Mr. Peter Espig reports

NICOLA MINING ANNOUNCES 2019 ROCK SAMPLES RESULTS AT TREASURE MOUNTAIN SILVER MINE PROPERTY

Nicola Mining Inc. has received rock sample results taken during the company's 2019 soil sampling program at its wholly owned Treasure Mountain property, a fully permitted high-grade silver mine located approximately 90 minutes from its Craigmont mill.

The company provided results from soil samples in a news release issued on Jan. 23, 2020. In addition to soil sampling, the company took five rock samples, three from soil sample locations where a rock sample was taken in lieu of adequate soil and two samples from outcropping mineralized material that appears to be part of the Cal vein. Sample 2100151, which was one of the two Cal vein samples, provided significant mineralization.

Sample 2100151:

• 813 grams per tonne silver and 0.518 g/t gold, and 19 per cent zinc and 4.66 per cent copper.

The Cal vein is a well-known structure located on the northern side of the mountain, within the MB zone, which is located approximately 1.5 kilometres from the Treasure Mountain mine.

The select rock samples of mineralized vein material from the 2019 program appear to be from the same Cal vein system that was tested in 2010 and 2013 that also provided high-grade assays. Mineralization remains open and the company plans to conduct additional testing during 2020.

Scientific and technical information

All information of a scientific or technical nature contained in this document, including sampling, analytical and test data, has been reviewed and approved by Kevin Wells, PGeo, a consulting geologist to Nicola Mining. Mr. Wells is a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

Sample preparation, analysis and quality assurance/quality control

Samples were received at Activation Laboratories in Kamloops and samples were prepared by crushing and then pulverizing to a size of greater than 95 per cent 105-micrometre or less. Multielement analysis was by inductively coupled plasma optical emission spectrometry on a four-acid digestion. Gold was obtained by a 30-gram fire assay and atomic absorption spectroscopy. Activation Laboratories is an ISO-17025 accredited laboratory.

About Nicola Mining Inc.

Nicola Mining is a junior mining company and is in the process of recommencing mill feed processing operations at its 100-per-cent-owned modern mill and tailings facility, located near Merritt, B.C. It has already signed four mill profit share agreements with high-grade gold producers.