SOURCE: Copper Canyon Resources Ltd.

April 26, 2007 09:00 ET

Copper Canyon and Romios Plan Merger

CRANBROOK, BC -- (MARKET WIRE) -- April 26, 2007 -- Copper Canyon Resources Ltd. (TSX-V: CPY) -- Management of Copper Canyon Resources Ltd. and Romios Gold Resources Inc. (TSX-V: RG) have executed a Letter of Intent whereby the two parties have agreed to merge the companies in order to maximize shareholder value in the Galore Creek Project in northwestern British Columbia. The amalgamated entity would carry out business under the name of Romios Gold Resources Inc. ("New Romios"), with headquarters in Toronto, Ontario. The merger is subject to, among other things, completion of due diligence by both parties, execution of a formal agreement on or before June 15, 2007 and shareholder and regulatory approval.

Under the proposed terms of the merger, Copper Canyon shareholders will receive 1.5 shares in New Romios for each Copper Canyon share and Romios Gold shareholders would receive 1.0 share in New Romios for each Romios Gold share currently held. Blackmont Capital Inc. has been retained by Copper Canyon to provide advisory services and a fairness opinion on the transaction.

Copper Canyon's primary asset is the Copper Canyon property located adjacent to NovaGold Resource's Galore Creek Project in northwestern British Columbia. The property is controlled 100% by CPY and is under option to NovaGold, who may earn an 80% interest in the property by delivering a feasibility study by 2011. An inferred category resource estimate completed by independent engineering firm Hatch Ltd. of Vancouver, B.C., Canada, shows that the Copper Canyon target at the Galore Creek project in Northwestern British Columbia contains over 2.86 million ounces of gold, 37.9 million ounces of silver and 1.16 billion pounds of copper at a 0.35% copper equivalent cut-off grade (CuEq)(1) (See Table 1 below).

Romios' principal asset is its extensive land holdings, consisting of 9 individual properties encompassing over 25,000 hectares, in the Galore Creek area adjacent to both NovaGold's and Copper Canyon's defined mineral resources. An inferred resource of 200,000 ounces of gold, 291,000 ounces of silver and 6.7 million pounds of copper (see Press Release dated March 26, 2007) has been calculated on one of Romios' many known mineral occurrences on its properties in the Galore Creek area. Romios' other assets include significant exploration projects in Ontario and Nevada. An aggressive exploration program on its Galore Creek properties, estimated to cost $3 million, will be carried out by Romios during the forthcoming summer.

Tim J. Termuende, President and CEO of Copper Canyon, describes the proposed transaction as "a win-win for both Copper Canyon and Romios shareholders. The consolidation of the inferred resources of the Copper Canyon project with the tremendous exploration potential and continually improving infrastructure of the Romios properties provides excellent potential to enhance shareholder value." Tom Drivas, President and Director of Romios comments on the proposed transaction, "We are extremely excited at the opportunity to consolidate the assets of Romios and Copper Canyon which will enhance shareholder value and result in the creation of an exciting Company that will have significant inferred gold, silver and copper resources and a large number of untested mineral occurrences in the backyard of one of Canada's newest and largest mine developments.....NovaGold's Galore Creek Project."

Management of both Copper Canyon and Romios consider the Copper Canyon property to be an important component of the Galore Creek project, providing a potential source of high-grade ore. In addition, documents filed by NovaGold with the B.C. Government indicate that NovaGold intends to construct a water retention facility and diversion structure related to the Galore Creek mine on surface lands within the Copper Canyon property area.

On February 23rd, NovaGold announced that it had received the Environmental Certificate Approval for the Galore Creek project, described by NovaGold management as "a major step toward the development of what will be one of the largest new mines in Canada." NovaGold also recently announced plans to commence construction activity at Galore Creek during 2007 and intends to carry out additional drilling activity during 2007 at Copper Canyon (see NG news release February 9th, 2007).

Cutoff   Size               Grade             Million Million Million
CuEq(%)  Tonnes                                  lbs.    Ozs    Ozs
                Cu(%)  Au(g/t)  Ag(g/t) CuEq(%)  Cu      Au     Ag
0.35     164.8  0.35   0.54     7.15    0.74     1,160   2.86   37.91
0.50     116.1  0.41   0.64     8.30    0.87     950     2.39   30.98
0.70     63.0   0.50   0.86     10.21   1.11     625     1.73   20.68
1.00     29.2   0.65   1.14     13.03   1.45     381     1.07   12.23
1.30     15.6   0.83   1.32     15.70   1.72     258     0.66   7.87
Note: (1) Copper equivalent calculations use metal prices of US$375/oz for gold, US$5.50/oz for silver and US$0.90/lb for copper. Copper equivalent calculations (CuEq%) reflect gross metal content that have been adjusted for metallurgical recoveries based on the following criteria: Copper Recovery = (%Cu-0.06)/%Cu with a minimum of 50% and Maximum of 95%; Gold Recovery = (Au g/t - 0.14)/Au g/t with a minimum of 30% and Maximum of 80%; and Silver Recovery = 80%.

Copper Canyon Resources was created by way of a Plan of Arrangement on June 9, 2006. Shareholders of Eagle Plains Resources Ltd. approved the plan to reorganize the Company's mineral property assets in an effort to maximize shareholder value. Under the terms of the arrangement, three of Eagle Plains' projects, Copper Canyon, Severance and Abo (Harrison) Gold, were transferred into Copper Canyon Resources on a one-for-one share basis.

As part of the proposed transaction, Messrs. Tim Termuende, P.Geo., Charles Downie, P.Geo., and David Johnston, P.Eng. will become members of the Board of Directors of the "New Romios."

This news release has been reviewed and approved by Tim J. Termuende, P.Geo., and Thomas Skimming, P.Eng. hereby designated as "Qualified Persons" under National Instrument 43-101.

On behalf of the Board of Directors


"Tim J. Termuende"
President and CEO
The TSX Venture Exchange has not reviewed and does not accept 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.

Contact Information