Nicola Mining Commences Exploration Drilling at Its Flagship New Craigmont Copper Project

Executive Summary of Recent Activity

• Latest Event: On April 28, 2026, Nicola Mining announced the commencement of its 2026 Exploration Diamond Drilling Program at the New Craigmont Copper Project.
• Target Focus: The program targets the "Jotun" resistivity anomaly identified via a previous ZTEM survey, located north of the historical Craigmont open pit.
• Budget & Scope: The exploration budget is estimated at $1.5 million USD, covering diamond drilling, soil sampling, and geophysical surveys (Mobile MT).
• Timeline: Drilling is expected to conclude in early June 2026, followed by a program at the Treasure Mountain silver project.
• Contractor: Dorado Drilling Ltd. has been engaged for the work.

Historical Progression of Projects

• Financing Foundation (April 2026): The company recently closed a $6 million USD public offering and a $900,000 greenshoe exercise (Total ~$6.9M USD), providing capital for mill expansion and exploration. This directly funds the current drilling program.
• Operational Cash Flow: Prior to this, the company secured revenue streams through partnerships with Blue Lagoon Resources (Dome Mountain) and Talisker Resources, generating cash flow via milling services ($1M+ payments received).
• Exploration Continuity: This announcement follows a February 2026 update on New Craigmont drilling results which supported a porphyry system hypothesis. The current program is the logical next step to test deeper targets (Jotun) identified in previous geophysical work.

Evaluation of News Significance

• Expected Nature: The commencement of drilling was anticipated following the $1.5 million budget announcement and the April 2026 financing close. It represents execution rather than a new strategic pivot or discovery.
• Market Reaction Context: The stock has declined from its February high ($1.30) to current levels ($0.79). While drilling is positive for exploration companies, without assay results (which will take months), the immediate material impact on valuation is limited.
• Capital Deployment: The news confirms that management is deploying the recently raised capital into value-creation activities rather than holding cash or paying down debt unnecessarily. This supports operational confidence but does not alter the fundamental risk profile of an early-stage copper project.

Comparison to Expectations

• In Line with Guidance: The program aligns with the company's stated strategy to transition from exploration to production while maintaining a milling hub role.
• No Surprises: There are no unexpected delays, cost overruns, or changes in target priority reported in this release compared to previous updates.

Core Business Model

• Primary Revenue: Third-party milling services at the Merritt Mill (BC), processing gold/silver concentrate for partners like Blue Lagoon and Talisker.
• Flagship Project: New Craigmont Copper Project near Merritt, BC. This is a historic high-grade copper deposit adjacent to Teck Resources' Highland Valley Copper mine.
• Secondary Assets: Treasure Mountain Silver Mine (permitted but in care-and-maintenance), Dominion Creek Gold Property (bulk sample stage).

Development Status

• Merritt Mill: Fully permitted and operational, currently ramping up capacity with new flotation cells and automation upgrades.
• New Craigmont: Early-stage exploration phase. Recent drilling supports a porphyry system hypothesis but no resource estimate has been updated recently to confirm economic viability at scale.
• Treasure Mountain: Permitted mine (permit M-239) extended through 2032, awaiting exploration results to justify reopening.