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

Capella Resources Ltd.

March 16, 2011 16:27 ET

Capella Resources Announces Royalty Reduction Agreements

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2011) - CAPELLA RESOURCES LTD. (TSX VENTURE:KPS)(PINK SHEETS:CPSJF) ("Capella" or the "Company") is pleased to announce that it has entered into agreements with International Mineral Resources ("IMR") and Roberto Alarcon Bittner ("Bittner") with respect to the buy-down of royalties on both the Lajitas and Nevada properties. The parties have terminated the agreement dated August 29, 2008, as announced on September 26, 2008, with respect to the option to reduce the royalty on the Lajitas property.

Lajitas Property

The Company, IMR and Bittner have entered into an agreement dated March 1, 2011 pursuant to which the royalty on the Lajitas property (the "Lajitas Royalty") will be permanently reduced from 5% to 2% by the Company paying to IMR and Bittner $300,000 cash, in equal amounts. Pursuant to the agreement, the Company has also been granted an option to reduce the Lajitas Royalty by an additional 1% by paying $2,000,000, such option to be exercised at any time.

Nevada Property

The above parties have entered into a second agreement dated March 1, 2011 pursuant to which the royalty on the Nevada property (the "Nevada Royalty") will be permanently reduced from 5% to 3% by the Company paying to IMR and Bittner $200,000 cash, in equal amounts. Pursuant to the agreement, the Company has also been granted an option to reduce the Nevada Royalty by up to 2%, in increments of 1%, by paying $1,000,000 per 1% reduction, up to a maximum of $2,000,000, such option to be exercised at any time.

The agreements are considered to be "related party transactions" as such term is defined by the policies of the TSX Venture Exchange (the "Exchange") as IMR is legally and beneficially owned by Richard L. Bachman, an officer and director of the Company.

Both agreements are subject to the approval of the Exchange.

CAPELLA RESOURCES LTD.

Richard Bachman, Chief Executive Officer, President & Chief Geological Officer

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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