Nicola Mining Announces Proposed Amendments To Secured Convertible Debentures

TSX.V: NIM NEWS RELEASE VANCOUVER, B.C. August 29, 2017 – Nicola Mining Inc. (the “Company” or “Nicola”) announces that it intends to amend (the “Amendment”) the secured convertible debentures (each, a “Debenture”) in the aggregate principal amount of $7,000,882 issued to certain subscribers as previously announced in its News Releases of November 24, 2014, August 25, 2014 and August 8, 2014. In connection with the issuance of the Debentures, the Company also issued 7,000,882 non-transferable common share purchase warrants (each, a “Warrant”), with each Warrant exercisable into one common share of the Company (each, a “Share”) at an exercise price of $0.275 until November 21, 2015 and at $0.50 per Share until November 21, 2018. The Debentures mature on November 21, 2017 (the “Maturity Date”) and bear interest (the “Interest”) at a rate of 10% per annum, which Interest is payable as to 50% in cash and 50% by the issuance of Shares at a price per Share equal to the market price of the at the time of issuance. The Debentures are also convertible into Shares a conversion price (the “Conversion Price”) of $0.275 per Share at any time, and from time to time, until the Maturity Date. The following amendments will be made to the Debentures: the Conversion Price will be reduced to $0.22 from $0.275; the Maturity Date will be extended from November 21, 2017 to November 21, 2019; and all of the 7,000,882 Warrants (representing 3.0% on a fully diluted basis) that were issued in connection with the Debentures will be cancelled. All other terms of the Debentures shall remain the same. The Amendment is subject...