An anonymous director reports

AQUILA RESOURCES PROVIDES PERMITTING UPDATE

The United States Environmental Protection Agency has provided supplementary comments to the Michigan Department of Environmental Quality regarding Aquila Resources Inc.'s wetland/stream/floodplain permit application for its Back Forty project in Michigan.

Previously on March 8, 2018, the EPA provided comments to the MDEQ requesting additional information and clarification concerning certain issues related to the company's wetlands permit application (see Aquila news release dated March 9, 2018). Aquila has been working with the EPA to resolve its comments and to provide the requested information. The company is pleased to report that, in a letter addressed to the MDEQ dated May 3, 2018, the EPA has confirmed that a number of objections identified in the March 8, 2018, letter have been resolved. Further, the EPA believes there is a ready pathway for the resolution of the EPA's remaining objections through MDEQ's inclusion of specific conditions in a final wetlands permit. Aquila has reviewed the proposed permit conditions and is confident that the conditions can be readily met.

The MDEQ and Aquila have until June 6, 2018, to ensure that the proposed permit conditions fully address the EPA's objections. The company will continue to work with the MDEQ in order to completely satisfy all requirements of both the state and federal wetland and stream protection statutes and believes all other related issues have largely been reviewed. The company is confident that it can work with the MDEQ within the prescribed time frame.

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.

Aquila's flagship Back Forty project is an open-pit volcanogenic massive sulphide deposit with underground potential, located along the mineral-rich Penokean volcanic belt in Michigan's Upper Peninsula.

The company has three other exploration projects: Reef gold project, located in Marathon county, Wisconsin, the Bend project, located in Taylor county, Wisconsin, and the Aquila nickel project, located in the Upper Peninsula, Michigan.

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