Nicola Mining Provides Merritt Mill Operational Update

Approximately 1,300 tonnes of Dominion material are being arranged for transport and processing, adding another source of mill feed.

Rhea-AI Summary

Nicola Mining (NASDAQ: NICM) completed processing Red Eye stockpile material at its Merritt Mill in September and is awaiting concentrate assays. The company expects related revenue in the fourth quarter of 2026, subject to final assays, sales and revenue-recognition requirements.

Nicola has initiated arrangements to transport and process approximately 1,300 tonnes of mineralized material from Dominion. Additional gold- and silver-bearing veins were identified during development and extraction; their significance requires further geological evaluation and assays. Nicola and Ocean Partners previously committed an aggregate $10.0 million to support Blue Lagoon's development and production expansion. Blue Lagoon's continuing development and production ramp-up support an expanding pipeline of mill feed. Nicola anticipates fourth-quarter concentrate sales and additional processing, with revenue timing and magnitude subject to assays, logistics and sales.

6 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.

How the balance worksHow Sentiment works

0 major · 4 points

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

Positive

• Moderate pointRed Eye stockpile processing was completed in September under a milling profit-share agreement.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Nicola expects Red Eye revenue in fourth-quarter 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Approximately 1,300 tonnes of Dominion material are being arranged for transport and processing.
• Minor pointAdditional gold- and silver-bearing veins were identified during Dominion development and extraction.
• Minor pointBlue Lagoon's development and production ramp-up support an expanding pipeline of material for processing.
• Minor point. Forward-looking: it has not happened yet and may not happen.Nicola anticipates fourth-quarter concentrate sales and additional processing activity.

Negative

• Moderate point$10.0 million aggregate financing commitment by Nicola and Ocean Partners supports Blue Lagoon's development and production expansion. 11% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Red Eye revenue recognition remains subject to final assays, sales and applicable recognition requirements.
• Minor point. Forward-looking: it has not happened yet and may not happen.Dominion vein discoveries' significance remains subject to further geological evaluation and assay results.
• Minor point. Forward-looking: it has not happened yet and may not happen.Revenue timing and magnitude remain subject to assays, logistics and sales.

Key Figures

Expected revenue recognition: fourth quarter of 2026 Dominion material: approximately 1,300 tonnes

Expected revenue recognition

fourth quarter of 2026

Red Eye processing; subject to final assays, sales and revenue-recognition requirements

Dominion material

approximately 1,300 tonnes

Arrangements initiated to transport and process the material at Merritt Mill

Historical Context

2 past events · Latest: Aug 31

2 events

1. Aug 31

   Red Eye assay results

   24h Move

   -5.2%

   Initial stockpile assays reported gold and silver grades; recovery simulations remained pending.

2. Aug 17

   Profit-share agreement

   24h Move

   +2.8%

   The agreement provided for equal sharing of profits from qualifying Red Eye material processed at Merritt Mill.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

revenue-recognition requirements, assay results, ni 43-101, flotation circuits

4 terms

revenue-recognition requirements financial

"subject to final assays, sales and applicable revenue-recognition requirements"

Rules that tell companies when and how to record sales and other income in their financial statements, often set by accounting standards such as GAAP or IFRS. These requirements determine whether a company recognizes revenue now or later — like rules for when to count money as earned versus just received — and matter to investors because they affect reported earnings, growth trends, and comparisons between companies.

assay results technical

"awaiting concentrate assay results prior to sale"

Assay results are the measured outcomes from laboratory tests that determine how much of a substance is present or how well a drug, vaccine, or product performs. For investors, these results are a snapshot of scientific progress and product quality—like a report card or lab grade—that can affect a company’s regulatory approval odds, market potential, manufacturing consistency, and likely future revenues or risks.

ni 43-101 regulatory

"Qualified Person as defined by NI 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.

flotation circuits technical

"using gravity and flotation circuits"

A flotation circuit is the sequence of tanks, pumps, reagents and control equipment in a mineral-processing plant that separates valuable mineral particles from waste rock using froth flotation. Ore ground to fine particles is mixed with water and chemicals that make desired minerals attach to air bubbles; those bubbles rise to form a froth that is skimmed off as a concentrated product while the remaining slurry is discarded or reprocessed. Flotation circuits are described by their arrangement (roughers, scavengers, cleaners), capacity and recovery rates, and their performance depends on ore characteristics, reagent mix and equipment tuning rather than on a single component.

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

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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: 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.

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¹ Merritt Mill: Information Link

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/320495

FAQ

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

When does Nicola Mining expect revenue from processing Red Eye material?

Nicola expects the associated revenue to be recognized in the fourth quarter of 2026, subject to final assays, sales and applicable revenue-recognition requirements. Processing was completed in September, and concentrate assay results are pending before sale.

How much Dominion material is Nicola Mining preparing to process?

Nicola has initiated arrangements to transport and process approximately 1,300 tonnes of mineralized material at the Merritt Mill. Additional gold- and silver-bearing veins were identified during mine development and extraction, but their significance remains subject to geological evaluation and assay results.