Eagle Plains Provides Analytical Results from Reverse Circulation Drill Program at Yellowjacket Project, Northwestern BC

Cranbrook, B.C., January 06, 2011: Eagle Plains Resources Ltd. (EPL:TSX-V) has received complete analytical results for the 2010 reverse circulation drill program at the Yellowjacket project. In the fall of 2010, Eagle Plains conducted a 64-hole drill program at the Yellowjacket property using a reverse circulation (“RC”) drill rig. A total of 2181 meters in 64 holes was completed over a 30 day period. The drilling consisted of a series of shallow, closely spaced angle holes designed to delineate mineralization and structural controls and to test an area designated for the next open pit mining phase. 

RC Drill Highlights:

L100E-60B:

• 10.19-16.28m : 6.09m @ 26.8 g/t Au 
• Including 13.23-15.27m: 2.04m @ 78.71g/t Au 
• Also Including 14.25-15.27m: 1.02m @ 138.26g/t Au 

L077E-48A: 

• 27.68-38.85m : 11.17m at 5.83g/t Au 
• Including 27.68-29.71m: 2.03m at 6.02g/t Au 
• Also Including 27.68-28.69m: 1.01m at 10.53g/t Au 
• Including 36.82-38.85m: 2.03m at 25.12g/t Au 
• Also Including 37.84-38.85m: 1.01m at 46.63g/t Au 

L076E-18A: 

• 8.07-16.81m : 8.74m @ 7.73 g/t Au 
• Including 12.75-14.78m: 2.03m @ 30.48g/t Au 

*intervals interpreted to approximate true thickness

Detailed Description of Drilling

The 2010 drill program targeted an area directly east of the 2009 pit extension. The tight-spaced drill grid was designed to test the projected pit to a bedrock depth of 25 meters. The data from the program will be used to build geologic models for pit design and grade control. The area of the Pine Creek fault zone that was drilled defined a wedge-shaped package of volcanics (andesites and lamprophyres) sandwiched within carbonate-altered ultramafics, and bounded below by a major fault zone. 

Two main gold bearing zones were identified. Gold mineralization is associated with quartz stockwork and intense Fe-carbonate alteration within the ultramafic rocks and within quartz-stockwork associated with silicified and pyritic volcanic rocks. 

Chuck Downie, P.Geo VP Exploration states that “we are encouraged by the presence of two relatively continuous, near surface mineralized gold zones within the area of the next pit. The tight-spaced drilling will give us a very detailed geologic model which will greatly enhance the effectiveness of grade control during our mining operation”. 

Table of Selected 2010 Drill Results

The drilling was oriented perpendicular to the known structural trends and it is believed that most of the drill intercepts represent true widths of the mineralized zones.

Analytical Details and QAQC

Sampling started at the surface with the overlying placer material and the bedrock / placer interface sampled separately from the bedrock. Bedrock cuttings were sampled continuously over 1.016m intervals. In total, 1590 bedrock samples and 171 placer material samples were sent to Stewart Group of Kamloops, BC, an ISO17025 accredited analytical facility, for Au-4 500g Screen Metallic Assay.

QAQC: External QAQC samples, consisting of blanks, Au standards, and sample duplicates, were routinely introduced into the sample chain of custody. A total of 188 check samples were also sent to ALS-Chemex of Vancouver, BC for check analysis via 500g Screen Metallic Assay. Statistical analysis of the QAQC and check data for Au data was completed and the results are consistent with all analytic procedures completed by Stuart Group being well within acceptable parameters.

Geological exploration contracting services on the Yellowjacket property during 2010 were provided by TerraLogic Exploration of Cranbrook, B.C., (a wholly-owned subsidiary of Eagle Plains), Merlin Geosciences Inc. of Atlin, BC and the Atlin Tlingit Development Corporation. Reverse circulation drilling was contracted to Northspan Exploration of Kelowna, B.C. 

Overall project supervision was done by C.C. Downie, P.Geo., hereby designated as a qualified person under National Instrument 43-101 and who also reviewed and approved technical aspects of this news release. 

Yellowjacket Project Summary

The Yellowjacket Project is located 9 km east of Atlin, BC and is accessed by all-season road. Hydro-electric power is located within 5km of property boundaries. The project received a B.C. Mines Act permit in July, 2009 for an open pit gold mine and onsite 400 ton per day mill and concentrator, processing up to 75,000 tons per year. The Permit contemplates a 7–9 year mine life from a series of open pits entirely within an area of disturbed placer workings. Since the recent completion of the buy-out from Prize, Eagle Plains owns a 100% interest in both mineral (hard-rock) and placer rights within the project area. (see EPL news release August 19th, 2010). In October 2009, Eagle Plains and Prize announced the formal ratification of an Impact and Benefits Agreement with the Taku River Tlingit First Nation. 

The property is known to host significant gold mineralization. Gold is erratically distributed throughout the Yellowjacket structural zone such that accurate exploration and economic assessment of the property is challenged by a pronounced "nugget effect". 

Project History

In 1983, local area prospectors staked the area of the Yellowjacket Property and then optioned portions of the property to Canova Resources and Tri-Pacific Resources. During 1984 and 1985 these companies conducted programs of ground geophysics, rotary, and diamond drilling. In 1986 Homestake Mineral Development Company optioned the property from Canova and initiated programs of mapping, reverse circulation drilling and diamond drilling.

In 1988, Homestake completed a ground geophysical program which consisted of 5.5 kilometres of magnetic and VLF-EM surveys. By 1988, Homestake Mining Company outlined the Yellowjacket Zone, a mineralized area containing significant gold intercepts over 2 kilometres by drilling 58 diamond drill holes to depths up to 183m of which gold was intercepted to 140m depth. 

As a result of this work, Homestake estimated an historical resource estimate of 453,500 tonnes grading 10.26 grams per tonne gold (BC Dept Mines Open File 2000-2 page 41). (These are historical figures and do not currently comply with NI 43-101, though they are considered by management to be relevant and form a basis for future exploration of the Property)

Muskox Minerals Corp. (renamed Prize Mining Corporation) optioned the property in late 2003 and began exploration in December of that same year to further outline the extent, nature, grade and geometry of gold mineralization at the Yellowjacket Zone. 41 holes were drilled in 2003-2004, thirteen of which encountered coarse gold that yielded assay intercepts similar to those obtained by Homestake. Muskox reported significant gold intersections (among others) of up to:

• 80.3 grams per tonne over 38.94 meters including 513.5 grams per tonne over 5.56 metres in drill hole YJ03-01 
• 80.5 grams per tonne over 30.83 meters including 2397 grams per tonne over 0.91 meters in drill hole TW05-02, a twin hole to YJ03-10  
• 40.10 grams per tonne over 6.10 metres in drill hole YJ04-07 
• 142.40 grams per tonne over 1.0 metres in drill hole YJ04-20 
• 156.95 grams per tonne over 0.5 metres in drill hole YJ04-22 
  
  (*press releases, November 15, 2004 and February 03, 2005)

In 2004, Canamera Geoscience Corp. under contract to Muskox conducted an airborne geophysical survey over the Property. A total of 820 line kilometres of airborne survey were flown by helicopter, using 50 metre spaced flight lines.

In 2005, Muskox/Prize performed a 50km magnetic survey which delineated three zones: Yellowjacket, Rock of Ages and Gold Run. Six holes were drilled in the Yellowjacket Zone and 1.5 kilometres to the southwest, three holes were drilled in the Rock of Ages Zone, for a total of 895 metres. 

In 2006, Muskox/Prize commenced an exploration bulk sampling program, which included diversion of Pine Creek, overburden/placer tailings excavation, construction of a 400 ton-per-day milling facility, bedrock mapping and channel sampling, bedrock excavation and processing. In 2007, Prize reported production of 6.43 kilograms (206.9 ounces) of gold produced from sluicing the placer-bedrock interface material excavated during bulk sample excavation. In 2008, Prize processed 4200 tonnes of material. Of this material, 2880 tonnes were considered to be taken from the main mineralized zone and returned gold bars totaling 18.63 kilograms (599 ounces). About 800 kilograms of low grade gold concentrates from 2008 remain and are estimated to contain approximately 1.5 kilograms (50 ounces) of gold. These gold volumes back-calculate, using a formula that allows for smelting and processing plant recoveries, to a head grade of approximately 9 g/t gold.

In 2009, Eagle Plains and Prize contracted Barry Price, P.Geo. and Linda Dandy, P.Geo. to complete a 43-101 compliant technical report which summarize development of the property to date. The report identifies that “Based on the results of the exploration and development conducted to date on the Property, the authors conclude that the Yellowjacket Gold Zone represents a legitimate development target with the potential to host an economically feasible mineral deposit. Such potential is not quantifiable and can only be verified by additional exploration and development work.” 

About Eagle Plains Resources 

Eagle Plains continues to conduct research, acquire and explore metal projects throughout western Canada. In addition to holding mining royalties on various projects, Eagle Plains controls over 35 gold, base-metal and uranium projects, several with third parties including Excelsior Mining Corp (TSX:MIN.P), Drexel Capital Corp (TSX-V:DX.P), Sandstorm Resources Ltd. (TSX-V:SSL), Sandstorm Metals and Energy Ltd. (TSX-V:SND), Providence Capital Corp., Waterloo Resources Ltd. (TSX-V:WAT.P), Windstorm Resources Inc., 0802906BC Ltd. (a private B.C. company); Heemskirk Canada Ltd., Touchdown Capital Inc. (TSX-V: TDW), Active Growth Capital (TSX-V:ACK) and 99 Capital Corp. (TSX-V:WDG). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 53,600m (163,370’) of drilling and over $28.3 million in exploration spending on its projects since 1998. 

Expenditures during 2008 and 2009 on Eagle Plains’ projects were approximately $7,300,000, funded by Eagle Plains and third party partners. This work resulted in approximately 6,900m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development.

Signed,

“C.C. (Chuck) Downie”
VP Exploration

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.