Eagle Plains/Blind Creek Release Results from Drilling Program at Blende Silver/Base-Metal Deposit, Yukon Territory

Cranbrook, B.C. 16 January, 2007: Eagle Plains Resources Ltd. (EPL:TSX-V) and Blind Creek Resources Ltd. (a private B.C. company) jointly announce that they have completed fieldwork and received final assay results from a 23-hole, 13,887 ft (4,233 m) diamond drilling program on the Blende property, located in central Yukon approximately 65 km NE of Keno Hill. 

Highlights:

• drill hole BE06088 returned 6.3% Pb+Zn , 31.9 g/t Ag over 65.5 m from 37.5 m to 103.0 m (including 6.4% Pb, 8.1% Zn, 52.8g/T Ag over 3.1m from 72.1m to 75.2m) 
• drill hole BE06090 returned 8.9% Pb+Zn, 38.6 g/t Ag over 14.0m from 69.3 m to 83.3 m (including 5.9% Pb, 6.8% Zn, 49.8g/T Ag over 7.0m from 76.3m to 83.3m) 
• drill hole BE06105 returned 10.0% Pb + Zn, 50.5 g/t Ag over 8.0 m from 19.1 m to 27.1 m
• new Zn-Pb-Ag-Cu mineralization discovered along trend of existing showings 
• numerous target areas identified for future work 
• recent staking expands property boundaries substantially 

Overview

2006 work consisted of geological mapping, prospecting, geochemical sampling and diamond drilling. The 2006 program followed-up geological, geochemical and geophysical surveys as well as an extensive re-examination, sampling and interpretation of existing drill-core stored on the property since the mid-1980’s.  Diamond drilling in 2006 tested the grade, continuity and on-strike extensions of Zn-Pb-Ag mineralization in the East and West Zones.  In the East Zone, 20 holes were drilled totaling 3,838 m and in the West Zone 3 holes were drilled totaling 395 m.  Geological mapping and prospecting was carried out over the property and infill soil sampling was done.  Key mineralized drill core from the large 1990 and 1991 drill programs was re-logged and re-sampled.  An updated technical report is in preparation.

Blind Creek may earn a 60% interest in the 262-unit (5,470 ha) property, which is owned 100% by EPL (subject to a 1% NSR).  To earn its 60% interest, Blind Creek has agreed to complete a total of $5,000,000 in exploration expenditures, pay EPL $250,000 cash and issue 1,000,000 common shares by December 31st, 2010. 

2006 Drilling Results

Table 1-2006 Drill Results 

Inferred Resource:

The Blende is a carbonate-hosted Zn-Pb-Ag deposit in the Wernecke Supergroup west of the Mackenzie Platform.  Zn-Pb-Ag mineralization is hosted in 4 zones, over a strike length of 5.5 km, within lower Proterozoic Gillespie Group dolomite.  A N.I. 43-101 compliant report was completed on the property in 2004 by B. Price, P.Geo.  In his technical report, Price used calculations prepared in 1991 by Billiton Metals Canada Ltd., which identified an inferred resource estimate for the property comprising a total of 19,600,000 tonnes (21,500,000 tons) grading 56.0 g/t silver, 3.04% Zn and 2.80%Pb at a cut-off based on an in-situ gross metal value (“GMV”) of $25 (based on 1990 metal prices and exchange rates)*.  Within this resource is 15,300,000 tonnes grading 67.5 g/t silver, 3.04% Zn and 3.23% Pb.

Table 2-Inferred Resource Summary**

*These resource estimates were prepared by Billiton Canada Explorations In., a large integrated international exploration company prior to the introduction of National Instrument 43-101. Nevertheless, in (Price’s) opinion, the estimates are relevant and reliable.

**These figures represent undiluted in-situ resources and do not account for mining or metallurgical recoveries.

Although initially explored as an open pit target, Eagle Plains and Blind Creek management believe that there is excellent potential to outline additional resources, and possibly develop the deposit as an underground operation, which would allow mining of a smaller tonnage with higher grade.  By adjusting the cutoff grade of the blocks calculated previously, the current inferred resource could be reduced in tonnage, but increased in grade.  The deposit is open along strike to the east and west as well as down-dip of the existing zones.

Historical Results:

Numerous high-grade intersections have been reported by past operators, including hole 88-02 which assayed 282 g/t (8.22 oz/t) silver, 12.2% lead, and 4.4% zinc over 19.8m from a depth  of 70.7 to 90.5m. Hole 88-03 returned 8.5m grading 550.1 g/t (16.04 oz/t) silver, 15.3% lead and 4.6 % zinc from 118.0 to 126.5m, and hole 90-15 intersected 9.5m grading 351.2 g/t  (10.24 oz/t) silver, 14.11% lead, and 6.59% zinc from 60.1 to 69.6m.  Step-out drilling in 1994 confirmed the continuation of ore-grade mineralization westward, with the addition of significant silver values.  Hole 94-81 contained 14.9 m of mineralization which assayed 228.4 g/t (6.66 oz/t) silver, 5.48% zinc, 9.71% lead, and 0.78% copper from 9.2 m to 24.1 m, while hole 94-84 intersected 8.5 m which returned 136.1 g/t (3.97 oz/t) silver, 3.65% zinc, 6.74% lead, and 2.43% copper from 45.5-54.0 m. 

Future Work:

Due to delays encountered during 2006 work, limited drilling activity was carried out in the West Zone, and no drilling was done in the Central or Far East Zones.  These areas as well as new targets identified during 2006 will be the focus of aggressive exploration activity during 2007.

The 2006 program was carried out under the supervision of R. Sharp, P.Geol., hereby identified as the “Qualified Person” under N.I. 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 NovaGold Resources (AMEX,TSX:NG), 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 $11.0 million 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 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.

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.