Nova Scotia backing away from moratorium on uranium mining.

From the following press release from Capella Resources, it is clear that the Nova Scotia government is backing away from its commitment to a uranium ban in that province without making it public.

#1 September 6, 2007 News Release from Capella Resources on Canada Newswire.
Corporate Update from the President of Capella Resources VANCOUVER, BRITISH COLUMBIA, September 6 /CNW/ - CAPELLA RESOURCES LTD.

(TSX VENTURE:CPS) ("Capella" or the "Company") has been active in Atlantic Canada since acquiring Tripple Uranium Resources Inc. ("Tripple Uranium") in June. Capella's management is also actively seeking potential acquisitions to add to the Company's portfolio of prospects in order to build its asset base and at the same time increase shareholder value.

With the acquisition of Tripple Uranium came a group of geologists and field personnel that have proven to be a great asset to the Company. In addition to the acquisition of Tripple Uranium, Capella has taken further steps to build its asset base by closing a $10 million financing and conducting an extensive exploration program in Atlantic Canada (as outlined below). While the stock markets overall, and uranium stocks in particular,
have experienced a decline, Capella's management believes that the current share price does not reflect the current status of the Company.

In June, Capella began an extensive exploration program on its 407,000 hectares in Atlantic Canada (see the Company's news release dated August 15, 2007, posted on SEDAR at www.sedar.com). To date, Capella has drilled 10 holes on its Wentworth property in Nova Scotia, and the Company is awaiting results and expects the same by mid-September. Capella's two drill rigs that were working in Nova Scotia were sent to Labrador in August to explore the Company's Kanairktok River property, which is east-northeast of the joint venture between Universal Uranium Ltd. and Silver Spruce Resources Inc. in the Labrador Central Mineral Belt.

Capella has secured two additional drill rigs for its drilling program. One drill rig is heading to Nova Scotia to complete the Company's 7,000-meter program and the other drill rig will be heading to New Brunswick. Evaluation of these properties continues, with diamond drilling planned in early September. Drilling on both the Nova Scotia and the New Brunswick properties will continue throughout the winter. At the peak of Capella's 2007 summer drill program the Company had 24 geologists with field crews working on its various properties.

Capella's claims in Atlantic Canada represent approximately one million acres of land, or approximately 1,574 square miles, making Capella one of the leading land holders in Atlantic Canada.