Nicola Mining Announces Increase to Flow-Through Private Placement and Clarifies Finder’s Fees Paid in Non-Brokered Financing

NOT T FOR DIST TRIBUTION N TO UNITED STATES S NEWSWIR RE SERVIC CES OR FOR R DISSEM MINATION IN THE UN NITED STA ATES

TSX.V: N NIM

NI ICOLA MIN NING ANNO OUNCES IN NCREASE T TO FLOW-T THROUGH PRIVATE PLACEM MENT AND D CLARIFIE ES FINDER’S FEES PAI ID IN NON- -BROKERE ED FINANC CING

, December 19, 2018 – N y”) is pleased to

VANCO

OUVER, BC, Nicola Mini ing Inc. (the e “Company ng the size of its announce that, furth her to its Ne ews Release of Decembe er 5, 2018, it is increasin private p placement fi inancing be ecause of str rong investo or demand.

. The Com mpany previo ously disclosed d that it wou uld issue up to 6,000,000 0 units (each, , a “Unit”) o of the Comp pany at $0.12 25 per Unit for gross procee eds of up to $750,000. T The Compan ny today ann nounces tha at it has incre eased the number of Units s to be issue ed, such tha at it may iss sue up to 10 0,040,000 Un nits at a pri ice of $0.125 pe er Unit for g gross procee eds of up to $1,255,000 ( (the “Offeri ing”). All other terms o of the Offering will remain n the same. In nsiders may y participate in the Offer ring.

Finders’ fees may be e payable in connection with the Of ffering in acc cordance wi ith the polici ies of the TSX V Venture Exchange (the “ “Exchange”)

).

All secur rities issued in connecti ion with the e Offering w will be subjec ct to a statu utory hold period expiring four month hs and one d day after clo osing of the Offering. C Completion o of the Offeri ing is subject to the appro oval of the Exchange. A Any particip pation by in nsiders in t the Offering g will constitut te a related d party tran nsaction und der Multila ateral Instru ument 61-10 01 - Protecti ion of Minority Security Hol lders in Special Transactio ons (“MI 61- -101”) but is expected to

• be exempt from

the forma al valuation and minorit ty sharehold der approval l requiremen nts of MI 61- -101.

The aggr regate gross proceeds fr rom the sale of the Offer ring will be used for fur rther explor ration on the C Company’s w wholly-own ned New Cr raigmont Pro operty, whi ich covers a an area of 1 10,084

• Teck Resources

hectares along the s southern end d of the Gu uichon Batho olith and is adjacent to Ltd.’s Hi ighland Valley Copper, C Canada’s lar rgest copper r mine.

None of the securitie es sold in co onnection wi ith the Offer ring will be registered u under the U United States Se ecurities Act of 1933, as amended, a and no such securities m may be offer red or sold i in the United States absent registration n or an applicable exemp ption from th he registration requirem ments. This new ws release sh hall not cons stitute an of ffer to sell o or the solicit tation of an offer to buy y nor olicitation or sale shall ther re be any sal le of the secu urities in any y jurisdiction in which s such offer, so would be e unlawful.

The Com mpany also announces that, further r to its New ws Releases of Novemb ber 27, 2018 8 and ued an aggregate Decembe er 12, 2018, t the Company y paid total cash finders s fees of $15, ,750 and issu of 157,50 00 share pur rchase warra ants to 2 find ders in conn nection with h certain sub bscriptions i in the first and second tranche closings of the non-brokered private placement of an aggregate of $925,000.

On behalf of the Board of Directors

“Peter Espig”

Peter Espig CEO & Director

For additional information contact:

Peter Espig Telephone: (604) 647-0142 Email: [email protected]

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.

Cautionary Statement Regarding Forward-Looking Statements

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the expectations of management regarding the proposed Offering, the expectations of management regarding the use of proceeds of the Offering, closing conditions for the Offering, the expiry of hold periods for securities distributed pursuant to the Offering, and Exchange approval of the proposed Offering. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including that: the Company may not complete the Offering on terms favorable to the Company or at all; the Exchange may not approve the Offering; the proceeds of the Offering may not be used as stated in this news release; the funds raised from the sale of the Units may not be renounced in favour of the Unit holders; the Company may be unable to satisfy all of the conditions to the Closing; and those additional risks set out in the Company’s public documents filed on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.