Mr. Peter Espig reports

NICOLA MINING ANNOUCNES UPSIZE OF FINANCING TO $4.9 MILLION

Nicola Mining Inc. has upsized its previously announced non-brokered private placement (on Jan. 13, 2026) to a total of $4.9-million. The company has received strong support from existing shareholders and new institutional investors, reflecting confidence in its operational milestones and long-term strategy.

The company will issue 5,444,444 units at a price of 90 cents per unit for gross proceeds of up to $4.9-million.

Each unit will consist of one common share of the company and one transferable common share purchase warrant, with each warrant entitling the holder to purchase one share at a price of $1.10 per share for a period of three years following the closing of the offering, provided that the expiry of the warrants can be accelerated if the closing price of the company's common shares on the TSX Venture Exchange is $1.70 or greater for a minimum of 10 consecutive trading days and a notice of acceleration is provided in accordance with the terms of the warrants.

All securities issued in connection with the offering will be subject to a statutory holding period expiring four months and one day after closing of the offering. Completion of the offering is subject to the approval of the exchange. Any participation by insiders in the offering will constitute a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, but is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

The aggregate gross proceeds from the offering will be used for ball mills, general operations and corporate working capital.

Such use of proceeds may include, but is not limited to, the purchase and installation of milling equipment to expand processing capacity to approximately 500 tonnes per day, the addition of a secondary ball mill, supplementary cleaner flotation cells, and associated pumping infrastructure. Any remaining equipment requirements may be met through the refurbishment and recommissioning of existing plant and machinery. In addition, spare bowl and mantle assemblies may be procured to support routine crusher maintenance and ensure continuing operational reliability.

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. Mr. Lilly supervised the preparation of and has reviewed and approved the technical information in this release.

About Nicola Mining Inc.

Nicola Mining is a junior mining company listed on the TSX-V and the 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 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 is a fully-permitted high-grade silver mine and includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares.