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Nicola Mining Inc. Commences Mill Processing to Become Canada's Newest Gold - Silver Producer[1]

Corporate Updates

Nicola Mining Inc. Commences Mill

Processing to Become Canada's Newest Gold -

Silver Producer[1]

Vancouver, British Columbia--(Newsfile Corp. - July 9, 2021) - Nicola Mining Inc. (

TSXV: NIM

)

(

FSE:

HLI

) (the "

Company

" or "

Nicola

") is pleased to announce that it has

commenced processing of gold

and silver mill feed

at its mill, located near Merritt, British Columbia ("BC"). The Company will produce a

gold and silver concentrate that will be purchased by

Ocean Partners UK Limited

[2]

("

Ocean Partners

"),

a company that provides global trading services to miners, smelters, and refiners.

Crushing of mill feed, which was transported to the site by Blue Lagoon Resources Inc. (

CNSX: BLLG),

commenced on July 2, 2021, after having accumulated a stockpile of approximately 1500 tonnes. The

Company and BLLG recently signed

an amending agreement (the "

Amending Agreement

") to the

Milling and Smelting Profit Share Agreement

dated March 31, 2017 (the "

Original Agreement

"). The

crushed material was stored in the fine ore bin prior to commencing flotation operations on July 8, 2021

(See Diagram 1).

To view an enhanced version of this graphic, please visit:

https://orders.newsfilecorp.com/files/4873/89473_6565de6f749d5919_001full.jpg

To view an enhanced version of this graphic, please visit:

https://orders.newsfilecorp.com/files/4873/89473_6565de6f749d5919_002full.jpg

Diagram 1

: Nicola Mining Commences Production of Gold and Silver Concentrate

The Company has completed approximately $2.0M in upgrades at its approximate $30.0M facility, which

is permitted to process approximately 200 tonnes per day (up to 70,000 tonnes per year). The

Company's wholly owned Craigmont mill was constructed with ample room for expansion and is the only

site in BC permitted to accept high-grade gold and silver mill feed from throughout the province.

In addition to BLLG, the Company announced on

June 8, 2021

that it had proceeded with the Mineral

Purchase Agreement to acquire a 75% economic interest in the Dominion Creek Gold Project, a high-

grade gold project located about 110 kilometers east-southeast of Prince George. The Company looks

forward to providing an update on the 10,000-tonne bulk sample permit application in a subsequent

news release.

In addition to commencing production, the Company would like to confirm its commitment to work with

communities and government to minimize our impact on the environment. To reflect this commitment, we

have changed our logo to capture the balance between mining and processing and respecting the

environment and the traditional territories we operate within. The

orange / copper

colour symbolizes our

focus of discovering essential metals for the "green economy", and the

green

symbolizes our

commitment to the environment and respecting the land.

Frank Hogel, Chairman of Nicola, commented, "Behind the scenes, it has been an incredible amount of

work to commence production. I would like to congratulate the team on the momentous achievement."

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. The fully-

permitted mill can process both 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.

[1]

Under the Milling and Smelting Profit Share Agreement BLLG is to ship mill feed to Nicola's mill site

for processing.

Nicola does not extract the mill feed but produces gold and silver concentrate.

[2]

Ocean Partners operates in a number of countries, including Canada, Chile, China, Cyprus, Mexico,

Mongolia, Netherlands, Peru, Taiwan, Turkey, United Kingdom, and the United States, and retains

agency representation in Argentina, Australia, Bolivia, Brazil, Chile, Ecuador, India, Japan, South Africa,

South Korea.

The Company maintains a strong global network of relationships and contacts in the base

metal mining and smelting sector.

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

https://www.newsfilecorp.com/release/89473