🕐06.06.11 - 11:54 Uhr

APELLA RESOURCES INC NEWS - DIAMOND DRILLING COMPLETED IRON-T VANADIUM-IRON-TITANIUM



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Diamond Drilling Completed Iron-T Vanadium-Iron-Titanium ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Vancouver, BC - June 2, 2011 Apella Resources Inc.

(TSX.V Exchange: "APA"), (U.S.A.

OTCQX Exchange: "APAFF"), and (Frankfurt Exchange: "NWN") is pleased to announce that the Company has successfully completed the first round of its Phase 4 exploration drilling on its Iron-T Vanadium-Iron-Titanium project near Matagami, Quebec.

The program encompassed 19 diamond drill holes total 2,893m (9,491 feet) in length and is encouraged by the continued intersections of favourable mineralization. Eleven of these most recent nineteen holes, totaling 1,672m (5,485ft), are considered development drill holes.

They have been located on four transversal sections across the main mineralized zone already outlined by previous drilling.

These new infill holes, drilled at 50m (164.04ft) intervals now connect several peripheral zones of mineralization, to Apellas main Genesis Deposit on the Iron-T.

Apellas previous 2010 drill holes (MA-10-23 and MA-11-27) into these peripheral zones returned significant grades and intersects of mineralization.

These four sections are covering the eastern extension of the main Genesis Deposit.
* Drill hole MA-11-40 bored at 50m (164.04ft) south of 2010 hole MA-10-27, was stopped at 81m (265.8ft) after the casing failed to intersect the bedrock and remained stuck in the hole. * Drill hole MA-11-41 on the same section, intersected 14.80m (48.56ft) of disseminated magnetite.

The core is strongly broken; representing a faulted zone. * Drill hole MA-11-42 intersected 1.5m (4.92ft) from 132.38 (434.3ft) to 133.88m (439.2ft) of massive iron oxides with 50% to 90% magnetite. * Drill hole MA-11-43 was set-up at 50m (164.04ft) south of 2010s hole MA-10-23 on section 325600E.

The previous drilling returned 47.37m (155.41ft) of semi massive to massive iron oxides; followed by 4.80 m (15.75ft) of semi-massive iron oxide.

Drill hole MA-11-43 intersected 2 mineralized zones.

One is 6.90m (22.64ft) thick of disseminated iron oxide and 4.96m (16.27ft) of semi-massive iron oxide. * Drill holes MA-11-44 to MA-11-47 were bored on section 325550E, at 50m (164.04ft) intervals.

Drill hole MA-11-44 intersected 5.65m (18.54ft) of disseminated iron oxide.

Drill hole MA-11-45 and MA-11-46 reached the bedrock after cutting through 57.0m (187.0ft) and 42.0m (137.78ft) of overburden, respectively. These two holes failed to return iron oxide mineralization.

Drill hole MA-11-47 intersected 1.19m (3.90ft) of semi-massive iron oxide (10-25%) and 5.48m (17.98ft) of disseminated iron oxide (10-15%). * Drill hole MA-11-48 was drilled on the section 325600E 50m (164.04ft) south of drill hole MA-11-43.

It intersected 29.15m (95.64ft) of 10 to 40% of iron oxide, from 41.95m (137.63ft) to 71.10m (232.94ft). * Drill hole MA-11-49 bored on section 325650E and intersected four mineralized zones: 1.60m (5.25ft) of semi-massive iron oxide; 10.65m (34.94ft) of semi- to massive iron oxide; 12.21m (40.06ft) of disseminated to semi-massive iron oxide, as well as 10.77m (35.33ft) of disseminated to semi-massive iron oxide (10-20%), respectively. * Drill hole MA-11-56, 150m (492.13ft) in length, was set up on top of a hill coinciding with a strong magnetic anomaly interpreted as the western extension of the Main 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 MA-10-37, the western-most hole drilled by Apella in 2010.

In 2010 drill hole MA-10-37 confirmed the extension of the main deposit in a NWN direction, exactly as anticipated by Apella.

The recent 2011 drill hole MA-11-56 intersected two layers of 10-15% heavily disseminated iron oxides over 38.04m (124.80ft) from 5.17m (16.96ft) to 43.21m (141.77ft), and 10.80m (35.43ft) from 90.20m (295.93ft) to 101.00m (331.36ft), respectively.

It is thought that because the topographic conditions, this hole may have missed the more massive layers which normally are found in the northern part of the magnetic anomalies.

It will be retested in a later round of drilling. * Drill hole MA-11-57 was set up on the eastern end of another mineralized zone referred to as "II Zone", which runs parallel to the Genesis zone, about 50m (164.04ft) north.

This hole also represented part of the current, systematic development drilling, planned for the main Genesis Deposit.

Drill hole MA-11-57 intersected an anorthositic gabbro associated with disseminated iron oxides mineralization (5-7%).

A few massive iron oxides layers ranging from 2cm - 26cm were observed between 17.10m (56.10ft) and 36.70m (120.41ft). Magmatic layering is generally at 65� CA and interlayered with several plurimetric wide gabbroic anorthositic layers.

These layers include well-developed cumulate texture and are associated with heavily disseminated to semi-massive magnetite mineralization locally forming; and plurimillimetric to pluricentimetric masses. * Drill hole MA-11-58 was collared on section 325600E about 50m (164.04ft) north of 2010s drill hole MA-11-23.

This hole returned 25.76m (84.51ft) of disseminated to massive iron oxides. After the exploration of the western extension of the Main Genesis Zone, the drill rig was moved to the most western/south-western part of the property in order to evaluate at depth a 5 km long magnetic axis, which comes off of the main 16.5 km deposit target area.

This area 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 Apellas thrust for defining an economic vanadium-iron-titanium deposit on the Iron-T is ideally along the 16.5 km main zone running SE-NW the company decided to test this off-shoot at this time as well.

Six drill holes totaling 1,143m (3,750ft) in length were drilled into this off-shoot to evaluate the associated magnetic layers.

The drill holes utilized a widely spaced set-up at about 1,000m (3,280ft) intervals along this anomaly.
* Drill hole MA-11-50 intersected a magnetic gabbro injected by numerous porphyric dikes. * Drill hole MA-11-51, 174m (570.87ft) long, intersected 93.58m (307.02ft) of homogeneous heavily disseminated (10-20%) iron oxide mineralization. * Drill hole MA-11-52 was stopped at 147m (482.28ft).

It intersected 55.20m (181.10ft) of homogeneous heavily disseminated (10-15%) iron oxide mineralization. * Drill hole MA-11-53, 150m (492.13ft) long intersected 50.47m (165.58ft) of homogeneous, massive, medium-grained magnetite, melanocratic to mesocratic gabbro with disseminated iron oxides (5-15%). * Drill hole MA-11- 54 intersected three mineralized layers.

The first one is 37.10m (121.72ft) thick (core length) and contains 10-20% of heavily disseminated iron oxides.

The second is 15.41m (50.56ft) thick and returned 5-10% iron oxides.

The third intersection is 74.21m (243.47ft) long with a disseminated (<10%) iron oxides content. * Drill hole MA-11-55 intersected 33.00m (108.27ft) of 5-10% disseminated iron oxides, 11.94m (39.17ft) of heavily disseminated (5-10%) iron oxides and 34.14m (112.0ft) of disseminated iron oxides (7-10%). All drill core samples from this recent drill campaign, as well as blank and standard samples inserted into the batches at random, have now been shipped to the ALS-Chemex laboratory in Val dOr, Quebec for processing.

The results derived from these samples will be reported once received and interpreted by Apellas geological team. 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 Companys website at www.apellaresources.com
ON BEHALF OF THE BOARD OF DIRECTORS OF APELLA RESOURCES INC. "Patrick D.

OBrien" Patrick D.

OBrien, 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." ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Apella slideshow Video of the Iron-T Vanadium Deposit Subscribe to Apellas Video Channel ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ QUICK LINKS Our Website Stock Price Vanadium Price Vanadium Information More About Us Find us on Facebook Follow us on Twitter ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Join Our Mailing List ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ � Apella Resources Inc. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Forward email http://ui.constantcontact.com/sa/fwtf.jsp?llr=qn7hnpcab&m=1102176317872&ea=&a=1105789667858
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