Mr. Barry Hildred reports

AQUILA RESOURCES RECEIVES WETLANDS PERMIT FOR ITS BACK FORTY PROJECT

Aquila Resources Inc. has received its wetlands, lakes and streams permit from the Michigan Department of Environmental Quality (MDEQ) for its zinc- and gold-rich Back Forty project in Michigan. The wetlands permit was issued inclusive of specific conditions, including those requested by the United States Environmental Protection Agency (EPA). With the issuance by the MDEQ of the wetlands permit and the objections of the EPA resolved, Aquila has now received all state and federal permissions required for the construction and commencement of operations at the Back Forty project. The company has already received the three other required state permits, which include the non-ferrous metallic mineral mining, the National Pollutant Discharge Elimination System permit and the air use permit to install.

"This is a very significant milestone for Aquila and substantially completes a robust environmental permitting process in Michigan," said Barry Hildred, president and chief executive officer of Aquila. "We can now focus the company's resources on the preconstruction phase at Back Forty while considering funding alternatives to complete the development of the mine. I want to thank our entire expanded team for all of their efforts in helping us achieve this significant milestone, and we look forward to building a world-class project in Michigan."

Aquila will continue its efforts with the State of Michigan and local communities to demonstrate its commitment to environmental responsibility and sustainable resource development that benefits all stakeholders. The Back Forty mine will be a safe, disciplined operation that promotes and supports local community socio-economic development and is protective of the environment.

Preconstruction phase activities

With the receipt of the wetlands permit, Aquila will commence certain preconstruction activities immediately. The Back Forty open-pit feasibility study is nearing completion, and the company anticipates publishing the study in the coming months. Aquila is also working to finalize its project execution plan which will further define the project development strategy, including contracting philosophy, plans for basic and detailed engineering, and any required permit amendments, as well as plans for building the owner's team in preparation for the construction and operational readiness phases of the Back Forty project.

The company will continue discussions with prospective financial partners to secure required project capital to build the Back Forty project. Aquila, with the assistance from its advisers, will consider all available strategic and financial options to the company and the project.

Exploration activities

In parallel with pursuing preconstruction activities, the company is currently finalizing plans for an exploration program at Back Forty that will seek to test additional targets and further define the underground potential of the deposit, where mineralization remains open at depth.

Aquila is also evaluating its strategy concerning its exploration-stage Bend and Reef projects in Wisconsin in light of the recent repeal of the decades-old moratorium on non-ferrous mining in the state.

With its current cash resources and an additional $47.5-million in staged payments available to the company under its gold stream purchase agreement with Osisko Gold Royalties Ltd., Aquila is well financed to complete its planned preconstruction and exploration activities.

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 focused on advancing preconstruction and exploration activities for its 100-per-cent-owned zinc- and gold-rich Back Forty project in Michigan.

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