Nanika Adds CHF Market Liquidity Program and Withdraws Proposed Private
Placements

VANCOUVER, Nov. 5 /CNW/ - Further to the previous announcement by Nanika Resources Inc. (TSX-V: NKA and FSE: C7X) of the engagement of investor relations services from CHF Investor Relations (see new release dated February 17, 2010), the Company now announces that it has amended the agreement with CHF to add services under CHF's Market Liquidity Program (also known as market-making). Those expanded services will commence upon TSX Venture Exchange approval, which the Company hopes to receive next week. Two Company Directors  have personally furnished capital for the purposes of market-making. The market-making activity is undertaken out of CHF's Calgary office using a registered broker at Mackie Research Capital Corporation (Calgary), in compliance with the guidelines established by the TSX Venture Exchange Policy 3.4, as well as Regulation Services' Universal Market Integrity Rules. Trading orders in the Company's stock under the program aim to manage volatility, improve liquidity, and preserve the integrity of market.

Upon Exchange approval of the expanded services, the cash fee payable by Nanika to CHF will increase from $6,000 to $7,500 per month, covering both Investor Relations and market-making services. All other contract terms of CHF's engagement remain unchanged.

As part of CHF's contract, it holds since its engagement 200,000 NKA stock options exercisable at $0.15 and 200,000 NKA stock options exercisable at $0.20 per share until February 15, 2020, unless the CHF agreement is terminated necessitating cancellation 30 days later. None of the common shares or shares that may be issued to CHF when exercising any options will be traded under the Market Liquidity Program.

Finally, Nanika also announced that it has withdrawn the previously proposed non-flow-through private placement announced on September 29, 2010, and the flow-through private placement announced July 2, 2010, in favour of a later date.

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 contact, [email protected] and in the subject line mention "Nanika Resources News".

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