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ASX RELEASE Washpool Coking Coal Project Initial Resource

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					ASX RELEASE                                                  1 July 2008




                           Washpool Coking Coal Project
                   Initial Resource Statement 138Mt Insitu Coal

   Aquila Resources Limited (“Aquila” or “the Company”) is pleased to announce the initial resource
   statement for its 100% owned Washpool Coking Coal Project (Washpool).

   The Washpool project area is located in Central Queensland, approximately 260km west of
   Rockhampton, approximately 100km by road northeast of Comet and immediately west of the Curragh
   Mine operation, owned by Wesfarmers Limited.




                                       Figure 1 Washpool Coking Coal Project Locality

   The primary coal resources occur in the Scorpio and Centaur seams contained within the Burngrove
   Formation. The Burngrove Formation occurs conformably beneath the Rangal Coal Measures that
   host the Curragh and Blackwater mining operations.

   Within the project area, the coal resources are contained within a perched basin, approximately 6km
   long by 3km wide. Maximum overburden cover is 60m in the middle of the basin, with the coal
   extending to sub crop at the basin margins. The coal seam has an average overall thickness of
   approximately 6m, including partings and stone bands, the seams are moderate ash, highly banded,
   however, show good coking coal properties.




   Perth: Level 2 Aquila Centre, 1 Preston Street, Como WA 6151 Telephone (61) 8 9423 0111Facsimile (61) 8 9423 0133
   Brisbane: Level 10, 241 Adelaide St, Brisbane QLD 4000 Telephone (61) 7 3414 6888 Facsimile (61) 7 3414 6887
   Thabazimbi: C/O Platina and Lood Avenue, Thabazimbi 0380, South Africa Telephone (27) 14 772 3337 Facsimile (27) 14 772 3337
   Northern Cape: Stand 585 Opwag, Groblershoop, Northern Cape, South Africa Telephone (27) 798 816 459 Facsimile (27) 866 838 065
Salva Resources Pty Ltd was commissioned by the Company, to independently develop a geological
model of the Coal Resources of the Washpool Coking Coal Project, based on data supplied by Aquila.
Open cut insitu coal resources have been prepared for 6 seam plies intersected at Washpool (A to F).

The purpose of this work was to complete:

             •    An assessment of the Coal Resources in accordance with the Australasian Code for
                  Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
                  Code), 2004, for public reporting; and

             •    A qualification of the potential utilisation of the Coal Resources within the mining
                  leases, considering all aspects affecting the recovery of the insitu Resources. The
                  benchmark for this estimation is the Australian Guidelines for Estimating and
                  Reporting of Inventory Coal, Coal Resources and Coal Reserves, 2003

Total Insitu Coal Resources within the Washpool Coking Coal Project area, are estimated at 138.1Mt.
The Resources fall within the Indicated and Inferred confidence categories as summarised in Table 1.

                                 Table 1 Summary of Insitu Coal Resources

                                                      Insitu Coal Resources (Mt)
         Seam                                                                          Total
                                Indicated                 Inferred
                                                                               Indicated and Inferred
            A                       5.6                      10.0                       15.6
            B                       8.6                      13.6                       22.2
            C                       6.0                      11.0                       17.0
            D                       7.3                      17.3                       24.6
            E                       6.3                      12.8                       19.1
            F                        -                       39.6                       39.6
          Total                    33.8                     104.3                      138.1

Raw coal quality results are summarised on Table 2.

                                   Table 2 Summary of Raw Coal Qualities

                                                           Raw Coal Quality Summary
          Seam                                                      Volatile
                                    IM             Ash                           Sulphur       Phosphorous
                                                                    Matter
                                    %               %                               %               %
                                                                      %
 A Seam                            1.6             48.4              13.6          0.34            0.027
                                                                                   0.48
 B Seam                            1.3             33.4                 17.0                       0.028
 C Seam                            1.0            39.8              15.7            0.44           0.027
 D Seam                            1.2            44.2              14.8            0.67           0.048
 E Seam                            0.9            34.6              17.1            0.60           0.012
 All Samples                       1.2            39.4              15.8            0.52           0.029
 Range (All samples)             0.6-5.4        13.8-63.3         10.7-22.0      0.19-1.72      0.000-0.143

Note:   All results air dried basis and reported as weighted averages

Whilst the data shows high overall average ash contents of 39%, overall sulphur and chlorine levels
are acceptable, averaging 0.5% and 0.03% respectively. Phosphorus in all seams is encouragingly
low with overall levels less than 0.03%.




                                                             2
Potential Product Coal Quality

The results to date from the 2007 Washpool coal quality indicates that the Scorpio seam in the
Burngrove Coal Measures is generally a medium to high volatile rank coal, moderate to high product
ash with high CSN values of 9.0, indicating a Coking coal product is possible to be produced from the
coal. A strength of the coal would be a particularly low sulphur and Phosphorous content

Ongoing exploration and coal quality and study work at Washpool and Mt Crocker will focus on the
following;

    •    Completion of the current Concept and Options Study;
    •    The distribution of ash throughout the resource area, in particular in the lower strip ratio north,
         west and south margins;
    •    Determination of Coke Strengths; and
    •    Exploration of other similar drilling targets further south within the Mt Crocker exploration
         permit.

To date, the work completed has shown the variability in quality throughout the resource in particular
with respect to ash. Whilst yield is a key issue for this resource as a standalone project, coal quality
test work to date, indicates the potential for a higher ash, hard coking coal product. Options currently
being considered for open cut development include both Coking and Thermal product splits.

As part of its progression of the project, Aquila has lodged a Mineral Development Lease application
over the part of the Washpool resource area.




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 Washpool 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 Washpool Coal Resources, is
compiled by Mr Blair Richardson and modelled and reviewed by Mr Lyon Barrett. Mr Richardson is a full time
employee of Aquila Resources Ltd, with 25 years experience in geology and over 15 years experience in resource
evaluation. Mr Richardson is a member of The Australasian Institute of Mining and Metallurgy and 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 Richardson holds shares in Aquila Resources Ltd.

Mr Barratt is a full time employee of Salva Resources and has over 15 years experience in geology and over 10
years experience in resource evaluation. Mr Barrett is a member of The Australasian Institute of Mining and
Metallurgy and 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 Richardson and Mr Barrett consent 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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