Kola Mining Corporation - Default Announcement
Vancouver, British Columbia, September 10, 2010 - Kola Mining Corporation ("Kola Mining", "the Company") (TSXV: KM, Frankfurt: C8M) Mr. Nick DeMare, a director and Corporate Secretary of the Company, announces that as it does not anticipate being able to file its audited financial statements for the year ended May 31, 2010 within the prescribed period of time, it has applied to the British Columbia Securities Commission for a management cease trade order prohibiting certain directors, officers and insiders of the Company from trading in the securities of the Company because of the failure by the Company to file, within the prescribed period of time, its audited financial statements for the year ended May 31, 2010. This restriction will remain in place until the Company’s regulatory filings are brought up to date. In accordance with National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults (“NP 12-203”), the Company confirms the following:
1. The Company anticipates it will be unable to file financial statements for the yearended May 31, 2010 within the time period set out by the securities regulatory authorities.
2. The Company is unable to file the financial statements on time as a result of, among other things, complications arising from its disclosed intention to record an impairment charge to the carrying value of its Souker project located in Russia and unanticipated delays in assembling financial records and information as a result of recent changes in management.
3. The Company, its management and its auditors continue to work to resolve any issues with the statements as soon as possible. The Company expects to file the financial statements for the year ended May 31, 2010 by not later than November 28, 2010.
4. The Company intends to satisfy the provisions of the alternative information guidelines set out in NP 12-203 so as long as it remains in default of the financial statement filing requirement.
5. The Company is not subject to any insolvency proceedings.
6. There is no other material information concerning the affairs of the Company that has not been generally disclosed.
To find out more about Kola Mining Corp., please visit the Company website at www.kolamining.com.
On behalf of the Board of Directors of Contact:
KOLA MINING CORP.
Kola Mining Corp.
"Nick DeMare" 604.694.1600 www.kolamining.com Nick DeMare Director and Corporate Secretary
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