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NICOLA MINING INC. INTERSECTS 1.11% COPPER OVER 85.92 METRES AT THE THULE COPPER PROPERTY IN SOUTHERN BC

Significant copper mineralization has been intersected on Nicola Mining Inc.’s  (NIM.V) Thule copper property located 14 kilometres northwest of Merritt, B.C.

The Thule Copper Property covers 10,084 hectares along the southern end of the Guichon Batholith and is 100% owned by Nicola. The diamond drilling program was designed to test 3 distinct zones on the Thule Copper Property, referred to as Embayment, Titan Queen, and Eric. Total diamond drilling meterage for the 2016 program at the property was 1,084 metres in 5 holes. Copper mineralization was intersected in all 5 holes, highlighted by an intersection of 1.11% copper over 85.92 metres in THU-002, through the Embayment Zone, located approximately 1 km northwest of the past-producing Craigmont Mine.

Results from the drilling program support the Embayment Zone as a fault-offset, westward continuation of the skarn zone that hosts the Craigmont deposit. A follow-up drill program will be designed to determine continuity of mineralization further west along strike and at depth from THU-002.

In addition, drilling at Titan Queen Zone encountered alteration and mineralization features commonly observed in association with porphyry-style copper deposits, including the Highland Valley porphyry complex located 50 km north of Thule Property. Follow-up work will be planned to outline drill targets over a broader area and further test porphyry-style mineralization potential.

  
   Table 1.
     Significant drill hole intersections from the 2016 Thule Property drilling program.
  
  Drill hole         From  (metres)To  (metres)Intercept* (metres)Copper  (%)Zone       
THU-001            43.70         45.72       2.00               0.32       Eric       
          and      77.60         79.00       1.40               0.24                  
THU-001A           112.85        115.00      2.15               0.13       Eric       
          and      122.00        135.88      13.88              0.17                  
          and      141.78        143.70      1.92               0.37                  
          and      152.28        166.35      14.07              0.15                  
          and      228.20        229.67      1.47               0.11                  
THU-002            300.65        331.08      30.43              0.11       Embayment  
          and      331.08        417.00      85.92              1.11                  
          including331.08        343.50      12.42              1.77                  
          including372.65        386.50      13.85              2.71                  
          including378.80        380.00      1.20               4.08                  
          including415.00        417.00      2.00               3.85                  
THU-003            2.40          5.30        2.90               0.55       Titan Queen
          and      52.00         54.00       2.00               0.34                  
THU-004            2.44          4.22        1.78               1.30       Titan Queen

* The intersected length of mineralization is reported throughout this release. True widths are not determined as the geometry of the mineralized zone is uncertain.

Table 2. Drill hole location, elevation, azimuth, dip, depth and zones for the 2016 Thule drilling program. Collar positions were determined by differential GPS methods in UTM NAD 83 Zone 10.

  
  Drill holeEasting  (metres)Northing (metres)Elevation (metres)Azimuth  (degrees)Dip (degrees)Depth (metres)Zone       
THU-001   650546.262       5564066.704      836.00            25                -45          80.47         Eric       
THU-001A  650546.519       5564066.829      835.14            25                -45          235.00        Eric       
THU-002   646727.031       5564094.081      1463.16           40                -60          448.06        Embayment  
THU-003   647022.756       5564993.081      1462.02           60                -55          136.25        Titan Queen
THU-004   647021.694       5564994.269      1462.07           25                -45          163.88        Titan Queen

Peter Espig, Chief Executive Officer of the Company, commented, ” We are extremely encouraged with the results from our 2016 Exploration Program on the Thule Copper Property. The 1.11% Cu over 85.92 metres, including 13.83 metres grading 2.71% Cu, highlight the high grade mineralization of the property. Our team is also very excited with key features observed at the Titan Queen Zone, which is more indicative of a porphyry-style copper deposit. It is well known that the historic Craigmont Mine is a prolific skarn, but the source of the mineralization has yet to be confirmed. In addition to the significant results, the project is further augmented because Nicola’s Thule Copper Project is already associated with a current mine permit. ”