Mr. Peter Espig reports

NICOLA MINING ANNOUNCES CLOSING OF OVER-ALLOTMENT OPTION IN PUBLIC OFFERING

Nicola Mining Inc. has issued an additional 139,534 American depositary shares (ADSs) at the public offering price of $6.45 (U.S.) per share for total gross proceeds of approximately $900,000 (U.S.) pursuant to the partial exercise of the underwriters' overallotment option in connection with Nicola's previously announced public offering of ADSs and warrants. The overallotment has now been fully exercised, and the total number of securities sold by Nicola in the public offering was 1,069,767 ADSs and warrants to purchase up to 1,069,767 ADSs and gross proceeds were approximately $6.9-million (U.S.).

Maxim Group LLC acted as the sole book-running manager for the offering.

The offering was made pursuant to an effective shelf registration statement on Form F-10 (file No. 333-293048) previously filed with the U.S. Securities and Exchange Commission (SEC) and became effective on Jan. 29, 2026. Nicola may offer and sell securities in both the United States and other jurisdictions outside of Canada. No securities were offered or sold to Canadian purchasers under the offering. A final prospectus supplement and accompanying prospectus relating to the offering and describing the terms thereof was filed with the SEC and forms a part of the effective registration statement and is available on the SEC's website. Copies of the final prospectus supplement and accompanying prospectus may be obtained by contacting Maxim Group LLC, at 300 Park Ave., 16th floor, New York, N.Y., 10022, attention: syndicate department, or by telephone at 212-895-3745 or by e-mail at syndicate@maximgrp.com. The final prospectus supplement is available free of charge on the SEC's website and is also available on the company's profile on SEDAR+.

About Nicola Mining Inc.

Nicola Mining is a junior mining company listed on the Nasdaq Capital Market, 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 British Columbia-based 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 property that hosts historical high-grade copper mineralization and 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.

We seek Safe Harbor.