Aquila Announces New Exploration Program at Back Forty Project

TORONTO, ONTARIO -- (Marketwire) -- 08/04/10 -- AQUILA RESOURCES INC. (TSX: AQA)(FRANKFURT: JM4A) ('Aquila' or the 'Company') is pleased to announce additional results from drilling at the Back Forty Project and the commencement of a new exploration program. The Back Forty Project is currently operating under a Subscription, Option and Joint Venture Agreement (the 'Agreement') with HudBay Minerals Inc. ('HudBay') (TSX: HBM). A new resource estimate has been initiated and will incorporate results from an additional 11,000 meters of drilling completed since the last National Instrument (NI) 43-101 compliant resource, dated February 25, 2009.

Final results were received from drilling within the potential resource pit, and included these significant results from the East Zone:

- LK-455: 15.4 meters of 8.5 grams per tonne (g/t) gold, 57.1 g/t silver and
  5.7% zinc from 22.9 to 38.3 meters.
- LK-457: 6.0 meters of 5.2 g/t gold and 21.8 g/t silver from 7.5 to 13.5
  meters.
- LK-461: 3.4 meters of 28.7 g/t gold from 8.8 to 12.2 meters.
- LK-462: 50.1 meters of 7.4 g/t gold and 10.3% zinc from 21.2 to 71.3
  meters.

Drilling was also completed around portions of the Hinge and East Zones previously classified as inferred where a mafic dyke crosscuts the stratigraphy in order to better define the deposit in this area. Key results included:

- LK-442: 31.4 meters of 10.4% zinc from 60.6 to 92.0 meters.
- LK-447: 12.9 meters of 9.9% zinc and 0.7 g/t gold from 80.6 to 93.5
  meters.
- LK-449: 24.2 meters of 5.8 g/t gold, 47.4 g/t silver and 2.7% zinc from
  105.8 to 130.0 meters.
- LK-450: 5.0 meters of 3.2 g/t gold from 11.0 to 16.0 meters.

'Drilling at the Back Forty Project continues to produce excellent near surface intersections. We look forward to completion of the mineral resource estimate by year end which will outline the potential expansion of the resource at the Back Forty, in particular the contained gold and silver in the deposit. We are also excited about the next phase of exploration at the project which will focus on further expansion of the resource as well as adding new discoveries in the project area,' stated Tom Quigley, Aquila's President and CEO.

Announcement of New Exploration Phase at Back Forty

Aquila is pleased to announce that under the Agreement with HudBay, the two companies will commence a new exploration program in the project area. Geophysical surveys and a drilling program will be initiated shortly, focusing on several priorities including:

1) Outlining the potential expansion of the known resource at depth;
2) Testing the on-strike potential of the resource; and
3) Testing new targets in the project area generated from airborne and
   ground geophysical surveys.

Recent drilling at the Back Forty Project has targeted near-surface massive sulfide and gold mineralization within a potential open pit defined in the February 25, 2009 resource estimate. The deposit remains open at depth where strong widths of massive sulfide containing zinc, gold and silver have been encountered in previous drilling. The deposit is also potentially open along strike in two directions as indicated by geophysical trends and step-out drilling which encountered strongly altered and mineralized rocks.

In addition, interpretation of airborne geophysical data has identified airborne anomalies that will be targeted by future drilling.

About the Back Forty Project

The Back Forty Project is an advanced stage exploration project evaluating a zinc and gold-rich volcanogenic massive sulfide hosting an NI 43-101 compliant measured plus indicated mineral resource of 8.5 million tonnes of 2.13 g/t gold, 30.6 g/t silver, 5.61% zinc and 0.51% copper (Back Forty Project Mineral Resource Evaluation, SRK Consulting, Toronto, Canada, February 25, 2009 available at www.sedar.com). The Back Forty Project is currently operating under a Subscription, Option and Joint Venture Agreement with HudBay, whereby HudBay has the right to earn up to a 65% interest in the Back Forty Project by completing a feasibility study and submitting a mine permit application.

Thomas O. Quigley is the Qualified Person for Aquila as described in NI 43-101 and is responsible for the contents of this release.

More information about Aquila and the Back Forty Project, including updated drilling information, can be found on the Company's website at www.aquilaresources.com.

This press release contains certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as 'plans', 'expects' or 'does not anticipate', or 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; changes in project parameters as plans continue to be refined, future prices of resources; possible variations in reserves, grade or recovery rates, accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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Contacts:

Aquila Resources Inc. (Toronto)

Robin Dunbar

CFO

416-203-1404
info@aquilaresourcesinc.com


Aquila Resources Inc. (U.S.)

Thomas O. Quigley

President

906-753-9602
tquigley@aquilaresources.com