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Nicola Mining to Commence Gold and Silver Production

Corporate Updates

Nicola Mining to Commence Gold and Silver

Production

Vancouver, British Columbia--(Newsfile Corp. - May 21, 2025) -

Nicola Mining Inc.

(TSXV: NIM) (FSE:

HLIA) (OTCQB: HUSIF)

(

the "

Company

" or "

Nicola

") is pleased to announce that has started

receiving gold / silver ore from Talisker Resources Inc. and is currently undergoing pre-production

adjustment.

The modern $33.0 million plus milling and processing facility, which is located near Merritt,

British Columbia, has undergone numerous upgrades in 2H 2024

1

.

Production at the modern facility, which is constructed on free-hold industrial-zone land owned 100% by

the Company, is expected to ramp up and reach full capacity in Q3.

The Company has also commenced

the process of applying for an amendment to its permit, for the purpose of increasing mill throughput.

Nicola's Merritt Mill is the only facility in the Province of British Columbia permitted to accept

third party gold and silver mill feed from throughout the province.

Talisker Resources Ltd.

Nicola and Talisker have recently entered into a new Milling Agreement and the latter has commenced

transportation of high grade gold/silver ore to Nicola's mill site.

Nicola had previously announced that it

and Talisker had signed a Milling Agreement

2

on

July 18, 2024

.

Nicola and Talisker have commenced

working with Ocean Partners UK Limited

3

on the sale of gold and silver concentrate.

Ore from Talisker's Bralorne Mine

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

https://images.newsfilecorp.com/files/4873/252869_b7af7d52346f38ab_001full.jpg

Nicola Mining's Merritt Mill

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

https://images.newsfilecorp.com/files/4873/252869_b7af7d52346f38ab_002full.jpg

Blue Lagoon Resources

Nicola continues to work closely with Blue Lagoon Resources ("

Blue Lagoon

") and has participated in

all tranches of the latter's recent private placement.

In a previous capital round, Blue Lagoon announced

that Nicola had subscribed for

7,142,857 shares

.

The Company will participate in Blue Lagoon's official

opening of the latter's Dome Mountain Mine on July 9

th

, 2025, and is completing final preparations to

accept Dome's high-grade gold / silver ore, thereafter.

Dominion Gold / Silver Bulk Sample

Nicola announced on

March 12, 2025

that it has received the Final Permit ("Final Permit

[1]

") to complete

a bulk sample

[2]

at its Dominion Creek Mineral Project ("Dominion"), a high grade gold and silver

project, of which Nicola owns a 75% economic interest.

Preparation has been initiated to mobilize

equipment and begin mining activities in July of 2025.

The Company will provide separate news releases for each project soon.

In addition to commencing gold and silver production, Nicola is currently preparing to commence copper

exploration at its New Craigmont Copper Project.

To strengthen its geological team the Company has

hired Vicente García as a Senior Geologist.

Mr. García is an experienced exploration geologist with a

strong technical background from having worked on many deposit types in North and South America,

including porphyry copper.

The Company will issue a separate geological news release soon.

Mr. Peter Espig, CEO of Nicola Mining Inc., commented, "Unlike previous milling campaigns we are

excited to realize that Nicola is morphing into a steady and long term producer.

It is rare for junior miners

to reach the production pinnacle and to monetize current precious metal prices with our partners.

We are

also witnessing firsthand augmented efficiencies in British Columbia's permitting of underground mining

operations, which characteristically minimize environmental impact, as well as the strategic significance

of our fully permitted mill.

In addition to production, we have boosted our geological team and are

ramping up activities for what we believe to be an exciting exploration campaign, not only at the New

Craigmont Project, but also our fully permitted silver mine, Treasure Mountain."

Qualified Person

William Whitty, P. Geo., the Company's VP Exploration, is the Qualified Person as defined by National

Instrument 43-101 -

Standards of Disclosure for Mineral Projects

and supervised the preparation of,

and has reviewed and approved, the technical information in this release.

About Nicola Mining

Nicola Mining Inc. is a junior mining company listed on the Exchange and Frankfurt Exchange that

maintains a 100% owned mill and tailings facility, located near Merritt, British Columbia It has signed

Mining and Milling Profit Share Agreements with high grade gold projects. Nicola's fully permitted mill

can process both gold and silver mill feed via gravity and flotation processes.

The Company owns 100% of the New Craigmont Project, a high-grade copper property, which covers an

area of over 10,800 hectares along the southern end of the Guichon Batholith and is adjacent to

Highland Valley Copper, Canada's largest copper mine. The Company also owns 100% of the Treasure

Mountain Property, which includes 30 mineral claims and a mineral lease, spanning an area exceeding

2,200 hectares.

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]

URL:

www.nicolamining.com

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

News Release describing upgrades:

Link

2

News Release:

April 9, 2024

Link

3

Ocean Partners operates in several countries throughout the world and

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/252869