Capella to Begin Trading on Post-Consolidated Basis

CAPELLA RESOURCES LTD. announces that effective as of the opening of trading of the TSX Venture Exchange on Wednesday December 24, 2008, the Company will consolidate its common share capital on the basis of one (1) post-consolidated common share for every ten (10) pre-consolidated common shares held. The Company’s name will remain the same but the Company’s trading symbol will change from CPS to KPS. The Company’s new CUSIP number is 13960J208.

The Consolidation was approved by the shareholders at the Company’s Special Meeting held on November 28, 2008. As at the date of the Special Meeting, the Company had 66,832,174 common shares issued and outstanding and the Company will have 6,808,218 common shares issued and outstanding post-consolidation. The Consolidation was approved by the Exchange on December 23, 2008.

Letters of transmittal with respect to the Consolidation were mailed to all registered shareholders of the Company on December 23, 2008. All registered shareholders will be required to send their respective certificates representing the pre-consolidated common shares along with a properly executed letter of transmittal to the Company’s transfer agent, Computershare Investor Services Inc., in Toronto, Ontario, all in accordance with the instructions provided in the letter of transmittal. Additional copies of the letter of transmittal can be obtained through Computershare (Shareholder Services 1-800-564-6253). All shareholders who submit a duly completed letter of transmittal along with their respective pre-consolidated common share certificate(s) to Computershare, will receive a post –consolidated common share certificate.