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NIM.V ·

Nicola Receives Permitting to Commence Rc Drilling of Wastepiles and Has Expanded Embayment Skarn Zone to 400 Metres

Financings Exploration Programs Permits & Approvals

TSX.V: NIM

NEWS RELEASE

NICOLA RECEIVES PERMITTING TO COMMENCE RC DRILLING OF WASTEPILES AND

HAS EXPANDED EMBAYMENT SKARN ZONE TO 400 METRES

VANCOUVER, B.C., January 12, 2018 – Nicola Mining I nc. (TSXV: NIM) has received the

required permitting to commence reverse circular drilling (“RC Drilling”) on the approximate 80 –

90 million tonnes of waste piles surrounding the historic Craigmont Mine. The Company is also

pleased to announce that the 2017 Embayment Zone Ex ploration Program has expanded the

Embayment Skarn Zone to 400 metres in strike length (east to west).

On December 27, 2017 the Company announced that it had completed a non-brokered private

placement of in the form of flow-through financing (“FT Financing”) at $0.20. The FT Financing,

which was significantly oversubscribed, sold an agg regate of 10,262,500 shares with gross

proceeds of $2,052,500. The 18,689,630 warrants th at were exercisable at $0.15 all expired at

the end of December 2017. Use of funds from the FT Financing are described in the December

27, 2017 news release.

On December 21, 2017 the Company announced that the first four holes all successfully

intersected skarn alteration, including previously untested segments of the Embayment Zone.

Post news release the Company completed a fifth hol e, which has intersected the skarn

alteration and has now expanded the skarn zone to over 400 metres in length. The Company

is currently drilling the sixth hole and will assay all the holes and release results upon receipt.

During the assaying of the first six holes the Comp any will focus commencing an RC Drilling

program on the waste piles. The 2018 RC drill prog ram will follow up the successful results

announced on September 26, 2017 with the average gr ade for the top 9 metres in the first 29

holes was 0.24%. Considering that 50% of the cost of producing copper is associated with

mining activity the grade equivalent of the piled m aterial is approximately 0.48%. The purpose

of the RC Program is to test the in-situ Copper gra de of the approximate 80-million tonnes of

waste piles associated with the historic Craigmont Mine, which had a cut-off grade of 0.7% Cu.

Nicola Mining Inc. is a junior mining company listed on the TSX Ventu re 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, B ritish Columbia. It has already signed four mill

profit share agreements with high grade gold produc ers. 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 Treasure Mountain, its high-grade silv er 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: (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 r esponsibility for the adequacy or accuracy of this

release.