Mr. Barry Hildred reports

AQUILA RESOURCES ANNOUNCES FILING OF THIRD QUARTER 2014 FINANCIAL RESULTS

Aquila Resources Inc. has filed its third quarter financial results for the period ended Sept. 30, 2014. Aquila's management's discussion and analysis, and financial statements are available on the company's website and on SEDAR.

Third quarter highlights

• In July, 2014, Aquila announced results from its preliminary economic assessment on the Back Forty project. Key highlights include:
  • A $282-million pretax net present value, 38.8-per-cent internal rate of return and 1.4-year payback period;
  • Total payable mine production expected to be 532,000 ounces of gold, 704 million pounds of zinc, 63 million pounds of copper, 4,645,000 ounces of silver and 11 million pounds of lead;
  • A total estimated initial capital cost of $261-million, comprising $177-million of direct preproduction capital expenditure, a $44-million contingency and a $40-million indirect and owner's costs;
  • Potential for a low capex, high-grade initial-phase operation with a $129.4-million pretax net present value, 38.6-per-cent internal rate of return and a $100.8-million initial capital cost. The initial-phase operation would provide attractive economic returns, mitigate certain start-up risks and provide significant optionality over the long term;
• Announced an oversubscribed private placement financing for total gross proceeds of $1.17-million. Proceeds from the offering were allocated toward the further exploration and development of Back Forty, and for general working capital purposes.

Outlook

Subject to market conditions and available capital, Aquila's focus throughout the remainder of 2014 and in 2015 is on:

• Evaluating a small exploration program on previously identified near-mine targets;
• Ramping up activities related to its permit application for Back Forty with the Michigan Department of Environmental Quality;
• Finalize development plan for Back Forty, which includes commencement of feasibility study;
• Secure strategic financial partners to support continued project development.

We seek Safe Harbor.