Eagle Hill Exploration Corporation

Eagle Hill Exploration Corporation

May 02, 2011 16:14 ET

Eagle Hill Closes Oversubscribed Financing With London Based Institutional Investors

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2011) - Eagle Hill Exploration Corporation ("Eagle Hill" or the "Company") (TSX VENTURE:EAG) has closed its previously announced private placement (the "Financing") with IBK Capital Corp. of Toronto acting as lead agent and VSA Capital Limited of London, England, as joint broker, (collectively the "Agents"). The Agents have elected to exercise their overallotment option of an additional 4,000,000 common shares (each a "Share") at $0.25, bringing the total issuance under the Financing to 16,000,000 Shares at $0.25 for gross proceeds of $4,000,000.

Eagle Hill is very pleased to announce that the majority of the $4,000,000 Financing has been placed with London based institutional investors. The Company will pay the Agents a cash fee equal to 5% of the gross proceeds raised in connection with the Financing, this commission was reduced from the previously announced 9% cash commission. In addition, the Agents will receive warrants equal to 10% of the Shares issued in the form of agent's warrants (the "Agent's Warrants"). Each Agent's Warrant allows the holder to acquire one Share of Eagle Hill for a purchase price of $0.25 per share exercisable for four years.

Proceeds of the Financing will be used for further exploration and development of the Windfall Lake Property and for general working capital purposes.

The Financing is subject to certain conditions, including but not limited to the receipt of all necessary approvals including the final approval of the TSX Venture Exchange. All securities issued pursuant to the Financing, including the Shares and the Agent's Warrants and the Shares underlying the Agent's Warrants are subject to a four (4) month and one day statutory hold commencing from closing.

About the Windfall Lake Property

The Windfall Lake Property is comprised of 362 contiguous claims (over 12,000 hectares) in the Abitibi mineralized belt of northern Quebec. This area between Val-d'Or and Chibougamau is known for its gold and copper production and excellent infrastructure for exploration and mining. Historically, the Windfall Lake Property has had extensive historic grassroots exploration work. Along with its independently acquired claims at the Windfall Lake Property. Eagle Hill has signed options with Murgor Resources Inc., Cliffs Natural Resources Inc. (formerly, Freewest Resources Canada Inc.), and Noront Resources Inc. to acquire the Windfall Lake Property.

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 metals 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 have large resource 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.


P. Bradley Kitchen, President

Neither the 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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