Nicola Mining Commences Receipt of Blue Lagoon Gold and Silver Millfeed

The most recent news, dated December 1, 2025, announces that Nicola Mining Inc. ("Nicola" or "the Company") has commenced receiving high-grade gold and silver mill feed from Blue Lagoon Resources Inc. ("Blue Lagoon"). This marks the operational start of a long-term partnership where Blue Lagoon will transport material from its Dome Mountain Gold Mine for processing at Nicola's Merritt Mill. Nicola had previously supported Blue Lagoon with a $2.0 million non-dilutive line of credit. The company also stated it will provide its 2026 plans in an upcoming Annual Letter to Shareholders.

This announcement is materially positive as it marks a critical milestone in Nicola's strategy: transitioning its Merritt Mill into a steady, long-term cash-generating asset. The commencement of mill feed delivery from a key partner confirms the operational viability of the company's business model and begins a tangible revenue stream.

Reviewing the historical context, this event was anticipated but is no less significant for its confirmation: - June 23, 2025: Nicola provides a $2.0M credit line to Blue Lagoon, solidifying the partnership. - September 29, 2025: The milling agreement is formally extended for 10 years, securing a long-term feed source for the mill. Blue Lagoon stated a target of Q4 2025 for first gold sales. - November 10, 2025: Nicola provides 60 days' notice to Talisker Resources to terminate its processing agreement. This move, while removing one client, was likely a strategic decision to free up mill capacity for higher-priority feed, such as from Blue Lagoon and the company's own Dominion Creek project. - December 1, 2025: Mill feed transport begins, fulfilling the Q4 2025 target and officially starting the operational phase.

This news de-risks the milling operation, which is intended to fund the company's more speculative, high-upside exploration projects. While the stock has seen a significant run-up in 2025, it has corrected from its September highs of $1.25. This confirmation of revenue generation provides fundamental support at current levels and validates management's execution. The market will now shift its focus from 'if' they can secure feed to 'how much' revenue and profit this partnership will generate.

Nicola Mining Inc. is a British Columbia-focused company with a two-pronged strategy: 1. Operations: Generate near-term cash flow by operating its 100%-owned Merritt Mill and processing facility, the only one in BC permitted to accept third-party mill feed. 2. Exploration: Use operational cash flow to fund exploration and development of its wholly-owned mineral properties.

The company's flagship exploration asset is the New Craigmont Copper Project, a 10,800-hectare property surrounding a historic high-grade copper mine. It is located adjacent to Teck's Highland Valley Copper Mine, the largest in Canada. Nicola's 2024 exploration program was highly successful, intersecting 52.9 metres of 1.03% copper, confirming near-surface mineralization and demonstrating the potential for a much larger porphyry copper system.

Other key assets include the permitted Treasure Mountain Silver Project, the high-grade Dominion Creek Gold Project (75% economic interest), and various revenue-generating gravel and cement operations.