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Press Release

TORONTO, Dec. 20, 2018 – Aquila Resources Inc. (TSX: AQA) (“Aquila” or the “Company”) is pleased to announce that on December 19, 2018, the U.S. District Court for the Eastern District of Wisconsin dismissed the federal lawsuit brought by the Menominee Indian Tribe of Wisconsin (the “Tribe”) challenging the Environmental Protection Agency and the U.S. Army Corps of Engineers’ failure to exercise jurisdiction over Aquila’s wetlands permit (the “Wetlands Permit”) for its Back Forty Project in Michigan.

The Michigan Department of Environment Quality previously issued Aquila the Wetlands Permit on June 4, 2018, but the Tribe claimed that the federal government is responsible for issuing the Wetlands Permit under Section 404 of the Clean Water Act. The Court held that the Tribe could not challenge the federal government’s refusal to exercise jurisdiction over the Wetlands Permit under the Administrative Procedures Act or the Clean Water Act.

Aquila will continue its efforts with the State of Michigan and local communities to demonstrate our commitment to environmental responsibility and sustainable resource development that benefits all stakeholders. The Back Forty Mine will be a safe, disciplined operation that promotes and supports local community socio-economic development and is protective of the environment.

ABOUT AQUILA RESOURCES
Aquila Resources Inc. (TSX: AQA) is a development‐stage company with strategic assets in the Great Lakes Region. The Company’s experienced management team is focused on advancing pre-construction 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 1.1B pounds of zinc and 1M ounces of gold in the Measured & Indicated Mineral Resource categories, with additional upside potential. Aquila has received all State and Federal permissions required for the construction and commencement of operations at the Back Forty Project.

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.

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