Private Placement Closed and Options Issued to Director

FOR IMMEDIATE RELEASE

PRIVATE PLACEMENT CLOSED AND OPTIONS ISSUED TO DIRECTOR

Vancouver, BC – January 20, 2011

Apella Resources Inc. (TSX.V: “APA”), (U.S.A. OTCQX: “APAFF”), and (Frankfurt Symbol: “NWN”) announces that the Company has closed the private placement announced December 23, 2010. Proceeds of $209,700 were received pursuant to the placement of 1,165,000 flow-through units at $0.18 per unit. Each unit consists of one common share and one share purchase warrant entitling the holder to purchase one additional common share of the Company at $0.20 until July 18, 2012. All shares issued with regard to this private placement are subject to a hold period which expires May 19, 2011.

The Company also announces that 450,000 incentive stock options have been granted to Robert Collette, a director of the Company. 200,000 options are at a price of $0.20 per share and have an expiry date of December 2, 2013. 250,000 options are at a price of $0.21 per share and have an expiry date of January 20, 2013.

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.