Mr. Peter Espig reports

NICOLA MINING PREPARES TO RECOMMENCE MILLING OPERATIONS

Nicola Mining Inc. is preparing to recommence milling operations under its long-term mining and milling profit share agreement with Gavin Mines Inc. The company had hoped to recommence operations in August, but there were delays with mine production. Pursuant to the long-term agreement, Gavin Mines plans to ship up to 40,000 tonnes of mill feed per year to the company's 200-tonne-per-day mill facility, located 14 kilometres from Merritt, B.C.

On April, 2016, the company received an amendment to its mine permit, M-68, allowing it to process third party material. Because the mill is centrally located in British Columbia, maintains a fully lined tailings facility and is constructed on a wholly owned freehold mine site, it can serve as a project facilitator/consolidator for British Columbia-based small-to-mid-sized mine projects.

Expected grades of the Gavin Mines project are highlighted in Linden Mining and Consulting's 2012 update report; the mineral reserve tonnes were increased to 135,131 tonnes. Average grades using an external cut-off grade of 7.9 grams per tonne gold and an internal cut-off grade of 4.7 grams gold are as follows:

• Gold -- 11.2 grams per tonne;
• Silver -- 100.8 grams per tonne.

The long-term agreement is expected to initially fill approximately 50 per cent of the mill's capacity, which is still able to process material from other sites or accept additional material from Gavin Mines, which has a 75,000-tonne-per-year small mines permit. Once the mill recommences operations, it is expected to operate year-round.

Peter Espig, chief executive officer, commented: "Recommencing milling operations has been a frustrating process. While we understand that projects get delayed, but there is a greater sense of urgency for smaller producers than there is for majors. Gavin has done a commendable job to move its project to this stage. The company will continue to provide clarity on operations as well as its 2018 exploration program throughout the remaining part of 2018."

About Nicola Mining Inc.

Nicola Mining is a junior mining company listed on the TSX Venture Exchange and is in the process of recommencing mill feed processing operations at its 100-per-cent-owned state-of-the-art mill and tailings facility, located near Merritt, B.C. It has already signed four mill profit share agreements with high-grade gold producers. The fully permitted mill can process both gold and silver mill feed through gravity and flotation processes. The company also owns 100 per cent of Treasure Mountain, a high-grade silver property, and an active gravel pit that is located adjacent to its milling operations.

About New Craigmont

The New Craigmont project is a wholly owned copper property with an active mine permit (M-68), located within the world-class Highland Valley porphyry district. It benefits from excellent infrastructure. The property is at the corner intersection of the Nicola and Guichon batholiths, of which the latter is the precursor to mineralization at Highland Valley. In November, 2015, Nicola became the first group in decades to consolidate ownership of the property and has been actively conducting mineral exploration since.