EEL

Eaglecrest Explorations Ltd. (TSX VENTURE:EEL)(FRANKFURT:EAT)  ("Eaglecrest";
the "Company") today announced that, further to the Letter of Intent previously
disclosed on December 8, 2009, on August 13, 2010 (the "Signature Date") it
signed the definitive agreement (the "Agreement") with Bullet Holding Corp.
("Bullet") to purchase up to a 75% interest in the mineral title of the 15,000
hectare Fredonia Area ("Fredonia"), located in Antioquia, Colombia. This is the
first of several projects Eaglecrest has been evaluating for acquisition in the
highly prospective and gold-rich, 300-kilometre long Middle Cauca Belt that
extends from AngloGold-Ashanti's 13 million ounce La Colosa gold project through
Medellin. 


"The acquisition of the Fredonia project is a major turning point for Eaglecrest
as a company. With the San Simon Bolivian project anchoring our portfolio, this
acquisition provides another significant land position within an unexplored
portion of a world-class gold belt where gold production dates back 500 years.
We are eager and energized to capitalize on this extraordinary opportunity and
are confident that this project will be a substantial source of added value for
the Company," cheered Eaglecrest's President Hans Rasmussen. 


Geologically, the belt extends as far south as the giant La Colosa gold project
and continues under most of the Fredonia land. There are mapped intrusive rocks
with surface gold mineralization throughout the property. Mr. Rasmussen
explained further, "Now that we have a signed agreement, we will engage our
Medellin-based team and begin regional geophysics, geochemistry and geology
compilation to identify those areas most likely to host typical porphyry
gold-copper targets, like La Colosa. Such a typical target can be from 500
metres to two kilometres in diameter. Because of the large land package, we
anticipate that several of these targets are likely to exist. Our team is highly
experienced in exploring these types of targets from the Andes of Chile and
Argentina to the Alaska Range, USA, and we feel that once we identify areas of
interest, we can quickly evaluate them by employing modern technology, skilled
consultants and our extremely deep knowledge base."


Fredonia Project Area:

The Fredonia project is positioned within one of the most prospective and
productive gold belts of Colombia, with more than 500 years of gold mining
history combined with a number of significant modern day discoveries.


The project is located between the Cauca River Valley and the city of Medellin,
in Antioquia, in the Middle Cauca Belt, between the Eastern and Western
Cordillera of the Andes Mountains. Its infrastructure is excellent, with vehicle
access by both asphalt and dirt road and electrical lines crossing the property
in various locales. 


There are a number of significant projects currently being advanced by
multi-national exploration and mining companies surrounding Fredonia to the
north and south. The northern portion of the Fredonia Project area has the
historic producing mines of Titiribi, Cerro Vetas and El Zancudo, which produced
gold from high-grade vein structures averaging typically 5 grams per tonne gold
or higher. To the south of the Fredonia Project is the Quebradona project,
recently discovered by AngloGold Ashanti/B2Gold. Gold grades from the 43 drill
holes at Quebradona have included intervals of over 300 metres of 1+ gram per
tonne gold, which is typical of porphyry-style gold mineralization in deposits
such as at La Colosa. Farther south of Quebradona and in the same geologic belt
lies the famous 500-year-old Marmato mining district, which has produced
significant gold, zinc, lead and silver from high-grade vein structures. 


Fredonia is a large area of principally unexplored ground but based on
Eaglecrest's experience, the initial reconnaissance exploration by Bullet, the
proximity to significant proven gold resources, and preliminary geophysical
work, there is a high-probability for the discovery of one or more large
porphyry-style gold deposits. The mineral title consists of 29 concessions
covering, 15,000 hectares of which have been granted by the government. Because
there still remain several areas under application status within this property
package, it is anticipated that granted mineral title in the Fredonia project
covered by this Agreement will grow further. 


Fredonia was selected as part of Eaglecrest's project generation program,
employing experience at the management and Board level arising from their
involvement with porphyry gold discoveries from Argentina and Chile to Alaska,
that range in size from three to 17 million ounces of gold. Several other
projects are currently being evaluated for acquisition by Eaglecrest in the same
belt near Fredonia.


Fredonia Project Agreement:

The terms of the Agreement are: 



--  Within five days after approval by the Exchange, Eaglecrest will issue
    to Bullet: 
    --  1,000,000 common shares without nominal or par value in the capital
        of Eaglecrest, at the deemed price of CAD$0.32 per share 
    --  warrants at the deemed price of US$0.001 each, entitling Bullet to
        purchase up to an aggregate of 1,000,000 common shares without par
        value in the capital of Eaglecrest at a price per Warrant Share of
        CAD$0.40 - the warrants are valid at any time until 4:30 p.m. PST
        two years from the Signature Date 
--  Over the three-year term of the agreement, Eaglecrest will make cash
    payments to Bullet. For more details on the cash payments, see agreement
    filed at www.sedar.com 
--  Over the three-year term of the agreement, Eaglecrest is required to
    spend US$2,800,000 in exploration of the area, including annual tax
    payments to keep the mineral titles in good standing 
    --  Within six (6) months of the Signature Date, Eaglecrest will have
        spent at least US$100,000 in expenditures on Fredonia for 12.5%
        interest 
    --  At the end of twelve (12) months from the Signature Date, Eaglecrest
        will have spent an additional US$1,000,000 in expenditures, or
        US$1,100,000 in aggregate for additional 12.5% interest or 25% total
        ownership 
    --  At the end of twenty-four (24) months from the Signature Date,
        Eaglecrest will have spent an additional US$1,100,000 in
        expenditures, or US$2,200,000 in aggregate for additional 25%
        interest or 50% total ownership 
    --  At the end of thirty six (36) months after the Signature Date,
        Eaglecrest will have spent an additional US$600,000 in expenditures,
        or US$2,800,000 in aggregate 
--  Eaglecrest can earn an additional 25% interest (to 75% total ownership)
    by making the expenditures described above within thirty-six (36)
    months, and by taking selected targets to feasibility over the following
    five-year period, or by the eighth (8th) year from the Signature Date 
--  Bullet will maintain its 25% Free Carried Interest until the 3rd
    Anniversary after signing the Definitive Agreement, or until a
    Feasibility Study is completed by Eaglecrest, whichever occurs first 
--  At this point, Bullet shall have the following options: 
    --  Continue in the project by providing twenty-five percent (25%) of
        the funds going forward, or 
    --  Be subject to an industry-standard dilution formula 
--  If either party is diluted to ten percent (10%) ownership or less, they
    will have the right to convert the interest into a two and a half
    percent (2.5%) Net Smelter Return 
--  At any time either party will have the right to sell their interest in
    the project for a fair market value per equivalent ounce as determined
    by an independent evaluation 



The agreement for the acquisition of the Fredonia project is subject to
acceptance by the TSX Venture Exchange. Any shares issued pursuant to the
agreement will be subject to a four-month hold period.


About Eaglecrest

Eaglecrest Explorations Ltd.'s mandate is to increase shareholder value by
employing deep expertise both at the Board level and on the ground to
systematically explore, develop and monetize promising gold projects in Colombia
and Bolivia. 


The management and geologic teams at Eaglecrest are comprised of industry
experts who have experience with gold discoveries while working during the past
two to three decades for both junior and major mining companies. With this team
and the improving sentiment towards gold, Eaglecrest plans to accelerate the
evaluation and capitalization of its Bolivian assets, as well as initiate its
anticipated exploration programs at and around, the Fredonia project, Colombia. 


If you would prefer to receive news releases via email please contact Jennie
Guay (jennie@chfir.com) and specify "Eaglecrest news" in the subject line.

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