SMDI 1581), which both demonstrate anomalous gold geochemical results and potential for extension of known mineralization along strike.

Pine Channel Option Details

Pursuant to the terms of the Option Agreement, upon and subject to receipt of Exchange acceptance for TCAP’s Qualifying Transaction, TCAP will have the right to acquire an 80% interest in the Pine Channel Property by:

(a) paying to EPL an aggregate of CDN $150,000 in cash according to the following schedule:

(i) $25,000 on the Effective Date (date of execution of the formal agreement);
(ii) an additional $25,000 in cash on or before December 31st, 2021;
(iii) an additional $50,000 in cash on or before December 31st, 2022; and
(iv) an additional $50,000 in cash on or before December 31st, 2023;

(b) issuing to EPL an aggregate of 2,000,000 Shares, according to the following schedule:

(i) 200,000 Shares on the Bulletin Date;
(ii) an additional 300,000 Shares on or before December 31st, 2021;
(iii) an additional 300,000 Shares on or before December 31st, 2022;
(iv) an additional 500,000 Shares on or before December 31st, 2023; and
(v) an additional 700,000 Shares on or before December 31st, 2024; and

(i) $500,000 on or before June 30th, 2022;
(ii) an additional $500,000 on or before June 30th, 2023;
(iii) an additional $800,000 on or before June 30th, 2024; and
(iv) an additional $1,200,000 on or before June 30th, 2025.

Upon the exercise of the Option and the acquisition of an 80% interest in the Pine Channel Property by TCAP, the Optionor will retain a 2.0% net smelter returns royalty on the Pine Channel Property, and 1.0% of the net smelter returns royalty may be purchased by TCAP at any time for CDN$1,000,000. TCAP will be Operator of the project throughout the term of the option.

Charles C. Downie, P.Geo., a “qualified person” for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects and a Director of Eagle Plains Resources Ltd., has prepared, reviewed, and approved the scientific and technical disclosure in this news release.

About Eagle Plains Resources

Based in Cranbrook, B.C., Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. The Company is committed to steadily enhancing shareholder value by advancing our diverse portfolio of projects toward discovery through collaborative partnerships and development of a highly experienced technical team. Eagle Plains also holds significant royalty interests in western Canadian projects covering a broad spectrum of commodities. Management’s focus is to advance its most promising exploration projects. In addition, Eagle Plains continues to seek out and secure high-quality, unencumbered projects through research, staking and strategic acquisitions. Throughout the exploration process, our mission is to help maintain prosperous communities by exploring for and discovering resource opportunities while building lasting relationships through honest and respectful business practices.

Expenditures from 2011-2020 on Eagle Plains-related projects exceed $22M, the majority of which was funded by third-party partners. This exploration work resulted in approximately 37,000 m of diamond-drilling and extensive ground-based exploration work facilitating the advancement of numerous projects at various stages of development.

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 https://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.