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Thursday, 09/29/2011 9:48:43 AM

Thursday, September 29, 2011 9:48:43 AM

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Apella Resources Inc.: China & Lac Dore Update
Apella Resources Inc. (TSX VENTURE:APA)(OTCQX:APAFF) is pleased to report that its recent participation in the Province of Quebec's trade delegation to China led by the honorable Jean Charest, Premier of the Province of Quebec has proven very fruitful. Apella met with key Chinese corporations in the cities of Beijing, Shanghai and Shenyang. Aside from being part of such a key trade delegation, Apella set up many of its own special meetings through key Chinese contacts Apella had developed in-house.

Over the busy week spent in China, Apella was able to present the merits and key attributes of its Lac Dore and Iron-T Vanadium-Iron-Titanium projects to the senior management teams of many of China's leading steel producers, vanadium producers and distribution channel participants. China's immense appetite for
the minerals contained in Apella's deposits was quite obvious. Visits to numerous domestic operations and facilities provided invaluable insight as to precisely why our rich deposits have garnered so much interest from China. It was quite clear that Chinese entities consider Apella's projects as premium and
very attractive when compared to the lower grade domestic deposits currently mined in China. Apella found the hospitality, insightful dialogue, and sincere interest in our plans afforded our company by senior representatives of such highly successful entities as Pangang Steel, Fortune Vanadium, Xiben, BHP
Billiton China and many others compelling. Discussions with regard to co-operation and participation in Apella's Lac Dore and Iron-T projects were both forthcoming and abundant. Apella has been invited back to China in November.

Since being awarded the Lac Dore claims in March of 2011, Apella has now completed its analysis of the data on the historic drilling and development at Lac Dore that led up to the pre NI-43-101 Feasibility Study completed in 2002-2003 by SNC-Lavelin. Apella's extensive compilation and review of historic drill-hole data has allowed Apella's geological team to identify all of its
Category 1 drill targets for its first phase of drilling and development for the well-known Lac Dore Vanadium-Iron-Titanium Deposit.


Now that the Lac Dore claims have been officially registered in Apella's name, Apella is now adding the Lac Dore Vanadium-Iron-Titanium project to its near-term drill and develop plans. The first phase of exploration at Lac Dore will be focused primarily on extensive diamond drilling with the express intent of confirming the known Lac Dore deposit as a NI 43-101 compliant resource.

The Lac Dore Complex is a Bushveld-type Archean layered mafic intrusion (Allard, 1976) located some 250 km due east of Matagami in the Chibougamau mining camp. The Lac Dore is an advanced Vanadium project; currently the largest vanadium deposit in North America, and the second largest in the world. It shows a
geological setting and vanadiferous mineralization similar to Apella's Iron-T Vanadium project. As opposed to South Africa's Bushveld Complex, where the majority of Vanadium produced globally is sourced, the thickness of the Lac Dore
Complex ranges from 50-200 times thicker. The Lac Dore also has several economic advantages, most notably that the ore is open- pitable thus much easier to extract, and the Lac Dore is in Canada one of the most politically safe countries in the world. "The Lac Dore Vanadium deposit at Chibougamau is
estimated to host 100.0 Mt grading 0.49% V2O5 including 32.2 Mt of measured resources at 0.65% V2O5" (Girard and Allard, 1998). Apella derived these details from the public domain and such details are noted as being non NI-43-101 compliant.

It should be noted that in accordance with present reporting requirements the potential quantity and grade is conceptual in nature, that there has been
insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in discovery of a mineral resource on the property. However, it should also be noted for clarification that historically the Lac Dore deposit was subject to a positive feasibility study in 2003 by
SNC-Lavelin for the production of V2O5. The reader is referred to the USA's EDGAR reporting system to access and review a copy of the McKenzie Bay International Ltd. Executive Summary of the Feasibility Study.

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.