Nicola Mining — Capital/Financing Update 2021

Jan 6, 2021

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TSX.V: NIM

NICOLA MINING ANNOUNCES DEBT SETTLEMENT

VANCOUVER, B.C. , January 4, 2021 – Nicola Mining Inc. (the “ Company ”) today announces t hat it intends t o pay all of t h e interest o w ing on the s e cured conv e rtible debent u res (the “ Debentures ”) i ssued on Janua r y 9, 2020 by t he issuance o f common s h ares (each, a “ Share ”) of the Compan y . The Debe n tures mature o n January 9, 2023 and be a r interest (“ Interest ”) at a rate of 10 % per annu m , which Inte r est is payable u nder the ter m s of the D e bentures an n ually, at th e option of t h e Company , in cash or b y the issuance o f Shares.

The Com p any intend s on paying a ll of the Int e rest in Shar e s to holders of the Debe n tures to set t le the outstanding interest p a yment oblig a tion for the f irst year of t h e term of th e Debentures .

Accordin g ly, the Com p any intend s to issue 264 , 000 Shares a t a price of $ 0 .125 per Sh a re in settlement of Interest o w ing of $33, 0 00 (the “ Debt Settlement ” ).

The Deb t Settlement i s subject to TSX Ventur e Exchange a pproval. T he Shares w ill be subjec t to a statutory hold period e xpiring on t he date that is four mont h s and one d ay after the c losing of th e Debt Settleme n t.

On behal f of the Boar d of Directors

“ Peter Espig ” Peter Es p ig CEO & D irector

For addit i onal inform a tion contact:

Peter Esp i g Telephon e : (604) 647-0 1 42 Email: pe t er@nicolami n ing.com

Neither th e TSX Ventur e Exchange nor its Regulation Services Pr o vider (as that term is define d in the policie s the TSX V enture Excha n ge) accepts re s ponsibility fo r the adequacy or accuracy o f this release.

Disclaimer for Forward-Looking Information

Certain s tatements i n this press release relat e d to the Debt Settlem e nt and the securities is s uable thereund e r are forwa r d-looking st a tements an d are prospe c tive in natu r e. Forward- l ooking state m ents are not b a sed on hist o rical facts, b u t rather on c urrent expe c tations and p rojections a b out future e v ents, and are t h erefore subject to risks and uncertai n ties which c o uld cause a c tual results t o differ mat e rially from the future resu l ts expresse d or implied by the for w ard-lookin g statements. These state m ents generally can be ide n tified by th e use of for w ard-lookin g words suc h as “may”, “should”, “ will”, “could”, “ intend”, “e s timate”, “pl a n”, “anticip a te”, “expec t ”, “believe” or “continu e ”, or the ne g ative thereof o r similar v a riations. Fo r ward-lookin g statement s in this ne w s release i n clude state m ents

regarding the settlement of the Interest, resale restrictions relating to the securities to be issued and receipt of the approval of the TSX Venture Exchange. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Company’s ability to complete the Debt Settlement, including the risk that the Debt Settlement may not be completed as expected or at all, that the TSX Venture Exchange may not approve the Debt Settlement and such other factors beyond the control of the Company. Such forward looking statements should therefore be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. 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.