Yellowjacket Announces Allocation of Cost Base on Spin-Out Completion

Cranbrook, British Columbia CANADA, March 27, 2012 /FSC/ - Yellowjacket Resources Ltd. (YJK - TSX Venture)

On December 13, 2011, Eagle Plains Resources Ltd. (EPL-TSX.V) ("Eagle Plains") completed the spin-out of its interest in the Atlin gold project to Yellowjacket Resources Ltd. (TSX-V: YJK) ("Yellowjacket"). Eagle Plains shareholders were issued one Yellowjacket share for each three Eagle Plains shares held as of the close on December 21, 2011.

This summary is of a general nature only and is not intended to be, nor should it be considered to be, legal or tax advice to any particular Holder. The tax consequences to any particular Holder will depend on a variety of factors including the Holder's own particular circumstances. Therefore, all Holders, and all persons affected by the Plan of Arrangement should consult their own tax advisors with respect to their particular circumstances.

The Canadian federal income tax consequences of the spin-out transaction are summarized in the information circular of Eagle Plains dated November 15, 2011, as filed on the SEDAR website. In particular, shareholders should reduce the Adjusted Cost Base ("ACB") of Eagle Plains shares by an amount which should then be recorded as the acquisition cost of the Yellowjacket shares. Management of Eagle Plains and Yellowjacket have calculated that the ACB of each post-spin-out common share of Eagle Plains should be reduced to 68.42% of its pre-spin-out ACB and that 31.58% of the ACB of each pre-spin-out common share of Eagle Plains should be recorded as the acquisition cost of each Yellowjacket share. This fair value ACB adjustment calculation is based on the relative fair market value of Eagle Plains assets at the time of the spin-out. No such determination of fair value by Eagle Plains is binding on the Canadian tax authorities.

The issuance of a Yellowjacket share to the shareholder of EPL resulted in a disposition of a particular share of EPL by the shareholder. The disposition may be taken on a tax-deferred basis pursuant to the provisions of Subsection 85(1) of the Act which should result in the shareholder of EPL not having to report a capital gain on the transaction provided that the shareholder elects to transfer the share at the ACB of the share to the shareholder. The transaction will require the shareholder of EPL and Yellowjacket to file an election Form T2057 on a timely basis with the CRA and we encourage the shareholder of EPL to obtain the appropriate advice to ensure that the filing of the election form is completed properly, and that it is filed with CRA on a timely basis. Eagle Plains management has determined that the necessity to file the Form T2057 should only be required if the EPL shareholders adjusted cost base of their shares is less than $0.14 per share.

The election pursuant to Subsection 85(1) will require the joint filing on a timely basis with the CRA of Form T2057 by the shareholder of EPL and Yellowjacket. Instructions for providing the necessary information to complete Form T2057 is on both the YJK and EPL Website. This election Form T2057 will be due on or before the earlier date on which any one of the parties to the election is required to file an income tax return for the taxation year in which the transaction occurred.


About Yellowjacket Resources

Yellowjacket Resources was created in December 2011 by way of plan of arrangement and spun-off from Eagle Plains Resources Ltd. (TSX-V:EPL) on a one for three share basis to the shareholders of Eagle Plains. Yellowjacket will focus on the development of the Yellowjacket Gold Project. 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. Yellowjacket owns both mineral (hard-rock) and placer rights within the Project area. The project is located within the traditional territory of the Taku River Tlingit First Nation who have entered into a formal Impact and Benefits Agreement with respect to the project.

As part of the spinout transaction Eagle Plains holds 15% of the total common shares of Yellowjacket. Concurrently, Eagle Plains transferred to Yellowjacket its entire interest in the Yellowjacket Project, an additional $600,000 cash and certain investments to provide working capital and exploration funding.


Signed,

"Charles C. Downie"

President and CEO
Yellowjacket Resources Ltd.


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



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.


To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/yellowjacket03272012.htm



Source: Yellowjacket Resources Ltd. (TSX-V: YJK) http://www.yellowjacketresources.com
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Source: Filing Services Canada (March 27, 2012 - 4:30 PM EDT)

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