Aquila Resources Inc.
TSX VENTURE : AQA
FRANKFURT : JM4A

Aquila Resources Inc.

August 24, 2006 01:00 ET

Aquila Continues to Expand Massive Sulfide Zones

TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2006) - AQUILA RESOURCES INC. (TSX VENTURE:AQA)(FRANKFURT:JM4A) ("Aquila" or the "Company") is pleased to announce results from three (3) additional drill holes from the Back Forty Project in the Upper Peninsula of Michigan.

Drill hole LK-86 was a 30 meter and 40 meter step out from two previous intersections of Main Zone massive sulfides (see South Limb long section at www.aquilaresources.com). It successfully intersected two zinc rich lenses of the Main Zone. Drill hole LK-87 targeted the Tuff Zone 40 meters and 50 meters down dip and along strike respectively from previously drilled holes (see Tuff Zone long section), and encountered 6.5 meters of massive sulfide.



Drill hole LK-85 was a step out to the east of a previous gold intercept
in siliceous sediments, and intersected only minor mineralization.

------------------------------------------------------------------------
(m) (m) (m) (m) Gold Silver Copper Zinc
Inte- est.
Hole # From To rval true g/tonne g/tonne % % Unit
------------------------------------------------------------------------
LK-86 263.58 271.6 8.06 7.50 1.02 12.09 0.14 13.97 Main Zone
Massive
Sulfide,
Upper
Lens
------------------------------------------------------------------
283.95 297.4 13.45 12.51 2.97 32.28 0.31 12.04 Main Zone
Massive
Sulfide,
Lower
Lens
------------------------------------------------------------------------
LK-87 316.9 323.9 7.04 6.55 0.99 19.85 0.04 5.84 Tuff Zone
Massive
Sulfide
------------------------------------------------------------------
Incl- 320.67 323 2.33 2.17 0.55 7.43 0.03 12.73 Tuff Zone
udes Massive
Sulfide
------------------------------------------------------------------------
LK-85 77.5 84.5 7.00 unkn- 0.27 8.32 0.01 1.15 Chloritic
own Tuff
------------------------------------------------------------------------


Sample preparation and assays on split core submitted by Aquila were completed by ALS Chemex Labs in Thunder Bay, Ontario and Vancouver, BC. Trace elements excluding gold were analyzed by ICP emission spectrometry with "ore grade" analyses conducted on heavily mineralized samples and samples exceeding upper reporting limits for the ICP package. Gold was analyzed by fire assay fusion with atomic absorption finish, with samples exceeding 3 parts per million gold re-run with fire assay fusion and gravimetric finish. Standards were inserted in the sample stream and check analyses performed on select samples.

A total of 96 drill holes have been completed to date at the Back Forty Project, with results for holes LK-88 through LK-90 expected shortly. A second drill is being mobilized to the property with drilling ongoing. The Company will be updating the website with additional informational graphics including a plan view of the area of existing 43-101 compliant resource, as well as the mineralized zones on the recently acquired MRT Property.

Thomas O. Quigley, P. Geo., is the qualified person as defined in National Instrument 43-101, and is responsible for the information contained in this news release.

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.

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