Eagle Plains/Waterloo Execute Option Agreement for Ice River Rare Earth Project

Cranbrook, B.C., September 25th, 2008: Eagle Plains Resources (TSX-V:EPL) and Waterloo Resources Ltd (TSX-V:WAT.P) have executed a formal option agreement whereby Waterloo may earn a 60% interest in the Ice River property by making exploration expenditures of $3,000,000 and completing payments of 700,000 shares (on a post sub-divided basis – see also the Waterloo news release dated September 11, 2008) and $500,000 cash over a five year period. A 1% NSR is reserved for Eagle Plains. Waterloo my increase its interest in the property to 75% by delivering a bankable feasibility study by 2016. The option agreement will constitute Waterloo's "qualifying transaction" as a capital pool company and the transaction remains subject to receipt of all necessary regulatory and shareholder approvals.

The property is host to precious metals and rare earth element (“REE”) mineralization in syenite and carbonatite dyke systems that are numerous and widespread over a 4+ kilometer long corridor within the Ice River Intrusive Complex, located 40 kilometers southeast of Golden, British Columbia, Canada.

Most recent work on the property was carried out by Eagle Plains in August, 2007, who completed a 5-hole, 259m drill program (see NR Feb 20, 2008). The program was successful in intersecting massive to semi-massive strataform sulfide mineralization and associated stockwork zones, hosted in variably altered limestone wall-rock of the Ice River Intrusive Complex.

A surface sampling program was conducted during drilling activity and returned encouraging values including up to 3.0% REOs (total Rare Earth Oxides), and 5600 g/t Nb2O3 (Niobium / “Columbium” oxide). One 2.5 meter chip sample (JBIVR048) returned 2.4% REOs.

Rare Earth Elements (REEs) and other elements with high-tech applications, including Nb and Zr, have long been suspected as potential commodities on the property; but it was not until results from the recent 2005-2007 mapping and geochemical surveys, that this suite of elements became fully appreciated. Other potential commodities identified include extensive nepheline syenite as an industrial mineral source, and presence of the ornamental mineral sodalite.

Previous and ongoing work by Eagle Plains at the Ice River Property has focused on the economic potential of strataform/replacement massive sulphides of the Waterloo prospect (note that the “Waterloo prospect or occurrence” is not in any way connected to Waterloo Resources Ltd.) (see August 23, 2007 news release). At the Waterloo occurrence, sulfide horizons are exposed in two historical adits excavated in the early 1900’s, with historical samples returning assays up to 3.69% Pb, 16.10% Zn, 1.59% Cu, 27.30% Fe, 99.4 g/T Ag and 1.7 g/T Au (GSC Memoir 55, page 229). 

About Eagle Plains

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 Teck Cominco Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Sandstorm Resources Ltd. (TSX-V:SSL.P), Mountain Capital Inc (TSX-V:MCI.P) and XO Gold Resources Ltd. These agreements expose Eagle Plains to over $15.0 million in exploration expenditures over a five year period. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 52,000m (158,500’) of drilling and over $27.0 million in exploration spending on its projects since 1998. Eagle Plains management anticipates approximately $6,000,000 in expenditures on its projects in 2008, funded equally between Eagle Plains and third party partners. 

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.