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Nicola Mining Inc. Provides Exploration Update

Exploration Programs

Nicola Mining Inc. Provides Exploration

Update

Vancouver, British Columbia--(Newsfile Corp. - August 27, 2021) - Nicola Mining Inc. (

TSXV: NIM

)

(

FSE: HLI

), (the "

Company

" or "

Nicola

") is pleased to provide an exploration update for its 2021

Exploration Phase I Drill Program ("

Phase I Program

") on its wholly owned New Craigmont property.

The focus of Phase I was to test targets defined by magnetic anomalies located lateral and adjacent to

the historic Craigmont Copper Mine. Results from Phase I drilling have recently been received from

Actlabs and are reported herein.

2021 Phase I Exploration Program

The focus of the Phase I Program was to drill test two magnetic anomalies. Magnetic vector inversion

modelling suggested a magnetic anomaly adjacent to the western margin of the Craigmont pit ("

Target

1

"). A second target included a surface outcrop containing copper and iron mineralization with a

coincident magnetic anomaly extending to depth on the northeast margin of the historic Craigmont pit

("

Target 2

"). (

May 12, 2021, news release

)

The Phase 1 Program consisted of five diamond drill holes for a total of 1459.65 meters. The first three

holes (CC-21-76, CC-21-77, and CC-21-78) were drilled at Target 1 and the final two holes (CC-21-79,

and CC-21-80) were drilled at Target 2. Holes CC-21-76 and CC-21-77 were drilled into the large

magnetic anomaly west of the pit, which intersected the Guichon Creek Border Phase diorite and

contained abundant locally disseminated magnetite with disseminated pyrite and locally intense epidote

and chlorite alteration. The third hole (CC-21-78) was drilled to the south, outside and along, the

periphery of the magnetic anomaly where it intersected Nicola Group sediments that contained

mineralized skarn intervals containing massive chalcopyrite, magnetite, and pyrite mineralization within

strongly altered calcareous sediments. Holes CC-21-79, and CC-21-80 were drilled at Target 2 and

intersected strongly chlorite altered diorite on the northeast pit margin that contained massive magnetite

hosted in fractures and present with clots and disseminated chalcopyrite.

2021 Phase II Exploration Program

The Company is currently awaiting approval from EMLI for its Multi-Year Area Based (

MYAB

) permit

submitted earlier this year, which will allow the Company to explore several mineral showings and

prospects to depth. In the meantime, a core relogging program is underway in conjunction with alteration

surface outcrop mapping and sampling.

2021 Phase I Drilling Highlights Include

CC-21-78 intersected

11.5m grading 2.19% Cu

within

71.5 m grading 0.38% Cu

demonstrating the mineralized potential in a largely untested area between the Craigmont pit and

previous intercepts (DDH-THU-002: 85.6m at 1.11% Cu and NC-2018-03: 100.6m grading 1.33%

Cu) approximately 800 m to the west of historic mining operations.

CC-21-79 intersected

71.35 m grading 0.29% Cu

within

130.35m grading 0.21% Cu

, whereby

showing the mineralized potential not recovered during historic mining operations.

The complete list of composited drill hole results as well as the drill hole data including hole location,

elevation, depth, dip, and azimuth are provided in Table 1 and Table 2, respectively.

Table 1: Results, 2021 Phase I drilling in Press Release August 19, 2021

Hole

Zone

From

(m)

To

(m)

Interval (m)

Cu %

CC-21-78

Central Craigmont

354

425.5

71.5

0.38

Inc.

414

425.5

11.5

2.19

CC-21-79

Central Craigmont

31.5

161.85

130.35

0.21

Inc.

90.5

161.85

71.35

0.29

All assay values are half cut and intervals reflect drilled intercept lengths

HQ and NQ2 diameter core samples were sawn in half and typically sampled at standard intervals of 1.5m

True widths have not been determined as the mineralization remains open laterally and at depth. Further drilling is required to determine the

mineralized body orientation and true widths.

Table 2: Drill data for holes in Press Release August 19, 2021

Hole ID

Easting

Northing

Elevation

Azimuth

Dip

Depth (m)

CC-21-76

647026

5563970

1404

0

-65

384.05

CC-21-77

647185

5564186

1422

180

-65

371.83

CC-21-78

647229

5563965

1401

180

-65

510.54

CC-21-79

648341

5563946

1164

205

-50

168.85

CC-21-80

648341

5563946

1164

214

-50

24.38

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.

QA/QC

Drill core samples were prepared and assayed at Actlabs' Geochemical Laboratory in Kamloops, BC.

Analytical accuracy and precision are monitored by the submission of blanks, certified standards, and

duplicate samples inserted at regular intervals into the sampling stream by Nicola Mining personnel.

Actlabs quality systems complies with the requirements for the International Standards ISO/IEC 17025.

Actlabs is independent of the Company.

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 is comprised

of four key assets:

1

.

A $30.0 million plus modern mill facility that is held freehold and is the only site permitted to

process material province wide.

2

.

100% ownership of the historic Craigmont Copper Mine located in southern British Columbia.

3

.

100% ownership of Treasure Mountain, a high-grade silver mine located in southern British

Columbia.

4

.

75% economic interest in the high grade Dominion Creek Project gold project.

In depth explanations can be seen on the Company's Corporate Presentation.

https://nicolamining.com/investors/corporate-presentation/

About the New Craigmont Property

In November of 2015, Nicola became the first group in decades to consolidate ownership of the New

Craigmont Project (the "Property") and has been actively conducting mineral exploration since. The

Property is a wholly-owned copper property with an active mine permit (M-68), located 33 km south of

the world-class Highland Valley porphyry district. The property is located adjacent to the southern end of

the Guichon Creek Batholith, which hosts the Highland Valley copper deposits.

There are currently no mineral resource estimates on the Property. Historical "non-NI 43-101" resource

calculations are recorded in internal memos and geological reports for Placer Development Ltd.

For further details on the Property, see the technical report entitled "Technical Report on the Thule

Copper- Iron Property, Southern British Columbia, Canada", filed on May 8, 2013, on Sedar at

www.sedar.com

.

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]

Figure 1- Phase I diamond drillhole locations

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

https://orders.newsfilecorp.com/files/4873/94593_1ba3380584962ae0_001full.jpg

Figure 2- Abundant clots of chalcopyrite within massive pyrite replacing calcareous sediments

at 422.45m within CC-21-78 (NQ diamond drill core)

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

https://orders.newsfilecorp.com/files/4873/94593_1ba3380584962ae0_002full.jpg

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.

This press release contains "forward-looking statements" within the meaning of applicable Canadian

securities legislation. Forward-looking statements include, but are not limited to, statements regarding

the impact of the ongoing drill program and results on the Company, the possible economics of the

project and the Company's understanding of the project; the development potential and timetable of the

project; the estimation of mineral resources; realization of mineral resource estimates. Generally,

forward-looking statements can be identified by the use of forward-looking terminology such as "plans",

"expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends",

"continue", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases

or statements that certain actions, events or results "may", "could", "would", "will", "might" or "will be

taken", "occur" or "be achieved". Forward-looking statements are made based upon certain

assumptions and other important facts that, if untrue, could cause the actual results, performances, or

achievements of Nicola to be materially different from future results, performances or achievements

expressed or implied by such statements. Such statements and information are based on numerous

assumptions regarding present and future business strategies and the environment in which Nicola will

operate in the future. Certain important factors that could cause actual results, performances, or

achievements to differ materially from those in the forward-looking statements include, amongst others,

currency fluctuations, the global economic climate, dilution, share price volatility and competition.

Forward-looking statements are subject to known and unknown risks, uncertainties and other important

factors that may cause the actual results, level of activity, performance or achievements of Nicola to be

materially different from those expressed or implied by such forward-looking statements, including but

not limited to: there being no assurance that the exploration program will result in expanded mineral

resources; risks and uncertainties inherent to mineral resource estimates.

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

https://www.newsfilecorp.com/release/94593