Nicola Mining — Capital/Financing Update 2021

Jun 15, 2021

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TSX.V: NIM

NICOLA MINING INC. COMPLETES MINERAL PURCHASE AGREEMENT TO ACQUIRE 75% ECONOMIC INTEREST OF DOMINION CREEK GOLD PROJECT

VANCO U VER, B.C., June 15, 2021 – Nicola Minin g Inc. ( TSX.V: NIM ) ( FSE: HLI ), (the “ Company ” or “ Nicola ”) is pleased to ann o unce that, after havin g completed satisfactor y due diligenc e , it is proce e ding with t h e acquisition of 50% of the Domini o n Creek Pr o perty (the “ Gold Project ” ) , which is located 43 kilometers northeast of the To w n of Wells and abou t 110 kilomete r s east-sou t heast of P r ince George, pursuant to the Mineral Purch a se Agreement it entered into with Hi g h Range E xploration L td. (“ High Range ”). T he Compa n y announc e d on Septem b er 17, 202 0 , that it ha d signed a S trategic Milling and Pr o fit Share A g reement (“ Profit Share Agreement ” ) with High R ange and on Septem b er 23, 20 2 0, that it h a d entered into a Letter of Intent (“ LOI ”) to acquir e a 50% inte r est in the G old Project.

The Co m pany has c ompeted the initial req u ired paym e nt of $225, 0 00, which is to be allo c ated towards the acquisition of 50% of the Dominion Creek Property ( $ 150,000) a n d to com m ence work on a 10,000 tonne bulk s a mple permi t applicatio n ($75,000). The Com p any receiv e d the required funds by requesting a non-dilutive Prep a yment[1] o f US$250, 0 00, which was subsequ e ntly recei v ed on April 27, 2021 . The Com p any anno u nced that it had sig n ed a purchas e contract f o r gold and s ilver conce n trate with O cean Part n ers UK Limited[2] , a co m pany that pro v ides global t rading serv i ces to min e rs, smelter s , and refine r s, on April 3 0, 2021.

Nicola a n d High Ra n ge intend t o obtain a p ermit for t h e Gold Pr o ject for a 1 0 ,000 tonn e bulk sample. In addition t o the Gold Project, the Company a lso announ c es that it is in final sta g es of its mill p reparation t o commen c e producti o n of gold and silver c o ncentrate w ith Blue L a goon Resourc e s[3] .

The Do m inion Cree k Property is a high-gra d e gold syst e m in which the vein ou t crops at su r face. On Sept e mber 23, 2020, the Company ann o unced that it had assa y ed 23 sele c t samples[4] t aken from ma t erial extrac t ed from th e Number 1 6 Vein and t h e Pit Vein z ones and s ent them t o ALS Metallur g y Laborato r y[5] (“ ALS Lab ”) locate d in Kamloo p s, BC. S a mple highli g hts included the following:  Sample 204467: 81.7 g/t Au and 136.0 g/t Ag  Sample 204473: 105.0 g/t Au and 156.0 g/t Ag  Sample 204474: 149.0 g/t Au and 270.0 g/t Ag

1 Prepay m ent is a rev o lving US$5 0 0,000 prepayment provi s ion that allo w s the Com p any to requ e st an advance p repayment o f its producti o n for the pu r pose of wor k ing capital. 2 Ocean P artners UK L imited oper a tes in a number of countr i es, includin g Canada, Chile, China, C y prus, Mexico, M ongolia, N e therlands, Peru, Taiwan, Turkey, United Kingdo m , and the U nited State s , and retains a g ency repres e ntation in A r gentina, Aus t ralia, Bolivia, Brazil, Chil e , Ecuador, I n dia, Japan, South Africa, S o uth Korea. T he Compan y maintains a strong globa l network of r elationships a nd contacts in the base met a l mining an d smelting se c tor. 3 The Co m pany anno u nced in its M ay 5, 2021 n ews release that on April 1, 2021, Blu e Lagoon Inc . sent to Nicola t he first truck of gold and s ilver mill fee d from its Do m e Mountain Gold-Silver M ine. 4 Select s a mples may n ot be indica t ive of Numb e r 16 Vein an d the Pit Vei n zones grad e s. 5 ALS is t he global le a der in metallurgical testi n g and offer s mineral pr o cessing testing by both b ench scale and pilot sca l e facilities, hydrometall u rgical and mineralogic a l test services, and p roject manage m ent by expert metallurgist s .

• Sample 204481: 125.0 g/t Au and 256.0 g/t Ag

• Sample 204484: 106.0 g/t Au and 164.0 g/t Ag

The average grade from this sampling is 61.3 g/t Au and 173.7 g/t Ag (see Table 1).

Table 1: Gold and Silver Grades from Select Samples Taken from the 16 Vein and Pit Vein

Sample Number Au g / t Ag g / t	Sample Number Au g / t Ag g / t
204465 27.0 178 204466 38.0 386 204467 81.7 136 204468 37.4 150 205569 24.0 68 204470 50.5 164 204471 17.8 124 204472 63.3 248 204473 105.0 156 204474 149.0 270 204475 78.2 170	204476 68.1 246 204477 37.6 130 204478 45.6 118 204479 71.4 134 204480 57.1 138 204481 125.0 256 204482 45.7 84 204483 37.7 178 204484 106.0 164 204485 51.7 238 204486 66.4 132 204487 25.4 126

Subsequent to assaying the 23 samples taken from the Number 16 Vein and the Pit Vein material, the Company took four chip samples across mineralization exposed in a historical trench comprising vein material and adjacent rock, and one grab sample representative of vein material from both exposed veins. The results, which were in a news release dated October 26, 2020, are shown in Table 2, below:

Table 2: Chip Sample and Representative Vein Grab Sample Results.

Sample	KG	Assay Percentage	Assay Percentage		Assay g / t
		Pb	Zn	Ag Au
Surface Chip (no tag)	2.4	22.1	16.2	209.0 56.2
A00204491	1.3	12.7	8.6	176.0 34.9
A00204490	0.95	0.2	0.1	4.0 0.27
A00204489	1.3	2.7	2.7	46.0 13.2
A00204488	0.96	0.3	0.1	5.0 1.55

DOMINION CREEK PROPERTY HISTORY

The Dominion Creek Property consists of 8 contiguous mineral claims (55 units) totaling approximately 1,040 hectares. A 1,180 tonne bulk sample from the South Zone was excavated in 1992 and limited drilling has occurred. The site was owned by Noranda Exploration Company Ltd., who initially completed a small (20 sample) geochemical silt survey in 1986 and was encouraged by those results to complete a larger geochemical soil sampling campaign (3,399 samples). There are two mineralized areas that include a small bulk sample pit and a mineralized outcrop containing multiple distinctive veins.

Eighty tonnes of concentrate was shipped and processed at the Cominco smelter in Trail in 1992. The mill head grade determined for the bulk sample was 14.1 g/t Au and the average gold

recovery was 93%[6] . Little material sorting was conducted at the time but visual separation of mineralized rock on site prior to transport is viable. This sorting is expected to increase grade and minimize transportation cost. Noranda Exploration Company Ltd.'s exploration program included 53 diamond drill holes, totaling 3,483.7 meters. Drilling in the South Zone covered an area of approximately 300 meters by 200 meters. Limited drilling in the North Zone covered two small areas (approximately 50 meters by 60 meters) 300 meters apart. The drill targets were selected using the geochemical sample data and outcrop sampling from trenches and drill access roads.

A Technical Report on the Dominion Creek Project[7] was completed by Geospectrum Engineering on August 22, 2003.

Qualified Person

Kevin Wells, P. Geo, a consulting geologist to the Company, is the independent qualified person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects for the technical disclosure contained in this news release.

About Nicola Mining

Nicola Mining Inc. is a junior mining company listed on the TSX Venture and Frankfurt Exchanges that maintains a 100% owned mill and tailings facility, located near Merritt, British Columbia. The fully-permitted mill can process both gold and silver mill feed via gravity 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.

6 Makepiece, D.A. (2003): Technical Report for Dominion Creek Project. Unpublished. Prepared for XMP Mining Limited. p. 41 p

7 Dominion Creek Project: Cariboo Mining Division of British Columbia for XMP Mining Limited and written by David K. Makepeace, M.Eng., P.Eng. of Geospectrum Engineering.