Nicola Mining Provides Update on Dominion Gold Project

The most recent news release, dated 2025-11-04, provides an update on Nicola Mining's Dominion Gold Project. The company announced the completion of its 2025 work program at Dominion, which included mine development in preparation for a 10,000-tonne bulk sample. A notable aspect of the update is the discovery of three new veins: the Mid-West Vein (1m wide over 3m), the West Vein (3m wide over 6m), and the 16 East Vein (1.5m wide over 40m). CEO Peter Espig commented that the project appears "larger than initially anticipated." The bulk sample program, which had previously been stated to commence extraction in July 2025, is now planned to "recommence" in July 2026, with five open faces accessible for approximately 6 metres of strike length extraction.

Prior news indicates: - 2025-10-27 (Nasdaq & Shelf Prospectus): Application to uplist to Nasdaq Capital Market and filing of a preliminary short form base shelf prospectus for up to $10M CAD. - 2025-10-27 (Peter Espig Board Appt): Nicola CEO Peter Espig appointed to the board of Foremost Clean Energy Ltd. - 2025-10-15 (Treasure Mountain): Announced a plan for a 2026 drilling exploration program at the Treasure Mountain Silver Project, following receipt of a Multiyear Area-Based (MYAB) exploration permit and a 10-year mine lease extension. - 2025-10-06 (Atrium Research): Engagement of Atrium Research Corp. for company-sponsored research services ($2,900/month for 24 months). - 2025-09-29 (Gravel Pit/Cement Plant): Completion of a long-term expansion of its gravel pit and the construction of a cement ready-mix plant, along with securing contracts to supply Teck Resources' Highland Valley Copper and the Ministry of Transportation. - 2025-09-29 (Blue Lagoon Agreement): Extension of the milling and mining partnership agreement with Blue Lagoon Resources for 10 years, securing long-term processing for Blue Lagoon's Dome Mountain project. Nicola previously provided a $2M line of credit to Blue Lagoon. - 2025-09-22 (Concept Capital): Concept Capital Management converted $3.9M in principal and $312K in interest from convertible debentures into 23,326,362 common shares, increasing their ownership from 10.93% to 20.96% and making them a control block holder. The principal conversion price was $0.17 per share. - 2025-09-17 (Craigmont Leases): Received six five-year mining lease extensions for the New Craigmont Copper Project. - 2025-09-09 (Talisker Shipping): Began shipping gold concentrate from Talisker Resources' ore, resulting in $2.3M USD gross proceeds from 707 ounces of gold sold in August. - 2025-08-21 (Warrant Exercises): Received $807,791 from the exercise of 2,019,047 warrants at $0.40, following an accelerated expiry notice. - 2025-07-30 (Dominion Bulk Sample): Announced commencement of the 10,000-tonne bulk sample at Dominion, with infrastructure installed and road work commenced. - 2025-07-21 (Warrant Acceleration): Accelerated the expiry of warrants from a February 25, 2025 financing to August 20, 2025, due to the share price exceeding $0.60 for 10 consecutive trading days. - 2025-07-17 (Private Placement): Closed a non-brokered private placement of 4.35 million flow-through units at $0.50 per unit, raising $2.175M for exploration at New Craigmont. Each unit included half a warrant at $0.65 for 2 years. - 2025-07-09 (Merritt Mill Production): Commenced long-term gold and silver concentrate production at its Merritt mill, processing Talisker Resources' ore and preparing for Blue Lagoon material. - 2025-06-23 (Blue Lagoon Credit): Provided a $2M unsecured line of credit to Blue Lagoon Resources Inc. for their Dome Mountain gold project. - 2025-06-20 (Craigmont Drilling): Started a 4,000-5,000 meter diamond drilling program at the New Craigmont Copper Project, targeting new zones identified with AI analysis. - 2025-06-09 (Treasure Mountain MYAB Permit): Received a Multi-Year Area-Based (MYAB) exploration permit for Treasure Mountain, allowing drilling and trenching. - 2025-06-04 (Senior Geologist Hire): Hired Vicente Garcia as Senior Geologist to enhance copper porphyry expertise. - 2025-05-30 (Interim Financial Statements): Reported Q1 2025 financials (period ended March 31, 2025). - 2025-05-21 (Gold/Silver Production Start): Announced commencement of gold and silver production, with Talisker ore transportation beginning and preparations for Blue Lagoon ore. - 2025-05-15 (Talisker Agreement): Talisker Resources renewed its milling agreement with Nicola and began trucking ore to the Craigmont mill. - 2025-04-30 (Annual Financial Statements): Reported audited annual financials for 2024 (period ended Dec 31, 2024). - 2025-04-17 (BMO Nesbitt Report): BMO Nesbitt Burns Inc. corrected previous filings, stating ownership of 30,598,376 shares (17.75%) as of April 16, 2025. - 2025-03-14 (PP Clarification): Clarified terms of the March 12 private placement, confirming 4,038,955 units issued for $1.13M. - 2025-03-12 (Dominion Final Permit & PP Close): Received final bulk sample permit for Dominion Creek (10,000 tonnes) with an anticipated start date of July 2025. Closed a $1.13M non-brokered private placement at $0.28/unit. - 2025-03-06 (Dominion Draft Permit): Received a draft bulk sample permit for Dominion Creek. - 2025-02-25 (Private Placement Arranged): Arranged a non-brokered private placement of up to 7,142,857 units at $0.28/unit to raise $2M. - 2025-02-20 (Craigmont Drilling Results): Reported significant copper intercepts from the 2024 drilling program at New Craigmont, including 52.9m of 1.03% Cu (including 13.0m of 3.46% Cu) in NC-24-002. - 2025-01-13 (Debt Settlement): Issued 1,469,935 shares to settle $411,583 in interest on convertible debentures at a price of $0.28/share. - 2024-12-18 (Options/RSUs): Granted 500,000 stock options at $0.30 and 1,000,000 Restricted Share Units (RSUs). - 2024-12-18 (Shareholder Letter): Provided a year-in-review, highlighting debt repayment, exploration, mill upgrades, and 2025 priorities. - 2024-12-04 (Craigmont Drilling Complete): Completed the 2024 drilling program at New Craigmont. - 2024-11-14 (Private Placement Arranged): Arranged a $500,000 flow-through private placement at $0.335/share for New Craigmont exploration.

The most recent news (2025-11-04) regarding the Dominion Gold Project update is Routine - Negative. While the discovery of "three new veins" is presented positively, the lack of immediate assay results for these specific veins is a significant omission for a company touting "high-grade gold and silver." Furthermore, the statement that the bulk sample program is "planned to recommence in July 2026" implies a substantial delay. The previous news on 2025-07-30 clearly stated "Commencement of 10,000-tonne bulk sample" with road work completion targeted for August 10, 2025, and extraction to commence post-road work. This latest update suggests that the bulk sample extraction, initially stated to begin in Q3 2025, has either halted or not progressed as expected, and is now being pushed back by almost a year. This represents a miss on a stated operational milestone, casting doubt on the company's ability to execute its timelines for its gold production goals, despite the positive spin. The "5 open faces" and "6 metres of strike length" sound like very small-scale operations for a project described as "larger than initially anticipated" by the CEO.

Looking at the broader context of recent news: - Positive developments: - The commencement of gold concentrate shipping from Talisker and the resulting $2.3M USD in gross proceeds from 707 ounces of gold is a significant step towards becoming a producer and generating revenue. This validates the Merritt mill upgrades. - Positive copper drill results from New Craigmont (e.g., 52.9m of 1.03% Cu) confirm mineralization and provide clear targets for future exploration, which is crucial for the flagship copper project. Lease extensions provide long-term tenure. - Permits for Treasure Mountain (MYAB and lease extension) and the initial bulk sample for Dominion were critical milestones, although Dominion's execution is now in question. - Operational revenues from the gravel pit and cement plant, and the secured contracts, provide a non-resource-based revenue stream, contributing to the bottom line, which is positive for a junior miner. - The stock price rally from sub-$0.30 to over $1.00 since late 2024 suggests the market is reacting positively to the company's progress and perceived transition towards production. The warrant acceleration in July 2025 further underlines this positive market sentiment at that time.

• Concerns and risks:
  • Continuous Dilution: The company has consistently issued shares through private placements and debt conversions. Concept Capital's debt conversion at $0.17/share, well below the current market price, highlights the dilution investors faced at different stages. The filing of a $10M shelf prospectus suggests more capital raises are anticipated, leading to further dilution.
  • Cash Position and Burn Rate: Despite recent capital raises and initial revenues, the company has negative working capital and a significant accumulated deficit. The Q1 2025 financial statements showed a cash burn from operations, indicating a continued need for external financing.
  • Operational Timelines: The delay of the Dominion bulk sample, despite prior announcements of "commencement," raises concerns about execution and reliability of projected timelines.
  • Interconnected Risks: Nicola's deep involvement with Blue Lagoon (milling agreement, credit line, equity stake) means Blue Lagoon's success or failure will directly impact Nicola.
  • Vague Exploration Results: While new veins are mentioned at Dominion, the lack of specific assay data for these discoveries dampens the positive sentiment.

In summary, Nicola Mining is actively working on multiple projects, showing some promising exploration results (copper) and initial production (gold milling). However, the latest news about Dominion highlights potential operational delays and a lack of detailed results, which is a negative in the context of persistent capital needs and dilution. The company is advancing, but the path is capital-intensive and subject to execution risks.

Nicola Mining Inc. (TSXV: NIM) is a Canadian junior mining company with a diversified portfolio of mineral exploration and development projects, as well as operational revenue streams. - Flagship Project (Copper): New Craigmont Copper Project: Located near Merritt, British Columbia, adjacent to Teck Resources' Highland Valley Copper mine. It's an historic high-grade copper mine with exploration focused on defining a porphyry copper system. The company holds 100% interest in 22 mineral claims and 10 mineral leases over 10,800 hectares, subject to a 2% Net Smelter Royalty (NSR). - Gold Projects: - Dominion Gold Project: The company holds a 75% economic interest in this high-grade gold and silver project in British Columbia. It is currently in the bulk sampling stage (10,000 tonnes planned). - Merritt Mill and Tailings Facility: A 100% owned, fully permitted gold and silver milling facility near Merritt, B.C., capable of processing third-party ore. This facility is a key strategic asset, positioning Nicola as a regional milling hub. - Silver Project: Treasure Mountain Silver Project: A fully permitted historical underground silver mine (30 mineral claims and 1 mineral lease over 2,200 hectares), currently in care and maintenance, awaiting higher silver prices and subject to a 2% NSR. Exploration is planned for 2026. - Other Operations: The company also operates a wholly-owned gravel pit and a cement ready-mix plant, which provide ongoing operational revenues and contracts for infrastructure projects.