Kola Mining Corp.

June 15, 2012 09:00 ET

Kola Mining Provides Update on Debt Settlement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2012) - Kola Mining Corp. ("Kola Mining" or "the Company") (TSX VENTURE:KM)(FRANKFURT:C8M) - Mr. Sergei Dubovik, President & CEO of the Company, announces a debt settlement with Petesteri Enterprises Limited ("Petesteri"). The Company owed to Petesteri US$1,800,000 (one million and eight hundred thousand US dollars) as the principal debt and the interest accrued thereon (the "Debt"). The Company has reached an agreement in principle to settle all amounts owing, including interest, for 4,600,000 (four million and six hundred thousand) units of the Company with each unit comprising a share and a warrant. Each warrant will entitle the holder to purchase an additional share for a period of three years at a price of $0.375 per share. Petesteri is an arm's length investor.

The debt settlement is subject to approval by the TSX Venture Exchange.

Mr. Dubovik stated, "This is a key agreement that has been concluded. The debt burden of the Company has been significantly decreased as a result of this agreement."

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.

Sergei Dubovik, President and CEO

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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