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.
Negotiations on the terms of the MOU and formal JVA agreement
continue and although moving slowly the discussions are moving
positively towards conclusion.

Engineering and Environmental Studies Update:

The following studies are either completed or are in progress:

BGC Engineering Inc. (BGC) completed prefeasibility evaluations and
geotechnical assessment of the proposed T6B-Tailings Storage Facility
and selected plantsite. They as well completed a program of terrain
mapping throughout the Project area.. The above assessments are
reported in the Prefeasibility Site Investigation Proposed Plant
Site, Terrain Inventory Mapping and Prefeasibility Site Investigation
Proposed Tailings Storage Facility.

G&T Metallurgical Services Ltd. (G&T) completed a detailed program of
metallurgical study, including a pilot mill test program, for the
purpose of developing a process flow sheet. The relevant data on the
metallurgical work has been compiled into a report entitled
"Metallurgical Assessment of the Lucky Ship Molybdenum Project".

SRK Consulting Engineers and Scientists (SRK) completed a scoping
study (first pass review) with the focus on determining the viability
of underground extraction and, if viable, how it might complement an
open pit mine.

ECOS Environmental Consulting Inc. (ECOS) has completed a draft
Project Description for the Project. The Project Description is the
basis for entry of the project into the British Columbia
Environmental Assessment (EA) process and is intended to also meet
the requirements for entry into any federal review process.

Lorax Environmental Services Ltd. (Lorax) continues to work on
programs pertaining to surface water and groundwater quality,
sediment quality and metal leaching/acid rock drainage (ML/ARD).
Evaluations on groundwater (hydrogeology) quality and flows within
the mineralized zone continue to be carried out through monitoring of
existing wells. During this past winter and spring an extensive
groundwater drilling program (Phase 3) was completed on the Project,
in order to acquire information pertinent to the groundwater regime
located between the deposit and the Nanika River. As well during this
period, Lorax has continued to work on the kinetic and static
assessments (ML/ARD) of lithological units.

Jacques Whitford AXYS Ltd. completed extensive aquatic biota, fish &
fish habitat and fish tissue assessment programs, designed to obtain
pertinent fisheries information for all of the watersheds associated
with the proposed mine site, plant site and Tailing Storage Facility.

Knight Piesold Ltd, ECOS and Golder Associates have continued to
gather baseline information relating to climate and surface water
hydrology for the Project area.

Dave Bustard and Associates has completed a detailed spring season
evaluation of the proposed Tailing Storage Facility-T6B area
fisheries. Results of these studies have not yet been reported to the
company.

Nanika Resources Inc. has held discussions and is awaiting a decision
from the Korean partners prior to continuing discussions with MQes -
Mine and Quarry Engineering Services, Inc of San Mateo, CA, in
regards to completing a preliminary feasibility study on a process
plant and ancillary facilities.

National Instrument 43-101 Technical Report Update:

The Company filed July 2, 2008 the National Instrument 43-101 report
that was news released on May 14, 2008. The Company commissioned A.
C. A. Howe International Limited of Toronto, Ontario to prepare a
further technical report regarding the Lucky Ship Molybdenum Project.
This report is dated May 1, 2008, as amended June 30, 2008 and is
available for viewing under Nanika's corporate profile on SEDAR
(www.sedar.com).

Extract from Table 15-2  Howe Mineral Resource Estimate (pg. 51 Report No.
919)

-------------------------------------------------------------------------
Report                                  Tonnes                         Mo%
Cut-off          Class         (Million tonnes)                    (uncut)
-------------------------------------------------------------------------
0.03%            INDICATED               65.66                      0.064
Molybdenum                  (approximately 92.6 million pounds Molybdenum)
-------------------------------------------------------------------------
0.03%            INFERRED                10.24                      0.054
Molybdenum                  (approximately 12.2 million pounds Molybdenum)
-------------------------------------------------------------------------

Molybdenum Market Update:

Nanika's consultant on the molybdenum market, Denis Battrum, MBA,
M.Sc., B. Sc., advises that the market for molybdenum can be fairly
described as strong and getting stronger - financial results from the
United States notwithstanding. Molybdenum demand is 75-80 percent
related to steel - which is growing 5.6 to 5.8 percent a year, based
on the most recent statistics from the International Iron and Steel
Institute. Molybdenum is also supported by the catalyst business,
which is growing much faster than oil refining generally because of
its capability to reduce sulfur when used in catalysts. Catalyst
producers put the demand for molybdenum in their business as growing
8-11 percent annually. The molybdenum market can be said to be
growing in a range between 5.6% and 11%. The spot price is rising at
$35.40 US/lb at July 15, 2008 up from $35.25 US/lb. as at July 11,
2008 as quoted by Ryan's Notes. It is reported that traders cannot
find spot material for new incremental demand because producers are
largely sold out. Denis Battrum advises further that there remains a
supply question in South America due to structural labour problems.

Qualified Persons

Bruce Graff, P. Eng., a qualified person under National Instrument
43-101, has been supervising Nanika Resources environmental and
engineering developmental studies for the Lucky Ship Project. He has
reviewed and approved the technical disclosure in this news release
regarding the studies. The extract from the report prepared by ACA
Howe International Ltd. has been reviewed and approved by Felix Lee.
P. Eng. a qualified person under National Instrument 43-101.

About Nanika Resources Inc.

Nanika Resources Inc. is a TSX Venture listed mineral exploration and
development company focusing on the development of its Molybdenum
Property in west central British Columbia and the advancement of its
other mineral exploration properties, all of which are located within
Canada.

On Behalf of the Board

James. D Jacuta, Chairman, President & 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.

Contacts:
Nanika Resources Inc.
Doug Kerr
(604) 638-0699 or Toll Free: 1-866-580-0699
Email: kerr@nanikaresources.com

Nanika Resources Inc.
Derek Huston
(604) 929-2337 or Toll Free: 1-800-665-4288
Website: www.nanikaresources.com





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