Aquila Resources Inc.

Aquila Resources Inc.

September 29, 2011 06:00 ET

Aquila Updates Progress at Reef Gold Project Including 9.26 Meters of 21.28 Grams Per Tonne Gold Intercept

TORONTO, ONTARIO--(Marketwire - Sept. 29, 2011) - Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) ("Aquila" or the "Company) is pleased to provide an exploration update and report initial assay results at its 100% owned Reef Gold Project in Marathon County, Wisconsin, USA.

The summer drilling program has completed a total of 22 drill holes along two profiles in an effort to extend the known mineralized zones at Reef. The program has focused on identifying the continuation of near surface gold mineralization along strike and at depth.

Thus far, the southern extension has shown similar characteristics matching those of the main zones, as gold continues to occur in quartz stockwork veins and silicified breccia zones.

Initial highlighted assay results from the Reef Gold Project include:

3.0 meters of 8.12 g/t gold in GBP-3
12.47 meters of 1.07 g/t gold in R11-6
10.50 meters of 1.70 g/t gold in R11-9
14.76 meters of 14.41 g/t gold and .30% copper in R11-11
Including 9.26 meters of 21.28 g/t gold and .33% copper

"We are very pleased with the progress being made at Reef and will continue drilling to extend and define the mineralized structure," said President and CEO Tom Quigley. "The strong intercept from R11-11 shows the potential for new, previously unidentified zones southwest of the known resource."

The Company plans to continue drilling through the fall and winter, with the focus shifting towards further infill drilling to define the main mineralized gold zones previously identified by Noranda. The objective will be to prove-up the historic resource and bring it in line with NI 43-101 standards.

Results from the initial 12 drill holes are presented in the table below:

DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
GBP-1 0.00 3.22 3.22 8.40 3.00
11.70 17.80 6.10 0.91 0.83
Including 11.70 12.50 0.80 6.09 2.50
25.30 31.50 6.20 0.80 4.39
Including 26.80 28.20 1.40 2.77 17.70
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
GBP-2 8.00 11.00 3.00 0.94 0.15
23.00 36.00 13.00 0.61 0.31
53.60 65.50 11.90 0.95 1.18
Including 62.50 65.50 3.00 2.48 1.05
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
GBP-3 1.22 4.27 3.05 2.96 3.40
33.00 37.50 4.50 1.00 0.15
Including 35.90 37.50 1.60 3.45 0.32
64.00 71.00 7.00 4.62 1.79
Including 66.00 69.00 3.00 8.12 2.47
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
R11-4 53.50 56.20 2.70 1.93 1.45
Including 54.20 55.40 1.20 3.79 2.19
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
R11-5 21.50 27.50 6.00 1.08 0.26
Including 24.50 27.50 3.00 1.92 0.30
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
R11-6 19.00 31.47 12.47 1.07 0.45
Including 24.45 27.13 2.68 2.42 0.16
51.40 54.03 2.63 0.86 0.11
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
R11-7 9.15 14.70 5.55 1.08 0.53
39.10 39.60 0.50 1.37 2.2
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
R11-8 12.20 13.70 1.50 2.85 0.57
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
R11-9 19.00 21.00 2.00 0.89 0.05
30.75 41.25 10.50 1.70 4.14
Including 31.71 35.30 3.59 4.25 8.50
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
R11-10 12.30 19.50 7.20 0.97 1.04
37.20 41.75 4.55 0.83 2.48
48.15 54.50 6.35 5.61 9.73
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
R11-11 40.60 55.36 14.76 14.41 7.36
Including 46.10 55.36 9.26 21.28 9.76
DDH From (m) To (m) Interval (m) Gold g/t Silver g/t
R11-12 31.71 39.70 7.99 0.58 0.91
* Reported intervals are drill thickness and do not necessarily represent true thickness

New maps and cross sections have been posted on the Reef Project section of our website.

About The Reef Gold Project

Located in Marathon County, Wisconsin, the Reef Gold Project is 100% owned by Aquila. The project consists of approximately 600 acres of mineral and surface interests covering an area of gold mineralization discovered in the 1970's by Noranda Exploration. Noranda identified eight zones of high grade gold mineralization in a widely spaced, 50-hole drilling campaign, and quoted a non 43-101 compliant resource of approximately 119,000 contained ounces (412,406 tonnes @ 10.6 grams per tonne) that is open at depth and along strike.

Drilling by Noranda encountered mineralized quartz stockwork veins/vein breccia zones ranging from 1 to 12 meters thick. Aquila believes the mineral resource estimate is relevant and based on reliable historical reports. The Company has acquired historic drill core from the Reef property and has verified geological characteristics and gold content. For more information on the Reef Project, please refer to the Reef Project section on our website.

About Aquila Resources Inc.

Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) is a mineral exploration and development Company focused on the discovery and advancement of high-grade base and precious metal projects in North America. The Company is rapidly expanding its presence in North America and moving towards an interest in production on its flagship Back Forty Project through a joint venture with HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM) ("HudBay"). The Company has positioned itself for growth by acquiring new properties under an Exploration Alliance with HudBay as well as through the acquisition of 100% owned gold exploration properties. For more information, please visit

Quality Assurance and Quality Control

The core was logged and intersections were marked for sampling and assaying by geologists and geo-technicians employed by Aquila Resources. Each bagged core sample was transported to Minerals Processing Corporation's sample prep lab in Carney, Michigan where it was dried, crushed and pulverized and a 250-gram sample was prepared and split, with one split for assaying at Inspectorate Labs in Sparks, Nevada.

Strict sampling and QA/QC protocol are followed, including the insertion of standards and blanks in the sample stream on a regular basis. Sample intervals are typically 1.5 meters. Analytical method for gold is fire assay with atomic adsorption finish and gravimetric finish for samples greater than 3.0 g/t gold. All other elements are analyzed by ICP with silver over limits (>200 g/t) analyzed by fire assay/gravimetric finish and base metal over limits analyzed by AAS.

Assaying integrity is monitored internally with a quality control program, which includes the use of assay sample standards, blanks, duplicates and repeats, and externally through national and international programs. This news release provides core lengths and estimates of vertical thickness only. True widths are not provided. Where metal assays are provided for intersections they are either a single assay of a sample of the entire intersection length or a composite of assays calculated from interval weighted assays over the intersection length.

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.

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

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