Nicola Mining — Capital/Financing Update 2020

Jan 10, 2020

==> picture [29 x 51] intentionally omitted <==

==> picture [58 x 51] intentionally omitted <==

==> picture [59 x 51] intentionally omitted <==

==> picture [58 x 51] intentionally omitted <==

==> picture [13 x 51] intentionally omitted <==

TSX.V: NIM

NICOLA MINING ANNOUNCES CLOSING OF SECOND AND FINAL TRANCHE OF CONVERTIBLE DEBENTURE OFFERING

VANCOUVER, B.C. , January 9 , 2020 – N icola Mini n g Inc. (the “ Company ”) is pleas e d to announce that, furt h er to its N e ws Release s of Nove m ber 13, 201 9 and November 21, 2 0 19, it has co m pleted a second a n d final t r anche of its non-b r okered pr i vate plac e ment (the “ Offering ”) pu r suant to which it issu e d an aggr e gate of $350,000 of se c ured convertible debentu r es (the “ Debentures ”). The Comp a ny has rai s ed total pr o ceeds of $7 , 350,882 fro m the closing o f the first and second t ranches of t he Offerin g . The Debe n tures incl u de the foll o wing key ter m s:

• t h e Debentu r es shall be a r interest at a rate of 1 0% per an n um, which interest sh a ll be payable ann u ally, in cas h or in com m on shares ( each, a “ Share ”) of the Company, a t the o p tion of the Company;

• t h e Debentu r es will mat u re three ye a rs after th e date of iss u ance (the “ Maturity Date ”), a n d the pri n cipal amou n t of the D ebentures, t ogether with any acc r ued and u n paid i n terest shall be payable o n the Mat u rity Date;

• t h e principa l amount o f the Debe n tures shall be converti b le into Sh a res prior t o the M aturity Date, at the opt i on of the h o lder, at a c o nversion p r ice of $0.10 per Share; a nd

• t h e repayment of the o utstanding principal a nd interest of the De b entures w i ll be s e cured agai n st the asset s of the Co m pany.

The Co m pany did n o t pay any f i nder’s fees i n connecti o n with the O ffering.

Proceed s from the O ffering will be used fo r general w o rking capit a l and may be used to r epay existing d ebentures.

The De b entures an d any Shar e s issued u p on conver s ion of the Debentures are subjec t to a statutor y hold perio d expiring o n the date t hat is four m onths an d one day after the closing of the Offe r ing.

On beha l f of the Board of Direct o rs

“ Peter E s pig ” Peter E s pig CEO & D irector

For additional information contact:

Peter Espig Telephone: 778. 385.1213 Email: peter@nicolamining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.