Nicola Mining to Commence Gold and Silver Production

Rhea-AI Summary

Nicola Mining (OTCQB: HUSIF) has commenced gold and silver production at its $33.0 million Merritt Mill facility in British Columbia. The company has started receiving ore from Talisker Resources and is undergoing pre-production adjustment, with full capacity expected in Q3. The Merritt Mill is uniquely positioned as BC's only facility permitted to accept third-party gold and silver mill feed province-wide.

The company has multiple strategic developments: a new Milling Agreement with Talisker Resources, partnership with Blue Lagoon Resources for their Dome Mountain Mine, and plans to process ore from their own Dominion Creek Project (75% owned) starting July 2025. Additionally, Nicola is preparing for copper exploration at its New Craigmont Copper Project and has hired Vicente García as Senior Geologist.

Positive

• Merritt Mill is the only facility in BC permitted to accept third-party gold/silver mill feed
• Company owns 100% of the modern $33.0 million milling facility on free-hold industrial-zone land
• Multiple revenue streams from Talisker Resources, Blue Lagoon Resources, and own Dominion Creek Project
• Received Final Permit for bulk sample at Dominion Creek Project (75% economic interest)
• Strategic expansion into copper exploration with experienced senior geologist hire

Negative

• Mill still in pre-production adjustment phase
• Full capacity won't be reached until Q3
• Requires permit amendment for increased mill throughput

News Market Reaction

+14.23%

1 alert

+14.23% News Effect

On the day this news was published, HUSIF gained 14.23%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - May 21, 2025) - Nicola Mining Inc. (TSXV: NIM) (FSE: HLIA) (OTCQB: HUSIF) (the "Company" or "Nicola") is pleased to announce that has started receiving gold / silver ore from Talisker Resources Inc. and is currently undergoing pre-production adjustment. The modern $33.0 million plus milling and processing facility, which is located near Merritt, British Columbia, has undergone numerous upgrades in 2H 2024¹.

Production at the modern facility, which is constructed on free-hold industrial-zone land owned 100% by the Company, is expected to ramp up and reach full capacity in Q3. The Company has also commenced the process of applying for an amendment to its permit, for the purpose of increasing mill throughput.

Nicola's Merritt Mill is the only facility in the Province of British Columbia permitted to accept third party gold and silver mill feed from throughout the province.

Talisker Resources Ltd.
Nicola and Talisker have recently entered into a new Milling Agreement and the latter has commenced transportation of high grade gold/silver ore to Nicola's mill site. Nicola had previously announced that it and Talisker had signed a Milling Agreement² on July 18, 2024. Nicola and Talisker have commenced working with Ocean Partners UK Limited³ on the sale of gold and silver concentrate.

Ore from Talisker's Bralorne Mine

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4873/252869_b7af7d52346f38ab_001full.jpg

Nicola Mining's Merritt Mill

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4873/252869_b7af7d52346f38ab_002full.jpg

Blue Lagoon Resources
Nicola continues to work closely with Blue Lagoon Resources ("Blue Lagoon") and has participated in all tranches of the latter's recent private placement. In a previous capital round, Blue Lagoon announced that Nicola had subscribed for 7,142,857 shares. The Company will participate in Blue Lagoon's official opening of the latter's Dome Mountain Mine on July 9^th, 2025, and is completing final preparations to accept Dome's high-grade gold / silver ore, thereafter.

Dominion Gold / Silver Bulk Sample
Nicola announced on March 12, 2025 that it has received the Final Permit ("Final Permit^[1]") to complete a bulk sample^[2] at its Dominion Creek Mineral Project ("Dominion"), a high grade gold and silver project, of which Nicola owns a 75% economic interest. Preparation has been initiated to mobilize equipment and begin mining activities in July of 2025.

The Company will provide separate news releases for each project soon.

In addition to commencing gold and silver production, Nicola is currently preparing to commence copper exploration at its New Craigmont Copper Project. To strengthen its geological team the Company has hired Vicente García as a Senior Geologist. Mr. García is an experienced exploration geologist with a strong technical background from having worked on many deposit types in North and South America, including porphyry copper. The Company will issue a separate geological news release soon.

Mr. Peter Espig, CEO of Nicola Mining Inc., commented, "Unlike previous milling campaigns we are excited to realize that Nicola is morphing into a steady and long term producer. It is rare for junior miners to reach the production pinnacle and to monetize current precious metal prices with our partners. We are also witnessing firsthand augmented efficiencies in British Columbia's permitting of underground mining operations, which characteristically minimize environmental impact, as well as the strategic significance of our fully permitted mill. In addition to production, we have boosted our geological team and are ramping up activities for what we believe to be an exciting exploration campaign, not only at the New Craigmont Project, but also our fully permitted silver mine, Treasure Mountain."

Qualified Person
William Whitty, P. Geo., the Company's VP Exploration, is the Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects and supervised the preparation of, and has reviewed and approved, the technical information in this release.

About Nicola Mining
Nicola Mining Inc. is a junior mining company listed on the Exchange and Frankfurt Exchange that maintains a 100% owned mill and tailings facility, located near Merritt, British Columbia It has signed Mining and Milling Profit Share Agreements with high grade gold projects. Nicola's fully permitted mill can process both gold and silver mill feed via gravity and flotation processes.

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: Peter Espig
Phone: (778) 385-1213
Email: info@nicolamining.com
URL: www.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.

---

¹ News Release describing upgrades: Link
² News Release: April 9, 2024 Link
³ Ocean Partners operates in several countries throughout the world and maintains a strong global network of relationships and contacts in the base metal mining and smelting sector.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252869

FAQ

When will Nicola Mining (HUSIF) reach full production capacity at its Merritt Mill?

Nicola Mining expects to reach full production capacity at its Merritt Mill facility in Q3 2025, following the current pre-production adjustment phase.

What is unique about Nicola Mining's Merritt Mill facility in British Columbia?

The Merritt Mill is the only facility in British Columbia that is permitted to accept third-party gold and silver mill feed from throughout the province.

What companies are partnering with Nicola Mining (HUSIF) for ore processing?

Nicola Mining has partnerships with Talisker Resources for current ore processing and Blue Lagoon Resources for future processing from their Dome Mountain Mine, starting after July 9th, 2025.

What is Nicola Mining's ownership stake in the Dominion Creek Project?

Nicola Mining owns a 75% economic interest in the Dominion Creek Mineral Project, a high-grade gold and silver project.

How much did Nicola Mining invest in its Merritt Mill facility?

The modern Merritt Mill and processing facility represents an investment of over $33.0 million.