Apella Resources Inc.

Four uranium properties combine to make up Apella's 100% owned Frontline Uranium Property Assemblage situated in Quebec, Canada. The Center Property is covered by a network of logging roads which provide access throughout the Center Property.The four properties which currently make up the Frontline Uranium Project are ideally situated in geology very prospective for Uranium and occur over a 200km strike length parallel to the Grenville Front.

Evaluations are continuing on the other three properties making up the Frontline Assemblage.Apella's research recognized a 1977 Geological Survey of Canada ("GSC") lake sediment sample with the area's highest anomalous uranium content occurring in what has became the middle of Apella''s Center Property. Field work has shown the area near the uranium anomaly was overburden covered with nil outcrop exposure. A broader search was undertaken andApella' prospectors discovered numerous uraniferous pegmatite outcrops near the margin of the Boisvert Pluton within 3 to 6 kilometres of the GSC lake sediment uranium anomaly. Further research showed that in 1984, Cameco, the major Canadian uranium producer, staked claims in the immediate area now held by Apella'. Cameco did not release results of their uranium exploration but their claims were maintained for over 22 years in Cameco's name until May of this year. A quick review of the assessment files showed Soquem Inc. had at one point optioned the claims to search for gold mineralization. Approximately 61 holes (10km) have been drilled on the former Cameco claims between 1953 and 1996. Anomalous, (>50ppm eU) uranium contents have been measured in the field by Apella''s prospectors utilizing a SAIC Exploration GR135G spectrometer. High uranium readings are closely associated with magnetite concentrations that exhibit anomalous magnetic susceptibility. Magnetic and radiometric geophysical surveys are therefore considered directly applicable in forthcoming exploration programs.

The company has thus completed a 1400 line kilometer Radiometric/Mag/EM Airborne Survey over its 265 claim, 31,088 acres (12,500 hectares) Centre Uranium Property. Apella''s geological team will couple the data from this survey with its pending assay results and utilize the information to outline its next phase of exploration on the project. Assay results and analysis from 40 samples are currently pending.