Mr. Peter Espig reports

NICOLA MINING INC. SIGNS LETTER OF INTENT WITH NITTETSU MINING CO. LTD. FOR EXPLORATION AT NEW CRAIGMONT COPPER PROJECT

Nicola Mining Inc. has signed a non-binding letter of intent with Nittetsu Mining Co. Ltd., a public arm's-length company based in Japan, whereby Nicola would agree to establish a joint venture entity with Nittetsu in respect of the company's wholly owned New Craigmont copper project in exchange for the payment by Nittetsu of certain exploration costs and other consideration, which could total up to $25-million upon completion.

The LOI is a non-binding agreement which sets out the principal terms on which the parties have agreed to complete the transaction. Subject to satisfactory due diligence and successful additional negotiations, the parties intend to enter into a definitive agreement with respect to the transaction on or before Dec. 23, 2023. During the period until the entry into the definitive agreement, the parties have agreed that their geological and technical teams will work closely together reviewing and organizing project data, which include the historic mine dumps, the historic mine's skarn mineralization and current porphyry targets.

The total aggregate $25-million contribution by Nittetsu would value the New Craigmont project at $62.5-million and would garner Nittetsu a 40-per-cent interest in the New Craigmont copper project. Investment would occur directly into the project. Upon execution of the definitive agreement, Nittetsu expects to invest in two stages:

1. Optional phase -- first stage: During the optional phase, Nittetsu may contribute an aggregate of $10-million in order to achieve a 20-per-cent ownership in the project, which would be reflected as equity in a new company to be established by the parties in respect of the transaction and the property. Nittetsu also maintains the right to discontinue its investment in the project. If Nittetsu opts not to proceed to the second stage, its equity in the project entity would be cancelled and returned to treasury. The first stage is expected to take approximately three years, at which time Nittetsu, at its sole discretion, has the option to move forward to the second stage.
2. FS stage -- second stage: The two-year FS stage will focus on the feasibility of the project with the goal of moving into extraction of copper from the project, including from the historic waste dumps. Upon completion of the FS stage and a total contribution of at least $15-million, Nittetsu will have earned a 40-per-cent interest in the property, reflected as equity in the project entity.

Under a definitive agreement, Nittetsu will act as a sales agent for the 100 per cent copper production or can tag along with Nicola if the latter receives superior pricing for production offtake.

Peter Espig, chief executive officer of Nicola, commented: "We are very excited to be working with Nittetsu, which brings a great deal of experience and credibility to our New Craigmont copper project. We believe that the postmoney valuation of the project will be augmented with the capital and are very excited to commence working together. In addition, the contributions does not increase the outstanding shares of the company and excludes our fully permitted silver mine, Treasure Mountain, and the Merritt Milli facility. We are also very excited to know that the project is Nittetsu's first foray into a British Columbia-based copper project."

Nittetsu is a diversified company that was founded in 1899 and currently has operations globally. Current businesses include: mining and distributing industrial minerals; purchasing and distributing coal and petroleum products; developing and distributing equipment, machinery and environment-related products; real estate; power generation using renewable energy; and the supply and sale of electricity. Nittetsu operates the Atacama copper mine and is currently in the process of developing a second copper mine in the Republic of Chile.

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 Mining 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 via 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 10,084 hectares along the southern end of the Guichon batholith and is adjacent to Teck Resources Ltd.'s Highland Valley, Canada's largest copper mine. The company also owns 100 per cent of the Treasure Mountain property, consisting of 29 mineral tenures covering 2,178 hectares (ha) and a mining lease covering 335 ha.

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