Apella Resources Inc.
TSX VENTURE : APA
OTCQX : APAFF
FRANKFURT : NWN

Apella Resources Inc.

December 06, 2011 12:00 ET

Apella Resources Inc.: Final Assay Results Provide Economic V2O5Eq Data Game-Changer Vanadium-Iron-Titanium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2011) - Apella Resources Inc. (TSX VENTURE:APA)(OTCQX:APAFF)(FRANKFURT:NWN) is pleased to report the complete assay results obtained after the due diligence made on its new Game-Changer Vanadium-Iron-Titanium Project (see News Release of October 24, 2011). In the previous release the Fe2O3 and TiO2 data was not included for the due diligence samples taken by Apella's Qualified Person Dr. C. Derosier, P.Geo. This new data is now included in the table herein entitled "Dr. C. Derosier, P.Geo, QP Due Diligence Samples" and the specific Fe2O3 and TiO2 numbers are highlighted solely for ease of reference.

Patrick D. O'Brien, ICD.D, Chairman, states, "These added results meet Apella's expectations for the preliminary stages of this new project and have had a significant upward impact on the relevant V2O5Eq numbers outlined in the same chart herein placing 80% of Dr. C. Derosier's due diligence samples above Apella's breakeven target values."

The extensive enriched mineralization was discovered by the prospecting team of R. Laviolette and G. Dumoulin while prospecting the Timmins region in May of 2011. The Game Changer Project is an assemblage of mineral claims which provide two distinct mineralized zones, each presenting excellent potential to host economic Vanadium-Iron-Titanium deposits. The two zones identified to date have been designated as the West Structure and East Structure for future reference.

Vanadium mineralization of the Egan Complex occurs within the Fe-Ti oxide rich horizons, in the layered ferrogabbro zone of the upper part of the Complex. This horizon is well defined in the aeromagnetic survey maps by its high magnetic susceptibility.

Twelve grab samples were taken at different locations along the gabbro sill, by the prospectors. Dr. C. Derosier, P.Geo and Apella's project Qualified Person for the project took a further five grab samples. Two of Dr. Derosier's samples were taken on the same occurrences as the prospector's first samples, and three were taken at different locations. Results of the grab samples are listed as follows:

Prospector Grab Samples

Sample Number Fe2O3 % TiO2 V2O5 V2O5Eq
RL-01 28.22 % 3.91 % 0.34 % 0.56 %
RL-02 38.11 % 6.45 % 0.51 % 0.81 %
RL-03 20.09 % 2.26 % 0.18 % 0.33 %
RL-06 21.74 % 2.53 % 0.29 % 0.46 %
RL-07 30.93 % 4.73 % 0.49 % 0.51 %
RL-09 23.69 % 2.96 % 0.25 % 0.44 %
RL-10 49.79 % 8.68 % 0.76 % 1.15 %
RL-11 41.02 % 6.33 % 0.05 % 0.37 %
RL-12 22.74 % 2.80 % 0.03 % 0.21 %
RL-13 38.86 % 6.17 % 0.02 % 0.32 %
RL-14 21.55 % 2.38 % 0.02 % 0.19 %
RL-15 22.79 % 2.45 % 0.02 % 0.20 %

Samples above, taken from Apella's new Game Changer Project were assayed by the XRF method at Activation Laboratories Ltd., located in Timmins, Ontario.

Dr. C. Derosier, P.Geo, QP Due Diligence Samples

Sample Number Fe2O3% TiO2% V2O5% V2O5Eq %
171290 36.63 % 6.51 % 0.27 % 0.77 %
171291 45.67 % 7.77 % 0.39 % 1.05 %
171292 24.77 % 3.29 % 0.20 % 0.55 %
171293 30.89 % 4.70 % 0.30 % 0.78 %
171294 20.06 % 2.55 % 0.15 % 0.42 %

Apella's samples were assayed by ALS-Chemex Ltd. in North Vancouver using the XRF method and ICP method for the other elements.

Apella's Iron-T Deposit at Matagami, Quebec and this new Egan Complex, the Game-Changer discovery similarly hold a non-negligible portion of Magnetite and Titanium di-oxides. It is consequently important to determine the dollar value per tonne of the oxide contained in the mineralized zones as well as the cut-off grade. This cut-off grade is expressed as a percentage.

Note: In order to be consistent with the previous results released since 2010 for its Iron-T Project, Apella used the same metal prices herein for the Vanadium, Titanium and Iron as of June 14, 2010. Those prices are as follows:

  • Fe = 182 US$ per metric tonne (0.182 US$/kg);
  • TiO2 = 90 US$ per metric tonne (0.09 US$/kg);
  • V2O5 = 14,000 US$ per metric tonne (14 US$/kg).

The recovery of the oxides is also taken in account: Fe= 65%, TiO2= 65% and V2O5 = 75%, which give the following unitary prices: Fe= 118 US$/tonne, TiO2 = 59 US$/tonne and V2O5 = 105 US$/tonne.

Applying a factor equal to 1 to V2O5, factors of Fe and TiO2 are respectively 0.011 and 0.006.

The V2O5Eq is calculated using the following formula:

V2O5Eq = V2O5 + 0.011*Fe+0.006*TiO2 = %

The Iron-T cut-off grade was estimated by SGS Geostat at 0.48% V2O5Eq which corresponds to a mining and milling cost totaling US$ 50.00. Consequently, all values above 0.48% V2O5Eq are considered as economic intersections or values.

Two grab samplings returned almost the same V2O5 and the V2O5Eq values, especially where twin samples were taken. Four of the five (80%) of the samples taken during the due diligence by Dr. C. Derosier, P.Geo. returned economic values. Assays from Apella's new 100% owned Game-Changer Project look very similar to those obtained by Apella on its 100% owned Iron-T Project during the last drilling program and more particularly on its newly discovered NW-SE Zone on the Iron-T Project.

The planning for the next phase of exploration and drilling on the Game-Changer Project are in progress, as with the Iron-T.

This press release has been reviewed by Dr. Christian Derosier, P. Geo., Consulting Geologist and Qualified Person for the Iron-T and Game-Changer Projects under National Instrument NI 43-101.

In other business, the Company has determined that a return trip to China was not necessary at this time as it has now received representations of interest in its Canadian Vanadium-Iron-Titanium projects from entities situated in locales as far abroad as China, India, Japan, South Africa and Europe. Should anything material evolve from these discussions, the Company will keep its shareholders advised by way of press release.

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

Patrick D. O'Brien, ICD.D - Chairman

S.E.C. Exemption 12(g) 3-2(b) File No. 82-3822, Standard & Poor's Listed, Dun & Bradstreet Listed.

"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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