ASX RELEASE 19 July 2011

Bel ve der e Val u ati on Di sp ute – Up date

Aquila Resources Limited (ASX: AQA “the Company” or “Aquila”) refers to its previous announcements dated 4 June 2010 and 27 September 2010 regarding the exercise of an option by Vale Belvedere Pty Ltd (“Vale”), a wholly-owned subsidiary of Vale S.A. over the 24.5% interest in the Belvedere Hard Coking Coal Project (“Belvedere”) held by BD Coal Pty Ltd (“BD Coal”), a wholly- owned subsidiary of Aquila.

Aquila also refers to its previous announcement dated 20 June 2011 regarding the striking out of

Vale’s statement of claim in the Court proceedings brought by Vale.

Vale, on 18 July 2011, lodged an appeal in respect of the Court’s decision to strike out its statement of claim.

Aquila is disappointed that this will cause further delay to the Fair Market Value determination process prescribed in the Belvedere Joint Venture Agreement. Aquila intends to seek reimbursement from Vale, upon completion of the assignment of BD Coal’s interest in Belvedere pursuant to Vale’s option, of the amount of contributions made by BD Coal towards Belvedere since Vale exercised its option on

2 June 2010, together with interest and the refund of bonds and bank guarantees given by BD Coal in respect of Belvedere.

Aquila will continue to keep the market informed of developments in respect of these matters.

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

About the Belvedere Hard Coking Coal Project

The Belvedere Hard Coking Coal Project is one of the largest greenfield metallurgical coal developments in Queensland. It is a proposed underground longwall coal mine located to the north of Moura in the southern Bowen Basin.

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 5631

Jakarta: 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