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Nicola Mining Inc. Intersects Upper Zone Copper Mineralization

Drill Results

Nicola Mining Inc. Intersects Upper Zone Copper

Mineralization

Vancouver, British Columbia--(Newsfile Corp. - August 19, 2019) - Nicola Mining Inc. (TSXV: NIM) is pleased to provide assay

results from its third drill hole, CC-19-73, (Figure 1) from its ongoing 2019 Exploration Program ("2019 Program") at the

Company's wholly-owned New Craigmont Project, located in British Columbia's Thompson-Nicola Region. The purpose of the

first three drill holes was to confirm and intersect the unexploited, and incompletely delineated No. 3 Ore Body hole

1

(Figure 1),

which the Company will refer to as No. 3 Mineralized Body from hereon. The No. 3 Mineralized Body is located adjacent to the

2400 level of the historic Craigmont Mine.

Although CC-19-73's intercept of No. 3 Mineralized Body appears shorter and less mineralized than the previous two holes of

the 2019 Program, it appears to be of the greatest significance. The hole intercepted 84 meters grading Cu 0.34% (CuEq

0.46%) of the recently discovered and previously unknown "Upper Zone" mineralization encountered in the preceding two drill

holes

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. This is a 50-meter westward step-out which demonstrates the lateral continuity of the Upper Zone encountered in the first

two holes.

Selected Drill Hole Highlights include:

Hole ID (UTM Zone 10 Easting, Northing, Azimuth, Dip)

Interval width (from - to)

Cu (%)

Cu + CuEq.

(%) †

Zone

CC-19-73

(647733, 5563429, 356°, -64.0°)

Including

84.00m*

(387.00 - 471.00 m)

0.34

0.46

Upper Zone

13.00m

(395.50 - 408.50 m)

0.65

0.75

12.80m*

(412.50 - 425.50 m)

0.53

0.64

CC-19-73

14.00 m

(642.5.00 - 656.50 m)

0.37

0.45

No. 3 Mineralized Body

† Cu equivalent values were calculated using Fe and assays and magnetite ratios.

3

* 20cm sample selected for Ar-Ar dating of potassium feldspar associated with chalcopyrite.

Figure 1: Craigmont Central 2019 drill target, collar locations and cross-section line (A-A').

To view an enhanced version of Figure 1, please visit:

https://orders.newsfilecorp.com/files/4873/47016_04316bb6148919bf_002full.jpg

Figure 2: Cross section 647660E along line A-A' (Figure 1) looking Eastward.

To view an enhanced version of Figure 2, please visit:

https://orders.newsfilecorp.com/files/4873/47016_04316bb6148919bf_003full.jpg

The mineralized Upper Zone, which is south of the underground workings, is characterized by strong k-spar-chlorite-carbonate

alteration. The chalcopyrite has a clear association with k-spar alteration (Figure 3).

Figure 3: Sample of "Upper Zone" showing chalcopyrite associated with potassium-feldspar.

To view an enhanced version of Figure 3, please visit:

https://orders.newsfilecorp.com/files/4873/47016_04316bb6148919bf_004full.jpg

Nicola Mining Inc. is actively engaged in evaluating Craigmont's copper potential. This drilling successfully identified one of the

significant historic resources, demonstrating that the No. 3 Mineralized Body remains an unexploited mineralized zone. Historic

resource calculations of the No. 3 Mineralized Body calculated a probable reserve of 1,290,000 tonnes grading 1.53% copper

4

.

The Company notes that these historic calculations predate NI-43 101 compliance. These calculations were conducted by the

Craigmont Mines Ltd., at the time of mining for internal mining estimates. Nicola Mining recognizes that at this stage these

calculations are not a NI-43 101 compliant resource. A significance observation is the copper mineralization's association with

potassic alteration, indicative of relatively high temperature fluids permeating further south of the Guichon Creek Batholith-Nicola

Group contact than originally thought.

Peter Espig, the Company's CEO, commented, "Hole CC-19-03 has truly provided some exciting results.

Though we didn't see

the 1.0% plus No. 3 Mineralized Body intercepts, as announced in the July 24, 2019 release, we saw a significant intercept

above the 2400 level and south of the pit that appears to be unexplored. The type of mineralization of the Upper Zone is also

intriguing as it seems to be less characteristic of the historic Craigmont skarn orebody.

We were able to see both skarn and

porphyry style of mineralization that certainly warrants follow up."

The Company is also working on developing a NI 43-101 resource on the historic waste mine terraces surrounding the

Craigmont open pit which are interpreted to contain approximately 80-90 million tonne of historic mine waste.

Technical Information

Quality Assurance and Quality Control of Nicola's drilling programs are under the control of Nicola's Geological staff and are

consistent with industry best practices and NI43-101 disclosure standards. All core is logged, sampled, and prepared at Nicola's

Craigmont site. Core is halved, with one half of the core retained as a physical record. The company regularly inserts reference

standards, blanks and duplicate samples for QAQC purposes. Samples are transported by Nicola employees following a

defined chain of custody, to Actlabs in Kamloops, BC. Samples are analyzed using 4-acid "near total" digestion/ICP-OES.

Samples with copper content exceeding the standard detection limits were analyzed by Aqua Regia/ICP-OES. Samples

suspected of containing gold are analyzed by Fire Assay/AA.

Nicola Mining Inc.

is a junior 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 can 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 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 NI 43-101 rules, the term "ore body" is defined as mineralized deposit that has completed a mine plan or economic

feasibility study.

Because Nicola has not completed a NI 43-101 for the mineralized zone, it will be referred to as the No. 3

Mineralized Body.

2

News Release (July 24, 2019):

Nicola Mining Inc. Confirms Ore Body 3 Directly Adjacent To Portal 2400

3

News Release (Feb 19, 2019):

Nicola Mining Announces Test Results From Magnetite Recovery Which Results In An

Increase In Copper Equivalent Grades Of Up To 34%

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Bristow, J.F. (Nov. 19, 1985)

Internal memo: Further Exploration Potential at Craigmont Mines Limited

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

https://www.newsfilecorp.com/release/47016