Eagle Hill Exploration Corporation

Eagle Hill Exploration Corporation

April 15, 2009 14:33 ET

Eagle Hill Advances to Gold & Precious Metal Company With the Acquisition of Fran Property, BC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 15, 2009) - Eagle Hill Exploration Corporation ("Eagle Hill" or the "Company") (TSX VENTURE:EAG), is pleased to announce it has entered into a letter of intent ("LOI") with Yankee Hat Minerals Ltd. (the "Optionor") pursuant to which Eagle Hill will be entitled to earn up to a 100% interest in a gold property known as the Fran Property, located in the Mount Milligan area of northern British Columbia, upon execution of a Definitive Agreement (the "Definitive Agreement").

Director, Jason Scharfe commented, "We are excited about the shift in focus of the Company to gold and precious metals and the Fran Property is a key asset in solidifying this transition. The Fran Property is located in an area of high exploration potential and, with our Company's technical and regional expertise, we believe the property has tremendous opportunity for substantial production of gold."

The Fran Property

The Fran Property is located in central British Columbia approximately 60 kilometres north of the city of Fort St. James. The region is well known for its abundance of large scale deposits and mines, most notably the Mount Milligan deposit, which is located 30 kilometres northeast of the property and the Kemess South mine located approximately 250 km to the north. The original Fran Property consisted of eight mineral claims covering approximately 4,000 hectares. Recent staking to the east, south and west has expanded the property to 10,200 hectares.

To date, drilling and exploration has focused on the North Contact Zone and indicates that the target is a structurally controlled vein system of low sulphidation with a mesothermal temperature regime. Given the regional environment, it is possible that the North Contact has been derived from a distal porphyry system as opposed to a simple polymetallic vein occurrence. This concept is being investigated in the current summer work program, which includes induced polarization and soil geochemical surveys, prospecting, rock sampling, drill data compilation, and deposit modeling.

The most recent drilling program was completed in May of 2007 and targeted the North Contact Zone; an area that is being explored with the aim of defining a significant near surface gold deposit. A total of 17 holes were completed over 3,397 meters bringing the total meters drilled since 2005 to 5,918 meters in 36 holes.

The results of the program were highly encouraging and included some of the widest and highest grade intersections encountered on the property to date. A summary of these results include:

- 3.84 grams per tonne gold over 27.60 meters including a higher grade core of 10.62 grams per tonne gold over 8.30 meters in drill hole FR-07-74.

- 2.10 grams per tonne gold over 39.70 meters with higher grade cores of 5.99 grams per tonne gold over 7.40 meters, 3.14 grams per tonne gold over 7.00 meters, and 2.87 grams per tonne gold over 5.60 meters in hole FR-07-71.

- 1.69 grams per tonne gold over 16.90 meters including a higher grade core of 17.30 grams per tonne gold over 1.50 meters in hole FR-07-64.

- 1.01 grams per tonne gold over 30.60 meters including a higher grade core of 1.69 grams per tonne gold over 8.40 meters in hole FR-07-70.

- 27.86 grams per tonne gold over 0.60 meters and a separate zone of 1.13 grams per tonne over 13.65 meters in hole FR-07-75.

In addition to receiving some of the best intersections encountered to date, the exploration program achieved its two main objectives:

1. In-fill drilling closed the 250 meter gap that was left between the western (FR-06-50A) and eastern (FR-06-62) halves of the North Contact system at the end of the 2006 program; effectively joining the system.

2. Exploratory drilling west of FR-06-55 increased the strike length of the deposit by 200 meters.

The North Contact Zone has now been confirmed to be continuously mineralized over a total strike length of 1,200 metres and remains open for expansion in both strike directions. For further details on the Fran Project, please visit the Company's website at www.eaglehillexploration.com.

Under the terms of the LOI and the execution of the Definitive Agreement, Eagle Hill will undertake an expanded exploration program for 2009 designed to provide additional drilling at the North Contact Zone gaining the data necessary to estimate an initial National Instrument 43-101 ("NI 43-101") compliant resource estimate for the zone. Further regional exploration at Grid A and Grid B will focus on identifying drill targets to test for potential porphyry style mineralization systems.

Acquisition Terms

Under the terms of the LOI, Eagle Hill will be granted the exclusive option to earn up to a 51% interest in the Fran Property by:

(a) Making a payment of $100,000 upon execution of the Definition Agreement (the "Effective Date") or a date no later than December 31, 2009;

(b) Incurring $1,500,000 in expenditures on the Fran Property by December 31, 2010; and

(c) Funding, completing and delivering a NI 43-101 compliant technical report on the Fran Property within eighteen (18) months of the Effective Date.

Furthermore, the Optionor will grant Eagle Hill up to a 90% in the Fran Property by:

(a) Paying an additional $1,500,000 to the Optionor by December 31, 2010 or a later date through mutual agreement; and

(b) Upon receipt of this payment the Optionor would hold a 10% carried interest in the Fran Property.

The remaining 10% interest in the Fran Property may be purchased by Eagle Hill from the Option for $5 million, leaving the Optionor with a 2% Net Smelter Royalty.

The obligation of Eagle Hill and The Optionor to complete the transaction contemplated under the LOI is subject to the satisfaction of certain conditions precedent including the receipt of the approval of the TSX Venture Exchange and all other necessary regulatory authorities. This is a related party transaction by way of a common director and officer.

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. In North America, the Company is set to become an advanced stage gold and precious metal exploration company with its acquisition of the Fran Property, located in the Mount Milligan area of northern British Columbia. 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 provides additional information on its properties and other information with respect to its management and operations.


P. Bradley Kitchen, President

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

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