Aquila Resources Provides Permitting Update

Aquila Resources Inc. announced today that the United States Environmental Protection Agency has provided comments to the Michigan Department of Environmental Quality regarding the Company's wetland/stream/floodplain permit application for its Back Forty Project in Michigan.

The EPA has had 90 days since December 8, 2017, when the MDEQ deemed the Company's Wetlands Permit application administratively complete, to provide comments.

The EPA's opportunity to comment on the application is subject to strict statutory processes, regardless of the significance of the comments. The Michigan Department of Environmental Quality now has 90 days from March 8, 2018, to work with Aquila to resolve the comments made by the EPA and to provide the requested information.

This information request, which is required to be framed as an "objection" to the issuance of the Wetlands Permit by the MDEQ, raises issues that the Company believes have already been reviewed through other state-issued permits that have been granted for the Back Forty Project. Aquila believes the issues are readily addressable.

The Company is confident that it can work with the MDEQ within the prescribed timeframe to provide the additional information requested by the EPA.

Aquila has taken great care to design a project that meets and exceeds applicable environmental standards and is committed to ensuring that the Back Forty Project is a safe, disciplined operation that promotes and supports local community socio-economic development and is protective of the environment.

About Aquila Resources Inc.:

Aquila Resources Inc. 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.