Nicola Mining Inc. Enters Into Exploration and Material Purchase Agreement

TSX.V: NIM NEWS RELEASE VANCOUVER, B.C., October 3, 2016 – Nicola Mining Inc. (TSXV: NIM) (the “Company”) is pleased to announce that it has entered into an Exploration and Material Purchase Agreement (the “Agreement”) with Teck Highland Valley Copper Partnership (“HVCP”), a wholly owned subsidiary of Teck Resources Limited. Nicola Mining Inc. owns 100% of the Thule Copper Property (the “Property”) that covers 10,084 hectares along the southern end of the prolific copper-rich Guichon Batholith.  The Property is located approximately 20 kilometres south of the Highland Valley Copper mine, the largest open pit copper mine in Canada which is also located within the Guichon Batholith. The Company will work with HVCP to conduct an exploration program on the historic stockpiles on the Property in order to gather information regarding the grade and other characteristics of the stockpiled material.   Following the exploration campaigns, HVCP will have the right to purchase stockpile material mined by the Company.  The Company will carry out the exploration and mining program, and HVCP has agreed to reimburse the Company for certain costs related to the exploration and mining programs. If the mining program proceeds, HVCP will to pay the Company as follows for purchased material:  Copper Price (US$/lb)*  Price per Tonne of Bought Material (C$/Tonne)     < $3.50           $0.40      $3.50-$4.50           $0.60      > $4.50           $0.80 * Average LME copper price for the calendar quarter HVCP will purchase material on a per tonne basis, as described above.  In addition, it agrees to fund the Company for...