Aquila Resources Inc.
TSX VENTURE : AQA
FRANKFURT : JM4A

Aquila Resources Inc.

November 02, 2006 01:00 ET

Aquila Expands Near Surface Gold and Zinc Mineralization 59.1 Meters of 4.27 G/T Gold 40.5 Meters of 1.74 G/T Gold and 8.17% Zinc

TORONTO, ONTARIO--(CCNMatthews - Nov. 2, 2006) - AQUILA RESOURCES INC. (TSX VENTURE:AQA)(FRANKFURT:JM4A) ("Aquila" or the "Company") is pleased to announce results of 3 holes from the East Zone on the recently acquired MRT Property, drilled with the purpose of expanding and defining near surface mineralization at the Back Forty Project. The East Zone and Pinwheel Zone occur over a strike length of 450 meters separated by the down dropped Main Zone Hinge which is the target of current drilling. Results from an additional 11 holes at the East Zone and 25 holes at the Pinwheel Zone are pending.

Drill holes LK-103E, LK-104E, and LK-105E comprised a north south fence of 25 meter spaced vertical holes located 25 meters west of holes drilled last spring and reported in a news release dated June 6, 2006. All three drill holes encountered gold bearing gossan overlying thick intervals of gold and/or zinc rich massive and semi massive sulfide, as well as dense stringer sulfide mineralization. Highlights include:

- 3.6 meters of 6.16 g/t gold (gossan) directly over 55.5 meters of 4.15 g/t gold in LK-103E

- 3.1 meters of 36.98 g/t gold (gossan) directly over 57.0 meters of 2.19 g/t gold in LK-104E

- 3.4 meters of 9.28 g/t gold (gossan) directly over 40.5 meters of 1.74 g/t gold and 8.17% zinc in LK-105E (all intervals equal estimated true width)

More detailed assay results for these drill holes are presented in the table below.



---------------------------------------------------------------------------
East Zone - Summary Drill Results
---------------------------------------------------------------------------
All Intervals
In Meters g/t g/t % % %
Hole # From To Interval(i) Gold Silver Copper Lead Zinc Description
---------------------------------------------------------------------------
LK-103E 8.9 12.5 3.6 6.16 7.33 0.06 0.02 0.00 Gossan
---------------------------------------------------------------------------
12.5 68.0 55.5 4.15 11.86 0.58 0.01 0.05 Massive and
stringer
sulfide
---------------------------------------------------------------------------
includes 32.0 59.0 27.0 5.70 15.56 0.64 0.02 0.07 Massive and
stringer
sulfide
---------------------------------------------------------------------------
LK-104E 8.3 11.4 3.1 36.98 6.35 0.01 0.01 0.01 Gossan
---------------------------------------------------------------------------
11.4 68.4 57.0 2.19 9.70 0.39 0.01 0.02 Massive and
stringer
sulfide
---------------------------------------------------------------------------
includes 27.9 39.9 12.0 3.64 20.56 0.80 0.02 0.03 Massive and
stringer
sulfide
---------------------------------------------------------------------------
LK-105E 11.6 15.0 3.4 9.28 5.19 NA NA NA Gossan
---------------------------------------------------------------------------
15.0 55.5 40.5 1.74 22.17 0.24 0.20 8.17 Massive and
stringer
sulfide
---------------------------------------------------------------------------
includes 39 51.1 12.1 1.56 31.14 0.10 0.49 16.75 Massive and
stringer
sulfide
---------------------------------------------------------------------------
NA equals not analyzed

(i) Estimated true width


East Zone mineralization is nearly flat lying and occurs under thin (3 to 15 meters) glacial overburden. Below the overburden, 3 to 4 meters of precious metal enriched gossan typically caps intervals of massive sulfide and underlying stringer mineralization. "We are extremely pleased to encounter these thick zones of gold and zinc mineralization capped by precious metal enrichment at the near surface East Zone," stated Tom Quigley, President and CEO of Aquila. "Especially notable is the continuity of gold mineralization from very near the surface to depths approaching 70 meters, suggesting potential for a substantial near surface resource at the East Zone and Pinwheel Zone." Assay results from the additional 11 holes at the East Zone, and 25 holes at the Pinwheel Zone, as well as from other deeper targets will be released when they have been received. A map showing the location of the drill holes has been posted on the Aquila website at www.aquilaresources.com.

Information from drilling through the end of October will be incorporated into an updated National Instrument 43-101 technical report to be completed by year end. The report will contain an updated resource estimate as well as new details of geology and mineralization at the Back Forty Project.

Sample preparation and analyses for this release were conducted by Accurassay Labs in Thunder Bay, Ontario on split drill core supplied by Aquila. Standards were inserted in the sample sequences with check assays and re-runs routinely conducted. Tom Quigley, P.Geo. and President of Aquila, is the Qualified Person as described in National Instrument 43-101 for the Back Forty Project and is responsible for the contents of this press 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.

Shares Outstanding: 53,216,948

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

Contact Information