Drill Program Report: Apella Confirms Mineralization Along Entire 22.5 km Strike Length, Iron-T Vanadium-Iron-Titanium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2011) - Apella Resources Inc. (TSX VENTURE:APA)(OTCQX:APAFF)(FRANKFURT:NWN) is pleased to announce the results of 19 diamond drill holes (2,821 metres) of its Phase 4 exploration/development program on its Iron-T Vanadium-Iron-Titanium Project; located 10 km southeast of Matagami, Quebec. The Iron-T continues to deliver positive results.

Eleven of the holes completed in this phase, totaling 1,750 meters, are considered development (infill) drill holes. They were positioned on four transversal sections across the main mineralized zone already outlined by previous drilling. These new infill holes, drilled at 50m intervals, now connect several peripheral zones of mineralization, to Apella's main Genesis deposit on the Iron-T. The peripheral zones of mineralization were not included in SGS's May 19, 2011 NI-43-101 resource estimate, since they were considered disconnected from the main zone. Apella's 2010 drill holes into these peripheral zones returned significant grades and intersects of mineralization.

Three new significant mineralized zones running parallel to the main Genesis zone have now been discovered and tested over three sections. It is anticipated that these new zones will provide mineralized extensions in both the easterly and westerly directions. These three sections plus one additional one cover the eastern extension of the main Genesis deposit. As a result of these three new mineralized zones, the mineralized layers including the Genesis zone now reach a significant width approaching 200 metres. With this infill drilling Apella has met its objective of joining these additional zones to its main Genesis orebody and simultaneously increasing the tonnage significantly as well as permitting it to classify some of the new resources in the measured category.

/T/

Table 1

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Hole No. From m To m Length m V2O5% Fe % Ti % V2O5EQ %

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MA-11-40 93.00 95.50 2.50 0.12 18.46 1.92 0.34

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96.75 101.75 5.00 0.21 21.50 3.10 0.46

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106.16 109.94 3.78 0.29 24.33 3.72 0.58

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This hole is located 50m south of Apella's Hole MA-10-28 which

earlier returned the following:

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91.60 95.00 3.40 0.46 34.93 5.34 0.88

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112.86 127.00 14.40 0.41 31.20 4.98 0.76

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148.17 160.67 12.50 0.36 25.34 3.81 0.66

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MA-11-41 81.45 95.00 14.80 0.14 18.44 1.94 0.35

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121.00 136.50 15.50 0.09 14.52 1.22 0.26

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145.00 148.00 3.00 0.11 16.37 1.44 0.30

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MA-11-42 107.50 113.75 6.25 0.20 21.93 2.59 0.46

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116.25 118.75 2.50 0.17 19.77 2.22 0.40

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121.25 122.50 1.50 0.48 32.02 5.95 0.87

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131.25 133.88 2.63 0.65 48.64 7.28 1.20

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MA-11-43 17.72 18.47 0.75 0.13 17.92 2.75 0.34

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20.97 26.41 5.44 0.35 33.59 5.61 0.75

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27.31 27.87 0.56 0.21 25.33 3.64 0.51

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30.37 46.00 15.63 0.16 18.48 2.45 0.38

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89.24 91.00 1.76 0.21 18.13 2.90 0.43

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93.50 94.75 1.25 0.13 15.77 1.90 0.31

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97.25 106.50 9.25 0.19 22.81 2.80 0.46

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110.33 111.92 1.59 0.16 25.38 2.20 0.45

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113.27 127.02 13.75 0.21 23.64 2.94 0.48

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134.83 137.13 2.50 0.23 22.34 3.43 0.50

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138.38 144.53 6.25 0.21 22.64 3.51 0.48

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This hole was set-up 50m south of Apella hole MA-10-23 which

earlier returned the following:

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47.18 92.05 44.87 0.57 44.63 8.39 1.11

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105.50 109.30 4.80 0.31 24.02 3.67 0.59

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MA-11-44 23.26 34.61 11.35 0.11 20.79 2.24 0.36

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25.11 56.51 11.40 0.21 22.12 3.71 0.48

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57.76 69.35 11.59 0.39 40.40 6.56 0.88

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74.23 83.06 8.83 0.46 43.83 8.27 0.99

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84.08 144.45 59.84 0.39 36.41 6.47 0.83

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147.05 50.80 3.75 0.13 17.58 1.69 0.33

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MA-11-45 71.46 72.46 1.00 0.14 20.06 2.53 0.38

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This hole intersected a strong and thick NE trending fault

zone.

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MA-11-46 69.05 74.05 5.00 0.21 24.63 3.07 0.49

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75.30 77.80 2.50 0.16 16.83 1.92 0.35

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135.50 137.00 1.50 0.21 20.72 2.50 0.45

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141.50 144.50 3.00 0.11 16.02 1.29 0.29

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146.00 147.50 1.50 0.25 25.37 3.27 0.55

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MA-11-47 58.71 59.80 1.19 0.29 26.37 3.52 0.60

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60.78 66.26 5.48 0.23 23.27 2.93 0.51

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78.36 79.61 1.25 0.13 16.93 1.61 0.33

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106.00 109.91 3.91 0.17 19.46 2.22 0.40

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110.81 112.00 1.19 0.11 25.57 1.22 0.40

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MA-11-48 37.20 38.55 1.25 0.14 16.52 2.67 0.34

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39.80 55.51 15.71 0.16 20.52 2.28 0.40

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68.05 71.55 3.50 0.28 25.15 4.04 0.58

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74.05 75.30 1.25 0.13 16.49 2.09 0.32

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76.55 78.95 2.40 0.28 24.79 4.04 0.58

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MA-11-49 30.75 33.00 2.25 0.11 15.38 2.25 0.29

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39.60 41.20 1.60 0.43 36.31 6.69 0.87

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44.97 56.87 13.15 0.45 42.20 7.73 0.96

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89.70 103.16 13.46 0.23 23.05 3.12 0.51

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108.16 110.66 2.50 0.15 18.62 2.25 0.37

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124.95 140.72 15.77 0.22 23.11 3.07 0.50

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141.97 144.47 2.50 0.12 16.74 2.14 0.32

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145.72 150.00 4.28 0.17 19.65 2.75 0.40

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MA-11-58 21.59 45.34 28.72 0.14 19.24 2.63 0.37

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47.84 55.30 7.46 0.12 17.36 2.27 0.33

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84.28 93.73 9.45 0.22 25.63 3.96 0.52

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115.05 150.25 35.20 0.35 35.20 5.72 0.78

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/T/

Note: Since the Iron-T deposit holds a non-negligible portion of Magnetite and Titanium Dioxide. It is consequently important to determine the dollar value per tonne of the oxide contained in the mineralized zones as well as the cut-off grade. This cut-off grade is expressed as a percentage.

In order to be consistent with the previous results released since 2010, Apella used the same metal prices for the Vanadium, Titanium and Iron as of June 14, 2010. Those prices are as follows:

Fe = 182 US$ per metric tonne (0.182 US$/kg);

TiO2 = 90 US$ per metric tonne (0.09 US$/kg);

V2O5 = 14,000.00 US$ per metric tonne (14 US$/kg).

The recovery of the oxides is also taken in account: Fe= 65%, TiO2= 65% and V2O5 = 75%, which give the following unitary prices: Fe= 118 US$/tonne, TiO2 = 59 US$/tonne and V2O5 = 105 US$/tonne.

Applying a factor equal to 1 to V2O5, factors of Fe and TiO2 are respectively 0.011 and 0.006.

The V2O5EQ is calculated using the following formula:

V2O5EQ = V2O5 + 0.011 x Fe+0.006 x TiO2 = %

The Iron-T cut-off was estimated by SGS Geostat to 0.48% V2O5EQ.

All values above this percentage are considered in the calculation of the resources.

One hole of the current Phase 4 drill holes (MA-11-57) has been set-up on the eastern end of another mineralized zone referred to as "II Zone" which runs parallel to the Genesis zone, about 50m north. This hole also represents part of the current, systematic development drilling, planned for the main Genesis zone. It forms part of the overall objective of increasing tonnage quickly and substantially, and bringing the Genesis deposit to a measured and indicated status as soon as possible.

Results of this hole are as follows:

/T/

Table 2

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Hole No. From m To m Length m V2O5% Fe % Ti % V2O5EQ %

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MA-11-57 10.21 18.96 8.75 0.21 24.26 3.96 0.50

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21.46 61.70 38.99 0.20 22.27 3.73 0.46

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68.16 84.42 16.26 0.17 19.35 3.00 0.40

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86.65 116.65 28.75 0.16 18.89 3.10 0.38

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/T/

Two of the four mineralized layers intersected in Hole MA-11-57 are low grade but since this II Zone is close to Genesis, they could be considered as potential ore if this mineralized zone is systematically drill tested.

Another of the current drill holes (MA-11-56), 150m in length, was set-up on top of a hill coinciding with a strong magnetic anomaly interpreted as the western extension of the Genesis Deposit. On the slopes of this hill, several outcrops discovered in 2010 by Apella, show disseminated oxides. This hole is located about 1 km west of the western most hole (MA-10-37) drilled by Apella in 2010, a hole which confirmed the extension of the main deposit in a NWN direction, exactly as anticipated by Apella. Because of the steep topography and the presence of frozen ground, it has not been possible to set- up the drill rig on the northern edge of the magnetic anomaly. Apella has collared the hole at about 25m south of the recommended location, on top of the hill which coincide to the highest magnetic readings.

Results of this drill hole are as follows:

/T/

Table 3

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Hole No. From m To m Length m V2O5% Fe % Ti % V2O5EQ %

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MA-11-56 5.17 35.17 30.00 0.15 22.20 3.85 0.41

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86.45 102.70 16.25 0.14 21.80 2.99 0.40

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/T/

This mineralization needs to be tested at depth by a new hole to be set-up at about 75 m north of MA-11-56, at the bottom of the hill.

All current drill holes bored to date have shown alternations of the gabbro with disseminated to massive layers of magnetic oxides, which Apella finds very encouraging. An interesting fact is the observed disseminated oxide layers are much thicker than the semi-massive to massive layers. This indicates that the mineralization should provide significant thickness enhancing compatibility for open pit mining.

The drilling of the western extension of the Iron-T Project was aimed to evaluate at depth a 5 km long magnetic axis which was confirmed by the 2010 surface magnetic survey. This magnetic axis is oriented NW exactly as also detected in early airborne magnetic surveys flown between 1948 and 2007. Although these significant magnetic signatures were clearly visible, this magnetic axis has never been drill tested or even mapped until now. Six drill holes totaling 921m in length were bored for the evaluation of the associated magnetic layers. It is expected that these layers may add a significant resource of Vanadium-Iron-Titanium mineralization to the overall Iron-T Project. Achieving additional tonnage outside the main deposit in the Genesis Zone will also demonstrate the consistency of the mineralization at depth along the 22.5km strike length of the Iron-T Project. Drill holes have been set-up at about 1000 m intervals along this extension.

Results of this exploration program are as follows:

/T/

Table 4

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Hole No. From m To m Length m V2O5% Fe % Ti % V2O5EQ %

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MA-11-50 Insignificant vanadium values

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MA-11-51 15.00 50.19 35.19 0.31 30.36 5.97 0.68

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53.84 111.13 57.29 0.45 33.62 6.15 0.85

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111.13 119.62 8.49 0.17 16.23 2.68 0.37

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124.05 146.38 22.33 0.29 22.77 3.28 0.56

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155.36 170.64 15.28 0.30 23.00 3.15 0.57

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MA-11-52 5.28 60.48 55.20 0.43 35.08 6.64 0.86

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61.98 111.75 24.00 0.31 22.80 3.45 0.58

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MA-11-53 28.30 71.80 43.50 0.39 32.34 6.15 0.78

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74.80 132.25 57.45 0.34 24.81 3.77 0.64

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MA-11-54 9.48 51.61 42.13 0.40 31.82 5.84 0.79

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106.00 113.50 7.50 0.33 24.98 3.70 0.63

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117.00 127.50 10.50 0.33 22.99 3.39 0.61

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MA-11-55 33.00 51.00 18.00 0.27 30.42 6.07 0.64

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62.00 82.00 21.50 0.40 28.37 4.79 0.74

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98.50 104.50 6.00 0.49 32.46 5.45 0.87

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/T/

The drilling of this western extension of the Iron-T Project has confirmed the presence of V-Fe-Ti mineralization has delineated by the 2010 surface magnetic survey. However, this mineralization presents a significant difference with the main Genesis zone. The V-Fe-Ti described as homogeneous heavily disseminated (10-15%) iron oxides mineralization. The V2O5EQ percentage is homogeneous and surprisingly slightly higher than the zones containing semi to massive layers.

Positive results of this exploration program warrant a systematic drilling program at a 50m interval with a minimum of two drill holes per section.

This press release has been reviewed by Dr. Christian Derosier, P. Geo., Consulting Geologist and Qualified Person for the Iron-T project under National Instrument 43-101.

Additional information is contained on the Company's website at www.apellaresources.com.

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

Patrick D. O'Brien, ICD.D - Chairman

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

"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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