Mr. Patrick O'Brien reports

APELLA RECEIVES NI 43-101 COMPLIANT TECHNICAL REPORT FOR THE IRON-T VANADIUM-IRON-TITANIUM PROJECT

Apella Resources Inc. has received and filed on SEDAR an NI 43-101-compliant technical report titled "Technical report vanadium-titanium-iron resource estimation of the Iron-T property, Matagami area, Quebec, Canada," dated Aug. 27, 2010.

SGS-Geostat calculated in its technical report that the Iron-T hosts an inferred resource of 11.63 million tonnes at 0.73 per cent V2O5Eq at the time of its study. It is noted that this initial SGS-Geostat resource calculation does not include any assay results from the 15 drill holes recently drilled since May 1, 2010, or the two 2009/2010 extended drill holes, for a total length of 2,222 metres (7,290 feet). It also does not include any assay results obtained from recent channel sampling and the 85 samples reported on in Apella's Aug. 26, 2010, news release in Stockwatch. All of these results will need to be calculated into future technical reports.

Apella's chairman, Patrick D. O'Brien, ICD.D, comments: "This is an important milestone in the exploration and development of the Iron-T project. We look forward to beginning the proposed definition drilling and the excellent potential to increase and upgrade the resource calculations for the Iron-T."

The SGS-Geostat technical report was summarized in Apella's news release in Stockwatch dated July 12, 2010. The SGS-Geostat 43-101 report as filed on SEDAR recommends:

• Continuing drilling and provides a purely conceptual budget of $2,623,500; the SGS budget includes 11,000 metres of diamond drilling excluding numerous program support costs which would be additional;
• Continuation of detailed cartography and exploration work;
• Implantation of orientation surveys on the relevant 2009-2010 drill holes and all future drill targets;
• Additional metallurgical testing;
• Sending duplicate samples to an additional lab for testing of correction factors.

Dr. Christian Derosier, PGeo, consulting geologist and qualified person for the Iron-T project, has now proposed to management for consideration an extensive four-phase $5,756,625 budget (including taxes) for additional exploration and development of the Iron-T project. The budget includes approximately 120 drill holes totalling approximately 20,000 metres of definition diamond drilling and all other aspects of assaying, metallurgical testing and other matters.

The Iron-T mineral deposit, as it is today, contains enough resources to justify additional work on the property that could lead to a preliminary economic assessment study. The $5,775,000 budget proposed by Dr. Derosier is designed to increase significantly the quality of the geological information and update the overall resources and the geological model for the Iron-T. With the addition of the drilling data that would be derived from the four-phase program the update of the resources could include the measured and indicated categories. This would then place the Iron-T project in a prefeasibility position.

The budget proposed by Dr. Derosier is shown in an attached table.

                     PROPOSED BUDGET

           Total drilling   Total drilling   Total budget
Phase      meterage         footage          amount

Phase A    2,700             8,859           $ 874,026
Phase B    3,450            11,319           $ 974,760
Phase C    5,550            18,209           $ 1,565,725
Phase D    8,300            27,231           $ 2,342,114
          ------            ------
Total     20,000            65,617           $ 5,756,625

The Iron-T vanadium-iron-titanium project currently consists of 146 claims totalling 3,995.57 hectares covering one continuous block of claims straddling Lozeau, Comporte and Isle Dieu townships, Quebec. The central part of the claims is located 10 kilometres east-southeast of the town of Matagami. The property is accessible by an all-weather gravel road N805. The Iron-T vanadium-iron-titanium project is not subject to any environmental liabilities. Apella has a 100-per-cent interest in all of the Iron-T mineral claims.

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