Can I release a new App for iPad 1, as of 2017?

32-bit apps will be rejected, but that's not the whole story. Providing the app supports 64-bit, you can provide a 32-bit version alongside in the same app bundle. This way there is a 64-bit version for newer devices/iOS (iOS 11 removes 32-bit app support), but also a 32-bit version for older devices.

To add 32-bit and 64-bit support to your app bundle in Xcode, you need:

• to target iOS 5.1.1. Targeting earlier versions of iOS doesn't support the combined app bundles. Later versions of iOS aren't supported on the iPad 1.
• a version of Xcode which is able to target this iOS and also provide the combined bundle functionality, such as Xcode 5.0.2 or 5.0.3.
• to change your project to build both 32-bit and 64-bit. In your project build settings, change Architectures to ‘Standard Architectures (including 64-bit)’.

You can then build your app to support 32-bit and 64-bit which will successfully submit to iTunes Connect.