Aquila Resources Inc.
TSX VENTURE : AQA
FRANKFURT : A9F

Aquila Resources Inc.

June 06, 2006 18:19 ET

Aquila Resources Inc.: Back Forty Drilling Intersects Zinc-Gold

TORONTO, ONTARIO--(CCNMatthews - June 6, 2006) - AQUILA RESOURCES INC. (TSX VENTURE:AQA)(FRANKFURT:A9F) ("Aquila" or the "Company") is pleased to announce assay results from the first five holes of a 14 hole 3,000m drill program at the Back Forty VMS-gold project in Michigan's Upper Peninsula. The Back Forty project is located in the eastern end of the Penokean Volcanic Belt, an early Proterozoic aged, calc-alkaline volcanic and sedimentary assemblage containing numerous VMS deposits and occurrences. VMS mineralization at the project was discovered and operated by a privately held Michigan corporation until Aquila Resources Inc. acquired the project in 2006. The project consists of over 9,000 acres of mineral and surface interests owned or held under lease or option by Aquila, subject to various net smelter return royalties and other minority interests.

Previous exploration at the project identified two lenses of zinc and gold rich massive sulfide mineralization hosted by a highly altered sequence of rhyolitic flows and pyroclastic rocks. During 2002 and 2003, 12,200 meters (m) of drilling in 51 holes established a 43-101 inferred resource of 3.1 million tonnes of 6.8% Zn and 2 g/t Au, which is open for expansion and is currently being targeted in the ongoing drilling campaign at the project.

The first five holes (LK-72 through LK-76) of the ongoing drilling program were directed at expanding and further defining, flat lying, near surface gossans and underlying massive sulfides of the East Zone massive sulfide encountered in previous drilling. Subsequent drilling will test the down plunge and dip extensions of this horizon as well as the overlying Tuff Zone massive sulfide mineralization.

LK-72 : a step out hole 25m to the south of the East End discovery hole 108402. The hole was drilled vertically and at a depth of 8m encountered a true thickness of 3.57m of gossan averaging 33.31 g/t Au, overlying 28.24m of massive sulfide containing 9.25% Zn, and 4.28 g/t Au, including a 4.5m basal gold rich section of massive sulfide grading 13.3% Zn and 10.58 g/t Au.

LK-73: a vertical hole located 27m south of LK-72, which encountered 3.5m of gossan grading 50.28 g/t Au, underlain by 20.8m of massive sulfide containing 12% Zn and 2 g/t Au, including a basal section of 4.3m of 17% Zn and 4.74 g/t Au.

LK-74: was drilled from the LK-73 site and angled -50 degrees to the south to delineate the southern edge of the east end massive sulfide where it is intruded by quartz-feldspar-porphyry (QFP). The hole encountered 7.5m of gossan (4.8m estimated true thickness) grading 11.34 g/t Au and .35m of massive sulfide grading 14.6 g/t Au before encountering intrusive porphyry.

LK-75: was drilled from the LK-73 set up at a -70 degrees angle to cut a thicker section of massive sulfides and confirm the attitude of the QFP encountered in LK-74. LK-75 encountered an estimated true thickness of 3.6m of gossan averaging 33.3 g/t Au and 9m (estimated 8.4 true thickness) of massive sulfide grading 9.1% Zn and .93 g/t Au, before intersecting QFP. Based on results of vertically oriented LK-73, this hole, as well as LK-74, is interpreted to have only tested a portion of the full thickness of massive sulfides before encountering the intrusive QFP.

LK-76: was drilled vertically 27m to the east of LK-72 and encountered 2.75m (true thickness) of gossan averaging 24.21 g/t Au overlying 20.68m of massive sulfide running 9.8% Zn and 2.5 g/t Au, which included a basal section of 3.5m of 17.3% Zn and 6 g/t Au.

Composite assay results from these holes are provided below and further information will be available on the company's website at www.aquilaresources.com.



Composite Summaries

Est.
Interval True g/t g/t
BHID From To (m) width Au %Zn %Cu Ag Description
---------------------------------------------------------------------
LK72 8.09 11.66 3.57 3.57 33.31 0.01 0.01 11.0 Gossan
LK72 16.26 44.50 28.24 28.24 4.28 9.25 0.45 23.5 Massive
Sulfide,
95+%
sulfide
includes 16.26 38.50 22.24 22.24 4.54 10.43 0.55 27.5
includes 20.50 38.50 18.00 18.00 5.23 11.02 0.59 30.1
includes 34.00 38.50 4.50 4.50 10.58 13.32 0.47 50.7 Massive
Sulfide,
basal
section

LK73 8.37 11.85 3.48 3.48 50.29 0.02 0.01 8.4 Gossan
LK73 13.50 34.30 20.80 20.80 2.01 12.04 0.18 16.3 Massive
Sulfide,
95+%
sulfide
includes 30.00 34.30 4.30 4.30 4.74 17.00 0.17 31.1

LK74 11.06 18.60 7.54 4.80 11.34 0.02 0.08 5.4 Gossan
includes 11.06 13.00 1.94 1.90 33.04 0.01 0.01 7.3

LK75 9.64 13.54 3.90 3.64 33.30 0.02 0.02 7.7 Gossan
LK75 16.50 25.50 9.00 8.40 0.93 9.07 0.10 9.8 Massive
Sulfide,
95+%
sulfide
includes 21.00 24.00 3.00 2.80 0.44 11.92 0.04 14.5

LK76 8.10 10.85 2.75 2.75 24.21 0.02 0.00 9.3 Gossan
LK76 10.85 31.53 20.68 20.68 2.49 9.78 0.24 18.8 Massive
Sulfide,
95+%
sulfide
includes 24.00 31.53 7.53 7.53 4.06 12.54 0.16 33.2 Massive
Sulfide,
basal
section
includes 27.00 30.50 3.50 3.50 6.00 17.26 0.20 46.0 Massive
Sulfide,
basal
section


Tom Quigley, President of Aquila and NI 43-101 QP for the project stated "Initial drill holes in this program were targeting the important near surface gossan and massive sulfides at the east end of the west plunging massive sulfide system, and were successful at expanding and further defining this important portion of the resource. Additional drilling targeting down plunge portions of the Main Zone, South Limb and Tuff Zones are ongoing and results will be released when assays have been received".

Concurrent with the ongoing drill program, down hole, pulse EM surveys are being conducted to identify off hole targets and deep mineralization. These surveys have been successfully employed in the past and will help guide follow up drilling to delineate existing mineralization as well as identify new targets in the extensively altered sequence of host rhyolites.

Drill core from this program is logged, split, and sampled at the project site, with analytical blanks and standards inserted in sample streams which are shipped to Chemex Labs in Thunder Bay, Ontario for analysis.

Incentive Options

The Board of Directors of Aquila Resources Inc. has approved the issuance of 500,000 incentive common share options to management of the Company. The options are exercisable for a period of five years at an exercise price of $0.70 per share. The issuance of the options is subject to the approval of the TSX Venture Exchange.

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: 39,337,197

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

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