Capella Resources Ltd.
TSX VENTURE : KPS
PINK SHEETS : CPSJF

Capella Resources Ltd.

March 16, 2010 09:00 ET

Capella Resources Updates Drill Results on Its Lajitas Project in Chile

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2010) - CAPELLA RESOURCES LTD. (TSX VENTURE:KPS)(PINK SHEETS:CPSJF) ("Capella" or the "Company") is pleased to announce that drilling on its 100% owned Lajitas Project in Chile has encountered continuous gold mineralization to the north, west and south of the Santa Fe gold zone.

Drill holes LJ10017r, LJ10020, and LJ10021 were drilled at 100 meter spacing along a northeast - southwest trending line approximately 200 meters west of LJ10015r (LJ10015r intersected 318m at 0.68 g/t gold which was in a News Release dated January 28, 2010). LJ10017r intersected 92m at 0.74 grams per metric ton ("g/t") gold, LJ100120r intersected 62m at 0.47 ("g/t") gold, and LJ10021r intersected 142m at 0.57 grams per metric ton ("g/t") gold including 48m at 1.07 g/t.

Detailed drilling results from this press release are summarized as follows:

Hole ID   From (m)   To (m)   Interval Length (m)   Gold (g/t)   Total Length (m) Status   Zone  
LJ10016r               nil   276 Final   Sulfide  
                             
LJ10017r   102   194   92   0.74   264 Final   Oxide  
                             
LJ10018r   140   296   156   0.55   342 Final   Oxide  
including   188   218   30   0.99            
                             
LJ10019r               nil   300 Final   Sulfide  
                             
LJ10020r   268   330   62   0.47   330 Final   Oxide  
                             
LJ10021r   66   208   142   0.57   306 Final   Oxide  
including   128   176   48   1.07            
                             
LJ10022r   76   272   196   0.28   296 Final   Oxide  

Intercepts not calculated using a gold cut-off.

LJ10018r was collared 100m northeast of LJ10015r (highlighted in a News Release dated January 28, 2010) north of the Santa Fe gold zone and drilled to the southeast at -75 degrees with the hole intersecting 156m of 0.55 g/t gold including 30m at 0.99 g/t gold.

LJ10022r was collared 200m southeast of LJ10015r (highlighted in a News Release dated January 28, 2010) southeast of the Santa Fe gold zone and drilled to the west at -60 degrees intersecting 196m of 0.28 g/t gold.

LJ10016r was collared 150m north of LJ10015r (highlighted in a News Release dated January 28, 2010) and drilled to the east at -60 degrees with the hole intersecting no significant gold mineralization.

LJ10019r was collared 900m south of LJ10015r (highlighted in a News Release dated January 28, 2010) and drilled to the east at -60 degrees with the hole intersecting no significant gold mineralization.

The Santa Fe gold zone has been extended by the current program to approximately 275 meters length from north to south and the mineralization remains open to the east, west, south, and at depth. Drilling based on road cut samples is expected to continue through the end of March to the south and to the east of the known gold zones. The Gold mineralization noted in this release is hosted in an altered diorite porphyry.

Brian Cole, P. Geo., has reviewed the technical disclosure contained in this news release and is a Qualified Person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The reader is directed to the Company's website at www.capellaresources.com where a presentation on the Lajitas gold project provides additional information regarding this release.

About Capella Resources Ltd.

Capella Resources Ltd. is a publicly traded, junior exploration and mineral development company with a strong portfolio of precious and base metal projects in Chile, USA and Atlantic Canada. The Company has a 100% interest in the Lajitas and Nevada gold-copper properties located in the Maricunga Gold and Copper District and approximately 700 kilometres northwest of Santiago, Chile. The properties comprise ten exploration claims and six exploitation claims totalling a cumulative 3,500 hectares in area. The Company holds a 100% interest in the Tinton Gold Project located 15 kilometres west-northwest of the famous and historic Homestake Mine in the Black Hills at Lead, South Dakota. The Tinton property consists of 1,270 hectares contained in 157 unpatented mining claims.

The Company also holds 3839 mineral exploration claims covering an aggregate land area of over 71,558 hectares in Atlantic Canada (Nova Scotia, New Brunswick and Newfoundland and Labrador).

CAPELLA RESOURCES LTD.

Richard Bachman, Chief Executive Officer, President & Chief Geological Officer

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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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