Kola Mining Corporation

Kola Mining Corporation

July 09, 2010 08:30 ET

Kola Mining Corporation: Souker Project Test Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2010) - Kola Mining Corporation ("Kola Mining", "the Company") (TSX VENTURE:KM)(FRANKFURT:C8M) announces that, further to its news release of April 6, 2010, the Company is in receipt of preliminary results of the metallurgical tests for the Souker Nickel deposit. The preliminary results indicate that the recovery of nickel in the deposit is much lower than anticipated. These tests were conducted by Moscow Steel and Alloys Institute. At this time additional follow up work is required, however if there is no improvement in recovery rates, the Company believes the project to be uneconomical at today's nickel prices. 

The Company is considering its options for the project and will apply to the State Resource Committee (the GKZ) in order to extend the license term and to keep the property until, and in the event that, technical advances are made that would allow for better metallurgical recoveries. The Company will be recording an impairment charge to the carrying value of the Souker project in its financial statements.

On behalf of the Board of Directors of KOLA MINING CORPORATION

Victor Tskhovrebov, President & C.E.O.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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