Kola Mining Corporation

Kola Mining Corporation

June 11, 2008 11:50 ET

Kola Mining Announces 1.977-Billion Pound Nickel NI 43-101 Resource Estimate

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2008) - Kola Mining Corporation (TSX VENTURE:KM)(OTCBB:KMNFF)(FRANKFURT:C8M) ("The Company") is pleased to announce a NI 43-101 compliant resource at the Souker project on the Kola Peninsula, Russia of 103,000,000 tonnes at a grade of 0.26% Ni and 0.06% Cu classified as Indicated Mineral Resources and an additional 261,000,000 tonnes at a grade of 0.24% Ni and 0.06% Cu classified as Inferred Mineral Resources, containing a combined indicated and inferred resource of 1.977 billion pounds (898,000 tonnes) of nickel metal. SRK Consulting (Canada) Inc. audited the resource prepared by Kola Mining Corp. and is now completing the NI 43-101 Technical Report which will be completed within 45 days. A summary of the resource report follows:

The Mineral Resource Statement for the project in the table below are based on an open pit optimization that utilized a nickel price of 8.00 USD/lb, a 70% metallurgical recovery, and a smelter payable of 70%. Copper was not used in the pit optimization.

Table 1 Mineral Resource Statement(i) for the Souker Nickel-Copper Deposit,
Murmansk Oblast, Russian Federation, SRK Consulting, June 10, 2008.

Grade Contained Metal
Quantity Nickel Copper
Resource (million (million (million
Classification tonnes) Nickel % Copper % pounds) pounds)
Indicated(ii) 103 0.26 0.06 590 132
Inferred(ii) 261 0.24 0.06 1,387 346

(i) Mineral resources are not mineral reserves and do not have demonstrated
economic viability. All figures have been rounded to reflect the
relative accuracy of the estimates. The cut-off grades are based on
metal price assumptions of US$8.00 per pound of nickel, and a
metallurgical recovery of seventy percent for nickel, 70% smelter
payable, unit mining costs US$1.75 per tonne, processing cost US$7.00
per tonne, G and A US$1.20, slope angle 50 degrees. Copper was not used
in the pit optimization.

(ii) Reported at a cut-off grade of 0.131% Nickel contained within a
potentially economic open pit.

Data used for this estimate included past Soviet era drilling and all finalized drilling results from the 2007-2008 Kola drill programs up until May 15, 2008. These data have been audited by SRK in accordance with "CIM Estimation of Mineral Resources Best Practices Guidelines". The resource model was interpolated using ordinary kriging with all of the assay data available. The drilling data is summarized below.

Table 2 Summary of Data Provided by Kola Mining for the Souker Nickel-
Copper Deposit, Russian Federation, as of May 15, 2008.

Metres Metres
assayed assayed
Drilling period No. of holes Metres drilled for Ni for Cu
Soviet, 1970's
and 1980's 97 27,989.6 6,978.3 6,975.0
Kola, 2007-2008 68 8,630.3 8,168.4 7,965.8
Total 165 36,619.9 15,146.7 14,940.8

The Kola Peninsula has a long history of mining and as a result has excellent mining infrastructure. There is ample electric power and water on the property. A major paved road crosses the north edge of the property. There is a rail siding within 3 km, as well as a deep-water all season port at Pechenga that is only 35 km away from the site. The property is situated within 12 km of the smelter at the town of Nickel, and 14 km of the smelter at the town of Zapolyarny. A trained nickel mining workforce is available in those towns.

Cary Pinkowski, CEO, says; "This is one of the largest undeveloped sulfide nickel deposits in the world. The Souker deposit is open for expansion to the east, southwest and at depth. Due to excellent existing infrastructure and lack of permafrost, operating conditions in this region are optimal. We have achieved a major milestone on our path to production."

The mineral resources are reported in accordance with Canadian Securities Administrators' National Instrument 43-101 and have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. The audit of this resource estimate was completed by Jeffrey Volk, C.P.G. (AIPG #21559), an independent qualified person as this term is defined in National Instrument 43-101. The effective date of this resource estimate is May 28, 2008. A comprehensive technical report will be produced by SRK within 45 days of the issue of this press release.

The mineral resources are reported at a cut-off grade to reflect the "reasonable prospects" for economic extraction. SRK considers that portions of the Souker nickel deposit are amenable for open pit extraction, and has not considered underground mining methods for deeper portions of the deposit. The "reasonable prospects for economic extraction" requirement was tested by designing a series of conceptual pit shells using the Lerchs-Grossman optimising algorithm. These parameters were selected by SRK to represent an "optimistic" expectation reflecting the intent that the resource should comprise material that is potentially economically mineable in the future. The reader is cautioned that the results from the pit optimization are used solely for the purpose of reporting mineral resources that have "reasonable prospects" for economic extraction by an open pit. After review of several scenarios considering different metal prices, design criteria and operating costs assumptions, SRK has assumed the parameters in Table 1.

Bill Tafuri, P.Geol., the Company's Vice-President of Exploration, a qualified person as defined by NI 43-101, supervised the preparation of the information in this news release.

To find out more about Kola Mining Corp., please visit the company website at www.kolamining.com.

On behalf of the Board of Directors of KOLA MINING CORP.

Cary Pinkowski, CEO

Forward-Looking Statements. This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

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

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