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Apella Expands With New Ontario Vanadium-Iron-Titanium Discovery
Date : 10/24/2011 @ 12:40PM
Source : MarketWire

Apella Expands With New Ontario Vanadium-Iron-Titanium Discovery

Apella Resources Inc. (TSX VENTURE:APA)(OTCQX:APAFF)(FRANKFURT:NWN), is pleased to report the acquisition of a strategic new Canadian Vanadium-Iron-Titanium discovery situated near Timmins, Ontario. Apella's geology team have assessed the merits of the mineralization and setting of the Game Changer Project for its potential to mirror the already established merits of Apella's 100% owned Lac Dore, Lac Dore North and Iron-T deposits. Upon conclusion of the assessment, Dr. Derosier, P.Geo delivered his favourable conclusions to management and recommended the acquisition.

Apella's new Game-Changer Vanadium-Iron-Titanium Project was discovered by the prospecting team of R. Laviolette and G. Dumoulin while prospecting the Timmins region in May of 2011. The Game Changer is an assemblage of mineral claims which provide two distinct mineralized zones, each presenting excellent potential to host economic Vanadium-Iron-Titanium deposits. The two zones will be designated as the West Structure and East Structure for future reference.

The West Structure covers a 2 km long E-W oriented gabbro sill, which can be clearly delineated by the most recent airborne magnetic and electromagnetic survey carried out by the Ontario Geological Survey. The gabbro sill produces a very strong magnetic anomaly which is 300-400 m wide. In the field, the gabbro sill appears as a succession of elongated rounded hills with numerous outcrops of mineralization.

The Eastern Structure covers a NW-SE oriented magnetic anomaly which also corresponds to a 3 km long gabbro sill which is very similar to the sill of the Western Structure. Both are thought to be originating from the same magmatic event and they are now separated by one or several tectonic events.

The mineralization observed on-site during Dr. Derosier's due diligence procedure and subsequent study is very similar to the newly discovered Northwestern Zone situated on Apella's Iron-T Vanadium-Iron-Titanium Project just across the Quebec-Ontario border. Apella's Iron-T Project is part of the Bell River Complex which a large, layered intrusion of Archean age in Quebec's well-established Matagami mining camp. The Bell River Complex has been divided into three main zones: 1) the Basal Anorthosite Zone, 2) a layered Gabbro Zone, and 3) a zone consisting of apophyse and subsidiary intrusions (Granophyre/ Border Zone). On the Game Changer Project the basal anorthosite as well as the Border Zone have not yet been observed but could well exist.

The layered gabbro zone was observed and sampled during the due diligence carried out. This zone consisted of layers of disseminated to semi massive Fe-Ti V oxide rich gabbro and leucogabbro; as well as minor anorthosite and pyroxenite altered in amphibolite. Vanadium mineralization of the Egan Complex occurs within the Fe-Ti oxide rich horizons in the layered ferrogabbro zone of the upper part of the Complex. This horizon is well defined in the aeromagnetic survey maps by its high magnetic susceptibility.

Twelve grab samples were taken at different locations along the gabbro sill, by the prospector. Dr. C. Derosier, P.Geo and Apella's project QP took a further five grab samples. Two of Dr. Derosier's samples were taken on the same occurrences as the prospector's first samples, and three were taken at different locations. Results of the grab samples are listed as follows:

Prospector Grab Samples
---------------------------------------------------------------------------
Sample Number Fe2O3 % TiO2 V2O5 V2O5Eq
---------------------------------------------------------------------------
RL-01 28.22 % 3.91 % 0.34 % 0.56 %
---------------------------------------------------------------------------
RL-02 38.11 % 6.45 % 0.51 % 0.81 %
---------------------------------------------------------------------------
RL-03 20.09 % 2.26 % 0.18 % 0.33 %
---------------------------------------------------------------------------
RL-06 21.74 % 2.53 % 0.29 % 0.46 %
---------------------------------------------------------------------------
RL-07 30.93 % 4.73 % 0.49 % 0.51 %
---------------------------------------------------------------------------
RL-09 23.69 % 2.96 % 0.25 % 0.44 %
---------------------------------------------------------------------------
RL-10 49.79 % 8.68 % 0.76 % 1.15 %
---------------------------------------------------------------------------
RL-11 41.02 % 6.33 % 0.05 % 0.37 %
---------------------------------------------------------------------------
RL-12 22.74 % 2.80 % 0.03 % 0.21 %
---------------------------------------------------------------------------
RL-13 38.86 % 6.17 % 0.02 % 0.32 %
---------------------------------------------------------------------------
RL-14 21.55 % 2.38 % 0.02 % 0.19 %
---------------------------------------------------------------------------
RL-15 22.79 % 2.45 % 0.02 % 0.20 %
---------------------------------------------------------------------------

Samples above, taken from Apella's new Game Changer Project were assayed by the XRF method at Activation Laboratories Ltd., located in Timmins, Ontario.

Dr. C. Derosier, P.Geo, QP Due Diligence Samples
---------------------------------------------------------------------------
Sample Number Fe2O3% TiO2% V2O5% V2O5Eq %
---------------------------------------------------------------------------
171290 TBA TBA 0.27 % 0.48 %
---------------------------------------------------------------------------
171291 TBA TBA 0.39 % 0.70 %
---------------------------------------------------------------------------
171292 TBA TBA 0.20 % 0.36 %
---------------------------------------------------------------------------
171293 TBA TBA 0.30 % 0.54 %
---------------------------------------------------------------------------
171294 TBA TBA 0.15 % 0.27 %
---------------------------------------------------------------------------

Results for the other oxides ("TBA") have not been yet received and will be factored in at a later date, once available. Apella's samples are assayed by ALS-Chemex Ltd. in North Vancouver using the XRF method and ICP method for the other elements.

Apella's Iron-T deposit and this new Egan Complex discovery similarly hold a non-negligible portion of Magnetite and Titanium di-oxides. 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.

Note: In order to be consistent with the previous results released since 2010 for its Iron-T Project, 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$/kg);
-- V2O5 = 14,000 US$ 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 + 0.011xFe+0.006xTiO2 = %

The Iron-T cut-off was estimated by SGS Geostat to 0.48% V2O5Eq which corresponds to a mining and milling cost totaling US$ 50.00. Consequently, all values above 0.48% V2O5Eq are considered as economic intersections or values.

Although the results are not complete, we already can see that the two grab samplings return almost the same V2O5 values, especially where twin samples were taken. Assays look very similar to those obtained by Apella on its 100% owned Iron-T Project during the last drilling program and more particularly on its newly discovered NW-SE Zone.

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.

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."

Contacts:

Apella Resources Inc.

W. Adrian Bakker

Vice President of Corporate Communications

604-683-8990 or Toll Free: 1-800-663-8990

604-683-8903 (FAX)

apella@apellaresources.com

www.apellaresources.com

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

Table 1
--------------------------------------------------------------
Hole No. From m To m Length m V2O5% Fe % Ti % V2O5EQ %
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-40 93.00 95.50 2.50 0.12 18.46 1.92 0.34
--------------------------------------------------------------
96.75 101.75 5.00 0.21 21.50 3.10 0.46
--------------------------------------------------------------
106.16 109.94 3.78 0.29 24.33 3.72 0.58
--------------------------------------------------------------
This hole is located 50m south of Apella's Hole MA-10-28 which
earlier returned the following:
--------------------------------------------------------------
91.60 95.00 3.40 0.46 34.93 5.34 0.88
--------------------------------------------------------------
112.86 127.00 14.40 0.41 31.20 4.98 0.76
--------------------------------------------------------------
148.17 160.67 12.50 0.36 25.34 3.81 0.66
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-41 81.45 95.00 14.80 0.14 18.44 1.94 0.35
--------------------------------------------------------------
121.00 136.50 15.50 0.09 14.52 1.22 0.26
--------------------------------------------------------------
145.00 148.00 3.00 0.11 16.37 1.44 0.30
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-42 107.50 113.75 6.25 0.20 21.93 2.59 0.46
--------------------------------------------------------------
116.25 118.75 2.50 0.17 19.77 2.22 0.40
--------------------------------------------------------------
121.25 122.50 1.50 0.48 32.02 5.95 0.87
--------------------------------------------------------------
131.25 133.88 2.63 0.65 48.64 7.28 1.20
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-43 17.72 18.47 0.75 0.13 17.92 2.75 0.34
--------------------------------------------------------------
20.97 26.41 5.44 0.35 33.59 5.61 0.75
--------------------------------------------------------------
27.31 27.87 0.56 0.21 25.33 3.64 0.51
--------------------------------------------------------------
30.37 46.00 15.63 0.16 18.48 2.45 0.38
--------------------------------------------------------------
89.24 91.00 1.76 0.21 18.13 2.90 0.43
--------------------------------------------------------------
93.50 94.75 1.25 0.13 15.77 1.90 0.31
--------------------------------------------------------------
97.25 106.50 9.25 0.19 22.81 2.80 0.46
--------------------------------------------------------------
110.33 111.92 1.59 0.16 25.38 2.20 0.45
--------------------------------------------------------------
113.27 127.02 13.75 0.21 23.64 2.94 0.48
--------------------------------------------------------------
134.83 137.13 2.50 0.23 22.34 3.43 0.50
--------------------------------------------------------------
138.38 144.53 6.25 0.21 22.64 3.51 0.48
--------------------------------------------------------------
This hole was set-up 50m south of Apella hole MA-10-23 which
earlier returned the following:
--------------------------------------------------------------
47.18 92.05 44.87 0.57 44.63 8.39 1.11
--------------------------------------------------------------
105.50 109.30 4.80 0.31 24.02 3.67 0.59
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-44 23.26 34.61 11.35 0.11 20.79 2.24 0.36
--------------------------------------------------------------
25.11 56.51 11.40 0.21 22.12 3.71 0.48
--------------------------------------------------------------
57.76 69.35 11.59 0.39 40.40 6.56 0.88
--------------------------------------------------------------
74.23 83.06 8.83 0.46 43.83 8.27 0.99
--------------------------------------------------------------
84.08 144.45 59.84 0.39 36.41 6.47 0.83
--------------------------------------------------------------
147.05 50.80 3.75 0.13 17.58 1.69 0.33
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-45 71.46 72.46 1.00 0.14 20.06 2.53 0.38
--------------------------------------------------------------
This hole intersected a strong and thick NE trending fault
zone.
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-46 69.05 74.05 5.00 0.21 24.63 3.07 0.49
--------------------------------------------------------------
75.30 77.80 2.50 0.16 16.83 1.92 0.35
--------------------------------------------------------------
135.50 137.00 1.50 0.21 20.72 2.50 0.45
--------------------------------------------------------------
141.50 144.50 3.00 0.11 16.02 1.29 0.29
--------------------------------------------------------------
146.00 147.50 1.50 0.25 25.37 3.27 0.55
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-47 58.71 59.80 1.19 0.29 26.37 3.52 0.60
--------------------------------------------------------------
60.78 66.26 5.48 0.23 23.27 2.93 0.51
--------------------------------------------------------------
78.36 79.61 1.25 0.13 16.93 1.61 0.33
--------------------------------------------------------------
106.00 109.91 3.91 0.17 19.46 2.22 0.40
--------------------------------------------------------------
110.81 112.00 1.19 0.11 25.57 1.22 0.40
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-48 37.20 38.55 1.25 0.14 16.52 2.67 0.34
--------------------------------------------------------------
39.80 55.51 15.71 0.16 20.52 2.28 0.40
--------------------------------------------------------------
68.05 71.55 3.50 0.28 25.15 4.04 0.58
--------------------------------------------------------------
74.05 75.30 1.25 0.13 16.49 2.09 0.32
--------------------------------------------------------------
76.55 78.95 2.40 0.28 24.79 4.04 0.58
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-49 30.75 33.00 2.25 0.11 15.38 2.25 0.29
--------------------------------------------------------------
39.60 41.20 1.60 0.43 36.31 6.69 0.87
--------------------------------------------------------------
44.97 56.87 13.15 0.45 42.20 7.73 0.96
--------------------------------------------------------------
89.70 103.16 13.46 0.23 23.05 3.12 0.51
--------------------------------------------------------------
108.16 110.66 2.50 0.15 18.62 2.25 0.37
--------------------------------------------------------------
124.95 140.72 15.77 0.22 23.11 3.07 0.50
--------------------------------------------------------------
141.97 144.47 2.50 0.12 16.74 2.14 0.32
--------------------------------------------------------------
145.72 150.00 4.28 0.17 19.65 2.75 0.40
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-58 21.59 45.34 28.72 0.14 19.24 2.63 0.37
--------------------------------------------------------------
47.84 55.30 7.46 0.12 17.36 2.27 0.33
--------------------------------------------------------------
84.28 93.73 9.45 0.22 25.63 3.96 0.52
--------------------------------------------------------------
115.05 150.25 35.20 0.35 35.20 5.72 0.78
--------------------------------------------------------------

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:

Table 2
--------------------------------------------------------------
Hole No. From m To m Length m V2O5% Fe % Ti % V2O5EQ %
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-57 10.21 18.96 8.75 0.21 24.26 3.96 0.50
--------------------------------------------------------------
21.46 61.70 38.99 0.20 22.27 3.73 0.46
--------------------------------------------------------------
68.16 84.42 16.26 0.17 19.35 3.00 0.40
--------------------------------------------------------------
86.65 116.65 28.75 0.16 18.89 3.10 0.38
--------------------------------------------------------------

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:

Table 3
--------------------------------------------------------------
Hole No. From m To m Length m V2O5% Fe % Ti % V2O5EQ %
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-56 5.17 35.17 30.00 0.15 22.20 3.85 0.41
--------------------------------------------------------------
86.45 102.70 16.25 0.14 21.80 2.99 0.40
--------------------------------------------------------------

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:

Table 4
--------------------------------------------------------------
Hole No. From m To m Length m V2O5% Fe % Ti % V2O5EQ %
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-50 Insignificant vanadium values
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-51 15.00 50.19 35.19 0.31 30.36 5.97 0.68
--------------------------------------------------------------
53.84 111.13 57.29 0.45 33.62 6.15 0.85
--------------------------------------------------------------
111.13 119.62 8.49 0.17 16.23 2.68 0.37
--------------------------------------------------------------
124.05 146.38 22.33 0.29 22.77 3.28 0.56
--------------------------------------------------------------
155.36 170.64 15.28 0.30 23.00 3.15 0.57
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-52 5.28 60.48 55.20 0.43 35.08 6.64 0.86
--------------------------------------------------------------
61.98 111.75 24.00 0.31 22.80 3.45 0.58
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-53 28.30 71.80 43.50 0.39 32.34 6.15 0.78
--------------------------------------------------------------
74.80 132.25 57.45 0.34 24.81 3.77 0.64
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-54 9.48 51.61 42.13 0.40 31.82 5.84 0.79
--------------------------------------------------------------
106.00 113.50 7.50 0.33 24.98 3.70 0.63
--------------------------------------------------------------
117.00 127.50 10.50 0.33 22.99 3.39 0.61
--------------------------------------------------------------

--------------------------------------------------------------
MA-11-55 33.00 51.00 18.00 0.27 30.42 6.07 0.64
--------------------------------------------------------------
62.00 82.00 21.50 0.40 28.37 4.79 0.74
--------------------------------------------------------------
98.50 104.50 6.00 0.49 32.46 5.45 0.87
--------------------------------------------------------------

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.

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