Capella Resources Ltd.
TSX VENTURE : KPS
PINK SHEETS : CPSJF

Capella Resources Ltd.

August 17, 2011 18:41 ET

Capella Announces Resource Estimate for Lajitas Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2011) - CAPELLA RESOURCES LTD. (TSX VENTURE:KPS)(PINK SHEETS:CPSJF) ("Capella" or the "Company") ") is pleased to announce an updated National Instrument 43-101 Report (the "Report") for the Company's Lajitas Gold Project in Chile (the "Lajitas Project"). The Report dated effective August 17, 2011 has been prepared for the Company by Brian L. Cole, P. Geo., who is a Qualified Person under National Instrument 43-101. The Report includes an inferred resource estimate of 35.4 million tonnes grading 0.45 g/t gold using a .2 g/t cut-off, approximately 516,000 contained troy ounces of gold for the Lajitas Project. A copy of the Technical Report will be filed on SEDAR under the Company's profile at www.sedar.com.

Preliminary metallurgical tests for the Lajitas Project (previously announced February 19, 2010) indicate favourable gold recovery from conventional cyanidation and that heap leach techniques may be feasible. Recoveries ranging from 63% - 73% were achieved on samples from the resource area in a 96 hour bottle roll suggesting that oxidation of gold mineralization at Lajitas extends to depths greater than 200m below the surface. Modified Acid/Base Accounting tests displayed a large net acid neutralization potential with very low acid generation potential thereby suggesting the mineralized material from the resource area would not generate significant acid in a natural weathering environment.

Gerald Aberle, President and Chief Executive Officer of Capella commented, "We are extremely pleased with this initial resource estimate. The Inferred Resource has set the stage for our development plans which will include drilling intended to expand the resource area and the exploration of the new targets recently identified at Lajitas."

Lajitas Inferred Gold Resource Estimate by Cut-Off Grade
Lajitas Project, Chile
Cut-Off Grade g/t Au Tonnes Tenor
g/t Au
Gm Au Oz Au
0.1 37,295,000 0.44 16,338,614 525,299
0.2 35,496,000 0.45 16,040,653 515,719
0.3 27,869,000 0.50 14,071,174 452,399
0.4 19,170,000 0.58 11,204,317 360,227
0.5 11,236,000 0.67 7,543,140 242,518
Dilution below 0.2 within Wire Frames 1,845,000 0.16 301,909 9,707
Note: Tonnage Values not rounded.

Brian L Cole, P. Geo., has reviewed the technical disclosure contained in this news release and is a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

CAPELLA RESOURCES LTD.

Gerald Aberle, Chief Executive Officer & President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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