Mr. Barry Hildred reports

AQUILA RESOURCES PROVIDES PERMITTING UPDATE

The U.S. Environmental Protection Agency (EPA) has provided comments to the Michigan Department of Environmental Quality (MDEQ) regarding Aquila Resources Inc.'s wetland/stream/floodplain permit application for its Back Forty project in Michigan. The EPA has had 90 days since Dec. 8, 2017, when the MDEQ deemed the company's Wetlands permit application administratively complete, to provide comments.

The EPA's opportunity to comment on the application is subject to strict statutory processes, regardless of the significance of the comments. The MDEQ now has 90 days from March 8, 2018, to work with Aquila to resolve the comments made by the EPA and to provide the requested information. This information request, which is required to be framed as an objection to the issuance of the Wetlands permit by the MDEQ, raises issues that the company believes have already been reviewed through other state-issued permits that have been granted for the Back Forty project. Aquila believes the issues are readily addressable. The company is confident that it can work with the MDEQ within the prescribed time frame to provide the additional information requested by the EPA.

Aquila has taken great care to design a project that meets and exceeds applicable environmental standards and is committed to ensuring that the Back Forty project is a safe, disciplined operation that promotes and supports local community socio-economic development and is protective of the environment.

About Aquila Resources Inc.

Aquila Resources is a development-stage company with strategic assets in the Great Lakes region. The company's experienced management team is currently focused on advancing permitting and engineering activities for its 100-per-cent-owned zinc- and gold-rich Back Forty project in Michigan.

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