Eagle Plains/Providence Identify Multiple New Drill Targets Based Upon Historical Soil Data and Provides an Update for 2011 Drilling on the Iron Range Project

Last Update: 1/17/2012 11:33:00 AM

CRANBROOK, British Columbia, Jan 17, 2012 (BUSINESS WIRE) -- Eagle Plains Resources (EPL)(EGPLF) and Providence Resources Corp. (PV) are pleased to announce that a systematic compilation and analysis of historical soil geochemistry data has identified eight anomalous zones including two high priority, multi-element soil anomalies that are slated for drill testing in 2012, and six additional anomalous zones, that have been selected for field evaluation as part of the 2012 exploration program. For maps and figures related to this news release please visit our website http://www.eagleplains.com/projects/bc/ironrange/ .

"Our analysis of the historic soil data confirms our belief that the Iron Range Property displays an anomalously high background metal endowment and demonstrates that the entire property is prospective for gold mineralization in addition to the traditionally explored for Sullivan-style lead-zinc mineralization," stated Providence Resources Corp.'s President and CEO Vince Sorace. "The results from the soil data compilation are highly encouraging; we are looking forward to comparing these anomalies with those obtained from electromagnetic and gravity surveys when results are available."

The final 3 drill holes of the 2011 drill program (1,044.2 metres) were completed in August, 2011. Drill holes IR11-027 to IR11-029 intercepted the Talon Zone at depth. IR11-27 was drilled oblique to the Talon Zone and returned 3 meters @ 3.29 g/t gold and 4.6 g/t silver, IR11-28 and 29 were drilled perpendicular to the zone and returned 12.0 meters @ 0.59 g/t gold, 2.5 g/t silver and 2 meters @ 2.34 g/t gold, 61.2 g/t silver respectively. A map outlining these drill locations is available at http://www.eagleplains.com/projects/bc/ironrange/

2012 Exploration Program

The Company intends to execute a full exploration program in 2012 with the objective of systematically evaluating all existing exploration data, utilizing newly acquired 2011 geophysical surveys, field evaluating all resulting anomalies and ultimately drill testing the highest priority targets.

-- Systematic compilation and analysis of historical soil geochemistry -- this work and the resulting anomalies are the focus of this news release.

-- Geophysical electromagnetic and gravity surveys -- it is anticipated that results from this work will be available in February 2012.

-- Winter drilling (Phase I) of high-priority geophysical and geochemical anomalies. Two targets have been identified during the evaluation of historical geochemistry and additional targets are anticipated.

-- Field work will be completed in summer 2012 with the objective of bringing remaining targets to the drill testing stage for Phase II drilling in late 2012.

Historic Iron Range Soil Surveys

Soil anomalies were identified as part of ongoing compilation of historical data on the Iron Range Project. Data compilation work is producing exploration targets in advance of gravity and electromagnetic survey results that will be available in February, 2012. All available geological, geochemical and geophysical data will be used to delineate priority targets which will be tested during 2012 Phase I and Phase II drilling.

A total of 12,201 soil samples were collected by various operators between 1986 and 2010 within the limits of the Iron Range project. These data have been systematically compiled by TerraLogic Exploration Services and re-evaluated by Providence Resources Corp. Soil anomalies were selected where assay values exceed the mean value of the survey by at least 1 standard deviation and where an anomaly can be traced across at least two soil lines within a given survey or an adjoining survey. Priority is assigned to anomalies that are present within multiple elements in a given survey.

A total of eight geochemical anomalies have been identified. Two anomalies (Canyon and Row) are considered high priority at this early stage of evaluation and are already slated for drill testing. The remaining six anomalies will be further evaluated throughout 2012. A map and description of these anomalies can be found at http://www.eagleplains.com/projects/bc/ironrange/ .

2011 Talon Zone Drill Results

Drill intercepts from 2011 diamond drilling for holes IR11-027, IR11-028 and IR11-029 within the Talon Zone are summarized below. The Talon Zone is a 30 meter-wide, steeply west-dipping, northeast-striking fault zone marked by moderate to intense silica-sericite (minor albite) alteration zone and hosts precious and base metal mineralization. The object of the 2011 diamond drill program was to determine the thickness, strike and depth extent of the gold and base metal mineralization within the Talon Zone.

IR11-027

IR11-027 shares the same collar as previous drill hole IR11-026. This hole was designed to test the continuity and intensity of mineralization within the steeply west-dipping Talon Zone at depth. IR11-027 defines the western limit of the intense silica-sericite-albite alteration zone intersected in IR11-026 drill hole (101.4m of 0.5g/t Au), defined by three narrow intervals of significant gold values. Mineralization occurs in fractures and within a quartz-carbonate breccia matrix with localized narrow sections of semi-massive sulphide. Mineralization is dominantly pyrite with minor arsenopyrite +/- sphalerite and rare galena.

IR11-028

IR11-028 was drilled approximately 70m northeast of IR11-026/027. An isolated intercept of 1.0m of 2.87g/t Au is coincident with the appearance of breccia which is consistent with the down-dip extension of the sub-vertical (west-dipping) Talon zone. Mineralization consists of arsenopyrite with lesser pyrite, rare sphalerite, and galena within a dolomite-calcite-quartz matrix supported breccia.

IR11-029

IR11-029 was the final hole drilled in the 2011 Talon zone drill campaign. In order to obtain a perpendicular cut through the Talon zone, this hole was drilled at 135Es azimuth and a -55Es dip angle. This hole returned 2.0m grading 2.34g/t Au (110-112 meters) defining the central portion of the Talon zone below the surface oxide zone. Mineralization is characterized by a 10 cm interval of massive pyrite and lesser arsenopyrite within an oxidized, limonitic breccia.

  
Hole
    
From
    
To
   
Length
   
Gold
   
Lead
  
Zinc
  
Silver
    
Lead
     
Zinc
    
#
      
(m)
    
(m)
    
(m)
    
(g/t)
   
(%)
   
(%)
   
(g/t)
    
(ppm)
    
(ppm)
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
IR11027
   
221.8
  
237.1
  
15.25
   
0.29
   
0.05
  
0.11
   
3.16
    
481.99
   
1053.34
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
  
Incl.
   
234.8
  
237.1
   
2.3
    
0.89
   
0.12
  
0.11
   
12.93
   
1229.95
  
1076.51
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
IR11027
    
260
    
274
    
14
     
0.86
   
0.06
  
0.05
   
4.63
    
550.24
   
479.91
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
  
Incl.
    
271
    
274
     
3
     
3.29
   
0.21
  
0.18
   
18.20
   
2145.00
  
1751.00
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
IR11027
   
344.5
  
346.9
  
2.35
    
1.06
   
0.09
  
0.05
   
7.06
    
942.64
   
537.37
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
IR11027
    
376
    
385
     
9
     
0.14
   
0.01
  
0.01
   
0.49
     
89.51
    
84.41
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
IR11028
    
239
    
251
    
12
     
0.59
   
0.06
  
0.14
   
2.54
    
632.82
   
1359.46
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
  
Incl.
    
239
    
240
     
1
     
2.87
   
0.32
  
0.35
   
9.70
    
3215.00
  
3459.00
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
IR11028
    
260
    
278
    
18
     
0.24
   
0.025 0.05
   
2.17
    
247.57
   
467.53
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
IR11028
    
297
    
304
     
7
     
0.19
   
0.01
  
0.01
   
2.27
    
132.19
   
119.13
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
IR11028
    
383
    
392
    
11
     
0.16
   
0.01
  
0.03
   
0.99
    
127.58
   
337.96
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
IR11029
    
100
    
116
    
16
     
0.38
   
0.06
  
0.12
   
13.73
   
632.37
   
1150.46
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
  
Incl.
    
110
    
112
     
2
     
2.34
   
0.22
  
0.37
   
61.20
   
2175.28
  
3650.50
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
IR11029
    
140
    
150
    
10
     
0.51
   
0.13
  
0.18
   
9.40
    
1309.00
  
1785.00
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
  
Incl.
    
140
    
144
     
4
     
0.77
   
0.05
  
0.13
   
6.73
    
505.29
   
1322.68
-------
  
-----
  
-----
  
------
  
-----
  
-----
  
----
  
------
  
-------
  
-------
Table 1. Talon Zone Drill intercepts for drill holes
IR11-027 to IR11-029. Note that there is insufficient
drilling to determine the true thickness of the mineralized zones

Quality Control

Geological exploration contracting services on the Iron Range property during 2011 are being provided by TerraLogic Exploration of Cranbrook, B.C. (a wholly-owned subsidiary of Eagle Plains). Diamond drilling is being carried out by F.B. Drilling of Cranbrook, B.C. All fieldwork is under the supervision of geologist J.K. Ryley while C.C. Downie, P.Geo. is hereby identified as the overall project supervisor. Technical aspects of this news release have been reviewed and approved by T.J. Termuende, P.Geo., hereby designated as a qualified person under National Instrument 43-101.

Iron Range Project Summary

The Iron Range deposits were originally staked in 1897, and were covered by Crown grants held by Cominco Ltd. and the Canadian Pacific Railway. Eagle Plains Resources ("Eagle Plains") staked the current claims immediately after the Crown grants reverted in 2000, and has been exploring the property since then. Exploration work to date includes geological mapping, geochemical surveys, diamond drilling and a 690-line-kilometre airborne geophysical survey.

The Iron Range project is owned 100 per cent by Eagle Plains and holds no underlying royalties or encumbrances. An additional 35,800 hectares of claims were added to the original land package, resulting in a total of 56,200 hectares -- an area approximately 11 km by 50 km. The land package now covers over 30 km of the Iron Range structure, most of it unexplored. The claims also overlie rocks of the Aldridge formation, including the same stratigraphic time horizon that hosts the world-class Sullivan deposit located 70 km to the northeast. Over its 100-year lifetime, Sullivan produced approximately 150 million tonnes of ore including three billion ounces of silver, eight million tonnes of zinc and eight million tonnes of lead, collectively worth over $30-billion at current metal prices. The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Iron Range property.

Providence Option Agreement

The Iron Range project is owned 100% by Eagle Plains and holds no underlying royalties or encumbrances. Providence holds the option to earn a 60% interest in the Property by spending $3,000,000 on exploration, making $500,000 in cash payments and issuing 1,000,000 shares to EPL over 4 years.

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 $55M in exploration expenditures, $6.5M cash and 20M 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 were approximately $9,100,000 which was funded by Eagle Plains and third party partners. This exploration work resulted 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

For further information on EPL, please contact Mike Labach at 1 866 HUNT ORE (486 8673) Email: [email protected] or visit our website at http://www.eagleplains.com