Private Placement - Update

For Immediate Release

PRIVATE PLACEMENT - UPDATE

Vancouver, BC – March 14 , 2011

Apella Resources Inc. (TSX.V: APA), (U.S.A. OTCQX: APAFF), and (Frankfurt: NWN) wishes to update the Company’s News Release of March 7, 2011 wherein it announced that it had arranged a $716,350 nonbrokered private placement. The final amount of the private placement was $741,350 through the issuance of 3,406,750 non-flowthrough units at a price of $0.20 per unit and the issuance of 240,000 flowthrough units at a price of $0.25 per unit.

Each non-flowthrough unit consists of one common share and one share purchase warrant entitling the holder to purchase one additional common share of the Company for each warrant exercised at $0.20 for a period of 5 years. Each warrant issued will be subject to a forced exercise provision. Should the common shares of Apella trade at $0.40 or higher for a period of 10 consecutive trading days, the forced exercise provision will be triggered and the warrant holders will have 30 days in which to exercise the warrants or the warrants will automatically expire.

Each flowthrough unit consists of one 90% flowthrough common share and one non-flowthrough share purchase warrant entitling the holder to purchase one additional common share of the Company for each warrant exercised at $0.40 for a period of 18 months. Each warrant issued will be subject to a forced exercise provision. Should the common shares of Apella trade at $0.50 or higher for a period of 10 consecutive trading days, the forced exercise provision will be triggered and the warrant holders will have 30 days in which to exercise the warrants or the warrants will automatically expire.

All shares issued will be subject to a hold period for the first four months, per the policies of the TSX Venture Exchange and this private placement is subject to the approval of the TSX Venture Exchange. Proceeds from this private placement will be allocated to operating capital and proceeds from the exercise of the warrants and from the flowthrough shares will be allocated to exploration expenses attributable to Apella’s Canadian exploration properties.

Additional information is contained on the Company’s website at www.apellaresources.com.

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

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

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.