Aquila Resources Inc.

Aquila Resources Inc.

November 29, 2006 15:19 ET

Aquila Announces Brokered Private Placement Increased to $25 Million

TORONTO, ONTARIO--(CCNMatthews - Nov. 29, 2006) - AQUILA RESOURCES INC. (TSX VENTURE:AQA)(FRANKFURT:JM4A) ("Aquila" or the "Company") is pleased to announce that, further to its press release of November 21, 2006, due to overwhelming institutional interest, the Company has increased the size of the financing, including an over allotment option, to a total of $25,600,000 (the "Offering"). The Offering is being made through a syndicate of agents consisting of Jennings Capital Inc. as Lead Agent and Wellington West Capital Markets Inc. (collectively, the "Agents") and is to be completed on a reasonable best efforts basis.

The Offering consists of 12,484,848 units of the Company (the "Units") offered to qualified investors at a price of $1.65 per Unit, for aggregate gross proceeds of $20,600,000. Each Unit is comprised of one common share and one-half of one common share purchase warrant.

The Company has increased the over allotment option granted to the Agents to 3,030,303 Units, to be sold on a "best efforts" agency basis, for additional proceeds of $5,000,000. The Agents' option is exercisable at any time up to 48 hours prior to the closing date, and could result in aggregate gross proceeds of $25,600,000 through the issuance of 15,515,151 Units.

All other aspects to the financing remain unchanged. The Offering is subject to regulatory approval and the completion of definitive documentation and is scheduled to close on December 14, 2006.

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The securities being offered have not and will not be registered in the United States under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws, and may not be offered or sold within the United States or to or for the account of benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to purchase securities in the United States.

Shares Outstanding: 53,630,897

The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this release.

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