Nicola Mining completes gravel pit expansion

Executive Summary

• Nicola Mining and Lower Nicola Site Services have completed a long‑term expansion of their wholly owned gravel pit (permit G1519) and finished construction of a cement‑ready mix plant.
• The company secured two key permits: a Notice of Departure allowing extraction of up to 3 million t of inert rock at ~1,500 t/day, and an extension of the gravel‑pit mine life plus right‑of‑way work permit (file 2024‑05539).
• Contracts have been obtained to supply gravel and cement to Teck Resources’ $2.5 billion Highland Valley copper expansion and to various provincial transportation projects, positioning the site as a regional milling partner for decades.

Key Details

• Permit G1519 Expansion: Completed underground culvert enables aggregate transfer across a provincial highway; permits allow continued operation and potential decades‑long life extension.
• Notice of Departure (NoD): Authorizes extraction of up to 3 million t of inert rock for infrastructure reconstruction, at an estimated production rate of ~1,500 t per day.
• Right‑of‑Way Permit (2024‑05539): Granted on Sept 5 2025, permits construction, use and maintenance of works within a provincial highway corridor.
• Cement‑Ready Mix Plant: Fully constructed; now operational to produce ready‑mix cement for external contracts.
• Contract Wins:
• Supply of gravel and cement to Teck Resources’ Highland Valley copper expansion (valued at multi‑hundred‑million dollars).
• Agreements with the BC Ministry of Transportation and private sector entities for aggregate and cement deliveries.
• Strategic Impact: Enhances Nicola’s revenue diversification beyond gold/silver milling; supports regional infrastructure projects and strengthens relationships with First Nations and local communities.
• CEO Comment (Peter Espig): Emphasized that while rock quarry, gravel pit, and cement‑mix operations are not core long‑term revenue generators, they contribute to a solid bottom line and facilitate broader partnership opportunities.

Notable Quotes

“We recognize that the rock quarry, gravel pit and cement‑ready mix plant are not our long‑term core revenue generators; however, it all contributes to a solid bottom line.” – Peter Espig, CEO

Qualified Person: Will Whitty, P.Geo., Vice‑President Exploration (NI 43‑101).