ASX RELEASE 27 July 2011

Isaac Pl ains Coal Mine ? Normal Shipments to Resume

Aquila Resources Limited (ASX:AQA ?the Company? or ?Aquila?) refers to the various recent announcements regarding the dispute between its wholly owned subsidiary IP Coal Pty Ltd ("IP Coal") and Vale Australia (IP) Pty Ltd ("Vale") as to the basis on which future separate shipments of coal can be sent from the Isaac Plains Coal Mine ("Isaac Plains"). The most recent announcement was on

13 July 2011 which confirmed that a single upcoming shipment by IP Coal would proceed.

Aquila is pleased to today announce that Vale and IP Coal have reached an agreement which effectively puts aside the difference of opinion between them regarding the ability to make separate shipments of coal from Isaac Plains. This means that normal shipments of coal will now resume.

The agreement applies until 31 March 2012. IP Coal and Vale are continuing to pursue options for a longer term resolution of the issues regarding separate shipments of coal from Isaac Plains.

Aquila will keep the market informed of developments in respect of the above.

Tony PoliExecutive Chairman

For further information regarding this announcement, please contact Tony Poli.

Telephone: (08) 9423 0111

Facsimile: (08) 9423 0133

Email address: mail@aquilaresources.com.au

Visit us at: www.aquilaresources.com.au

Perth: Level 2 Aquila Centre, 1 Preston Street, Como WA 6152 Telephone (61) 8 9423 0111 Facsimile (61) 8 9423 0133Brisbane: Level 18, 10 Eagle Street, Brisbane QLD 4000 Telephone (61) 7 3229 5630 Facsimile (61) 7 3229 5631Jakarta: Level 2 Zone B Wisma Raharja, JI. TB Simatupang Kav 1, Jakarta, Indonesia 12560 Telephone (62) 21 7884 7214 Facsimile (62) 21 7884 7215

Johannesburg: Block C, Ground Floor, 28 Sloane Street, Bryanston 2191, Gauteng, South Africa (27) 11 4631340 Facsimile (27) 11 4635083