Nicola Mining — Capital/Financing Update 2020

May 20, 2020

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TSX.V: NIM

NICOLA MINING ANNOUNCES CLOSING OF SECURED CONVERTIBLE DEBENTURE OFFERING

VANCOUVER, BC , May 20, 20 2 0 – Nicola M ining Inc. ( the “ Company ”) is ple a sed to ann o unce that, fur t her to its N ews Release of May 4 , 2020, it h as comple t ed its non- b rokered p r ivate placeme n t (the “ Offering ”) of a n aggregate principal a m ount of $2 5 0,000 of se c ured convertible debentu r es (the “ Debentures ”) o f the Com p any.

The agg r egate gros s proceeds from the s a le of the O ffering will be used t o repay ex i sting debentu r es of $250,000.

The Deb e ntures incl u de the foll o wing key t e rms:

• t h e aggregat e principal amount of the Debent u res issued pursuant t o the Offer i ng is $ 2 50,000;

• t h e Debentu r es bear inte r est at a rat e of 10% pe r annum, w h ich interes t shall be pa y able a n nually, in c ash or in c o mmon sha r es (each, a “ Share ”) o f the Comp a ny, at the option o f the Comp a ny;

• t h e Debentu r es mature t h ree years a fter the dat e of issuanc e (the “ Maturity Date ” ) , and t h e principal amount of the Debent u res, togeth e r with any accrued an d unpaid in t erest s h all be payable on the M aturity Dat e ;

• t h e principal amount of the Debent u res is convertible into Shares prio r to the Ma t urity D ate, at the o ption of the holder, at a conversion price of $0. 1 0 per Shar e ; and

• t h e repayme n t of the o u tstanding principal an d interest o f the Deben t ures are se c ured a g ainst the a s sets of the C ompany.

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 four month s and one d a y after clos i ng of the O f fering.

An insider of the C o mpany acq u ired a Deb e nture in th e amount o f $20,000 w h ich constit u ted a “related party trans a ction” wit h in the mea n ing of Mul t ilateral Ins t rument 61- 1 01 Protection of Minorit y Security H o lders in Sp e cial Trans a ctions (“ MI 61-101 ”). T h e issuance of the Debe n ture to the in s ider is exe m pt from th e valuation r equiremen t of MI 61-1 0 1 by virtue of the exe m ption containe d in sectio n 5.5(b) as t h e Compan y ’s shares a r e not liste d on a spec i fied marke t and from the minority s h areholder a pproval re q uirements o f MI 61-10 1 on the ba s is the exemption containe d in Section 5.7(1)(a) of MI 61-101 a s the amou n t did not e x ceed 25% o f the Company’s market capitalizatio n .

The Company closed on the Offering in less than 21 days to pay outstanding convertible debentures.

On behalf of the Board of Directors

“ Peter Espig ” Peter Espig CEO & Director

For additional information contact:

Peter Espig Telephone: (604) 647-0142 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.