Apella Resources Inc.

Apella Resources Inc.

August 06, 2009 14:16 ET

Apella Resources Inc.: Frontline Uranium Project; Subsidiary "Priority Uranium Corporation" Formed & Exploration Program Outlined

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 6, 2009) -

Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) and its Board of Directors are pleased to announce that Apella has now received a technical report prepared by Roger Moar, B.Sc., P.Geo, for its 100% owned Frontline Uranium Project. Mr. Moar prepared the report at the request of Christian Derosier, Ph.D Apella's V.P. Exploration as a follow-up to the Radiometric Airborne Survey, prospecting and sampling undertaken by Apella in 2007 and 2008. Apella sought an independent opinion on the potential of the Frontline Uranium Project and proposed exploration program to move the project forward.

A wholly-owned subsidiary Priority Uranium Corporation (herein referred to as "Priority") has now been formed. The Frontline Uranium Project will be placed into Priority in exchange for an equity position in favour of Apella. Priority has its own Board and Management team and will be self financed. It will be solely responsible for raising its own capital to undertake exploration on its own projects, and financing its own administrative expenditures. Apella will continue to focus its capital and efforts primarily on its strategic Vanadium-Iron-Titanium projects.

In 2007 a short reconnaissance prospecting program was conducted by Apella on the Frontline Uranium Project. Two grab samples collected on outcrops in NE portion of the property returned values of 448 and 1 220 ppm U (0.053 and 0.144% U3O8). The mineralization is hosted in concordant, pluridecimetric to metric wide, pegmatite injections within biotite and hornblende gneisses and amphibolites. Apella conducted a high resolution helicopter gamma-ray spectrometry survey over 60% of the property in December 2007 and January 2008. Radiometric data was collected and analyzed. The survey was conducted while there was up to 1 metre of snow cover. In spite of the poor radiometric survey conditions 40 low amplitude radiometric Uranium anomalies exceeding the 98th percentile (1.07 ppm eU) were outlined of which twenty-nine are considered be high priority targets. The Frontline Uranium Project has no previous history for Uranium exploration prior to Apella's endeavours, and still remains largely unexplored.

Based on a combination of regional lake-bottom uranium anomalies, helicopter-borne radiometric uranium anomalies, recently discovered uranium occurrences and favourable lithologies, Apella considers the Frontline Uranium Project prospective for uranium mineralization.

A two-stage exploration program totaling $562,485 is recommended to delineate prospective areas of uranium mineralization on the Frontline. Phase-1 will involve geologic and radiometric follow-up, trenching and channel sampling, assaying and reporting totaling $210,980. Phase-2 will include 2000 metres of NQ diamond drilling, core logging, assaying and reporting totaling $351,505. The objective of Phase-1 will be to validate prospective uranium anomalies outlined by the helicopter-borne radiometric survey over the property by geological, geochemical, and ground-based radiometric follow-up. All significant uranium mineralization encountered on the property will then be systematically investigated by trenching, channel sampling and detailed geological mapping to determine the grade and width of the uranium mineralization. Phase-2 of the proposed exploration program is conditional to positive results generated from Phase-1. The Phase-2 program would comprise a 2,000 metre diamond drill program to test high-priority targets identified during Phase-1.

The Frontline Uranium Project is located approximately 47 kms (29 miles) south of Chibougamau, Quebec, and approximately 660 kms (410 miles) north of Montreal, Canada. It lies between the southern limit of the Abitibi sub-province of the Superior Province and the parautochtonous domain of the Grenville Province. These two geological provinces are separated by the Grenville Front tectonic zone.

The town of Chibougamau, with a population of approximately 7,560 people is the major town in the area and can provide housing, servicing, supplies and consumables as well as transport facilities including railway access for efficient mining operations. Chibougamau is a well known mining centre and has hosted many producing mines over the past 50 years. The Frontline Uranium property is accessible via Regional Highway 167 which crosses the north-eastern part of the property. The Canadian National rail line crosses the north-eastern portion of the property and the central portion of the property is crossed by an electrical transmission line.

The qualified person for the purposes of this news release is Roger Moar, B.Sc., P.Geo.

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.

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