Nicola Mining Inc. announced that it has commenced construction of a cement plant along with its partner Lower Nicola Site Services Ltd. ("LNSS"), which is a partnership between the Lower Nicola Indian Band Development Corporation and Infracon Construction Inc. The Company announced on March 14, 2022, that it had entered into a Rock and Gravel Extraction and Preferential Engagement Agreement with LNSS, and subsequently that on March 29, 2022, that it successfully received a Notice of Departure ("NoD") at the New Craigmont Project from the Ministry of Energy, Mines and Low Carbon Innovation ("EMLI") to operate a rock quarry. Under the NoD the Company can extract of up to 3.0 million tonnes ("M Mt") of inert available rock material that may be used for the infrastructure reconstruction efforts at a production rate of approximately 1,500 tonnes per day. The cement plant is to be located on a gravel pit owned by the Company (Permit G1519) that is operated by LNSS.

The gravel pit is adjacent the Craigmont Mine Site, located near Merritt, British Columbia. Given that Nicola and LNSS (together, the " Partners") are already active in supplying riprap, sand and gravel to the region and infrastructure projects, the vertical integration was a logical development. The Partners have also submitted a five-year mine extension permit application for the gravel pit operations.