Copper Canyon Resources Ltd.

May 19, 2011 19:50 ET

Copper Canyon Announces Securityholder and Court Approval for Arrangement with NovaGold and Provides Tax Information

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2011) - Copper Canyon Resources Ltd. ("Copper Canyon" or the "Company") (TSX VENTURE:CPY) announces that on May 18, 2011 its securityholders voted overwhelmingly to approve the previously announced plan of arrangement (the "Arrangement") under which NovaGold Resources Inc. (NYSE Amex:NG)(TSX:NG) ("NovaGold") will, if the arrangement is completed, acquire all the shares of Copper Canyon in exchange for shares of NovaGold and cash. Copper Canyon shareholders will also receive shares of Omineca Mining and Metals Ltd. as part of the arrangement. Details concerning the arrangement can be found in Copper Canyon's management information circular that was mailed to shareholders on April 15, 2011 (the "Circular").

Copper Canyon also announces that on May 19, 2011, the Court of Queen's Bench of Alberta approved the Arrangement. The Arrangement is scheduled to close on May 20, 2011.

As described in the Circular, a deemed dividend may arise for shareholders in connection with the Arrangement. For purposes of the Income Tax Act (Canada), Copper Canyon designates all dividends paid or deemed paid by Copper Canyon pursuant to the Arrangement to be "eligible dividends".

About Copper Canyon

Copper Canyon Resources was created by way of a Plan of Arrangement on June 9, 2006. Shareholders of Eagle Plains Resources Ltd. (TSX VENTURE:EPL) 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 Plain's projects: Copper Canyon, Severance and Abo (Harrison) Gold, were transferred into Copper Canyon.

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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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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