Take-Over Offer by NovaGold

bwire




CRANBROOK, British Columbia (Business Wire) -- Copper Canyon Resources Limited ("Copper Canyon" or the "Company")
(TSX-V:CPY) is responding to an announcement made Monday December 20th
by NovaGold Resources Inc. ("NovaGold") that it intends to make an offer
to purchase by way of an unsolicited takeover bid circular (the
"Takeover Bid") all of the shares of Copper Canyon for an effective
price of approximately $.60 per share.




Under the terms of the announced proposed Takeover Bid, the common
shares of Copper Canyon (the "Common Shares") would be exchanged for
common shares of NovaGold ("NovaGold Common Shares") on the basis of
0.0425 of a NovaGold Common Share for each one Common Share,
representing an effective purchase price of $.60 per Common Share, based
upon the closing price of the Common Shares and the NovaGold Common
shares on the TSX Venture Exchange ("TSX-V") and the Toronto Stock
Exchange ("TSX"), respectively, on December 17th, 2010.




Copper Canyon's principal asset is its 40% joint venture interest in the
Copper Canyon copper-gold-silver property that is adjacent to the Galore
Creek project, owned equally by NovaGold and Teck Resources Limited. A
wholly-owned subsidiary of NovaGold owns the remaining 60% joint venture
interest in the Copper Canyon property. Copper Canyon also holds a 100%
interest in the "Abo" gold project located near Harrison, B.C.




Tim J. Termuende, President and Chief Executive Officer of Copper
Canyon, stated: "By making an offer for Copper Canyon, NovaGold has
clearly acknowledged the quality and caliber of the Copper Canyon
assets. We are surprised by the timing of this offer so close to the
Holiday season, but are not unprepared".




Discussions with Copper Canyon's shareholders, which together with
insiders control a substantial percentage of Copper Canyons' fully
diluted shares, have indicated strong support for Copper Canyon's
management and a belief in the long-term value of the Company's assets -
value that is apparently not reflected in the NovaGold offer.




The Board of Directors of Copper Canyon is now reviewing the adequacy of
this offer. As part of the review process, the Board of Directors has
established a committee of independent directors to oversee the
appointment of a financial adviser and special legal counsel to the
committee. An independent valuation has been commissioned for the
existing assets of the Company. The Company has in place a shareholders
rights plan, which is designed to protect the interest of all
shareholders. Copper Canyon will consider all possible alternatives,
including any competing offers it may receive, to maximize shareholder
value.




While that process is underway, Copper Canyon shareholders should await
the results of the review and the recommendation of the Copper Canyon
Board before making any decisions with respect to the NovaGold offer. After
the formal Takeover Bid is received from NovaGold, Copper Canyon will
issue a Directors' Circular that will contain important information for
shareholders, including the Board recommendation regarding the offer.
Copper Canyon advises shareholders to not deposit any common shares to
the NovaGold offer and to not take any other action concerning the offer
until shareholders have received and read the Directors' Circular.




The Directors' Circular, when it becomes available, along with other
documents will be filed by Copper Canyon with the Canadian provincial
securities regulators on SEDAR at
free, once they have been mailed, on Copper Canyon's website or by
directing a request to Copper Canyon's corporate secretary at Suite 200,
44-12th Avenue S., Cranbrook, British Columbia, Canada V1C 2R7,
telephone (250) 426-0749.




About Copper Canyon




Copper Canyon Resources was created by way of a Plan of Arrangement on
June 9, 2006. Shareholders of Eagle Plains Resources Ltd. (TSX-V:EPL)
approved the plan to reorganize the company's mineral property assets in
an effort to maximize shareholder value. Under the terms of the
arrangement, three of Eagle Plain's projects: Copper Canyon, Severance
and Abo (Harrison) Gold, were transferred into Copper Canyon.




On behalf of the Board of Directors




Signed




"Tim J. Termuende"




President and CEO