Mr. Peter Espig reports

NICOLA MINING COMMENCES LONG-TERM PRODUCTION OF GOLD AND SILVER

Nicola Mining Inc. has commenced production of gold and silver concentrate at its wholly owned Merritt mill, located approximately 15 kilometres from Merritt, B.C. In a news release dated July 18, 2024, Nicola announced the processing of a bulk sample mill feed from Talisker Resources Ltd. The current announcement marks the transition to a long-term production plan.

Following extensive upgrades -- including automation, gravity separation and water recirculation systems that underscore the company's commitment to the environmental stewardship -- Nicola is positioned to become a leading milling hub for high-grade gold and silver in British Columbia. In addition to Talisker, Nicola has entered into a partnership with Blue Lagoon Resources and is preparing to commence bulk sample production at the Dominion Creek gold project, in which Nicola holds a 75-per-cent economic interest.

On July 7, 2025, Talisker announced the shipment of approximately 3,100 tonnes of high-grade gold ore from the Mustang project to Nicola's Merritt mill (also known as the Craigmont mill) for processing.

Talisker is actively developing the 1,060, 1,075, 1,105 and 1,120 levels. In-vein development is under way on the BK vein at the 1,075 level, and both on the BK and BK9870 veins at the 1,105 level.

Talisker also commenced long-hole drilling in preparation for the mining and extraction of the first stope, with extraction expected to begin later this week.

Peter Espig, chief executive officer of Nicola, commented: "We are extremely pleased to have commenced long-term production with Talisker and recognize the significant achievements made to date. Securing mining permits, raising capital and executing on a mine plan require dedicated commitment. Nicola's ability to enter into multiple agreements highlights the strategic importance of our M-68 mine permit and underscores British Columbia's accelerated commitment to advancing well-managed mining projects."

Qualified person

Cameron Lilly, PEng, the company's mill manager, is the qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and supervised the preparation of, and has reviewed and approved, the technical information in this release.

About Nicola Mining Inc.

Nicola 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 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 over 10,800 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 includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares.