Mr. Peter Espig reports

NICOLA MINING ANNOUNCES GRANT OF STOCK OPTIONS

Nicola Mining Inc. has granted an aggregate of three million stock options to certain directors, officers, employees and consultants for the purchase of up to three 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 26.5 cents per common share.

About Nicola Mining Inc.

Nicola Mining is a junior mining company listed on the 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.

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 Highland Valley Copper, Canada's largest copper mine. The company also owns 100 per cent of the Treasure Mountain property, which include 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares.

We seek Safe Harbor.