Mr. Peter Espig reports

NICOLA MINING ANNOUNCES NON-BROKERED PRIVATE PLACEMENT WITH OCEAN PARTNERS HOLDINGS LIMITED

Nicola Mining Inc. has arranged a non-brokered private placement consisting of 16 million shares at a price of 12.5 cents per share for gross proceeds of $2-million. All securities issued in connection with the offering will be subject to a statutory hold period expiring four months and one day after closing of the offering. Completion of the offering is subject to the approval of the TSX Venture Exchange.

The aggregate gross proceeds from the sale of the offering will be used for general working capital, which may include exploration, repayment of outstanding debentures and share repurchases.

About Nicola Mining Inc.

Nicola Mining is a junior mining company listed on the TSX Venture Exchange and the Frankfurt Stock Exchange that maintains a 100-per-cent-owned mill and tailings facility, located near Merritt, B.C. 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 through gravity and flotation processes.

The company owns 100 per cent of the New Craigmont project, a high-grade copper property, which covers an area of 10,084 hectares along the southern end of the Guichon batholith and is adjacent to Teck Resources Ltd.'s Highland Valley copper mine, Canada's largest copper mine. The company also owns 100 per cent of the Treasure Mountain property, consisting of 29 mineral tenures covering 2,178 hectares and a mining lease covering 335 hectares.

We seek Safe Harbor.