Reef Gold Project

Overview

• Located in Marathon County Wisconsin, USA in the Penokean VMS Belt
• Project was focus of heavy exploration by Noranda Exploration in 1970’s
• 2,000 meters of drilling completed by Aquila in 2011; 2012 drill campaign underway
• Noranda calculated historic resource estimate (non 43-101compliant) of 119,000 contained ounces gold (454,600 tonnes @ 10.6 g/t)
• Resource extends from surface to depth of 450 feet and is open in all directions
• Project is potentially amendable to low-cost, open pit mining
• Mineralization consists mostly of pyrrhotite, pyrite, and chalcopyrite, with native gold, electrum, and telluride minerals within quartz-sulfide veins and vein selvages
• Using a cut off of 3.4 g/t, individual lenses have an average true thickness of 2.4 meters with reported grades ranging from 3.4 g/t to 47 g/t.

Highlighted assay results from Aquila's 2011 drilling program include:

• 3.0 meters of 8.12 g/t gold in GBP-3
• 12.47 meters of 1.07 g/t gold in R11-6
• 10.50 meters of 1.70 g/t gold in R11-9
• 14.76 meters of 14.41 g/t gold and .30% copper in R11-11, Including 9.26 meters of 21.28 g/t gold and .33% copper
• 9.90 meters of 2.53 g/t gold and 0.20% copper in R11-17, Including 3.90 meters of 5.07 g/t Gold and 0.27% copper
• 14.54 meters of 3.23 g/t gold in R11-23, Including 3.50 meters of 13.05 g/t gold
• See press releases dated September 29, 2011 and January 26, 2012 for full assay results

Cross Section 1700	Cross Section 1800

History

The Reef Gold project is located in Marathon County, Wisconsin, approximately 99 miles from the Back Forty project. The Reef area was the focus of historic exploration by Noranda Exploration and others in the 1970s and 1980s. Noranda identified several zones of gold mineralization in the Reef area and calculated a non NI 43-101 compliant historic resource estimate of 454,600 tons of 10.6 ppm gold and 0.28% copper.

Aquila’s review of historic drilling information has determined that projections of the mineralized zones to surface, at depth, and along strike, leave significant room for resource expansion.

Geology

Mineralization at the Reef Gold project consists mostly of pyrrhotite, pyrite, and chalcopyrite, with native gold, electrum, and telluride minerals within quartz-sulfide veins and vein selvages. Using a cut off of 3.4 g/t, individual lenses have an average true thickness of 2.4 meters with reported grades ranging from 3.4 g/t to 47 g/t. Other minor sulfides include sphalerite, chalcocite, cubanite, and rare molybdenite.

Aquila has acquired 356 acres of mineral rights and 276 acres of privately held surface rights at the Reef Project, covering the extent of previous drilling and potential extensions of mineralization. A Geotech VTEM heliborne geophysical survey was flown over the project area covering 710-line kilometers. The purpose of the survey is to guide further exploration of the Reef mineralization and to evaluate the excellent potential for additional gold and base metal mineralization in the project area. VTEM results are pending.