Further Work on Nanika's New Bulldog Creek Property

VANCOUVER, Aug. 25 /CNW/ - Nanika Resources Inc. (TSX-V: NKA and FSE: C7X) announces further work has commenced on Nanika's new Bulldog Creek property located approximately 10 kilometres south of Stewart, BC. Nanika's crew is undertaking further prospecting on Bulldog Creek and will spend time on the claims newly acquired in August that are located adjacent to, and to the east of, the existing property. Access to the area is by helicopter from Stewart BC.

Nanika announces that it has found a new lens of mineralized rock 4 metres long with 15-20% pyrite and 2-3 % sphalerite. The lens is composed of a fine grained black rock. A great majority of samples with high precious and base metal content collected in Bulldog Creek in June is associated with this rock. It usually contains 5 to 30 % pyrite and pyrrhotite and up to 10% sphalerite, galena and chalcopyrite.

During Nanika's previous program in June and July 2010 a total of 86 rock samples and 96 soil samples in 4 soil lines were collected. Rock samples included 11 chip, 11 grab and 64 float samples. The bulk of the samples were collected on the west side of Bulldog Creek where Nanika's exploration crew encountered diverse mineralization occurring on the contact between Jurassic volcanic rocks and the Coast Plutonic Complex. The highest gold value came from a grab sample from a 5 cm wide quartz vein with 3-5% pyrite sampled on the northeast side of Bulldog creek. Sample AB-93 collected from this vein yielded 9.98 g/t gold and 50.3 g/t silver.

All previous samples were analysed by Assayers Canada, an experienced, and ISO-9001 certified lab based in Vancouver, BC, who will be doing assays on the current samples as well, with results expected in several weeks time.

Nanika's "Bulldog" property is on Bulldog Creek and consists of nine contiguous claims totaling 6,106.10 acres or 2,471.0 hectares. There are no underlying crown grants to any of these claims.

Alex Walus, P. Geo., a qualified person under National Instrument 43-101 is supervising Nanika's work program on the Bulldog Creek property and has reviewed and approved the technical disclosure in this news release.

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.

To receive Company news via email please contact [email protected] and mention "Nanika Resources News" in the subject line.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada (IIROC) accepts responsibility for the adequacy or accuracy of this release.

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For further information: CHF Investor Relations at 416-868-1079; Christopher Haldane, Account Manager, at ext. 237, [email protected]; Jeanny So, Director of Operations, at ext. 225, [email protected] Or Nanika Resources Inc. at 604-638-0699 or Toll Free at 1-866-580-0699, http://www.nanikaresources.com