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NIM.V ·

Nicola Mining Announces Debt Settlement

Share Capital & Compensation

TSX.V: NIM

FSE: HLIA

OTCQB: HUSIF

NICOLA MINING ANNOUNCES DEBT SETTLEMENT

VANCOUVER, B.C., December 18, 2024 – Nicola Mining Inc. ( TSX.V: NIM ) (FSE: HLIA ) ( OTCQB:

HUSIF), (the “Company” or “Nicola”) announces that it intends to pa y all of the intere st owing on the

secured convertible debentures (the “ Debentures”) issued on November 21, 2019 by the issuance of

common shares (each, a “ Share”) of the Company. The Debentures mature on November 21, 2025 and

bear interest (“ Interest”) at a rate of 10% per annum, which In terest is payable under the terms of the

Debentures annually, at the option of the Company, in cash or by the issuance of Shares.

The Company intends on paying all of the Interest in Shares to holders of the Debentures to settle the

outstanding interest payment obligation for the fifth year of the term of the Debentures.

Accordingly, the Company intends to issue 1,469,935 Shares at a price of $0.28 per Share in settlement of

Interest owing of $411,583.10 (the “Debt Settlement”).

An Insider of the Company will be issued 1,392,856 Sh ares pursuant to the Debt Settlement, which will

constitute a “related party tr ansaction” within the meaning of Multilateral Instrument 61-101 Protection

of Minority Security Hold ers in Special Transactions (“MI 61-101”). The intended issuance to the insider is

exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section

5.5(b) as the Company’s shares are not listed on a specified market and from the minority shareholder

approval requirements of MI 61-101 by virtue of the exemption contained in sect ion 5.7(a) of MI 61-101

in that the fair market value of the consideration of the Shares to be issued to the related party will not

exceed 25% of the Company’s market capitalization. The Company will close on the payment of the

Interest in Shares in less than 21 days as the payment of Interest is due pursuant to the terms of the

Debentures.

The Debt Settlement is subject to TSX Venture Exch ange approval. The Shares will be subject to a

statutory hold period expiring on the date that is fo ur months and one day after the closing of the Debt

Settlement.

About Nicola Mining

Nicola Mining Inc. is a junior mining company lis ted on the Exchange and Frankfurt Exchange that

maintains a 100% owned mill and tailings facility, located near Merritt, British Columbia It has signed

Mining and Milling Profit Share Agreements with high grade gold projects. Nicola’s fully permitted mill

can process both gold and silver mill feed via gravity and flotation processes.

The Company owns 100% 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% of the Treasure Mountain

Property, which includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200

hectares.

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]

Forward-Looking Information

Certain statements in this press release related to the Debt Settlement and the securities issuable thereunder are

forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical

facts, but rather on current expectations and projections about future events, and are therefore subject to risks and

uncertainties which could cause actual results to differ ma terially from the future resu lts expressed or implied by

the forward-looking statements. These statements generally can be ident ified by the use of forward-looking words

such as “may”, “should”, “will”, “could”, “intend”, “est imate”, “plan”, “anticipate”, “expect”, “believe” or

“continue”, or the negative thereof or similar variations. F orward-looking statements in this news release include

statements regarding the settlement of the Interest, resale restrictions relating to the securities to be issued and

receipt of the approval of the TSX Venture Exchange. Such statements are qualified in their entirety by the inherent

risks and uncertainties surrounding the Company’s ability to complete the Debt Settlement, including the risk that

the Debt Settlement may not be completed as expected or at all, that the TSX Venture Exchange may not approve

the Debt Settlement and such other factors beyond the co ntrol of the Company. Such forward looking statements

should therefore be construed in light of such factors, and the Company is not under any obligation, and expressly

disclaims any intention or obligation, to update or revise any forward looking statements, whether as a result of

new information, future events or otherwise. Neither th e 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.

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.