Further to the ASX announcements on 23 May 2008 and 19 August 2008, Aquila Resources Limited (?Aquila? or the ?Company?) is pleased to announce that the Federal Court of Australia has today ordered a meeting of Aquila shareholders to be convened to consider the scheme of arrangement (?Scheme?) for the demerger of certain of the Company?s exploration interests into a new company, Aquila Exploration Limited (?AEL?).  This meeting will follow a general meeting of Aquila shareholders to consider a capital reduction resolution required in connection with the demerger.

The shareholder meetings will be held on Friday 31 October 2008 at the Parmelia Hilton, 14 Mill Street, Perth, commencing at 10.00am (Perth time).

BDO Kendalls Corporate Finance (WA) Pty Ltd , who were commissioned by Aquila to prepare an Independent Expert?s Report on the Scheme, have concluded that the advantages of the Scheme outweigh its disadvantages and that the Scheme is in the best interests of Aquila?s shareholders.

Full details of the demerger, including a copy of the Independent Expert?s Report and details on how to vote at the shareholder meetings, are set out in the Scheme Booklet which is expected to be posted to Aquila shareholders on or about 19 September 2008.

The indicative timetable for the demerger is as follows:

Tony Poli

Executive Chairman

For further information regarding this announcement, please contact Tony Poli.

Telephone:           (08) 9423 0111   

Facsimile:             (08) 9423 0133   

Email address:     mail@aquilaresources.com.au

Visit us at:              www.aquilaresources.com.au

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Issued by

Purple Communications

Level 3, 28 Kings Park Road, WEST PERTH WA 6005

Ph: 08 9485 1254     Fax: 08 6263 0455

purple@purplecom.com.au