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

Capella Resources Ltd.

May 17, 2010 09:01 ET

Capella Terminates Royalty Reduction Option for Nevada Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 17, 2010) - CAPELLA RESOURCES LTD. (TSX VENTURE:KPS)(PINK SHEETS:CPSJF) ("Capella" or the "Company") announces that it has opted not to pay the initial $200,000 option payment to the royalty holders in connection with the royalty reduction agreement the Company entered into for its Nevada gold property (the "Nevada Royalty Reduction Agreement"). Accordingly, the Nevada Royalty Reduction Agreement is terminated with immediate effect. For further details on the Nevada Royalty Reduction Agreement, see the Company's news release dated December 9, 2009, a copy of which is available on SEDAR at www.sedar.com.

About Capella Resources Ltd.

Capella Resources Ltd. is a publicly traded, junior exploration and mineral development company with a strong portfolio of precious and base metal projects in Chile, USA and Atlantic Canada. The Company has a 100% interest in the Lajitas and Nevada gold-copper properties located in the Maricunga Gold and Copper District and approximately 700 kilometres northwest of Santiago, Chile. The properties comprise ten exploration claims and six exploitation claims totalling a cumulative 3,500 hectares in area. The Company holds a 100% interest in the Tinton Gold Project located 15 kilometres west-northwest of the famous and historic Homestake Mine in the Black Hills at Lead, South Dakota. The Tinton property consists of 1,270 hectares contained in 157 unpatented mining claims.

The Company also holds 3,839 mineral exploration claims covering an aggregate land area of over 71,558 hectares in Atlantic Canada (Nova Scotia, New Brunswick and Newfoundland and Labrador).

CAPELLA RESOURCES LTD.

Michael Terry, Director

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

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