NIM.V · 2017-01-10 12:00:00

Nicola Mining Ships and Receives Payment FOR 296.352 DRY Metric Tonnes Concentrate Grading 97.1 Grams GOLD and 535.5 Grams Silver PER Tonne

Corporate Updates

TSX.V: NIM

NEWS RELEASE

NICOLA MINING SHIPS AND RECEIVES PAYMENT FOR 296.352 DRY METRIC TONNES

CONCENTRATE GRADING 97.1 GRAMS GOLD and 535.5 GRAMS SILVER PER TONNE

VANCOUVER, B.C., January 10 , 2017 – Nicola Mining Inc. (the “ Company”) is pleased to announce

that it has shipped to MRI Trading Ag, (the “ Buyer”) 296.35 dry metric tonnes of gold and silver

concentrate grading 97.116 grams Au and 535.491 grams Ag per tonne, for an aggregate total of

approximately 28,780.49 grams Au (925.3 troy ounces) and 158,694.1 grams Ag (5102.1 troy ounces).

The source of the mill feed that produced the concentrate is from Gavin Mines Inc. (“Gavin Mines ”).

Terms of the Milling and Profit Share Agreement (the “ GMI Agreement”) were announced in the May

31, 2016 news release.

The Company has received the intitial payment for the concentrate and will receive final payment upon

grade confirmation and final processing by the smelter. The Company has distributed a portion of the

proceeds to Gavin Mines under terms of the GMI Agreement.

The Company also announces that it has sold Thompson Nicola Region District Lot 1608 ( Kamloops

Division of Yale Land District: PID: 005-729-360) to a local rancher for an aggregate amount of $75,000.

The 46 acre lot, which is located on the southwestern section of Nicola’s nearly 900 acre freehold

property, is removed from the Company’s milling operations and was already used by local ranchers.

Peter Espig, Chief Executive Officer commented, “2016 saw the Company achieve numerous

milestones through a total team effort. This year we will continue to focus on environmentally friendly

operations while enhancing communications with the local community. The success of the 2016

Exploration Program (announced in the Se ptember 7, 2016 new release), which included an intersection

of 1.11% copper over 85.92 metres in THU-002, highlights the exploration potential of our wholly -

owned Thule Copper Property.”

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 five mill profit share

agreements with gold properties. The fully-permitted mill is able to process both gold and silver mill feed

via gravity and floatation processes.

The Company also owns 100% of the 10,084 hectare Thule Copper Property (the located at the southern

end of the Guichon Batholith approxima tely 14 km northwest of Merritt), Treasure Mountain, its high

grade silver property, and a gravel pit, which 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: (604) 647-0142

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.