Eagle Plains Releases Inferred Resource for Sphinx Molybdenum Project

Cranbrook, B.C. 09 May, 2006: Eagle Plains Resources Ltd. (EPL: TSX-V) has commissioned a N.I. 43-101 compliant technical report for it’s 100% controlled Sphinx property, located 60 km west of Kimberley, BC. Barry Price, P.Geo. has recently submitted a technical report which is available for public viewing on SEDAR.

In his report, Price outlines an Inferred Resource of 62,005,615 tonnes grading .035% Mo, using a cut-off grade of .01% Mo. This current inferred resource represents 47,844,630 lbs of contained molybdenum metal. The estimate is based on 14 holes drilled in 2005 by Eagle Plains and incorporates data from 10 holes drilled in 1980 and 1997 by past operators. The inferred resource is open in two directions and to depth, and is considered to have significant potential for expansion. The project is being advanced as a bulk-tonnage, open-pit target.

Property Summary

The Sphinx property area consist of  2500 ha, with 1600 ha acquired by staking by EPL and 900 ha subject to an option to earn a 100% interest (less 1% NSR) from arms-length individuals. The claims are ideally located with respect to local infrastructure. The property is road-accessible, has been logged extensively and is situated along a high-voltage hydro-electric line. Rail facilities are located 60km east of the property. 

History

The project area was first identified by Cominco Ltd. in 1978, which carried out surface work and limited diamond drilling from 1978 to 1984. Cominco completed a soil geochemical survey which resulted in the delineation of a 1700m x 500m tungsten-moly anomaly. 5 drill holes were completed by Cominco, but no results were released. In 1997, Barkhor Resources drilled 10 holes into the soil anomaly and encountered significant molybdenum mineralization over a 1000m x 300m area. Results from only one hole were ever released (DDH JI97-06), but a private consultant reported that “typical drill intersections are averaging 0.03-0.038% Mo over core lengths ranging from 90 to 230m”. In 2004, EPL completed an airborne geophysical survey that outlined a large intrusive feature associated with the previously-defined soil anomaly.  14 holes were completed by EPL during 2005 for a total of 10,921’ (3,330m). Highlights from this program included hole SX05002, which returned .10% Mo (.167%MoS2) over 47.0m from 112.0m to 159.0m (see news release October 25th, 2005). The area outlined by this and past diamond drilling programs measures approximately 400 x 1000m. 

Geology

The property overlies brittle sedimentary units that have been intruded by intrusive rocks. Molybdenum and associated tungsten mineralization occurs as disseminations and within quartz-pyrite stockwork veins hosted by both sedimentary and intrusive rocks. Chemical alteration of rock units suggests the presence of a substantial porphyry-style mineralizing system.

Future Work

Eagle Plains geologists are confident that additional drilling will result in an expansion of the current inferred resource. Planning is now underway to complete additional drilling later in the 2006 field season, with new access roads having been recently constructed. On-site geological work will be the responsibility of D. Pighin, P.Geo., with overall project supervision provided by C.C. Downie, P.Geo. (the “Qualified Person” under National Instrument 43-101).  Quality control protocol including the use of standards and duplicate assays were employed throughout the course of the 2005 program, and will be incorporated in 2006 work.

Important Update on Eagle Plains/Copper Canyon Plan of Arrangement

Management of Eagle Plains would like to inform interested parties that revised tentative dates have been set for a proposed Plan of Arrangement as announced September 26th, 2005. EPL intends to spin-off its Copper Canyon, Abo and Severance properties in an effort to maximize shareholder value by improving their identification and simplifying ownership. The new company; Copper Canyon Resources Ltd. (“Copper Canyon”) will apply to have its shares listed on the TSX Venture Exchange.  Under the proposed terms, shareholders of Eagle Plains will receive shares of Copper Canyon on a 1 for 1 basis. 

A tentative Share Distribution Record Date (which will determine those Eagle Plains shareholders eligible to vote on the proposed transaction), has been moved to May 15th, with the Annual & Special General Meeting tentatively set for June 9th.  The Share Distribution Effective Date, which determines the Eagle Plains Shareholders entitled to receive share certificates representing Copper Canyon Shares under the Arrangement, now stands as June 5th.

Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 35 gold and base metal projects, many of which are joint-ventured with third parties including NovaGold Inc. (AMEX,TSX:NG), Alexco Resource Corp. (TSX-V:AXR),  and Blind Creek Resources. These agreements expose Eagle Plains to over $8,000,000 in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 30,000m (100,000’) of drilling and over $9,000,000 in exploration spending on its projects since 1998. During the 2005 season EPL has seen over 11,900m (39,000’) of diamond drilling on its properties.

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.

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.