Eagle Plains Signs Letter of Intent with Wellstar Energy on Saskatchewan Uranium Project

Cranbrook, B.C., 05 February, 2007: Eagle Plains Resources Ltd. (EPL:TSX-V) is pleased to announce that a letter of intent has been executed with Wellstar Energy Corporation (WST:TSX-V) whereby Eagle Plains has agreed to grant an option to Wellstar to earn a 60-per-cent interest in Eagle Plains' 100-per-cent-owned Kulyk Lake and Jenny Lake uranium properties (the “Project”), located 30 to 40 kilometers southeast of Cameco's Key Lake mining operation in north-central Saskatchewan, Canada. Under terms of the proposed agreement, Wellstar will make an up-front cash payment to EPL of $77,500 to cover acquisition costs, commit to $5,000,000 in exploration expenditures and issue 1,000,000 common shares to EPL by December 31st, 2011.

The Project adjoins Eagle Plains’/Blue Sky Uranium Corp.’s (formerly Mulligan Capital Corp. (MCC-TSX.V) Eagle Lake property where an extensive airborne geophysical survey and follow-up ground geological program was carried out in the fall of 2006.

The Kulyk Lake property covers approximately 96 square km and was staked to cover known historical uranium mineral occurrences and uranium lake sediment anomalies within prospective folded and faulted basement lithologies of the Wollaston group. Much of the known uranium mineralization occurs along Wollaston group contacts and fault intersections, particularly in the presence of pegmatite. Historical trenching at one such occurrence revealed 0.369 per cent U3O8 over 3.4 meters (SMDI 0993). Grab sampling from another occurrence returned up to 1.68 per cent U3O8 (SMDI 0978).  

The 50 square km Jenny Lake area also covers prospective basement lithologies of the Wollaston domain at its eastern limit along a major tectonic boundary. Known uranium mineral occurrences are associated with several large-scale structures that suggest excellent regional prospecting potential. Historical grab samples of yellow-stained fractures in gneiss and pegmatite returned values up to 0.47 per cent U3O8 (SMDI 0981). To the east, a single historical drill hole near the Needle Falls shear zone intersected a sulphide and graphite-bearing zone in pelitic host rock.

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), Solomon Resources Inc (TSX-V:SRB), Mulligan Capital Corp (TSX-V:MCC.P), Blind Creek Resources and Golden Cariboo Resources Inc. (TSX-V:GCC). These agreements expose Eagle Plains to over $13.5 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

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

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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.