Eagle Plains/Providence Capital Provide Analytical Results from Diamond Drill Program at Iron Range Project, Southeastern BC

Cranbrook, B.C., December 21st, 2010: Eagle Plains Resources Ltd. (EPL:TSX-V) and Providence Capital Corp. (TSX-V:PV) have received complete analytical results for Holes IR10-005 and IR10-010, which are considered to contain the best mineralization observed to date of the 2010 program. Since September, the partners have completed ten diamond drill holes for a total footage of 10,945 feet (3,337m). The partners continue to test structural features and the stratigraphic interval known to host the Sullivan deposit, located 70km to the north. Current work is targeting both precious metal and base metal mineralization. 

Highlights:

• Hole IR10-010 intersected two intervals of gold-bearing massive sulphide mineralization. The lowermost zone consists of finer grained, gold-bearing massive sulphide material at a depth of 275.5.0-279.5m (truncated by a fault) within similar host rocks and at a stratigraphic position interpreted to be at or near the same interval which hosts the Sullivan deposit. The structural setting, alteration assemblages (tourmalinite, albite) and accessory minerals encountered (cadmium, antimony, tin, bismuth, boron, copper) are also consistent with those associated with Sullivan and other sedimentary-exhalative (“sedex”) deposits.
   
• Selected intervals from Hole 10 include:  
  • 192.0-206.0m (upper sulphide interval): 14.0m @ 5.1g/t Au, 1.86% Pb, 2.1% Zn, 75.3g/t Ag  
    • Including 196.9-204.0m: 7.1m @ 8.13g/t Au, 2.84% Pb, 3.07% Zn, 86.6g/t Ag 
    • Also Including 196.9-198.5m: 1.6m @ 9.9g/t Au, 6.06% Pb, 7.18% Zn, 181.0g/t Ag 
    • Also Including 201.4-204.0m: 2.6m @ 8.4g/t Au, 2.6% Pb, 2.54% Zn, 56.4g/t Ag
       
  •  224.0-280.5m: 56.5m @ 1.9g/t Au, 0.44% Pb, 0.59% Zn, 21.5g/t Ag 
    • Including 240.0-245.0m: 5.0m @ 3.7g/t Au, 1.34% Pb, 0.13% Zn, 69.2g/t Ag 
    • Including 272.0-280.5m: 8.5m @ 6.0g/t Au, 1.45% Pb, 2.56% Zn, 47.8g/t Ag 
    • Also including 277.5-279.5m (lower sulphides-interpreted Sullivan time horizon): 2.0m @ 12.8g/t Au, 4.18% Pb, 5.06% Zn, 122.5g/t Ag; elevated Cd, Sb, Sn, Bi, B, Cu
• Holes IR10-005 and IR10-010 are located near a major transportation corridor; with rail, road, gas and hydro-electric power situated within 3km from the drill collar locations. 

Widths of altered and mineralized intervals are apparent thicknesses only. True thicknesses will be established with the completion of additional drilling. 

Detailed Drill-hole Descriptions

IR10-005: Length: 394.72m, azimuth 260°, angle -80°. Upper 95m is altered and brecciated quartzite, with lesser siltstone to 135m which marks the onset of fracture hosted sulphides and strong alteration to 163m. Lesser alteration of finer grained sediments occurs to 210m, underlain by 95m of increased alteration and numerous veins and veinlets variably with sulphides to 305m. Sixteen metres of mineralized breccia mark the interval to the top of the Lower Aldridge Formation at 321m. Minor albite and tourmaline with disseminated sulphides occur over the interval to the base of the hole at 394.7m

Complete analytical results from Hole IR10-005 have been returned, and include the following highlights:

• 62.5-89.5m: 27.0m @ 0.644g/t Au, 0.14% Pb, 0.19% Zn, 13.0g/t Ag​
  • *Including 74.5-78.5m: 4.0m @ 1.488g/t Au, 0.30% Pb, 0.15% Zn, 22.5g/t Ag
  • *Including 86.5-87.5m: 1.0m @ 6.05g/t Au, 0.56% Pb, 0.35% Zn, 33.9g/t Ag 
• *144.0-163.0m:19.0m @ 0.841g/t Au, 8.7g/t Ag
  • *Including 148.0-155.0m: 7.0m @ 1.793g/t Au, 0.3% Pb, 0.59% Zn, 15.7g/t Ag
  • Including 151.0-154.0m: 3.0m @ 3.17g/t Au, 0.42% Pb, 1.11% Zn, 22.9g/t Ag
      
• 276.0-320.0m: 44.0m @ 0.355g/t Au
  • Including 300.0-320.0m: 20.0m @ 0.543g/t Au
  • Also Including 306.0-309.0m: 3.0m @ 0.951g/t Au 

* Previously reported in EPL/PV news release December 1st, 2010

IR10-010: Length: 345.6m, azimuth 040°, angle-70°. Upper third is oxidized, fractured, and intensely altered. Weak disseminated mineralization in veins occurs to 183m, underlain by 23m of mineralized breccia and local sections of massive sulphide to 208m.(see EPL/PV news release December 1, 2010). Mineralized fractures, veins and brecciation of varying intensity occur over 68m to the lower massive sulphide intercept at 275.5-279.5m, which is interpreted to lie at Sullivan Time. Faulted section of Middle Aldridge sediments, with local alteration and weak mineralization occurs to the base of the hole.

Drill-holes IR10-001 to 004 were located over 1000m from holes reported herein and returned no significant economic mineralization, though contained important alteration minerals associated with sedex style deposits (see EPL/PV news release November 16th, 2010). Analytical results from Holes IR10-006 to -009 will be reported in future updates, but are not expected to return significant values. Portions of oxide material observed in some holes will be re-analyzed using a screened-metallic process to test for the presence of coarse gold. Results of this work will be reported at a later date. Petrographic and lead-isotope dating is planned for the massive sulphide intervals in an attempt to better understand the origin and mode of mineralization as well as the timing of the emplacement of the lead. These studies could have significant implications for the potential of the area and the methodology of future exploration.

Tim J. Termuende, President and CEO of Eagle Plains Resources stated recently that “we are encouraged by results received from Holes IR10-005 and IR10-010. The presence of gold mineralization over significant widths coupled with massive sulphides containing lead, zinc and silver with key accessory minerals at our target horizon underscores the potential of the Iron Range property and provides the impetus for further work. Our partners are both aggressive and well-funded and share our enthusiasm for the project” 

Additional diamond drilling is planned for the property in early 2011. A $500,000 Phase 2 program is intended to commence in mid- to late January. The objective of the program will be to further delineate the mineralized zone encountered in Holes IR10-005 and IR10-010 and to gain an understanding of the geometry and structural controls of the zone. Down-hole geophysical surveys are currently being contemplated. Contingent on favourable results, Phase 3 work will follow immediately thereafter, with a budget to be determined.

Conference Call

The partners are planning to host a conference call on Tuesday, December 21st at 9:00am PST. Tim Termuende, President and CEO of Eagle Plains and Jim Ryley and Dave Pighin of TerraLogic Exploration will be present to answer questions. The call will be recorded and will be available on the Eagle Plains website for later review.

Participant toll-free dial-in number (North America): 1-866-809-5793

Iron Range Project Summary

The Iron Range deposits were originally staked in 1897 and were covered by Crown Grants held by Cominco Ltd. and the Canadian Pacific Railway. Past work on the Iron Range deposits by Cominco focused on the considerable iron oxide resource with trenching and very shallow (20m depth) diamond drilling along the Iron Range Mountain ridge. Eagle Plains staked the current claims immediately after the Crown Grants reverted in 2000 and have been exploring the property since then. Exploration work to date includes geological mapping, geochemical surveys, diamond drilling and a 690 line-km airborne geophysical survey. 

Drill programs were carried out by Eagle Plains in 2005 and 2008. Drilling on the property in 2008 intersected gold mineralization including drill hole IR08006, which returned 7.0m grading 51.52 g/t (1.50 oz/ton) gold from 20.0m to 27.0m (see EPL news release dated April 20th, 2009). This intercept is located approximately 10km north of 2010 drilling locations. Swift Resources optioned the property in late 2009 and completed a total of 580 m of drilling in 7 holes. One hole was drilled in close proximity to IR 08006 and returned 1.0m grading 7.53 g/t gold. (see EPL news release dated March 5th, 2010). Swift subsequently relinquished their option on the property.

DDH IR05-03, drilled in 2005, was collared 175m away from DDH IR10-10 and returned values of 3.82 g/t Au and 46g/t Ag over a 2m interval (see EPL NR June 13, 2005). The mineralization encountered in this hole was associated with a silicified, veined and altered breccia unit with associated galena, sphalerite and arsenopyrite, and appears to be similar to material observed in the current drill-holes as described above.

The Iron Mountain structure has been mapped with widths of up to 150m and a strike length of over 50km. Copper and gold mineralization has been discovered previously along the structure, highlighting the potential for iron-oxide copper-gold (“IOCG”) mineralized systems associated with the structure. The claims also overlie rocks of the Aldridge Formation, including the same stratigraphic time horizon which hosts the world-class Sullivan deposit located 70km to the northeast. Over its 100 year lifetime, Sullivan produced approximately 150,000,000 tonnes of ore including 300,000,000 ounces of silver, 8,000,000 tonnes of zinc and 8,000,000 tonnes of lead, collectively worth over $30 billion at current metal prices. The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Iron Range property.

Analytical Details and QAQC

All material was shipped to ISO17025-accredited AGAT Laboratories in Vancouver for rush analysis. Core samples were analyzed via AquaRegia / ICP-OES multi-element analysis and 30g Fire Assay / AAS analysis for gold. Over-detection limit results for base metals (>10000ppm) and silver (>100 ppm) were reanalyzed utilizing AquaRegia / ASS techniques. Due to the presence of significant intercepts of semi-massive to massive sulphides in hole IR10-010, the interval from 192.0m to 280.5m was also analyzed via a sodium peroxide fusion / ICP-OES analysis for a variety of base metals
QAQC: Blank material and 3 different base metal and precious metal standards were routinely introduced into the sample chain of custody for analysis. Statistical analysis of the QAQC data was completed for Au, Pb, Zn and Ag and the results are consistent with all analytic procedures completed by AGAT being within acceptable parameters.

Geological exploration contracting services on the Iron Range property during 2010 are being provided by TerraLogic Exploration of Cranbrook, B.C. (a wholly-owned subsidiary of Eagle Plains). Diamond drilling is being carried out by F.B. Drilling of Cranbrook, B.C. All fieldwork is under the supervision of geologist J.K. Ryley while C.C. Downie, P.Geo. is hereby identified as the overall project supervisor. Technical aspects of this news release have been reviewed and approved by T.J. Termuende, P.Geo., hereby designated as a qualified person under National Instrument 43-101.

Providence Option Agreement

The Iron Range project is owned 100% by Eagle Plains and holds no underlying royalties or encumbrances. Providence holds the option to earn a 60% interest in the Property by spending $3,000,000 on exploration, making $500,000 in cash payments and issuing 1,000,000 shares to EPL over 4 years. As announced on November 2nd, an additional 35,800 ha of claims were added to the existing land package, resulting in a total of 56,200 ha – an area approximately 11km x 50km. The land package now covers over 30km of the Iron Range structure; most of it unexplored.

About Providence Capital

Providence Capital Corp. is a junior mining exploration company focused on delivering shareholder value through project acquisition and development. Currently the company is focused on its Iron Range Project in British Colombia, Canada.

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), 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.

On behalf of the Board of Directors of Eagle Plains, we would like to wish everyone a Merry Christmas and all the best in the coming year.

“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.