Mr. Peter Espig reports

NICOLA MINING ANNOUNCES PLAN FOR 2026 DRILLING EXPLORATION AT TREASURE MOUNTAIN SILVER PROJECT

Nicola Mining Inc. is providing an update on preparation work conducted during 2025 on the Treasure Mountain (TM) silver project and its plan for 2026 exploration drilling program. The 2026 TM program is the culmination of an airborne magnetic geophysical survey (conducted by Scott Hogg & Associates Ltd. in 2012), extensive soil sampling programs over multiple years, and 2025 field reconnaissance. Treasure Mountain is a permitted silver mine located 30 kilometres northeast of Hope, B.C., and about a three-hour drive from Vancouver. Treasure Mountain was an operating mine but was put into care and maintenance in 2013, due to depressed silver prices and has always been a core asset to Nicola, which has been strategically waiting for higher silver prices.

As previously announced in the company's June 9, 2025, news release, Nicola received a multiyear area-based (MYAB) exploration permit, allowing the company to conduct diamond drilling and trenching at Treasure Mountain. In addition to receipt of MYAB permit, the company received a ten year mine lease extension (through April 26, 2032; announced on Aug.0 30, 2024), further bolstering the attractiveness of reopening Treasure Mountain.

The area of exploration interest is northwest of the currently suspended mine and consists of several northeast-southwest-trending and steeply dipping sulphide-rich veins. Photos available on-line are associated with 2025 field reconnaissance focused on establishing the 2026 TM program drill targets.

Initial interest in this area was driven by Coeur Mining's 2012 investment into the company giving it a 12.7-per-cent ownership at time of investment. Coeur purchased shares at a price of $1.08 ($20.6 when considering subsequent rollbacks).

Previous exploration work along this trend is limited to six percussion holes totalling 274 metres in 1994 and 14 "backpack drill" holes totalling 25 m in 2020. Widespread soil sampling was also conducted in 2019 and 2020. Limited rock samples were collected in 2020 and 2021. The most recent exploration along this trend (sampling conducted by Nicola in 2021) is described in assessment report No. 39721 (available on ARIS). Results from these programs are encouraging and demonstrate the presence of vein-hosted silver, copper, lead, zinc and gold. This provides support for initial diamond drilling to establish the width of the trend and mineralization at depth. Currently mineralization is present on surface and open in all directions.

Peter Espig, chief executive officer, commented: "Recently we have garnered accelerated interest from both investors and strategics that have become increasingly excited about Treasure Mountain. At Nicola, we have always been aware of its significant potential, as highlighted by Coeur's investment in the company at a time prior to Nicola securing ownership of New Craigmont copper project and commencing gold production and preinvestment in Dominion gold project. In addition to these other projects, for the past decade we have continued to review, maintain and explore Treasure Mountain, which is more than an exploration project but is a fully permitted mine that can be reopened. We continue to review all possibilities and are excited for the 2026 TM program."

Qualified person

The scientific and technical disclosures included in this news release have been reviewed and approved by Will Whitty, PGeo, who is the qualified person as defined by NI 43-101. Mr. Whitty is vice-president of exploration for the company.

About Nicola Mining Inc.

Nicola Mining 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.