Apella Resources Inc.

Apella Resources Inc.

April 08, 2010 17:26 ET

Apella Resources Inc.: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 8, 2010) - Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) and its Board of Directors are pleased to provide its shareholders with the following corporate update on activities of the company.

Power Vanadium Corporation - Management advises that its plans as announced in its November 17th, 2009 release for its wholly-owned subsidiary Power Vanadium Corporation have been set aside and all of its Quebec Vanadium-Iron-Titanium assets presently owned will remain, as they are, within the parent Apella. The Company has been very successful in its exploration and development of these projects to date and plans to continue with its plans to exploit their potential to derive the greatest shareholder value possible. The Company has been in preliminary discussions with a number of other entities that have shown an interest in participating in the development of the Iron-T. At this point these discussions are at an early stage but the company will continue to entertain such propositions. Otherwise, while the company awaits its 43-101 report on the Iron-T and its upcoming inferred resource calculation plans are being readied for a Phase 3 diamond drill program on the Iron-T.

Iron-T Drill Intersections - It has been noted that there were a couple of arithmetic errors in a chart in Apella's News Release of April 6th, 2010 so the chart has been amended and a revised version is included below for ease of reference.

Composite assay results with interval value greater than 0.20% V2O5
(Average true width can be determined by multiplying the core length below by 0.59)
As of April 6th, 2010
MA-10-20 19.81 47.22 27.41 64.99 154.92 89.93 35.81 6.46 0.50
Including 19.81 35.41 15.60 64.99 116.17 51.18 48.09 9.26 0.72
MA-10-20 102.45 114.00 11.55 336.12 374.01 37.89 17.31 2.25 0.18
MA-10-21 24.94 139.29 114.35 81.82 456.99 375.16 29.25 4.47 0.36
Including 27.44 55.69 28.25 90.03 182.71 92.68 35.36 4.37 0.37
MA-10-21 59.95 65.01 5.06 196.69 213.29 16.60 52.07 9.54 0.80
MA-10-21 65.01 97.01 32.00 213.29 318.27 104.99 18.38 2.53 0.19
MA-10-21 97.01 130.45 33.44 318.27 427.98 109.71 39.80 7.45 0.58
Including 97.01 104.25 7.24 318.27 342.03 23.75 52.14 10.62 0.82
MA-10-21 130.54 139.29 8.75 428.28 456.99 28.71 14.08 1.51 0.14
MA-10-22 30.46 36.98 6.52 99.93 121.33 21.39 16.55 2.33 0.15
MA-10-22 36.98 63.46 26.48 121.33 208.20 86.88 41.10 7.26 0.54
MA-10-23 26.46 40.21 13.75 86.81 131.92 45.11 18.85 2.65 0.16
MA-10-23 47.18 92.05 44.87 154.79 302.00 147.21 44.63 9.39 0.57
MA-10-23 105.50 114.50 9.00 346.13 375.66 29.53 24.02 3.67 0.31

Lac Dore Deposit – In Apella's News Release of July 28th, 2009 regarding the Lac Dore Vanadium-Iron-Titanium Deposit staking issue Apella advised that the Ministere des Resources et de la Faune du Quebec (herein referred to as the "Quebec Ministry") had issued a preliminary decision to award Apella Resources Inc. 9 of the 21 Lac Dore claims staked on August 21st, 2007. Under the same preliminary decision Apella's staking competitor, SOQUEM Inc. "SOQUEM"), which is a wholly owned subsidiary of la Societe generale de financement du Quebec ("SGF"), a Crown Corporation of the Province of Quebec, was to receive 2 of the 21 Lac Dore claims.

Apella filed its comments on the preliminary decision by the required date proposing that all of the 20 of the 21 claims, including the 2 SOQUEM claims be awarded to Apella. The Quebec Ministry delivered its final decision in early 2010, in which it stood by its earlier preliminary decision. Under the Quebec Mining Act Apella and SOQUEM each had 30 days within which to file an Appeal. Apella chose to appeal the decision and filed its Appeal on time. Apella has now been informed that SOQUEM did not file an Appeal of the decision within the required 30 days. Due to the fact that there were two competitors for the same claims the Ministry was required to apply a strict interpretation of the Mining Act. Now that SOQUEM has taken itself out of the competition for the remainder of the claims Apella has appealed under Section 17 of the Act which provides for claims to be staked to best of one's ability applying a much broader interpretation of the Act than the Ministry was forced to apply to the two competitors. Apella's first appearance before the honourable Justice Francois Goodbout to argue the merits of Apella's Appeal will take place Monday, April 19th, 2010. The procedure to date has taken approximately 2 ½ years and Apella has finally gotten to the point where SOQUEM is no longer contesting its own award of only 2 claims and leaving Apella with a good opportunity to argue its merits, uncontested by SOQUEM. The 9 claims that Apella is slated to receive under the Quebec Ministry's decision to date provide Apella with a majority interest in the key mineralization making up the original Lac Dore Deposit. Apella's management is well aware that the asset at stake in this matter is the world's second largest Vanadium deposit and feels that the reasons set forth in the decision denying the other 9 claims are not justified. Apella is confident in its position and with the full 18 claims Apella's interest would cover approximately 95-97% of the original Lac Dore Deposit.

The Company will continue to focus 100% of its Vanadium-Iron-Titanium exploration in pursuit of developing the Iron-T Project to the Bankable Feasibility stage.

New Website - The Company is about to launch a new website. The new site is designed to be very user friendly and full of useful information for existing and new investors. A further announcement will be made to advise once the site has gone live.


"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.

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.

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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