Apella Resources to Extend Expiry Date of Certain Warrants

NEWS RELEASE

Apella Resources to Extend Expiry Date of Certain Warrants

Vancouver, BC – May 16, 2011

Apella Resources Inc. (TSX.V: APA); (OTCQX: APAFF) (Frankfurt Symbol: NWN) and its Board of Directors announce that the Company intends to extend the expiry date of 3,730,000 warrants originally issued on November 18, 2009 and which are currently set to expire on May 18, 2011. The proposed new expiry date is November 18, 2012. The exercise price of these warrants will remain unchanged at $0.20.

The extension of the warrant term is subject to the policies and acceptance of the TSX Venture Exchange.

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

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

SEC Exemption 12(g)3-2(b) File no. 82-3822, Standard & Poors Listed, Dun & Bradstreet Listed

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.