Mr. Peter Espig reports

NICOLA MINING PROVIDES MERRITT MILL OPERATIONAL UPDATE

Nicola Mining Inc. has provided updates on processing activities at its Merritt mill and progress across its precious-metals operations.

Red Eye Resources Ltd.: The company completed processing material sourced from Red Eye stockpiles in September and is awaiting concentrate assay results prior to sale. As announced on Aug. 17, 2026, Nicola and Red Eye entered into a milling profit share agreement. The company expects the associated revenue to be recognized in the fourth quarter of 2026, subject to final assays, sales and applicable revenue-recognition requirements.

Dominion gold project: On June 1, 2026, Nicola announced that it was in the final stages of preparing to commence gold and silver extraction at Dominion, located approximately 43 kilometres northeast of Wells and 110 kilometres southeast of Prince George, B.C. The company has now initiated arrangements to transport and process approximately 1,300 tonnes of mineralized material at the Merritt mill. During mine development and extraction, additional gold- and silver-bearing veins were identified. The significance of these discoveries remains subject to further geological evaluation and assay results.

Blue Lagoon Resources: On Aug. 10, 2026, Nicola announced that it and Ocean Partners U.K. Ltd. had committed to provide an aggregate $10.0-million in financing to support Blue Lagoon's mine development and production expansion. Blue Lagoon has continued to advance its mine development, grade-control activities and production ramp-up, supporting an expanding pipeline of material for processing.

Nicola Mining chief executive officer Peter Espig commented: "Two thousand twenty-six has been a year of substantial execution for Nicola. We have advanced multiple sources of precious-metal mill feed, completed processing of Red Eye material, moved Dominion toward trucking and milling, and supported Blue Lagoon's development and production expansion. These are tangible steps in our strategy to build a diversified, dependable processing platform around our permitted Merritt mill. Importantly, the work undertaken throughout the year is beginning to converge in the fourth quarter, with anticipated concentrate sales and additional processing activity providing a bridge from project development to commercial results. While the timing and magnitude of revenue remain subject to assays, logistics and sales, we believe the operational progress achieved in 2026 provides a considerably stronger foundation for 2027. Our priority is to translate that foundation into sustained throughput, disciplined execution and growing value for shareholders."

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.

About Nicola Mining Inc.

Nicola Mining is a mining company listed on the Nasdaq, TSX Venture Exchange and Frankfurt Stock Exchange. The company owns the Merritt mill and associated tailings facility near Merritt, B.C., and has entered into mining and milling profit-share agreements involving high-grade gold projects. Its permitted mill can process gold- and silver-bearing feed using gravity and flotation circuits.

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 includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares.