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

Capella Resources Ltd.

June 22, 2011 15:41 ET

Capella Identifies New Copper-Gold Porphyry Targets on its Peru Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 22, 2011) - CAPELLA RESOURCES LTD. (TSX VENTURE:KPS)(PINK SHEETS:CPSJF) ("Capella" or the "Company") is pleased to announce that it has identified new copper-gold porphyry targets on its El Rojo and Habanero properties in southern Peru as a result of the recently completed ZTEM/Airborne Magnetic geophysical survey by Geotech Ltd. of Aurora, Ontario.

The rationale for using Geotech Ltd. Z-tipper electromagnetic system (ZTEM) was based on the system's ability to resolve the deeper porphyry-style targets and penetrate the "silica-cap" that is often present in nearby mineralization systems like the one at the La Rescatada mine.

Based on the observation and analysis of available geological and geophysical data, prior to the ZTEM survey it was concluded that the El Rojo and Habanero (Properties) are situated within the regional mineralization trend of Andahuaylas – Yauri skarn and porphyry belt with noted mineralization occurrences situated in the zones of magnetic-feature deflection and intersection of magnetic-derived, topographic and field-mapping lineaments and faults. Furthermore, the analysis of satellite data has evidenced possible hydrothermal alteration assemblages indicative of argillic and steam-heated argillic in and around the Properties and showed correlation with the observed regional magnetic and circular geomorphologic features (radial fractures).

The aeromagnetic data and ZTEM, collected at 300 metre line spacing indicate a presence of positive magnetic and ZTEM anomalies in both concessions. At the El Rojo concession, the mid-frequency (90Hz), in-phase, total-divergence ZTEM data indicates a circular-shaped intersection of NE and NNW positive trends with an apparent ring of low-response in the south-central portion of the concession. The circular area of low-response in ZTEM data is congruent with the zone of satellite-mapped hydrothermal alteration occurrences on the fringes of a circular topographic feature. The El Rojo property lies 8 kilometers west of the Andres-Arasi mine (formerly the La Rescatada project) which is a surface, heap leach gold mine operated by Aruntani S.A.C. of Lima, Peru.

At the Habanero, the data suggests an isolated positive response zone, similarly associated with a circular topographic feature, exhibiting hydrothermal alteration assemblages towards the periphery where the surface volcanic cover has been removed. The observed features on the preliminary data, released by Geotech, are consistent with similar observations noted on the porphyry-style targets using ZTEM system. It is expected that the additional processing and inversions of newly acquired geophysical data will yield additional clues and refined drill targets.

The Company plans to conduct follow-up sampling and mapping on both Properties in preparation of a drill program.

Amer Smailbegovic, Ph.D. & CPG., 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. The reader is directed to Capella Resources Ltd.'s website (www.capellaresources.com) where additional information and a technical report on the El Rojo and Habanero properties is available for download.

On behalf of the Board:

CAPELLA RESOURCES LTD.

Richard Bachman, 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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