Location

Matagami, Québec, Canada

The name Matagami is of Cree origin and signifies "meeting of the waters". The 100% Apella owned Iron-T Project is located conveniently adjacent to the Matagami Mining Camp, which is a world-class mining district, with 18 known VMS deposits, including 10 past producers of varying sizes. Also included is the giant Matagami Lake Deposit (25.64 million tonnes of 8.2% Zn, 0.56% Cu, 20.91 g/t Ag and 0.41 g/t Au) discovered in 1957 and mined from 1963 to 1988. The area boasts historical production of 8,600 million pounds of Zn and 853 million pounds of Cu. The area has been historically overlooked by companies looking for Vanadium Rich Iron Ore because the correct model was never applied. Apella has already compiled all available exploration data and claim ownership pertaining to the Bell-River Complex. Under the auspices of the renowned Vanadium Mineralogist Mehmet Taner, Roger Moar and Christian Derosier, the Company is confident it will prove the Bell River Complex  model to be correct. The  model was unutilized by the likes of Noranda and now Apella has coupled the model with the most current exploration technology to successfully drill the complex to depth.

Mr. Patrick D. O’Brien, ICD.D, Chairman states “We have now proven that the Iron-T hosts mineralization in quantity and quality. Apella’s geological team has advised management that it plans to produce and submit to management an updated NI 43-101 compliant report on the Iron-T within the next couple of weeks and at that time determine and provide management with an initial inferred resource figure for the Iron-T, based on the 24 holes of diamond drilling to date.” See Apella News Release: April 6, 2010

High Grade Trench Samples At Iron-T VAnadium-Iron-Titanium Project

The Matagami area is well serviced by established infrastructure, including the town of Matagami, power, a permitted tailings facility, railway and airport. Additionally there is a well developed road and highway network. Xstrata Zinc is currently producing from its low-cost and wholly-owned Perseverance Deposit, which feeds its refurbished 2,600 t/day Matagami mill complex. Any future development by Apella will benefit established infrastructure and facilities. Xstrata currently ships zinc concentrates produced at Matagami and refines it at the Noranda Income Fund zinc refinery in Valleyfield Québec. Copper concentrates are smelted at Xstrata’s Horne smelter in Rouyn-Noranda and refined at Xstrata’s Canadian Copper Refinery in Montreal.

Dr. Christian Derosier, P. Geo, Consulting Geologist, and Qualified Person for the Iron-T project states “The excellent drilling results obtained in 2009 and 2010 encourages the geologists to prepare an estimation to date of mineral resources for the Iron T project, which will be compliant with NI 43-101.” See Apella News Release: April 6, 2010.

The Company’s strategy is to explore for and discover Vanadium-Iron-Titanium rich magnetite deposits in the Matagami Camp and to leverage the general infrastructure to facilitate building processing facilities within a known and well-established cost structure for developing Vanadium-Iron-Titanium rich magnetite deposits. Apella’s exploration objective is to investigate multiple stratigraphic horizons with potential for VMS mineralization, including the prolific Bell River complex horizon throughout the Matagami Camp. To date, Apella has already discovered new mineralization at depth with two successful drill programs. The Company has also completed the next phase of geophysics and line cutting, in preparation for phase three diamond drilling. Within the extensive 10.3km project area there are numerous exploration targets with excellent potential for additional discoveries.

PHOTO CREDITS: Matagami, Québec*: http://www.flickr.com/photos/greying_geezer/908983141/