Copper Canyon an Important Component

of NovaGold's Galore Creek

Cranbrook, B.C., 26 July, 2006: Copper Canyon Resources Ltd (TSX-V:CPY) has been notified that NovaGold Resources Inc. (AMEX, TSX:NG) has recently filed an application with the British Columbia government for a permit to construct significant infrastructure on surface lands overlying the Copper Canyon mineral claims, located immediately east of  Galore Creek in northwestern B.C. NovaGold has expended over $100M on the Galore Creek project since 2003.

Copper Canyon Infrastructure

As outlined in its application, NovaGold intends to construct an 18m high rock-fill diversion structure and 1500m of diversion channel within current Copper Canyon property boundaries. The structures are necessary to divert surface runoff waters from the planned tailings area located directly downstream. A map which outlines the proposed structures can be found on the Copper Canyon website at:

http://www.copcanyon.com/projects/coppercanyon/documents/coppercanyoninfrastructure.pdf

Copper Canyon Inferred Resource

An inferred category resource estimate completed by independent engineering firm Hatch Ltd. of Vancouver, B.C., Canada, shows that the Copper Canyon target at the Galore Creek project in northwestern British Columbia contains over 2.86 million ounces of gold, 37.9 million ounces of silver and 1.16 billion pounds of copper at a 0.35% copper equivalent cut-off grade (CuEq)(1) (See Table 1 below). Copper Equivalent grades are based both on long-term average metal prices and estimated recoveries based on extensive metallurgical data from the adjacent Galore Creek Central/SW deposit.  The estimate utilized a geologic model developed from the previously announced drilling at Copper Canyon during 2004 by NovaGold and historic results which had encountered significant widths of gold, silver and copper mineralization.  

Note: (1) Copper equivalent calculations use metal prices of US$375/oz for gold, US$5.50/oz for silver and US$0.90/lb for copper. Copper equivalent calculations (CuEq%) reflect gross metal content that have been adjusted for metallurgical recoveries based on the following criteria: Copper Recovery = (%Cu-0.06)/%Cu with a minimum of 50% and Maximum of 95%; Gold Recovery = (Au g/t – 0.14)/Au g/t with a minimum of 30% and Maximum of 80%; and Silver Recovery = 80%.

Copper Canyon Drilling Summary

There have been four drilling campaigns on the property since its discovery in 1955:

-7 holes were drilled in 1957 for a total of 1009m.

-In 1990, 13 holes were completed on the property for a total of 3785m. 7 of these holes were drilled to confirm 1957 results. Hole 1990-02 reported 270.8m (898’) grading 1.92 g/tonne Au, 22.28 g/tonne Ag and 1.05% Cu.

-In 2004, an 8-hole, 2710m program was completed by NovaGold which combined with earlier results defined a broad area of precious metal-rich mineralization at least 700 meters by 400 meters.  Highlights of this program included hole CC04-023, which intersected a total of 274.4 meters grading an average of 0.76 g/t Au, 12.9 g/t Ag and 0.74% Cu in four composite intervals. Included in this hole was an intersection over 33.5 meters which graded  1.77 g/t Au, 23.8 g/t Ag and 2.16% Cu.

-During September 2005, three holes were drilled for a total of 924.23m. Only one hole returned significant results, with hole GC05-30 intersecting 7.9m grading 17.2 g/tonne Au and 25.6 g/tonne Ag (including 2.5m grading 53.0 g/t Au (1.55 oz/ton)). CC05-0031 did not intersect any significant mineralization and was terminated due to stuck rods within a possible fault.

A compilation map outlining relative drillhole locations can be found at

http://www.copcanyon.com/projects/coppercanyon/CopperCanyonCompilation14x22V3_000.jpg

Future Work

Work proposed for 2006 includes additional drilling and surface mapping to follow up on high-grade intercepts reported from the 2005 drilling program.

Option Agreement

NovaGold may earn a 60% interest in the Copper Canyon property from CPY by completing C$3 million in exploration expenditures, issuing a total of 296,000 shares of NovaGold and making property payments totaling C$250,000. NovaGold may earn an additional 20% interest in the project for a total of 80% by paying Eagle Plains C$1 million and completing a feasibility study by September 2011. To date, NovaGold has issued 222,228 shares, made $90,000 in cash payments, and reported exploration expenditures of approximately $1.5 million.

Copper Canyon Resources Ltd. listed on the TSX-V on June 22nd, 2006 as a spin-off of Eagle Plains Resources (TSX-V:EPL) by way of a plan of arrangement. The corporation was formed in order to better reflect the significant value of the Copper Canyon, Abo and Severance properties.

This news release has been reviewed and approved by Tim J. Termuende, P.Geo., hereby designated as a “Qualified Person” under National Instrument 43-101.

On behalf of the Board of Directors

Signed

“Tim J. Termuende”

President and CEO

For further information, please contact Mike Labach at

1 866 HUNT ORE (486 8673)

mgl@copcanyon.com or visit our website at http://www.copcanyon.com

The TSX Venture Exchange has not reviewed and does not accept 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.