Mr. Peter Espig reports

NICOLA MINING INC. PROVIDES UPDATE ON LETTER OF INTENT WITH NITETTSU MINING

Nicola Mining Inc. has suspended the process of entering into a definitive agreement with Nittetsu Mining Co. Ltd. with respect of the company's wholly owned New Craigmont copper property.

The company announced that it had entered into a non-binding letter of intent (LOI) on Sept. 6, 2023, which was subsequently followed by a two-week site visit by Nittetsu's geological team.

During the site visit, Nittetsu and Nicola worked on mapping, evaluating recent and historic drill core, and compilation of historical data. Two key factors limited the evaluation process:

• Over 90 per cent of the property is covered with overburden or postmineral rocks, thereby limiting the ability to see mineralization via outcroppings.
• The property, other than areas associated with the historic mine, remains largely unexplored and lacks drill data.

While the outcropping at the WP Minfile showing displays strong copper mineralization, the source of such mineralization remains unclear and will require additional exploration to confirm, as the area has never been drilled or had an induced polarization survey.

During the site visit, Nicola and Nittetsu concluded that there are two key zones of high interest, the WP zone and the western area between the historic pit and West Craigmont zone, the second of which has high-grade copper drill results in skarn. Nicola will be able to leverage its operating cash flow to conduct its 2024 exploration, which the company will release upon completion of the plan.

In addition to Nittetsu, the company is concurrently working with the University of British Columbia (UBC) and UBC's mineral deposit research unit (MDRU) to research the potential and existence of copper porphyry systems. MDRU, in its "New Porphyry Signatures at North America's Highest Grade Historic Copper Mine" poster, which will be released in December, outlines key research objectives and methods for next year and will continue to work with Nicola on the property. This work is part of a Natural Sciences and Engineering Research Council of Canada (NSERC) alliance-supported research project.

Peter Espig, chief executive officer of Nicola, commented: "We are grateful for the experience working with Nitettsu and its value-added input into our ongoing exploration. While we are disappointed with the current outcome, we understand the limits due to the inability to see geological formations at surface, which highlights the importance of conducting additional IP surveys over key target zones. The two sides have a positive relationship and continue to co-operate on exploration. We are also excited to continue to work closely with MDRU next year and very fortunate to be in a position, because of operational cash flow, to fund exploration."

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 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.

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