Mr. Peter Espig reports

NICOLA MINING PROVIDES UPDATE ON DOMINION GOLD PROJECT

Nicola Mining Inc. has completed work at Dominion for 2025 and has completed all mine development for the 10,000-tonne bulk sample, which is planned to recommence in July of 2026. Initially, the company had planned to ship up to 2,000 tonnes to the Nicola mill in 2025 for processing, but opted to wait until next year for two reasons:

• Weather: Abnormally high rainfall during August and September would likely degrade the haul road from overuse.
• Project size: During the mine development phase, which commenced in August following completion of haul road upgrades, a landing area was constructed to provide access for vein extraction. The development phase included lowering the entire Landing by approximately six metres to create a face suited for vein extraction. While developing the landing, three additional veins were discovered.

Historically known veins:

• South pit vein: historically known vein from which previously chip samples were taken in 2020. Samples taken comprised two south pit samples and two 16 vein samples. During 2025, the company commenced vein extraction in the south pit zone, having moved the landing down and working into the vein approximately two metres. Approximately 20 metres from the entrance, the vein expands to approximately five metres in width;
• 16 vein: This historically known vein is located approximately 20 metres from the south pit vein. Chip samples and grab samples were taken from the vein during the Oct. 14, 2020, due diligence process.

Newly exposed veins:

• Midwest vein: located 13 metres from the south pit vein. The vein is approximately one metre wide and exposed over three metres;
• West vein: located 12 metres from the midwest vein. The vein is approximately three metres wide and exposed over six metres;
• 16 east vein: located 1.5 to 2 metres east of the 16 vein. It is approximately 1.5 metres wide and exposed over 40 metres.

Samples from the newly exposed veins were taken by site crew and brought to Paragon Geochemical for analysis. Paragon Geochemical is an ISO 17025:2017-accredited geochemical testing laboratory providing analytical services to the mining industry. Results will be released upon receipt.

Peter Espig, chief executive officer of Nicola Mining, commented: "We have been pleasantly surprised with the work at Dominion, which clearly indicates that the project is larger than initially anticipated. For the 2026 program, we now have five open faces that are accessible from the landing to give approximately six metres of strike length for extraction. These exposed veins also represent attractive exploration targets as they are open at depth."

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 National Instrument 43-101. Mr. Whitty is vice-president of exploration for the company.

Dominion Creek property history

The Dominion Creek property consists of nine mineral claims (55 units) totalling approximately 1,058 hectares. The property was acquired from the prospector N. Kencayd by Noranda Exploration Company Ltd. in 1986. Noranda subsequently conducted geological, geochemical and geophysical surveys, which culminated in an increase in their land position. Between 1987 and 1990, Noranda's exploration program included a small (20 samples) geochemical silt sample survey. Encouraged by those results, a larger soil geochemical survey (3,399 samples) was conducted. Noranda drilled a total of 53 shallow diamond drill holes, totalling 3,483.86 metres (average depth of approximately 65.7 metres). Trenching of several coincident Pb (lead), Zn (zinc), Cu (copper), Ag (silver) and Au (gold) soil geochemistry anomalies resulted in the discovery of several mineralized quartz veins.

Drilling in the south zone covered an area of approximately 300 metres by 200 metres. Limited drilling in the north zone covered two small areas (approximately 50 metres by 60 metres) 300 ,metres apart. The drill targets were selected using the soil geochemistry survey data and outcrop sampling from trenches and the drill access road data. Noranda subsequently returned the property to Mr. Kencayd, who sold it to A. Raven in 1989.

A technical report (1) on the Dominion Creek project was completed by Geospectrum Engineering on Aug. 22, 2003.

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 10,913 hectares along the southern end of the Guichon batholith and is adjacent to Highland Valley Copperc 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.

(1) D.K. Makepeace, 2003. Dominion Creek project technical report for XMP Mining Ltd., Geospectrum Engineering, Aug. 22.