| September 21, 2006 Capella Resources Acquires An Option On A Gold Project Near Historic Homestake Gold Mine | |
| Vancouver, B.C., September 21, 2006 - CAPELLA RESOURCES LTD. (TSX-V: CPS) ("Capella" or the "Company") is pleased to announce that the Company has enter into an option to acquire the Tinton Gold Property located in Black Hills of South Dakota near the historic Homestake Gold Mine from International Mineral Resources Ltd. (IMR). The terms of the option agreement include payment of $85,000 USD and issuing 1,000,000 common shares to IMR for a 100% interest in the Tinton Property which consists of 157 unpatented mining claims. IMR will retain a 5% NSR royalty on all future production which is subject to a buydown provision whereby Capella may reduce the royalty from 5% to 2% by making a $1,000,000 USD payment at any time. This transaction is subject to receipt of final documentation from the vendor and applicable regulatory approval. The Homestake Gold Mine operated for 125 years and produced more than 40 million ounces of gold before closing in 2001. The Homestake Deposit is an iron-formation hosted gold deposit of Early Proterozoic age and is the largest deposit of its kind in the world. The Tinton Property, which lies 13 kilometers west of the historic Homestake Mine, is in a geologically similar setting containing stratigraphic, structural, and metamorphic elements common to the Homestake Deposit. The Company's President, Richard Bachman, spent 13 of his 22 years with Homestake Mining Company managing research and exploration activities at the Lead, South Dakota gold mine and brings a knowledge and understanding of the Homestake gold deposit that is unequaled. Dr. Michael Terry, director of the Company, worked with Mr. Bachman at Homestake actively exploring for new Homestake type deposits in the Black Hills during the early 1990"s. The Company has submitted the necessary environmental and exploration permits to the relevant governmental agencies seeking approval for its exploration drill program. Drilling will start once the exploration permits are received and a drill of sufficient capacity to complete the program can be secured. "We are pleased to be involved with an opportunity such as the Tinton Project and with a technical team capable of exploring it," stated Bruce MacDonald, Chairman of Capella Resources Ltd. For further information, please contact Mr. Richard Bachman at 775-721-8883 CAPELLA RESOURCES LTD. Per: "Signed" Bruce MacDonald, Chairman & Director Not for distribution to the United States newswire services or fir dissemination in the United States. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release. | |
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