Aquila Resources Inc.
TSX VENTURE : AQA
FRANKFURT : JM4A

Aquila Resources Inc.

August 14, 2006 01:00 ET

Aquila Resources Announces Results from Optioned Property

TORONTO, ONTARIO--(CCNMatthews - Aug. 14, 2006) - AQUILA RESOURCES INC. (TSX VENTURE:AQA)(FRANKFURT:JM4A)("Aquila" or the "Company") is pleased to announce past drilling results from the recently optioned MRT property at its Back Forty Project in the Upper Peninsula of Michigan. These results are based on a 29 hole drilling program on the MRT property conducted by the Back Forty Joint Venture between the American Copper and Nickel Company and the Menominee River Exploration Co. LLC, and managed by Aquila personnel in 2002 and 2003. Aquila has verified these drill results and believes they can be relied on to be correct.

Mineralization at the Back Forty Project consists of at least three zinc and gold rich massive sulfide lenses and stringer zones (see Technical Report by Ted Dematties, dated Aug. 17, 2005). In addition to the precious metal enriched massive sulfides, gold mineralization occurs in altered host rocks and in late stage quartz - feldspar porphyry (QFP) intrusions (note drill holes # 108408, #108416, #108418 in tables below).

Mineralization on the MRT property consists of the western extension of the near surface East End massive sulfide and gossan (see press release dated June 6, 2006), as well as a separate massive sulfide and gossan called the Pin Wheel. "These horizons offer significant potential to add additional tonnage to the already established resource at the Back Forty Project. Further expansion and definition of both the near surface gossans and massive sulfide mineralization in both the Main and Pin Wheel Zones is warranted" stated Tom Quigley Aquila's President. A summary of the 2002 and 2003 drilling on the MRT property is shown in the tables below.



East End Near Surface Massive Sulfide and Stringers Zone

------------------------------------------------------------
(m) (m) (m) (m) Gold Silver
------------------------------------------------------------
est.
Hole # From To Interval true g/tonne g/tonne
------------------------------------------------------------

------------------------------------------------------------
108411 41.0 55.5 14.5 11.0 1.33 10.2
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Including 51.5 55.5 4.0 3.0 2.41 16.2
------------------------------------------------------------

------------------------------------------------------------
108408 33.7 52.5 18.8 18.1 1.12 8.5
------------------------------------------------------------
52.5 57.2 4.7 4.4 2.30 12.0
------------------------------------------------------------
57.2 114.0 56.8 38.4 2.01 8.6
------------------------------------------------------------
including 99.0 108.0 9.0 6.6 4.97 8.5
------------------------------------------------------------
including 111.0 114.0 3.0 2.1 1.59 14.5
------------------------------------------------------------
114.4 118.5 4.1 unknown 28.49 94.5
------------------------------------------------------------

------------------------------------------------------------
108442 10.3 14.9 4.7 4.7 13.72 9.2
------------------------------------------------------------

14.9 108.0 93.1 93.1 2.07 7.4
------------------------------------------------------------

Including 81.0 91.5 10.5 10.5 3.50 12.6
------------------------------------------------------------


-----------------------------------------------------
Copper Zinc
-----------------------------------------------------

Hole # % % Unit
-----------------------------------------------------

-----------------------------------------------------
108411 0.12 4.54 Massive Sulfides
-----------------------------------------------------
Including 0.27 11.85 Massive Sulfides
-----------------------------------------------------

-----------------------------------------------------
108408 0.04 0.96 Massive Sulfide -- pyretic
-----------------------------------------------------
0.15 8.08 Massive Sulfide - Zn rich
-----------------------------------------------------
0.32 0.40 Sulfide Stringer Zone
-----------------------------------------------------
including 0.35 0.03 Sulfide Stringer Zone
-----------------------------------------------------
including 0.09 6.46 Sulfide Stringer Zone
-----------------------------------------------------
0.25 0.64 Alt. QFP w/asp, gn, py
-----------------------------------------------------

-----------------------------------------------------
108442 0.02 0.02 Gossan
-----------------------------------------------------
Massive / Stringer
0.42 0.06 Sulfides
-----------------------------------------------------
Massive / Stringer
Including 1.13 0.05 Sulfides
-----------------------------------------------------


East End Near Surface Massive Sulfide and Stringers Zone (Cont.)

--------------------------------------------------------------
(m) (m) (m) (m) Gold Silver
--------------------------------------------------------------
Hole # From To Interval Est. g/tonne g/tonne
true
--------------------------------------------------------------
108424 18.2 51.5 33.3 29.0 2.32 16.7
--------------------------------------------------------------
Including 30.5 51.5 21.8 17.5 2.30 18.9
--------------------------------------------------------------
51.5 103.5 52.0 unknown 3.45 16.7
--------------------------------------------------------------
Including 51.5 61.5 10.0 unknown 6.50 71.5
--------------------------------------------------------------
Including 93.0 102.0 9.0 unknown 4.60 5.7
--------------------------------------------------------------


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Copper Zinc
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Hole # % % Unit
---------------------------------------------------
108424 0.31 6.34 Massive Sulfides
---------------------------------------------------
Including 0.39 9.24 Massive Sulfides
---------------------------------------------------
0.43 0.07 Stringer Sulfides
---------------------------------------------------
Including 1.64 0.24 Stringer Sulfides
---------------------------------------------------
Including 0.19 0.03 Stringer Sulfides
---------------------------------------------------


East End Down Plunge Massive Sulfide and Stringer Zone

--------------------------------------------------------------
(m) (m) (m) (m) Gold Silver
--------------------------------------------------------------
est.
Hole # From To Interval true g/tonne g/tonne
--------------------------------------------------------------

--------------------------------------------------------------
108416 144.2 183.1 38.9 unknown 4.60 9.4
--------------------------------------------------------------
Including 144.2 161.5 17.3 unknown 6.62 15.2
--------------------------------------------------------------
Including 150.9 161.5 10.6 unknown 8.19 19.8
--------------------------------------------------------------

--------------------------------------------------------------
108417 33.0 83.9 50.9 29.3 2.26 10.4
--------------------------------------------------------------
Including 49.5 66.0 16.5 9.5 1.78 10.1
--------------------------------------------------------------
Including 66.0 83.9 17.9 10.5 3.67 14.9
--------------------------------------------------------------

--------------------------------------------------------------
108433 102.6 114.2 11.6 11.1 4.32 35.3
--------------------------------------------------------------

--------------------------------------------------------------
108423 138.0 189.0 51.0 33.0 0.94 10.6
--------------------------------------------------------------

--------------------------------------------------------------

108412 99.7 167.2 67.5 63.7 3.14 18.3
--------------------------------------------------------------
Including 138.5 167.2 28.7 27.1 5.06 20.0
--------------------------------------------------------------

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108418 211.5 220.0 8.5 unknown 15.23 128.0
--------------------------------------------------------------
236.0 237.5 1.5 unknown 27.91 120.0
--------------------------------------------------------------
251.0 263.0 12.0 unknown 5.91 42.0
--------------------------------------------------------------

--------------------------------------------------------------
108438 135.2 164.7 29.5 28.4 2.37 23.5
--------------------------------------------------------------
135.2 152.7 17.5 16.8 0.93 19.0
--------------------------------------------------------------

--------------------------------------------------------------
108443 153.3 158.6 5.3 5.3 0.71 58.7
--------------------------------------------------------------
159.6 163.2 3.6 3.6 0.82 26.5
--------------------------------------------------------------

--------------------------------------------------------------
108458 230.5 235.7 5.3 4.8 1.49 37.5
--------------------------------------------------------------

--------------------------------------------------------------
108455 61.0 75.2 14.2 12.8 0.03 14.3
--------------------------------------------------------------
includes 64.9 69.2 4.3 3.9 0.11 80.9
--------------------------------------------------------------


--------------------------------------------------
Copper Zinc
--------------------------------------------------

Hole # % % Unit
--------------------------------------------------

--------------------------------------------------
108416 0.40 0.11 Stringer Sulfides
--------------------------------------------------
Including 0.54 0.20 Stringer Sulfides
--------------------------------------------------
Including 0.78 0.10 Stringer Sulfides
--------------------------------------------------

--------------------------------------------------
108417 0.45 1.74 Massive Sulfide
--------------------------------------------------
Including 0.38 4.80 Massive Sulfide
--------------------------------------------------
Including 0.88 0.30 Massive Sulfide
--------------------------------------------------

--------------------------------------------------
108433 0.79 13.71 Massive Sulfides
--------------------------------------------------

--------------------------------------------------
108423 0.11 16.14 Massive Sulfides
--------------------------------------------------

--------------------------------------------------
Total Massive Sulfide
108412 0.26 6.11 Unit
--------------------------------------------------
Including 0.25 12.30 Zn Rich Massive Sulfide
--------------------------------------------------

--------------------------------------------------
108418 0.14 0.06 QFP w/asp, gn, py
--------------------------------------------------
0.14 0.04 Silicified Rhyolite
--------------------------------------------------
0.12 0.19 Silicified Rhyolite
--------------------------------------------------

--------------------------------------------------
108438 0.33 3.86 Massive Sulfides
--------------------------------------------------
0.23 5.91 Including
--------------------------------------------------

--------------------------------------------------
108443 0.43 11.84 Massive Sulfide
--------------------------------------------------
0.23 10.97 Massive Sulfide
--------------------------------------------------

--------------------------------------------------
108458 0.32 12.91 Massive Sulfides
--------------------------------------------------

--------------------------------------------------
108455 0.27 6.35 Massive Sulfides
--------------------------------------------------
includes 0.27 15.80 Massive Sulfides
--------------------------------------------------


Pin Wheel Massive Sulfide and Gossan

-------------------------------------------------------
(m) (m) (m) (m) Gold Silver
-------------------------------------------------------
est.
Hole # From To Interval true g/tonne g/tonne
-------------------------------------------------------

-------------------------------------------------------
108421 11.0 15.3 4.3 3.9 8.03 132.1
-------------------------------------------------------

15.3 23.0 7.7 6.9 3.44 161.3
-------------------------------------------------------
191.1 209.0 17.9 unknown 11.06 240.8
-------------------------------------------------------

-------------------------------------------------------
108435 10.0 13.0 3.0 2.7 10.21 56.5
-------------------------------------------------------
13.0 17.4 4.4 4.0 3.30 90.3
-------------------------------------------------------

-------------------------------------------------------
108426 45.0 49.7 4.7 4.0 25.08 1472.2
-------------------------------------------------------
49.7 74.3 24.6 21.0 2.04 45.9
-------------------------------------------------------
74.3 87.0 12.7 unknown 2.50 16.9
-------------------------------------------------------

-------------------------------------------------------
108432 50.0 56.8 6.8 5.0 2.54 302.2
-------------------------------------------------------
58.0 69.4 11.4 9.7 1.30 22.7
-------------------------------------------------------
85.0 91.0 6.0 unknown 18.64 242.5
-------------------------------------------------------

-------------------------------------------------------
108436 9.5 10.0 0.5 0.4 2.05 39.0
-------------------------------------------------------

10.0 51.5 41.5 27.0 1.44 30.4
-------------------------------------------------------

-------------------------------------------------------
108439 16.2 29.4 13.2 9.5 6.02 36.1
-------------------------------------------------------

-------------------------------------------------------
108434 28.9 43.2 14.3 11.7 4.11 152.1
-------------------------------------------------------
43.2 68.0 24.8 20.3 1.15 46.7
-------------------------------------------------------
Including 43.2 49.2 6.0 4.9 2.39 162.8
-------------------------------------------------------


-------------------------------------------------
Copper Zinc
-------------------------------------------------

Hole # % % Unit
-------------------------------------------------
-------------------------------------------------
108421 0.24 0.01 Gossan
-------------------------------------------------
Massive / Stringer
5.27 0.01 Sulfides
-------------------------------------------------
0.13 1.30 Sheared Stringer Sulfides
-------------------------------------------------
-------------------------------------------------
108435 0.24 0.00 Gossan/Massive Sulfide
-------------------------------------------------
4.46 0.01 Massive Sulfide
-------------------------------------------------
-------------------------------------------------
108426 0.47 0.01 Gossan
-------------------------------------------------
0.48 0.03 Semi-Massive Sulfides
-------------------------------------------------
0.75 0.15 Stringer
-------------------------------------------------
-------------------------------------------------
108432 0.38 0.01 Gossan
-------------------------------------------------
0.42 0.33 Massive Sulfides
-------------------------------------------------
0.08 0.20 Sulfide Stringer
-------------------------------------------------
-------------------------------------------------
108436 0.75 0.01 Gossan
-------------------------------------------------
Massive / Stringer
0.95 0.24 Sulfides
-------------------------------------------------
-------------------------------------------------
108439 0.09 0.01 Gossan
-------------------------------------------------
-------------------------------------------------
108434 0.43 0.00 Gossan
-------------------------------------------------
0.43 0.09 Semi-Massive Sulfides
-------------------------------------------------
Including 1.20 0.01 Semi-Massive Sulfides
-------------------------------------------------


A second drill rig is being added to the project to expand and further define the zones of mineralization at the Back Forty. "We are proceeding with an aggressive drill program to establish an updated resource at the Back Forty Project" said Quigley.

Warrant Acceleration

The Company would like to clarify its prior announcement of the acceleration of outstanding warrants. In addition to accelerating the common share purchase warrants set to expire on November 29, 2007, the Company is also accelerating the warrants that were set to expire on January 17, 2008 and January 18, 2008. The expiry date of these warrants is now September 6, 2006.

Thomas O. Quigley, P. Geo., is the qualified person as defined in NI-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.

Shares Outstanding: 46,973,233

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

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