Mr. Peter Espig reports

NICOLA MINING AND HIGH RANGE SUBMIT BULK SAMPLE PERMIT APPLICATION AND COMMENCE ROAD WORK AT THE HIGH-GRADE DOMINION CREEK GOLD PROJECT

Nicola Mining Inc. has provided the following updates on the Dominion Creek property, which is located 43 kilometres northeast of the town of Wells and approximately 110 kilometres east-southeast of Prince George. The company has previously announced two key agreements that it has entered in with High Range Exploration Ltd.:

1. Strategic milling and profit-share agreement (1) that provides a 50/50 profit split between the miner, High Range, and the miller, Nicola;
2. Mineral purchase agreement (2) in which the company invested into the gold project for a 50-per-cent interest.

Combined, the profit-share agreement and purchase agreement provide Nicola with a 75-per-cent economic interest in the gold project

Since signing the purchase agreement, High Range and Nicola have worked together to submit a 10,000-tonne bulk sample permit application to the Ministry of Energy, Mines and Low Carbon Innovation (EMLI), and have completed first nations consultation. On July 16, 2023, Alan Raven, representing the gold project, consulted with chief and council of the Lheidli T'enneh First Nation, and on June 27, 2023, received a full letter of support that has been forwarded to EMLI.

As explained in the June 2, 2021, news release, the parties had allocated a budget of up to $300,000 for road construction and infrastructure upgrades; however, a significant amount of roadwork has since been completed by other projects, thereby decreasing the expected budget required for roadwork. Nicola has agreed to finance up to $100,000 to commence roadwork upgrades, which are expected to expedite work on the gold project once the bulk sample permit has been approved.

About Dominion Creek property

The Dominion Creek property consists of eight mineral claims (55 units) totalling 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., which initially completed a small (20-sample) geochemical silt sample survey in 1986 and was encouraged by those results to complete a larger soil geochemical survey (3,399 samples). There are two clear mineralized areas that include a small bulk sample pit and a mineralized outcrop containing multiple distinctive veins.

Nicola conducted due diligence, which included a site visit and sampling. Results from a 9.7-kilogram sample of outcropping sulphide mineralization taken from the No. 16 vein returned 62.1 grams per tonne gold, 320 g/t silver, 23.4 per cent lead and 12.4 per cent zinc (3). Additionally, the owner of the property provided 26.4 kg of mineralized material selected from a bulk sample extracted between 1989 and 1992. The 26.4-kilogram sample had the following grades: 58.7 g/t Au, 130 g/t Ag, 7.7 per cent Pb, 4.2 per cent Zn, 1.49 per cent iron and 4.65 per cent sulphur.

However, it should be noted that 80 tonnes of concentrate were shipped and processed at the Cominco smelter in Trail in 1992, which is a lower grade than samples taken. The mill head grade determined for the bulk sample was 14.1 g/t Au, and the average gold recovery was 93 per cent.

The company also announces that it has issued 400,000 incentive options to its vice-president of exploration for the purchase of up to 400,000 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 15 cents per common share.

Qualified person

Kevin Wells, PGeo, 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 Inc.

Nicola is a junior mining company listed on the TSX Venture Exchange and Frankfurt Stock Exchange 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 with high-grade gold projects. Nicola's fully permitted mill can process both gold and silver mill feed through 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 Creek 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 comprises 51 mineral tenures, 21 legacy claims, 100 cell units and five Crown grants for a total of approximately 2,850 hectares.

(1) News release: Sept. 17, 2020.

(2) News release: June 15, 2021.

(3) Sample taken during a site visit on Aug. 28, 2020, and included in the June 15, 2021, news release.