Aquiline Updates Progress on Permitting of Calcatreu.

TORONTO -- Aquiline Resources Inc. (TSX VENTURE:AQI) is pleased to provide an update with respect to the permitting of its development stage Calcatreu gold and silver project in Rio Negro Province, Argentina. The Company submitted a detailed Social and Environmental Impact Assessment ("SEIA") to the provincial government environmental regulating authority CODEMA on May 27th notifying the government of its intentions to permit Calcatreu for production. As in the normal course of business, CODEMA then indicated that they would review and return their initial comments on the SEIA within 50 days. Aquiline is now in receipt of a letter from CODEMA that details their observations.

The majority of CODEMA's observations relate to the fact that the SEIA is not currently supported by full feasibility level details of the process engineering and associated mine planning. Their observations include the following:

Aquiline to provide:

- More precise volumes of the ore and waste that is to be extracted, worked and treated.

- Further mine design and details of potential environmental impacts of proposed underground mining operations that are to be undertaken in years 5, 6 and 7.

- Further analysis on ore characteristics and residues that may be generated when the ore is processed.

- Further detailed description of the mine closure plan and project area reclamation.

- More detailed studies on the hydrogeological characteristics of the aquifers and water resources that are to be used for the proposed operation.

- Further details of development plans for public education, health, mine living quarters and other deemed positive impacts.

Aquiline's SEIA report - a report that ran to 1,200 pages - was compiled from Mine Scoping level project data and CODEMA's requests for additional information were not unexpected or inconsistent with the regulatory permitting process that exists today in most jurisdictions. The additional detail requested is relatively extensive and Aquiline is committed to providing CODEMA with the required information. This information is most efficiently re-submitted in connection with the completion of Aquiline's full feasibility study for the Calcatreu Project (see AQI release of May 16th) that is expected to conclude in the fourth quarter of 2005.

Aquiline's feasibility study is progressing well with final metallurgical drilling now complete. A 1.5 tonne metallurgical sample is now being prepped for shipment to AMMTEC's metallurgical laboratory in Perth, Australia. Ausenco, (www.ausenco.com) the engineering and construction firm commissioned to undertake the full feasibility study has just completed its second site visit focusing on the design layout of the project's facilities. The Connors drill rig, that has been on site since the beginning of May, is now completing geotechnical drilling. This drilling data will be used for final open cut mine design as well as design engineering for the tailings impoundment, waste dumps and processing facilities. This drilling is scheduled for completion in August after which drilling will then focus on testing a number of high quality exploration targets in and around Vein 49.

Independent of the ongoing permitting process, Aquiline became aware in late June that the Governor of the province of Rio Negro made public comments announcing his concern with the use of cyanide  within the mining industry and that he favored a ban on the use of cyanide within the province. These comments - which were unexpected and inconsistent with the position of the federal government and their pro-active stance on encouraging mineral development within Argentina - have nevertheless triggered very constructive public debates and discussions within Rio Negro Province.

On Thursday July 14th, a consortium composed of mining and exploration companies that operate in Rio Negro openly discussed issues relating to the use of cyanide in mining operations at the legislative government level. Aquiline participated in these discussions and is openly working with legislators on these concerns put forward by the Governor. Indeed, in response to these concerns, Aquiline has instructed Ausenco to extend the Calcatreu feasibility study to include studies on other viable non-cyanide related gold extraction methods that may be applicable at Calcatreu. This work is now underway and Aquiline intends to utilize the metallurgical testwork facilities at the San Juan University, Argentina. Results from this work will be reported in the final feasibility document.

Aquiline understands it has a social and environmental responsibility and is committed to an international standard of best practices. When in operation, the Company will follow the stringent International Cyanide Management Code. Cyanide is used safely in more than 450 gold mines around the world, including within Argentina, and when managed properly poses little to no threat to humans or the environment.

To date, Aquiline has invested in excess of US $10 million in exploration and development work in Argentina and is presently the largest mineral tenure holder in Rio Negro and Chubut Provinces. (see Regional Land Holdings) The Company believes that the emerging Gastre Fault District, which contains the Calcatreu and Navidad deposits, remains highly prospective for further discoveries and Aquiline is committed to working with all levels of government in order that the District receives the level of future investment commensurate with its potential The company is fully engaged in the permitting process with CODEMA and believes it is the appropriate forum to resolve any issues or concerns regarding the safe development and operation of prospective mineral projects.

This press release contains forward looking statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Aquiline Resources Inc. (TSX VENTURE:AQI)