Nicola Mining Provides Resampled Diamond Drill Results from Craigmont Mine

Nicola Mining Inc. is pleased to announce results of historic and resampled diamond drill core from hole S-100. Hole S-100 was originally drilled in January 1978 on the Embayment target located on the Thule property 10 km west of Merritt, B.C.

Early in January 2017, Nicola Mining Inc. geologists re-sampled S-100, an historic surface drill hole from the Craigmont Mine. This hole was drilled into the Embayment target; a target that was drill tested by Nicola Mining in their 2016 drill program with hole THU-002. The Company's news release dated September 7, 2016 includes one Embayment Zone hole, THU-002 that intersected 1.11% Cu over 85.92m. Hole S-100 was collared approximately 65 metres southeast of THU-002 and drilled a total of 590.70 metres (1938.0 feet). Nicola Mining sampled an additional 64.49 metres (228 feet) of altered and weakly mineralized core from where original sampling stopped at 421.23 metres (1382 feet). The results of the historic sampling of S-100 include sections of 0.92% Cu over 61.9 metres within a section of 116.7 metres grading 0.54%.

Re-sampling S-100 entailed locating and recovering the core in from the original Craigmont core racks, re-establishing drill core depths using box footage labels and original footage blocks that remained in the core boxes. The last available core was from a hole depth of 490.73 metres (1610 feet) as indicated on the core box marking. This depth was used to verify depths from block markings on preceding core and confidently establish downhole depths of samples collected at 2 metre intervals. Hole S-100 was drilled on an azimuth 053 degrees and a dip of -52 degrees. Core Sizes were HQ from 184.10 metres (604 feet) to 277.37 metres (910 feet) and NQ from 277.37 metres (910 feet) to the end of hole at 590.70 metres (1938 feet).

The end of S-100 is approximately 143.00 metres northwest and 140.0m below the end of hole for THU-002, this indicates an area of untested potential mineralization.

Nicola Mining sampled the interval from 414.30 to 490.70 metres (1359.25-1610.00 feet), overlapping the original samples by 6.94 metres (22.77 feet).

Peter Espig, CEO of Nicola Mining Inc., commented, "We are very encouraged by these results as the 140-metre distance between the two drill holes highlights the potential of an exciting mineralized zone. The Company will conduct work during 2017 to delineate and define the zone, which is open in multiple directions."

Qualified Person

The scientific and technical content of this press release was reviewed by Mr. Chris LeClair G.I.T. and verified by Mr. Kevin Wells, P.Geo., who is classified as a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.