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NIM.V ·

Nicola Expands Embayment Skarn Zone to 250 Meters. Skarn Alteration Remains Open at Depth and to the WEST

Drill Results

TSX.V: NIM

NEWS RELEASE

NICOLA EXPANDS EMBAYMENT SKARN ZONE TO 250 METERS. SKARN ALTERATION

REMAINS OPEN AT DEPTH AND TO THE WEST

VANCOUVER, B.C., December 21, 2017 – Nicola Mining Inc. ( TSXV: NIM) is pleased to

provide an update on its 2017 Exploration Program focused on copper exploration at its wholly -

owned New Craigmont Property . The first four holes all successfully intersected skarn

alteration, including previously untested segments of the Embayment Zone. The skarn

alteration, consisting of a mineral assemblage o f garnet-magnetite-e pidote-chlorite, is

associated with the Craigmont Copper deposit, which is located along strike to the east. As a

result, the strike length of the Embayment zone has increased by 150 metres, bringing the total

strike length of the zone to over 250 metres and it remains open to the west and at depth.

Skarn alteration i ntersected over 200 meter s in holes NC-2017-01 and NC -2017-03 with an

estimated true-thickness of 1 53.0 meters, and over 120 meters in NC-2017- 04 with an

estimated true thickness of 78.0 metres. Hole NC -2017-02 successfully defined the eastern

boundary of the zone, where it terminates against the post-mineral Embayment Fault.

• Embayment zone skarn alteration is open at depth and to the west.

Diamond drilling in 2017 was designed to test for continuity of the Embayment Zone at depth

and along the west-striking zone of skarn-type alteration and copper mineralization encountered

in historical drill holes and more recently, in DDH -THU-002. These first holes met this objective

and will aid the geological team in future program planning.

• Ongoing drilling continues to expand the Embayment Skarn zone westward. The

Company will release assays once analysis of all samples has been completed.

• Craigmont Mines Limited put significant importance on the Embayment Zone and

developed an underground portal to within 150 metres of the Embayment Zone.

Hole NC-2017-01 tested the Embayment Zone between DDH -THU-002 and S -100 and

intersected 212.51 metres of copper mineralization associated with skarn from 253.05 to 465.56

metres. This mineralized interval is interpreted to have a true thickness of 163 metres. Hole NC-

2017-02 was designed to define mineralization extending east from DDH -THU-002, whereas

holes NC-2017-03, and NC -2017-04 were drilled approximately 90 metres west of DDH-THU-

002 and targeted a previously untested portion of the Embayment Zone. H ole NC-2017-03

intersected approximately 240.0 metres of skarn alteration from 347.90 to 587.35 metres and

hole NC -2017-04 intersected approximately 120.0 metres of skarn alteration from 390.79 to

512.57 metres. These intersections both correlate well with skarn alteration intersected in holes

THU-002 and NC-2017-01. The current program continues to extend the skarn zone westward.

Figure 1:New and Historic Embayment Zone drill holes. Drilling in 2017 tested the depth potential and expanded the

target to the west.

The Embayment Zone is a histori c skarn target that was identified by Craigmont Mines Limited

through several surface and underground drill holes, the most notable being S -100 drilled in

1978, which had a 149 metre interval grading 0.47% copper beginning at 271.88 m etres

downhole (invalidated historical results). In 2016 the Company drill tested the target area with

hole DDH-THU-002 and intersected skarn type mineralization grading 1.11% Cu over 86 meters

(331.1- 417.0 metres).

Peter Espig, Chief Executive Officer of the Company, commented, “ The results of diamond

drilling in 2017 are extremely significant as it opens up the potential over the whole New

Craigmont property for continued significant copper mineralization. We have several key zones

that combine to make a very exciting project.”

Quality Control

The Company implemented a quality control program for this program to ensure best practices

are utilized for sample collection and analysis of diamond drill core samples. Lithology,

structure, alteration and mineralization was logged by the Company’s geologic team and sample

intervals ranging from 1.0 m etres to 2.0 m etres in length were selected based on geology .

Quality control measures include insertion of standards , blanks, and duplicate pairs into the

sample stream at a frequency of one duplicate pair, one standard and one blank for every group

of 30 samples submitted.

Activation Laboratory (ISO 17025 Certified) in Kamloops, British Columbia conducted sample

analysis using 38 element Aqua Regia digest-ICP finish (IE3) and fire assay gold (IA2)

packages. Samples returning assay values greater than 10,000 ppm copper were re-analysed

using over-limit mass spectrometry methods (8-AR ICP -MS). Certified reference standards and

rock blanks were placed in the sample stream with a ratio of approximately one sample out of

10.

Qualified Person

Kevin Wells, P.Geo, a consulting geologist to the Company is the independent qualified person

as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects for the

technical disclosure contained in this news release. The scientific and technical content of this

press release was reviewed by Mr. Chris LeClair, G.I.T., an employee of the Company and

verified by Mr. Kevin Wells, P.Geo.

Nicola Mining Inc. is a ju nior mining company listed on the TSX Venture Exchange, and is in

the process of recommencing mill feed processing operations at its 100% owned state-of-the-art

mill and tailings facility, located near Merritt, British Columbia. It has already signed four mill

profit share agreements with high grade gold producers. The fully -permitted mill is able to

process both gold and silver mill feed via gravity and floatation processes. The Company also

owns 100% of Treasure Mountain, its high-grade silver property, and a gravel pit, which is

located adjacent to its milling operations.

On behalf of the Board of Directors

“Peter Espig”

Peter Espig

CEO & Director

For additional information

Contact: Peter Espig

Phone: (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.