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NIM.V ·

Nicola Mining Announces Further Increase IN Private Placement

Financings

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR

DISSEMINATION IN THE UNITED STATES

TSX.V: NIM

NICOLA MINING ANNOUNCES FURTHER INCREASE IN PRIVATE PLACEMENT

VANCOUVER, B.C., August 31, 2020 – Nicola Mining In c. ( TSX.V: NIM ) (FSE: HLI ), (the

“Company” or “Nicola”) announces that further to it s news release dated August 24, 2020, it is

increasing the size of its private placement financ ing (the “ Offering ”). The Company previously

disclosed in its August 24, 2020 news release that it would issue up to up to 5,000,000 (each, a

“Unit ”) at a price of $0.13 per Unit for gross proceeds of up to $650,000. The Company today

announces that it has further increased the number of Units to be issued, such that it will issue

up to 5,769,230 Units for gross proceeds of up to $ 750,000. The terms of the Units remain as

announced on August 24, 2020.

No finders’ fees will be payable in connection with the Offering.

All securities issued in connection with the Offeri ng will be subject to a statutory hold period

expiring four months and one day after closing of t he Offering. Completion of the Offering is

subject to the approval of the TSX Venture Exchange.

The aggregate gross proceeds from the sale of the O ffering will be used for general working

capital.

None of the securities sold in connection with the Offering will be registered under the United

States Securities Act of 1933, as amended, and no such securities may be offered or sold in the

United States absent registration or an applicable exemption from the registration requirements.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor

shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale

would be unlawful.

About Nicola Mining

Nicola Mining Inc. is a junior mining company liste d on the TSX Venture and Frankfurt

Exchanges that maintains a 100% owned mill and tail ings facility, located near Merritt, British

Columbia. It has already signed four mill profit sh are agreements with high grade gold

producers. The fully-permitted mill can process bot h gold and silver mill feed via gravity and

flotation processes. The Company also owns 100% of the New Craigmont Project, a high-grade

copper property, and an active gravel pit that 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.

Cautionary Statement Regarding Forward-Looking Stat ements

This news release includes certain “forward-looking statements” under applicable Canadian securities

legislation that are not historical facts. Forward- looking statements involve risks, uncertainties, an d other

factors that could cause actual results, performanc e, prospects, and opportunities to differ materiall y 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 o f management regarding the use of proceeds of the

Offering, closing conditions for the Offering, the expiry of hold periods for securities distributed p ursuant

to the Offering, and Exchange approval of the propo sed Offering. Although the Company believes that th e

expectations reflected in the forward-looking infor mation are reasonable, there can be no assurance th at

such expectations will prove to be correct. Such fo rward-looking statements are subject to risks and

uncertainties that may cause actual results, perfor mance or developments to differ materially from tho se

contained in the statements including that: the Com pany may not complete the Offering on terms

favorable to the Company or at all; the Exchange ma y not approve the Offering; the proceeds of the

Offering may not be used as stated in this news rel ease; the Company may be unable to satisfy all of t he

conditions to the Closing; and those additional ris ks set out in the Company’s public documents filed on

SEDAR at www.sedar.com. Although the Company believ es that the assumptions and factors used in

preparing the forward-looking statements are reason able, 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 Compa ny

disclaims any intention or obligation to update or revise any forward-looking statement, whether as a

result of new information, future events, or otherwise.