Mr. Barry Hildred reports

AQUILA RESOURCES SUBMITS MINE PERMIT APPLICATION FOR ITS BACK FORTY PROJECT WITH MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

Aquila Resources Inc. has submitted a formal application with the Michigan Department of Environmental Quality (MDEQ) to secure the necessary permits and approvals to build and operate the company's gold- and zinc-rich Back Forty project.

"This is a major step forward for Aquila, and represents the beginning of a transparent process that we expect will culminate with the building of an important economic development project that will grow the local economy, create good jobs, and generate new tax revenue for local and state governments," said Barry Hildred, chief executive officer of Aquila Resources. "I would like to congratulate our expanded team, including our consultants, on delivering a comprehensive and quality application to the state within the timeline we established earlier this year."

Aquila's mine permit application was completed with the assistance of Foth Infrastructure & Environment LLC, an engineering firm based in Green Bay, Wis. Foth has worked on the Back Forty project since 2006, conducting a series of technical studies, including geochemistry of waste rock and tailings, bedrock hydrogeology, water treatment, groundwater modelling, air quality and deposition modelling, reclamation planning, and tailings and waste rock storage facility design. Foth also managed a consulting team that conducted baseline environmental studies at Back Forty.

"We have prepared a comprehensive mine permit application that underscores our commitment to mining in an environmentally responsible manner and to meeting or exceeding all of Michigan's regulations," said Andrew Boushy, vice-president of project development of Aquila Resources. "Aquila is firmly committed to move this project to commercial production, and we look forward to working with local and state governments, area businesses, and other stakeholders to develop a positive working relationship while building a reputation as a solid corporate citizen in Lake township and Menominee county."

Consistent with Michigan's permitting process, Aquila's application requests specific permits for non-ferrous metallic minerals mining, national pollutant discharge elimination system, wetlands protection and air. Aquila's application is based on the company's updated preliminary economic assessment (PEA) filed in September, 2014. The PEA, which included an optimized mine plan and updated resource estimates, indicated that Back Forty has a pretax net present value of $282.2-million and a pretax investment rate of return of 38.8 per cent.

In addition to investment benefits, Aquila anticipates that the development, construction and operation of Back Forty will result in the creation of temporary and permanent jobs as well as economic spinoffs for Michigan's upper peninsula and Menominee county.

We seek Safe Harbor.