Nicola Mining and Ocean Partners provide $10.0 million to Blue Lagoon Resources

Vancouver, British Columbia--(Newsfile Corp. - August 10, 2026) - Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) (the " Company " or " Nicola ") is pleased to announce that it, and Ocean Partners UK Limited 1 (" Ocean Partners ") have committed to a combined $10.0 million in financing to Blue Lagoon Resources (CSE: BLLG) (" Blue Lagoon ").

The financing consists of two equal tranches, with Nicola investing $5.0 million and Ocean Partners investing $5.0 million, to support the continued development and production ramp-up of Blue Lagoon's 100%-owned Dome Mountain Gold and Silver Project, located near Smithers, British Columbia 2 . The financing is expected to advance mine development activities necessary to increase production toward the targeted 150-200 tonnes per day.

Nicola's investment was completed through a private placement at $0.60 per share, resulting in the acquisition of 8,333,333 common shares. This investment builds upon Nicola's earlier strategic investment of $1.0 million at $0.14 per share completed on January 17, 2024 3 underscoring the Company's long-term conviction in Blue Lagoon's management team and the Dome Mountain project.

Ocean Partners' participation further reinforces the strategic alignment among the parties. Combined with its previously announced $3.0 million investment 4 , Ocean Partners has now committed $8.0 million to Blue Lagoon. Collectively, Nicola and Ocean Partners have established a significant strategic equity position while providing capital intended to accelerate production growth.

Beyond the equity investment, the financing further strengthens the integrated relationship between mine development, concentrate marketing, and milling infrastructure. As Blue Lagoon advances production, Nicola's wholly owned Merritt Mill -British Columbia's only fully permitted milling facility authorized to process gold and silver material sourced throughout the province-is expected to play an increasingly important role in supporting regional mining operations.

Mr. Peter Espig, CEO of Nicola Mining Inc., commented:

"This investment reflects our confidence in both the quality of the Dome Mountain asset and Blue Lagoon's management team's ability to execute its production strategy. Nicola's objective extends beyond providing capital-we seek to partner with companies that can benefit from our operational infrastructure, technical expertise, and long-term strategic relationships. Together with Ocean Partners, we believe this financing positions Blue Lagoon to accelerate its transition toward sustained commercial production while strengthening an integrated mining model that combines financing, processing, and concentrate marketing. As Nicola continues to expand and upgrade the Merritt Mill, we remain committed to supporting responsible mine development throughout British Columbia and creating long-term value for all stakeholders."

Qualified Person The scientific and technical disclosures included in this news release have been reviewed and approved by Will Whitty, P.Geo., who is the Qualified Person as defined by NI 43-101. Mr. Whitty is Vice President of Exploration for the Company.