Nicola Mining Announces Flow-Through Unit Private Placement

NOT T FOR DIST TRIBUTION N TO UNITED STATES S NEWSWIR RE SERVIC CES OR FOR R DISSEM MINATION IN THE UN NITED STA ATES

TSX.V: N NIM

NICO OLA MININ NG ANNOU UNCES FLO OW-THROU UGH UNIT P PRIVATE P PLACEMEN NT

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OUVER, BC, , December 14, 2020 – N Nicola Mini ing Inc. (the e “Company to 4,615,384 units announce a non-brok kered privat te placemen nt consisting g of the issua ance of up t (each, a “Unit”) at a price of f $0.13 per Unit for g gross procee eds of up to $600,000 0 (the “Offerin ng”). Insider rs may partic cipate in the e Offering.

Each Uni it will consist of one com mmon share e of the Com mpany issue ed on a “flow w-through” basis pursuant t to the Income Tax Act (Canada) (each, a “Shar re”) and on ne-half of on ne common s share purchase e warrant (ea ach whole w warrant, a “W Warrant”), w with each Warrant entitl ling the hold der to purchase e one Share (each, a “Warrant Share e”) (on a no on-flow-throu ugh basis) a at a price of $0.17 per Warr rant Share fo or a period o of two years following th he closing of f the Offerin ng.

Finders’ fees may be e payable in connection with the Of ffering in acc cordance wi ith the polici ies of the TSX V Venture Exchange (the “ “Exchange”)

).

All secur rities issued in connecti ion with the e Offering w will be subjec ct to a statu utory hold period expiring four month hs and one d day after clo osing of the Offering. C Completion o of the Offeri ing is subject to the appro oval of the Exchange. A Any particip pation by in nsiders in t the Offering g will constitut te a related d party tran nsaction und der Multila ateral Instru ument 61-10 01 - Protecti ion of Minority Security Hol lders in Special Transactio ons (“MI 61- -101”) but is expected to

• be exempt from

the forma al valuation and minorit ty sharehold der approval l requiremen nts of MI 61- -101.

The aggr regate gross proceeds fr rom the sale e of the Offe ering are exp pected to be e used for fu urther explorati ion on the C Company’s w wholly-owned New Cra aigmont Pro operty, whic ch covers an n area of 10,084 4 hectares a along the so outhern end of the Guic chon Bathol lith and is adjacent to Teck Resource es Ltd.’s Hig ghland Valley y Copper, C Canada’s larg gest copper m mine.

None of the securitie es sold in co onnection wi ith the Offer ring will be registered u under the U United States Se ecurities Act of 1933, as amended, a and no such securities m may be offer red or sold i in the United States absent registration n or an applicable exemp ption from th he registration requirem ments. This new ws release sh hall not cons stitute an of ffer to sell o or the solicit tation of an offer to buy y nor olicitation or sale shall ther re be any sal le of the secu urities in any y jurisdiction in which s such offer, so would be e unlawful.

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.

Cautionary Statement Regarding Forward-Looking Statements

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the expectations of management regarding the proposed Offering, the expectations of management regarding the use of proceeds of the Offering, closing conditions for the Offering, the expiry of hold periods for securities distributed pursuant to the Offering, and Exchange approval of the proposed Offering. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including that: the Company may not complete the Offering on terms favorable to the Company or at all; the Exchange may not approve the Offering; the proceeds of the Offering may not be used as stated in this news release; the funds raised from the sale of the Units may not be renounced in favour of the Shareholders; the Company may be unable to satisfy all of the conditions to the Closing; and those additional risks set out in the Company’s public documents filed on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.