Capella Announces Results on Labrador Copper-Nickel-Cobalt Exploration

Capella Announces Results on Labrador Copper-Nickel-Cobalt Exploration

CAPELLA RESOURCES LTD. announce assay results from the 2008 sampling program on its Labrador Base Metals Initiative. The company is actively exploring for nickel, copper, cobalt and other metals in central Labrador. Labrador is largely underexplored and hosts several new nickel and base metal discoveries, including Voisey’s Bay nickel-copper-cobalt deposit.

The Property was flown by a wide-ranging aerial geophysical program during the spring and summer of 2007. Aeroquest Ltd. collected more than 4,500 line-kilometres of high resolution magnetic, electromagnetic (“EM”), and radiometric data in Labrador. From this data, over 50 nickel/copper-type and other EM anomalies were identified. A total of 18 of the top ranked EM anomalies were targeted for ground follow-up. A nine-person team was dispatched in August, 2008 to validate and rank airborne anomalies at five project locations: 1) Harp Lake, 2) Snegamook Lake C & D, 3) Pocketknife Lake, 4) Leticia Lake A & B and 5) Wilson Lake A, B, & C.

A total of 99 grab samples were collected from the Property and analyzed by Activation Laboratories Ltd. in Ancaster, Ontario, for a suite of 62 major and trace elements by the ICP-MS method. The study analyzed base and precious metal, and trace element concentrations to obtain a more complete understanding of mineralization.

Five main diamond-drilling target areas were defined based on geophysics, geology and assay results. The target areas are as follows:

1. Snegamook C: strong magnetic and EM anomaly hosted by carbonate metasediments. Peak copper assays in excess of 1% were discovered. 2. Snegamook D: 5 strong EM and magnetic anomalies. Intersection of 30 metres of massive sulphide with graphite during the 2007 diamond-drill program and grab samples up to 0.36% Cu with associated trace elements are suggestive of a VMS-type environment. 3. Wilson Lake B contains 9 distinct EM targets. When combined with historical data, the 2008 sampling gave 17 samples with greater than 0.1% Cu with peak values of 0.47% Cu. 4. Wilson Lake C contains 5 main anomalies with peak copper assays of 0.41%.

5. Wilson Lake A contains 4 anomalies with peak copper assays of 0.44%.

The portion of the Property pertaining to Wilson Lake contained a total of 18 strong EM conductors and several weaker ones. Copper values up to 0.47% have been reported. The presence of magnetite in mineralized zones has good correlation with magnetic anomalies. Major and trace element associations correlate well with IOCG mineralization.

Structural, geological and geophysical analyses are under way to establish drilling plans for 2009. Planning is complete for Snegamook C with 8 diamond drill-hole locations proposed. Additional geological mapping and rock sampling will be carried out in early 2009 in preparation for drilling. The Company anticipates that fieldwork in 2009 will start in Wilson Lake with access from the Trans-Labrador Highway.

Brian Cole, B.Sc., P.Geo. is a qualified person as defined by National Instrument 43-101 and has reviewed the technical information reported in this news release for accuracy.

The Company is a publicly traded, junior exploration company with a 100% interest in the Nevada and Dorado Gold and Copper properties located in the Maricunga Gold and Copper District approximately 700 kilometres northwest of Santiago, Chile. The properties are comprised of ten exploration claims and six exploitation claims totaling a cumulative 3,500 hectares in area. The Company holds a 100% interest in the Tinton Gold Project located 15 kilometres west-northwest of the famous and historic Homestake Mine in the Black Hills at Lead, South Dakota. The property consists of 1,270 hectares contained in 157 unpatented mining claims. The Company also holds over 25,000 mineral exploration claims covering an aggregate land area of over 1.2 million acres (495,264 hectares) in Atlantic Canada (Nova Scotia, New Brunswick and Newfoundland and Labrador).

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