Highlights

?        Three Mining Lease applications lodged with the Queensland Department of Mines and Energy

?        Pre-Feasibility Study currently in progress

?        Potential for the development of a world class metallurgical coal mining operation by 2014 targeting initially up to 7Mtpa of export coking coal with the potential to increase to 9Mtpa of export coking coal and other PCI products

Aquila Resources Limited (ASX:AQA ?the Company?) is pleased to announce that applications have been lodged with the Queensland Department of Mines and Energy for three Mining Leases in relation to the Belvedere Coal Project in which the Company has a 24.5% interest and which is managed by Belvedere Coal Management Pty Ltd, a subsidiary of Vale Australia Pty Ltd, a wholly owned subsidiary of Vale.

The Belvedere Coal Project is located in the southern part of the Bowen Basin region near the town of Moura in Central Queensland. The combined area of the Mining Lease applications is approximately 6,000ha and is bounded to the east by the Dawson Mining complex. As shown below the Mining Lease applications comprise Belvedere No.1 (MLa 80148), Belvedere No.2 (MLa 80149) and Belvedere No.3 (MLa 80150) which cover a portion of the existing Belvedere Coal Project EPC 783 and are the areas proposed for the development of mining operations.

Belvedere Coal Project Location and Mining Lease Applications

The Mining Lease applications are an integral stage in the advancement of the Belvedere Coal Project as part of the Pre-Feasibility Studies which are currently in progress, comprising further development exploration programmes, coal quality analysis, 3-D seismic assessment and related mining and infrastructure studies.  In addition, planning is underway for the commencement of environmental baseline studies and related community consultation activities with all key stakeholders in this significant project development.  Provided that all of the regulatory and internal approval processes can be satisfied, there is potential for development of a world class metallurgical coal mining operation by 2014.

Belvedere Coal Project Conceptual Longwall Configuration

The three mining leases applied for are proposed to be developed as a multi-longwall underground mining operation initially producing 7Mtpa of export coking coal and other PCI products with the potential to increase up to 9Mtpa for export via the planned Wiggins island Coal terminal near Gladstone.

As reported on 11 June 2008, an estimate of resources has revealed that EPC 783 contains an Indicated and Inferred Coal Resource of 3.866 billion tonnes.

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

The estimates of Coal Resources for the Belvedere Coal Project presented in this announcement have been carried out in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), 2004, prepared by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy (AusIMM) and The Australasian Institute of Geoscientists and Minerals Council of Australia, December 2004. The information in this announcement that relates to Belvedere Coal Resources, is based on information reviewed by Mr Pat Hanna, who is a Fellow of The AusIMM and was previously an employee of SRK Consulting. Mr Hanna has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the JORC Code. Mr Hanna consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.

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