Apella Resources Inc.: SGS-Geostat Delivers New Resource Calculation Iron-T Vanadium-Iron-Titanium Project

Apella Resources Inc. (TSX VENTURE:APA)(OTCQX:APAFF)(FRANKFURT:NWN) is pleased
to announce that SGS-Geostat has delivered to Apella its updated NI 43-101
resource estimation update for the Iron-T Vanadium-Iron-Titanium Project in
Quebec, Canada. The Iron-T Vanadium-Titanium-Iron property located 18km east of
Matagami in the Province of Quebec, Canada. This latest calculation reports an
estimated increase of 24% in the quantity of the inferred resource over the
previous report dated August 2010. 


The intent of this updated resource estimation report by SGS-Geostat was to
provide a comprehensive review of the 2009-2010 exploration activities. This
latest independent NI 43-101 resource estimate completed by SGS-Geostat is based
on 41 drill holes including 2 revised historical drill holes for a total length
of 5,519 metres (18,107ft).


In SGS-Geostat's opinion, the Iron-T mineral deposit contains enough resources
to justify additional exploration work and development work on the property in
the optic of a bulk sampling, preliminary economic assessment study and
prefeasibility study.


Currently, all of the resources reported on the Iron-T are classified in the
inferred category. Many of the sections so far contain only one drill hole
giving limited information on the deposit. Even though two separate small
interpreted solids were intersected by at least two drill holes (trenches)
within a radius of 50m, there is not enough information yet validating the grade
and lateral continuity of the solids. For this reason holes MA-10-35, MA-10-36,
MA-11-37 drilled on the western extension of the Main Zone over a distance of
1.8 km have not been considered in the resource calculations, despite their
excellent mineralized intersections.


The classified inferred resources reported in this latest SGS-Geostat report are
compliant with standards as outlined in the National Instrument 43-101. These
resources were calculated using a minimum cut-off grade of 0.48% V2O5Eq and now
estimated at 14,376,000 tonnes of the inferred category at 0.42% V2O5. This
represents a 24% increase in the classified inferred resource of 11,600,000
tonnes in SGS-Geostat's last report. 


The mineral resources estimated to date on the Iron-T Project by SGS-Geostat are
presented in the table below.




----------------------------------------------------------------------------
Current Inferred Mineral Resource Estimate - Iron-T Project                 
----------------------------------------------------------------------------
     V2O5Eq                                                                 
    Cuttoff                                                                 
        (%)    Tonnage    Volume Fe (%) Fe2O3(%) TiO2(%) V2O5(%) V2O5Eq (Eq)
----------------------------------------------------------------------------
       0.48 14,376,000 6,331,000  27.30    39.04    6.55    0.42        0.77
----------------------------------------------------------------------------



Considering the fact that the Iron-T mineral deposit holds a "non-negligible"
portion of TiO2 and Iron ore, SGS considers the 0.48% V2O5Eq cut-off grade as a
conservative cut-off and is the one recommended. This cut-off corresponds
roughly to a combined cut-off of 0.26% V2O5 and 3.78% TiO2. If the combined
cut-off would have been used, a small decrease in tonnage would have been
observed in comparison to the V2O5Eq cut-off.


The V2O5, Fe and TiO2 prices used in the SGS-Geostat report were provided by Dr.
C. Derosier of Apella as of June 21th, 2010 the same as utilized in the August
2010 report. Those prices were obtained from Metalprices.com, a website
specializing in the current metal prices in the World. SGS-Geostat did not do an
extensive research of the dollar value of vanadium, TiO2 and Fe concentrates.




V2O5EQ = V2O5 + 0.011(i)Fe + 0.006(ii)TiO2 in %                             
(i)$182/tonne metric                                                        
(ii)$90/tonne metric                                                        
V2O5: 14$/kg                                                                
The prices were provided by Dr. C. Derosier of Apella.                      



It should be noted that this latest resource estimation by SGS-Geostat does not
include the 19 hole, 2,893m (9,491ft) Phase 4 diamond drill program just
finished by Apella on this project. This latest 19 hole drill program included
11 in-fill drill holes in the main Genesis Deposit being delineated on the
Iron-T Vanadium-Iron-Titanium Project.


As part of the independent verification program, SGS-Geostat validated Apella's
exploration methodology including core logging, sampling, analytical procedures,
and QAQC protocols and procedures.


Although still considered as preliminary and based on the optic of an open pit
operation, the mineral processing results of 2009 and 2010 showed interestingly
good recovery results. Tests included limited Davis tube tests, density tests,
Satmagan tests and a mineralogy study. The 2011 Davis tube Vanadium recovery was
high; averaging 88.7% recovery with 90% of samples having a recovery of greater
than 79.6%. This means that the Iron-T mineralization has an excellent recovery
rate. Specific Gravity (SG) testing gave results from 2.93 to 4.37 and a mean
average SG of 3.68. The specific gravity is a function of the concentration and
weight of the mineralization. The Satmagan (content magnetite (Fe3O4)) averaged
at 33.8%, and ranged from 13.7% to 48.8%. Results of the Satmagan shows that
magnetic iron oxide content varies from disseminated to massive layers. The
average Ti and V contents were 5.51% and 0.34%, respectively. These results show
that Titanium represents a non-negligible element and that the vanadium content
is similar to the Lac Dore deposit. The concentrates from the mineralogy tests
contained between 80.9% and 96.5% combined Fe-Oxides, Ti-Magnetite and Ilmenite;
which means that the concentration method is adequate and the recovery obtained
is excellent. For most of the samples analyzed, the major carrier of Vanadium is
the Fe-Oxides (ranging from 66.2% and 91.2%) with Ti-Magnetite being a minor
carrier, at between 7.19% and 32.0%; which means that layers with higher Ti
values will return lower vanadium values. Between 64.3% and 90.9% of the Oxides
were free, and between 6.46% and 20.7% of the Oxides were liberated. This
signifies that oxides are easily recoverable by physical process. The locked
Oxides were mostly associated with non-opaque gangue (between 2.22% and 14.9%),
with a much smaller proportion associated with sulphides (between 0.00% and
1.92%). This is excellent for Apella because the Iron-T deposit has a very low
sulphide content which permits it to be used by the steel industry. 


The mineral resource block model has been interpolated from 1.25 m long
analytical composite data constrained within a 3D wireframe envelop of the
mineralized geological model defined from drill hole mineralized intercepts. The
mineral resource model is defined by blocks 5 m (east-west) by 5 m (north-south)
by 5 m (elevation) in size, located below the bedrock/overburden interface, and
covers an area located within sections 324,500 m E and 325,800 m E on the
Property to a maximum depth of 220m below surface. The length of the drill
tested zone comprised between these two coordinates, is 1,300m. The
interpolation of the block grade was performed by inverse distance squared
method in multiple passes using anisotropic search ellipsoids increasing is size
from one pass to another. This is an industry standard. The mineral resources
calculated by SGS and representing a small portion of the property correspond to
the estimated blocks located below the bedrock/overburden interface. A bulk
density (SG) of 3.5t/m(3) was used to calculate the final tonnage of the mineral
resources based on the available data. Each deposit is unique and has its own
specific gravity depending of the mineral composition and concentration.


Following a bias observed in 2010 by SGS-Geostat, corresponding in a 15% average
grade difference between original and duplicate V2O5 (Vanadium Oxide) assay
results, reported by various labs utilized SGS-Geostat initiated a 2011
independent sampling program involving the assay of 81 samples submitted to two
other independent certified laboratories. The 2011 independent sampling program
was similar to the 2010 independent sampling program. The V2O5 (V) average grade
of original assays gave results from 12.9% to 18.7% higher than the independent
samples (SGS Lakefield and Actlabs). SGS found that the ALS-Chemex laboratory
tends to be the one with the overall highest average iron, TiO2 and V2O5 grades.
The SGS Lakefield laboratory and Actlabs are respectively ranked second and
third. Since the majority if not all of the original samples were sent to the
ALS-Chemex lab, SGS strongly recommends continuing and implementing QAQC
procedures involving certified materials (standards) from the industry to be
sent to the ALS-Chemex lab to check any calibration errors. Apella is
implementing a QAQC program involving the assay of certified materials
(standards) in order to verify the calibration of the laboratory and two other
laboratories. According to the findings of this QAQC program, these results will
help determine a correction factor on the assay results.


SGS made the following recommendations: "The project needs additional definition
including detailed cartography and diamond drilling before being ready for
mining. The additional drilling would increase significantly the quality of the
geological information as well as the update of the overall resources and the
geological model. With addition of the drilling data, the update of the
resources could include the measured and indicated resources categories. SGS
recommends infill drilling and target drilling."


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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