Aquila Resources Inc.

Aquila Resources Inc.

July 03, 2012 06:00 ET

Aquila Resources Advised of Decision to Suspend Activities at Back Forty Project

TORONTO, ONTARIO--(Marketwire - July 3, 2012) - Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) ("Aquila" or the "Company") today announced it has been informed by joint venture partner Hudbay Minerals Inc. ("Hudbay") (TSX:HBM)(NYSE:HBM) that, due to other capital commitments on its key development projects and global economic conditions, it has decided to suspend its development activities at the Back Forty Project.

The Back Forty Project, located in the Upper Peninsula of Michigan, is an advanced stage exploration project delineating a zinc and gold-rich volcanogenic massive sulphide deposit under a joint venture agreement between Aquila and Hudbay. Aquila owns a 49% interest in the project and Hudbay owns a 51% interest.

"Over the past several years we have made excellent progress advancing the Back Forty Project towards a producing mine," said Tom Quigley, Aquila's President and CEO. "In light of Hudbay's decision, we will evaluate a range of options and opportunities available to us to continue advancing the project and strengthening our position in the Great Lakes region. The Back Forty Project is in the final phases of permit preparation and remains a highly prospective development prospect with significant potential for additional growth, and we will work with Hudbay to consider strategic alternatives that are in the best interests of our shareholders, other stakeholders, and the Back Forty Project."

Hudbay has also advised Aquila that it is terminating the strategic exploration alliance between Hudbay and Aquila. Aquila will maintain 100% interest in the four strategic alliance properties currently under evaluation.

About Aquila Resources Inc.

Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) is a mineral exploration Company focused on the discovery and development of high grade base and precious metal projects in highly prospective regions of North America. For more information please visit

Thomas O. Quigley is the Qualified Person for Aquila Resources as described in National Instrument 43-101 and is responsible for the contents of this release.

This press release contains certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; changes in project parameters as plans continue to be refined, future prices of resources; possible variations in reserves, grade or recovery rates, accidents, labor disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.

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