Mr. Peter Espig reports

NICOLA MINING ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Nicola Mining Inc. has arranged a non-brokered private placement consisting of up to 7,142,857 units at a price of 28 cents per unit for gross proceeds of up to $2-million. Each unit will consist of one common share of the company and one-half of one transferable share purchase warrant, with each warrant entitling the holder thereof to purchase one additional share of the company at a price of 40 cents per warrant share for a period of three years from the closing of the offering. If, during the exercise period of the warrants, but after the resale restrictions on the shares have expired, the shares trade on the TSX Venture Exchange (or such other exchange on which the shares may be traded at such time) at a closing price of 60 cents or greater per share for a period of 10 consecutive trading days, the company may accelerate the expiry of the warrants by giving notice to the holders thereof (by disseminating a press release advising of the acceleration of the expiry date of the warrants) and, in such case, the warrants will expire on the 30th day after the date of such notice.

The aggregate gross proceeds from the offering are expected to be used for general working capital.

Finder's fees may be payable in connection with the offering in accordance with the rules of the exchange. Insiders may also participate in the offering.

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 exchange. Any participation by insiders in the offering will constitute a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, but is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

About Nicola Mining Inc.

Nicola Mining is a junior mining company listed on the TSX-V 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 10,913 hectares along the southern end of the Guichon batholith and is adjacent to the Highland Valley copper mine, Canada's largest copper mine. The company also owns 100 per cent of the Treasure Mountain property, which includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares.

We seek Safe Harbor.