Capella Resources Completes Airborne Surveys Over Four of its Uranium Properties in New Brunswick



    VANCOUVER, BRITISH COLUMBIA, August 15 /CNW/ - CAPELLA RE

SOURCES LTD. (TSX VENTURE:CPS) ("CAPELLA" or the "Company") is pleased to announce completion of an airborne magnetic and radiometric survey over four of its uranium properties in southern New Brunswick. Ground reconnaissance work has preliminarily evaluated two of its western properties located on the northern and southern contacts of the Marysville Basin of Lower Carboniferous age, 45 kilometres south and southwest of Fredericton respectively. Historic showings and new anomalous zones as outlined by the new airborne surveys have been ground-truthed with encouraging preliminary results. A new discovery at Harvey consists of a significant anomalous zone of radioactivity that is 450m in strike length, 50m to 150m wide, and lies on a siliceous promontory. It exhibits a high background of 1,000 counts per second ("cps"). A string of discontinuous outcroppings yielded scintilometer readings in the 5,000 - 8,000 cps range with a maximum reading of over 40,000 cps. A handheld spectrometer registered a spot reading of 1,475 ppm uranium. Host rocks are altered and brecciated rhyolitic volcanic flows and tuffs that have been intensely argillitized and hematized. Historical records indicate the presence of veins of pitchblende-pyrite-flourite-arsenopyrite and secondary uranium products. A second discovery, known as Hoyt, is exposed in a gently dipping outcrop 300m in strike length and 2m in width. Radioactivity readings recorded by a scintilometer range from 1,000 to 14,000 cps. The Hoyt anomaly occurs in intensely altered Late Devonian -- Carrow Formation volcanogenic sandstone and conglomerate. The radioactivity is associated with chlorite-altered zones with hematite, pyrite, and fluorite accompanied by bleaching. The Company is encouraged not only by the intensity and scale of these occurrences, but also by the favourable geological environment they occur in. Evaluation of the properties continues with diamond drilling planned on both properties in early September. About Capella Resources Ltd. The Company is a publicly traded, junior exploration company with over 20,000 mineral exploration claims covering an aggregate land area coverage of over 1,010,000 acres (407,800 hectares) in Atlantic Canada (Nova Scotia, New Brunswick and Newfoundland and Labrador). The Company holds a 100% interest in the Tinton Gold Project located 15 kilometres west-northwest of the famous and historic Homestake Mine in the Black Hills at Lead, South Dakota. The property consists of 1270 hectares contained in 157 unpatented mining claims. The Company also holds a 100% interest in the Nevada and Dorado Gold and Copper properties located in the Maricunga Gold and Copper District approximately 700 kilometres northwest of Santiago, Chile. The properties are comprised of ten exploration claims and six exploitation claims totalling a cumulative 3,500 hectares in area. For further information, please contact Skyline Investor Relations at Toll Free 1-866-433-3356 or 604-733-3356 or by e-mail at info@skylineir.com. CAPELLA RE

SOURCES LTD. Per: R.A. "Bruce McDonald" R.A. Bruce McDonald, Chairman of the Board Not for distribution to the United States newswire services or for dissemination in the United States. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

For further information:

For further information: Skyline Investor Relations Brian Cole, Toll
Free: 1-866-433-3356 or 604-733-3356 Email: info@skylineir.com

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CAPELLA RESOURCES LTD.

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