Aquila Resources Limited announced that the Federal Department of Sustainability, Environment, Water, Population and Communities has given conditional approval for the construction and operation of mining and associated infrastructure, and a rail line to transport iron ore to the port, for the West Pilbara Iron Ore Project in which the Company holds a 50% interest.

Stage 1 - Mine and Rail locations
The conditions imposed by SEWPaC are manageable and acceptable to Project participants and the environmental offsets requested have been agreed by the Project participants. This is an important milestone for the Project and demonstrates the significant attention that has been applied to designing facilities that minimize impacts on the environment.

The Western Australian State Department of Environment and Conservation has yet to announce its position on the mine and rail developments as proposed by the Project participants.

Both Federal and State Departments with responsibility for the environment are considering the proposed development of Anketell Port, with final approvals anticipated in Q2 2012.

The Company will keep the market informed of further Project developments.