We are pleased to advise that we have filed a Non-Offering Preliminary Prospectus.  The completion of this process will make us a public company.  This will facilitate financing of the Company in the future when markets recover.  You can view the Preliminary Prospectus and associated documents at the Appia Energy Corp. profile at www.sedar.com.

We have completed one phase of our 2012 drilling program in Elliot Lake encompassing 17 holes.  This program is based upon the recommendations made by our consultants, Watts, Griffis and McOuat.  The objective is to advance both the uranium and rare earth resources at the Teasdale Zone. Drill core samples have been sent to Actlabs for assaying and the results will be reported as they become available.  The total cost of the exploration program for 2012 will be approximately $1.8 million, which is the balance of flow-through funds that are to be expended this year.  The balance of the exploration program is expected to be completed by the end of the year.

The junior resource sector continues to face challenging market conditions.  We will continue to work diligently to maintain our focus and undertake activities designed to maximize shareholder value and we will provide periodic updates on corporate developments as they arise.

Best Regards,

Tom Drivas

President and CEO

PH:  416 876-3957