Capella to Begin Trading on Post-Consolidated Basis

VANCOUVER--(BUSINESS WIRE)--CAPELLA RESOURCES LTD. (TSX-V: KPS) (“Capella” or the “Company”) announces that effective as of the opening of trading of the TSX Venture Exchange (the “Exchange”) on Wednesday December 24, 2008, the Company will consolidate its common share capital on the basis of one (1) post-consolidated common share for every ten (10) pre-consolidated common shares held (the “Consolidation”). The Company’s name will remain the same but the Company’s trading symbol will change from CPS to KPS. The Company’s new CUSIP number is 13960J208.

The Consolidation was approved by the shareholders at the Company’s Special Meeting held on November 28, 2008 (the “Special Meeting”) (see the Company’s news release dated December 5, 2008). As at the date of the Special Meeting, the Company had 66,832,174 common shares issued and outstanding and the Company will have 6,808,218 common shares issued and outstanding post-consolidation. The Consolidation was approved by the Exchange on December 23, 2008.

Letters of transmittal with respect to the Consolidation were mailed to all registered shareholders of the Company on December 23, 2008. All registered shareholders will be required to send their respective certificates representing the pre-consolidated common shares along with a properly executed letter of transmittal to the Company’s transfer agent, Computershare Investor Services Inc. (“Computershare”), in Toronto, Ontario, all in accordance with the instructions provided in the letter of transmittal. Additional copies of the letter of transmittal can be obtained through Computershare (Shareholder Services 1-800-564-6253). All shareholders who submit a duly completed letter of transmittal along with their respective pre-consolidated common share certificate(s) to Computershare, will receive a post –consolidated common share certificate.

Further details of the Consolidation are contained in the Company’s information circular dated October 29, 2008, which was mailed to shareholders on October 31, 2008, and filed on SEDAR (www.sedar.com).

About Capella Resources Ltd.

Capella Resources Ltd. is a publicly traded, junior exploration and mineral development company with a strong portfolio of precious and base metal projects in Chile, USA and Atlantic Canada. The Company has a 100% interest in the Lajitas and Nevada gold-copper properties located in the Maricunga Gold and Copper District and approximately 700 kilometres northwest of Santiago, Chile. The properties comprise ten exploration claims and six exploitation claims totalling a cumulative 3,500 hectares in area. The Company holds a 100% interest in the Tinton Gold Project located 15 kilometres west-northwest of the famous and historic Homestake Mine in the Black Hills at Lead, South Dakota. The Tinton property consists of 1,270 hectares contained in 157 unpatented mining claims.

The Company also holds over 25,000 mineral exploration claims covering an aggregate land area of over 1.2 million acres (495,264 hectares) in Atlantic Canada (Nova Scotia, New Brunswick and Newfoundland and Labrador).

CAPELLA RESOURCES LTD.

per: “Richard Bachman"

Richard Bachman, Chief Executive Officer, President & Chief Geological Officer

Not for distribution to the United States newswire services or for dissemination in the United States.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.