Drilling to Commence on Lac Dore North Iron-Vanadium-Titanium (Fe-V2O5-Ti) Project Chibougamau, Quebec

Tuesday, 30 June 2009 12:30

Apella Resources Inc. (TSX.V: APA); (Frankfurt Symbol: NWN)and its Board of Directors are pleased to announce that Phase 2 of its 2009 exploration work has commenced on its Lac Dore North Iron-Vanadium-Titanium (Fe-V-Ti) Project. Apella's crews have now completed all of the necessary access road building and improvements that were necessary for access. Drill contracts have been signed and the initial 10-hole NQ-core drill program will commence on July 4th.

The Lac Dore North encompasses 18 claims covering an area of approximately 300 hectares (741 acres), covering the northeast extension of the renowned Lac Dore Vanadium-Titanium-Iron (Fe-V-Ti) Deposit, over a strike length of 2.6 kilometers (1.6 miles). The nearby, 5.5 billion pound Lac Dore (Fe-V-Ti) deposit, is reported to be the world's second largest vanadium deposit.

Crews are also on site completing the Phase 1 work which Apella announced on June 19th. The 10-hole drill program will be coupled with a comprehensive mapping program.

Readers are referred to Apella press release of January 22, 2009 in which Apella reported its exceptional Iron-Vanadium-Titanium (Fe-V2O5-TiO2) results obtained from its extensive clearing and channel sampling program carried out in the area about to be drilled. Vanadium values obtained ranged from 0.05% to 0.610%, which after conversion to V205, returned values from 0.089% to 1.089%. The average grade of Vanadium Pentoxide (V205) is 0.55% V2O5. Titanium (Ti02) values range from 1.33% to 12.30%; the average grade of Titanium (Ti02) is 6.40% Ti02. Iron (Fe) values range from 13.23% to 56.50% Fe; the average grade of Iron (Fe) is 32.81% Fe.

During that fall 2008 exploration program, Apella's field crew stripped and cleared off two large areas, covering several hundred square meters of magnetite-bearing mineralization, as well as four smaller zones. The stripped areas cover part of the P1 Zone which is found at the base of the Layered Series of the Lac Dore Anorthositic Complex. Normally this zone varies from 30 to 90 meters in thickness. It is the only zone which contains economic values of Vanadium. The P1 Zone is made of an alternation of leucocratic ferrogabbro, magnetite rich ferrogabbro, ferropyroxennite, magnetite rich pyroxenite and magnetites. The channel sampling cut part of this alternation like a horizontal drill hole. It is consequently normal to obtain samples presenting rich and low Vanadium contents.

For ease of reference, the samples obtained by Apella in its fall 2008 channel sampling program are listed in the table below:

The samples above were analyzed by ALS-Chemex laboratories in Val d'Or, Quebec and in Perth, Australia, using two different methods. The first method is aimed at Iron ore. It consists of a fusion followed by X-Ray fluorescence spectrometry (ME-XRF-11). The accuracy for Vanadium is 0.001%. However, shipping the samples to Australia required a long quarantine period which does not allow for results prior to a three month time period. Consequently, the Company requested that the laboratory propose a method of assaying providing almost the same results but with a much shorter waiting period. The second batch of samples were treated by fusion (lithium metaborate) followed by X-Ray fluorescence (ME-XRF-06). Results were obtained within three weeks using this method.

The qualified person for the purposes of this news release is Dr. Christian G. Derosier, P.Geo.

Apella invites the public to visit its website at http://www.apellaresources.com or e-mail us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it to be added to the Company's e-mail list for press releases and updates.

ON BEHALF OF THE BOARD OF DIRECTORS OF APELLA RESOURCES INC.

"Patrick D. O'Brien"
Patrick D. O'Brien - Chairman

S.E.C. Exemption 12(g)3-2(b) File No. 82-3822, Standard & Poors Listed, Dun & Bradstreet Listed

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