Eagle Plains Announces Proposed Spin-Out of Yellowjacket Gold Project

The Board of Directors of Eagle Plains Resources Ltd. (TSX-V:EPL) (Pink Sheets: EGPLF) (the “Company” or “Eagle Plains”) is pleased to announce its plan (subject to court, shareholder and regulatory approval) to transfer the Company’s Yellowjacket Gold Project under a Plan of Arrangement (the “Arrangement”) in an effort to maximize shareholder value. The project as described below will be transferred into a new company, incorporated under the name Yellowjacket Resources Ltd. (“Yellowjacket”). Under the proposed Arrangement, there will be approximately 33,000,000 common shares of Yellowjacket outstanding.

Under the terms of the proposed Arrangement, Eagle Plains shareholders of record on the effective date of the Arrangement will receive one share of Yellowjacket for every three Eagle Plains shares held. Eagle Plains will hold approximately 15% of the total common shares of Yellowjacket, resulting in the transfer from Eagle Plains to Yellowjacket of no less than $100,000 cash. Concurrently, Eagle Plains will transfer to Yellowjacket its entire interest in the Yellowjacket Project, an additional $500,000 cash and certain investments to provide working capital and exploration funding. Yellowjacket will apply to have its shares listed on the TSX Venture Exchange.

The reorganization is designed to improve the separate identification and valuation of the Yellowjacket Project and specific Eagle Plains properties, to enhance Eagle Plains’ ability to divest specific properties through simpler corporate ownership, and to enable Eagle Plains to separately finance and develop its various assets, selectively reducing stock dilution. The process is very similar to that which resulted in the creation of Copper Canyon Resources Ltd., which was spun-out from Eagle Plains in 2006 and taken over by NovaGold Canada Inc. in May, 2011 at a value of approximately $65,000,000.

The rationale for the formation of Yellowjacket is to advance the exploration and development of the Yellowjacket project. The formation of Yellowjacket will also allow Eagle Plains to continue to focus on its core business model of acquiring and advancing grass-roots base and precious metal exploration properties.

The proposed reorganization will be subject to shareholder approval by resolution approved by not less than 66 2/3 % of votes cast. The Company expects to present the matter to shareholders at a special meeting targeted for mid-November, 2011. The Company anticipates that the reorganization and listing of Yellowjacket will be completed shortly thereafter. The reorganization is also subject to approval of the Court of Queen’s Bench of Alberta and to acceptance by the TSX Venture Exchange. Further particulars will be announced in due course.

Yellowjacket Project Summary

The Yellowjacket Project is located 9 km east of Atlin, BC and is accessed by all-season road. Hydro-electric power is located within 5km of property boundaries. The project received a B.C. Mines Act permit in July, 2009 for an open pit gold mine and onsite 400 tpd mill and concentrator, processing up to 75,000 tons per year. The permit contemplates a 7–9 year mine life from a series of open pits entirely within an area of disturbed placer workings. Gold may be recovered using a simple gravity concentrating recovery plant without the use of chemicals or additives. Eagle Plains owns both mineral (hard-rock) and placer rights within the Project area. In October 2009, Eagle Plains and Prize announced the formal ratification of an Impact and Benefits Agreement with the Taku River Tlingit First Nation.

About Eagle Plains Resources

Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. Since 1992, EPL has been acquiring and developing early stage projects utilizing an in-house team of geologists, technicians and specialists. Considered a prolific project generator with over 35 properties, EPL invites joint venture participation to expedite development, reduce risk and enhance exposure to discovery.

Current third party agreements if maintained to completion, expose EPL to over $50M in exploration expenditures, $5.7M cash and 13M shares in partner companies. Completed agreements have yielded over $17M in exploration spending, $1M cash to EPL and a total of 16M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp., Aben Resources Ltd. and others.

Expenditures during 2011 on Eagle Plains-related projects are expected to be approximately $8,000,000, to be funded by Eagle Plains and third party partners. This exploration work is expected to result in approximately 9400m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development.

Signed,

“Tim J. Termuende”

President and CEO

Cautionary Note Regarding Forward-Looking Statements

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. 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.

Eagle Plains Resources (PK) (USOTC:EGPLF)
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