Apella Resources Inc.

Apella Resources Inc.

May 22, 2009 17:09 ET

Ungava Abandons $50.5 Million Lawsuit at Apella's Request

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 22, 2009) - Apella Resources Inc.(TSX VENTURE:APA)(FRANKFURT:NWN) and its Board of Directors are pleased to announce that at the request of Apella Resources Inc. and its President Patrick O'Brien, Ungava Mineral Exploration Inc. has agreed to abandon its $50.5 million legal action against Apella Resources Inc. (previously Novawest Resources Inc.) and Mr. O'Brien. The action was initiated in August 2006 and at that time listed 6 defendants. Action against two of the six defendants went to trial and the courts ruled against Ungava Minerals Inc. These same two defendants were successful in having the courts award significant costs of approximately $1,000,000 in their favour. Based on this court decision, the significant costs award in favour of the two defendants and other pertinent details, Apella Resources Inc. suggested to Ungava Mineral Exploration Inc. that it may wish to drop its action against Apella Resources Inc. and Patrick O'Brien, thus avoiding the risk of further significant cost awards against Ungava. Ungava has abandoned its action without costs to either party.

In another issue, to avoid confusion, Apella would like to reconfirm to its stakeholders and investors that the near identical $50.5 million legal action launched by Gogama Gold Inc. in Ontario in August 2007 on similar grounds has already been dismissed. The Gogama action was launched against 8 individuals and corporate entities; a number of which are the same individuals named in Ungava's Quebec action now abandoned by Ungava. The defendants included Apella Resources Inc. and Patrick O'Brien. At the request of the defendants the Gogama action was dismissed by the Ontario Court of Justice effective November 27th, 2008. This matter was dismissed without costs.

Apella Resources Inc. and Mr. O'Brien remain of the opinion that both of these actions were without merit and that Apella and Mr. O'Brien were simply named in the actions by Ungava and Gogama in order to justify before the courts of Quebec and Ontario re-initiation of legal actions against some of the parties that had been ongoing for many, many years.

Apella Resources Inc. and its President Patrick O'Brien are pleased that this matter is now behind them and they can get on with the primary business of developing Apella's significant interests in Quebec and Ontario.

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.

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