Newmont Enters Agreement With Novagold to Explore Eagle Plains' McQuesten Gold Property, Yukon

Eagle Plains Resources Ltd. (EPL:CDNX) announces that it intends to complete a non-brokered flow-through private placement to arms length and non-arms-length investors. Application will be filed with the CDNX to sell up to 1.6 million shares at a price of $.25 for maximum proceeds of $400,000. The financing is anticipated to be closed by late April.

Funds generated by the financing will be used by the company to advance exploration on a number of its gold and base-metal properties in British Columbia and Yukon. With its option partners, Eagle Plains expects to see over 15,000 feet of diamond drilling completed on 4-6 individual properties during the next six months.

The Company also wishes to report that Billiton Metals Canada Ltd. has elected not to proceed with its option on the North Findlay property located 40 km northwest of Kimberley, BC. Eagle Plains has now recovered a 100% unencumbered interest in the property, and is aggressively seeking participation on the project by interested parties.

Eagle Plains has a 100% interest in over twenty base metal and precious metal properties in western Canada. Its properties are currently under option to Canadian and international corporations including Kennecott Canada Exploration Ltd., Rio Algom Exploration Ltd., CanAustra Resources, and Novagold Resources Inc. Through existing agreements, the company is carried for $9,000,000 in exploration expenditures, and stands to receive $1,000,000 in cash payments. Eagle Plains is well-funded, and is aggressive in its efforts to carry out responsible, effective exploration activities throughout its theatre of operation.

On Behalf of the Board of Directors

Tim J. Termuende, P.Geo.
President and CEO