Nicola Mining Announces Extension of Agreement with Lower Nicola Site Services Ltd. and Completion of Drill Exploration for 2026 at Treasure Mountain

Nicola expects to provide a summary of the Treasure Mountain 2026 Exploration Program in the near future.

Rhea-AI Summary

Nicola Mining (NASDAQ: NICM) announced that Lower Nicola Site Services extended their rock and gravel agreement through March 3, 2033. LNSS retains exclusive extraction rights at Nicola's Craigmont Mine Site, with Nicola receiving a per-tonne royalty, and preferential engagement for competitively priced services.

Nicola also completed its first diamond drill program at Treasure Mountain's MB Zone: four holes totaling approximately 800 metres. Geological logging, core sampling and preparation for laboratory analysis are underway. Visual inspection identified sulphide mineralization, but these observations are preliminary and do not replace analytical results. Assays remain pending for both Treasure Mountain and the 2026 New Craigmont program.

4 points · 0 major

PositiveiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointCraigmont extraction agreement extended through March 3, 2033, preserving Nicola's per-tonne royalty framework.
• Minor pointTreasure Mountain's first MB Zone diamond drill program completed: four holes totaling approximately 800 metres.
• Minor pointMB Zone geological logging, core sampling and preparation for laboratory analysis are underway.
• Minor point. Forward-looking: it has not happened yet and may not happen.Nicola expects a Treasure Mountain 2026 exploration summary in the near future.

Negative

• Minor pointMB Zone visual sulphide observations are preliminary and are not a substitute for analytical results.
• Minor pointAssays for 2026 New Craigmont and Treasure Mountain remain pending.

Key Figures

Agreement extended through: March 3, 2033 Drill holes: 4 Drilling completed: Approximately 800 metres

Agreement extended through

March 3, 2033

Extension of the agreement with LNSS

Drill holes

4

2026 Treasure Mountain MB Zone program

Drilling completed

Approximately 800 metres

2026 Treasure Mountain MB Zone program

Key Terms

diamond drill program, multi-element analysis, sphalerite, ni 43-101

4 terms

diamond drill program technical

"completed its first-ever diamond drill program at the MB Zone"

A diamond drill program is a mining exploration campaign that uses a rotating drill fitted with a diamond-studded bit to cut and retrieve solid rock cores from underground. Think of it like taking a reliable subsurface “biopsy” that lets geologists see the actual rock and mineral content directly; for investors, the cores provide the most trustworthy evidence of whether valuable minerals exist, in what quantity and quality, and therefore shape project value and financing decisions.

multi-element analysis technical

"preparation for laboratory multi-element analysis"

A laboratory method that measures the amounts of many chemical elements—like metals or minerals—in a single sample at once, similar to a nutrition label that lists several nutrients together. Investors care because the results affect how valuable or risky an asset is: they inform mineral resource estimates, product safety and compliance, environmental liabilities, and the likelihood of costly cleanup or regulatory action.

sphalerite technical

"including pyrite, pyrrhotite and sphalerite"

Sphalerite is a mineral made mostly of zinc sulfide and is the main source of zinc mined worldwide; it can contain varying amounts of iron and appears in a range of colors. Investors care because the quantity and quality of sphalerite in a deposit determine how much zinc can be produced and at what cost, which influences zinc supply, industrial demand and commodity prices — similar to how the size and quality of an apple crop affect juice producers' costs.

ni 43-101 regulatory

"as defined by National Instrument 43-101"

A Canadian regulatory standard that sets the rules for how mining and exploration companies must report mineral resources and reserves, requiring technical reports prepared or signed off by an independent, certified expert. It matters to investors because it creates a consistent, transparent “inspection report” for mining projects, making it easier to compare prospects, judge the reliability of claims, and assess geological and financial risk before investing.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Vancouver, British Columbia--(Newsfile Corp. - October 8, 2026) - Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) (the "Company" or "Nicola") is pleased to announce that Lower Nicola Site Services Ltd. ("LNSS") has exercised its option to extend the Rock and Gravel Extraction and Preferential Engagement Agreement (the "Agreement") originally entered into between Nicola and LNSS in March 2022. The parties have confirmed that the Agreement will now remain in effect until March 3, 2033.

LNSS is an indirectly majority-owned company formed through a partnership between the Lower Nicola Indian Band Development Corporation and Infracon Construction Inc. Under the original Agreement, LNSS was granted the exclusive right to extract gravel and rock from the Company's Craigmont Mine Site, located approximately 14 kilometres from Merritt, British Columbia, with Nicola receiving a per-tonne royalty for material extracted.

The Agreement also provides LNSS with preferential engagement for services it provides where those services are competitive. The extension preserves the commercial framework established by the parties and provides a longer-term foundation for continued collaboration at the Craigmont Mine Site.

Nicola is similarity pleased to have completed its first-ever diamond drill program at the MB Zone at the Treasure Mountain Silver Project, marking an important milestone in the systematic evaluation of this previously undrilled target. The 2026 Program comprised four drill holes totaling approximately 800 metres, designed to test at depth the northeast-southwest-trending quartz-sulphide vein system identified through previous surface mapping and geochemical sampling. The Company is now completing detailed geological logging, core sampling and preparation for laboratory multi-element analysis. Visual examination of drill core has identified intervals of intense sulphide mineralization, including pyrite, pyrrhotite and sphalerite; however, the Company emphasizes that visual observations are preliminary and are not a substitute for analytical results. The assay data, once received and interpreted in conjunction with the structural, lithological and surface geochemical datasets, will provide the first subsurface geochemical information from the MB Zone and will be important in refining the geological model and evaluating the scale, continuity and mineralogical character of the mineralized system.

Peter Espig, Chief Executive Officer of Nicola Mining, commented, "The extension of our agreement with LNSS is important not simply because it lengthens a commercial relationship, but because it reflects the durability of a model in which economic participation, responsible site stewardship and regional infrastructure needs can reinforce one another. In resource development, the quality of a partnership is ultimately measured by whether it creates alignment that endures beyond an individual project or market cycle. Our relationship with LNSS has demonstrated that commercial discipline and meaningful Indigenous economic participation are not competing objectives; when structured thoughtfully, they are mutually reinforcing. We are very pleased to extend this relationship and to continue building long-term value for Nicola, LNSS and the communities in which we operate. We are equally excited to receive assays from both our 2026 New Craigmont (copper) and Treasure Mountain (silver), which we will announce when received. The Company expects to provide a summary of the Treasure Mountain 2026 Exploration Program in the near future."

Qualified Person
The scientific and technical disclosures contained in this news release have been reviewed and approved by Will Whitty, P.Geo., Vice President of Exploration for the Company and a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

About Nicola Mining
Nicola Mining Inc. is a junior mining company listed on the Nasdaq Stock Market, the TSX Venture Exchange and the Frankfurt Stock Exchange. The Company owns a 100% interest in a permitted mill and tailings facility located near Merritt, British Columbia, and has entered into Mining and Milling Profit Share Agreements with high-grade gold projects. Nicola's fully permitted mill can process both gold and silver mill feed using gravity and flotation processes.

The Company owns 100% of the New Craigmont Project, a high-grade copper property covering more than 10,800 hectares along the southern end of the Guichon Batholith and adjacent to Highland Valley Copper, Canada's largest copper mine. The Company also owns 100% of the Treasure Mountain Property, which comprises 30 mineral claims and a mineral lease spanning more than 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: info@nicolamining.com

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/317694

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How long has Nicola Mining's agreement with Lower Nicola Site Services been extended?

The agreement now remains in effect until March 3, 2033. Lower Nicola Site Services exercised its extension option under the agreement originally entered into in March 2022. It retains exclusive gravel and rock extraction rights at Craigmont, with Nicola receiving a per-tonne royalty.

What did Nicola Mining complete at Treasure Mountain's MB Zone in 2026?

Nicola completed its first diamond drill program at the MB Zone, comprising four holes totaling approximately 800 metres. Visual inspection identified sulphide mineralization, but those observations are preliminary and do not replace laboratory analysis. Assay results remain pending.

What was Nicola Mining's Treasure Mountain MB Zone drilling designed to test?

The drilling was designed to test at depth a northeast-southwest-trending quartz-sulphide vein system identified through earlier surface mapping and geochemical sampling. Nicola expects the assays, interpreted with geological and surface data, to help refine the geological model and evaluate the system's scale, continuity and mineral composition.