Mr. Peter Espig reports

NICOLA COMPLETES 2026 MINING CAMPAIGN AT DOMINION GOLD PROJECT AND DELIVERS MATERIAL TO MERRITT FOR PROCESSING

Nicola Mining Inc. has completed its 2026 mining campaign at the Dominion Creek gold project, including the shipment of approximately 1,300 tonnes of high-grade mill feed to Merritt, B.C., for processing.

The company expects material sourced from Dominion gold and Red Eye resources, together with mill feed processed under its agreement with Blue Lagoon Resources, to contribute to fourth quarter revenue. The 2026 mining campaign was initially scheduled to commence in early July; however, the start was modestly deferred by the mid-July arrival of purchased equipment and additional mine development associated with the identification of previously unrecognized mineralized veins. With mine development completed and key mining equipment mobilized and operational, Nicola believes Dominion Gold is positioned to support increased material extraction and potential gold production in 2027. These developments provide a foundation for improved operational continuity and greater utilization of the company's Merritt processing infrastructure.

Mining activities in 2026 focused on three mineralized structures: the approximately five-metre-diameter Pit vein, the approximately 1.5-metre-diameter 16 vein and the newly identified 16 East vein.

The late July deployment of the Traxxon drilling unit mounted on a CAT 336 excavator materially improved the efficiency of extraction activities. The equipment is expected to enhance mining productivity during the 2027 campaign.

The identified veins remain open in multiple directions while the discovery of additional mineralized structures during the 2026 program highlights opportunities for further geological evaluation and potential expansion of future mining activities.

Nicola Mining chief executive officer Peter Espig commented: "The completion of our 2026 Dominion gold campaign represents an important milestone in our strategy to translate targeted mineral asset investments into tangible operating activity within a disciplined time frame. In approximately three years, we have advanced Dominion gold from acquisition through mine development and bulk sample extraction, demonstrating the potential value of integrating selective mining opportunities with our wholly owned Merritt processing facility. Looking ahead, we intend to evaluate additional acquisition opportunities with a clear pathway to potential monetization within approximately three years while continuing to advance our exploration portfolio. This combination of near-term operating opportunities, established processing infrastructure and longer-term exploration potential provides investors with differentiated exposure to both execution-driven growth and mineral discovery."

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 comprises nine mineral claims (55 units) covering approximately 1,058 hectares. Noranda Exploration Company Ltd. acquired the property from prospector N. Kencayd in 1986 and subsequently undertook geological, geochemical and geophysical investigations that supported an expansion of its land position. Between 1987 and 1990, the exploration program included an initial geochemical silt survey comprising 20 samples, followed by a more extensive soil geochemical survey comprising 3,399 samples. Noranda also completed 53 shallow diamond drill holes totalling 3,483.86 metres, with an average hole depth of approximately 65.7 metres. Trenching of coincident lead, zinc, copper, silver and gold soil-geochemical anomalies led to the identification of several mineralized quartz veins.

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

About Nicola Mining Inc.

Nicola Mining is a mining and mineral exploration company listed on the TSX Venture Exchange and Frankfurt Stock Exchange. The company owns a fully permitted mill and tailings facility near Merritt, B.C., capable of processing gold- and silver-bearing mill feed using gravity and flotation circuits. Through its mining and milling profit-sharing agreements with high-grade gold projects, Nicola seeks to leverage this infrastructure to generate operating opportunities while advancing its broader mineral asset portfolio.

Nicola owns 100 per cent of the New Craigmont project, a copper exploration property encompassing more than 10,800 hectares along the southern margin of the Guichon batholith, adjacent to Highland Valley copper, Canada's largest copper mine. The company also holds a 100-per-cent interest in the Treasure Mountain property, comprising 30 mineral claims and a mineral lease over more than 2,200 hectares.

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