Nicola Mining Inc. Announces Third Tranche of Convertible Debenture Financing, Unit Financing and Intention to Exit CCAA

TSX.V: NIM NEWS RELEASE VANCOUVER, B.C, October 26, 2015 – Nicola Mining Inc. (the “Company”) announces that it plans to raise up to $1,500,000 under the third tranche (the “Third Tranche”) of its previously announced offering of secured convertible debentures (each, a “Debenture”) and up to $750,000 in units (each, a “Unit”), which proceeds will be used to exit creditor protection under the Companies’ Creditors Arrangement Act (Canada) (“CCAA“), which it applied for on July 26, 2013. The terms of the Debentures for the Third Tranche will be similar to the debentures previously issued by the Company and include: the Debentures will bear interest (“Interest”) at a rate of 10% per annum, which Interest shall be payable annually, as to 50% in cash and 50% by the issuance of common shares of the Company (each, a “Share”) at a price per Share equal to the market price of the Shares at the time of issuance; the Debentures will mature three years after issuance (the “Maturity Date”), and the principal amount of the Debentures, together with accrued and unpaid interest, shall be payable on the Maturity Date; the principal amount of the Debentures will be convertible into Shares at a price of $0.275 per Share at any time, and from time to time, until the Maturity Date; and for every $1,000 of principal of the Debentures, the Company will issue 5,000 non-transferrable common share purchase warrants (each, a “Debenture Warrant”), with each Debenture Warrant exercisable into one Share at an exercise price of $0.375 per Share in the first 12 months after closing of the Third Tranche (the “Closing”) and...