Eagle Hill Exploration Corporation

Eagle Hill Exploration Corporation

September 30, 2009 08:01 ET

Eagle Hill Obtains Approval to Acquire Windfall Lake Project and Closes $2.25 Million Tranche

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 2009) - Eagle Hill Exploration Corporation ("Eagle Hill" or the "Company") (TSX VENTURE:EAG) is pleased to announce that the TSX Venture Exchange (the "Exchange") has approved the Eagle Hill acquisition of the Windfall Lake Property ("Windfall Lake").

Eagle Hill also is pleased to announce the closing of the first tranche of its previously announced C$3.175 million private placement financing for gross proceeds of C$2,249,999.90 (the "Private Placement") through its agent, IBK Capital Corp.

The Exchange approval of Eagle Hill's acquisition of Windfall Lake and the Private Placement will allow Eagle Hill to proceed to meet its initial obligations on the acquisition of the property from Noront Resources Ltd. and advance data compilation and exploration on the site this season.

The Private Placement is comprised of 13,250,000 non-flow through units (a "Common Share Unit"), consisting of one common share and one share purchase warrant (a "CS Warrant"), at a price of $0.10 per Common Share Unit and 6,166,666 flow through units (a "Flow-Through Unit"), consisting of one common share and one half share purchase warrant (a "FT Warrant"), at a price of C$0.15 per Flow-Through Unit. Each whole CS Warrant and FT Unit will entitle the holder to acquire one additional common share of the Company at a price of C$0.20 for a period of one (1) year after the closing.

The Common Share Units and Flow-Through Units issued in connection with this Private Placement are subject to a hold period until January 30, 2010, in accordance with applicable securities laws and Exchange policies.

Eagle Hill engaged IBK Capital Corp. ("IBK" or the "Agent") to complete the Private Placement on a best efforts basis. The Company paid an aggregate cash commission in the amount of C$202,499.99 to IBK and its selling group agents. The Company also issued 1,325,000 Agent's warrants entitling IBK and its selling group agents to purchase up to 1,325,000 common shares at a price of C$0.10 for a period of four (4) years from the date of issue (the "Non-Flow-Through Agent's Warrants") and 624,667 Agent's warrants entitling IBK and its selling group agents to purchase up to 624,667 common shares at a price of $0.15 for a period of four (4) years from the date of the issue (the "Flow-Through Agent's Warrants"). The Agent engaged the following sub-agents in connection with the completion of the first tranche of the Private Placement: CIBC World Markets Inc., Brant Securities Ltd., Octagon Capital Corp., Sherbrooke Street Capital, Union Securities Ltd., Raymond James Ltd., CIBC Wood Gundy, Primary Capital Inc., Dundee Securities Corporation and Jones, Gable & Company Ltd.

The Pro-Group participants in the Private Placement are: Ian Thomas Haar,100,000 units; Samantha Sharpe, 150,000 units; Jay Smith, 666,667 units; Wayne J. White, 216,667 units; Alamy Holdings Inc., 50,000 units (Barbara J. White); David McLeish, 150,000 units; David Jones, 135,000 units; Alberto Galeone, 531,667units; and D.M. Ross, 183,331 units.

The net proceeds from the Private Placement will be used to fund the option price on Windfall Lake and the initial exploration and development program of the Company's interest in the Windfall Lake, located in Urban Township, Quebec, between Val D'or and Chibougamau.

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.


P. Bradley Kitchen, President


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.

Contact Information