Yellowjacket Resources Spinout Approved

Cranbrook, BC, December 21st, 2011: The management of Eagle Plains Resources Ltd. (TSX-V:EPL) and Yellowjacket Resources Ltd. (TSX-V:YJK) are pleased to announce shareholder, TSX Venture Exchange (“Exchange”) and court approval of the spinout of Yellowjacket Resources. Pursuant to the approval, Eagle Plains shareholders of record reflected on Dec. 22nd, 2011, as at 12:01 a.m., on the register of shareholders maintained by Eagle Plains' registrar and transfer agent will receive one Yellowjacket share in exchange for every three Eagle Plains shares held on said date. 

Yellowjacket Resources will begin trading on the Exchange on or about December 22, 2011. For more information about Yellowjacket Resources, please see the Management Information Circular of Eagle Plains dated November 15, 2011 and the Listing Application of Yellowjacket dated December 19, 2011, all as filed on SEDAR at www.sedar.com.

About Eagle Plains Resources

Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. Since 1992, EPL has been acquiring and developing early stage projects utilizing an in-house team of geologists, technicians and specialists. Considered a prolific project generator with over 35 properties, EPL invites joint venture participation to expedite development, reduce risk and enhance exposure to discovery.

Current third party agreements if maintained to completion, expose EPL to over $55M in exploration expenditures, $6.5M cash and 20M shares in partner companies. Completed agreements have yielded over $17M in exploration spending, $1M cash to EPL and a total of 16M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp., Aben Resources Ltd. and others.

Expenditures during 2011 on Eagle Plains-related projects are expected to be approximately $8,000,000, to be funded by Eagle Plains and third party partners. This exploration work is expected to result in approximately 9400m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development.

About Yellowjacket Resources 

Yellowjacket Resources will focus on the development of the Yellowjacket Gold Project. The Yellowjacket Project is located 9 km east of Atlin, BC and is accessed by all-season road. Hydro-electric power is located within 5km of property boundaries. The project received a B.C. Mines Act permit in July, 2009 for an open pit gold mine and onsite 400 tpd mill and concentrator, processing up to 75,000 tons per year. The permit contemplates a 7–9 year mine life from a series of open pits entirely within an area of disturbed placer workings. Gold may be recovered using a simple gravity concentrating recovery plant without the use of chemicals or additives. Yellowjacket owns both mineral (hard-rock) and placer rights within the Project area. The project is located within the traditional territory of the Taku River Tlingit First Nation who have entered into a formal Impact and Benefits Agreement with respect to the project.

Eagle Plains will transfer to Yellowjacket its entire interest in the Yellowjacket Project, various assets relating to the Yellowjacket Project, $600,000 in cash and certain investments to provide working capital and exploration funding. Concurrently, Eagle Plains will hold approximately 15% of the total common shares of Yellowjacket.

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.