Apella Resources Inc.
TSX VENTURE : APA
FRANKFURT : NWN

Apella Resources Inc.

February 03, 2010 16:06 ET

Apella Resources Inc.: Drilling Has Commenced; Iron-T Vanadium-Iron-Titanium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 3, 2010) - Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) and its Board of Directors are pleased to report that a further 1000 metres of diamond drilling on the Iron-t project has now commenced. This program is a follow-up due to the positive findings from the previous round of drilling, results of which were released December 15th, 2009. As in Phase 1, Apella is prepared to increase the meterage of drilling significantly in Phase 2 should the results in this second phase reflect the positive results of Phase 1.

Patrick D. O'Brien, ICD.D, Chairman states that; "We look forward to continued success on the Iron-T. Due to the extensive strike of the anomalous signature outlined from geophysical surveys the Iron-T's potential to host a very extensive mineralized horizon is present. Apella's recent mineralized drill intersects at Iron-T were suggestive of a significantly enriched Vanadium-Iron-Titanium system. We look forward to this next set of results from the Iron-T with great anticipation."

In addition to the diamond drilling, further line cutting and ground geophysics are being carried out to open up areas for additional drilling along the 10.2 km strike of the Iron-T project.

The Bell River Complex which hosts the Iron-t may be compared to the Lac Dore layered igneous complex (in part owned by Apella) in the Chibougamau district of Quebec, some 250 kms east, and to the Bushveld layered complex of South Africa, the world's most significant source of Vanadium. At the Iron-T the Vanadium rich horizons are well defined on the ground and aeromagnetic surveys by their highly magnetic susceptibilities. Apella anticipates that at the Iron-T near Matagami the potential is excellent to substantially exceed the known mineralization of the Lac Dore deposit at Chibougamau of which Apella also controls a considerable interest.

In other news, Apella has applied for and been accepted as an associate member of the vanadium specific organization - The Vanadium International Technical Committee (VANITECH), headquartered in Kent, UK. As outlined on its website "VANITEC is a technical and scientific committee which brings together representatives of companies involved in the mining, processing and manufacture of vanadium-containing products for use mainly in the metals and materials manufacturing and chemical industries, world-wide. The object of VANITEC is to promote the use of vanadium bearing materials and thereby to increase the consumption of vanadium. To this end it organizes research on the properties of vanadium bearing materials and issues publications (both original publications, specifically prepared by its members or other organizations and reprints of papers from the technical press). In addition, from time to time it organizes seminars and conferences in various parts of the world." The 16 current members of VANITEC are listed on VANITEC's website (www.vanitec.org) and include Highveld Steel and Vanadium Corporation Limited, South Africa; Xstrata, South Africa; Stratcor, USA; Panzhihua Iron & Steel Group, China; Vanchem Vanadium Products (Pty) Ltd., South Africa; Chengde Iron & Steel Group Co Ltd, China; Metallurg Vanadium, USA; OAO Vandy-Tula, Russia; Nizhny-Tagil Iron & Steel Company, Russia; Scandinavian Steel AB, Sweden; Core Metals Group, USA; Gulf Chemical & Metallurgical Corporation, USA; Treibacher Industrie AG, Austria; New Zealand Steel Ltd, New Zealand; Bear Metallurgical Company, USA; The Ural Institute of Metals, Russia.

For ease of reference, the highlights of the semi-massive to massive drill intersections from Apella's first phase of drilling on the Iron-T as released by Apella on December 15th, 2009 in its news release are outlined below for ease of reference:

  • MA-09-13 – 49.39 metres (162.04 feet) 42.93% Fe2O3, 7.54% TiO2, and 0.39% V2O5; including 5.00 metres (16.40 feet) 62.74% Fe2O3, 12.85% TiO2, and 0.52% V2O5, and 6.19 metres (20.31 feet) 54.81% Fe2O3, 10.69% TiO2, and 0.51% V2O5
  • MA-09-12 – 46.00 metres (150.92 feet) 34.35% Fe2O3, 4.31% TiO2, and 0.25% V2O5; including 30.75 metres (100.89 feet) 39.13% Fe2O3, 4.86% TiO2, and 0.26% V2O5, which includes 6.50 metres (21.33 feet) 49.16% Fe2O3, 6.63% TiO2, and 0.40% V2O5
  • MA-09-11 – 34.08 metres (111.81 feet) 35.33% Fe2O3, 5.69% TiO2, and 0.38% V2O5; including 28.10 metres (92.19 feet) 36.81% Fe2O3, 6.13% TiO2, and 0.41% V2O5
  • MA-09-11 – 36.48 metres (119.69 feet) 32.99% Fe2O3, 4.96% TiO2, and 0.33% V2O5; including 14.82 metres (48.62 feet) 39.94% Fe2O3, 6.15% TiO2, and 0.41% V2O5, and 7.6 metres (24.93 feet) 41.52% Fe2O3, 6.61% TiO2, and 0.41% V2O5
  • MA-09-10 – 59.74 metres (196.00 feet) 40.41% Fe2O3, 6.51% TiO2, and 0.41% V2O5; including 15.89 metres (52.13 feet) 59.33% Fe2O3, 10.68% TiO2, and 0.66% V2O5
  • MA-09-10 – 41.00 metres (134.51 feet) 27.67% Fe2O3, 4.13% TiO2, and 0.29% V2O5; including 9.50 metres (31.17 feet) 36.45% Fe2O3, 5.61% TiO2, and 0.40% V2O5
  • MA-09-09 – 33.67 metres (110.47 feet) 35.55% Fe2O3, 5.48% TiO2, and 0.31% V2O5; including 9.13 metres (29.95 feet) 39.32% Fe2O3, 6.91% TiO2, and 0.41% V2O5, and 20.12 metres (66.01 feet) 39.18% Fe2O3, 5.82% TiO2, and 0.31% V2O5
  • MA-09-08 – 90.93 metres (298.33 feet) 42.70% Fe2O3, 7.24% TiO2, and 0.38% V2O5; including 32.03 metres (105.09 feet) 40.28% Fe2O3, 6.96% TiO2, and 0.40% V2O5; and 52.53 metres (172.34 feet) 47.70% Fe2O3, 8.10% TiO2, and 0.40% V2O5
  • MA-09-07 – 93.66 metres (307.28 feet) 43.87% Fe2O3, 7.90% TiO2, and 0.41% V2O5; including 76.61 metres (251.35 feet) 49.72% Fe2O3, 9.13% TiO2, and 0.44% V2O5, which includes 51.66 metres (169.49 feet) 53.25% Fe2O3, 10.26% TiO2, and 0.51% V2O5 and which includes 38.66 metres (126.84 feet) 58.59% Fe2O3, 11.74% TiO2, and 0.56% V2O5
  • MA-09-07 – 32.47 metres (106.53 feet) 24.50% Fe2O3, 3.74% TiO2, and 0.25% V2O5; including 14.82 metres (48.62 feet) 37.68% Fe2O3, 6.31% TiO2, and 0.41% V2O5
  • MA-09-06 – 13.00 metres (42.65 feet) 24.05% Fe2O3, 3.66% TiO2, and 0.24% V2O5
  • MA-09-06 – 25.35 metres (83.17 feet) 22.07% Fe2O3, 3.02% TiO2, and 0.21% V2O5
  • MA-09-05 – 12.15 metres (39.86 feet) 26.35% Fe2O3, 3.67% TiO2, and 0.25% V2O5; including 3.60 metres (11.81 feet) 41.34% Fe2O3, 6.24% TiO2, and 0.45% V2O5
  • MA-09-05 – 20.92 metres (68.64 feet) 42.48% Fe2O3, 7.70% TiO2, and 0.44% V2O5; including 5.09 metres (16.70 feet) 57.80% Fe2O3, 11.19% TiO2, and 0.63% V2O5, and 8.28 metres (27.17 feet) 52.26% Fe2O3, 9.83% TiO2, and 0.54% V2O5
  • MA-09-05 – 20.10 metres (65.94 feet) 29.13% Fe2O3, 4.38% TiO2, and 0.33% V2O5; including 6.30 metres (20.67 feet) 35.83% Fe2O3, 5.82% TiO2, and 0.43% V2O5
  • MA-09-04 – 32.84 metres (107.74 feet) 32.53% Fe2O3, 5.01% TiO2, and 0.31% V2O5; including 10.5 metres (34.45 feet) 47.75% Fe2O3, 6.76% TiO2, and 0.44% V2O5; and 4.69 metres (15.39 feet) 62.21% Fe2O3, 12.60% TiO2, and 0.74% V2O5
  • MA-09-04 – 30.0 metres (98.43 feet) 54.46% Fe2O3, 11.04% TiO2, and 0.59% V2O5; including 26.0 metres (85.30 feet) 59.68% Fe2O3, 12.33% TiO2, and 0.65% V2O5
  • MA-09-01 – 35.70 metres (117.3 feet) 26.29% Fe2O3, 3.33% TiO2, and 0.32% V2O5; including 8.07 metres (26.48 feet) 42.87% Fe2O3, 5.57% TiO2, and 0.54% V2O5, and also including 3.28 metres (10.76 feet) 45.50% Fe2O3, 7.58% TiO2, and 0.73% V2O5

Please refer to Apella's website at www.apellaresources.com to see the more detailed chart outlining all significant intersects and grades for the previous 13 holes of drilling from Phase 1, as prepared by Mr. Roger Moar, P.Geo, Consulting Geologist. The data is detailed for reference purposes and includes some 418 of the individual assays and a full chart of the true width drill intersects, hole by hole. Of the 418 individual assays selected to be displayed on the website there are Fe2O3 assays ranging up to 75.95% Fe2O3, 37% of which grade higher than 50% Fe2O3 and 67% grade above 40% Fe2O3. The TiO2 assays to be included ranged as high as 16.80% TiO2 with 22% of the assays above 10% TiO2 and 85% of the samples grading in excess of 5% TiO2. The V2O5 assays to be displayed range up to 1.34% V2O5, of which 35% assayed 0.50% V2O5 or higher and 87% of these samples assayed at 0.30% V2O5 or above. There will also be a series of photos of the core and the site for viewing.

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.

ON BEHALF OF THE BOARD OF DIRECTORS OF APELLA RESOURCES INC.

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.

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