Nicola Mining — Capital/Financing Update 2020

Dec 22, 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 <==

TSXV: NIM

NICOLA MINING ANNOUNCES CLOSING OF FLOW-THROUGH PRIVATE PLACEMENT

VANCOUVER, BC, December 2 2, 2020 – N icola Mini n g Inc. ( TSX.V: NIM ) ( FSE: HLI ) , (the “Compa n y” or “Nic o la”) annou n ces that, f u rther to its n ews releas e dated Dec e mber 14, 2 0 20, it has com p leted its fl o w-through p rivate plac e ment fina n cing (the “ Offering ”) pursuant to w hich it sold a n aggregat e of 4,761,5 3 5 units (ea c h, a “ Unit ” ) at a pric e of $0.13 p e r Unit for gross proceed s of up to $6 1 8,999.55. T he Offering was oversu b scribed by $18,999.55.

Each U n it consists o f one com m on share o f the Com p any issue d on a “flo w -through” basis pursuan t to the Income Tax Act (Canada) (each, a “ Share ”) and o n e-half of o n e common s hare purchas e warrant (e a ch whole w arrant, a “ Warrant ”), w ith each Warrant entit l ing the hol d er to purchas e one Share (each, a “ Warrant Share ”) (on a n o n-flow-thro u gh basis) a t a price of $0.17 per War r ant Share f o r a period o f two years following t h e closing o f the Offeri n g.

The Co m pany paid cash finder’s fees of $4 0 ,144.97 an d issued 66, 5 00 share p u rchase wa r rants (the “ Finder’s Warrants ”) to t hree finders in conne c tion with c ertain sub s criptions i n the Offering . The Finde r ’s Warrant s have the s a me terms a s the Warra n ts.

All secu r ities issue d in connec t ion with t h e Offering are subjec t to a statu t ory hold period expiring April 23, 2021.

An insi d er of the C o mpany acq u ired 150,0 0 0 Units in t he Offerin g which con s tituted a r e lated party tr a nsaction under Multila t eral Instru m ent 61-101 - Protection o f Minority S ecurity Hol d ers in Special T ransactions ( “ MI 61-101 ”). The is s uance to t h e insider is exempt fr o m the val u ation require m ent of MI 6 1-101 by t h e virtue o f the exem p tion conta i ned in sect i on 5.5(b) a s the Compan y ’s shares a re not list e d on a sp e cified mar k et and fro m the min o rity share h older approva l requireme n ts of MI 61 - 101 by virt u e of the ex e mption co n tained in S e ction 5.7(1)(a) as the valu e of the Units did not ex c eed 25% of the Compa n y’s market capitalizati o n.

The agg r egate gross proceeds f r om the sal e of the Off e ring are ex p ected to b e used for f u rther explorat i on on the C ompany’s w holly-owned New Cr a igmont Pr o perty, whi c h covers a n area of 10,08 4 hectares a long the s o uthern end of the Gui c hon Batho l ith and is adjacent to Teck Resourc e s Ltd.’s Hi g hland Valle y Copper, C anada’s lar g est copper m ine

About Nicola Mining

Nicola M ining Inc. is a junior mining company list e d on the T SX Ventu r e and Fra n kfurt Exchang e s that mai n tains a 100% owned m ill and taili n gs facility, located ne a r Merritt, British Columb i a. It has a l ready sign e d four mill profit s h are agree m ents with h igh grade gold produce r s. The full y -permitted m ill can pr o cess both g old and sil v er mill fee d via gravit y and

flotation processes. The Company also owns 100% of the New Craigmont Project, a high-grade copper property, and an active gravel pit that is located adjacent to its milling operations.

On behalf of the Board of Directors

“ Peter Espig ”

Peter Espig CEO & Director

For additional information

Contact: Peter Espig Phone: (778) 385-1213 Email: info@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.