Nanika Resources Inc.

Nanika Resources Inc.

December 23, 2008 12:53 ET

Nanika Announces Flow-Through Private Placement With MineralFields

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 23, 2008) - Nanika Resources Inc. (TSX VENTURE:NKA)(FRANKFURT:C7X) announces that it has agreed to conduct a non-brokered flow-through private placement with MineralFields for up to 12,500,000 units at $0.04 per unit for gross proceeds of $500,000.00. Each unit will consist of one flow-through share and one half a share purchase warrant. Each full warrant will permit the holder to purchase a non flow-through share for a period of 24 months from closing of the private placement at a price of 10 cents in the first 12 months and 12 cents thereafter. It is the intention of the Company to close the private placement on or before December 31, 2008.

The shares and the warrants are subject to a four month hold period.

The proceeds of the flow-through private placement will be used for qualified Canadian exploration expenses on the Company's mineral properties in Canada.

The Company has agreed to pay a finder's fee to Limited Market Dealer Inc. consisting of (a) a 5% cash payment of $25,000 and (b) 1,250,000 agent's options, each option exercisable at a price of $0.04, to acquire one non flow-through common share of the Company and one-half of one warrant, each full warrant having the same terms as the warrants issued under the private placement.

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

About Nanika Resources Inc.

Nanika Resources Inc. is a TSX Venture listed mineral exploration and development company focusing on the advancement of its mineral properties, all of which are located within Canada.

On Behalf of the Board

James D. Jacuta, Chairman, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein.

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