Mr. Barry Hildred reports

AQUILA RESOURCES FILES 2014 YEAR-END FINANCIAL RESULTS AND PROVIDES CORPORATE UPDATE

Aquila Resources Inc. has released its fourth-quarter and year-end corporate and financial results for the periods ended Dec. 31, 2014. A full copy of Aquila's management discussion and analysis, and financial statements for the year ended Dec. 31, 2014, are available on the company's website and on SEDAR. Unless otherwise noted, all figures in this news release are reported in U.S. dollars.

2014 corporate highlights:

• The company completed its transactions with REBgold Corp. and HudBay Minerals Inc. on Jan. 16, 2014. The transactions have been reflected as of Dec. 30, 2013, the date on which the shareholders of Aquila and REBgold approved the transactions;
• On Sept. 8, 2014, the company filed a new positive preliminary economic assessment (PEA) on the Back Forty project:
  • The PEA project economics include a posttax net present value of $210.8-million and internal rate of return of 32 per cent, and a 1.8-year payback. It also contemplates mining 16.1 million tonnes of mineralized material over the 16-year life of mine, of which 12.5 million tonnes is open pit and 3.6 million tonnes is underground. The PEA demonstrates the potential for a diverse earnings stream with a payable metal value mix of 41.2 per cent gold, 40.5 per cent zinc, 12.0 per cent copper, 5.7 per cent silver and 0.6 per cent lead;
• Completion of equity raises for total gross proceeds to the company of $1.17-million;
• Through the acquisition of REBgold, the company has a 19.5-per-cent interest in a joint venture arrangement with Belvedere Resources in the Kiimala and Rantasalmi projects located in Finland. As of July, 2014, the company suspended financing of this project and is considering its strategic alternatives of this non-core asset. As a result, the company has written the value of this asset ($5,540,049) down to nil for the year ended Dec. 31, 2014.

Outlook

Aquila's focus in 2015 will be on the next phase of development at the Back Forty project. Key milestones for 2015 include:

• Closing its previously announced financing transaction for $20.75-million with Orion Mine Finance;
• Ramping up activities related to its permit application for Back Forty with the Michigan Department of Environmental Quality. To date, the company has completed a number of the required test programs and baseline studies necessary to support its permit submission;
• Commencement of a feasibility study on the Back Forty project;
• Commencement of a small exploration program on previously identified near-mine targets. A number of geophysical anomalies have been identified peripheral to the known mineralization at Back Forty, and detailed ground geophysics and diamond drilling are planned to test these high-priority targets.

Qualified persons

The scientific and technical information in this news release was reviewed and approved by Thomas O. Quigley, vice-president of exploration and senior technical adviser for the Back Forty project. By virtue of his education, experience and professional association, Mr. Quigley is considered a qualified person as defined under National Instrument 43-101. Information regarding data verification is provided in Aquila's annual information form dated March 31, 2014.

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