Nicola Mining Announces Closing of Second and Final Tranche of Convertible Debenture Offering

TSX.V: N NIM

NICOLA MINING G ANNOUN NCES CLOS SING OF SE ECOND AN ND FINAL T TRANCHE O OF CONV VERTIBLE D DEBENTUR RE OFFERIN NG

ng Inc. (the “Company

VANCO OUVER, B.C

C., January 9 9, 2020 – N Nicola Minin y”) is please ed to announce that, furth her to its Ne ews Releases s of Novem mber 13, 2019 9 and November 21, 20 019, it has com mpleted a second an nd final tr ranche of its non-br rokered pri ivate place ement (the “Off fering”) pur rsuant to which it issue ed an aggre egate of $350,000 of sec cured convertible res (the “Debentures”). The Compa debentur any has rais sed total pro oceeds of $7, ,350,882 from m the closing o of the first and second t tranches of t the Offering

g. The Deben ntures inclu ude the follo owing key term ms:

• th he Debentur res shall bea ar interest at a rate of 1 10% per ann num, which interest sha all be payable annu ually, in cash h or in comm mon shares ( (each, a “Sh hare”) of the Company, a at the op ption of the Company;
• th he Debentur res will matu ure three yea ars after the e date of issu uance (the “M

Maturity Da ate”), an nd the prin ncipal amoun nt of the D Debentures, t together with any accr rued and un npaid in nterest shall be payable o on the Matu urity Date;

• th ntures shall be convertib
  • the

he principal l amount of f the Deben ble into Sha ares prior to Maturity Dat M e, at the opti ion of the ho older, at a co onversion pr rice of $0.10 per Share; a and

• th he repayment of the o outstanding principal a and interest of the Deb bentures wi ill be se ecured again nst the assets s of the Com mpany.

The Com mpany did no ot pay any fi inder’s fees i in connectio on with the O Offering.

Proceeds s from the O Offering will be used for r general wo orking capita al and may be used to r repay existing d debentures.

The Deb bentures and d any Share es issued up pon convers sion of the Debentures are subject t to a d one day after the closing of statutory y hold period d expiring o on the date t that is four m months and the Offer ring.

On behal lf of the Board of Directo ors

“Peter Es spig”

Peter Es spig CEO & D Director

For additional information contact:

Peter Espig Telephone: 778. 385.1213 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.