Last updated on April 19, 2014 at 13:20 EDT

Aquila Resources Inc.: Metallurgical Results From Back Forty Project

June 24, 2008

TORONTO, ONTARIO–(Marketwire – June 24, 2008) – AQUILA RESOURCES INC. (TSX:AQA)(FRANKFURT:JM4A) (“Aquila” or the “Company”) today announced positive results from an extensive metallurgical testing program for all major mineralized zones at its Back Forty project in the Upper Peninsula of Michigan. The results show the viability of standard beneficiation processes and production of quality concentrates, as well as significant recovery of precious metals. The evaluation work summarized below has been performed by G&T Metallurgical Services of Kamloops BC and the Company’s metallurgical consultant Alfredo Vargas.

Results demonstrate that flotation testwork produces marketable concentrates of copper, zinc, and lead, with associated gold and silver reporting to the copper and lead circuits. Precious metal ores with negligible copper, lead and zinc show excellent gold, and variable silver recovery through a combination of gravity and hydrometallurgical extraction.

Average metal recoveries and concentrate grades for different ore zones are shown below.

——————————————————————– ——– FLOTATION TESTS__________________________________________ Gold W/ Silver W/ ________________________________________________________ tailings__tailings ______________________________________________________________ CN________CN __________________________________________________________Circuit__ Circuit Base metal Ores____________ Zinc Copper Lead Gold Silver______(ii)______(ii) ——————————————————————– ——– Main Zone (i) Recovery %______97____ 84____-__ 51____ 44______ 64________67 ——————————————————————– ——– Concentrate Grade % or g/t____55____ 31____-__113____786 ——————————————————————– ——– Tuff Zone Recovery %__________93______-__ 86__ 63____ 71______ 75________84 ——————————————————————– ——– Concentrate Grade % or g/t____53______-__ 66__ 24__ 1854 ——————————————————————– ——– Pinwheel Zone Recovery %______ -____ 77____-__ 57____ 60______ 74________77 ——————————————————————– ——– Concentrate Grade % or g/t____ -____ 16____-____9____165 ——————————————————————– ——– Stringer Zone Recovery %______97____ 83____-__ 55____ 40______ 73________70 ——————————————————————– ——– Concentrate Grade % or g/t____55____ 29____-__137____708 ——————————————————————– ——– Pinwheel Gossan Recovery %____ -____ 87____-__ 52____ 77______ 90________92 ——————————————————————– ——– Concentrate Grade % or g/t____ -____ 24____-__296__ 2442 ——————————————————————– ——– (i)Composite of East, Hinge, South Limb (ii)Total metal recovery following cyanidation of tailings ——————————————————————– ——– ————————————– CYANIDATION TESTS Gold and silver ores______Gold__Silver ————————————– 90 Gold Zone Recovery %____ 95______31 ————————————– PM Gold Zone Recovery %____ 94______34 ————————————– East Gossan Recovery %______94______57 ————————————–

Flotation tests for base metals (copper, lead and zinc) in the above table are based on locked cycle testing simulating operating plant performance with the exception of the Pinwheel Gossan, which was an open circuit test. Test work for precious metals include a separate recovery circuit for gold and silver ores as well as for tailings from flotation stages of base metal ores to increase total precious metal recovery to the test levels shown in the two right hand columns above for flotation ores.

Geochemical analyses of concentrates indicate that there may be payable levels of indium contained in base metal concentrates. Indium grades in concentrates averaged 150 ppm in zinc concentrates and 122 ppm in copper concentrates. Concentrate analyses also indicated no major concentrations of deleterious elements, although mercury levels in zinc concentrates may exceed penalty levels at some smelters.

Testwork is ongoing with two additional ore types (Deep Zone and Pinwheel Extension) at G&T Metallurgical Services, and additional metallurgical studies by SGS Lakefield, and Kappes Associates are planned, to improve metal recoveries as well as to provide final data for scoping and prefeasibility studies.

In addition to favorable recoveries and concentrate quality, work index testing indicated the ores tested to date are of the “soft” variety, with favorable grinding characteristics and associated lower power requirements. A preliminary flowsheet for ore processing based on the metallurgical work to date, using proven technology, indicates:

– Primary and secondary grinding and classification

– Pre-flotation gravity gold and silver recovery

– Grinding circuit to produce pulps for selective flotation and production of zinc, copper and lead concentrates, with hydrometallurgical (cyanidation) recovery of precious metals from tailings. In the case of precious metal ores, pulps will report directly to the hydrometallurgical circuit.

“We are very pleased with these initial metallurgical results from Back Forty ores,” stated Tom Quigley, Aquila’s President. “The results not only show the viability of standard beneficiation processes for these ores, but also indicate production of quality concentrates with significant precious metal recoveries, with ongoing test work targeting improvement upon these results. It remains our focus to develop the Back Forty into a world class base and precious metal deposit and these results represent a milestone towards achieving that goal.”

A National Instrument 43-101 compliant updated resource estimate by SRK Consultants is in progress, and drilling at the project is continuing. The resource remains open at depth and down plunge and preparations are underway to begin testing targets proximal to the known resource as well as distally in prospective host rocks identified from a VTEM airborne geophysical survey completed in 2007.

Further information about Aquila and the Back Forty Project is available on the Company’s website at www.aquilaresources.com.

Tom Quigley, P.Geo. and President of Aquila is the Qualified Person as described in National Instrument 43-101 for the Back Forty Project and is responsible for the content of this press release.

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The securities being offered have not and will not be registered in the United States under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws, and may not be offered or sold within the United States or to or for the account of benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to purchase securities in the United States.

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