CRANBROOK, BRITISH COLUMBIA--(Marketwire - March 1, 2011) - CopperCanyon Resources Ltd. ("Copper Canyon" or the "Company") (TSXVENTURE:CPY) has filed a Notice of Civil Claim in British ColumbiaSupreme Court against NovaGold Resources Inc. ("NovaGold") and NovaGoldCanada Inc. ("NovaGold Canada") seeking specific performance of itsright of first refusal to acquire the Copper Canyon property. CopperCanyon has also applied to the British Columbia Securities Commissionseeking to cease trade NovaGold's hostile takeover bid for all of theoutstanding Copper Canyon shares (the "NovaGold Offer").
Law Suit for 100% Interest in the Copper Canyon Property
Pursuant to an Option Agreement and a Joint Venture Agreement withNovaGold Canada, Copper Canyon has a right of first refusal to purchaseNovaGold Canada's 60% interest in the Copper Canyon property prior tosale of such interest to a third party. NovaGold has disclosed in theNovaGold Offer and in its previous public disclosure documents that itholds its 60% interest in the Copper Canyon property in trust for theGalore Creek Partnership, a 50/50 partnership between NovaGold and TeckResources Limited. Since NovaGold has transferred its beneficialinterest in the Copper Canyon Property to the Galore Creek Partnershipwithout first honouring Copper Canyon's right of first refusal, CopperCanyon has commenced a law suit against NovaGold and NovaGold Canadaseeking a declaration that the transfer is null and void and an orderthat NovaGold Canada notify Copper Canyon of the price and terms of suchtransfer so that Copper Canyon can exercise its right of first refusal.
Application to Cease Trade NovaGold's Hostile Takeover Bid
The Company has also applied to the British Columbia SecuritiesCommission seeking an order to cease trading the NovaGold Offer on thebasis that it fails to disclose material information to Copper CanyonShareholders. This material information includes the current OptimizedDevelopment Plan for the Galore Creek Project, which locates strategicinfrastructure necessary for the Galore Creek Project on the CopperCanyon property. This material information also includes the fact thatthe Galore Creek Partnership is the beneficial owner of NovaGoldCanada's 60% interest in the Copper Canyon property.
The Board Reaffirms its Recommendation that Shareholders REJECT the NovaGold Offer
The board of directors of Copper Canyon continues to reaffirm itsunanimous recommendation that Copper Canyon shareholders REJECT theNovaGold Offer, and NOT TENDER their shares to the NovaGold Offer.Further details on the Board's recommendation are contained in theDirectors' Circular, which has been filed on the SEDAR website at
www.sedar.com.
How to WITHDRAW Copper Canyon Shares from the NovaGold Offer
Copper Canyon shareholders who have deposited Copper Canyon shares underthe NovaGold Offer are urged to withdraw those Copper Canyon shares.Please see the Directors' Circular for instructions with respect towithdrawing your Copper Canyon shares or, for additional information orassistance, please contact Mike Labach at 1 866 HUNT-ORE (486-8673).
The Board intends to communicate further with Copper Canyon shareholdersprior to the expiry of the NovaGold Offer as and when material mattersshould arise.
About Copper Canyon
Copper Canyon Resources was created by way of a Plan of Arrangement onJune 9, 2006. Shareholders of Eagle Plains Resources Ltd. (TSXVENTURE:EPL) approved the plan to reorganize the company's mineralproperty assets in an effort to maximize shareholder value. Under theterms of the arrangement, three of Eagle Plain's projects: CopperCanyon, Severance and Abo (Harrison) Gold, were transferred into CopperCanyon.
On behalf of the Board of Directors
Tim J. Termuende, President and CEO
This news release may contain forward-looking statements including butnot limited to comments regarding the timing and content of upcomingwork programs, geological interpretations, receipt of property titles,potential mineral recovery processes, etc. Forward-looking statementsaddress future events and conditions and therefore, involve inherentrisks and uncertainties. Actual results may differ materially from thosecurrently anticipated in such statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.