Nanika Resources Molybdenum Project Update.

(From Hugin)

VANCOUVER, BRITISH COLUMBIA -- (MARKETWIRE) -- 07/22/08 -- Nanika Resources Inc. (TSX VENTURE: NKA)(FRANKFURT: C7X) (the "Company") or "Nanika") announces that work has been progressing steadily with environmental baseline and engineering studies required for the development of Nanika's Molybdenum Project located approximately 85 kilometers southwest of Houston, British Columbia.

Korean Negotiations Update:

In addition to the technical update that follows below Nanika is pleased to update on the status of negotiations with Korean partners Palm Clean Energy Inc. and Daewon Chemical Co. Ltd. The signing of any final Joint Venture Agreement (JVA) being negotiated will be subject to the completion of due diligence and the approval of Nanika's board. Nanika has now agreed to use its best efforts to conclude negotiations before September 15, 2008. Any Memorandum of Understanding (MOU) signed representing the key business terms of the formal JVA will be non-binding and the previously signed Option Agreement entered into on December 13, 2006 remains in force. That Option Agreement contained terms that provided the parties would subsequently enter into a formal joint venture agreement. …