Capella's Nevada property is located on the Maricunga Gold Belt in the County of Copiapo, Third Region, Republic of Chile, approximately 700 kilometres northwest of Santiago, Chile. The property is 100% owned by Capella and comprises seven claims for a 1900 hectare landholding. The Nevada Gold-Copper Project is strategically located between Exeter Resource Corporation's ("Exeter") Caspiche Project and Kinross Gold's Maricunga (Refugio) Mine that is reported to host a gold resource of over 6 million ounces. Exeter recently reported a diamond drill intersection (CSD-016) of 627 metres of 1.1 g/t Au and 0.43% Cu marking the nearby Caspiche as a major gold-copper discovery only three kilometres away from the Nevada property.



Gold enrichment on the Nevada property is hydrothermal and associated with a massive (200 metre by 400 metre) breccia body with vuggy silica alteration that has intruded dacitic volcanic rocks. This gold mineralization at Nevada is consistent with high sulphidation gold systems like Veladero, Pierina and Yanacocha and provides excellent potential for Capella as a near surface gold-copper deposit.

Exploration work completed by Capella on the Nevada property includes an historical compilation, Induced Polarization ("IP") and Ground Magnetic surveys and a detailed multi-spectral remote sensing study. Recent results from the IP and Magnetic surveys have outlined an half kilometre-diameter circular magnetic high in the western area of the claims group,interpreted as an intrusive body. The results of the detailed remote sensing study have established a two kilometre-diameter intensely altered zone to the immediate east of the magnetic high. This is the newly discovered high priorty target area at Nevada. Capella is has a planned 2,000 metre drilling program for the new target area and expects to commence drilling in early 2009.

Mineral Mount ISA Chile S.A. ("MMICSA") controlled the Nevada property until 1994 and subsequent to that Sociedad Marin Asesorias Geologicas Mineras Ltda. ("SMAGML") held mineral title. Historical exploration work completed by SMAGML in 1988 included a surface sampling program resulting in the discovery of a silica-alunite altered zone on the eastern margin of the property that yielded 0.1 to 1.0 g/t gold and 1 to 4 g/t silver. J.C. Toro, 1991, reported the completion of three reverse circulation drill holes (486 metres) in 1990 and gold values as high as 6.4 g/t gold. A table of results can be found below. In 1994 MMICSA collected 13 outcrop samples which yielded values up to 10.32 g/t gold and 51.0 g/t silver. No mineral resource has been estimated to date.

Nevada Property Reverse Circulation Drilling Highlights (from Toro, J.C., 1991)

Drill Hole	Depth (m)	Mineralization Intervals (True Width Unknown)	Description
DDH-T-1	119	16.8m @ 0.08 g/t Au	Manto
DDH-T-2	124	8.0m @ 0.30 g/t Au 4 g/t Ag	Manto
		10.0m @ 0.37 g/t Au 2 g/t Ag	Manto
		2.0m @ 1.30 g/t Au 1 g/t Ag	Vein
DDH-T-3	243	16m @ 0.40 g/t Au 3 g/t Ag
		10.0m @ 1.57 g/t Au 62 g/t Ag (including 2m @ 6.4 g/t Au 76 g/t Ag)
		10.0m @ 0.30 g/t Au 52 g/t Ag
Total	486	Note Manto - mineralized bed or layer