Kola Mining Corp. Undertakes Short Form Offering Through Canaccord Capital Corp.

September 26, 2005
Kola Mining Corp. (the "Company") has entered into an agreement with Canaccord Capital Corp. ("Canaccord") to use its commercially reasonable efforts to complete a Short Form Offering of Units to raise a minimum of $1,500,000 and a maximum of $2,000,000, at $0.65 per Unit. Each Unit consists of one share and one Warrant. Two Warrants will entitle the holder to acquire one additional share at a price of $0.78 for a period of eighteen months following the date of closing of the Offering. The Warrants will be transferable and, subject to evidence of satisfactory distribution in accordance with the rules of the TSX Venture Exchange, will be listed and posted for trading on the Exchange.

Canaccord will receive a cash commission equal to 7.5% of the gross proceeds of the sale of Units (payable in Units at its election), 100,000 units as a corporate finance fee, agent's warrants entitling it to subscribe for that number of units equal to 10% of the aggregate number of Units sold in the Offering at $0.72 per Unit for a period of eighteen months following the closing of the Offering, and an administration fee of $7,500.

This transaction is subject to regulatory approval.

The net proceeds received by the Company will be used to fund on-going work programs on the Company's Bulakashu Property, to fund new property investigations and acquisitions, and for general working capital purposes.

ON BEHALF OF THE BOARD

"Nick DeMare"

Nick DeMare,
Chief Financial Officer