Mr. Peter Espig reports

NICOLA MINING ANNOUNCES GRANT OF STOCK OPTIONS

Nicola Mining Inc. has granted an aggregate of four million stock options to certain directors, officers, employees and an adviser for the purchase of up to four million common shares of the company pursuant to its equity incentive plan. Each option is exercisable for a period of five years at a price of 18 cents per common share.

About Nicola Mining Inc.

Nicola Mining is a junior mining company listed on the TSX Venture and Frankfurt stock exchanges that maintains a 100-per-cent-owned mill and tailings facility, located near Merritt, B.C. It has signed mining and milling profit-share agreements for high-grade gold projects. Nicola Mining's fully permitted mill can process both gold and silver mill feed by gravity and flotation processes.

The company owns 100 per cent 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 per cent of the Treasure Mountain property, which is composed of 51 mineral tenures, 21 legacy claims, 100 cell units and five Crown grants for a total of approximately 2,850 hectares.