Mr. Patrick O'Brien reports

LATEST RESULTS CONFIRM THREE NEW DISCOVERY ZONES ENRICHED ASSAYS RETURN UP TO 1.12% V2O5Eq - 0.65% V2O5 - 53.51% Fe2O3 - 10.32% TiO2

Apella Resources Inc.'s positive assays from the recent channel sampling over the three new discovery zones at the Iron-T vanadium-iron-titanium project have returned very encouraging results. The assays have again confirmed Apella's continued ability to identify highly significant disseminated semi-massive and massive Vanadiferous mineralization extending across Apella's Iron-T V2O5-Fe2O3-TiO2 project near Matagami, Que. The results are outlined in the table.

In July, 2010, Apella stripped, washed, mapped and channel sampled three recently discovered V-Fe-Ti occurrences it identified at Iron-T. The three stripped areas are referred to as T-1, T-2 and T-3. They are reviewed here in reverse order. All of grades obtained as outlined in the table from the discovery zones T-1 and T-3 exceed the conservative breakeven criterion of 0.48 per cent V2O5Eq as outlined in the recent SGS-Geostat report. Samples reported from the T-3 discovery zone exceeded the breakeven of 0.48 per cent V2O5Eq by a considerable margin ranging from 62.5 per cent to 133 per cent.

T-3 corresponds to a mineralized outcrop discovered while carrying out the last drilling program. This highly mineralized outcrop is located 25 metres (82 feet) north of Apella's drill hole MA-10-15. The showing clearly displays numerous semi-massive to massive oxide layers (20 to 40 centimetres thick) and corresponds to a high magnetic anomaly Apella refers to as the II zone. The extensive T-3 stripping is 35 m (115 feet) long by 20 m (65.62 feet) wide. Semi-massive to massive oxide layers have been observed and sampled. Because of the rounded nature of the outcrops, with their steep slopes due to the presence of strong fractures, the channel sampling has been made on short lengths. A total of four channels were sawn covering a total length of 23.75 m (78 feet). At this location, channel samples are 1.50 m (five feet) long. Results obtained are shown in the table.

                          RESULTS

Sample   Length     Length       V2O5  V2O5   Fe2O3   TiO2
             (m)       (ft) equiv. (%)   (%)     (%)    (%)
Stripping
T-3A      11.75      38.55       0.78  0.42   41.64   7.73
T-3B       4.50      14.76       1.12  0.65   53.51   8.85 
T-3C       3.00       9.00       0.92  0.51   46.47   9.24  
T-3D       4.50      14.76       1.00  0.54   51.81   10.32 

Stripping channel
T-2A       3.75      12.30       0.43  0.20   27.07   3.80 
T-2B      36.55     120.0        0.41  0.20   25.22   3.66 
T-1A       5.00      16.40       0.59  0.30   32.48   5.43  
T-1B       2.50       8.20       0.49  0.24   28.21   4.53  
T-1C      11.50      37.73       0.63  0.34   33.36   5.08 
T-1D      20.00      65.52       0.53  0.26   31.73   5.28  
T-1E       7.50      24.61       0.50  0.24   29.85   4.67  
T-1F       3.75      12.30       0.52  0.26   30.70   5.07 

 

Apella will be able to reach this mineralization through a follow-up extension of its diamond drill hole MA-10-14, located 50 m northeast of T-3. A diamond drill hole ideally located on the same section as MA-10-15 and spotted 50 m north of its collar has been recommended. Upon positive results, an aggressive systematic drilling of the II zone magnetic axis will be undertaken.

Stripping at discovery zone T-2 corresponds to mineralization discovered by prospecting during the last drilling campaign. At the time, a grab sample was taken in a massive oxide layer and assayed (see Apella's Stockwatch press release of June 17, 2010). It returned 46.48 per cent Fe2O3, 8.14 per cent TiO2 and 0.64 per cent V2O5. The T2 stripping is 60 m (196.85 feet) long by 15 m (50 feet) wide. The company took a total of 32 channel samples, each 1.25 m (4.10 feet) long, covering a length of 40 m (131 feet). Results are as shown in the table.

Even though the initial channel sample results obtained show that the T-2 stripping crosses a low-grade zone with thin massive oxide layers, these results justify a verification of the grade at depth by one or two drill holes.

Discovery zone T-1 is the widest and most extensively stripped area of the three discovery zones. The stripping on T-1 identified outcropping over an area about 100 m (328 feet) long by 30 m (98.40 feet) wide. It crosses a strong magnetic anomaly. Observed mineralization corresponds to disseminated to narrow massive oxide layers. Six channels have been sawn and a total of 40 channel samples were taken for analysis. Each channel sample is 1.25 m (4.10 feet) long. Total sampled length is 60 m (197 feet). Results are as shown in the table.

Apella is now planning its next phase of diamond drilling for the Iron-T project.

The press release has been reviewed by Dr. Christian Derosier, PGeo, consulting geologist and qualified person for the Iron-T project under National Instrument 43-101.