Nicola Mining Provides Operational Update

TSXV: NIM

OTCBB: HUSIF

FSE: HLI

NICOLA MINING PROVIDES OPERATIONAL UPDATE

VANCOUVER, BC, December 22, 2021 – Nicola Mining Inc. ( TSX.V: NIM ) (FSE: HLI ), (the

“Company” or “ Nicola”) is pleased to provide an operational update, including milli ng and

exploration activities.

The Company would like to confirm that its Craigmont mill and t ailings facility (the “ Mill Site”),

which is located near Merritt, British Columbia, has not been a dversely affected by the recent

flooding experienced in southern British Columbia. While the M erritt and Nicola Region have

experienced devastating floods, the Mill Site is elevated above the flooded regions and in a

different watershed than areas experiencing flooding. Nicola has been cooperating with local

authorities and has been in contact with the Merritt Municipali ty and Department of Highways to

provide support to the local community.

The Mill Site has not been adversely affected by recent southern BC flooding

While the Mill Site has not been directly affected by the flood ing, access via Highway 1 and the

Coquihalla Highway has been impacted as both routes have experi enced landslides and

damage. Impaired route access has impacted the transportation of approximately 150 tonnes of

gold and silver concentrate, which the Company will look to tra nsport to a shipping port, now

that the Coquihalla Highway has reopened for commercial transportation1.

The Company received final payment for the first Provisional In voice that was submitted to

Ocean Partners UK Limited 2 (“Ocean Partners ”) on April 30, 2021 . To date, the Company

and Blue Lagoon Resources Inc. (CNSX: BLLG), with whom it has e ntered into a mining and

milling profit share agreement, have received three Provisional Payments 3 and one Final

Payment4 from Ocean Partners. The Company has completed winterization of the mill and is

currently preparing for 2022 operations, which includes milling operations, continued work on

the Transmountain Expansion Project, dust reclamation and explo ration at both Craigmont and

Treasure Mountain.

The Company also announces that it intends to pay all of the in terest owing on the secured

convertible debentures (the “ Debentures”) issued on January 9, 2020, by the issuance of

common shares (each, a “ Share”) of the Company. The Debentures mature on January 9,

1 Source: https://www.castanet.net/news/BC/355071/Coquihalla-reopens-to-commercial-vehicles-only-

Highway-3-restrictions-to-lift-Tuesday

2 Ocean Partners operates in a number of countries, including Ca nada, Chile, China, Cyprus, Mexico,

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

agency representation in Argentin a, 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.

3 Invoice submitted by the Sellers of 90% of the Estimated Price in respect of each shipment of

Concentrate, once such Estimated Price has been calculated in a ccordance with Clause 7 above against

presentation of Provisional Documents

4 Based on final weights and assays from a third party independe nt laboratory according to International

Standards

2023, and bear interest (“Interest”) at a rate of 10% per annum, which Interest is payable under

the terms of the Debentures annually, at the option of the Comp any, in cash or by the issuance

of Shares. The Company intends on paying all of the Interest in Shares to holders of the

Debentures to settle the outstanding interest payment obligatio n for the second year of the term

of the Debentures. Accordingly, the Company intends to issue 38 8,236 Shares at a price of

$0.085 per Share in settlement of Interest owing of $33,000 (the “Debt Settlement”).

The Debt Settlement is subject to TSX Venture Exchange approval . The Shares will be subject

to a statutory hold period expiring on the date that is four mo nths and one day after the closing

of the Debt Settlement.

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 facilit y, located near Merritt, British

Columbia. It has signed Mining and Milling Profit Share Agreeme nts with high grade gold

projects. Nicola’s fully-permitted mill can process both gold a nd silver mill feed via gravity and

flotation processes.

The Company owns 100% of the New Craigmont Project, a high-grad e 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, Canad a’s largest copper mine. The

Company also owns 100% of the Treasure Mountain Property, consi sting of 30 mineral tenures

covering 2513 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]

Neither the TSX Venture Exchange nor its Regulation Se rvices Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts re sponsibility for the adequacy or accuracy of this

release.