Mr. Peter Espig reports

NICOLA MINING TO COMMENCE GOLD AND SILVER PRODUCTION

Nicola Mining Inc. has started receiving gold/silver ore from Talisker Resources Inc. and is currently undergoing preproduction adjustment. The modern $33.0-million plus milling and processing facility, which is located near Merritt, B.C., has undergone numerous upgrades in H2 2024.

Production at the modern facility, which is constructed on freehold industrial-zone land owned 100 per cent 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 on July 18, 2024. Nicola and Talisker have commenced working with Ocean Partners U.K. Ltd. on the sale of gold and silver concentrate.

Blue Lagoon Resources

Nicola continues to work closely with Blue Lagoon Resources 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, 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 to complete a bulk sample at its Dominion Creek mineral project, a high-grade gold and silver project, of which Nicola owns a 75-per-cent 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 Garcia as a senior geologist. Mr. Garcia 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.

Peter Espig, chief executive officer of Nicola Mining, 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, PGeo, the company's vice-president of 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 Inc.

Nicola Mining is a junior mining company listed on the exchange and Frankfurt 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 via 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 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 per cent of the Treasure Mountain property, which includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares.