Mr. Barry Hildred reports

AQUILA RESOURCES PROVIDES PERMIT APPLICATION UPDATE

The Michigan Department of Environmental Quality has deemed Aquila Resources Inc.'s wetland/steam/floodplain permit application for the Back Forty project administratively complete and the regulatory technical review process can now move to the next stage. This is the fourth and final permit required to build and operate the Back Forty project, a planned open-pit, zinc-gold mine in Michigan's Upper Peninsula.

Today, the MDEQ issued its public notice, along with an announcement of a Jan. 23, 2018, public hearing as requested by Aquila. The MDEQ review process, along with the public hearing, provides the community with opportunities to comment on the permit application. In addition, the MDEQ will gather input from various regulatory agencies, including from the United States Environmental Protection Agency.

A final permit decision is expected from the MDEQ in the first half of 2018.

About Aquila Resources Inc.

Aquila Resources is a development-stage company with strategic assets in the Great Lakes region. The company is currently focused on advancing permitting activities for its 100-per-cent-owned high-grade polymetallic Back Forty project in Michigan.

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