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- Final Technical Report includes updated economics -
- $282.2M pre-tax NPV and 38.8% pre-tax IRR -

TORONTO , Sept. 8, 2014 /CNW/ - Aquila Resources Inc. (TSX: AQA) (FKT: JM4A) ("Aquila"), a development-stage company with assets in the Great Lakes Region including its 100%-owned gold- and zinc-rich Back Forty Project in Michigan's Upper Peninsula ("Back Forty"), today announced that it has filed a technical report (the "Technical Report") in respect of the Company's preliminary economic assessment on the Back Forty Project.

PEA Highlights

In preparation of the final NI 43-101 compliant Technical Report, the Company has provided updated economics for Back Forty.

Table 1. Key Economic Highlights

	Pre-Tax	After-Tax
NPV @ 6%	$282.2M	$210.8M
IRR	38.8%	32.0%
Payback Period	1.4 years	1.8 years

The PEA includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA results will be realized.

There are no updates to the capital or operating expenditures from the figures stated in the July 23, 2014 press release.

Sensitivity Analysis

Taking into consideration the updated economics, a new sensitivity analysis was performed to test the economic viability of Back Forty against possible fluctuations in commodity prices. A table illustrating project sensitivity is presented below:

Table 2. Sensitivity Analysis

	Base Case -15%	Base Case	Base Case + 15%
Gold	$1,099/oz	$1,293/oz	$1,487/oz
Silver	$17.39/oz	$20.46/oz	$23.53/oz
Zinc	$0.82/lb	$0.96/lb	$1.10/lb
Copper	$2.70/lb	$3.18/lb	$3.66/lb
Lead	$0.82/lb	$0.96/lb	$1.10/lb
Pre-Tax
NPV @ 6%	$122.3M	$282.2M	$440.6M
IRR	23.7%	38.8%	52.0%
Payback Period	2.8 years	1.4 years	0.9 years
After-Tax
NPV @6%	$95.2M	$210.8M	$324.8M
IRR	20.2%	32.0%	42.0%
Payback Period	3.1 years	1.8 years	1.2 years

Project Potential

An alternate mine plan, which considers a low-CAPEX, high-grade initial phase operation, was evaluated in the PEA and provides some flexibility in the development of the project. This option would focus on mining near-surface, high-grade zones by way of three small open pits in order to maximize capital return in the early years of production. This approach has the potential to provide attractive economic returns, mitigate certain start-up risks, and allow for significant optionality in the long-term development of the project. Following the five-year initial phase operation, Aquila could commence a second phase operation which would consider an expanded pit and / or inclusion of the underground resource.

This opportunity would be fully evaluated during the feasibility stage of project development and could be pursued depending on future macro-economic conditions.

Table 3. Key Economic Highlights of Initial Phase Operation

	Pre-Tax	After-Tax
NPV @ 6%	$129.4M	$103.3M
IRR	38.6%	35.2%
Payback Period	2.1 years	2.2 years

Qualified Persons

The Technical Report was prepared under the supervision of Tetra Tech Inc., specifically Rex Bryan , SME; Wenchang Ni , P.Eng.; Daniel Sweeney , P.Eng.; Arun Vathavooran, Ph.D., C.Eng., MIMMM, SME; Dharshan Kesavanathan , P.Eng.; Mike McLaughlin , P.Eng.; Sabry Abdel Hafez , P.Eng.; and, Andrew Carter , Eur. Ing., C.Eng., MIMMM, MSAIMM, SME. All of the aforementioned individuals are Qualified Persons as defined in National Instrument (NI) 43-101.

The environmental components of the Technical Report were prepared under the supervision of Andrea K. Martin, P.E., from Foth Infrastructure & Environment, LLC. Ms. Martin is considered a Qualified Person as defined under NI 43-101.

The scientific and technical information in this news release was reviewed and approved by Thomas O. Quigley , Vice President of Exploration and Senior Technical Advisor for the Back Forty Project. By virtue of his education, experience and professional association, Mr. Quigley is considered a Qualified Person as defined under NI 43-101. Information regarding data verification is provided in Aquila's annual information form dated March 31, 2014 .

About Aquila Resources

Aquila Resources Inc. (AQA.TO) (JM4A.F) is a development-stage company with assets in the Great Lakes Region including its 100%-owned gold- and zinc-rich Back Forty Project in Michigan's Upper Peninsula.

The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release contains certain forward-looking statements within the meaning of applicable Canadian securities legislation. 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" and similar expressions suggesting future outcomes or statements regarding an outlook.

Forward-looking statements relate to any matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, without limitation, statement with respect to: (i) the economic analysis contained in the PEA; (ii) the development plan of the PEA and results thereof; (iii) capital expenditure programs; (iv) the quality or quantity of the mineral resources subject to estimates by Aquila; and (v) work plans to be conducted by Aquila.

These and other forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Aquila to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein. Aquila expressly disclaims any obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents Aquila's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. Furthermore, mineral resources that are not mineral reserves do not have demonstrated economic viability.

SOURCE Aquila Resources Inc.

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