AQUILA RESOURCES INC ORD AQARF

Yup...that's right....NEWS RELEASE

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Well folks, at least we have some news! They must have been listening. Press Release Source: Aquila Resources Inc. Aquila Resources Inc. Resumes Drilling At Back Forty Project Thursday August 3, 4:43 pm ET TORONTO, ONTARIO--(CCNMatthews - Aug. 3, 2006) - Aquila Resources Inc. (TSX VENTURE:AQA - News; FWB:JM4A) today announced that it has resumed drilling at its Back Forty Project in the Upper Peninsula of Michigan. Thus far in 2006, 21 holes have been drilled with results reported for the first 14 holes in previous press releases, with results for the additional 7 holes (LK-85-LK-91) still pending. In the current phase of drilling a minimum of eight additional holes (LK-92 to LK99) are planned. In step out drilling to date, three holes, LK-86, LK-90, and LK-91 intersected significant intervals of Main Zone base metal mineralization. LK-86 encountered two separate intervals of the Main Zone massive (greater than 90%) sulfide of 8.1m and 13.5m. LK90 intersected 14.6m of massive (70-95%) sulfide. In a vertical hole, LK91 hit 18.8m of main zone massive sulfide (80-95% sulfide) in what is interpreted to be a thickened section of mineralization in an anticlinal hinge. Two holes targeted to test the downdip extension of the Tuff Zone also encountered significant intercepts of base- metal rich massive (50-70%) sulfide. LK-87 hit 3.27m and LK88 encountered 3.32m of Tuff Zone massive sulfide. Assays from holes LK-85 to LK-91 are being completed at ALS Chemex Labs in Thunder Bay, Ontario. Thomas O. Quigley is the President and Qualified Person of Aquila Resources for purposes of National Policy 43-101. 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: 46,973,233 The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this release. Contact: Robin Dunbar Aquila Resources Inc. (Toronto) CFO [phone] [e-mail] Thomas O. Quigley Aquila Resources Inc. (U.S.) President [phone] [e-mail] Investor Relations Clark Avenue Co. Inc. [phone] [e-mail] -------------------------------------------------------------------------------- Source: Aquila Resources Inc.