Eagle Hill Exploration Corporation
TSX VENTURE : EAG

Eagle Hill Exploration Corporation

October 13, 2009 12:14 ET

Eagle Hill to Expand the Windfall Lake Camp to 340 Contiguous Claims With Options to Acquire Freewest and Murgor Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2009) - Eagle Hill Exploration Corporation ("Eagle Hill" or the "Company") (TSX VENTURE:EAG) is pleased to announce that the Company has entered into two option agreements with Freewest Resources Canada Inc. ("Freewest") and Murgor Resources Inc. ("Murgor") (collectively the "Optionors") to acquire a 100% interest in 184 Murgor/Freewest Windfall Lake Claims (the "184 Murgor/Freewest Windfall Lake Claims") and the remaining 50% interest in the 29 Murgor/Freewest joint venture Windfall Lake claims (the "29 Murgor/Freewest Joint Venture Claims"). The size of Eagle Hill's Windfall Lake camp would be 10,991 hectares. To view a map of the 340 contiguous claims please visit the Company's website at www.eaglehillexploration.com.

Eagle Hill has an option with Noront Resources Inc. ("Noront") to acquire Noront's 156 Windfall Lake claims including a 50% interest in the 29 Murgor/Freewest Joint Venture Claims, which has been approved by the TSX Venture Exchange (the "Exchange").

Eagle Hill has also executed an exploration management contract with Murgor under which Murgor will conduct Eagle Hill's exploration program on the entire Windfall Lake group of claims. Under the management contract Murgor will receive a management fee of 10% on all exploration expenditures and will collect a discovery bonus upon delineation of a National Instrument 43-101 compliant Inferred gold resource. The bonus amounts to $200,000 upon delineation of 200,000 ounces of gold, $600,000 upon delineation of 400,000 ounces of gold, $1,200,000 upon delineation of 600,000 ounces of gold, $1,600,000 upon delineation of 800,000 ounces of gold and $2,000,000 upon delineation of 1,000,000 ounces of gold.

"Consolidation of the 340 contiguous claims at Windfall Lake would provide Eagle Hill shareholders with an asset that encompasses the major structural and geophysical trends in the prospect area," stated Brad Kitchen, President and CEO of Eagle Hill. "This is an exciting time for Eagle Hill. We have assembled a significant land position through partnerships with Noront, Freewest and Murgor in the very interesting Windfall Lake area. Murgor, with its knowledge and expertise in the area, will commence data compilation and exploration on all of the Windfall claims immediately."

Acquisition Terms

The 184 Murgor/Freewest Windfall Lake Claims

Eagle Hill has an exclusive option to earn up to a 100% interest subject to Eagle Hill:

(a) issuing to the Optionors 1,000,000 common shares of Eagle Hill (the "Initial Share Payment") by October 31, 2009;

(b) paying $100,000 to the Optionors (the "Initial Cash Payment") by December 31, 2010; and

(c) incurring the following expenditures on the 184 Murgor/Freewest Windfall Lake Claims pursuant to plans previously approved by the Optionors (collectively, the "Expenditures"):

(i) $350,000 by December 31, 2010, to earn a 20% interest

(ii) an additional $500,000 by December 31, 2011 to earn an additional thirty percent (30%) interest in the 184 Murgor/Freewest Windfall Lake Claims; and

(iii) an additional $650,000 by to earn an additional 50% interest.

The Initial Share Payment and Initial Cash Payment are to be made to the Optionors on an equal basis. The Optionors will retain a maximum 2% net smelter royalties (an "NSR"). Eagle Hill will have a right of first refusal to purchase any or all of the NSRs.

In the event that Eagle Hill earns a 50% interest in the Optionors Properties but chooses not to continue with the exploration program, the Optionors have the ability to purchase the properties at any time before December 31, 2013 for $255,000 ($100,000 plus the cash equivalent of the Initial Share Payment calculated on October 7, 2009). If Eagle Hill earns a one hundred percent (100%) interest in the Claims, it will have 3 years to either complete a Bankable Feasibility Study ("BFS") on the entire Windfall Lake project or take the project to production. If Eagle Hill fails to do so the Optionors shall have an option to repurchase the 100% interest in the Claims from Eagle Hill for $1,755,000 ($1.6 million plus $155,000 (being the cash equivalent of the Initial Share Payment calculated on October 7, 2009).

The 29 Murgor/Freewest Joint Venture Claims

Eagle Hill has the exclusive option to earn up to a 50% interest held by the Optionors if Eagle Hill:

(d) delivers to the Optionors 2,500,000 common shares of Eagle Hill (the "29 Claim Initial Share Payment") by October 31, 2009;

(e) pays $300,000 to the Optionors (the "29 Claim Initial Cash Payment") October 31, 2010; and

(f) incurs the following expenditures on the 29 Murgor/Freewest Joint Venture Claims pursuant to plans previously approved by the Optionors:

(i) $400,000 bye December 31, 2010 to earn 20% interest in the Optionors' interest;

(ii) an additional $1,600,000 by December 31, 2011 to earn an additional 30% interest in the Optionors' interest; and

(iii) an additional $2,000,000 by December 31, 2012 to earn an additional 50% interest in the Optionors' interest.

The Initial Share Payment and Initial Cash Payment are to be made to the Optionors on an equal basis. The Optionors will retain a maximum 2% NSR on the 29 Murgor/Freewest Joint Venture Claims. This NSR applies to any funds received by way of processing of bulk samples taken from the property. Eagle Hill will have a right of first refusal to purchase any or all of the NSRs.

In the event that Eagle Hill earns the 100% Optionors' interest in the 29 Murgor/Freewest Joint Venture Claims but chooses not to continue with the exploration program the Optionors have the ability to purchase the properties at any time before December 31, 2013 for $687,500) ($300,000 plus $387,500 (being the cash equivalent of the 29 Claim Initial Share Payment on October 7, 2009). If Eagle Hill earns the 100% Optionors' interest in the Claims, it will have 3 years to either complete a BFS on the entire Windfall Lake project or take the project to production. If Eagle Hill does not do so, the Optionors shall have an option to repurchase their interest for $4,687,500 ($4,300,000 plus $387,500 is the cash equivalent of the 29 Claim Initial Share Payment on October 7, 2009).

The net impact to Eagle Hill on entering into and fully exercising these option agreements will be:

- the issuance in total of 3.5 million common shares:

- upfront payments totaling $400,000;

- exploration expenditures of $1.5 million over 3 years on the 184 Murgor/Freewest Windfall Lake Claims; and

- exploration expenditures on the 29 Murgor/Freewest Joint Venture Claims consistent with Eagle Hill's commitment on its acquisition of 50% of these claims from Noront.

The arms length option agreements with Freewest and Murgor and the exploration management contract with Murgor are subject to Exchange and regulatory approval.

About Eagle Hill Exploration Corporation

Eagle Hill Exploration Corporation is a Canadian mineral exploration company focused on the exploration and development of gold and precious metal prospects. The Company is set to become an advanced stage gold and precious metal exploration company with its acquisition of the Windfall Lake high grade gold project, located in Urban Township, Quebec, between Val D'or and Chibougamau. Eagle Hill seeks projects that contain or have potential to contain high grades and large tonnage potential. The Company's website at www.eaglehillexploration.com and public filings at www.sedar.com provide additional information on its properties and other information with respect to its management and operations.

ON BEHALF OF THE BOARD,

P. Bradley Kitchen, President

FORWARD LOOKING STATEMENTS

This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.

Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although both companies have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Neither 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.

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