Apella Resources Inc.

Apella Resources Inc.

August 07, 2009 15:54 ET

Goldbrook-Jilin Jien Nickel Cash Offer For Canadian Royalties Bodes Well For Apella's Goldbrook Holdings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 7, 2009) - Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) and its Board of Directors are pleased to announce that it appears today's $148.5 million all cash offer by China nickel giant Jilin Jien Nickel Industry Co. Ltd. and partner Goldbrook Ventures Inc. ("GBK") to acquire all of the outstanding common shares and debentures of Canadian Royalties Inc. could bode very well for Apella shareholders. The offer would provide Jilin Jien and Goldbrook with effective control of all minable assets at Raglan in northern Quebec, with the exception of the ongoing Raglan operations of Xstrata.

Apella has a multi-million common share position in Goldbrook as a result of Apella selling Goldbrook its sizeable Raglan assets in 1997; and has seen the value of its Goldbrook common share holdings increase by over 100% over the past seven days. Apella also holds 2,000,000 Goldbrook warrants exercisable on or before June 2012 at $0.35 per share. In addition, Apella holds a 1% Net Smelter Royalty ("NSR") on a considerable portion of the mineral claims it sold to Goldbrook in 1997, which now form a key part of the recent exploration activities that have and are being carried out by Jilin Jien and Goldbrook under their multi-year $45 million option-joint venture. Apella notes some of the more significant drill results released by Goldbrook/Jilin Jien over the last couple of Raglan exploration seasons have come from these particular mineral claims. These claims vended into Goldbrook by Apella form an important piece of the present Goldbrook/Jilin Jien Raglan land package.

Apella's management will be carefully monitoring the outcome of this strategic move by Goldbrook and Jilin Jien to take over Canadian Royalties in anticipation of further improvement in the value of Apella's current Goldbrook share holdings as well as its long term potential from the Goldbrook warrants and the Net Smelter Return of the mineral claims Apella vended to Goldbrook.

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 - 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