Nicola Mining Announces Completion of Flow Through Financing and Grant of Stock Options

TSX.V: N NIM

NICO OLA MINING ANNOUN NCES COM MPLETION O OF FLOW T THROUGH FINANCIN NG AN ND GRANT OF STOCK K OPTIONS

VANCO OUVER, B.C

C. December 27, 2017 – Nicola Min ning Inc. (the e “Company”) is pleased to announce that it has completed i its non-brok kered private e placement t (the “Finan ncing”) as fu urther described d in its news releases of f December 8, 2017 and December 1 15, 2017. In n connection with the closing of the F Financing, th he Compan ny sold an a aggregate o of 10,262,500 0 shares (ea ach, a “Share”)

) at a price o of $0.20 per S Share for gr ross proceed ds of $2,052,5 500. The Sh hares were is ssued on a “flow w-through” basis pursu uant to the In ncome Tax Ac ct (Canada).

The Com mpany paid cash finder’s fees of $1 135,800 to se even finders s in connect tion with ce ertain subscript tions in the F Financing.

Insiders of the Com mpany were issued an aggregate o of 187,500 S Shares unde er the Finan ncing, which co onstituted a “related par rty transacti ion” within the meanin ng of Multila ateral Instru ument 61-101 Protection of M Minority Secu urity Holders s in Special T Transactions (“MI 61-101 1”). The issu uance to each insider is e exempt from m the valua ation requir rement of M MI 61-101 b by virtue o of the exemptio on contained d in section n 5.5(b) as th he Company ny’s shares a are not liste ed on a spec cified market a and from the e minority sh hareholder a approval req quirements o of MI 61-101 1 by virtue o of the exemptio on contained in section n 5.7(a) of MI 61-101 in that the e fair mark ket value o of the of the Company’s considera ation of the shares issue ed to the related parties s did not ex xceed 25% o market capitalization n.

The secu urities issued d under the e Financing are subject to a statuto ory hold period expirin ng on April 23, 2019.

The aggr regate gross proceeds fro om the sale of the Finan ncing will be e used for further explor ration on the fo ollowing key y targets:

• Continued ex C xtension of th he Embaym ment Zone ska arn minerali ization:
  • South hern extensio on of the Em mbayment Zo one
• Promontory H P Hill
• So outh Embay yment Zone
• Reverse circ R cular drillin ng on the approxima ate 80-90 m million ton nne waste piles urrounding the historic pit, which h su had a cut off grade of 0.7 7% Cu.

The Company’s wholly-owned New Craigmont Property, which covers an area of 10,084 hectares along the southern end of the Guichon Batholith, is adjacent to Teck Resources Ltd.’s Highland Valley Copper, Canada’s largest copper mine.

The Company also announces that it has granted an aggregate of 2,650,000 stock options to directors, officers and consultants of the Company for the purchase of up to 2,650,000 common shares of the company pursuant to its Stock Option Plan. Each option is exercisable for a period of 5 years at a price of $0.165 per common share.

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.