Nicola Mining — Capital/Financing Update 2022

Dec 20, 2022

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TSXV: NIM

NICOLA MINING ANNOUNCES PROPOSED EXTENSION TO MATURITY DATE OF SUBORDINATED SECURED CONVERTIBLE DEBENTURES

VANCOUVER, BC, December 19, 2022 – Nicola Mining Inc. ( TSX.V: NIM ) ( FSE: HLI ) (OTCQG: HUSIF) , (the “ Company ” or “ Nicola ”) is pleased to announce that it intends to extend (the “ Extension ”) the maturity date of the secured convertible debentures (each, a “ Debenture ”) in the aggregate principal amount of $350,000 issued on January 9, 2020 to certain subscribers (the “ Holders ”), pursuant to a private placement accepted by the TSX Venture Exchange (the “ Exchange ”) on January 13, 2020. On August 4, 2020 and August 13, 2020, one Holder converted his Original Debenture in the aggregate amount of $20,000, leaving an aggregate principal amount of $330,000.

The Debentures mature on January 9, 2023 (the “ Maturity Date ”) and bear interest (the “ Interest ”) at a rate of 10% per annum, which Interest is payable, at the option of the Company, in cash or by the issuance of common shares of the Company (each, a “ Share ”) at a price per Share equal to the market price of the at the time of issuance. The Debentures are also convertible into Shares a conversion price of $0.10 per Share at any time, and from time to time, until the Maturity Date.

The Company wishes to extend the Maturity Date from January 9, 2023 to January 9, 2025.

The Company also has the right to prepay all or any portion of the outstanding principal of the Debenture, and accrued and unpaid interest thereon, at its sole discretion without penalty or bonus.

The Extension is subject to Exchange approval.

About Nicola Mining

Nicola Mining Inc. is a junior mining company listed on the Exchange and Frankfurt Exchanges that maintains a 100% owned mill and tailings facility, located near Merritt, British Columbia. It has signed Mining and Milling Profit Share Agreements with high grade gold projects. Nicola’s fully-permitted mill can process both gold and silver mill feed via gravity and flotation processes.

The Company owns 100% of the New Craigmont Project, a high-grade copper property, which covers an area of 10,913 hectares along the southern end of the Guichon Batholith and is adjacent to Teck Resources Ltd.’s Highland Valley Copper, Canada’s largest copper mine. The Company also owns 100% of the Treasure Mountain Property, consisting of 30 mineral tenures covering 513 hectares (ha) and a mining lease covering 335 ha.

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.

Disclaimer for Forward-Looking Information

This news release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of Nicola, such as statements that Nicola intends to extend the Maturity Date of the Debenture. There are numerous risks and uncertainties that could cause actual results and Nicola’s plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) adverse market conditions; or (ii) the Exchange not approving the Extension. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Nicola does not intend to update these forward-looking statements.