CULLEN RESOURCES LIMITED — Capital/Financing Update 2006

Mar 19, 2006

Aquila Resources Limited (ABN: 81 092 002 769) Suite 5, Level 3, South Shore Centre 85 South Perth Esplanade South Perth WA 6151

Tel: (+618) 9474 3311 Fax: (+618) 9474 4433 mail@aquilaresources.com.au

20 March 2006

Companies Announcements Office Australian Stock Exchange Limited 4^th Floor, 20 Bridge Street SYDNEY NSW 2000

WEST PILBARA - IRON ORE EXPLORATION UPDATE

The Australian Premium Iron Joint Venture ("API") was formed to explore for iron ore in Western Australia in partnership with AMCI Holdings Australia Pty Ltd ("AMCI"). Under the terms of the joint venture, Aquila and AMCI each hold a 50% participating interest, with AMCI sole funding the first \$10 million of exploration expenditure.

The Joint Venture is focussing its exploration on channel iron deposits ("CIDs") in the highly prospective West Pilbara region of Western Australia. API has assembled a strategic exploration portfolio by taking up new tenements and by concluding a series of farm-in and acquisition agreements.

WEST PILBARA - RED HILL IRON ORE PROJECT

(API earning 80%, Red Hill Iron Ltd 20%)

Iron ore exploration of the Project Area managed by API commenced in late 2005 with rock chip sampling of exposed CID mineralisation at the Catho Well North and Cardo Bore East targets. Selective rock chip sampling on traverses not less than 500 metres apart returned iron grades up to 57.6% Fe at Cardo Bore East and 58.3% Fe at Catho Well North. For reference, grades at the Robe River and Yandi CID mining operations are reported to be in the range 57% to 58% Fe.

API has completed a preliminary program of 14 RC holes (534 metres) at the Cardo Bore East target in December 2005, with holes drilled generally 300 to 500 metres apart over the mesa. The program was designed to provide a better understanding of the regolith and the geological characteristics of the CID mineralisation. Further drilling is now required before any interpretation of quality or tonnage potential of the Cardo Bore East target can be made. Results received from the preliminary programme are encouraging with the thickness of CID intersected between 15 and 20 metres with iron assaying between 56.6% and 60.3%.

an an tha an an an a	From	$\mathbf{T_0}$	$\mathcal{P}_{\text{SUSY}}$ Intercept	Fe. Arrest Made $\%$	$\mathbf{Al}_2\mathbf{O}_3$ $\%$	SiO 2 %	Mn. %	$^{\circ}$ P . ta Links $\%$	- S $\%$	LOI ℅
CARDO BORE
CBRC041	23	39.	16 m @ 56.65 % Fe	56.65	4.37	7.75	0.02	0.08	0.02	6.18
CBRC042	15	35	20 m @ 59.52 % Fe	59.52	3.38	4.15	0.02	0.06	0.01	6.89
CBRC043	14	33	19 m @ 59.20 % Fe	59.20	3.29	4.4	0.02	0.07	0.01	7.11
CBRC045	22	39	17 m $\omega$ 60.25 % Fe	60.25	2.97	3.03	0.43	0.07	0.01	6.6
CBRC047	12	30	18 m @ 59.61 % Fe	59.61	3.26	4.55	0.07	0.09	0.01	6.12
CBRC048	15	25	10 m $(a)$ 58.48 % Fe	58.48	4.04	4.85	0.02	0.06	0.02	6.47
	28	33	5 m @ 58.84 % Fe	58.84	3.68	4.69	0.02	0.07	0.01	6.66
CBRC049	24	34	10 m @ 56.32 % Fe	56.32	4.78	5.89	0.04	0.1	0.01	7.76

RC drill intercepts from Cardo Bore East include (intercepts $> 8 \text{ m}$ in width at $> 54\%$ Fe):

All drill holes above intersected low grade $(+50\% \text{ Fe})$ CID from surface with higher grade mineralisation averaging greater than 59% Fe intersected deeper in the profile. The base of the channel in this locality is approximately 40 metres below surface, significantly lower than the surrounding plain level. Elsewhere along the mesa, bedrock was intersected between 17 and 34 metres down hole.

Planning for additional drilling in the area to confirm the geometry of the main channel and its extent is in progress.

API is currently advancing a number of other CID targets based on extensive outcrops of Tertiary Robe Pisolite.

WEST PILBARA - MT STUART IRON ORE PROJECT

(API 70%, Cullen Resources Limited 30%)

The Tertiary palaeochannels tested by the joint venture at Catho Well and Cardo Bore occur as semi-continuous, breakaway mesas with gently sloping tops and flanked by less than 50m of ferruginous scree. At Cardo Bore the CID forms a narrow linear mesa whilst the Catho Well CID is a broader mesa. The CID material consists of fine to medium grained granular pisolite (haematite core with goethite cortices and matrix). A number of clay horizons present have been identified within the CID from the drilling.

The latest drilling results from Catho Well and Cardo Bore include (intercepts $> 8$ m in width at $>54\%$ Fe):

	From	$\mathbf{T}$	Intercept	$\mathbf{F}\mathbf{e}$ $\%$	$\mathbf{Al}_2\mathbf{O}_3$ %	SiO 2 $\%$	$\mathbf{Mn}$ %	${\bf P}$ : $\%$	$\mathbf{S}$ %	LOI %
CARDO BORE
CBRC009	21	29	$8 \text{ m}$ (a) 56.85 % Fe	56.85	4.68	4.58	0.05	0.080	0.010	8.58
CBRC010	22	42	20 m @ 57.15 % Fe	57.15	4.04	4.58	0.04	0.090	0.010	8.83
CATHO WELL
CWRC100	$\theta$	21	21 m @ 54.82 % Fe	54.82	3.69	7.12	0.06	0.030	0.030	10.03
CWRC107	0	9	9 m @ 54.48 % Fe	54.48	2.78	9.06	0.05	0.030	0.010	9.64
CWRC108	0	8	8 m @ 55.29 % Fe	55.29	3.07	7.57	0.05	0.030	0.010	9.70
CWRC121	$\theta$	9.	9 m @ 54.72 % Fe	54.72	4.00	6.45	0.16	0.030	0.020	10.45
CWRC168	1	14	13 m @ 55.85 % Fe	55.85	2.98	6.63	0.06	0.040	0.020	9.78
CWRC171	0	17	17 m @ 54.70 % Fe	54.70	2.95	8.09	0.06	0.040	0.010	9.86
CWRC173	1	9.	8 m @ 56.34 % Fe	56.34	2.76	6.72	0.05	0.040	0.010	9.55
CWRC174	7	19	12 m @ 55.42 % Fe	55.42	2.23	7.51	0.07	0.040	0.020	10.06
CWRC180	6	15	9 m @ 55.59 % Fe	55.59	2.41	6.83	0.08	0.050	0.000	10.54
CWRC184	26	36	10 m @ 55.94 % Fe	55.94	2.02	6.34	0.22	0.030	0.010	10.53
CWRC188	23	34	11 m @ 54.98 % Fe	54.98	2.08	7.73	0.38	0.030	0.020	10.11
CWRC192	3	15	12 m @ 55.14 % Fe	55.14	3.35	5.73	0.06	0.050	0.020	10.92
CWRC198	9	24	15 m @ 56.27 % Fe	56.27	2.75	5.58	0.08	0.040	0.010	10.30
CWRC199	13	25	12 m @ 56.37 % Fe	56.37	2.16	6.61	0.09	0.040	0.020	9.92
CWRC200	14	30	16 m @ 56.99 % Fe	56.99	1.88	5.52	0.10	0.040	0.010	10.19

At Cardo Bore, drill holes CBRC009 and 010 returned intercepts of greater than 54% Fe from 21 metres down hole, the base of the channel in this area extended to 42 metres below surface, significantly lower than the surrounding plain level. Elsewhere along the mesa, bedrock was intersected between 17 and 34 metres down hole. The broader mineralised intercepts returned from CBRC009 and 010 potentially represent the main or central part of the paleochannel. Additional drilling is required in the area to confirm the orientation of the main channel and its extent.

Results from the Catho Well RC drill programme indicate that the central and northern areas of the prospect have an average iron grade for the CID material of between 53% and 55%. Following the completion of the RC drill programme, a beneficiation testwork programme, including screen analysis, scrub and screen, and heavy liquid separation, was undertaken on composite RC samples. Whilst results from the screen and scrub and screen tests were inconclusive, results from the heavy medium separation have provided encouragement to undertake further tests on "bulk" samples, as opposed to RC drill cuttings. Large diameter diamond drilling is planned and will be undertaken in the coming months, dependent upon rig availability and weather and access conditions, to obtain suitable samples for this additional beneficiation testwork.

For further information regarding this announcement, please contact:

Tony Poli Executive Chairman

$(08)$ 9474 3311 Telephone: Facsimile: $(08)$ 9474 4433 Email address: mail@aquilaresources.com.au Visit us at: www.aquilaresources.com.au

The information in this announcement, insofar as it relates to Mineral Exploration activities, is based on information compiled by Stuart H Tuckey, who is a member of the Australian Institute of Mining and Metallurgy, and who has more than five years
experience in the field of activity being reported on. Mr Tuckey is a full-time employee of API Man Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Tuckey consents to the inclusion in
the report of the above matters, based on their information in the form and context in which it appears.