Shares Outstanding: 183,201,174

TORONTO , March 31, 2014 /CNW/ - Aquila Resources Inc. (TSX: AQA) (OTCQX: AQARF) (FKT: JM4A) ("Aquila"), a development-stage company advancing the gold and zinc-rich Back Forty Project in Michigan's Upper Peninsula, reported its fourth quarter and year-end corporate and financial results for the periods ended December 31, 2013. A full copy of Aquila's Management Discussion and Analysis, and Financial Statements for the year ended December 31, 2013 are available on the Company's website and on SEDAR at www.sedar.com. Unless otherwise noted, all figures in this news release are reported in Canadian dollars.

"Our focus in 2013 was to regain control of the Back Forty project while re-capitalizing the company in order to fund future development. In 2014, we will look to optimize the project's potential, by completing a revised PEA to better define the significant upside potential of the deposit, and ramp-up our permitting activities," said Barry Hildred , CEO of Aquila Resources. "Today, armed with a 100% interest in Back Forty, an infusion of capital and a strengthened leadership team, we are well-positioned to re-start Back Forty's development," said Mark Burridge , Aquila's Chairman.

2013 Corporate Highlights

• On November 7, 2013 , Aquila announced several proposed transactions, which were subsequently closed on January 16, 2014. The transactions consisted of:
  • a business combination whereby Aquila acquired all of the outstanding shares of REBgold Corporation ("REBgold") (RBG.V) in exchange for the Company's shares on a 1-for-1 basis;
  • an agreement with Baker Steel Capital Managers LLP, on behalf of investment funds managed or controlled by it ("Baker Steel", REBgold's largest shareholder), whereby Baker Steel invested CAD $4.5 million in the combined entity as part of a CAD $4.85 million private placement financing; and,
  • a binding agreement with Hudbay that resulted in Aquila acquiring its 51% interest in the Back Forty Project, effectively giving the Company 100% ownership of the Project.
• In February 2013 , an updated NI 43-101 compliant resource estimate for the Back Forty Project was completed. The updated mineral resource expanded on and incorporated parameters derived from a 2012 PEA that utilized the 2010 mineral resource estimate. The updated resource estimate, which will provide the basis for future economic evaluations of Back Forty, delineated an:
  • open pit M&I resource of 9.65Mt, at 2.07 g/t Au and 2.47% Zn, an increase of 28% and,
  • underground M&I resource of 5.49Mt at 1.97 g/t Au and 4.1% Zn
  • underground Inferred resource of 2.18Mt at 2.03 g/t Au and 2.15% Zn.
• On June 26, 2013 , Aquila completed a private placement for net proceeds of $579,752 by issuing 5,890,000 units consisting of a common share and a half warrant at a price per unit of CAD $0.10 ;
• In 2013, Aquila suspended funding on non-core projects and focused on cost containment. The Company retained ownership of three projects in the Great Lakes Region, including: the now 100% owned flagship Back Forty Project, a development stage, high-grade, poly-metallic, VMS deposit located in the state of Michigan and, the Reef Gold Project and the Bend Copper-Gold Project; and,
• In March 2013 , Aquila strengthened its management team by appointing Barry Hildred to Chief Executive Officer of the Company, an experienced capital markets executive able to guide Aquila through the next phase of development at Back Forty.

Outlook

Aquila's focus in 2014 will be on re-commencing development of the Back Forty Project. Key milestones for 2014 include:

• Completing a series of trade-off studies and developing a NI 43-101 updated PEA for the Back Forty project with Tetra Tech WEI Inc. The trade-off studies will look at a number of mine-plan scenarios and will choose the optimal development path for Back Forty. The Company expects that the results of this study will be available in Q2 2014;
• Commencing a small exploration program on previously identified near-mine targets in Q3 2014. A number of geophysical anomalies have been identified peripheral to the known mineralization at Back Forty, and detailed ground geophysics and diamond drilling are planned to test these high priority targets; and,
• Subject to market conditions and available Capital, ramp-up activities related to its permit application for Back Forty with the Michigan Department of Environmental Quality in H2 2014.
  • To date, the Company has completed a number of the required test programs and background studies necessary to support its permit submission. Aquila continues to use the services of Foth Infrastructure and Environment, LLC based in Green Bay and is targeting a submission date in the first half of 2015.

About Aquila Resources
Aquila Resources Inc. (AQA.TO) (AQARF) (JM4A.F) is a mineral exploration Company focused on the development of high-grade deposits along the Penokean VMS belt in the Great Lakes Region. The Company is led by an experienced management team that has identified significant ore deposits over the last 30 years.

About the Back Forty Project
The Back Forty Project is a high-grade, poly-metallic deposit located in the Penokean Volcanic Belt in the Great Lakes Region. A 2012 preliminary economic assessment, based on a 2010 resource estimate, provided encouraging project economics, including a $73.6M net present value @ 8% and an internal rate of return of 18.2%. Results from the 2012 drilling program demonstrate potential for continued resource expansion at Back Forty. A 2013 updated resource estimate delineated a Measured and Indicated (M+I) resource of 15.1 million tonnes (Mt) and an Inferred Resource of 2.3Mt. The updated M+I resource estimate contains 987,236oz Au, 11.91Moz Ag, 1.02Blbs Zn, 74.3Mlbs Pb and 110.4Mlbs Cu. An additional 155,885oz Au, 1.99Moz Ag, 113.3Mlbs Zn, 17.2Mlbs Pb and 18.6Mlbs Cu are included in the Inferred category.

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

This press release contains certain forward-looking statements. 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". Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Aquila and REBgold 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. Neither Aquila nor REBgold undertakes any obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents Aquila's and REBgold'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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