Apella Closes Private Placement with Mineralfields Group

Vancouver, BC – March 1, 2011

Apella Resources Inc. (TSXV: APA; OTCQX: APAFF; Frankfurt: NWN) is pleased to announce the closing of a non-brokered private placement of $500,000 with the MineralFields Group. Pursuant to the private placement 2,000,000 units consisting of one flow-through common share and one-half of one non-flow-through share purchase warrant entitling the holder to purchase one additional common share of the Company for each full warrant exercised were issued to the placees at a price of $0.25 per unit. Each full warrant entitles the holder to purchase one additional common share of the Company at a price of $0.35 per share for a period of 18 months expiring on August 23, 2012 and is subject to a forced exercise provision. Should the common shares of Apella Resources trade at $0.45 or higher for twenty consecutive days after the initial hold period has expired the forced exercise provision will be triggered and the warrant holders will have thirty days from the date of receipt of written notice within which to exercise the warrants or the warrants will automatically expire. All shares issued and any shares acquired pursuant to the exercise of the warrants are subject to a hold period expiring June 24, 2011. A finder’s fee of $40,000 was paid to Limited Market Dealer Inc. The proceeds from the private placement will be used for exploration on the Company’s Vanadium-Iron-Titanium projects in Quebec.

“We are very pleased to be entering into this relationship with MineralFields Group”, said Patrick O’Brien, President and CEO. “This is an important milestone in the growth of Apella Resources Inc. and we look forward to working with MineralFields Group as we develop our Vanadium-Iron-Titanium holdings in the Province of Quebec.”

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flowthrough limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Fund Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

ON BEHALF OF THE BOARD OF DIRECTORS OF APELLA RESOURCES INC.

“Patrick D. O’Brien Patrick D. O’Brien, ICD.D – President

NEITHER 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.