Nicola Mining Provides Merritt Mill Operational Update

Vancouver, British Columbia--(Newsfile Corp. - October 23, 2026) - Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) (the "Company" or "Nicola") is pleased to provide updates on processing activities at its Merritt Mill1 and progress across its precious-metals operations: Red Eye Resources Ltd. ("Red Eye"): The Company completed processing material sourced from Red Eye stockpiles in September and is awaiting concentrate assay results prior to sale. As announced on August 17, 2026, Nicola and Red Eye entered into a Milling Profit Share Agreement. The Company expects the associated revenue to be recognized in the fourth quarter of 2026, subject to final assays, sales and applicable revenue-recognition requirements. Mill Feed Production                                               Red Eye Stockpile  To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/4873/320495_741585eb4424aba7_001full.jpg Dominion Gold Project ("Dominion"): On June 1, 2026, Nicola announced that it was in the final stages of preparing to commence gold and silver extraction at Dominion, located approximately 43 kilometres northeast of Wells and 110 kilometres southeast of Prince George, British Columbia. The Company has now initiated arrangements to transport and process approximately 1,300 tonnes of mineralized material at the Merritt Mill. During mine development and extraction, additional gold- and silver-bearing veins were identified. The significance of these discoveries remains subject to further geological evaluation and assay results. Dominion Bulk                                                             Sample Surface Vein To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/4873/320495_741585eb4424aba7_002full.jpg Blue Lagoon Resources ("Blue Lagoon"): On August 10, 2026, Nicola announced that it and Ocean Partners UK Limited ("Ocean Partners") had committed to provide an aggregate $10.0 million in financing to support Blue Lagoon's mine development and production expansion. Blue Lagoon has continued to advance its mine development, grade-control activities and production ramp-up, supporting an expanding pipeline of material for processing. Blue Lagoon Stockpile and Nicola / Blue Lagoon Concentrate To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/4873/320495_741585eb4424aba7_003full.jpg Nicola Mining CEO Peter Espig commented: "2026 has been a year of substantial execution for Nicola. We have advanced multiple sources of precious-metal mill feed, completed processing of Red Eye material, moved Dominion toward trucking and milling, and supported Blue Lagoon's development and production expansion. These are tangible steps in our strategy to build a diversified, dependable processing platform around our permitted Merritt Mill. Importantly, the work undertaken throughout the year is beginning to converge in the fourth quarter, with anticipated concentrate sales and additional processing activity providing a bridge from project development to commercial results. While the timing and magnitude of revenue remain subject to assays, logistics and sales, we believe the operational progress achieved in 2026 provides a considerably stronger foundation for 2027. Our priority is to translate that foundation into sustained throughput, disciplined execution and growing value for shareholders." Qualified Person The scientific and technical disclosures included in this news release have been reviewed and approved by Will Whitty, P.Geo., who is the Qualified Person as defined by NI 43-101. Mr. Whitty is Vice President of Exploration for the Company. About Nicola Mining Nicola Mining Inc. is a mining company listed on the NASDAQ, TSX Venture Exchange and Frankfurt Stock Exchange. The Company owns the Merritt Mill and associated tailings facility near Merritt, British Columbia, and has entered into mining and milling profit-share agreements involving high-grade gold projects. Its permitted mill can process gold- and silver-bearing feed using gravity and flotation circuits. The Company owns 100% 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% of the Treasure Mountain Property, which includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares. On behalf of the Board of Directors "Peter Espig" Peter Espig CEO & Director For additional information: Contact: Bill Cawker Phone: (604) 649-0080 Email: [email protected] Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 1 Merritt Mill: Information Link To view the source version of this press release, please visit https://www.newsfilecorp.com/release/320495