Nicola Mining Inc. (the ‘Company’ or ‘Nicola’) announced that it has commenced processing of gold and silver mill feed at its mill, located near Merritt, British Columbia (‘BC’). The Company will produce a gold and silver concentrate that will be purchased by Ocean Partners UK Limited (‘Ocean Partners’), a company that provides global trading services to miners, smelters, and refiners. Crushing of mill feed, which was transported to the site by Blue Lagoon Resources Inc., commenced on July 2, 2021, after having accumulated a stockpile of approximately 1,500 tonnes. The Company and BLLG recently signed an amending agreement (the ‘Amending Agreement’) to the Milling and Smelting Profit Share Agreement dated March 31, 2017 (the ‘Original Agreement’). The crushed material was stored in the fine ore bin prior to commencing flotation operations on July 8, 2021. The Company has completed approximately $2.0M in upgrades at its approximate $30.0M facility, which is permitted to process approximately 200 tonnes per day (up to 70,000 tonnes per year). The Company's wholly owned Craigmont mill was constructed with ample room for expansion and is the only site in BC permitted to accept high-grade gold and silver mill feed from throughout the province. In addition to BLLG, the Company announced on June 8, 2021 that it had proceeded with the Mineral Purchase Agreement to acquire a 75% economic interest in the Dominion Creek Gold Project, a high-grade gold project located about 110 kilometers east-southeast of Prince George. The Company looks forward to providing an update on the 10,000-tonne bulk sample permit application in a subsequent news release. In addition to commencing production, the Company would like to confirm its commitment to work with communities and government to minimize their impact on the environment.