SOURCE: Eagle Plains Resources Ltd.

December 18, 2006 13:51 ET

Eagle Plains Completes $3.1M Financing

CRANBROOK, BC -- (MARKET WIRE) -- December 18, 2006 -- Eagle Plains Resources Ltd. (TSX-V: EPL) has closed a non-brokered public offering as announced on November 10th, 2006 and amended November 15th, 2006. The financing was comprised of 2,577,125 flow-through units and 1,649,400 non-flow-through units for gross proceeds of CDN $3,133,810.

The flow-through units consist of a flow-through common share priced at $.80 per share with an 18-month non-flow-through common share purchase warrant priced at $1.00. The non-flow-through units consist of a non-flow-through common share priced at $.65 and a non-flow-through common share purchase warrant, each whole warrant exercisable at $1.00 for an 18-month period.

The common share purchase warrants are subject to an accelerated expiry if the published closing trade price of the common shares on the TSX Venture Exchange is greater than or equal to $1.20 for any 10 consecutive trading days, in which event the holder will be given notice that the warrants will expire 30 days following the date of such notice. The common share purchase warrants may be exercised by the holder during the 30-day period between the notice and the expiration of the common share purchase warrants.

The proceeds from the sale of the flow-through shares will be used for exploration of the company's various assets in British Columbia, Saskatchewan, Yukon and NWT. A portion of these funds will qualify as Canadian Exploration Expenses ("CEE") as defined in the Income Tax Act and will be renounced for the 2006 taxation year. The net proceeds from the sale of the non-flow-through units will be used for general corporate purposes.

A total of $161,508 in finders fees were paid to certain individuals in relation to the offering.

Insider participation:

Tim J. Termuende (44,000 FT units), Charles C. Downie (6,250 FT units), David Johnston (30,000 FT units)

Pro-group participation: P. Krag-Hansen (75,000 NFT units), B. Kvellestad (15,000 FT units), J. Newell (18,000 FT units), John Welch (12,500 FT units), Ben Johnson (100,000 NFT units)

Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 30 gold and base-metal projects, many with third parties including Alexco Resource Corp. (TSX-V: AXR), Solomon Resources Inc (TSX-V: SRB), Blind Creek Resources and Golden Cariboo Resources Inc. (TSX-V: GCC). These agreements expose Eagle Plains to over $11.0 million in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 30,000m (100,000') of drilling and over $9,000,000 in exploration spending on its projects since 1998. During the 2005 season, EPL and its partners completed over 11,900m (39,000') of diamond drilling on its properties.

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.

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