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Nicola Mining Commences Gravel Pit Operations, Commences ZTEM Survey and Completes Key Modeling of Historic Drill Holes

Exploration Programs

Nicola Mining Commences Gravel Pit

Operations, Commences ZTEM Survey and

Completes Key Modeling of Historic Drill

Holes

Vancouver, British Columbia--(Newsfile Corp. - June 1, 2022) - Nicola Mining Inc. (

TSXV: NIM

)

(

FSE:

HLI

), (the

"

Company

" or "

Nicola

"

) is pleased to announce that it has recommenced operations at its

gravel pit (

Permit G-15-019

) with its partner Lower Nicola Site Services Ltd. ("

LNSS

") an indirectly

majority-owned company which is a partnership between the Lower Nicola Indian Band Development

Corporation and Infracon Construction Inc.

The gravel pit is located at the Company's

Craigmont Mine

Site

, located approximately 14 kilometers from Merritt, British Columbia ("

BC"

).

Nicola and LNSS have commenced supplying much needed sand and gravel to local communities for

construction and infrastructure repairs.

The gravel pit compliments the recently received Notice of

Departure ("

NoD

") at the New Craigmont Project from the Ministry of Energy, Mines and Low Carbon

Innovation ("

EMLI

").

The Company's M-68 announced in its May 2, 2022 news release that it received

permitting for extraction of up to 3.0 million tonnes ("

Mt

") of inert available rock material (

riprap

)

that may

be used for the infrastructure reconstruction efforts at a production rate of approximately 1500 tonnes per

day.

The Company receives a royalty for all riprap, sand, and gravel transported from its site.

The Company is equally pleased to announce that it has commenced its 998-line kilometer Z-Tipper

Axis Electromagnetic survey ("

ZTEM Survey

") across the entirety of New Craigmont. This is the largest

full-site survey ever conducted on the historic Craigmont Copper Mine site, for which the Company holds

Mine Permit M-68.

ZTEM Surveys can be a very effective tool in finding porphyry systems, especially in

places that have a

secondary volcanic

covering.

To further augment the Company's understanding of Craigmont's copper mineralization, which includes

both porphyry and skarn, the Company is currently generating a robust database and model of over

4100 historic drill holes. To date, over 30% of assay and lithology data have been entered, providing

vectors for mineralization, grade, and structural controls. The database and model provide insight and

will improve the understanding of mineralized zones that are known to remain in-situ, including

Mineralized Zone 3.

As historic mining included underground operations, the Company is also digitizing

the historic underground workings, which can be superimposed with the drilling database and model to

better understand potential residual copper remaining as part of the historic operations.

Peter Espig, Chief Executive Officer, commented, "We continue to work creatively to maximize both

cash flow and exploration opportunities at the Craigmont Site and are very excited about the prospect of

combining current ZTEM survey, modeling and interpretating lithologies from historic drillholes, and

analyzing historic underground mining operations.

In addition, the increased interested in our NI 43-101

for the historic mine terraces and expected receipt of a multi-year exploration permit over the entire

Craigmont Copper Project could provide very exciting near term exploration opportunities."

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.

About Nicola Mining

Nicola Mining Inc. is a junior mining company listed on the TSX Venture and Frankfurt Exchanges 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 10,913 hectares along the southern end of the Guichon Batholith and is adjacent to Teck

Resources Ltd.'s Highland Valley Copper, Canada's largest copper mine. The Company also owns

100% of the Treasure Mountain Property, consisting of 30 mineral tenures covering 513 hectares (ha)

and a mining lease covering 335 ha.

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 release are forward-looking statements, which reflect the expectations of

management regarding the Company. Forward-looking statements consist of statements that are not

purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding

the future, including but not limited to, statements regarding the allocation of revenues and royalties

under the Agreement towards Nicola's site maintenance, including annual reports and reclamation

obligations and that Nicola will continue to work closely with previously engaged consultants and service

providers. Such 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 risks

related to factors beyond the control of the Company. These risks include, but are not limited to, changes

in Nicola's business relationships and plans, changes in the anticipated uses of revenues and royalties

under the Agreement, the failure of Nicola to receive the necessary approvals for the NoD from the EMLI,

as well as other general business, economic, or market related risks beyond the director control of the

Company and which may affect the Company's business and operations. The novel strain of coronavirus,

COVID-19, also continues to pose risks that are currently indescribable and immeasurable. No

assurance can be given that any of the events anticipated by the forward-looking statements will occur

or, if they do occur, what benefits the Company will obtain from them. The Company undertakes no

obligation to update forward-looking information if circumstances or management's estimates or

opinions should change, unless required by law. The reader is cautioned not to place undue reliance on

forward-looking information.

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.

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/126054