TORONTO, ONTARIO--(Marketwire - Oct. 14, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

AQUILA RESOURCES INC. (News - Market indicators)(OTCQX:AQARF)(FRANKFURT:JM4A) ("Aquila" or the "Company") is pleased to announce that it has entered into an agreement with All Group Financial Services Inc. (the "Agent") to complete a private placement offering (the "Offering"), on a best efforts basis, of up to 6,000,000 common shares of the Company to qualified investors at a price of $0.50 per common share for aggregate gross proceeds of $3,000,000. The Company will pay the Agent a cash commission equal to 8% of the gross proceeds, a work fee of 200,000 broker warrants, and will issue to the Agent upon closing broker warrants equal to 8% of the number of common shares issued under the Offering.

The securities issued in the private placement will be subject to a hold period of four months plus one day from the closing date.

The financing is scheduled to close on or about October 31, 2011 and is subject to regulatory approval and completion of definitive documentation. The proceeds of the Offering will be used for general working capital of the Company. The common shares will be offered on a private placement basis in all of the Provinces of Canada, and may also be offered on a private placement basis to qualified investors in other jurisdictions worldwide.

"With the Back Forty Project progressing, and our pipeline of Alliance Projects funded by HudBay growing, as well as our 100% gold projects producing excellent results – Aquila is poised for dramatic growth in the future," commented Thomas O. Quigley, CEO and President of Aquila.

Thomas O. Quigley is the Qualified Person for Aquila Resources as described in National Instrument 43-101 and is responsible for the contents of this release.

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The securities being offered have not and will not be registered in the United States under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws, and may not be offered or sold within the United States or to or for the account of benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to purchase securities in the United States.

Shares Outstanding: 86,213,725