Apella Resources Inc.

Apella Resources Inc.

November 17, 2009 10:30 ET

Apella Forms Vanadium-Iron-Titanium Subsidiary-"Power Vanadium Corporation"

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2009) - Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) and its Board of Directors are pleased to announce that the Company has formed a wholly-owned subsidiary Power Vanadium Corporation (herein referred to as "Power"). At present Apella owns all of the share capital of Power which includes a combination of single voting and multiple voting common shares. The multi-voting shares will be placed in a trust and voted independently of Apella.

Power will be positioned as a highly visible and identifiable, pure Vanadium-Iron-Titanium entity. Power will provide Apella with a vehicle within which Apella can finance, operate, and develop its Iron-Vanadium-Titanium projects without significant affect on the other gold, copper and nickel assets within Apella. It will provide a structure within which it can more simply arrange transactions focused on the financing, acquisition, disposition, exploration and development of the pure Vanadium, Iron, and Titanium Projects.

It is anticipated that Apella's Iron-T, Lac Dore and Lac Dore North interests will all be owned and operated under Power.

All of these extensive Vanadium-Iron-Titanium projects are located in the Province of Quebec, Canada.

The Lac Dore North Iron-Vanadium-Titanium Project encompasses 18 claims covering an area of approximately 300 hectares (741 acres) over a strike length of approximately 3.0 kilometers, covering the northeast extension of the well known 5.5 billion pound Lac Dore Vanadium Deposit. Apella carried out an extensive channel sampling program on the Lac Dore North and followed this up with line cutting, geophysics and diamond drilling from which it is awaiting a report on some 250 drill core assays processed by ALS-Chemex laboratories in Canada and Perth, Australia.

Apella's interest in the 5.5 billion pound Lac Dore Deposit, the world's second largest Vanadium deposit will become part of the projects developed under Power.

The Iron-T Vanadium-Iron-Titanium Project has been the subject of channel sampling, mapping and diamond drilling by Apella. The Iron-T is located near the mining town Matagami, Quebec. The extensive Iron-T Project now totals 134 mineral claims (10,600 acres/4,289 ha) and a strike length of 10 miles (16 kms). Apella has carried out extensive trenching and targeted diamond drilling on the Iron-T. Work on the Iron-T has now confirmed the presence of significant Vanadium, Titanium, and Iron mineralization. The mineralization on Apella's Iron-T project bears striking similarities to such world class deposits as the Rhovan Deposit in South Africa. The nearby mining town of Matagami can provide housing, servicing, supplies, consumables and transport facilities including railway access as required for an efficient mining operation.

Currently, all mined vanadium utilized in North America is sourced internationally and imported. A number of these international source countries present a significant risk, politically, to present and future North American supply chains; as does the exposure to current sources relied upon within the international petroleum sector where Vanadium is produced as a by-product. Our more favourable Canadian based projects present an exceptional and rare opportunity to create a stable and reliable North American source and supply for vanadium, vanadium enriched magnetite iron ore, vanadium pentoxide, and titanium. This would be in addition to the obvious opportunities of providing the vast developing markets of China, India, the Far-East and Europe with ship-ready magnetite iron ore, already enriched with vanadium, at a significant price premium for their steel production. These type of Magnetite sourced Vanadium-Iron-Titanium deposits that we are identifying and developing are not very common. In fact, this is a rare and unique opportunity for Apella's and now Power's stakeholders.

There are multiple opportunities with these projects. First and foremost, is the opportunity to quickly establish a world-class, low cost, operation supplying Vanadium enriched Iron-Ore. This ore could simply be processed to meet the specifications of the world's steel mills eliminating much of their requirement for blending that's commonly utilized throughout the industry in the making of alloy steel. On the other hand, Apella could extend the possibilities significantly by entering into the Vanadium and Titanium sectors. Both of the key strategic metals present their own unique opportunities and unlimited markets to be addressed. The potential for very profitable production of both Ferrovanadium and Vanadium Pentoxide V2O5 exists on all of Apella's projects.

On another note, the Vanadium industry itself is relatively young and new uses for Vanadium are continually being identified. The primary use for Vanadium remains for production of steel alloys. Vanadium and Titanium are also extensively used for aerospace engines and airframe materials. Today, Asia has successfully implemented Vanadium in a number of battery technologies superior to previous standards. These next generation batteries represent a green technology that if fully commercialized, would have a significant global impact. The storage capacity for these batteries is suitable for wind, solar, nuclear, backup systems, electric automobiles and many other applications. With the constant depletion of the world's petroleum supplies, which is a key source of Vanadium for North America today, and with environmental and political issues shifting focus to more practical solutions, the outcome of all this is creating a new market for mined vanadium and possibly a competitive edge for the North American economies.

Apella invites the public to visit its website at http://www.apellaresources.com or e-mail us at apella@apellaresources.com to be added to the Company's e-mail list for press releases and updates.

"Patrick D. O'Brien"
Patrick D. O'Brien – Chairman

S.E.C. Exemption 12(g)3-2(b) File No. 82-3822, Standard & Poors Listed, Dun & Bradstreet Listed

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This news release contains Forward Looking Statements that are not historical facts and are subject to risks and uncertainties which could cause actual results to differ materially from those set forth in or implied herein.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information