New Resource Study Planned

TORONTO, ON - Aquila Resources plans for continued exploration and development activities at the Back Forty Project in Michigan's Upper Peninsula. The Company's key asset is the Back Forty volcanogenic massive sulfide (VMS) deposit located in Menominee County, Michigan. A National Instrument (NI) 43-101 compliant Back Forty resource currently stands at 6.6 million tonnes grading 5.32% zinc, 2.28 g/t gold, 28.76 g/t silver and .52% copper in the Measured and Indicated category with an additional 1.7 million tonnes grading 2.61% zinc, 2.82 g/t gold, 32.41 g/t silver and .15% copper in the Inferred category - making the Back Forty one of North America's major, undeveloped gold VMS deposits.

Exploration will continue throughout the Back Forty Project area. New exploration targets generated by down hole and regional airborne geophysics will be tested in 2008. In addition, ongoing massive sulfide delineation and expansion, as well as further definition and expansion of several gold mineralized zones on the project will continue. A total of 44 drill holes are still pending from the current drilling program. Three drills will continue to operate in 2008.

An updated resource will be completed during the second or third quarter of 2008. The resource will incorporate drill holes completed since May, 2007 (115 to date) as well as drill holes planned for early 2008. Significant expansion of the existing resource has occurred in several key areas including the Pinwheel, South Limb, and 90 Gold Zone. SRK Consulting has been retained to complete the NI 43-101 updated resource calculation.

Aquila intends to engage independent third party consulting engineers to complete preliminary mine and processing plans in order to assess the preliminary economic parameters of the project.

The company's address is Suite 530 - 65 Queen Street West, Toronto, ON M5H 2M5, (416) 203-1404, fax: (416) 955-4771.