Nicola Mining Commences Drilling at Treasure Mountain's MB Zone

Nicola Mining has commenced its first-ever drill program at the Treasure Mountain's MB Zone, a permitted silver mine located approximately 30 km northeast of Hope, British Columbia. The mine was placed on care and maintenance in 2013 due to depressed silver prices, but Nicola has maintained the project in anticipation of a more favorable market environment.

The 2026 exploration drilling program, known as the 2026 TM Program, includes diamond drilling at the MB target area, a previously undrilled zone approximately 1 km northwest of the historical Treasure Mountain silver mine. The MB target area is considered a compelling exploration target for high-grade silver-lead-zinc mineralization, similar to that encountered at the historical mine, with the additional presence of copper and gold.

From 2019 to 2022, Nicola carried out soil and surface rock sampling that returned encouraging results indicating silver-lead-zinc-copper-gold mineralization along a vein system exposed at several locations. Notable samples include: - Sample 2100151: 813 g/t Ag, 0.52 g/t Au, 19% Zn and 4.66% Cu - Sample 2100152: 105 g/t Ag and 1.18% Cu - Sample 2100207 (taken from the exposed vein): 1,300 g/t Ag, 2.59 g/t Au, 1.16% Cu, 27.4% Pb and 27.2% Zn

Drilling for the 2026 season is expected to be completed by the end of September, with assay results expected to be released by year-end. The 2026 TM Program comprises four drill holes totaling approximately 800 m and targeting the MB Zone, an area characterized by mineralized veins at surface that have not previously been drill-tested at depth. The Company is working with Western Exploration Diamond Drilling Ltd. to execute the 2026 TM Program.

Visual examination of the core from the first hole has identified intervals exhibiting intense mineralization, including semi-massive pyrite-pyrrhotite-sphalerite mineralization occurring as irregular blebs, patches, and sulphide-rich aggregates throughout the host rock. The Company will report assay results following receipt, verification, and review in accordance with its disclosure procedures.

Peter Espig, Chief Executive Officer of Nicola Mining, commented, "Treasure Mountain has remained a vital component of Nicola's asset portfolio throughout a prolonged period in which silver-market conditions did not justify aggressive capital deployment. Commencing drilling at the MB Zone marks a deliberate transition from asset preservation to value-oriented exploration. We are particularly encouraged by the intensity of mineralization observed in the first drill core; however, our interpretation will remain disciplined and assay-driven."

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 also owns 100% of the Treasure Mountain Property, which comprises 30 mineral claims and a mineral lease spanning more than 2,200 hectares.