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Apella Resources Inc.: Apella Resources Inc.: Iron-T Iron-Vanadium-Titanium Project Diamond Drilling to Commence

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2009) - Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) and its Board of Directors are pleased to announce that the Company is now commencing its next phase of exploration on its 100% owned Iron-T Iron-Vanadium-Titanium project. The new phase of exploration will include a 10-hole NQ diamond drill program, line cutting, and detailed mapping.

The Iron-T Project near Matagami, Quebec, approximately 250 km west of Chibougamau currently consists of approximately 125 designated claim cells. The claim cells cover most of the known mag targets in the area over a strike length of more than 10 kms. Matagami is the major town in the area and can provide housing, servicing, supplies, and consumable and transport facilities including railway access for an efficient mining operation.

The geological setting and mineralization encountered on the Iron-T Vanadium-Titanium-Iron property, located in the Bell River Complex, indicates numerous striking similarities with typical magmatic Fe-Ti-V oxide deposits associated with layered intrusive complexes throughout the world. Most of these types of deposits are associated with mafic-ultramafic layered complexes such as the Lake Dore Complex in Chibougamau, Quebec; the Windimurra Complex in Australia; the Panzhihua layered intrusion in China and the Bushveld Complex in South Africa.

Management notes that the similarities between the Iron-T vanadium-iron-titanium mineralization and that of typical world vanadium deposits associated with layered mafic to ultramafic intrusions is encouraging. The vanadium content is closely correlated with iron contents of the host rock. Apella's exploration program is designed to further define prospective areas of vanadiferous mineralization within the Upper zone of the Bell River Complex.

The Bushveld complex is the largest layered mafic intrusion in South Africa. About 39.5% of total world vanadium production (55 700 t in 2006 (USGS, 2006)) comes from the Bushveld Complex. The economically important Main Magnetite Layer at Bushveld varies from 1.0 to 2.5 m in thickness and covers a strike length of 200 km in the western Bushveld Complex and 120 km in the Eastern Bushveld Complex (Reynolds, 1985). The Rhovan mine of Xstrata Alloys is a primary vanadium producer situated within the Western Lobe of the Bushveld Complex. The mine is located some 35 km ENE of Rustenburg, South Africa. The vanadium mineral resource and ore reserve of Rhovan mine reported by Xstrata Alloys as of September 2007 (Xstrata Alloys, 2008) are:

Proved Ore Reserves - 39.2 Mt @ 0.51% V2O5

Probable Ore Reserves - 10.5 Mt @ 0.53% V2O5

Measured Mineral Resources - 64.4 Mt @ 0.51% V2O5

Indicated Mineral Resources - 13.7 Mt @ 0.53% V2O5

Inferred Mineral Resources - 124.9 Mt @ 0.51% V2O5

The Lac Dore Complex at Chibougamau, Quebec is a Bushveld-type Archean layered mafic intrusion (Allard, 1976) located some 250 km due east of Matagami. The magnetite horizons vary from 50 to 200 m in thickness and extend for 16 km along strike as inferred from airborne magnetic data. The Lac Dore Vanadium deposit is estimated at approximately 100.0 Mt grading 0.49% V2O5 including 32.2 Mt of measured resources at 0.65% V2O5 (Girard and Allard, 1998).

Apella has significant interests at Lac Dore. The Company recently carried out a ten-hole drill program on its Lac Dore interests and expects to be releasing assays soon.

Vanadium grades listed above from the Rhovan Mine in the Bushveld Complex, South Africa should be carefully noted and compared for their similarities to those assays reported by Apella Resources Inc. in its October 30, 2008 press release for samples taken by Apella from trench samples on the Iron-T Vanadium-Titanium-Iron Project. Apella's Iron-T trench sample assays, previously released in October 2008, are listed below for ease of reference.

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Sample 
Number Fe% P% S% TiO2% V% V2O5%
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224925 39.60 less than 0.001 0.581 9.96 0.330 0.589
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224926 43.30 less than 0.001 0.198 11.45 0.370 0.660
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825401 11.45 0.007 0.425 1.86 0.077 0.137
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825402 8.87 0.012 0.287 1.39 0.053 0.095
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825403 24.70 less than 0.001 0.626 5.50 0.203 0.362
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825404 39.00 less than 0.001 0.245 10.15 0.378 0.675
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825405 27.10 0.001 0.511 5.75 0.208 0.371
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825406 32.80 less than 0.001 0.503 7.42 0.251 0.448
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825407 37.60 less than 0.001 0.525 9.30 0.300 0.536
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825408 39.20 less than 0.001 0.572 9.79 0.317 0.566
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825409 31.90 0.001 0.941 7.01 0.222 0.396
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825410 22.30 0.001 0.309 4.93 0.180 0.321
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825411 32.70 less than 0.001 0.432 8.15 0.290 0.518
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825412 36.10 less than 0.001 0.183 9.24 0.331 0.591
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825413 36.00 less than 0.001 0.716 8.65 0.309 0.552
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825414 38.20 0.002 0.595 9.36 0.323 0.577
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825415 41.20 less than 0.001 0.566 10.65 0.340 0.607
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825416 43.60 less than 0.001 0.392 11.50 0.365 0.652
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825417 32.30 0.001 0.544 7.40 0.241 0.430
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825418 27.20 less than 0.001 0.127 6.76 0.239 0.427
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825419 47.10 less than 0.001 0.279 12.90 0.459 0.819
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825420 26.70 less than 0.001 0.250 6.00 0.221 0.394
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825421 35.90 less than 0.001 0.552 8.70 0.310 0.553
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825422 39.40 less than 0.001 0.608 9.48 0.329 0.587
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825423 45.30 less than 0.001 0.399 12.20 0.380 0.678
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825424 37.80 less than 0.001 0.462 9.40 0.305 0.544
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825425 35.60 less than 0.001 0.524 8.65 0.270 0.482
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Vanadium is a strategic metal and is used in the production of high-quality metal alloys, like strengthened steel, because of its property as an active grain refiner and as a strong deoxidant and can impart strength, hardness and wear resistance to steels. The vanadium industry is relatively new and new uses are continually being discovered for the metal. Following are the a number of the main uses of vanadium by various industries: iron and steel, high-strength steels, full alloy steels, tool steels, carbon steels, stainless and heat resistant steels, cast irons, titanium alloys, superalloys and hard-facing alloys, aerospace engines and airframe materials.

As of late, Vanadium enriched iron ores, or "ship ready ores", have gained considerable recognition and are in demand. Because the iron ore is naturally rich in vanadium it doesn't need to be artificially blended to the same degree in the high-strength steel making process. Most common iron ores produced worldwide are without vanadium content and therefore they have to be subjected to a time consuming and costly process of carefully blending with vanadium for high-strength steel manufacturing.

Iron ores which already contain vanadium, like the mineralization of the Iron-T, Lac Dore North and Lac Dore, are quite unique and sell at a significant premium to common iron ore. The significant titanium content, also present in these ores can provide considerable by-product revenue that can offset many of the costs associated with mining and processing the iron-vanadium rich ores associated with it. The Chinese Government recently issued a policy that encourages the use of steel strengthened by vanadium for construction in earthquake prone zones. Apella expects initiates such as this will follow suit globally over the coming months and years.

The qualified person for the purposes of this news release is Dr. Christian G. Derosier, P.Geo.

Apella invites the public to visit its NEW website at [ http://www.Apellaresources.com ] or e-mail us at [ Apella@Apellaresources.com ] to be added to the Company's e-mail list for press releases and updates.

ON BEHALF OF THE BOARD OF DIRECTORS OF APELLA RESOURCES INC.

Patrick D. O'Brien - Chairman

S.E.C. Exemption 12(g)3-2(b) File No. 82-3822, Standard & Poors Listed, Dun & Bradstreet Listed.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This news release contains Forward Looking Statements that are not historical facts and are subject to risks and uncertainties which could cause actual results to differ materially from those set forth in or implied herein.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.