Mountain Capital Inc.

Mountain Capital Inc.

December 10, 2007 09:00 ET

Mountain Capital Inc.: Application for Approval of a Qualifying Transaction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2007) - Mountain Capital Inc. (the "Company") (TSX VENTURE:MCI.P) is pleased to announce that pursuant to an arm's length agreement dated November 23, 2007 with Eagle Plains Resources Ltd. ("Eagle Plains"), a British Columbia corporation listed on the TSX Venture Exchange (the "Exchange"), the Company has been granted the option to earn a 60% interest in the Kalum Property (the "Property") located approximately 35 kilometres northwest of Terrace, British Columbia in the Skeena Mining Division of British Columbia. In order to exercise the option and acquire a 60% interest in the Property the Company is required to make cash payments totalling $500,000, issue 500,000 common shares and make exploration expenditures of $4,000,000 all over a period of five years, of which $5,000 has been paid as a refundable deposit and $20,000 and 50,000 shares are due to Eagle Plains upon closing. The exploration commitment in the first year of the agreement is $250,000. The Property is subject to a 1% net smelter returns royalty in favour of a third party. It is expected that this transaction will constitute the Company's qualifying transaction pursuant to the policies of the Exchange. Closing is not subject to shareholder approval but is subject to the acceptance for filing by the Exchange. Following closing of the transaction, the Company will be a mineral exploration company.

After the Company's shares have been reinstated for trading on the Exchange, but prior to closing of the transaction, the Company intends to conduct a Non-Brokered Private Placement Financing of Flow-Through Units to raise gross proceeds of a minimum of $100,000 and a maximum of $250,000 which will be used for exploration on the Property.

Upon closing of the transaction, the only persons who will beneficially own, directly or indirectly, or exercise control or direction over, more than 10% of the issued and outstanding common shares of the Company are as follows:

Name & Municipality of No. of Common Percentage of Issued and
Residence Shares Outstanding Common Shares

Bedo H. Kalpakian
Richmond, B.C. 650,000 10.7%

Jacob H. Kalpakian
Vancouver, B.C. 650,000 10.7%

There will be no change in directors, officers or insiders of the Company following closing of the transaction. Information on directors, officers and insiders of the Company is contained in the Company's Final Prospectus dated January 30, 2006, a copy of which is available on the Sedar website at www.sedar,com.

The Property

The Property is comprised of 20,762 hectares of contiguous claim units and is the subject of a report prepared by Peter M. Daignault, P. Geo. dated October 29, 2007 and entitled "2007 Exploration and Geological Report for the Kalum Property" which has been filed with the Exchange and will be filed on SEDAR following review by the Exchange. Wayne Murton, P. Eng, a director of the Company, is the qualified person as defined by National Instrument 43-101 who is responsible for the accuracy of this news release.

The Property is centred upon a Cretaceous-age granodiorite stock of the Coast Crystalline Complex that has intruded Jurassic to Cretaceous-age sedimentary rocks of the Bowser Lake Group. A number of high-grade, vein-type gold occurrences are associated with the contact zone and magnetic signature of the intrusive stock. These occurrences have been explored by various operators and to various degrees over the past 80 years. All previous exploration efforts have been directed toward the discovery of high-grade stand-alone mineralization. The current Eagle Plains tenure represents the first time gold occurrences have been consolidated by a single company.

Eagle Plains initiated property acquisition in the Kalum area in 2003 and completed significant exploration programs on the property in 2003 and 2004. The programs included a VTEM airborne survey, extensive geochemical programs, geologic mapping, and a 19 hole diamond drill program. In addition, many of the historical showings on the Property were located, sampled and surveyed. The program was successful in consolidating and evaluating all historic showings, discovering new high-grade Au-Ag occurrences, and developing new exploration models to help focus exploration in new directions.

Recommendations for future work on the Property include continued grass roots exploration within previously unexplored structural zones. It is estimated that the exploration program will take two months to complete and cost $250,000.

General Information

Sponsorship of a qualifying transaction of a capital pool company is required by the Exchange unless exempt in accordance with Exchange policies. The Company intends to apply for an exemption from sponsorship requirements however there is no assurance that the Company will obtain this exemption.

Completion of this transaction is subject to a number of conditions, including but not limited to, Exchange acceptance. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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