Mr. Peter Espig reports

NICOLA MINING SHIPS AND RECEIVES PAYMENT FOR APPROXIMATELY 190 DRY METRIC TONNES CONCENTRATE

Nicola Mining Inc. has shipped to MRI Trading AG (the buyer) approximately 190 dry metric tonnes of gold and silver concentrate grading approximately 100 grams gold and 606 grams silver per tonne, for an aggregate total of approximately 610 troy ounces Au and 3,702 troy ounces Ag. The source of the mill feed that produced the concentrate is from Gavin Mines Inc. Terms of the milling and profit share agreement were announced in the company's May 31, 2016, news release.

The company has received the initial payment for the concentrate and will receive final payment upon confirmation of grade and weight. The company has distributed a portion of the proceeds to Gavin Mines under terms of the GMI agreement.

Frank Hogel, chairman of the company, commented, "Nicola holds a unique position in the junior mining sector because it is able to generate cash flow yet also provide significant exploration upside, as highlighted in its Sept. 7, 2016, exploration news release on [the] Thule copper property."