Nicola Mining Closes Second Tranche of Financing

TSX.V: N NIM NEWS RELEASE

NICOL LA MINING G CLOSES SECOND TR RANCHE OF FINANCI ING

VANCOUVER, B.C., ng Inc. (the “Company” or “Nicola , December 12, 2018 – N Nicola Minin a”) is pleased to announce that it ha as completed a second tranche of its previously a announced private placemen nt financing ( (the “Financi ing”) as desc cribed in its News Releas ses of Novem mber 21, 2018 8 and Novembe er 27, 2018, pu ursuant to wh hich it sold an n aggregate of f 1,820,000 un nits (each, a “U Unit”), at a pr rice of $0.10 per Unit, for gr ross proceeds s of $182,000

0. Each Unit t consisted o of one comm mon share (ea ach, a “Share”) and one-half of one share purchase wa arrant (each w whole warran nt, a “Warran nt”). Each Wa arrant is exercisa s from the date of able into one e Share at a price of $0.15 5 per Share f for a period of two years issuance. The Compan ny has raised d a total of $92 25,000 from t the closing of f the first and d second tranc che of the Financ cing.

The Comp pany paid cash finders fee es of $7,000 a and issued 70 0,000 share pu urchase warra ants (the “Fin

nder’s Warrants”

”) to two fin nders in con nnection with h certain sub bscriptions in n the Financ cing. The Fin nder’s Warrants have the sam me terms as th he Warrants.

All securi ities issued in n connection w with the Fina ancing will be e subject to a a statutory ho old period exp piring four mont ths and one d day after closi ing of the Fina ancing.

About Ni icola Mining

Nicola Mi ining Inc. is a a junior minin ng company l listed on the T TSX Venture Exchange an nd is in the pr rocess of recomm mencing mill l feed proces ssing operatio ons at its 100 0% owned st tate-of-the-art t mill and ta ailings facility, lo ocated near M Merritt, British Columbia. It has alread dy signed fou ur mill profit t share agreem ments with high h grade gold p producers. Th he fully-perm mitted mill ca an process bot th gold and s silver mill fee ed via gravity an nd flotation p processes. The e Company al lso owns 100% of Treasure e Mountain, a a high-grade silver hat is located adjacent to its property, and an active e gravel pit th s milling ope erations.

About Ne ew Craigmon nt

The New Craigmont P Project (the “ “Property”) is s a wholly-ow wned copper r property with an active mine permit (M M-68), located within the e world-class s Highland Valley porph hyry district. It benefits from excellent i infrastructure

e. The Property is at the co orner intersect tion of the Ni icola and Gui ichon batholit ths, of which the e latter is the e precursor t to mineraliza ation at High hland Valley. In Novemb ber of 2015, N Nicola became th he first grou up in decade es to consolid date ownersh hip of the Pr roperty and has been ac ctively conductin ng mineral exp ploration sinc ce.

There are e currently no

• mineral reso ource estimat tes on the Pro operty. Histo orical “non-N NI 43-101” res source

calculations are record ded in interna al memos and d geological r reports for Pl lacer Develop pment. An in nternal memo wr ritten by J.F. Bristow on O October 30, 19 985 to Craigm mont Mines L Ltd. reported d a zone know wn as Body No.

. 3 containing g a historic es stimate of 1,2 290,000 tons (1,170,268 me etric tonnes) of copper gr rading 1.53% cop pper. * This e estimate assumes a 0.7% c copper cut-of ff and a 20-fo oot mining w width between n drill sections 6 6565E and 801 15E. The mat terial in Body y No. 3 conta ains mineraliz zation prima arily in silicat te-rich rocks.

Additionally, J.F. Bristow reported in an internal memo on July 22, 1985 to Craigmont Mines Ltd., a rough calculation of +60,000,000 pounds (1.6 million short tons or 1.45 metric tonnes) of +1.5% copper from an original ore estimate of 27,754,000 short tons (25,178,005 metric tonnes) of copper grading 1.79% copper left behind in the sub-level cave. The material is from the previously mined out No.1 Body and No.2 Body.

On behalf of the Board of Directors

“Peter Espig”

Peter Espig CEO & Director

For additional information contact:

Peter Espig Telephone: (778) 385-1213 Email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.