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Apella Resources Inc.: Promising Drill Results at Lac Dore North Vanadium-Iron Titanium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2009) - Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) is pleased to announce encouraging drill results from the Lac Dore North vanadium project in northern Quebec. These preliminary results are indicative of a rare, high grade and mineable vanadium deposit and lend support to the project's economic feasibility. In addition, these assets are strategically located in areas with excellent access by rail and highway. This is a further step toward Apella's end goal of establishing a one of a kind stable, domestic supply of vanadium.

Apella CEO, Patrick O'Brien states, "This is an outstanding start to our development of the Lac Dore North project. Due to its proximity to the well-known Lac Dore Vanadium-Iron-Titanium deposit, we feel this drilling program has confirmed the extension of this unique formation. We are in the process of compiling as much precise geological data as possible at this early stage. We consider vanadium to be one of the world's most important elements, given its steel strengthening properties and bright future in energy storage."

The 2009 Phase 1 diamond drilling and 2009 channel sampling programs were carried out from July to September on Apella's wholly owned Lac Dore North Vanadium-Iron-Titanium (V-Fe-Ti) Project at Chibougamau, Quebec. The 2009 exploration program has provided very important information that will now be used by Apella in targeting for its next phase of exploration and diamond drilling.

Technical Information:

A total of ten NQ core size diamond drill holes totaling 993m in length were collared as an initial diamond drilling program on the Lake Dore North project. Holes LDN-09-01, LDN-09-03, LDN-09-04 and LDN-09-06 were bored to test at depth and over a strike length of 100m the extension of the iron oxides mineralization of the two large stripped areas cleared by Apella in the fall of 2008. Apella's drill hole LDN-09-02 was collared 120 metres S-SW of the stripping area to intersect Mackenzie Bay's 1998 iron oxides mineralization obtained in hole MKB-01-02. Exploration holes LDN-09-05 and LDN-09-07 to LDN-09-10 were widely distributed over a surface distance of 1850m along the airborne magnetic anomaly to test for possible stratigraphic extensions. They returned lower oxide contents because they were not collared close enough to the magnetic airborne anomaly axis. In addition, the presence of a set of NE oriented faults which displaced the mineralized layers explained the weaker results in these particular holes. These faults are interpreted from topographic features and displacements of the magnetic axis.

The best assay results were obtained over the area Apella had earlier stripped and these more favourable holes returned values between 0.46% V2O5 to 0.64% V2O5 over lengths varying from 0.71m to 5.28m along core length in hole LDN-09-01; 0.46% V2O5 over 0.79m in hole LDN-09-04; 0.47% V2O5 over 4.25m and 0.45% V2O5 over 0.50m in hole LDN-09-06. Apella can now target its next round of diamond drilling at the more favourably mineralized target areas.

The mineralized Fe2O3, TiO2, and V2O5 zones in the Lac Dore North area are commonly multi-layered in nature. Due to folds and other characteristics the mineralized intersections Apella would expect to encounter are characterized by short multiple intersections of mineralization, layered throughout the core. Long continuous intersections of mineralization are not the norm in this area.

Significant assays results and calculated weighted grades for Fe2O3, TiO2, V and V2O5 are summarized in the following table.

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2009 DIAMOND DRILLING PROGRAM - LAKE DORE NORTH
SIGNIFICANT ASSAY RESULTS
Calculated weighted grade with interval value greater than 0.25% V2O5
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DDH NU FROM (m) TO (m) LENGTH (m) Fe2O3 (%) TiO2 (%) V (%) V2O5 (%)
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LDN-09-01 2.62 3.27 0.65 29.25 5.59 0.230 0.411
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LDN-09-01 7.75 12.52 4.77 30.66 5.78 0.235 0.419
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LDN-09-01 15.12 19.10 3.98 21.36 3.77 0.153 0.273
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LDN-09-01 20.60 27.35 6.75 24.86 3.85 0.164 0.293
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LDN-09-01 33.96 36.60 2.64 28.27 3.92 0.160 0.286
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LDN-09-01 39.12 39.83 0.71 43.43 7.54 0.280 0.500
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LDN-09-01 47.40 48.02 0.62 41.93 6.35 0.240 0.428
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LDN-09-01 50.61 51.68 1.07 54.88 9.60 0.360 0.643
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LDN-09-01 53.65 60.62 6.97 35.08 5.70 0.229 0.409
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LDN-09-01 66.25 67.25 1.00 30.73 5.00 0.200 0.357
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LDN-09-01 70.70 75.98 5.28 39.23 6.27 0.255 0.456
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LDN-09-01 78.04 79.60 1.56 43.20 7.48 0.290 0.518
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LDN-09-01 80.49 85.88 5.39 35.28 5.80 0.226 0.403
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LDN-09-01 86.50 94.87 8.37 30.19 4.97 0.196 0.349
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LDN-09-01 95.76 97.11 1.35 29.10 4.63 0.180 0.321
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LDN-09-02 72.37 76.29 3.92 28.79 7.49 0.143 0.255
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LDN-09-02 97.85 98.85 1.00 26.72 6.53 0.195 0.348
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LDN-09-03 63.90 64.35 0.45 45.06 11.32 0.150 0.268
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LDN-09-03 66.35 67.98 1.63 48.96 13.08 0.140 0.250
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LDN-09-03 73.83 78.29 4.46 29.54 5.14 0.146 0.262
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LDN-09-04 10.17 14.41 4.24 30.49 5.07 0.168 0.301
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LDN-09-04 31.80 38.15 6.35 29.40 4.64 0.193 0.345
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LDN-09-04 39.65 43.17 3.52 24.14 4.14 0.153 0.274
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LDN-09-04 47.54 49.25 1.71 26.75 4.29 0.160 0.286
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LDN-09-04 53.61 57.41 3.80 30.49 5.01 0.166 0.296
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LDN-09-04 65.10 65.89 0.79 42.39 6.63 0.260 0.464
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LDN-09-04 67.15 68.33 1.18 31.03 4.40 0.180 0.321
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LDN-09-06 5.47 9.72 4.25 41.02 6.34 0.262 0.468
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LDN-09-06 10.62 12.15 1.53 29.61 4.54 0.190 0.339
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LDN-09-06 13.04 14.61 1.57 32.84 5.26 0.210 0.375
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LDN-09-06 18.55 20.27 1.72 31.61 5.19 0.200 0.357
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LDN-09-06 24.63 25.83 1.20 35.46 5.64 0.220 0.393
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LDN-09-06 36.00 36.60 0.60 26.55 3.38 0.160 0.286
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LDN-09-06 50.30 52.75 2.45 22.95 3.76 0.159 0.285
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LDN-09-06 65.20 65.70 0.50 37.14 5.22 0.250 0.446
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LDN-09-06 66.90 68.15 1.25 38.50 3.83 0.180 0.321
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LDN-09-06 69.45 70.75 1.30 34.39 3.36 0.150 0.268
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It is noted that McKenzie Bay's historic hole MKB-01-01 and Apella's recent holes LDN-09-01 and LDN-09-06 have been bored on the same line, in a NW direction. Mineralization intersected by the three holes covers a horizontal width of about 160m. Semi to massive oxide mineralized zones dip at 70 to 90 degrees. Apella's hole LDN-09-02 was set up at 100m between holes MKB-01-01 and MKB-01-02 in order to intersect the extension to the SW of the oxide mineralization found previously. Apella's diamond drill hole LDN-09-02 confirmed the presence of two mineralized zones, 3.92m and 1.00m thick respectively. Apella's holes LDN-09-03 and LDN-09-04 were bored on the same line with the target to intersect at depth the NE extension of the mineralization un-covered by the 2008 stripping. They intersected respectively 3 and 7 mineralized layers representing a horizontal width of about 80m.

Following the diamond drilling program, Apella carried out a detailed geological mapping and a systematic channel sampling program mainly on the two large stripped areas cleared by Apella in the fall of 2008 (see news release dated October 30th, 2008).

The following table summarizes all calculated weighted grade of assay results for Fe2O3, TiO2, V and V2O5 obtained from the 2008 and 2009 channel sampling program. The 2009 trenching program was carried out simultaneously with the 2009 diamond drilling program from July through September, 2009.

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2008 & 2009 CHANNEL SAMPLING PROGRAMS - LAKE DORE NORTH
Calculated weighted grade with interval value greater than 0.25% V2O5
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CHANNEL 
NUMBER LENGTH (m) Fe2O3(%) TiO2(%) V(%) V2O5(%)
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V-2A 2.00 49.65 11.33 0.57 1.01
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V-2B 4.10 54.55 11.01 0.54 0.96
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V-7 0.80 46.80 10.25 0.54 0.96
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V-16B 1.00 52.55 9.11 0.45 0.80
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V-9 2.00 38.70 8.16 0.42 0.74
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V-1A 2.00 35.25 8.81 0.40 0.71
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V-3C 0.50 34.80 7.72 0.39 0.70
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V-14 4.70 49.58 8.01 0.38 0.69
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V-1B 3.50 34.60 7.92 0.38 0.68
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V-18A 1.50 48.51 6.98 0.38 0.68
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V-13B 2.30 45.46 7.68 0.35 0.63
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V-4A 2.00 32.10 6.79 0.36 0.63
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V-19 5.00 42.27 7.31 0.35 0.62
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V-13A 2.00 42.95 7.30 0.34 0.60
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V-6A 3.50 31.53 6.84 0.34 0.60
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V-4B 1.50 30.40 6.34 0.32 0.58
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V-5 1.00 29.20 6.32 0.32 0.57
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V-10 5.00 41.38 6.72 0.32 0.56
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V-2C 2.00 31.59 7.02 0.31 0.56
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V-16A 6.00 35.83 5.95 0.28 0.50
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V-12 7.00 36.30 5.77 0.27 0.48
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V-11 7.00 36.11 5.35 0.26 0.47
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V-3B 2.00 23.23 4.96 0.24 0.44
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V-17 12.00 31.92 4.79 0.24 0.43
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V-10A 3.60 33.41 5.11 0.23 0.41
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V-6 21.00 30.41 4.88 0.22 0.40
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V-6B 2.00 20.53 4.29 0.20 0.36
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V-8A 2.00 20.55 4.08 0.20 0.35
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V-15 3.00 25.95 4.11 0.18 0.32
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V-3A 1.00 24.10 4.26 0.18 0.32
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V-10B 4.20 28.06 3.85 0.17 0.31
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V-8B 2.00 15.63 3.07 0.15 0.26
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Assay Method and Quality Control

A total of 247 drill core samples were collected and sawn in half for sampling. One half was sent for assay and the other half retained for future reference. A total of 86 channel samples were collected from the Lake Dore North stripping areas by Apella's personnel during the 2009 channel sampling program conducted in August and September. All samples were properly tagged, sealed in the field, and stored in Apella's core shack facilities at Chibougamau. Following standard preparation at Table jamesienne de concertation miniere at Chibougamau, all pulps were sent to ALS-Chemex, Val d'Or, Quebec, a commercial laboratory with ISO 9001:2000 certification. The QA/QC program included blanks insert for each batch of samples.

All samples were assayed for major elements including total iron and titanium dioxide by lithium borate fusion to dissolve resistive minerals followed by X-Ray fluorescence spectrometry (ME-XRF06 package). Vanadium content was also determined by X-ray fluorescence using ore grade procedures (V-XRF10).

To convert from vanadium to vanadium pentoxide (V2O5) as used by the industry, assay results for vanadium have to be multiply by a factor of 1.785.

The qualified person for the purposes of this news release is Mr. Roger Moar, Consulting Geologist, P.Geo and is a Qualified Person under National Instrument 43-101 guidelines.

Apella invites the public to visit its 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, ICD.D - 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.

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