Apella Resources Inc.

Apella Resources Inc. (TSX.V: APA); (Frankfurt Symbol: NWN) and its Board of Directors are pleased to announce that Cascadia Resources Inc. (formerly Cascadia International Resources Inc.) has accepted the conditions under which Cascadia has agreed to discontinue its Appeals regarding the Raglan Arbitration Awards made in favour of Apella Resources Inc. (formerly Novawest Resources Inc.).  Apella proposed to Cascadia that of the funds awarded in 2006 to Apella by the Arbitrator, and subsequently paid into court by Cascadia, Apella would set aside $150,000 plus interest in favour of Cascadia. In lieu, Apella retains the rights and legal ownership to all Raglan assets and equipment in Apella’s possession. Apella will also discontinue any courses of action it was taking to block Cascadia’s Appeals. Since the conclusion of this Agreement between the two parties, Apella has now cleared all of the principal funds paid into the court by Cascadia plus accrued interest of $29,548.64. Apella has dispersed the funds accordingly; with Apella itself banking proceeds of $286,100.69.

It is important to note that as a result of this Agreement, all of the Arbitrator’s Awards in favour of Apella (previously announced), including a $10 award to Cascadia, shall stand and remain as awarded. This now concludes all matters associated with the Raglan Arbitration that Apella has, since 2005, successfully initiated and litigated against Cascadia Resources Inc.

Apella Resources Inc. is pleased that this matter is now history and that the Company can now get on with the primary business of developing its significant mineral interests in the Canadian provinces of Quebec and Ontario.

Further to the news releases disseminated by Apella resources Inc. may 22, 2009 Apella is pleased to advise that the Company has no further legal matters outstanding.

Apella invites the public to visit its website at http://www.apellaresources.com or e-mail us at apella@apellaresources.com 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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