SPRING 2019 DRILLING PROGRAM

Spring 2019 Drilling Program Announcement

Aquila Resources, Inc. will be conducting drilling activities at the Back Forty Project beginning around May 22nd, 2019. This program is expected to run for approximately two months, although we may extend the work.

You may see the mobilization of a core drilling rig and support equipment near the mine site during that time. We plan to access the drilling locations by using existing woodland roads and trails to reduce surface disturbance. Our drilling program will take place seven days per week but only during day-time hours while we are drilling near the Menominee River. Drilling will occur 24/7 for all other drill holes. We will not be drilling on Memorial Day or the Fourth of July holidays. As with past programs, we will use engineering controls to minimize noise as much as possible. However, when drilling nears the Menominee River, the sound will carry to nearby residents. We apologize in advance for this disturbance.

We will follow all of the conditions and requirements in our exploration permit. Any topsoil disturbed from drill site preparation will be stockpiled and used to restore sites to the natural grade. Brush and branches will be cleaned up or spread to naturalize the site, and we will reseed all disturbed areas per DNR Unit Manager’s specifications.

If you have any questions or concerns, you can reach us via email at info@backfortymine.com, call our hotline at 906-451-4192, or on our contact page.


MINE LIFE CYCLE

Let's take a look at the Mining Life Cycle.

Ever wonder how mining operations work? A typical project goes through a series of different phases which we refer to as the mining life cycle, each presenting unique challenges and opportunities. Click on the categories below for a description of each phase.

life of mine timeline

mining life cycle exploration

In Michigan, all metallic mineral exploration and development activities on state and private property are regulated by the DEQ, including leasing and drilling. A metallic mineral lease within itself does not give a company permission to mine. If a deposit is found, separate applications and approvals will be required before mining activity can take place.

It can take years or even decades to discover a viable deposit. Geologists utilize aerial surveys, soil analysis, and drilling to determine if there is a sufficient mineral deposit to justify mining. Many factors control the economic viability of a deposit, but the most important are the grade, size, location, and demand. Exploration does mean a mine is going to be developed.

mining life cycle designDetailed studies (e.g., feasibility study) are conducted to determine the capital requirements, community context, permitting requirements, critical environmental challenges, and other information vital in moving the project to the next step. If the outcomes yield positive results, additional research and planning will take place at a more granular level. As more information is gathered, companies gain a far greater understanding of mine plans, facility layouts, infrastructure, and environmental and social impact assessments.

mining life cycle permittingAll nonferrous metallic mines in Michigan are required to submit the necessary permit applications with the DEQ Office of Oil, Gas, and Minerals. The permits typically include mine, water discharge, and air. Government agencies thoroughly review each permit application and gather public input before issuing a permit. Each permit comes with conditions that must be met before, during, and after mining occurs. While these permits are a requirement for all mines, the exact details and specifications are unique for each project.

mining life cycle constructionUpon receipt of permit approvals and capital investment, the project can prepare for development. Hundreds of workers will build the infrastructure required to support the operation. Examples include roads, water treatment plants, maintenance facilities, warehouses, contact water basins, and process plants. Construction of such sites is a massive undertaking and boost to the local economy. A typical project can take 15 to 20 years between discovery and construction. See what the Back Forty Mine will look post-construction here.

mining life cycle production

Mining involves extracting large amounts of rock from below the Earth’s surface. The goal is to separate the valuable minerals from the non-economical rock.

To do this, overlying rock is blasted, and the material is placed in a truck and hauled to the surface. The material that contains valuable minerals (e.g., ore) is sent to the process plant, while the non-economical material (e.g., waste rock) is taken to the temporary waste rock facility. The waste rock will be used to backfill the pit once mining ends.

In the process plant (e.g., mill) the zinc/copper/lead ore goes through a conventional process of crushing, grinding, and floatation to separate the minerals. The gold/silver ore needs a few more additional steps before the valuable minerals are captured.

mining life cycle reclamation-postclosureWhen mining ceases, the site is reclaimed, and land is returned to a state compatible with adjacent properties. Examples of reclamation activities include removal of all buildings and infrastructure, capping and vegetating the tailings facility, backfilling the mine with waste rock. Postclosure monitoring lasts for 20 years following completion and approval of reclamation. The time may be shorter if the DEQ determines monitoring and maintenance activities to preserve the integrity of the area are complete. The DEQ requires an annual mining and reclamation report filed each year with the agency. The reports are available to the public.


WHAT IS A NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT?

Back Forty Mine NPDES

The Clean Water Act prohibits the discharge of pollutants through a point source without a National Pollutant Discharge Elimination System (NPDES) permit. A point source is any source that is ‘discernible, confined and discrete conveyance, such as a pipe, ditch, channel, tunnel, conduit, discrete fissure, or container.’ The purpose of the permit is to ensure that a facility meets a state's mandatory standards and the federal minimums for clean water.

The Back Forty Mine requires this permit to discharge treated water to the Menominee River. Permit conditions place limits on what we can release, monitoring and reporting requirements, and other provisions to ensure that the discharged water does not harm water quality or people's health. The MDEQ, EPA, and the State of Wisconsin have reviewed and determined the water we release will meet all water quality standards applicable to the river.

Other facilities that require NPDES permits include power plants, municipal treatment plants, manufacturers, and recycling facilities. The permit is valid for five years and is available for renewal to allow the discharge to continue.


AQUILA RESOURCES FILES FEASIBILITY STUDY FOR THE BACK FORTY MINE

Shares Outstanding: 337,568,556

TORONTO, Sept. 7, 2018 /CNW/ - Aquila Resources Inc. (TSX: AQA) ("Aquila" or the "Company") announced today that it has filed a technical report for its Back Forty Project in Michigan. The technical report is entitled "Back Forty Project, Michigan, USA – Feasibility Study" and was compiled by Lycopodium Minerals Canada Ltd with support from globally recognized experts and specialist consulting engineering companies in environmentally critical areas such as waste water treatment, tailings and waste rock management and mine design (the "Technical Report").

The Technical Report was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects and supports the disclosure outlined in Aquila's news release dated August 1, 2018. The Technical Report is available under the Company's profile on SEDAR at www.sedar.com and on its website at www.aquilaresources.com.

ABOUT AQUILA RESOURCES
Aquila Resources Inc. (TSX: AQA) is a development‐stage company with strategic assets in the Great Lakes Region. The Company's experienced management team is focused on advancing pre-construction and exploration activities for its 100%‐owned zinc‐ and gold‐rich Back Forty Project in Michigan.

Aquila's flagship Back Forty Project is an open pit volcanogenic massive sulfide deposit with underground potential located along the mineral‐rich Penokean Volcanic Belt in Michigan's Upper Peninsula. The Project contains approximately 1.1B pounds of zinc and 1M ounces of gold in the Measured & Indicated Mineral Resource categories, with additional upside potential. Aquila has received all State and Federal permissions required for the construction and commencement of operations at the Back Forty Project.

The Company has three other exploration projects: Reef Gold Project located in Marathon County, Wisconsin, the Bend Project located in Taylor County, Wisconsin and Aquila Nickel located in the Upper Peninsula, Michigan. Reef is a gold-copper property and Bend is a volcanogenic massive sulfide occurrence containing copper and gold.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release may contain 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.

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. These risks include those described under the heading "Risk Factors" in Aquila's most recent annual information form and its other public filings, copies of which can be under Aquila's profile at www.sedar.com. 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.


SENATOR TOM CASPERSON EXPLAINS MDEQ BILL PACKAGE

Stephenson, MI. April 2, 2018 - Senator Tom Casperson is proposing Senate Bills 652-654, which are designed to increase transparency and accountability at the Michigan Department of Environmental Quality("MDEQ") for all stakeholders. The aim is to let fact and science, rather than personal opinion, dictate permit decisions.

 

Source: TV6


AQUILA RESOURCES FILES TECHNICAL REPORT FOR BACK FORTY PROJECT

Shares Outstanding: 332,049,056

TORONTOMarch 26, 2018 /CNW/ - Aquila Resources Inc. (TSX: AQA) ("Aquila" or the "Company") announced today that it has filed a technical report for its Back Forty Project in Michigan. The technical report is entitled "Updated Mineral Resource Estimate and Technical Report on the Back Forty Project, Michigan, USA" and was prepared by P&E Mining Consultants Inc. and is dated effective February 6, 2018 (the "Technical Report").

The Technical Report was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects and supports the disclosure outlined in Aquila's news release dated February 7, 2018. The Technical Report is available under the Company's profile on SEDAR at www.sedar.com and on its website at www.aquilaresources.com.

ABOUT AQUILA RESOURCES
Aquila Resources Inc. (TSX: AQA) is a development-stage company with strategic assets in the Great Lakes Region. The Company's experienced management team is currently focused on advancing permitting and engineering activities for its 100%-owned zinc- and gold-rich Back Forty Project in Michigan.

Aquila's flagship Back Forty Project is an open pit volcanogenic massive sulfide deposit with underground potential located along the mineral-rich Penokean Volcanic Belt in Michigan's Upper Peninsula. The Project contains approximately 1.1 billion pounds of zinc and 1 million ounces of gold in the Measured & Indicated categories, with additional upside potential. Currently Aquila is working to secure the final State permit required to build and operate Back Forty while completing a Feasibility Study.

The Company has three other exploration projects: Reef Gold Project located in Marathon County, Wisconsin, the Bend Project located in Taylor County, Wisconsin and Aquila Nickel located in the Upper Peninsula, Michigan. Reef is a gold-copper property and Bend is a volcanogenic massive sulfide occurrence containing copper and gold.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
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, statements with respect to additional upside potential of the Back Forty Project, the status of a feasibility study in respect of Back Forty, the permitting status of the Back Forty Project and Aquila's future exploration and development plans.

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. These risks include those described under the heading "Risk Factors" in Aquila's most recent annual information form and its other public filings, copies of which can be under Aquila's profile at www.sedar.com. 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.


AQUILA RESOURCES FILES FOURTH QUARTER AND YEAR END 2017 FINANCIAL RESULTS

Shares Outstanding: 331,183,671

TORONTOMarch 2, 2018 /CNW/ - Aquila Resources Inc. (TSX: AQA) ("Aquila" or the "Company") announced today the filing of its financial results for the fourth quarter and year ended December 31, 2017.  All amounts, unless indicated, are reported in U.S. dollars.

FOURTH QUARTER HIGHLIGHTS

  • In December 2017, the Michigan Department of Environmental Quality ("MDEQ") deemed Aquila's wetland/stream/floodplain permit application for the Back Forty Project administratively complete and the regulatory technical review process can now move to the next stage. This is final required permit to operate and build the Back Forty Project.
  • The Company closed a financing transaction with Osisko Bermuda Limited ("OBL"), a wholly owned subsidiary of Osisko Gold Royalties Ltd (TSX & NYSE: OR) pursuant to which OBL has agreed to commit $65 million to Aquila through a $10 million private placement and $55 milliongold stream purchase agreement. OBL purchased 49,173,076 units of Aquila at a price of C$ 26 cents per unit for aggregate gross proceeds of $10 million (the "Strategic Investment"). Each unit consists of one common share and one-quarter of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company for C$ 34 cents until May 10, 2021. Concurrent with the Strategic Investment, the parties have entered into a Gold Purchase Agreement (the "Stream") whereby OBL will purchase 18.5% of the refined gold from the Project (the "Threshold Stream Percentage") until the Company has delivered 105,000 ounces of gold (the "Production Threshold"). Upon satisfaction of the Production Threshold, the Threshold Stream Percentage will be reduced to 9.25% of the refined gold. In exchange for the refined gold delivered under the Stream, OBL will pay the Company ongoing payments equal to 30% of the spot price of gold on the day of delivery, subject to a maximum payment of $600 per ounce. In consideration for the Stream, OBL will make four upfront deposit payments to Aquila totaling $55 million, including $7.5 million which was received on close.
  • The Company released the final results from the Company's 2017 exploration drill program at the Back Forty Project. The drilling program was designed to test the along-strike extension of the 2016 Zone massive sulphide. The results included 1.27 g/t gold, 15.78 g/t silver, 12.17% zinc, over 7.09 meters (drilled thickness) in LK-17-537.
  • The Company also completed its estimates of capital costs and operating expenditures for the Feasibility Study for the Back Forty Project. Key progress included frozen layout, optimized flow sheet and overall reduction to environmental footprint including water, wetlands and air impacts.
  • In December of 2017, the State of Wisconsin passed AB 499, the Mining for America Act which, amongst other things, repealed a decades old moratorium on non-ferrous mining in the state. Aquila is currently evaluating its strategy in Wisconsin where it has two earlier stage exploration assets.
  • As at December 31, 2017, Aquila had cash of $17.2 million and working capital of $15.5 million. This compared to cash of $1.4 million and working capital of $0.6 million at December 31, 2016. The working capital increase was due to the Strategic Investment and the first advance under the Stream in November 2017, the private placement in February 2017 and warrant exercises during Q3 2017 offset by the funding of the Company's permitting activities and development of the Feasibility Study.

POST QUARTER HIGHLIGHTS

  • In February 2018, the Company announced an updated Mineral Resource Estimate for the Back Forty Project (the "2018 Mineral Resource Estimate"). Highlights of the 2018 Mineral Resource Estimate include a 10% increase in tonnage in the Measured and Indicated Mineral Resource categories versus the prior 2013 Mineral Resource Estimate, a 12% increase in contained zinc and a 4% increase in contained gold. Contained silver, copper and lead also increased versus the 2013 Mineral Resource Estimate.
  • The Menominee Indian Tribe of Wisconsin recently filed a federal lawsuit in the Eastern District of Wisconsin against the Environmental Protection Agency and the US Army Corps of Engineers, claiming that the federal government should exercise jurisdiction over the wetlands permitting process currently being administered by the State of Michigan and require Aquila to obtain a federal wetlands permit. Both federal agencies rejected this argument when it was presented to them last year, and Aquila anticipates that their position that the State of Michiganis properly exercising its delegated authority to issue a Wetlands Permit will be vindicated by the federal court.
  • Appointed Michael Welch as Chief Operating Officer ("COO") effective March 1, 2018. As COO, Mr. Welch will assume responsibility for the Company's activities at its Back Forty Project in Michigan where he will lead operational readiness and help drive the seamless integration from project to operations. He will also oversee stakeholder engagement, compliance, sustainability, and the Company's regional strategy. Mr. Welch has more than 25 years of experience in the mining and mineral exploration industry covering grassroots exploration, mine geology/exploration, project management and executive operations management. Prior to joining Aquila, Mr. Welch was the Managing Director and President of the Board of Directors for Lundin Mining Corporation's ("Lundin") Somincor Operations, which include the Neves-Corvo copper and zinc mine in Portugal. Prior to that, he was responsible for the construction completion and start-up of operations for Lundin's Eagle Mine in Northern Michigan, U.S.A. Before joining Lundin, Michael was the Vice President of Operations for Xstrata Nickel's Raglan Operation in Quebec, Canada.

"2017 was a year of considerable progress and achievement for Aquila as we continued to advance the Back Forty Project towards a construction decision," said Barry Hildred, President and Chief Executive Officer of Aquila. "The Company will continue to work with the MDEQ to address any questions concerning the wetlands permit and we anticipate a permit decision in the first half of 2018. In parallel, we are moving ahead on a number of key initiatives including finalizing the Back Forty Feasibility Study, developing an exploration strategy for Back Forty and our earlier stage assets in Wisconsin, continuing to enhance our leadership team, and considering the strategic and financial options available to the Company."

ABOUT AQUILA RESOURCES
Aquila Resources Inc. (TSX: AQA) is a development-stage company with strategic assets in the Great Lakes Region. The company's experienced management team is currently focused on advancing permitting and engineering activities for its 100%-owned zinc- and gold-rich Back Forty Project in Michigan.

Aquila's flagship Back Forty Project is an open pit volcanogenic massive sulfide deposit with underground potential located along the mineral‐rich Penokean Volcanic Belt in Michigan's Upper Peninsula. The Project contains approximately 1.1 billion pounds of zinc and 1 million ounces of gold in the M&I categories, with additional upside potential. Currently Aquila is working to secure the final State permit required to build and operate Back Forty while completing a Feasibility Study.

The Company has three other exploration projects: Reef Gold Project located in Marathon County, Wisconsin, the Bend Project located in Taylor County, Wisconsin and Aquila Nickel located in the Upper Peninsula, Michigan. Reef is a gold-copper property and Bend is a volcanogenic massive sulfide occurrence containing copper and gold.

Barry Hildred, CEO
Aquila Resources Inc.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
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, statements with respect to the 2018 Resource Estimate, the status of a feasibility study in respect of Back Forty, the permitting status of the Back Forty Project and Aquila's future exploration and development plans.

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. These risks include those described under the heading "Risk Factors" in Aquila's annual information form dated March 15, 2017 and its other public filings, copies of which can be under Aquila's profile at www.sedar.com. 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.


MINING INDUSTRY SET FOR COMEBACK IN WISCONSIN

GREEN BAY, WI. Feb. 11, 2018 - Modern mining is very different from mining in the past. Today's mining is driven largely by technology and guided by regulations devoted to protecting the environment.

Virtually everything in our lives (food, education, entertainment, communication, clean energy, healthcare) is dependent on mining in some way. Basically, have a look at anything around you and apply the following simple rubric: “If it wasn’t grown, it was mined".

 

Source: NBC26 Green Bay


AQUILA RESOURCES UPDATES MINERAL RESOURCE ESTIMATE AT BACK FORTY DEPOSIT

TORONTOFeb. 7, 2018 /CNW/ - Aquila Resources Inc. (TSX: AQA) ("Aquila" or the "Company") announced today an updated Mineral Resource Estimate for its wholly owned Back Forty Gold-Zinc deposit in Michigan, USA (the "2018 Mineral Resource Estimate"). The 2018 Mineral Resource Estimate was completed by P&E Mining Consultants Inc. of Brampton, Ontario ("P&E").

The 2018 Mineral Resource Estimate replaces the Mineral Resource Estimate that was first disclosed in an Aquila news release dated February 3, 2013 (the "2013 Mineral Resource Estimate") and subsequently included in a Technical Report completed by Tetra Tech Inc. with an effective date of July 23, 2014, which is available under Aquila's SEDAR profile at www.sedar.com.

Read the full release on Aquila Resources' website.


QUESTIONS AND ANSWERS ABOUT MICHIGAN, WISCONSIN AND MINNESOTA

STEPHENSON, Mich. Dec. 19, 2017 – This week we came across three questions that we felt needed clarification. The questions span Michigan, Wisconsin and Minnesota.

1. Does the Michigan Department of Environmental Quality (“MDEQ”) have the authority to make wetlands permit decisions?

Yes. The EPA approved Michigan’s request for delegation of federal wetlands permits in the early 1980s. To maintain this authority, Michigan’s laws and regulations must remain consistent with the Clean Water Act (CWA). Even though MDEQ has this authority, they will gather input from various regulatory agencies, including from the EPA, regarding Aquila's wetland permit application for the Back Forty Mine.

2. Did Aquila Resources open offices in Wisconsin? 

No. The company may conduct exploration actives in Marathon and Taylor counties in late 2018. Prior to any activity taking place, Aquila will work with the State of Wisconsin and local officials.

3. Is Aquila developing three open-pit mines in Minnesota?

No. Aquila is not developing three open-pit mines in Minnesota.

If you have questions or concerns, please contact us at 906-753-9602, email us, or send us a message through our website.