Mr. Barry Hildred reports

AQUILA RESOURCES ANNOUNCES CLOSING OF OVERSUBSCRIBED NON-BROKERED PRIVATE PLACEMENT

Aquila Resources Inc. has closed its previously announced private placement for total gross proceeds of $1.17-million.

As per the terms of the offering, Aquila issued 8,972,354 units at a price of 13 cents per unit. Each unit consists of one common share of the company and one common share purchase warrant. Each warrant will be exercisable at 15 cents for a period of 36 months following the closing of the offering.

Baker Steel Capital Managers LLP subscribed for 3,846,154 units of the private placement for proceeds of $500,000. This transaction will increase its equity interest in Aquila from 24.9 per cent to 25.7 per cent.

In connection with the offering, Aquila paid $31,014 in cash commissions and issued 238,572 broker warrants. Each broker warrant will be exercisable at 15 cents for a period of 36 months following the closing of the offering.

Proceeds from the offering will be used for the further exploration and development of Back Forty and general working capital purposes.

We seek Safe Harbor.