Eagle Plains/Touchdown Capital Release Analytical Results from Drill Program at Sphinx Molybdenum Project, Southeastern BC

Cranbrook, BC; 12 February, 2010: Eagle Plains Resources (TSX-V:EPL) and Touchdown Capital Inc. (TSX-V:TDW) have received and compiled analytical results from a 2-hole, 617m diamond drilling program on the 15,400 hectare Sphinx molybdenum project located approximately 60 km west of Kimberley in the Nelson and Fort Steele Mining Divisions of British Columbia. 

The $220,000 program was funded by Touchdown, who have acquired a 100% interest in the property from Eagle Plains, which retains an option to buy-back a 50% interest under certain terms. 

Highlights:

• Drill-hole SX-09027 encountered the best mineralization to date on the property, returning 53.30m grading 0.071% Mo from 27.75m to 81.05m, including 7.15m grading 0.108% Mo  
• Mineralized zone remains open to depth  

Sphinx Project Summary

The Sphinx property area consists of approximately 15,400 ha that were acquired in 2003 by Eagle Plains. The claims are ideally located with respect to local infrastructure. The property is road-accessible, has been logged and is situated along a high-voltage hydro-electric line (currently decommissioned). Rail facilities are located 60km east of the property. The project is being advanced as a bulk-tonnage target.

The Sphinx molybdenum-tungsten system has been defined by 38 holes for a total of 10,686m of drilling and consists of a tabular, steeply-west dipping intrusive body with a true thickness of 85m and a strike length of 230m. A pervasive alteration system, 700m by 350m in size, is developed in the host sedimentary and intrusive rocks. Mineralization is hosted in stockwork veins and fractures within the alteration zone.

2009 Program

Fieldwork on the Property commenced in late fall of 2009 and consisted of an 18 line-km induced polarization (“I.P.”) geophysical survey which was completed by Scott Geophysics of Vancouver, BC. Phase II of the exploration program involved two diamond drill holes, where strong Mo mineralization and related alteration occurs, but no intrusive body has been intersected by drilling. A total of 617m of NQ drilling was completed by FB Drilling of Cranbrook, BC in 2 drill holes.

The drill program was designed to test for the presence of deep seated (>300m below surface) intrusive bodies; the existence of which would best explain the development of strong mineralization / alteration south of the known intrusive stock. Although no significant intrusive body was intersected, both holes were successful in intersecting well developed Mo mineralization and pervasive intense alteration. Highlights of the 2009 drill program are as follows:

* Although it is difficult to determine the actual geometry of a porphyry alteration system, it is very likely that mineralization is controlled by steeply east dipping structures / lithologies. Therefore true thicknesses are likely 75% of the reported intersection length in hole SX09027 and 50% for hole SX09028.

C.C. Downie, P.Geo. is the Qualified Person responsible for overseeing the program.

Sample Analysis and QAQC

Drill core was transported twice daily to Bootleg Exploration’s secure core processing facility in Cranbrook, BC. Core was split and sent to Stewart Group Global in Kamloops, BC for initial ICP-OES geochemical analysis; all samples exceeding 300ppm Mo were also assayed for Mo using AR / ICP-OES analysis.

A rigorous QA / QC program was included in the sampling methodology involving insertion of blanks (every 50 samples) and Cu – Mo Standards (every 35 samples). Analysis of the QA / QC sample data shows that all analytical jobs were completed with acceptable accuracy and precision.

Sphinx Project History

In 2004, Eagle Plains completed an airborne geophysical survey that outlined a large intrusive feature associated with a previously-defined soil anomaly. All core from the historical 1980-83 and 1997 programs by other operators was secured and examined. The available assay results were compiled and reported in a news release issued by Eagle Plains on May 9th, 2005.

In July 2005, Eagle Plains completed a 14-hole, 10,000’ diamond drilling project and reported widespread mineralization in most holes (see Eagle Plains’ news release July 19th, 2005). The area outlined by this and past diamond drilling programs measures approximately 400 x 1000m. Nearly all holes intersected significant molybdenum mineralization over a broad area, with the mineralized zone open to depth and along strike in one direction. 

B. Price, P.Geo. submitted a technical report in May, 2006 which outlined an Inferred Resource of 62,005,615 tonnes grading .035% Mo, using a cut-off grade of .01% Mo. This current inferred resource represents 47,884,630 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. 

In 2009 Touchdown commissioned independent consultants Moose Mountain Technical Services (author Robert Morris, P.Geo.) to prepare an updated 43-101 report on the Property. In his report, Morris calculated an Indicated Resource of 41,450,000 tonnes grading 0.041 %Mo (with a 0.03% Mo cut-off) and an Inferred Resource of 37,180,000 tonnes grading 0.04% Mo (with a 0.03% Mo cut-off), based on 7,603 samples from 38 diamond drill holes totaling 10,685.8m.

Eagle Plains/Touchdown Acquisition Agreement

On October 1, 2009, the TSX Venture Exchange accepted for filing a property purchase agreement dated July 16, 2009 between Eagle Plains and Touchdown whereby Touchdown has acquired a 100% right, title and interest in the Sphinx & Jodi Mineral Claims (the “Property”). In consideration, Touchdown issued 2,000,000 common shares to Eagle Plains (subject to escrow provisions). In addition, Touchdown agreed to fund $200,000 in exploration expenditures on the Property during 2009. Eagle Plains shall have the right to buy back a 50% ownership interest in the Property from Touchdown at anytime after the 2nd anniversary of the closing date of the Qualifying Transaction up to the 4th anniversary by paying the sum of $250,000 plus an amount in cash equal to one half of all amounts spent by Touchdown in relation to the property plus a premium of 150%. If Eagle Plains does not exercise its back-in option, it will be granted a 1% net smelter returns royalty on the Property to a maximum of $2,000,000. A portion of the Property is also subject to a 2.5% net smelter returns royalty payable to a third party.

About Eagle Plains Resources

Eagle Plains continues to conduct research, acquire and explore metal projects in western Canada. In addition to holding mining royalties on various projects, the Company controls over 35 gold, base-metal and uranium projects, several with third parties including Swift Resources Inc. (TSX-V:SWR), Prize Mining Corp. (TSX-V:PRZ), Waterloo Resources Ltd. (TSX-V:WAT.P), Touchdown Capital Inc. (TSX-V: TDW), 99 Capital Corp. (TSX-V:WDG) and XO Gold Resources Ltd. (a private B.C. company). 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.

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.