Iron-T 43-101 Report Indicates World Class Potential



    VANCOUVER, Jan. 21 /CNW/ - Apella Resources Inc. (TSX.V Symbol - APA);
(Frankfurt Symbol - NWN), and its Board of Directors are pleased to announce
that the Company has completed and filed on SEDAR, a National Instrument
43-101 Report on the Audet-Optioned portion of its Iron-T
Vanadium/Titanium/Iron project. The Iron-T Vanadium-Titanium-Iron property is
located in the Matagami area in the west-central part of the Province of
Quebec, Canada, approximately 780 km north of Montreal. The property currently
consists of 27 designated claim cells totaling 1,485 Ha and covering one block
of contiguous claims among Lozeau and Comporté townships. An additional 94
staked claims were also applied for in 2008 and remain subject to a processing
period before approval. The following paragraphs contain key excerpts from the
NI43-101 Report. The report can be read in its entirety on SEDAR.

    
    Key points pertaining to the similarities between Iron-T and other
    ------------------------------------------------------------------
    world-class magmatic Fe-Ti-V oxide deposits:
    --------------------------------------------
    

    "Based on an examination of vanadium grade assays obtained from channel
sampling on mineralized oxide zones by Apella, magnetite-bearing horizons with
at least 33.6% Fe2O3 could return an average economical grade of 0.50% V2O5
which represents the typical grade of vanadium deposit."
    "The Iron-T Vanadium-Titanium-Iron property is for the present time,
without a known economical ore body. However, Abitibi Geophysics in its report
on the magnetometer survey carried out on the property in 2007 evaluated a
mineral resource of 250 Mt of iron oxides which are the cause of the 10 km
long strata bound magnetic anomaly (GM 63124). This estimation is not
compliant with NI 43-101."
    "Geological setting and mineralization encountered on the Iron-T
Vanadium-Titanium-Iron property located in the Bell River Complex indicates
many similarities with typical world-class magmatic Fe-Ti-V oxide deposits
associated with a layered intrusive complex. Most of these deposits are
associated with mafic-ultramafic layered complexes such as the Lake Doré
Complex in Chibougamau, Quebec; the Windimurra Complex in Australia; the
Panzhihua layered intrusion in China and the Bushveld Complex in South
Africa."
    "The 6.5 km thick sequence of 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 Fe-Ti-V oxide ores form concordant layers varying from 0.1 to 10 m in
thickness within the Upper Zone but most of these layers are relatively thin
and less than 30 cm in thickness. The lower contact of individual layers with
their footwall is usually sharp. The upper contacts of individual layers are
often gradational and show a gradual decrease of oxide content in the rock.
Furthermore, oxide-rich layers are rarely composed entirely of Fe-Ti oxide and
some layers or portion of layers may be composed of a fair amount of
silicates.
    "The economically important Main Magnetite Layer 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 Lake Doré 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 Lake Doré Complex is the most advanced project and the
largest vanadium deposit in North America. It shows a geological setting and
vanadiferous mineralization similar to the Bell River Complex. The Lake Doré
Complex is 5 to 7 km in thickness and has been subdivided into three main
units from base to top: The Lower Serie including the Anorthosite Zone; the
Layered Serie; and the Upper Serie which includes the Granophyre and the
Border Zone (Daigneault and Allard, 1990). The mineralized zones form a 50 to
200 m thick sequence within the Layered Serie. The sequence comprises
ferrogabbro, ferropyroxenite and magnetite and hosts the highest grades of
vanadium mineralization. Mineralized oxide horizons are also characterized by
heterogeneous and rhythmic distribution within the Layered Serie (Taner, Ercit
and Gault, 1998) and a gradual upward decrease of vanadium content and gradual
upward increase of ilmenite (Daigneault and Allard, 1990). 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 Lake Doré Vanadium deposit is
estimated to 100.0 Mt grading 0.49% V2O5 including 32.2 Mt of measured
resources at 0.65% V2O5 (Girard and Allard, 1998)."
    "Three lithological units have been distinguished within the Iron-T
Vanadium-Titanium-Iron property."
    Vanadium grades listed above from the Rhovan Mine in the Bushveld
Complex, South Africa by the 43-101 author 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 recently taken from
trench samples on the Iron-T Vanadium-Titanium-Iron Project. Apella's recently
released Iron-T assays are listed below for ease of reference.

    
    -------------------------------------------------------------------------
    Sample Number   Fe%           P%           S%     TiO2%    V%     V2O5%
    -------------------------------------------------------------------------
        224925     39.60   (less than)0.001   0.581    9.96   0.330   0.589
    -------------------------------------------------------------------------
        224926     43.30   (less than)0.001   0.198   11.45   0.370   0.660
    -------------------------------------------------------------------------
        825401     11.45              0.007   0.425    1.86   0.077   0.137
    -------------------------------------------------------------------------
        825402     8.87               0.012   0.287    1.39   0.053   0.095
    -------------------------------------------------------------------------
        825403     24.70   (less than)0.001   0.626    5.50   0.203   0.362
    -------------------------------------------------------------------------
        825404     39.00   (less than)0.001   0.245   10.15   0.378   0.675
    -------------------------------------------------------------------------
        825405     27.10              0.001   0.511    5.75   0.208   0.371
    -------------------------------------------------------------------------
        825406     32.80   (less than)0.001   0.503    7.42   0.251   0.448
    -------------------------------------------------------------------------
        825407     37.60   (less than)0.001   0.525    9.30   0.300   0.536
    -------------------------------------------------------------------------
        825408     39.20   (less than)0.001   0.572    9.79   0.317   0.566
    -------------------------------------------------------------------------
        825409     31.90              0.001   0.941    7.01   0.222   0.396
    -------------------------------------------------------------------------
        825410     22.30              0.001   0.309    4.93   0.180   0.321
    -------------------------------------------------------------------------
        825411     32.70   (less than)0.001   0.432    8.15   0.290   0.518
    -------------------------------------------------------------------------
        825412     36.10   (less than)0.001   0.183    9.24   0.331   0.591
    -------------------------------------------------------------------------
        825413     36.00   (less than)0.001   0.716    8.65   0.309   0.552
    -------------------------------------------------------------------------
        825414     38.20              0.002   0.595    9.36   0.323   0.577
    -------------------------------------------------------------------------
        825415     41.20   (less than)0.001   0.566   10.65   0.340   0.607
    -------------------------------------------------------------------------
        825416     43.60   (less than)0.001   0.392   11.50   0.365   0.652
    -------------------------------------------------------------------------
        825417     32.30              0.001   0.544    7.40   0.241   0.430
    -------------------------------------------------------------------------
        825418     27.20   (less than)0.001   0.127    6.76   0.239   0.427
    -------------------------------------------------------------------------
        825419     47.10   (less than)0.001   0.279   12.90   0.459   0.819
    -------------------------------------------------------------------------
        825420     26.70   (less than)0.001   0.250    6.00   0.221   0.394
    -------------------------------------------------------------------------
        825421     35.90   (less than)0.001   0.552    8.70   0.310   0.553
    -------------------------------------------------------------------------
        825422     39.40   (less than)0.001   0.608    9.48   0.329   0.587
    -------------------------------------------------------------------------
        825423     45.30   (less than)0.001   0.399   12.20   0.380   0.678
    -------------------------------------------------------------------------
        825424     37.80   (less than)0.001   0.462    9.40   0.305   0.544
    -------------------------------------------------------------------------
        825425     35.60   (less than)0.001   0.524    8.65   0.270   0.482
    -------------------------------------------------------------------------

    Roger Moar reports "The Iron-T Vanadium-Titanium-Iron property is not
subject to any environmental liabilities."

    Key points pertaining to the author's final recommendations for the
    -------------------------------------------------------------------
    Iron-T Project:
    ---------------
    

    "The author has concluded that similarities between the Iron-T
Vanadium-Titanium-Iron property and typical world class vanadium deposits
associated to layered mafic to ultramafic intrusions justifies an exploration
program. The two-stage exploration program proposed is designed to further
define prospective areas of vanadiferous mineralization within the Upper zone
of the Bell River Complex. The Iron-T Vanadium-Titanium-Iron property is
without a known economical vanadium deposit. Since the vanadium content is
closely correlated with iron contents of the host rock, magnetic geophysical
methods are considered to be the most effective and inexpensive approach to
locate favourable horizons that may indicative of vanadiferous mineralization"
    "A two-stage exploration program totaling $1,250,590 is proposed to
further define prospective areas of vanadiferous mineralization within the
Iron-T Vanadium-Titanium-Iron property. The proposed program is oriented
toward geological, geophysical and geochemical data acquisition which can lead
to the discovery of an economic vanadium, titanium and iron deposit. The
proposed program is an exploration program mainly oriented toward geological,
geophysical and geochemical data acquisition which can lead to the discovery
of economic vanadium deposit."
    "The author has reviewed the proposed program for the Iron-T
Vanadium-Titanium-Iron property as recommended and is of the opinion that the
properties have sufficient merit to justify the program and budget as
proposed. Positive results obtained during Phases I and II will necessitate
more exploration and development drilling which in turn will permit to
calculate resources and bring the property to the prefeasibility level."
    The NI-43-101 report was written by Roger Moar, P.Geo an independent
qualified consulting geologist, under the auspices of the qualified person for
the purpose of this news release, Dr. Christian G. Derosier, MSc., DSc,
P.Geo..
    The Iron-T Vanadium-Titanium-Iron property is located in the Matagami
area in the west-central part of the Province of Quebec, Canada, approximately
780 km north of Montreal. Matagami, situated in the administrative region of
Northern Quebec, is the major town in the area and can provide housing,
servicing, supplies, consumable and transport facilities including railway
access for an efficient mining operation.
    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.
    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 RE

SOURCES INC. "Patrick D. O'Brien" ------------------------------ Patrick D. O'Brien - Chairman S.E.C.Exemption12(g)3-2(b) File No. 82-3822, Standard & Poors Listed, Dun & Bradstreet Listed. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUITE 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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apella@apellaresources.com

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