# EDGAR Filing Document

**Accession Number:** 0001526475
**File Stem:** 0001104659-26-007959
**Filing Date:** 2026-1
**Character Count:** 797867
**Document Hash:** 0bb51e98605b33ddd944a860b93f4b2f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-007959.hdr.sgml**: 20260129

**ACCESSION NUMBER**: 0001104659-26-007959

**CONFORMED SUBMISSION TYPE**: F-10EF

**PUBLIC DOCUMENT COUNT**: 41

**FILED AS OF DATE**: 20260129

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NICOLA MINING INC.
- **CENTRAL INDEX KEY:** 0001526475

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** F-10EF
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-293048
- **FILM NUMBER:** 26577814

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 3329 ABERDEEN ROAD
- **CITY:** LOWER NICOLA
- **NON US STATE TERRITORY:** BRITISH COLUMBIA, CANADA
- **PROVINCE COUNTRY:** A1
- **ZIP:** V0K 1Y0
- **BUSINESS PHONE:** 604-306-8245

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 3329 ABERDEEN ROAD
- **CITY:** LOWER NICOLA
- **NON US STATE TERRITORY:** BRITISH COLUMBIA, CANADA
- **PROVINCE COUNTRY:** A1
- **ZIP:** V0K 1Y0

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HULDRA SILVER INC.
- **DATE OF NAME CHANGE:** 20110721

[**TABLE OF CONTENTS**](#TOC)

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

### FORM F-10

#### REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

### NICOLA MINING INC.
(Exact name of Registrant as specified in its charter)

#### Not Applicable
(Translation of Registrant's name into English (if applicable)

---

| | | |
|:---|:---|:---|
| **British Columbia** <br> (Province or other jurisdiction of <br> incorporation or organization)  | **1000** <br> (Primary Standard Industrial Classification <br> Code Number (if applicable))  | **Not Applicable** <br> (I.R.S. Employer <br> Identification Number (if applicable))  |

---

#### Suite 1212 – 1030 West Georgia Street Vancouver, British Columbia V6E 2Y3, Canada Telephone (778) 385-1213
(Address and telephone number of Registrant's principal executive offices)

#### Cogency Global Inc. 112 East 42nd Street, 18th Floor New York, New York 10168 Telephone (800) 221-0102
(Name, address (including zip code) and telephone number (including area code) of agent for service in the United States)

#### Copy of Communications To:

#### Virgil Hlus Cozen O'Connor LLP Bentall 5, 550 Burrard Street, Suite 2501 Vancouver, British Columbia V6C 2B5, Canada Tel.: 236-317-6894 Fax: 604-674-9245
**Approximate date of commencement of proposed sale of the securities to the public**:

From time to time after the effective date of this registration statement

#### Province of British Columbia
(Principal jurisdiction regulating this offering (if applicable))

It is proposed that this filing shall become effective (check appropriate box):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A. ☒

upon filing with the Commission, pursuant to Rule 467(a) (if in connection with an offering being made contemporaneously in the United States and Canada).

B ☐

at some future date (check appropriate box below)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. ☐

pursuant to Rule 467(b) on (date) at (time) (designate a time not sooner than 7 calendar days after filing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. ☐

pursuant to Rule 467(b) on (date) at (time) (designate a time 7 calendar days or sooner after filing) because the securities regulatory authority in the review jurisdiction has issued a receipt or notification of clearance on (date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. ☐

pursuant to Rule 467(b) as soon as practicable after notification of the Commission by the Registrant or the Canadian securities regulatory authority of the review jurisdiction that a receipt or notification of clearance has been issued with respect hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. ☐

after the filing of the next amendment to this Form (if preliminary material is being filed).

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to the home jurisdiction's shelf prospectus offering procedures, check the following box. ☒

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#### PART I

#### INFORMATION REQUIRED TO BE DELIVERED TO OFFEREES OR PURCHASERS

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 *This short form prospectus is a base shelf prospectus. This short form base shelf prospectus has been filed under legislation in provinces of British Columbia, Alberta and Ontario, that permits certain information about these securities to be determined after this prospectus has become final and that permits the omission from this prospectus of that information. The legislation requires the delivery to purchasers of a prospectus supplement containing the omitted information within a specified period of time after agreeing to purchase any of these securities, except in cases where an exemption from such delivery requirements is available.* 

 ***No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. This short form base shelf prospectus constitutes a public offering of these securities only in those jurisdictions where they may be lawfully offered for sale and therein only by persons permitted to sell such securities.***

 ***Information has been incorporated by reference in this short form base shelf prospectus from documents filed with securities commissions or similar authorities in Canada.** Copies of the documents incorporated herein by reference may be obtained on request without charge from Nicola Mining Inc., at Suite 1212 – 1030 West Georgia Street, Vancouver, BC V6E 2Y3, or by telephone at 778.385.1213 and are also available electronically at www.sedarplus.ca.* 

#### SHORT FORM BASE SHELF PROSPECTUS
*New Issue* January 29, 2026

![[MISSING IMAGE: lg_nicolamininginc-4c.jpg]](lg_nicolamininginc-4c.jpg)

### NICOLA MINING INC.

### US$25,000,000

### COMMON SHARES WARRANTS SUBSCRIPTION RECEIPTS UNITS COMMON SHARES REPRESENTED BY DEPOSITARY SHARES DEBT SECURITIES
This short form base shelf prospectus (this "**Prospectus**") relates to the offering for sale by Nicola Mining Inc. (the "**Company**", "**Nicola**", "**we**", "**us** "or "**our**") from time to time, during the 25-month period that this Prospectus, including any amendments hereto, remains effective, of the following securities of the Company in one or more series or issuances, with a total offering price of such securities, in the aggregate, of up to US$25,000,000 (or the equivalent thereof in Canadian dollars or one or more foreign currencies or composite currencies): (i) common shares in the capital of the Company (each, a "**Common Share**" or "**Share**"); (ii) warrants (each, a "**Warrant**") to purchase other Securities (as defined below) of the Company; (iii) subscription receipts (each, a "**Subscription Receipt**"); (iv) units (each, a "**Unit**") comprising of one or more of the other Securities; (v) Common Shares represented by depositary shares, including American depositary shares ("**Depositary Shares**"); and (vi) debt securities (the "**Debt Securities**" and with the Common Shares, Warrants, Subscription Receipts, Units, and Common Shares represented by Depositary Shares, collectively referred to herein as the "**Securities**"). The Securities may be offered separately or together, in amounts, at prices and on terms to be determined based on market conditions at the time of the sale and set forth in an accompanying prospectus supplement (each, a "**Prospectus Supplement**").

#### All dollar amounts in this Prospectus are in Canadian dollars, unless otherwise indicated.
In addition, the securities may be offered and issued in consideration for the acquisition of other businesses, assets or securities by the Company or a subsidiary of the Company. The consideration for any such acquisition may consist of any of the securities separately, a combination of securities or any combination of, among other things, securities, cash and the assumption of liabilities.

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The Common Shares are listed and traded on the TSX Venture Exchange (the "TSXV") under the symbol "NIM", on the Frankfurt Securities Exchange under the symbol "HLI" and on the OTCQB operated by the OTC Markets Group Inc. under the ticker "HUSIF". Trading price and volume information for the Securities will be provided as required in each Prospectus Supplement. On January 28, 2026, being the last complete trading day prior to the date hereof, the closing price of the Common Shares on the TSXV was $1.24.

Unless otherwise specified in an applicable Prospectus Supplement, the Debt Securities, the Subscription Receipts, the Units (other than the Common Shares underlying the Units) and the Warrants will not be listed on any securities or stock exchange or on any automated dealer quotation system. There is currently no market through which the Securities, other than the Common Shares, may be sold and purchasers may not be able to resell such Securities purchased under this Prospectus. This may affect the pricing of the Securities, other than the Common Shares, in the secondary market, the transparency and availability of trading prices, the liquidity of the Securities and the extent of issuer regulation. See "*Risk Factors*" for a more complete discussion of these risks.

Nicola is permitted, under a multijurisdictional disclosure system adopted in the United States and Canada, to prepare this Prospectus in accordance with Canadian disclosure requirements. Prospective investors should be aware that such requirements are different from those of the United States. Nicola prepares its financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"), which differ from accounting principles generally accepted in the United States of America.

Prospective investors should be aware that the acquisition of Securities may have tax consequences both in the United States and in Canada. This Prospectus does not discuss U.S. or Canadian tax consequences and any such tax consequences may not be described fully in any applicable Prospectus Supplement with respect to a particular offering of Securities. Prospective investors should consult their own tax advisors prior to deciding to purchase any of the Securities.

The enforcement by investors of civil liabilities under U.S. federal securities laws may be affected adversely by the fact that the Company is incorporated under the laws of Canada, that most of its officers and directors are not residents of the United States, that some or all of the underwriters or experts named in this Prospectus or any applicable Prospectus Supplement may not be residents of the United States and that all or a substantial portion of the assets of the Company and said persons are located outside of the United States. See "Enforceability of Civil Liabilities Under U.S. Securities Laws".

The Company is not making and will not make an offer of these Securities in any jurisdiction where the offer or sale is not permitted. This Prospectus constitutes a public offering of the Securities only in those jurisdictions where they may be lawfully offered for sale and only by persons permitted to sell the Securities in such jurisdiction.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE "SEC") NOR HAS THE SECURITIES COMMISSION OF ANY STATE OF THE UNITED STATES OR ANY CANADIAN SECURITIES REGULATOR APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

DEPOSITARY SHARES WILL NOT BE OFFERED OR SOLD IN CANADA.

No underwriter has been involved in the preparation of this Prospectus or performed any review of the contents of this Prospectus.

The Company is not making and will not make an offer of these Securities in any jurisdiction where the offer or sale is not permitted. This Prospectus constitutes a public offering of the Securities only in those jurisdictions where they may be lawfully offered for sale and only by persons permitted to sell the Securities in such jurisdiction.

All applicable information permitted under securities legislation to be omitted from this Prospectus that has been so omitted will be contained in one or more Prospectus Supplements that will be delivered to purchasers together with this Prospectus, except in cases where an exemption from such delivery requirements is available. Each Prospectus Supplement will be incorporated by reference into this Prospectus for the purposes of securities legislation as of the date of the Prospectus Supplement and only for the purposes of the distribution of the securities to which the Prospectus Supplement pertains. You should read this Prospectus and any applicable Prospectus Supplement carefully before you invest in any securities issued pursuant to this Prospectus. The Securities may be sold pursuant to this Prospectus through underwriters or dealers or directly or through agents designated from time to time at amounts and prices and other terms determined by us.

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The Securities may be sold from time to time in one or more transactions at a fixed price or prices which may be changed or at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. The price at which the Securities will be offered and sold may vary from purchaser to purchaser and during the period of distribution. The Securities may be sold pursuant to this Prospectus through underwriters or dealers or directly or through agents designated from time to time at amounts and prices and other terms determined by us. This Prospectus may qualify an "at-the-market distribution" as defined in National Instrument 44-102 — *Shelf Distributions.* A Prospectus Supplement will set out the names of any underwriters, dealers or agents involved in the sale of Securities, the amounts, if any, to be purchased by underwriters, the plan of distribution for such Securities, including the net proceeds we expect to receive from the sale of such securities, if any, the amounts and prices at which such Securities are sold and the compensation of such underwriters, dealers or agents. See "*Plan of Distribution*" for more information.

Investment in the Securities being offered is highly speculative and involves significant risks that prospective investors should consider before purchasing such Securities. Prospective investors should carefully review the risks outlined in this Prospectus (including any Prospectus Supplement) and in the documents incorporated by reference as well as the information under the heading "*Cautionary Note Regarding Forward-Looking and Other Statements*" and consider such risks and information in connection with an investment in the Securities. See "*Risk Factors*" for a more complete discussion of these risks.

The specific terms of any Securities offered will be described in a Prospectus Supplement, including, where applicable: (i) in the case of Common Shares, the number of Common Shares offered, the offering price (in the event the offering is a fixed price distribution), the manner of determining the offering price(s) (in the event the offering is a non-fixed price distribution) and any other specific terms; (ii) in the case of Warrants, the number of Warrants being offered, the offering price (in the event the offering is a fixed price distribution), the manner of determining the offering price(s) (in the event the offering is a non-fixed price distribution), the designation, number and terms of the other Securities purchasable upon exercise of the Warrants, and any procedures that will result in the adjustment of those numbers, the exercise price, the dates and periods of exercise and any other specific terms; (iii) in the case of Units, the number of Units offered, the offering price, the designation, number and terms of the other Securities comprising the Units, and any other specific terms; (iv) in the case of Subscription Receipts, the number of Subscription Receipts being offered, the offering price (in the event the offering is a fixed price distribution), the manner of determining the offering price(s) (in the event the offering is a non-fixed price distribution), the terms, conditions and procedures for the conversion of the Subscription Receipts into other Securities, the designation, number and terms of such other Securities, and any other specific terms; and (v) in the case of Common Shares represented by Depositary Shares, the number of Depositary Shares being offered, the number of Common Shares underlying each Depositary Share, the offering price and currency of the Depositary Shares, the name of the depositary, and the terms and details of the deposit agreement under which the Depositary Shares would be issued; and (vi) in the case of Debt Securities, the designation of the Debt Securities, the aggregate principal amount of the Debt Securities being offered, the currency or currency unit in which the Debt Securities may be purchased, authorized denominations, whether payment on the Debt Securities will be senior or subordinated to the Company's other liabilities and obligations, the nature and priority of any security for the Debt Securities, any limit on the aggregate principal amount of the Debt Securities of the series being offered, the issue and delivery date, the maturity date, the offering price (at par, discount or at a premium), the interest rate or method of determining the interest rate, the interest payment date(s), any conversion or exchange rights that are attached to the Debt Securities, any redemption provisions, any repayment provisions, any arrangements with the trustee for the Debt Securities and any other specific terms. A Prospectus Supplement relating to a particular offering of Securities may include terms pertaining to the Securities being offered thereunder that are not within the terms and parameters described in this Prospectus. Investors should rely only on the information contained in or incorporated by reference into this Prospectus and any applicable Prospectus Supplement. We have not authorized anyone to provide investors with different information. Information contained on the Company's website shall not be deemed to be a part of this Prospectus (including any applicable Prospectus Supplement) or incorporated by reference herein and should not be relied upon by prospective investors for the purpose of determining whether to invest in the Securities. Investors should not assume that the information contained in this Prospectus is accurate as of any date other than the date on the face page of this Prospectus, the date of any applicable Prospectus Supplement or the date of any documents incorporated by reference herein.

The Company's head office is located at Suite 1212 – 1030 West Georgia Street, Vancouver, BC V6E 2Y3, and its registered office is located at Suite 2501, 550 Burrard Street, Vancouver, British Columbia, V6C 2B5.

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#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [ABOUT THIS PROSPECTUS](#tATP)  | [1](#tATP) |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#tCNRF)  | [1](#tCNRF) |
|  [CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING TECHNICAL DISCLOSURE](#tCNTU)  | [5](#tCNTU) |
| [ENFORCEABILITY OF CIVIL LIABILITIES UNDER U.S. SECURITIES LAWS](#tEOCL)  | [5](#tEOCL) |
| [WHERE YOU CAN FIND MORE INFORMATION](#tWYCF)  | [5](#tWYCF) |
| [DOCUMENTS INCORPORATED BY REFERENCE](#tDIBR)  | [6](#tDIBR) |
| [SUMMARY DESCRIPTION OF BUSINESS](#tSDOB)  | [7](#tSDOB) |
| [RISK FACTORS](#tRIFA)  | [9](#tRIFA) |
| [CONSOLIDATED CAPITALIZATION](#tCOCA)  | [15](#tCOCA) |
| [USE OF PROCEEDS](#tUOP)  | [15](#tUOP) |
| [PRIOR SALES](#tPRSA)  | [16](#tPRSA) |
| [TRADING PRICE AND VOLUME](#tTPAV)  | [16](#tTPAV) |
| [EARNINGS COVERAGE](#tEACO)  | [16](#tEACO) |
| [DIVIDEND POLICY](#tDIPO)  | [16](#tDIPO) |
| [DESCRIPTION OF SHARE CAPITAL](#tDOSC)  | [16](#tDOSC) |
| [DESCRIPTION OF SECURITIES OFFERED UNDER THIS PROSPECTUS](#tDOSO)  | [17](#tDOSO) |
| [DENOMINATIONS, REGISTRATION AND TRANSFER](#tDRAT)  | [29](#tDRAT) |
| [PLAN OF DISTRIBUTION](#tPOD)  | [30](#tPOD) |
| [CERTAIN INCOME TAX CONSIDERATIONS](#tCITC)  | [31](#tCITC) |
| [AUDITORS, TRANSFER AGENT AND REGISTRAR](#tATAA)  | [31](#tATAA) |
| [EXPERTS](#tEXP)  | [31](#tEXP) |
| [ENFORCEMENT OF JUDGMENTS AGAINST FOREIGN PERSONS OR COMPANIES](#tEJAP)  | [31](#tEJAP) |
| [DOCUMENTS FILED AS PART OF THE REGISTRATION STATEMENT](#tDFAP)  | [31](#tDFAP) |
| [PURCHASERS' CONTRACTUAL RIGHTS OF WITHDRAWAL AND RESCISSION](#tPCRO)  | [32](#tPCRO) |
| [PURCHASERS' STATUTORY RIGHTS OF WITHDRAWAL AND RESCISSION](#tPSRO)  | [32](#tPSRO) |
| [CERTIFICATE OF THE COMPANY](#tCOC)  | [33](#tCOC) |

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#### ABOUT THIS PROSPECTUS
You should rely only on the information contained in or incorporated by reference into this Prospectus. Nicola has not authorized anyone to provide you with different information. Nicola is not making an offer of these Securities in any jurisdiction where the offer is not permitted. You should bear in mind that although the information contained in this Prospectus and any Prospectus Supplement is accurate as of any date on the front of such documents, such information may also be amended, supplemented or updated by the subsequent filing of additional documents deemed by law to be or otherwise incorporated by reference into this Prospectus and by any subsequently filed prospectus amendments.

This Prospectus provides a general description of the Securities that the Company may offer. Each time the Company sells Securities under this Prospectus, it will provide you with a Prospectus Supplement that will contain specific information about the terms of that offering. The Prospectus Supplement may also add, update or change information contained in this Prospectus. Before investing in any Securities, you should read both this Prospectus and any applicable Prospectus Supplement together with additional information described below under "*Documents Incorporated by Reference*" and "*Available Information*".

Unless stated otherwise or the context otherwise requires, all references to dollar amounts in this Prospectus and any Prospectus Supplement are references to Canadian dollars. References to "$", "C$" or "Cdn$" are to Canadian dollars and references to "US$" are to U.S. dollars. The Company's financial statements that are incorporated by reference into this Prospectus and any Prospectus Supplement have been prepared in accordance with IFRS, as issued by the International Accounting Standards Board ("**IASB**").

Unless the context otherwise requires, references in this Prospectus and any Prospectus Supplement to "Nicola", the "Company", "we", "us" or "our" includes Nicola Mining Inc. and each of its material subsidiaries.

#### CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements and other information contained or incorporated by reference in this Prospectus constitute forward-looking information under Canadian securities legislation (collectively, "**forward-looking statements**") including, without limitation, statements containing the words "believe," "may," "plan," "will," "estimate," "continue," "anticipate," "intend," "expect," "predict," "project," "potential," "continue," "ongoing" or the negative or grammatical variations of these terms or other comparable terminology, although not all forward-looking statements contain these words and similar expressions. Forward-looking statements are necessarily based on estimates and assumptions made by the Company in light of the Company's experience and perception of historical trends, current conditions and expected future developments, as well as the factors we believe are appropriate. Such forward-looking statements include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • analyses and other information based on expectations of future performance and planned work programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the capacity and operation of the Company's mill, including the amount and quality of the mill feed provided by the Company's customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • timing, costs and potential success of future activities on the Company's properties, including but not limited to exploration and development costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • potential results of exploration, development and environmental protection and remediation activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • future outlook and goals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • permitting timelines and requirements, regulatory and legal changes, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • planned expenditures and budgets and the execution thereof.

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Statements concerning mineral resource and mineral reserve estimates may also be deemed to constitute forward-looking information to the extent that such statements involve estimates of the mineralization that may be encountered if a property is developed.

By their very nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information including, but not limited to the following risks and uncertainties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • global financial markets can have a profound impact on the global economy in general and on the mining industry in particular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • metals prices have fluctuated widely in the past and are expected to continue to do so in the future, which may adversely affect the amount of revenues derived from the Company's milling operations and the future production of any minerals from its properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • volatility in the worldwide economy may affect the price of the Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • resource exploration and development is a high risk and speculative business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • mineral exploration and development activities are subject to geologic uncertainty and inherent variability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company's future exploration efforts may be unsuccessful;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • risks related to First Nation rights and title;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the quantification of mineral resources and mineral reserves is based on estimates and is subject to great uncertainty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • estimating mineral resources in deposits is risky and no assurances can be given that historical mineral resource estimates reported by prior owners will be replicated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company's mineral resource and mineral reserve estimates may not be indicative of the actual ore that can be mined at a profit or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • risks relating to the Technical Report (as defined below) being based in part on historical data compiled by previous parties involved with the New Craigmont Project (as defined below), including the historical mineral resource estimate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • mineral exploration and development is subject to numerous industry operating hazards and risks, many of which are beyond the Company's control and any one of which may have an adverse effect on its financial condition and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • mineral exploration and development in Canada is subject to numerous regulatory requirements on land use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the success of the Company is dependent to a significant degree on the successful exploration and development of the Company's mineral projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • substantial capital expenditures will be required to develop the New Craigmont Project if a commercial deposit is defined;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company's milling operations are subject to a variety of operational, technical, environmental and regulatory risks that could materially affect production levels, costs and profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the success of the Company is dependent on management experience and key personnel and employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company may be adversely affected by fluctuations in currency exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • current high rates of inflation make the estimation of capital and operating costs challenging and will affect the potential economics of the New Craigmont Project, and no assurance can be given that an economic project will be defined in future studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company is subject to numerous government regulations which could cause delays in carrying out its operations, and increase costs related to its business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company's current and future permits to conduct activities at the New Craigmont Project could be challenged during regulatory processes or in the courts by third parties and such challenges may delay or prevent the Company from meeting its objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company is subject to environmental risks and other risks associated with changing environmental legislation and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • title to mining properties may be challenged or impugned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company is subject to risks related to regulation of the industry in which it operates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • milling and mining operations are risky and hazardous and the Company's insurance may be inadequate or the Company may be unable to obtain insurance for certain risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company's activities are subject to environmental liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company may become subject to costly legal proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in order to conduct field programs, the Company requires agreements in respect of surface rights and it may not be able to, or may have challenges extending the existing agreements for surface rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • conflicts may arise with local communities that may restrict or limit access to the Company's properties and impede its ability to advance the New Craigmont Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • there are risks related to climate change legislation that may affect the ability to develop and/or the viability of any project defined at the New Craigmont Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • investors may lose their entire investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in tax regulations may have a negative effect on the Company's results or the viability of any project defined at the New Craigmont Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company's ability to explore and, if warranted, develop its mineral claims may be impacted by litigation or consent decrees entered into by previous owners of mineral rights that now comprise the New Craigmont Project, related to disturbance related to past mining and exploration activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company's ability to continue to operate its mill and conduct milling operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company has experienced negative cash flow since incorporation and may continue experiencing negative cash flow for the foreseeable future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company may not be able to obtain additional funding and continue as a going concern or the terms of such capital may not be attractive to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • future acquisitions may require significant expenditures or dilutions and may result in inadequate returns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • dilution from equity financing could negatively impact holders of the Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company has no intention to pay dividends for the foreseeable future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • risk of a reduction in the price of the Common Shares due to global financial conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • equity securities are subject to volatility risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • risks related to the Company's ability to maintain its listing on the TSX Venture Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the failure of any financial institutions at which the Company maintains cash and cash equivalents may result in delays or a complete inability to access uninsured funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • internal controls cannot provide absolute assurance with respect to the reliability of financial reporting and financial statement preparation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • difficulty enforcing judgments and effecting service of process on directors residing outside Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company may be held responsible for violations of anti-corruption and anti-bribery legislation by its employees, contractors or consultants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the New Craigmont Project does not have a history of commercial mining operations, revenues, earnings or dividends.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the mining industry is intensely competitive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company faces substantial competition within the mining industry from other mineral companies with much greater financial and technical resources and the Company may not be able to effectively compete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company expects to continue to incur losses and may never achieve profitability, which in turn may harm the future operating performance and may cause the market price of the Common Shares to decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Company depends on key personnel for critical management decisions and industry contacts but does not maintain key person insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • certain the Company directors also serve as officers and/or directors of other mineral resource companies, which may give rise to conflicts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • conflicts of interest may arise due to an officer and director of the Company holding a significant percentage of the Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the directors and officers may have conflicts of interests with the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • potential for a new public health crisis and other public health risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • dependence on information technology systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a cyber-security incident could adversely affect the Company's ability to operate its business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the other risk factors set out in the Company's annual information form dated September 22, 2025, a copy of which has been filed on SEDAR at www.sedar.com.

Forward-looking statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements in this Prospectus and the documents incorporated by reference, the Company has applied several material assumptions, including, but not limited to: that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies will be consistent with the Company's expectations; that the current exploration, development, environmental and other objectives concerning the Company's New Craigmont Project (the "**Project**" or "**New Craigmont Project**") can be achieved; that the Company's other corporate activities will proceed as expected; that the Company's milling operations will continue as projected; that the Company will continue to have other mining Companies providing mill feed; that the current price and demand for copper, gold and other metals will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned exploration, development and environmental protection activities on the Project will be obtained in a timely manner and on acceptable terms.

Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in this Prospectus under the heading "*Risk Factors*" and in the AIF (as defined herein) and the Company's Annual MD&A (as defined herein), each under the heading "Risks and Uncertainties". In addition, although the Company has attempted to identify important factors that could cause actual achievements, events or conditions to differ materially from those identified in the forward-looking statements, there may be other factors that cause achievements, events or conditions not to be as anticipated, estimated or intended. Many of the foregoing factors are beyond the Company's ability to control or predict.

Any forward-looking statements contained herein are based on the beliefs, expectations and opinions of management on the date the statements are made, and such beliefs, expectations and opinions are subject to change after such date. The Company does not assume any obligation to update forward-looking statements, except as required by applicable securities laws, if circumstances or management's beliefs, expectations or opinions should change. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

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#### CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING TECHNICAL DISCLOSURE
Disclosure about our exploration properties in this Prospectus uses certain terms, including the term "Mineral Resources", which are Canadian geological and mining terms as defined in accordance with National Instrument 43-101- *Standards of Disclosure for Mineral Projects* ("**NI 43-101**") of the Canadian Securities Administrators, set out in the Canadian Institute of Mining (CIM) Standards.

This Prospectus has been prepared in accordance with the requirements of the securities laws in effect in Canada as of the date of this Prospectus, which differ in certain material respects from the disclosure requirements of United States securities laws. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The definitions of these terms differ from the definitions of such terms for purposes of the disclosure requirements under United States securities laws.

Accordingly, information contained and incorporated by reference into this Prospectus that describes the Company's mineral deposits or mineral resources may not be comparable to similar information made public by issuers subject to the reporting and disclosure requirements applicable to domestic United States issuers under United States securities laws.

#### ENFORCEABILITY OF CIVIL LIABILITIES UNDER U.S. SECURITIES LAWS
The Company is a corporation incorporated under and governed by the *Business Corporations Act* (British Columbia). Most of its directors and officers reside outside of the United States, and a substantial portion of the Company's assets and all or a substantial portion of the assets of these persons is located outside the United States. The Company has appointed an agent for service of process in the United States; however it may nevertheless be difficult for investors who reside in the United States to effect service of process in the United States upon the Company or any such persons, or to enforce a U.S. court judgment predicated upon the civil liability provisions of the U.S. federal securities laws against the Company or any such persons. There is substantial doubt whether an action could be brought in Canada in the first instance predicated solely upon U.S. federal securities laws.

The Company filed with the SEC, concurrently with the Registration Statement (as defined below), an appointment of agent for service of process on Form F-X. Under the Form F-X, the Company appointed Cogency Global Inc., with an address at 122 East 42nd Street, 18th Floor, New York, New York 10168, USA, as its agent for service of process in the United States in connection with any investigation or administrative proceeding conducted by the SEC and any civil suit or action brought against or involving us in a U.S. court arising out of or related to or concerning the offering of Securities under this Prospectus.

#### WHERE YOU CAN FIND MORE INFORMATION
The Company files certain reports with, and furnishes other information to, each of the SEC and certain securities regulatory authorities of Canada. Under a multijurisdictional disclosure system adopted by the United States and Canada, such reports and other information may be prepared in accordance with the disclosure requirements of the provincial and territorial securities regulatory authorities of Canada, which requirements are different from those of the United States. As a foreign private issuer, the Company is exempt from the rules under the United States *Securities Exchange Act of 1934*, as amended (the "**Exchange Act**") prescribing the furnishing and content of proxy statements, and the Company's officers and directors are exempt from the reporting and short swing profit recovery provisions contained in Section 16 of the Exchange Act. The Company's reports and other information filed or furnished with or to the SEC are available from the SEC's Electronic Data Gathering and Retrieval System ("**EDGAR**") at www.sec.gov. The Company's Canadian filings are available on SEDAR+ at www.sedarplus.ca.

The Company has filed with the SEC under the United States Securities Act of 1933, as amended the Registration Statement relating to the Securities being offered hereunder, of which this Prospectus forms a part. This Prospectus does not contain all of the information set forth in the Registration Statement, certain items of which are contained in the exhibits to the Registration Statement as permitted or required by the

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rules and regulations of the SEC. Items of information omitted from this Prospectus but contained in the Registration Statement will be available on the SEC's website at www.sec.gov.

#### DOCUMENTS INCORPORATED BY REFERENCE
Information has been incorporated by reference in this Prospectus from documents filed with securities commissions or similar authorities in British Columbia, Alberta and Ontario (the "**Commissions**"). Copies of the documents incorporated herein by reference may be obtained on request without charge from the Company at Suite 1212 – 1030 West Georgia Street, Vancouver, BC V6E 2Y3, or by telephone at 778.385.1213 and are also available electronically at www.sedarplus.ca. Documents filed with, or furnished to, the SEC are available through the EDGAR at www.sec.gov.

The following documents of the Company, which have been filed with the Commissions, are specifically incorporated by reference into, and form an integral part of, this Prospectus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)

the management information circular of the Company dated June 10, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)

the annual information form of the Company dated September 22, 2025 for the year ended December 31, 2024 (the "**AIF**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)

the amended and restated audited consolidated financial statements of the Company for the years ended December 31, 2024 and 2023, together with the notes thereto and the independent auditor's report thereon (the "**Annual Financial Statements**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)

the amended and restated management's discussion and analysis of the results of operations and financial condition of the Company for the years ended December 31, 2024 and 2023 (the "**Annual MD&A**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)

the amended and restated interim consolidated financial statements for the three and nine months ended September 30, 2025 and 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f)

the amended and restated management's discussion and analysis of the results of operations and financial condition of the Company for the nine months ended September 30, 2025 and 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g)

the material change report dated January 14, 2025 relating to the settlement of interest owning on certain outstanding secured convertible debentures of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h)

the material change report dated March 13, 2025 relating to the receipt of a final permit to complete a bulk sample at its Dominion Creek Mineral Property and the closing of a non-brokered private placement for gross proceeds of $1,067,080;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)

the material change report dated July 23, 2025 relating to the closing of a non-brokered private placement for gross proceeds of $2,175,000 and the acceleration of the expiry date for certain outstanding warrants of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (j)

the material change report dated September 25, 2025 relating to the conversion of $3,900,000 convertible debentures and $312,000 in accrued interest into Common Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (k)

the material change report dated October 9, 2025 related to an engagement with Atrium Research Corporation.

 **Any annual information form, material change reports (excluding confidential material change reports), any interim and annual consolidated financial statements and related management discussion and analysis, information circulars (excluding those portions that, pursuant to National Instrument 44-101 of the Canadian Securities Administrators, are not required to be incorporated by reference herein), any business acquisition reports, any news releases or public communications containing financial information about the Company for a financial period more recent than the periods for which financial statements are incorporated herein by reference, and any other disclosure documents required to be filed pursuant to an undertaking to a provincial or territorial securities regulatory authority that are filed by the Company with various securities commissions or similar authorities in Canada after the date of this Prospectus and prior to the termination of this offering under any Prospectus Supplement, shall be deemed to be incorporated by reference in this Prospectus. In addition, all** 

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 **documents filed on Form 6-K, Form 20-F or Form 40-F by the Company with the SEC on or after the date of this Prospectus shall be deemed to be incorporated by reference into the registration statement on Form F-10 (the "Registration Statement") of which this Prospectus forms a part, if and to the extent, in the case of any Report on Form 6-K, expressly provided in such document.** 

 **Any statement contained in this Prospectus or in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Prospectus to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. The modifying or superseding statement need not state that it has modified or superseded a prior statement or include any other information set forth in the document it modifies or supersedes. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation, an untrue statement of a material fact or an omission to state a material fact that is required to be stated or that is necessary to make a statement not misleading in light of the circumstances in which it was made. Any statement so modified or superseded shall not constitute a part of this Prospectus, except as so modified or superseded.** 

A Prospectus Supplement containing the specific terms of an offering of Securities, updated disclosure of earnings coverage ratios, if applicable, and other information relating to the Securities, will be delivered to prospective purchasers of such Securities together with this Prospectus and the applicable Prospectus Supplement and will be deemed to be incorporated into this Prospectus as of the date of such Prospectus Supplement only for the purpose of the offering of the Securities covered by that Prospectus Supplement.

Upon a new annual information form and the related annual financial statements being filed by the Company with, and, where required, accepted by, the applicable securities commissions or similar regulatory authorities during the currency of this Prospectus, the previous annual information form, the previous annual financial statements and all quarterly financial statements, material change reports and information circulars filed prior to the commencement of the Company's financial year in which the new annual information form is filed shall be deemed no longer to be incorporated into this Prospectus for purposes of further offers and sales of securities hereunder.

References to the Company's website in any documents that are incorporated by reference into this Prospectus do not incorporate by reference the information on such website into this Prospectus, and the Company disclaims any such incorporation by reference.

Any "template version" of "marketing materials" (as those terms are defined in National Instrument 41-101 — *General Prospectus Requirements*) pertaining to a distribution of Securities filed after the date of a Prospectus Supplement and before termination of the distribution of Securities offered pursuant to such Prospectus Supplement will be deemed to be incorporated by reference into the Prospectus Supplement for the purposes of the distribution of the Securities to which the Prospectus Supplement pertains.

A Prospectus Supplement containing the specific terms of an offering of Securities and other information in relation to the Securities will be delivered to prospective purchasers of such Securities together with this Prospectus and shall be deemed to be incorporated by reference into this Prospectus as of the date of such Prospectus Supplement but only for the purposes of the offering of the Securities covered by that Prospectus Supplement.

#### SUMMARY DESCRIPTION OF BUSINESS

#### General
Nicola is a junior resource company engaged in two principal business segments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.

mineral exploration and development; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.

custom milling operations.

These segments are considered reportable under IFRS as they represent distinct revenue-generating activities with separate operational and financial characteristics.

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<u>Mineral Exploration and Development</u> 

The mineral exploration and development segment encompasses Nicola's efforts to identify, acquire and advance mineral properties in British Columbia. The Company's principal exploration assets include the New Craigmont Project, the Treasure Mountain Project, and the Dominion Creek Gold Property. These projects are all in the exploration or pre-commercial development stage and have not yet reached commercial production and are further described below.

 *New Craigmont Project* 

The New Craigmont Project, a historic copper mine site near Merritt, British Columbia, is the Company's flagship asset. It is permitted under Mine Permit M-68 and has been the focus of extensive geophysical surveys, soil sampling and diamond drilling. A mineral resource estimate was completed in 2020 for the Southern Mining Terraces and 3060 Portal Dump areas.

 *Treasure Mountain Project* 

The Treasure Mountain Project, located near Hope, British Columbia, is permitted for the removal of up to 60,000 tonnes of silver/lead/zinc mill feed annually but remains in care and maintenance. In June of 2025, the Company received a multi-year area-based exploration permit which allows for five years of exploration and plans to commence exploration at the MB Zone.

 *Dominion Creek Gold Property* 

The Dominion Creek Gold Property, in which Nicola holds a 50% interest and a 75% economic benefit through a profit-sharing agreement, received its bulk sample permit in March 2025. Nicola and its partner, High Range Exploration Ltd., are preparing for potential mining and milling activities in the current year.

The Company conducts its own exploration activities, including geological mapping, drilling, and geophysical surveys while subcontracting specialized services such as LiDAR and assay testing. The projects are not yet at the commercial production stage, and no sales have been made from these properties. The next steps toward commercialization include further drilling, resource definition and economic assessments. The Company has not disclosed specific cost estimates or timelines for achieving commercial production.

<u>Custom Milling Operations</u> 

The custom milling operations segment is centred around the Merritt Mill, a fully permitted and operational facility located near Merritt, British Columbia. The mill is licensed to process up to 200 tonnes per day of silver, lead and gold ore. Nicola provides toll milling services to third-party mining companies, producing concentrate that is sold to offtake partners such as Ocean Partners UK. In 2024, the Company generated $818,000 in milling revenue and $1.97 million from gravel, ash, soil and other income. This compares to $1.62 million and $8.15 million, respectively, in 2023. All revenue was derived from sales to external customers; there were no sales to joint ventures, equity-accounted entities or controlling shareholders. The method of providing milling services involves receiving ore shipments from clients, processing the ore through crushing, grinding and flotation circuits at the Merritt Mill, and producing gold and silver concentrate. The concentrate is then shipped to offtake partners for sale. The Company also provides ancillary services such as storage, logistics coordination, and compliance with environmental and safety regulations.

The Merritt Mill has processed ore from clients including Blue Lagoon Resources Inc., Talisker Resources Ltd. and Osisko Mining Inc. under profit-sharing agreements. The facility underwent upgrades in 2023 and 2024 to support increased throughput and quality control. The Company continues to seek new custom milling contracts to support its cash flow and maintain operational flexibility.

#### Recent Developments
 *New Craigmont Technical Report* 

On June 1, 2020, the Company filed the technical report titled "*NI 43-101 Technical Report on the Preliminary Copper Resource for the Southern Dump and 3060 Portal Dumps*" dated May 21, 2020 prepared by

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Kevin Wells, P. Geo. and James N Gray, P. Geo. (the "**Technical Report**") in support of the technical disclosure regarding the New Craigmont Project contained in the AIF.

#### RISK FACTORS
 *An investment in any securities of the Company is speculative and involves a high degree of risk due to the nature of Nicola's business and the present stage of development of its mineral properties and the operation of its custom milling operations. The following risk factors, as well as risks not currently known to the Company, could materially adversely affect the Company's future business, financial condition, results of operations and prospects and could cause them to differ materially from the forward-looking statements relating to the Company. Before deciding to invest in any securities, investors should consider carefully the risk factors set out below, those contained in the section entitled "Cautionary Note Regarding Forward-Looking Statements" above, those contained in the documents incorporated by reference in this Prospectus and those described in any Prospectus Supplement, including those described in the Company's historical consolidated financial statements, the related notes thereto and the Company's AIF.* 

 *The following risk factors, as well as risks listed in the documents incorporated herein by reference and risks not currently known to the Company or that the Company currently deems to be immaterial, could materially adversely affect the Company's future business, financial condition, results of operations earnings and prospects and could cause them to differ materially from the forward-looking statements relating to the Company. While the significant risk factors which the Company believes it faces are discussed below, they do not comprise a definitive list of all risk factors related to the Company's business and operations.* 

#### Exploration and Development
The figures for Inferred Copper Resource for the Southern Dump and 3060 Portal Dumps at New Craigmont Project in the Technical Report and final ALS Metallurgy Laboratory report for upgrading and copper recovery test work filed on SEDAR on June 12, 2020, are only estimates. The inferred mineral resources are not mineral reserves as the Company has not yet demonstrated the economic viability. There is no certainty that any expenditures made in the exploration of the Company's mineral properties will result in identification of commercially recoverable quantities of ore or that ore reserves will be mined or processed profitably. In addition, substantial expenditures will be required to develop the mining and processing facilities and infrastructure at any site chosen for mining.

Mineral exploration and development involves a high degree of risk which even a combination of experience, knowledge and careful evaluation may not be able to mitigate. The vast majority of properties which are explored are not ultimately developed into producing mines. There is no assurance that the Company's mineral exploration and development activities will result in any discoveries of commercial bodies of ore. The long-term profitability of the Company's operations is in part directly related to the cost and success of the Company's exploration programs, which may be affected by a number of factors.

#### Fluctuating Mineral Prices
The mining industry is heavily dependent upon the market price of the applicable metals or minerals being mined or explored for. There is no assurance that, even if commercial quantities of mineral resources are discovered, a profitable market will exist for their sale. There can be no assurance that mineral prices will be such that the New Craigmont Project or any of the Company's mineral properties can be mined at a profit. The prices of base and precious metals have experienced volatile and significant price movements over short periods of time, particularly in recent years, and are affected by numerous factors beyond the Company's control. Factors beyond the control of the Company may also affect the marketability of minerals or concentrates produced, including quality issues, impurities, deleterious elements, government regulations, royalties, allowable production and regulations regarding the importing and exporting of minerals, the effect of certain of which cannot be accurately predicted.

The price of metals or minerals will have a direct impact on the Company's financial performance and the commercial viability of the Company's mineral assets. Demand and industrial consumption of metals or minerals may be negatively impacted by the volatility of the global economy, economic slowdowns, inflation, supply chain disruptions, economic conditions in the main consuming countries, changes in technology

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affecting demand for these metals, international economic and political trends, fluctuations in the U.S. dollar and other currencies and changes in interest rates.

#### Estimates of Mineral Deposits
No assurance can be given that any identified mineralization will be developed into a coherent mineral resource, or that such resource will even qualify as a commercially viable mineral reserve that can be legally and economically exploited. Estimates regarding mineral resources can also be affected by many factors such as permitting regulations and requirements, weather, environmental factors, unforeseen technical difficulties, unusual or unexpected geological formations and work interruptions. In addition, the grades and tonnages of any mineral reserve ultimately mined may differ from that indicated by drilling results and other exploration and development work. There can be no assurance that test work and results conducted and recovered in small-scale laboratory tests will be duplicated in large-scale tests under on-site conditions. Material changes in mineralized tonnages, grades, dilution and stripping ratios or recovery rates may affect the economic viability of mineral projects. The existence of mineralization or mineral resources should not be interpreted as assurances of the future delineation of mineral reserves or the profitability of any future operations.

#### Substantial Capital Expenditures Required
The exploration, development and mining of our mining properties is capital intensive. Substantial expenditures are required to establish mineral reserves and mineral resources through drilling, to develop metallurgical processes to extract metal from the ore and, in the case of new properties, to develop the mining and processing facilities and infrastructure at any site chosen for mining. Actual capital costs may differ significantly from those the Company has anticipated and there are no assurances that any future development activities will result in profitable mining operations. The capital costs required to take our projects into future commercial production may be significantly higher than anticipated. Decisions about the development of our projects will ultimately be based upon feasibility studies. Capital costs and other estimates contained in studies or estimates prepared by or for the Company may differ significantly from those anticipated by the Company's current studies and estimates, and there can be no assurance that the Company's actual capital costs will not be higher than currently anticipated. As a result of higher capital costs, production and economic returns may differ significantly from those the Company has anticipated.

Although substantial benefits may be derived from the discovery of a major mineral deposit, no assurance can be given that minerals will be discovered in sufficient quantities to justify commercial operations or that the funds required for development can be obtained on a timely basis, or at all. The discovery of a mineral deposit is dependent upon a number of factors. The commercial viability of a mineral deposit, if and when discovered, is also dependent upon a number of factors, some of which relate to particular attributes of the deposit, such as size, grade and proximity to infrastructure, and some of which are more general factors such as metal prices and government regulations, including environmental protection. Most of these factors are beyond the Company's control. In addition, because of these risks, there is no certainty that the expenditures to be made by the Company on the proposed exploration of the New Craigmont Project or any of the Company's mineral projects as described herein will result in the discovery of a commercially viable mineral reserve.

#### Risks Related to Milling Operations
The Company's milling operations are subject to a variety of operational, technical, environmental and regulatory risks that could materially affect production levels, costs and profitability. Milling involves the processing of ore into concentrates or doré, and performance depends on consistent ore quality, reliable equipment performance and adherence to process specifications. Variability in mill feed — such as changes in ore hardness, mineral composition or moisture content — can reduce recovery rates and increase processing costs. Mechanical failures, unplanned maintenance or extended shutdowns of milling equipment could result in production delays or loss of revenue. Additionally, milling of ores containing silver, gold and lead generates tailings and emissions that must be managed in compliance with environmental regulations; any failure to meet these requirements could result in fines, remediation costs or the suspension of operations. External factors such as fluctuations in power supply, availability and cost of consumables (e.g., grinding media,

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reagents) and skilled labor shortages may further disrupt milling operations. Collectively, these risks could adversely impact the Company's operating results, financial condition, and ability to meet production targets.

#### Management Experience and Dependence on Key Personnel and Employees
The Company's success is currently largely dependent on the performance of the Company's directors and officers. The Company's management team has experience in the resource exploration and custom milling business. The experience of these individuals is a factor which will contribute to the Company's continued success and growth. The Company relies on the Company's board of directors (the "**Board**"), as well as independent consultants, for certain aspects of the Company's business. The amount of time and expertise expended on the Company's affairs by each of the Company's management team and the Company's directors will vary according to the Company's needs. Investors who are not prepared to rely on the Company's management team and Board should not invest in the Company's securities.

#### Environmental Risks and Other Regulatory Requirements
The Company's current and future operations, including its milling operations and exploration and development activities and future commencement of production at the New Craigmont Project, require permits from various federal and local governmental authorities, and such operations are and will be governed by laws and regulations governing prospecting, development, mining, production, taxes, labour standards, occupational health, waste disposal, toxic substances, land use, environmental protection, mine safety and other matters. Certain permits require periodic renewal or review of the conditions. The Company cannot predict whether it will be able to obtain or renew such permits or whether material changes in the permit conditions will be imposed. The inability to obtain or renew permits, or the imposition of additional conditions, could have a material adverse effect on the Company's ability to continue its milling operations and to develop or operate the New Craigmont Project and the Company's other mineral properties.

Environmental laws and regulations to which the Company is subject as it progresses from an exploration stage to an operation stage mandate additional concerns and requirements. Failure to comply with applicable environmental laws, regulations and permits can result in injunctive actions, damages and civil and criminal penalties. The laws and regulations applicable to the Company's activities may change frequently and it is not possible to predict the potential impact on the Company from any such future changes.

Environmental hazards may exist at the Company's mineral properties which are unknown to the Company at present and which have been caused by previous owners or operators. To the extent the Company is subject to environmental liabilities, the payment of any liabilities or the costs that may be incurred to remedy environmental impacts would reduce funds otherwise available for operations.

#### Title Matters
While the Company has reviewed title to its mineral properties and, to the best of the Company's knowledge, each of such title is in good standing, there is no guarantee that title to such mineral properties will not be challenged or impugned. The Company's mineral properties may be subject to prior unregistered agreements of transfer, and title for lands comprising such properties may be affected by undetected defects.

#### First Nation Rights and Title
The nature and extent of First Nation rights and title remains the subject of active debate, claims and litigation in Canada, including in British Columbia and including with respect to intergovernmental relations between First Nation authorities and federal, provincial and territorial authorities. There can be no guarantee that such claims will not cause permitting delays, unexpected interruptions or additional costs for the Company's projects. These risks may have increased after the Supreme Court of Canada decision of June 26, 2014 in *Tsilhqot'in Nation v. British Columbia*. However, the risk to the Company's milling operation as a result of the *Tsilhqot'in Nation v. British Columbia* decision is mitigated because the mill facility is uniquely constructed on freehold land that is owned by the Nicola and classified as Class 5 (Light Industry) in the Province of British Columbia.

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#### Industry Regulation
The principal operations of the Company are exposed to various levels of political, economic and other risks and uncertainties. These risks and uncertainties include, but are not limited to: extreme fluctuations in currency exchange rates; high rates of inflation; labour unrest; the risks of war or civil unrest; expropriation and nationalization; renegotiation or nullification of existing concessions, licences, permits and contracts; illegal mining; changes in taxation policies; restrictions on foreign exchange and repatriation; and changing political conditions, currency controls and governmental regulations that favour or require the awarding of contracts to local contractors or require foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction.

Changes, if any, in mining or investment policies or shifts in political attitude in Canada may adversely affect the operations or profitability of the Company. Operations may be affected in varying degrees by government regulations with respect to, but not limited to, restrictions on production, price controls, export controls, currency remittance, income taxes, expropriation of property, foreign investment, maintenance of claims, environmental legislation, land use, land claims of local people, water use and mine safety.

Failure to strictly comply with applicable laws, regulations and local practices relating to mineral right applications and tenure, could result in loss, reduction or expropriation of entitlements, or the imposition of additional local or foreign parties as joint venture partners with carried or other interests.

Government approvals and permits are currently, and may in the future be, required in connection with the Company's mineral projects. To the extent such approvals are required and not obtained, the Company may be restricted or prohibited from proceeding with planned exploration or development activities.

Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. Parties engaged in mining operations may be required to compensate those suffering loss or damage by reason of the mining activities and may be liable for civil or criminal fines or penalties imposed for violations of applicable laws or regulations. Amendments to current laws, regulations and permitting requirements, or more stringent application of existing laws, could have a material adverse impact on the Company and cause increases in capital expenditures or future production costs or reductions in levels of future production or require abandonment or delays in development.

#### Operating Hazards and Uninsured or Uninsurable Risks
Mineral exploration and development involve risks, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. Operations in which the Company has a direct or indirect interest will be subject to hazards and risks normally incidental to exploration, development and production of minerals, any of which could result in work stoppages, delays to exploration activities on the Company's mineral properties, damage to or destruction of property, destruction of the value of the Company's mineral properties, loss of life and environmental damage. In addition, the Company may become subject to liability for cave-ins, pollution or other hazards against which the Company cannot insure or against which the Company may elect not to insure because of high premium costs or for other reasons. The nature of these risks is such that liabilities might exceed any insurance policy limits and the payment of any such liabilities would reduce or eliminate the funds available for exploration and mining activities. Payments of liabilities for which the Company does not carry insurance may have a materially adverse effect upon the Company's business, financial condition and prospects.

#### Risks Inherent in Legal Proceedings
In the course of its business, the Company may from time to time become involved in various regulatory investigations, claims, arbitration and other legal proceedings, with and without merit, in the ordinary course of its business. The nature and results of any such proceedings cannot be predicted with certainty. Any potential future claims, investigations and proceedings are likely to be of a material nature. In addition, such regulatory investigations, claims, arbitration and other legal proceedings can be lengthy and involve the

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incurrence of substantial costs and resources by the Company, and the outcome, and the Company's ability to enforce any ruling(s) obtained pursuant to such proceedings, are subject to inherent risk and uncertainty. The initiation, pursuit and/or outcome of any particular claim, investigation, arbitration or legal proceeding could have a material adverse effect on the Company's financial position and results of operations, and on the Company's business, assets and prospects. In addition, if the Company is unable to resolve any existing or future potential disputes and proceedings favorably, or obtain enforcement of any favorable ruling, if any, that may be obtained pursuant to such proceedings, it is likely to have a material adverse impact on the Company's business, financial condition and results of operations and the Company's assets and prospects as well as the Company's share price.

#### Climate Change Legislation
A number of governments have introduced, are moving to introduce, or modifying existing climate change legislation and treaties at the international, national, state/provincial and local levels. Regulation relating to emission levels (such as carbon taxes) and energy efficiency is evolving, and in some cases, becoming more stringent. If the current regulatory trend continues, this may result in increased operational costs as the Company adapts to the changing regulatory landscape. In addition, the physical risks of climate change may also have an adverse effect on the Company's operations. Increased drought frequency and increased length of the dry season in parts of Canada may result in restrictions in the ability to access water for use in the Company's operations while increased severity of precipitation events during the wet season may restrict the Company's ability to execute its work programs in the field for periods of time. There can be no assurance that efforts to mitigate the risks of climate change will be effective and that the physical risks of climate change will not have an adverse effect on the Company's business, financial condition, results of operations, cash flows or prospects.

#### Competition
The mining industry is intensely and increasingly competitive, and the Company competes for exploration and exploitation properties, personnel with the necessary technical expertise to find, develop, and operate such properties and labour to operate the properties. The Company must compete for these resources with many companies possessing greater financial resources and technical facilities than the Company does. Competition in the mining business could adversely affect the Company's ability to acquire suitable producing properties or prospects for mineral exploration in the future.

#### Future Acquisitions
As part of the Company's business strategy, the Company may seek to grow by acquiring companies and/or assets or establishing joint ventures that the Company believes will complement the Company's current or future business. The Company may not effectively select acquisition candidates or negotiate or finance acquisitions or integrate the acquired businesses and their personnel or acquire assets for the Company's business. The Company cannot guarantee that the Company can complete any acquisition the Company pursues on favourable terms, or that any acquisitions completed will ultimately benefit the Company's business.

#### Global Economy Risk
Global financial conditions continue to be characterized as volatile. In recent years, global markets have been adversely impacted by various credit crises and significant fluctuations in fuel and energy costs and metals prices, inflation rates, interest rates and significant fluctuations in commodity prices as a result of the ongoing military conflict between Ukraine and Russia, and the economic sanctions imposed on Russia in connection therewith, as well as conflicts in the Middle East. Many industries, including the mining industry, have been impacted by these market conditions. Global financial conditions remain subject to sudden and rapid destabilizations in response to international events, as government authorities may have limited resources to respond to future crises. A continued or worsened slowdown in the financial markets or other economic conditions, including but not limited to consumer spending, employment rates, business conditions, inflation, supply chain disruptions, sovereign debt crises, fuel and energy costs, economic recession, consumer debt levels, lack of available credit, the state of the financial markets, interest rates and tax rates, may adversely affect the Company's growth and profitability. Future crises may be precipitated by any number of causes,

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including natural disasters, geopolitical instability (such as the Russian invasion of Ukraine), changes to energy prices or sovereign defaults. If increased levels of volatility continue or in the event of a rapid destabilization of global economic conditions, it may result in a material adverse effect on commodity prices, demand for metals, availability of credit, investor confidence, and general financial market liquidity, all of which may adversely affect the Company's business and the market price of the Company's securities.

#### Dividend Risk
The Company has not paid dividends in the past and given the nature and stage of the Company does not anticipate paying dividends in the foreseeable future.

#### Speculative Nature of Investment Risk
An investment in our securities carries a high degree of risk and should be considered as a speculative investment. The Company has a limited history of earnings, limited cash reserves, a limited operating history, has not paid dividends, and is unlikely to pay dividends in the foreseeable future.

#### Going-Concern Risk
The Company's financial statements have been prepared on a going-concern basis under which an entity is considered to be able to realize its assets and satisfy its liabilities in the ordinary course of business. The Company's future operations are dependent upon the identification and successful completion of equity or debt financing and the achievement of profitable operations at an indeterminate time in the future. There can be no assurances that the Company will be successful in completing future equity or debt financing or in achieving profitability. The Company's financial statements do not give effect to any adjustments relating to the carrying values and classification of assets and liabilities that would be necessary should the Company be unable to continue as a going concern.

#### Conflicts of Interest
Certain of the Company's directors and officers are, and may continue to be, involved in the mineral exploration industry through their direct and indirect participation in corporations, partnerships or joint ventures which are potential competitors of the Company. Situations may arise in connection with potential acquisitions or opportunities where the other interests of these directors and officers may conflict with the Company's interests. Directors and officers of the Company with conflicts of interest will be subject to and must follow the procedures set out in applicable corporate and securities legislation, regulations, rules and policies. Notwithstanding this, there may be corporate opportunities which the Company is not able to procure due to a conflict of interest of one or more of the Company's directors or officers.

#### The Company's Operations Depend on Information Technology ("IT") Systems
Information systems and other technologies, including those related to the Company's financial and operational management, and its technical and environmental data, are an integral part of the Company's business activities. These IT systems could be subject to network disruptions caused by a variety of sources, including computer viruses, security breaches and cyberattacks, as well as disruptions resulting from incidents such as cable cuts, damage to physical plants, natural disasters, terrorism, fire, power loss, vandalism and theft. The Company's operations also depend on the timely maintenance, upgrade and replacement of networks, equipment, IT systems and software, as well as pre-emptive expenses to mitigate the risks of failures. Any of these and other events could result in IT system failures, delays or increase in capital expenses. The failure of IT systems or a component of IT systems could, depending on the nature of any such failure, adversely impact the Company's reputation and results of operations. Although to date the Company has not experienced any material losses relating to cyber-attacks or other information security breaches, there can be no assurance that the Company will not incur such losses in the future. The Company's risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect systems, computers, software, data and networks from attack, damage or unauthorized access

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remain a priority. As cyber threats continue to evolve, the Company may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

#### Volatility in the Worldwide Economy
Economic uncertainty in many parts of the world has adversely affected businesses and industries in almost every sector in more significant and unpredictable ways than in more stable economic times. Prolonged depressed economic conditions and volatility in the worldwide economy may continue to adversely affect individuals and institutions investing in junior mineral exploration and development companies, which could negatively affect the Company's business and prospects.

The Company maintains cash and cash equivalents in accounts with major banks, and the Company's deposits at these institutions may, at times, exceed insured limits. Market conditions could materially and adversely impact the viability of these institutions. In the event of failure of any of the financial institutions where the Company maintains its cash and cash equivalents, there can be no assurance that the Company would be able to access uninsured funds in a timely manner or at all. Any inability to access or delay in accessing these funds could have a material adverse affect the Company's business and financial position.

#### CONSOLIDATED CAPITALIZATION
The applicable Prospectus Supplement will describe any material change, and the effect of such material change, on the share and loan capitalization of the Company that will result from the issuance of Securities pursuant to such Prospectus Supplement.

Except as disclosed below, since September 30, 2025, the date of our financial statements for the most recently completed financial period, there have been no material changes in our consolidated share or debt capital.

During the months of October, November and December 2025, an aggregate of 2,275,000 options to purchase Common Shares (each, an "**Option**") were exercised for total proceeds of $638,500, resulting in the issuance of an aggregate of 2,275,000 Common Shares.

On January 29, 2026, the Company issued 5,512,001 units of the Company (each, a "**PP Unit**") at a price of $0.90 per PP Unit for aggregate gross proceeds of $4,960,800.90. Each PP Unit consists of one Common Share and one transferable Common Share purchase warrant (each, a "**PP Warrant**"), with each PP Warrant entitling the holder to acquire one Common Share (each, a "**PP Warrant Share**") at a price of $1.10 per PP Warrant Share for a period of three (3) years from the date of issuance, subject to acceleration in accordance with the terms set forth in the applicable warrant certificate.

#### USE OF PROCEEDS
Unless otherwise specified in a Prospectus Supplement, the net proceeds of any offering of Securities under a Prospectus Supplement will be used for general corporate purposes, including funding potential future acquisitions and capital expenditures and the carrying out exploration and development work on the Company's mineral properties and operations at the Merritt Mill. More detailed information regarding the use of proceeds from a sale of Securities will be included in the applicable Prospectus Supplement.

The management of Nicola will retain broad discretion in allocating the net proceeds of any offering of Securities under this Prospectus and the Company's actual use of the net proceeds will vary depending on its operating and capital needs from time to time.

All expenses relating to an offering of Securities and any compensation paid to underwriters, dealers or agents, as the case may be, will be paid out of the Company's general funds, unless otherwise stated in the applicable Prospectus Supplement.

The Company has incurred negative cash flow from operating activities for its financial year ended December 31, 2024. Accordingly, the majority or all of the net proceeds of any offering of Securities under a Prospectus Supplement will be used to fund the proposed expenditures set out above or in the applicable

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Prospectus Supplement as well as other general working capital and administrative expenses which may cause the Company to continue to experience negative cash flow from its operating activities.

#### PRIOR SALES
Information in respect of the Common Shares that we issued within the previous twelve-month period, including in respect of securities that are convertible or exchangeable into Common Shares, will be provided as required in a prospectus supplement with respect to the issuance of securities pursuant to such prospectus supplement.

#### TRADING PRICE AND VOLUME
The Common Shares are listed and traded on the TSXV under the symbol "NIM", on the Frankfurt Securities Exchange under the symbol "HLI" and on the OTCQB operated by the OTC Markets Group Inc. under the ticker "HUSIF". Trading price and volume information for the Company's securities will be provided as required in each prospectus supplement to this Prospectus.

#### EARNINGS COVERAGE
The applicable Prospectus Supplement will include, as required, earnings coverage ratios with respect to the issuance of such Securities pursuant to such Prospectus Supplement.

#### DIVIDEND POLICY
Nicola has not declared or paid any dividends on its Common Shares since the date of formation. Any decision to pay dividends on Common Shares in the future will be made by the board of directors on the basis of the earnings, financial requirements and other conditions existing at such time.

#### DESCRIPTION OF SHARE CAPITAL

#### Common Shares
The Company's authorized share structure consists of an unlimited number of Common Shares. As of the date hereof, 216,201,381 Common Shares are issued and outstanding.

The holders of Common Shares are entitled to dividends if, as and when declared by the Board. The holders of the Common Shares shall be entitled to vote at all meetings of shareholders of the Company and at all such meetings each such holder has one (1) vote for each Common Share held. Each holder of Common Shares is, upon liquidation, entitled to share equally in such assets of the Company as are distributable to the holders of Common Shares.

In the event of a liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or other distribution of assets or property of the Company amongst its shareholders for the purpose of winding up its affairs, shareholders will be entitled to receive all property and assets of the Company properly distributable to the shareholders.

There are no pre-emptive rights, no conversion or exchange rights, no redemption, retraction, purchase for cancellation or surrender provisions. There are no sinking or purchase fund provisions, no provisions permitting or restricting the issuance of additional securities or any other material restrictions, and there are no provisions which are capable of requiring a security holder to contribute additional capital.

#### Options
As of the date of this Prospectus, there were stock options outstanding to purchase 10,122,500 Common Shares at exercise prices ranging from $0.16 to $1.00 with expiry dates ranging from October 5, 2026 to December 2nd, 2030.

#### Warrants
As of the date of this Prospectus, the Company had no share purchase warrants outstanding.

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#### DESCRIPTION OF SECURITIES OFFERED UNDER THIS PROSPECTUS
The Company may offer Common Shares, Warrants, Debt Securities, Subscription Receipts, Common Shares represented by Depositary Shares or Units comprising any combination of Common Shares, Warrants, Subscription Receipts or Common Shares represented by Depositary Shares, with a total value of up to US$25,000,000 (or the equivalent thereof in Canadian dollars or one or more foreign currencies or composite currencies) from time to time under this Prospectus, together with any applicable Prospectus Supplement, at prices and on terms to be determined by market conditions at the time of offering. This Prospectus provides you with a general description of the Securities the Company may offer. Each time the Company offers Securities, it will provide a Prospectus Supplement that will describe the specific amounts, prices and other important terms of the Securities, including, to the extent applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • designation or classification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • aggregate offering price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • original issue discount, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • rates and times of payment of dividends, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • rates and times of interest payments, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • redemption, conversion or exchange terms, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • conversion or exchange prices, if any, and, if applicable, any provisions for changes to or adjustments in the conversion or exchange prices and in the Securities or other property receivable upon conversion or exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • restrictive covenants, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the terms and conditions of any deposit agreement if Depositary Shares are being offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • voting or other rights, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • important United States and Canadian federal income tax considerations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any other material term or condition of the applicable Securities.

A Prospectus Supplement may also add, update or change information contained in this Prospectus or in documents the Company has incorporated by reference. However, no Prospectus Supplement will offer a Security that is not described in this Prospectus.

#### Description of Common Shares
The Company may offer Common Shares, which the Company may issue independently or together with Warrants or Subscription Receipts, and the Common Shares may be separate from or attached to such securities. All of the Company's Common Shares have equal voting rights, and none of the Common Shares are subject to any further call or assessment. There are no special rights or restrictions of any nature attaching to any of the Common Shares and they all rank *pari passu* each with the other as to all benefits which might accrue to the holders of the Common Shares. The Common Shares are not convertible into shares of any other class and are not redeemable or retractable.

#### Description of Warrants
This section describes the general terms that will apply to any Warrants for the purchase of Depositary Shares, Common Shares, or equity Warrants, or for the purchase of Debt Securities, or debt Warrants. This summary of some of the provisions of the Warrants is not complete. The statements made in this Prospectus relating to any Warrant agreement and Warrants to be issued under this Prospectus are summaries of certain anticipated provisions thereof and do not purport to be complete and are subject to, and are qualified in their entirety by reference to, all provisions of the applicable Warrant agreement. Prospective investors should refer to the Warrant indenture or Warrant agency agreement relating to the specific Warrants being offered for the complete terms of the Warrants. A copy of any Warrant indenture or Warrant agency agreement relating to

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an offering of Warrants will be filed by the Company with the securities regulatory authorities in the applicable Canadian offering jurisdictions after we have entered into it, and will be available electronically on SEDAR+ at www.sedarplus.ca.

Nicola may issue Warrants independently or together with other securities, and Warrants sold with other Securities may be attached to or separate from the other Securities. Warrants will be issued under one or more Warrant agency agreements to be entered into by Nicola and one or more banks or trust companies acting as Warrant agent. Prior to the exercise of their Warrants, holders of Warrants will not have any of the rights of holders of the Securities subject to the Warrants.

Nicola will deliver an undertaking to the securities regulatory authority in the provinces of each of the provinces and territories of British Columbia, Alberta, and Ontario that it will not distribute Warrants that, according to their terms as described in the applicable Prospectus Supplement, are "novel" specified derivatives within the meaning of Canadian securities legislation, separately to any member of the public in Canada, unless the offering is in connection with and forms part of the consideration for an acquisition or merger transaction or unless such Prospectus Supplement containing the specific terms of the Warrants to be distributed separately is first approved by or on behalf of the securities commissions or similar regulatory authorities in the provinces and territories where the Warrants will be distributed.

The applicable Prospectus Supplement relating to any Warrants that we offer will describe the particular terms of those Warrants and include specific terms relating to the offering.

Original purchasers of Warrants (if offered separately) will have a contractual right of rescission against the Company in respect of the exercise of such Warrant. The contractual right of rescission will entitle such original purchasers to receive, upon surrender of the underlying Securities acquired upon exercise of the Warrant, the total of the amount paid on original purchase of the warrant and the amount paid upon exercise, in the event that this Prospectus (as supplemented or amended) contains a misrepresentation, provided that: (i) the exercise takes place within 180 days of the date of the purchase of the Warrant under the applicable Prospectus Supplement; and (ii) the right of rescission is exercised within 180 days of the date of purchase of the Warrant under the applicable Prospectus Supplement. This contractual right of rescission will be consistent with the statutory right of rescission in Section 131 of the Securities Act, and is in addition to any other right or remedy available to original purchasers in Section 131 of the Securities Act or otherwise at law.

In an offering of Warrants, or other convertible securities, original purchasers are cautioned that the statutory right of action for damages for a misrepresentation contained in the Prospectus is limited, in certain provincial and territorial securities legislation, to the price at which the Warrants, or other convertible securities, are offered to the public under the Prospectus offering. This means that, under the securities legislation of certain provinces and territories, if the purchaser pays additional amounts upon conversion, exchange or exercise of such securities, those amounts may not be recoverable under the statutory right of action for damages that applies in those provinces or territories. A purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for the particulars of these rights, or consult with a legal advisor.

 *Equity Warrants* 

The particular terms of each issue of equity Warrants will be described in the applicable Prospectus Supplement. This description will include, where applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the designation and aggregate number of equity Warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the price at which the equity Warrants will be offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the currency or currencies in which the equity Warrants will be offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the date on which the right to exercise the equity Warrants will commence and the date on which the right will expire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the number of Common Shares that may be purchased upon exercise of each equity Warrant and the price at which and currency or currencies in which the Common Shares may be purchased upon exercise of each equity Warrant;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the terms of any provisions allowing or providing for adjustments in (i) the number and/or class of shares that may be purchased, (ii) the exercise price per share or (iii) the expiry of the equity Warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the Company will issue fractional Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the Company has applied to list the equity Warrants or the underlying Common Shares on a stock exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the designation and terms of any securities with which the equity Warrants will be offered, if any, and the number of the equity Warrants that will be offered with each Security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the date or dates, if any, on or after which the equity Warrants and the related Securities will be transferable separately;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the equity Warrants will be subject to redemption or call and, if so, the terms of such redemption or call provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • material Canadian federal income tax consequences of owning the equity Warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any terms, procedures and limitations relating to the transferability, exchange or exercise of the equity Warrants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any other material terms or conditions of the equity Warrants.

 *Debt Warrants* 

The particular terms of each issue of debt Warrants will be described in the related Prospectus Supplement. This description will include, where applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the designation and aggregate number of debt Warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the price at which the debt Warrants will be offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the currency or currencies in which the debt Warrants will be offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the designation and terms of any securities with which the debt Warrants are being offered, if any, and the number of the debt Warrants that will be offered with each security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the date or dates, if any, on or after which the debt Warrants and the related securities will be transferable separately;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the principal amount and designation of Debt Securities that may be purchased upon exercise of each debt Warrant and the price at which and currency or currencies in which that principal amount of Debt Securities may be purchased upon exercise of each debt Warrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the date on which the right to exercise the debt Warrants will commence and the date on which the right will expire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the minimum or maximum amount of debt Warrants that may be exercised at any one time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the debt Warrants will be subject to redemption or call, and, if so, the terms of such redemption or call provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • material Canadian federal income tax consequences of owning the debt Warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether we have applied to list the debt Warrants or the underlying Debt Securities on an exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any terms, procedures and limitations relating to the transferability, exchange or exercise of the debt Warrants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any other material terms or conditions of the debt Warrants.

#### Description of Subscription Receipts
Nicola may issue Subscription Receipts separately or in combination with one or more other Securities, which will entitle holders thereof to receive, upon satisfaction of certain release conditions (collectively, the "**Release Conditions**") and for no additional consideration, Common Shares, Warrants, Depositary Shares,

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Debt Securities or any combination thereof. Subscription Receipts will be issued pursuant to one or more Subscription Receipt agreement (each, a "**Subscription Receipt Agreement**"), the material terms of which will be described in the applicable Prospectus Supplement, each to be entered into between the Company and an escrow agent (the "**Escrow Agent**") that will be named in the relevant Prospectus Supplement. The Escrow Agent will be a financial institution organized under the laws of Canada or a province thereof and authorized to carry on business as a trustee. If underwriters or agents are used in the sale of any Subscription Receipts, one or more of such underwriters or agents may also be a party to the Subscription Receipt Agreement governing the Subscription Receipts sold to or through such underwriter or agent.

The following is a brief summary of certain general terms and provisions of the Subscription Receipts that may be offered pursuant to this Prospectus. This summary does not purport to be complete. The particular terms and provisions of the Subscription Receipts as may be offered pursuant to this Prospectus will be set forth in the applicable Prospectus Supplement pertaining to such offering of Subscription Receipts, and the extent to which the general terms and provisions described below may apply to such Subscription Receipts will be described in the applicable Prospectus Supplement.

The Prospectus Supplement and the Subscription Receipt Agreement for any Subscription Receipts that we may offer will describe the specific terms of the Subscription Receipts offered. This description may include, but may not be limited to, any of the following, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the designation and aggregate number of Subscription Receipts being offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the price at which the Subscription Receipts will be offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the designation, number and terms of the Common Shares, Warrants and/or Debt Securities, as applicable, to be received by the holders of Subscription Receipts upon satisfaction of the Release Conditions, and any procedures that will result in the adjustment of those numbers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Release Conditions that must be met in order for holders of Subscription Receipts to receive, for no additional consideration, the Common Shares, Warrants and/or Debt Securities, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the procedures for the issuance and delivery of the Common Shares, Warrants and/or Debt Securities to holders of Subscription Receipts upon satisfaction of the Release Conditions, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether any payments will be made to holders of Subscription Receipts upon delivery of the Common Shares, Warrants and/or Debt Securities, as applicable, upon satisfaction of the Release Conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the identity of the Escrow Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the terms and conditions under which the Escrow Agent will hold all or a portion of the gross proceeds from the sale of Subscription Receipts, together with interest and income earned thereon (collectively, the "**Escrowed Funds**"), pending satisfaction of the Release Conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the terms and conditions pursuant to which the Escrow Agent will hold the Common Shares, Warrants and/or Debt Securities pending satisfaction of the Release Conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the terms and conditions under which the Escrow Agent will release all or a portion of the Escrowed Funds to the Company upon satisfaction of the Release Conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • if the Subscription Receipts are sold to or through underwriters or agents, the terms and conditions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • under which the Escrow Agent will release a portion of the Escrowed Funds to such underwriters or agents in payment of all or a portion of their fees or commissions in connection with the sale of the Subscription Receipts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • procedures for the refund by the Escrow Agent to holders of Subscription Receipts of all or a portion of the subscription price of their Subscription Receipts, plus any pro rata entitlement to interest earned or income generated on such amount, if the Release Conditions are not satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any contractual right of rescission to be granted to initial purchasers of Subscription Receipts in the event that this Prospectus, the Prospectus Supplement under which such Subscription Receipts are issued or any amendment hereto or thereto contains a misrepresentation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any entitlement of the Company to purchase the Subscription Receipts in the open market by private agreement or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether we will issue the Subscription Receipts as Global Securities and, if so, the identity of the Depositary for the Global Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether we will issue the Subscription Receipts as unregistered bearer securities, as registered securities or both;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • provisions as to modification, amendment or variation of the Subscription Receipt Agreement or any rights or terms of the Subscription Receipts, including upon any subdivision, consolidation, reclassification or other material change of the Common Shares, Warrants or other Securities, any other reorganization, amalgamation, merger or sale of all or substantially all of the Company's assets or any distribution of property or rights to all or substantially all of the holders of Common Shares or Preferred Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the Company will apply to list the Subscription Receipts on any exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • material Canadian federal income tax consequences of owning the Subscription Receipts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any other material terms or conditions of the Subscription Receipts.

Original purchasers of Subscription Receipts will have a contractual right of rescission against the Company in respect of the conversion of the Subscription Receipts. The contractual right of rescission will entitle such original purchasers to receive the amount paid on original purchase of the Subscription Receipts upon surrender of the underlying Securities gained thereby, in the event that this Prospectus (as supplemented or amended) contains a misrepresentation, provided that: (i) the conversion takes place within 180 days of the date of the purchase of the Subscription Receipts under this Prospectus; and (ii) the right of rescission is exercised within 180 days of the date of purchase of the Subscription Receipts under this Prospectus. This contractual right of rescission will be consistent with the statutory right of rescission described in Section 131 of the Securities Act, and is in addition to any other right or remedy available to original purchasers in Section 131 of the Securities Act or otherwise at law.

 *Rights of Holders of Subscription Receipts Prior to Satisfaction of Release Conditions* 

The holders of Subscription Receipts will not be, and will not have the rights of, Shareholders. Holders of Subscription Receipts are entitled only to receive Common Shares, Warrants and/or Debt Securities upon exchange of their Subscription Receipts, plus any cash payments, if applicable, all as provided for under the Subscription Receipt Agreement and only once the Release Conditions have been satisfied. If the Release Conditions are not satisfied, holders of Subscription Receipts shall be entitled to a refund of all or a portion of the subscription price thereof and their pro-rata share of interest earned or income generated thereon, if provided for in the Subscription Receipt Agreement.

 *Escrow* 

The Subscription Receipt Agreement will provide that the Escrowed Funds will be held in escrow by the Escrow Agent, and such Escrowed Funds will be released to the Company (and, if the Subscription Receipts are sold to or through underwriters or agents, a portion of the Escrowed Funds may be released to such underwriters or agents in payment of all or a portion of their fees in connection with the sale of the Subscription Receipts) at the time and under the terms specified by the Subscription Receipt Agreement. If the Release Conditions are not satisfied, holders of Subscription Receipts will receive a refund of all or a portion of the subscription price for their Subscription Receipts, plus their pro-rata entitlement to interest earned or income generated on such amount, if provided for in the Subscription Receipt Agreement, in accordance with the terms of the Subscription Receipt Agreement. Common Shares, Warrants and or Debt Securities may be held in escrow by the Escrow Agent and will be released to the holders of Subscription Receipts following satisfaction of the Release Conditions at the time and under the terms specified in the Subscription Receipt Agreement.

 *Modifications* 

The Subscription Receipt Agreement will specify the terms upon which modifications and alterations to the Subscription Receipts issued thereunder may be made by way of a resolution of holders of Subscription

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Receipts at a meeting of such holders or a consent in writing from such holders. The number of holders of Subscription Receipts required to pass such a resolution or execute such a written consent will be specified in the Subscription Receipt Agreement.

The Subscription Receipt Agreement will also specify that we may amend any Subscription Receipt Agreement and the Subscription Receipts without the consent of the holders of the Subscription Receipts to cure any ambiguity, to cure, correct or supplement any defective or inconsistent provision or in any other manner that will not materially and adversely affect the interests of the holders of outstanding Subscription Receipts or as otherwise specified in the Subscription Receipt Agreement.

#### Description of Units
Nicola may issue Units, which may consist of one or more of Common Shares, Warrants, Depositary Shares or any other Security specified in the relevant Prospectus Supplement. Each Unit will be issued so that the holder of the Unit is also the holder of each of the Securities included in the Unit. In addition, the relevant Prospectus Supplement relating to an offering of Units will describe all material terms of any Units offered, including, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the designation and aggregate number of Units being offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the price at which the Units will be offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the designation, number and terms of the securities comprising the Units and any agreement governing the Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the date or dates, if any, on or after which the securities comprising the Units will be transferable separately;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether we will apply to list the Units or any of the individual securities comprising the Units on any exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • material Canadian income tax consequences of owning the Units, including, how the purchase price paid for the Units will be allocated among the securities comprising the Units; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any other material terms or conditions of the Units.

#### Description of Common Shares Represented by Depositary Shares

#### DEPOSITARY SHARES WILL NOT BE OFFERED OR SOLD IN CANADA.
The following is a brief summary of certain general terms and provisions of the Depositary Shares that may represent Common Shares offered pursuant to this Prospectus. This summary does not purport to be complete. The particular terms and provisions of the Depositary Shares as may be offered pursuant to this Prospectus will be set forth in the applicable Prospectus Supplement pertaining to such offering of Depositary Shares, and the extent to which the general terms and provisions described below may apply to such Depositary Shares will be described in the applicable Prospectus Supplement. The following description is subject to the detailed provisions of the applicable Deposit Agreement (as defined herein). To the extent that any particular terms of the Depositary Shares or the Deposit Agreement described in a Prospectus Supplement differ from any of the terms described below, then the terms described below will be deemed to have been superseded by that Prospectus Supplement relating to such Depositary Shares.

We may, at our option, elect to offer Depositary Shares, including American depositary shares, that represent either a whole Common Share, multiple Common Shares or a fraction of a Common Share as more fully described below. Investors may hold American Depositary Shares either: (A) directly (i) by having an American Depositary Receipt (an "**ADR**"), which is a certificate evidencing a specific number of American Depositary Shares, registered in the investors name; or (ii) by having uncertificated American Depositary Shares registered in the investors name; or (B) indirectly by holding a security entitlement in American Depositary Shares through a broker or other financial institution that is a direct or indirect participant in The Depository Trust Company, also called DTC.

Any Common Share(s) (or fractional Common Shares) represented by Depositary Shares will be deposited under one or more deposit agreements (the "**Deposit Agreement**") among us, a depositary to be

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named in the applicable Prospectus Supplement, and the holders and beneficial owners from time to time of Depositary Shares issued thereunder. Subject to the terms of the applicable Deposit Agreement, each registered holder of a Depositary Share will be entitled, in proportion to the applicable multiple or fraction of a Common Share represented by the Depositary Shares, to certain contractual rights with respect to the Common Shares represented thereby (including, as applicable, dividend, voting, redemption, subscription and liquidation rights).

Immediately following our issuance of Common Shares that will be offered as Depositary Shares, we will deposit the Common Shares with the depositary.

 *Dividends and other Distributions* 

The depositary will distribute all cash dividends or other cash distributions received in respect of the Common Shares to the record holders of the Depositary Shares relating to the Common Shares in proportion to the number of the Depositary Shares owned by those holders.

In the event of a distribution other than in cash, the depositary will distribute property received by it to the record holders of Depositary Shares entitled thereto in proportion to the number of Depositary Shares owned by those holders, unless the depositary determines that the distribution cannot be made proportionately among those holders or that it is not feasible to make the distributions, in which case the depositary may adopt any method as it deems equitable and practicable for the purpose of effecting the distribution, including the sale (at public or private sale) of the securities or property thus received, or any part thereof, at the place or places and upon those terms as it may deem proper. The amount distributed in any of the foregoing cases will be reduced by any amounts required to be withheld by us or the depositary on account of taxes or other governmental charges and the amount of fees payable to the depositary for making the distribution. To the extent there is insufficient distributable cash and the depositary is unable to otherwise collect a fee from holders of Depositary Shares and does not waive that fee, it will use reasonable efforts to sell a portion of any securities to be distributed to holders of Depositary Shares that are obligated to pay that fee and apply the net proceeds of sale to pay that fee.

 *Redemption of Depositary Shares* 

If any Common Shares underlying the Depositary Shares are subject to redemption, the Depositary Shares will be redeemed from the proceeds received by the depositary resulting from any redemption, in whole or in part, of the Common Shares held by the depositary. The redemption price per Depositary Share will be equal to the applicable fraction of the redemption price per share payable with respect to the Common Shares. If we redeem Common Shares held by the depositary, the depositary will redeem as of the same redemption date the number of Depositary Shares representing the Common Shares so redeemed. If less than all the Depositary Shares are to be redeemed, the Depositary Shares to be redeemed will be selected by lot or substantially equivalent method determined by the depositary.

After the date fixed for redemption, the Depositary Shares so called for redemption, all rights of the holders of those Depositary Shares will cease, except the right to receive the monies payable upon redemption and any money or other property to which the holders of the Depositary Shares were entitled upon such redemption, upon surrender to the depositary of those Depositary Shares. Applicable fees of the depositary and any applicable taxes will be deducted from the payments surrendering holders will receive.

 *Voting Rights* 

Upon receipt of notice of any meeting at which the holders of any Common Shares are entitled to vote, the depositary will, if requested in writing by Nicola, mail the information contained in the notice of meeting and any related materials to the record holders of the Depositary Shares relating to the Common Shares as of a record date set by the depositary. Each record holder of the Depositary Shares as of that record date will be entitled to instruct the depositary as to the exercise of the voting rights pertaining to the number of Common Shares represented by that holder's Depositary Shares. The depositary will endeavor, insofar as practicable, to vote or cause to be voted the number of Common Shares represented by the Depositary Shares in accordance with the instructions, provided the instruction is received by a cut-off date established by the depositary, and we will agree to take all reasonable action that may be deemed necessary by the depositary in order to enable

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the depositary to do so. The depositary will abstain from voting the Common Shares to the extent it does not receive specific instructions from the holders of Depositary Shares representing the Common Shares. If Nicola does not instruct the depositary to solicit voting instructions, registered holders of Depositary Shares may still send instructions and the depositary may endeavor to carry out those instructions, but it is not required to do so.

 *Withdrawal* 

Holders of Depositary Shares may surrender their Depositary Shares for the purpose of withdrawal at the depositary's office. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, the depositary will deliver the Common Shares underlying the Depository Shares to the holder of Depositary Shares or a person the holder designates at the office of the custodian. If ADRs delivered by the holder evidence a number of Depositary Shares in excess of the number of Depositary Shares representing the number of whole shares of the related Common Shares to be withdrawn, the depositary will deliver to the holder or upon his or her order at the same time the excess number of Depositary Shares.

 *Charges of Depositary* 

We will pay all transfer and other taxes and the governmental charges arising solely from the existence of the depositary arrangements. We will pay the charges of the depositary in connection with the initial deposit of the related Common Shares and the initial issuance of the offered Depositary Shares. Holders of Depositary Shares will pay transfer and other taxes and governmental charges and all other fees and charges as are expressly provided in the deposit agreement to be for their accounts.

 *Miscellaneous* 

If requested by Nicola, the depositary will forward to the holders of Depositary Shares reports and communications from Nicola that are delivered to the depositary. The depositary's office location will be identified in the applicable Prospectus Supplement. Unless otherwise set forth in the applicable Prospectus Supplement, the depositary will act as transfer agent and registrar for Depositary Shares.

Prospective purchasers of Depositary Shares should be aware that certain tax, accounting and other considerations may be applicable to instruments such as Depositary Shares. The applicable Prospectus Supplement will describe such considerations, to the extent they are material, as they apply generally to purchasers of such Depositary Shares.

#### Description of Debt Securities
The following is a brief summary of certain general terms and provisions of the Debt Securities that may be offered pursuant to this Prospectus. This summary does not purport to be complete. The particular terms and provisions of the Debt Securities as may be offered pursuant to this Prospectus will be set forth in the applicable Prospectus Supplement pertaining to such offering of Debt Securities, and the extent to which the general terms and provisions described below may apply to such Debt Securities will be described in the applicable Prospectus Supplement. The following description is subject to the detailed provisions of the applicable Trust Indenture (as defined herein). Accordingly, reference should also be made to the applicable Trust Indenture, a copy of which will be filed by the Company with the securities commissions or similar regulatory authorities in applicable Canadian offering jurisdictions, after it has been entered into, and will be available electronically through SEDAR+ at www.sedarplus.ca.

Debt Securities may be offered separately or in combination with one or more other Securities. The Company may, from time to time, issue Debt Securities and incur additional indebtedness other than through the issue of Debt Securities pursuant to this Prospectus. Convertible Debt Securities offered under this Prospectus and any Prospectus Supplement may only be convertible into other Securities.

Nicola will deliver, along with this Prospectus, an undertaking to the securities regulatory authority in each of the provinces and territories of British Columbia, Alberta, and Ontario if any Debt Securities are distributed under this Prospectus and for so long as such Debt Securities are issued and outstanding, file the

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periodic and timely disclosure of any credit supporter similar to the disclosure required under Section 12.1 of Form 44-101F1 — Short Form Prospectus ("**Form 44-101F1**").

Any Prospectus Supplement offering guaranteed Debt Securities will comply with the requirements of Item 12 of Form 44-101F1 or the conditions for an exemption from those requirements and will include a certificate from each credit supporter as required by section 21.1 of Form 44-101F1 and section 5.12 of National Instrument 41-101 — General Prospectus Requirements.

The Debt Securities will be issued under one or more indentures (each, a "**Trust Indenture**"), in each case between Nicola and a financial institution or trust company organized under the laws of Canada or any province thereof and authorized to carry on business as a trustee (each, a "**Trustee**").

The applicable Trust Indenture will not limit the aggregate principal amount of Debt Securities that may be issued under such Trust Indenture and will not limit the amount of other indebtedness that the Company may incur. The applicable Trust Indenture will provide that Nicola may issue Debt Securities from time to time in one or more series and may be denominated and payable in U.S. dollars, Canadian dollars or any foreign currency. Unless otherwise indicated in the applicable Prospectus Supplement, the Debt Securities will be unsecured obligations of the Company.

Nicola may specify a maximum aggregate principal amount for the Debt Securities of any series and, unless otherwise provided in the applicable Prospectus Supplement, a series of Debt Securities may be reopened for issuance of additional Debt Securities of such series. The applicable Trust Indenture will also permit the Company to increase the principal amount of any series of the Debt Securities previously issued and to issue that increased principal amount.

Any Prospectus Supplement for Debt Securities supplementing this Prospectus will contain the specific terms and other information with respect to the Debt Securities being offered thereby, including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the designation, aggregate principal amount and authorized denominations of such Debt Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the price or prices at which the Debt Securities will be issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the percentage of principal amount at which the Debt Securities will be issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether payment on the Debt Securities will be senior or subordinated to other liabilities or obligations of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the date or dates, or the methods by which such dates will be determined or extended, on which the Company may issue the Debt Securities and the date or dates, or the methods by which such dates will be determined or extended, on which the Company will pay the principal and any premium on the Debt Securities and the portion (if less than the principal amount) of Debt Securities to be payable upon a declaration of acceleration of maturity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the Debt Securities will bear interest, the interest rate (whether fixed or variable) or the method of determining the interest rate, the date from which interest will accrue, the dates on which the Company will pay interest and the record dates for interest payments, or the methods by which such dates will be determined or extended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the place or places the Company will pay the principal, premium, if any, and interest, if any, and the place or places where Debt Securities can be presented for registration of transfer or exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether and under what circumstances the Company will be required to pay any additional amounts for withholding or deducting for Canadian tax purposes with respect to the Debt Securities, and whether and on what terms the Company will have the option to redeem the Debt Securities rather than pay the additional amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the Company will be obligated to redeem or repurchase the Debt Securities pursuant to any sinking or purchase fund or other provisions, or at the option of a holder, and the terms and conditions of such redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the Company may redeem the Debt Securities at its option and the terms and conditions of any such redemption;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the denominations in which the Company will issue any registered and unregistered Debt Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the currency or currency Units for which Debt Securities may be purchased and the currency or currency Units in which the principal and any interest is payable (in either case, if other than Canadian dollars) or if payments on the Debt Securities will be made by delivery of Common Shares or other property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether payments on the Debt Securities will be payable with reference to any index or formula;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • if applicable, the ability of the Company to satisfy all or a portion of any redemption of the Debt Securities, any payment of any interest on such Debt Securities or any repayment of the principal owing upon the maturity of such Debt Securities through the issuance of Securities or of any other entity, and any restriction(s) on the persons to whom such securities may be issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the Debt Securities will be issued as Global Securities (defined herein) and, if so, the identity of the Depositary (defined herein) for the global securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the Debt Securities will be issued as unregistered securities (with or without coupons), registered securities or both;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the periods and the terms and conditions, if any, upon which the Company may redeem the Debt Securities prior to maturity and the price or prices of which, and the currency or currency Units in which, the Debt Securities are payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any events of default or covenants applicable to the Debt Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any terms under which Debt Securities may be defeased, whether at or prior to maturity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the holders of any series of Debt Securities have special rights if specified events occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the terms, if any, for any conversion or exchange of the Debt Securities for any other Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • if applicable, any transfer restrictions in respect of Disqualified Holders, as defined in securities laws, or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • rights, if any, on a change of control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • provisions as to modification, amendment or variation of any rights or terms attaching to the Debt Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Trustee under the Trust Indenture pursuant to which the Debt Securities are to be issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the Company will undertake to list the Debt Securities of the series on any securities exchange or automated interdealer quotation system; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any other terms, conditions, rights and preferences (or limitations on such rights and preferences) including covenants and events of default which apply solely to a particular series of the Debt Securities being offered which do not apply generally to other Debt Securities, or any covenants or events of default generally applicable to the Debt Securities which do not apply to a particular series of the Debt Securities.

Nicola reserves the right to include in a Prospectus Supplement specific terms pertaining to the Debt Securities which are not within the options and parameters set forth in this Prospectus. In addition, to the extent that any particular terms of the Debt Securities described in a Prospectus Supplement differ from any of the terms described in this Prospectus, the description of such terms set forth in this Prospectus shall be deemed to have been superseded by the description of such differing terms set forth in such Prospectus Supplement with respect to such Debt Securities.

Unless stated otherwise in the applicable Prospectus Supplement, no holder of Debt Securities will have the right to require the Company to repurchase the Debt Securities and there will be no increase in the interest rate if the Company becomes involved in a highly leveraged transaction or has a change of control.

Nicola may issue Debt Securities bearing no interest or interest at a rate below the prevailing market rate at the time of issuance, and offer and sell these securities at a discount below their stated principal amount. The Company may also sell any of the Debt Securities for a foreign currency or currency unit, and payments

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on the Debt Securities may be payable in a foreign currency or currency unit. In any of these cases, Nicola will describe certain Canadian federal income tax consequences and other special considerations in the applicable Prospectus Supplement.

Unless otherwise indicated in the applicable Prospectus Supplement, the Company may issue Debt Securities with terms different from those of Debt Securities previously issued and, without the consent of the holders thereof, reopen a previous issue of a series of Debt Securities and issue additional Debt Securities of such series.

Original purchasers of Debt Securities which are convertible into or exchangeable for other securities of Nicola will be granted a contractual right of rescission against the Company in respect of the purchase and conversion or exchange of such Debt Security. The contractual right of rescission will entitle such original purchasers to receive the amount paid on original purchase of the Debt Security and the amount paid upon conversion or exchange, upon surrender of the underlying Securities gained thereby, in the event that this Prospectus (as supplemented or amended) contains a misrepresentation, provided that: (i) the conversion or exchange takes place within 180 days of the date of the purchase of the convertible or exchangeable security under this Prospectus; and (ii) the right of rescission is exercised within 180 days of the date of the purchase of the convertible or exchangeable security under this Prospectus. This contractual right of rescission will be consistent with the statutory right of rescission in Section 131 of the Securities Act (British Columbia) and is in addition to any other right or remedy available to original purchasers in Section 131 of the Securities Act or otherwise at law.

 *Ranking and Other Indebtedness* 

Unless otherwise indicated in an applicable Prospectus Supplement, the Debt Securities will be direct unsecured obligations of Nicola. The Debt Securities will be senior or subordinated indebtedness of the Company as described in the applicable Prospectus Supplement. If the Debt Securities are senior indebtedness, they will rank equally and rateably with all other unsecured indebtedness of Nicola from time to time issued and outstanding which is not subordinated. If the Debt Securities are subordinated indebtedness, they will be subordinated to senior indebtedness of Nicola as described in the applicable Prospectus Supplement, and they will rank equally and rateably with other subordinated indebtedness of the Company from time to time issued and outstanding as described in the applicable Prospectus Supplement. The Company reserves the right to specify in a Prospectus Supplement whether a particular series of subordinated Debt Securities is subordinated to any other series of subordinated Debt Securities.

The board of directors of the Company may establish the extent and manner, if any, to which payment on or in respect of a series of Debt Securities will be senior or will be subordinated to the prior payment of the Company's other liabilities and obligations and whether the payment of principal, premium, if any, and interest, if any, will be guaranteed and the nature and priority of any Security.

 *Registration of Debt Securities* 

<u>Debt Securities in Book Entry Form</u> 

Unless otherwise indicated in an applicable Prospectus Supplement, Debt Securities of any series may be issued in whole or in part in the form of one or more global securities ("**Global Securities**") registered in the name of a designated clearing agency (each, a "**Depositary**") or its nominee and held by or on behalf of the Depositary in accordance with the terms of the applicable Trust Indenture. The specific terms of the depositary arrangement with respect to any portion of a series of Debt Securities to be represented by a Global Security will, to the extent not described herein, be described in the Prospectus Supplement relating to such series. The Company anticipates that the provisions described in this section will apply to all depositary arrangements.

Upon the issuance of a Global Security, the Depositary or its nominee will credit, in its book-entry and registration system, the respective principal amounts of the Debt Securities represented by the Global Security to the accounts of such participants that have accounts with the Depositary or its nominee (collectively, "**Participants**"). Such accounts are typically designated by the underwriters, dealers or agents participating in the distribution of the Debt Securities or by the Company if such Debt Securities are offered and sold directly

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by the Company. Ownership of beneficial interests in a Global Security will be limited to Participants or persons that may hold beneficial interests through Participants. With respect to the interests of Participants, ownership of beneficial interests in a Global Security will be shown on, and the transfer of that ownership will be effected only through records maintained by the Depositary or its nominee. With respect to the interests of persons other than Participants, ownership of beneficial interests in a Global Security will be shown on, and the transfer of that ownership will be effected only through records maintained by Participants or persons that hold through Participants.

So long as the Depositary for a Global Security, or its nominee, is the registered owner of such Global Security, such Depositary or such nominee, as the case may be, will be considered the sole owner or holder of the Debt Securities represented by such Global Security for all purposes under the applicable Trust Indenture and payments of principal, premium, if any, and interest, if any, on the Debt Securities represented by a Global Security will be made by Nicola to the Depositary or its nominee. The Company expects that the Depositary or its nominee, upon receipt of any payment of principal, premium, if any, or interest, if any, will credit Participants' accounts with payments in amounts proportionate to their respective beneficial interests in the principal amount of the Global Security as shown on the records of such Depositary or its nominee. Nicola also expects that payments by Participants to owners of beneficial interests in a Global Security held through such Participants will be governed by standing instructions and customary practices and will be the responsibility of such Participants.

Conveyance of notices and other communications by the Depositary to direct Participants, by direct Participants to indirect Participants and by direct and indirect Participants to beneficial owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial owners of Debt Securities may wish to take certain steps to augment transmission to them of notices of significant events with respect to the Debt Securities, such as redemptions, tenders, defaults and proposed amendments to the Trust Indenture.

Owners of beneficial interests in a Global Security will not be entitled to have the Debt Securities represented by such Global Security registered in their respective names, will not receive or be entitled to receive physical delivery of such Debt Securities in certificated non-book-entry form, and will not be considered the owners or holders thereof under the applicable Trust Indenture, and the ability of a holder to pledge a Debt Security or otherwise take action with respect to such holder's interest in a Debt Security (other than through a Participant) may be limited due to the lack of a physical certificate.

No Global Security may be exchanged in whole or in part for Debt Securities registered, and no transfer of a Global Security in whole or in part may be registered, in the name of any person other than the Depositary for such Global Security or any nominee of such Depositary unless: (i) the Depositary is no longer willing or able to properly discharge its responsibilities as Depositary and Nicola is unable to locate a qualified successor; (ii) Nicola at its option elects, or is required by law, to terminate the book-entry system through the Depositary or the book-entry system ceases to exist; or (iii) if provided for in the Trust Indenture, after the occurrence of an event of default thereunder (provided the Trustee has not waived the event of default in accordance with the terms of the Trust Indenture), Participants acting on behalf of beneficial holders representing, in aggregate, a threshold percentage of the aggregate principal amount of the Debt Securities then outstanding advise the Depositary in writing that the continuation of a book-entry system through the Depositary is no longer in their best interest.

If one of the foregoing events occurs, such Global Security shall be exchanged for certificated non-book-entry Debt Securities of the same series in an aggregate principal amount equal to the principal amount of such Global Security and registered in such names and denominations as the Depositary may direct.

Nicola, any underwriters, dealers or agents and any Trustee identified in an accompanying Prospectus Supplement, as applicable, will not have any liability or responsibility for (i) records maintained by the Depositary relating to beneficial ownership interests in the Debt Securities held by the Depositary or the book-entry accounts maintained by the Depositary; (ii) maintaining, supervising or reviewing any records relating to any such beneficial ownership interests; or (iii) any advice or representation made by or with respect to the Depositary and contained in this Prospectus or in any Prospectus Supplement or Trust Indenture with respect to the rules and regulations of the Depositary or at the direction of Participants.

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Unless otherwise stated in the applicable Prospectus Supplement, CDS Clearing and Depository Services Inc. or its successor will act as Depositary for any Debt Securities represented by a Global Security.

 *Debt Securities in Certificated Form* 

A series of the Debt Securities may be issued in definitive form, solely as registered Securities, solely as unregistered Securities or as both registered Securities and unregistered Securities. Unless otherwise indicated in the applicable Prospectus Supplement, unregistered Securities will have interest coupons attached.

In the event that the Debt Securities are issued in certificated non-book-entry form, and unless otherwise indicated in the applicable Prospectus Supplement, payment of principal, premium, if any, and interest, if any, on the Debt Securities (other than a Global Security) will be made at the office or agency of the Trustee or, at the option of the Company, by the Company by way of cheque mailed or delivered to the address of the person entitled at the address appearing in the security register of the Trustee or electronic funds wire or other transmission to an account of the person entitled to receive such payments. Unless otherwise indicated in the applicable Prospectus Supplement, payment of interest, if any, will be made to the persons in whose name the Debt Securities are registered at the close of business on the day or days specified by the Company.

At the option of the holder of Debt Securities, registered Securities of any series will be exchangeable for other registered securities of the same series, of any authorized denomination and of a like aggregate principal amount and tenor. If, but only if, provided in an applicable Prospectus Supplement, unregistered Securities (with all unmatured coupons, except as provided below, and all matured coupons in default) of any series may be exchanged for registered Securities of the same series, of any authorized denominations and of a like aggregate principal amount and tenor. In such an event, unregistered Securities surrendered in a permitted exchange for registered Securities between a regular record date or a special record date and the relevant date for payment of interest shall be surrendered without the coupon relating to such date for payment of interest, and interest will not be payable on such date for payment of interest in respect of the registered security issued in exchange for such unregistered security, but will be payable only to the holder of such coupon when due in accordance with the terms of the Trust Indenture. Unless otherwise specified in an applicable Prospectus Supplement, unregistered Securities will not be issued in exchange for registered Securities. The applicable Prospectus Supplement may indicate the places to register a transfer of the Debt Securities in definitive form. Except for certain restrictions to be set forth in the Trust Indenture, no service charge will be payable by the holder for any registration of transfer or exchange of the Debt Securities in definitive form, but the Company may, in certain instances, require a sum sufficient to cover any tax or other governmental charges payable in connection with these transactions.

#### DENOMINATIONS, REGISTRATION AND TRANSFER
The securities (other than Depositary Shares) will be issued in fully registered form without coupons attached in either global or definitive form and in denominations and integral multiples as set out in the applicable Prospectus Supplement (unless otherwise provided with respect to a particular series of debt securities pursuant to the provisions of the applicable indenture, as supplemented by a supplemental indenture). Other than in the case of book-entry only securities, securities may be presented for registration of transfer (with the form of transfer endorsed thereon duly executed) in the city specified for such purpose at the office of the registrar or transfer agent designated by the Company for such purpose with respect to any issue of securities referred to in the Prospectus Supplement. No service charge will be made for any transfer, conversion or exchange of the securities, but we may require payment of a sum to cover any transfer tax or other governmental charge payable in connection therewith. Such transfer, conversion or exchange will be effected upon such registrar or transfer agent being satisfied with the documents of title and the identity of the person making the request. If a Prospectus Supplement refers to any registrar or transfer agent designated by the Company with respect to any issue of securities, we may at any time rescind the designation of any such registrar or transfer agent and appoint another in its place or approve any change in the location through which such registrar or transfer agent acts.

In the case of book-entry only securities, a global certificate or certificates representing the securities will be held by a designated depository for its participants. The securities must be purchased or transferred through such participants, which includes securities brokers and dealers, banks and trust companies. The depository will establish and maintain book-entry accounts for its participants acting on behalf of holders of the

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securities. The interests of such holders of securities will be represented by entries in the records maintained by the participants. Holders of securities issued in book-entry only form will not be entitled to receive a certificate or other instrument evidencing their ownership thereof, except in limited circumstances. Each holder will receive a customer confirmation of purchase from the participants from which the securities are purchased in accordance with the practices and procedures of that participant.

Details concerning the registration and transfer of Depositary Shares will be provided in the prospectus supplement for Common Shares represented by Depositary Shares, if applicable.

#### PLAN OF DISTRIBUTION
Nicola may sell the Securities to or through underwriters or dealers, and also may sell Securities to one or more other purchasers directly or through agents. Each Prospectus Supplement will set forth the terms of the offering, including the name or names of any underwriters or agents, the purchase price or prices of the Securities and the proceeds to the Company from the sale of the Securities. Only those underwriters, dealers or agents named in a Prospectus Supplement will be the underwriters, dealers or agents in connection with the Securities offered thereby.

The Securities may be sold, from time to time, in one or more transactions at a fixed price or prices which may be changed or at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices, including sales in transactions deemed to be "at the market distributions" as defined in Canadian National Instrument 44-102 — *Shelf Distributions*, including sales made directly on the TSXV or other existing markets for the Securities. Additionally, this Prospectus and any Prospectus Supplement may also cover the initial resale of the Securities purchased pursuant thereto. The prices at which the Securities may be offered may vary as between purchasers and during the period of distribution. If, in connection with the offering of Securities at a fixed price or prices, the underwriters have made a bona fide effort to sell all of the Securities at the initial offering price fixed in the applicable Prospectus Supplement, the public offering price may be decreased and thereafter further changed, from time to time, to an amount not greater than the initial public offering price fixed in such Prospectus Supplement, in which case the compensation realized by the underwriters will be decreased by the amount that the aggregate price paid by purchasers for the Securities is less than the gross proceeds paid by the underwriters to the Company.

In connection with any offering of Securities, other than an "at-the-market distribution", the underwriters may over-allot or effect transactions which stabilize or maintain the market price of the Securities offered at a level above that which might otherwise prevail in the open market. Such transactions, if commenced, may be discontinued at any time.

 **Unless otherwise specified in a Prospectus Supplement, there is no market through which the Company's Warrants or Subscription Receipts may be sold and you may not be able to resell any such Securities purchased under this Prospectus or any Prospectus Supplement. Unless otherwise specified in the applicable Prospectus Supplement, the Securities (excluding any Common Shares) will not be listed on any securities exchange. This may affect the pricing of such Securities on the secondary market, the transparency and availability of trading prices, the liquidity of the Securities, and the extent of issuer regulation. See "*Risk Factors*".** 

In connection with the sale of Securities, underwriters, dealers and agents may receive compensation from the Company or from purchasers of the Securities from whom they may act as agents in the form of discounts, concessions or commissions. Any such commissions will be paid out of the Company's general funds. Underwriters, dealers and agents that participate in the distribution of Securities may be deemed to be underwriters and any discounts or commissions received by them from the Company and any profit on the resale of Securities by them may be deemed to be underwriting discounts and commissions under applicable securities legislation.

Underwriters, dealers and agents who participate in the distribution of the Securities may be entitled under agreements to be entered into with the Company to indemnification by the Company against certain liabilities, including liabilities under the United States *Securities Act of 1933*, as amended, and Canadian securities legislation, or to contribution with respect to payments which such underwriters, dealers or agents may be required to make in respect thereof. Those underwriters, dealers and agents may be customers of, engage in transactions with, or perform services for, the Company in the ordinary course of business.

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Depositary Shares will not be offered or sold in Canada.

#### CERTAIN INCOME TAX CONSIDERATIONS
Owning any of the Company's Securities may subject you to tax consequences in Canada.

Although the applicable Prospectus Supplement may describe certain Canadian federal income tax consequences of the acquisition, ownership and disposition of any Securities offered under this Prospectus by an initial investor, the Prospectus Supplement may not describe these tax consequences fully. You should consult your own tax advisor with respect to your particular circumstances.

#### AUDITORS, TRANSFER AGENT AND REGISTRAR
The auditors of the Company are Davidson & Company LLP, Chartered Professional Accountants, located at 609 Granville St #1200, Vancouver, British Columbia, V6E 4T5.

The transfer agent and registrar for the Common Shares is Computershare Investor Services Inc., located at 510 Burrard Street, 3rd Floor, Street, Vancouver, British Columbia, V6C 3B9.

#### EXPERTS

#### Names of Experts
Kevin Wells, P. Geo., and James N Gray, P. Geo are the named persons responsible for the preparation of the Technical Report, and at the date of that report were "qualified persons", and all were independent, as defined in NI 43-101.

#### Interests of Experts
Based on information provided by the experts named above, none of the experts above, when or after they prepared the statement, report or valuation, has received any registered or beneficial interests, direct or indirect, in any securities or other property of the Company or of one of the Company's associates or affiliates (based on information provided to the Company by the experts) or is or is expected to be elected, appointed or employed as a director, officer or employee of the Company or of any associate or affiliate of the Company.

#### ENFORCEMENT OF JUDGMENTS AGAINST FOREIGN PERSONS OR COMPANIES
The following directors of the Company reside outside of Canada and each has appointed the agent listed below for service of process in Canada:

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| | |
|:---|:---|
| **Name of Person**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Name and Address of Agent**  |
| Frank Högel <br> Director | Cozen O'Connor LLP <br> Bentall 5, 550 Burrard St., Suite 2501 <br> Vancouver, BC V6C 2B5 |
| Brent Omland <br> Director | Cozen O'Connor LLP <br> Bentall 5, 550 Burrard St., Suite 2501 <br> Vancouver, BC V6C 2B5 |

---

Purchasers are advised that it may not be possible for investors to enforce judgments obtained in Canada against any person or company that is incorporated, continued or otherwise organized under the laws of a foreign jurisdiction, or resides outside of Canada, even if the party has appointed an agent for service of process.

#### DOCUMENTS FILED AS PART OF THE REGISTRATION STATEMENT
The following documents have been or will be filed or furnished with the SEC as part of the Registration Statement of which this Prospectus forms a part: (i) the documents listed under the heading "Documents Incorporated by Reference"; (ii) powers of attorney from our directors and officers, as applicable; (iii) the consent of Davidson & Company LLP; and (iv) the consent of each expert listed in the exhibit index of the

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Registration Statement. A copy of the form of Warrant Indenture or Warrant agency agreement, the Subscription Receipt Agreement, the Trust Indenture or statement of eligibility of trustee on Form T-1, as applicable, will be filed by post-effective amendment or by incorporation by reference to documents filed or furnished with the SEC under the Exchange Act.

#### PURCHASERS' CONTRACTUAL RIGHTS OF WITHDRAWAL AND RESCISSION
Original purchasers of Warrants (if offered separately) and Subscription Receipts will have a contractual right of rescission against the Company in respect of the conversion, exchange or exercise of such Warrant and Subscription Receipt, as the case may be. The contractual right of rescission will entitle such original purchasers to receive, in addition to the amount paid on original purchase of the Warrant or Subscription Receipt, as the case may be, the amount paid upon conversion, exchange or exercise upon surrender of the underlying securities gained thereby, in the event that this Prospectus (as supplemented or amended) contains a misrepresentation, provided that: (i) the conversion, exchange or exercise takes place within 180 days of the date of the purchase of the convertible, exchangeable or exercisable security under this Prospectus; and (ii) the right of rescission is exercised within 180 days of the date of purchase of the convertible, exchangeable or exercisable security under this Prospectus. This contractual right of rescission will be consistent with the statutory right of rescission described under section 131 of the Securities Act (British Columbia), and is in addition to any other right or remedy available to original purchasers under section 131 of the Securities Act (British Columbia) or otherwise at law.

#### PURCHASERS' STATUTORY RIGHTS OF WITHDRAWAL AND RESCISSION
Securities legislation in certain of the provinces and territories of Canada provides purchasers with the right to withdraw from an agreement to purchase securities. This right may only be exercised within two business days after receipt or deemed receipt of a Prospectus, the accompanying Prospectus Supplement relating to securities purchased by a purchaser and any amendment thereto. In several of the provinces, the securities legislation further provides a purchaser with remedies for rescission or damages if the Prospectus, the accompanying Prospectus Supplement relating to securities purchased by a purchaser and any amendment thereto contains a misrepresentation or is not delivered to the purchaser, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province for the particulars of these rights or consult with a legal adviser.

Original purchasers are further advised that in certain provinces the statutory right of action for damages in connection with a prospectus misrepresentation is limited to the amount paid for the convertible, exchangeable or exercisable security that was purchased under a prospectus, and therefore a further payment at the time of conversion, exchange or exercise may not be recoverable in a statutory action for damages. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province for the particulars of these rights, or consult with a legal advisor.

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#### CERTIFICATE OF NICOLA MINING INC.
Dated: January 29, 2026

This short form prospectus, together with the documents incorporated in this prospectus by reference, will, as of the date of the last supplement to this prospectus relating to the securities offered by this prospectus and the supplement(s), constitute full, true and plain disclosure of all material facts relating to the securities offered by this prospectus and the supplement(s) as required by the securities legislation of the provinces of British Columbia, Alberta and Ontario.

 *"Peter Espig"* PETER ESPIG President, Chief Executive Officer, and Director *"Sam Wong"* SAM WONG Chief Financial Officer

ON BEHALF OF THE BOARD OF DIRECTORS

 *"Paul Johnston"* PAUL JOHNSTON Director *"Malcolm Swallow"* MALCOLM SWALLOW Director

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#### PART II

#### INFORMATION NOT REQUIRED TO BE DELIVERED TO OFFEREES OR PURCHASERS
Division 5 of Part 5 of the British Columbia Business Corporations Act (the "**BCBCA**") provides that a corporation may (a) indemnify an eligible party against all eligible penalties to which the eligible party is or may be liable and (b) after the final disposition of an eligible proceeding, pay the expenses (not including judgments, penalties, fines or amounts paid in settlement of a proceeding) actually and reasonably incurred by an eligible party in respect of that proceeding.

An "eligible party" means an individual who (a) is or was a director or officer of the corporation, (b) is or was a director or officer of another corporation (i) at a time when the corporation is or was an affiliate of the corporation, or (ii) at the request of the corporation, or (c) at the request of the corporation, is or was, or holds or held a position equivalent to that of, a director or officer of a partnership, trust, joint venture or other unincorporated entity. An "eligible proceeding" means a proceeding in which an eligible party or any of the heirs and personal or other legal representatives of the eligible party, by reason of the eligible party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the corporation or an associated corporation (a) is or may be joined as a party, or (b) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding.

A corporation must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by the eligible party in respect of that proceeding if the eligible party (a) has not been reimbursed for those expenses, and (b) is wholly successful, on the merits or otherwise, in the outcome of the proceeding or is substantially successful on the merits in the outcome of the proceeding.

A corporation may pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an eligible party in respect of that proceeding, provided the corporation first receives from the eligible party a written undertaking that, if it is ultimately determined that the payment of expenses is prohibited, the eligible party will repay the amounts advanced.

A corporation must not indemnify an eligible party or pay the expenses of an eligible party if any of the following circumstances apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • if the indemnity or payment is made under an earlier agreement to indemnify or pay expenses and, at the time that the agreement to indemnify or pay expenses was made, the corporation was prohibited from giving the indemnity or paying the expenses by its memorandum or articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • if the indemnity or payment is made otherwise than under an earlier agreement to indemnify or pay expenses and, at the time that the indemnity or payment is made, the corporation is prohibited from giving the indemnity or paying the expenses by its memorandum or articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • if, in relation to the subject matter of the eligible proceeding, the eligible party did not act honestly and in good faith with a view to the best interests of the corporation or the associated corporation, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in the case of an eligible proceeding other than a civil proceeding, if the eligible party did not have reasonable grounds for believing that the eligible party's conduct in respect of which the proceeding was brought was lawful.

If an eligible proceeding is brought against an eligible party by or on behalf of the corporation or by or on behalf of an associated corporation, the corporation must not (a) indemnify the eligible party in respect of the proceeding or (b) pay the expenses of the eligible party in respect of the proceeding.

A corporation may purchase and maintain insurance for the benefit of an eligible party or the heirs and personal or other legal representatives of the eligible party against any liability that may be incurred by reason of the eligible party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the corporation or an associated corporation.

The Registrant's articles provide that the Registrant's directors must cause the Registrant to indemnify its directors and former directors, and their respective heirs and personal or other legal representatives to the

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greatest extent permitted by Division 5 of Part 5 of the BCBCA and each director is deemed to have contracted with the Registrant on this term.

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended may be permitted to directors, officers or persons controlling the Registrant pursuant to the foregoing provisions, the Registrant has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is therefore unenforceable.

The Registrant maintains insurance policies relating to certain liabilities that its directors and officers may incur in such capacity.

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#### EXHIBITS

---

| | |
|:---|:---|
| **Exhibit <br> Number**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Description**  |
| 4.1\*  | [the management information circular dated June 10, 2025](tm264113d4_ex4-1.htm)  |
| 4.2\*  | [the annual information form dated September 22, 2025 for the year ended December 31, 2024](tm264113d4_ex4-2.htm)  |
| 4.3\*  | [the amended and restated audited consolidated financial statements for the years ended December 31, 2024 and 2023, together with the notes thereto and the independent auditor's report thereon](tm264113d4_ex4-3.htm)  |
| 4.4\*  | [The amended and restated management's discussion and analysis of the results of operations and financial condition for the years ended December 31, 2024 and 2023](tm264113d4_ex4-4.htm)  |
| 4.5\*  | [the amended and restated interim consolidated financial statements for the three and nine months ended September 30, 2025 and 2024](tm264113d4_ex4-5.htm)  |
| 4.6\*  | [the amended and restated management's discussion and analysis of the results of operations and financial condition of for the nine months ended September 30, 2025 and 2024](tm264113d4_ex4-6.htm)  |
| 4.7\*  | [the material change report dated January 14, 2025](tm264113d4_ex4-7.htm)  |
| 4.8\*  | [the material change report dated March 13, 2025](tm264113d4_ex4-8.htm)  |
| 4.9\*  | [the material change report dated July 23, 2025](tm264113d4_ex4-9.htm)  |
| 4.10\*  | [the material change report dated September 25, 2025](tm264113d4_ex4-10.htm)  |
| 4.11  | [The material change report dated October 9, 2025](tm264113d4_ex4-11.htm)  |
| 5.1\*  | [Consent of Davidson & Company LLP](tm264113d4_ex5-1.htm)  |
| 5.2\*  | [Consent of Kevin Wells](tm264113d4_ex5-2.htm) |
| 5.3\*  | [Consent of James N Gray](tm264113d4_ex5-3.htm)  |
| 6.1\*  | [Power of Attorney (included on the signature page of this registration statement)](#tPOA)  |
| 107\*  | [Calculation of Filing Fee Table](tm264113d3_ex-filingfees.htm)  |

---

\*

Filed herewith.

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#### PART III UNDERTAKING AND CONSENT TO SERVICE OF PROCESS

#### Item 1. Undertaking
The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Securities and Exchange Commission (the "**SEC**") staff, and to furnish promptly, when requested to do so by the SEC staff, information relating to the securities registered pursuant to Form F-10 or to transactions in said securities.

#### Item 2. Consent to Service of Process
Concurrent with the filing of the Registration Statement on Form F-10, the Registrant is filing with the SEC a written irrevocable consent and power of attorney on Form F-X.

Any change to the name or address of the agent for service of the Registrant shall be communicated promptly to the SEC by amendment to Form F-X referencing the file number of this Registration Statement.

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#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-10 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Vancouver, Province of British Columbia, Canada, on this 29<sup>th</sup> day of January, 2026.

#### NICOLA MINING INC.
By:

*/s/ Peter Espig*

Name:

Peter Espig

Title:

President, Chief Executive Officer and Director

#### POWER OF ATTORNEY
Each person whose signature appears below constitutes and appoints Peter Espig as the individual's true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this registration statement, including post-effective amendments to this registration statement and registration statements filed pursuant to Rule 429 under the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto, and other documents and in connection therewith, with the SEC, granting unto said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, and hereby ratifies and confirms all his said attorney-in-fact and agent or his substitute or substitutes may lawfully do or cause to be done by virtue hereof.

This Power of Attorney may be executed in multiple counterparts, each of which shall be deemed an original, but which taken together shall constitute one instrument.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

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| |
|:---|
| */s/ Peter Espig* <br>Peter Espig  |
| President, Chief Executive Officer and Director <br> (Principal Executive Officer) <br> Date: January 29, 2026 |
| */s/ Sam Wong* <br>Sam Wong <br> Chief Financial Officer <br> (Principal Financial Officer and Principal <br> Accounting Officer) <br> Date: January 29, 2026  |
| */s/ Frank Hogel* <br>Frank Hogel <br> Director <br> Date: January 29, 2026  |
| */s/ Paul Johnson* <br>Paul Johnston <br> Director <br> Date: January 29, 2026  |

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| |
|:---|
| */s/ Malcolm Swallow* <br>Malcolm Swallow <br> Director <br> January 29, 2026  |
| */s/ Brent Omland <br>Brent Omland*  |
| Authorized Representative in the United States and Director <br> Date: January 29, 2026 |

---

------

## Exhibit 4.1

**Exhibit 4.1**

**NICOLA MINING INC.**

3329 Aberdeen Road

Lower Nicola, British Columbia, V0K 1Y0

**NOTICE OF ANNUAL GENERAL AND SPECIAL MEETING OF** **SHAREHOLDERS** 

**TO BE HELD ON JULY 11, 2025**

**AND**

**INFORMATION CIRCULAR**

*June 10, 2025*

*This document requires immediate attention. If you are in doubt as to how to deal with the documents or matters referred to in this notice and information circular, you should immediately contact your advisor.*

**NICOLA MINING INC.**

3329 Aberdeen Road

Lower Nicola, British Columbia, V0K 1Y0

Telephone: (604) 647-0142

**NOTICE OF ANNUAL GENERAL AND SPECIAL MEETING**

**TO THE SHAREHOLDERS:**

**NOTICE IS HEREBY GIVEN** that the annual general and special meeting (the "**Meeting**") of shareholders of Nicola Mining Inc. (the "**Company**") will be held at the offices of Cozen O'Connor LLP, Bentall 5, 550 Burrard Street, Suite 2501, Vancouver, British Columbia, V6C 2B5, on Friday, July 11, 2025, at the hour of 10:00 a.m. (Vancouver time) for the following purposes:

1. to receive the audited financial statements
 of the Company for the fiscal year ended December 31, 2024, and the accompanying report of
 the auditors;

2. to set the number of directors of the Company
 at five (5);

3. to elect Peter Espig, Frank Högel, Paul
 Johnston, Malcolm Swallow and Brent Omland as directors of the Company;

4. to appoint Crowe MacKay LLP, Chartered Professional
 Accountants, as the auditors of the Company for the fiscal year ending December 31, 2025
 and to authorize the directors of the Company to fix the remuneration to be paid to the auditors
 for the fiscal year ending December 31, 2025;

5. to consider and, if thought fit, to re-approve
 and confirm the Company's 2022 Equity Incentive Plan, including re-approval of a 10%
 rolling plan for stock options and a fixed plan of 14,587,604 common shares for performance-based
 awards of restricted share units, performance share units and deferred share units, all as
 described in the accompanying management information circular (the "**Information Circular** "); and

6. to transact such further or other business
 as may properly come before the Meeting and any adjournment or postponement thereof.

The accompanying Information Circular provides additional information relating to the matters to be dealt with at the Meeting and is supplemental to, and expressly made a part of, this notice of Meeting (the "**Notice of Meeting**").

The Company's board of directors has fixed June 3, 2025 as the record date for the determination of shareholders entitled to notice of and to vote at the Meeting and at any adjournment or postponement thereof. Each registered shareholder at the close of business on that date is entitled to such notice and to vote at the Meeting in the circumstances set out in the accompanying Information Circular.

As always, the Company encourages shareholders to vote prior to the Meeting. Shareholders are encouraged to vote on the matters before the Meeting by proxy.

If you are a registered shareholder of the Company and unable to attend the Meeting in person, please vote by proxy by following the instructions provided in the form of proxy at least 48 hours (excluding Saturdays, Sundays and holidays recognized in the Province of British Columbia) before the time and date of the Meeting or any adjournment or postponement thereof.

If you are a non-registered shareholder of the Company and received this Notice of Meeting and accompanying materials through a broker, a financial institution, a participant, or a trustee or administrator of a retirement savings plan, retirement income fund, education savings plan or other similar savings or investment plan registered under the *Income Tax Act* (Canada), or a nominee of any of the foregoing, that holds your securities on your behalf (each, an "**Intermediary**"), please complete and return the materials in accordance with the instructions provided to you by your Intermediary.

**DATED** at Lower Nicola, British Columbia, this 10<sup>th</sup> day of June, 2025.

By Order of the Board of Directors of

---

| |
|:---|
| **NICOLA MINING INC.** |
| "Peter Espig" |
| Peter Espig |
| President, Chief Executive Officer and Director |

---

**NICOLA MINING INC.**

3329 Aberdeen Road

Lower Nicola, British Columbia, V0K 1Y0

Telephone: (604) 647-0142

**INFORMATION CIRCULAR**

**June 10, 2025**

**INTRODUCTION**

This information circular (the "**Information Circular**") accompanies the notice of annual general and special meeting of shareholders (the "**Notice**") of Nicola Mining Inc. (the "**Company**") and is furnished to shareholders (each, a "**Shareholder**") holding common shares (each, a "**Share**") in the capital of the Company in connection with the solicitation by the management of the Company of proxies to be voted at the annual general and special meeting (the "**Meeting**") of the Shareholders to be held at 10:00 a.m. (Vancouver time) on Friday, July 11, 2025 at the offices of Cozen O'Connor LLP, Bentall 5, 550 Burrard Street, Suite 2501, Vancouver, British Columbia, V6C 2B5, or at any adjournment or postponement thereof.

**Date and Currency**

The date of this Information Circular is June 10, 2025. Unless otherwise stated, all amounts herein are in Canadian dollars.

**PROXIES AND VOTING RIGHTS**

**Management Solicitation**

The solicitation of proxies by management of the Company will be conducted by mail and may be supplemented by telephone or other personal contact to be made without special compensation to any of the directors, officers and employees of the Company. The Company does not reimburse Shareholders, nominees or agents for costs incurred in obtaining from their principals authorization to execute forms of proxy, except that the Company has requested brokers and nominees who hold stock in their respective names to furnish this proxy material to their customers who are NOBOs (as defined below), and the Company will reimburse such brokers and nominees for their related out of pocket expenses. No solicitation will be made by specifically engaged employees or soliciting agents. The cost of solicitation will be borne by the Company.

No person has been authorized to give any information or to make any representation other than as contained in this Information Circular in connection with the solicitation of proxies. If given or made, such information or representations must not be relied upon as having been authorized by the Company. The delivery of this Information Circular shall not create, under any circumstances, any implication that there has been no change in the information set forth herein since the date of this Information Circular. This Information Circular does not constitute the solicitation of a proxy by anyone in any jurisdiction in which such solicitation is not authorized, or in which the person making such solicitation is not qualified to do so, or to anyone to whom it is unlawful to make such an offer of solicitation.

**Appointment of Proxy**

Registered Shareholders are entitled to vote at the Meeting. Shareholders are entitled to one vote for each Share held on the record date of June 3, 2025 on the resolutions to be voted upon at the Meeting, and any other matter to come before the Meeting.

The persons named as proxyholders in the enclosed form of proxy (the "**Designated Persons**") are directors and/or officers of the Company.

**A SHAREHOLDER HAS THE RIGHT TO APPOINT A PERSON OR COMPANY (WHO NEED NOT BE A SHAREHOLDER) OTHER THAN THE DESIGNATED PERSONS NAMED IN THE ENCLOSED FORM OF PROXY TO ATTEND AND ACT FOR OR ON BEHALF OF THAT SHAREHOLDER AT THE MEETING.**

**A SHAREHOLDER MAY EXERCISE THIS RIGHT BY INSERTING THE NAME OF SUCH OTHER PERSON IN THE BLANK SPACE PROVIDED ON THE FORM OF PROXY. SUCH SHAREHOLDER SHOULD NOTIFY THE NOMINEE OF THE APPOINTMENT, OBTAIN THE NOMINEE'S CONSENT TO ACT AS PROXY AND SHOULD PROVIDE INSTRUCTION TO THE NOMINEE ON HOW THE SHAREHOLDER'S SHARES SHOULD BE VOTED. THE NOMINEE SHOULD BRING PERSONAL IDENTIFICATION TO THE MEETING.**

The Shareholder may vote by mail, by telephone or via the Internet by following instructions provided in the form of proxy at least 48 hours (excluding Saturdays, Sundays and holidays recognized in the Province of British Columbia) prior to the scheduled time of the Meeting, or any adjournment or postponement thereof. The Chairman of the Meeting, in his sole discretion, may accept completed forms of proxy on the day of the Meeting or any adjournment or postponement thereof.

A proxy may not be valid unless it is dated and signed by the Shareholder who is giving it or by that Shareholder's attorney-in-fact duly authorized by that Shareholder in writing or, in the case of a corporation, dated and executed by a duly authorized officer or attorney-in-fact for the corporation. If a form of proxy is executed by an attorney-in-fact for an individual Shareholder or joint Shareholders, or by an officer or attorney-in-fact for a corporate Shareholder, the instrument so empowering the officer or attorney-in-fact, as the case may be, or a notarially certified copy thereof, must accompany the form of proxy.

**Revocation of Proxies**

A Shareholder who has given a proxy may revoke it at anytime before it is exercised by an instrument in writing: (a) executed by that Shareholder or by that Shareholder's attorney-in -fact, authorized in writing, or, where the Shareholder is a corporation, by a duly authorized officer of, or attorney-in-fact for, the corporation; and (b) delivered either: (i) to the Company at the address set forth above, at any time up to and including the last business day preceding the day of the Meeting or, if adjourned or postponed, any reconvening thereof, or (ii) to the Chairman of the Meeting prior to the vote on matters covered by the proxy on the day of the Meeting or, if adjourned or postponed, any reconvening thereof, or (iii) in any other manner provided by law.

Also, a proxy will automatically be revoked by either: (i) attendance at the Meeting and participation in a poll (ballot) by a Shareholder, or (ii) submission of a subsequent proxy in accordance with the foregoing procedures. A revocation of a proxy does not affect any matter on which a vote has been taken prior to any such revocation.

**Voting of Shares and Proxies and Exercise of Discretion by Designated Persons**

A Shareholder may indicate the manner in which the Designated Persons are to vote with respect to a matter to be voted upon at the Meeting by marking the appropriate space on the proxy. **The Shares represented by a proxy will be voted or withheld from voting in accordance with the instructions of the Shareholder on any ballot that may be called for and if the Shareholder specifies a choice with respect to any matter to be acted upon, the Shares will be voted accordingly.**

**IF NO CHOICE IS SPECIFIED IN THE PROXY WITH RESPECT TO A MATTER TO BE ACTED UPON, THE PROXY CONFERS DISCRETIONARY AUTHORITY WITH RESPECT TO THAT MATTER UPON THE DESIGNATED PERSONS NAMED IN THE FORM OF PROXY. IT IS INTENDED THAT THE DESIGNATED PERSONS WILL VOTE THE SHARES REPRESENTED BY THE PROXY IN FAVOUR OF EACH MATTER IDENTIFIED IN THE PROXY.**

The enclosed form of proxy confers discretionary authority upon the persons named therein with respect to other matters which may properly come before the Meeting, including any amendments or variations to any matters identified in the Notice, and with respect to other matters which may properly come before the Meeting. At the date of this Information Circular, management of the Company is not aware of any such amendments, variations, or other matters to come before the Meeting.

In the case of abstentions from, or withholding of, the voting of the Shares of a Shareholder on any matter, the Shares that are the subject of the abstention or withholding will be counted for determination of a quorum, but will not be counted as affirmative or negative on the matter to be voted upon.

**ADVICE TO BENEFICIAL SHAREHOLDERS**

**The information set out in this section is of significant importance to those Shareholders who do not hold Shares in their own name. Shareholders who do not hold their Shares in their own name (referred to in this Information Circular as "Beneficial Shareholders") should note that only proxies deposited by Shareholders whose names appear on the records of the Company as the registered holders of Shares can be recognized and acted upon at the Meeting.** If Shares are listed in an account statement provided by a broker, then in almost all cases those Shares will not be registered in the Beneficial Shareholder's name on the records of the Company. Such Shares will more likely be registered under the names of the Beneficial Shareholder's broker or an agent of that broker. In the United States, the vast majority of such Shares are registered under the name of Cede & Co. as nominee for The Depository Trust Company (which acts as depositary for many U.S. brokerage firms and custodian banks), and in Canada, under the name of CDS & Co. (the registration name for The Canadian Depository for Securities Limited, which acts as nominee for many Canadian brokerage firms). **Beneficial Shareholders should ensure that instructions respecting the voting of their Shares are communicated to the appropriate person well in advance of the Meeting.**

The Company does not have access to the names of all Beneficial Shareholders. Applicable regulatory policy requires intermediaries/brokers to seek voting instructions from Beneficial Shareholders in advance of Shareholders' meetings. Every intermediary/broker has its own mailing procedures and provides its own return instructions to clients, which should be carefully followed by Beneficial Shareholders in order to ensure that their Shares are voted at the Meeting. The form of proxy supplied to a Beneficial Shareholder by his, her or its broker (or the agent of the broker) is similar to the form of proxy provided to registered Shareholders by the Company. However, its purpose is limited to instructing the registered Shareholder (the broker or agent of the broker) how to vote on behalf of the Beneficial Shareholder. The majority of brokers now delegate responsibility for obtaining instructions from clients to Broadridge Financial Solutions, Inc. ("**Broadridge**") in the United States and in Canada. Broadridge typically prepares a special voting instruction form, mails this form to the Beneficial Shareholders and asks for appropriate instructions regarding the voting of Shares to be voted at the Meeting. If Beneficial Shareholders receive the voting instruction forms from Broadridge, they are requested to complete and return the voting instruction forms to Broadridge by mail or facsimile. Alternatively, Beneficial Shareholders can call a toll-free number and access Broadridge's dedicated voting website (each as noted on the voting instruction form) to deliver their voting instructions and to vote the Shares held by them. Broadridge then tabulates the results of all instructions received and provides appropriate instructions respecting the voting of Shares to be represented at the Meeting. **A Beneficial Shareholder receiving a Broadridge voting instruction form cannot use that form as a proxy to vote Shares directly at the Meeting – the voting instruction form must be returned to Broadridge well in advance of the Meeting in order to have the applicable Shares voted at the Meeting.**

Although a Beneficial Shareholder may not be recognized directly at the Meeting for the purposes of voting Shares registered in the name of his, her or its broker (or agent of the broker), a Beneficial Shareholder may attend at the Meeting as proxyholder for the registered Shareholder and vote the Shares in that capacity. Beneficial Shareholders who wish to attend at the Meeting and indirectly vote their Shares as proxyholder for the registered Shareholder should enter their own names in the blank space on the instrument of proxy provided to them and return the same to their broker (or the broker's agent) in accordance with the instructions provided by such broker (or agent), well in advance of the Meeting.

Alternatively, a Beneficial Shareholder may request in writing that his, her or its broker send to the Beneficial Shareholder a legal proxy which would enable the Beneficial Shareholder to attend at the Meeting and vote his, her or its Shares.

Beneficial Shareholders consist of non-objecting beneficial owners (each, a "**NOBO**") and objecting beneficial owners (each, an "**OBO**"). A NOBO is a beneficial owner of securities that has provided instructions to an intermediary holding the securities in an account on behalf of the beneficial owner that the beneficial owner does not object, for that account, to the intermediary disclosing ownership information about the beneficial owner under National Instrument 54-101 *Communication with Beneficial Owners of Securities of a Reporting Issuer* ("**NI 54-101**") of the Canadian Securities Administrators. An OBO means a beneficial owner of securities that has provided instructions to an intermediary holding the securities in an account on behalf of the beneficial owner that the beneficial owner objects, for that account, to the intermediary disclosing ownership information about the beneficial owner under NI 54-101.

The Company is sending proxy-related materials directly to NOBOs of the Shares. The Company will not pay for the delivery of proxy-related materials to OBOs of the Shares under NI 54-101 and Form 54-101F7 – *Request for Voting Instructions Made by Intermediary*. The OBOs of the Shares will not receive the materials unless their intermediary assumes the costs of delivery.

All references to Shareholders in this Information Circular are to registered Shareholders, unless specifically stated otherwise.

**VOTING SECURITIES AND PRINCIPAL HOLDERS OF VOTING SECURITIES**

The Company is authorized to issue an unlimited number of Shares without par value. As of the record date, determined by the board of directors of the Company (the "**Board**") to be the close of business on June 3, 2025 (the "**Record Date**"), a total of 177,071,368 Shares were issued and outstanding. Each Share carries the right to one vote at the Meeting.

Only registered Shareholders as of the Record Date are entitled to receive notice of, and to attend and vote at, the Meeting or any adjournment or postponement of the Meeting.

To the knowledge of the directors and executive officers of the Company, no person or company beneficially owns, directly or indirectly, or exercises control or direction over, Shares carrying more than 10% of the voting rights attached to the outstanding Shares, other than as set forth below:

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| | | |
|:---|:---|:---|
| <br>**Name of**<br>**Shareholder** |<br>**Number of**<br>**Common Shares Owned** | **Percentage**<br>**of Outstanding**<br>**Common Shares**<sup>(1)</sup> |
| Concept Capital Management | 38054331<sup>(2)</sup> | 21.49% |

---

<sup>(1)</sup> Based on 177,071,368 Shares issued and outstanding as of June 3, 2025. Each Share carries the right to one vote at the Meeting.

<sup>(2)</sup> Does not include 22,941,176 Shares that may be issuable on conversion of a convertible debenture in the principal amount of $3,900,000, at a deemed conversion price of $0.17 per Share, all of which may be exercised or converted within the next 60 days.

**FINANCIAL STATEMENTS**

The audited financial statements of the Company for the year ended December 31, 2024 together with the auditor's report thereon, will be presented to the Shareholders at the Meeting. The Company's financial statements and management discussion and analysis are available on SEDAR+ at www.sedarplus.ca.

**NUMBER OF DIRECTORS**

At the Meeting, Shareholders will be asked to pass an ordinary resolution to set the number of directors of the Company at five (5). An ordinary resolution needs to be passed by a simple majority of the votes cast by the Shareholders present in person or represented by proxy and entitled to vote at the Meeting.

**Management of the Company recommends the approval of setting the number of directors of the Company at five (5).**

**ELECTION OF DIRECTORS**

At present, the directors of the Company are elected at each annual general meeting and hold office until the next annual general meeting, or until their successors are duly elected or appointed in accordance with the Company's Articles or until such director's earlier death, resignation or removal. In the absence of instructions to the contrary, the enclosed form of proxy will be voted for the nominees listed in the form of proxy, all of whom are presently members of the Board.

Management of the Company proposes to nominate the persons named in the table below for election by the Shareholders as directors of the Company. Information concerning such persons, as furnished by the individual nominees, is as follows:

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| | | |
|:---|:---|:---|
| **Name,**<br>**Province,**<br>**Country of Residence**<br>**and Position(s)**<br>**with the Company** | <br>**Principal Occupation,**<br>**Business or Employment**<br>**for Last Five Years** | **Periods during**<br>**which**<br>**Nominee has**<br>**Served**<br>**as a Director** |
| &nbsp;&nbsp;Peter Espig<sup>(2)(4)</sup><br> British Columbia, Canada <br>*President, Chief Executive Officer and Director*  | Mr. Espig has been the President and CEO of the Company since November 7, 2013. The former Goldman Sachs banker and Olympus Capital Partners executive founded TriAsia Capital, a private equity and consulting firm focused on raising capital for mid-sized companies and pre-initial public offering investment in 2006. Mr. Espig is a founding director of Phosplatin Therapeutics, a private biopharmaceutical company, and has been a board member of that company since November 2010. He has been involved in several public and private companies, as well as charitable organizations. He is currently a director of First Lithium Minerals Corp., a mineral exploration and development company listed on the TSX Venture Exchange (the "**Exchange**"). Mr. Espig is a pioneer of SPACs, having completed two transactions with a combined value of greater than US$1.0 BN. He received his MBA from Columbia Business School, where he was a Chazen International Scholar. | May 2, 2011 to present 5685959<sup>(5)</sup> |
| &nbsp;&nbsp;Frank Högel<sup>(2)(3)(4)</sup><br> Baden-Württemberg Germany<br>*Director*  | Mr. Högel is an asset manager actively involved in the financial evaluation of companies and convertible debenture structuring. He has also served as President and Chief Executive Officer of Peter Beck Performance Funds and Peter Beck and Partner Asset Management Company Limited since 2002. He is also currently involved in other Exchange listed companies. | November 21, 2014 to present 117144<sup>(6)</sup> |
| &nbsp;&nbsp;Paul Johnston<sup>(4)</sup><br> British Columbia, Canada<br>*Director*  | Dr. Johnston is a geologist with more than 25 years of experience in the mining industry and has accumulated extensive international experience in early to advanced stage exploration for gold, copper, and zinc. He is currently Vice President of Exploration for Element 29 Resources Inc. Dr. Johnston began his career in the late 1980s as a mine geologist before joining Teck Resources, where he worked in a variety of international positions. He holds a PhD from Queen's University and is a member of the Association of Professional Engineers and Geoscientists of British Columbia. | May 13, 2016 to present50000<sup>(7)</sup> |

---

---

| | | |
|:---|:---|:---|
| **Name,**<br>**Province,**<br>**Country of Residence**<br>**and Position(s)**<br>**with the Company** | <br>**Principal Occupation,**<br>**Business or Employment**<br>**for Last Five Years** | **Periods during**<br>**which**<br>**Nominee has**<br>**Served**<br>**as a Director** |
| &nbsp;&nbsp;Malcolm Swallow<sup>(2)(3)</sup><br> British Columbia, Canada<br>*Director* | Mr. Swallow qualified as a Mining Engineer in 1971 from the Royal School of Mines and has been a Fellow of the Institute of Mining and Metallurgy, a Chartered Engineer, a European Engineer and a Professional Engineer in BC from 1994 until his retirement from professional practice in 2020. He has consulted on both open pit and underground mining and specialized over the latter half of his career in mine development and project management on a number of significant projects. Mr. Swallow was a director of NorZinc Ltd., a junior mining company listed on the Toronto Stock Exchange (the "**TSX**"), the Frankfurt Stock Exchange and the Over-The-Counter Bulletin Board, from 2016 to 2020 and a director of Silvercorp Metals Inc., a mining company listed on the TSX and American Stock Exchange, from 2013 to 2017. | October 5, 2021 to present Nil<sup>(7)</sup> |
| &nbsp;&nbsp;Brent Omland<sup>(3)</sup><br> Connecticut, United States<br>*Director*  | Mr. Omland has been the Chief Executive Officer and as a Director of Ocean Partners Holdings Limited ("**Ocean Partners**") since 2013. In 2023, Mr. Omland was appointed to the role of co-CEO of Ocean Partners. Before joining Ocean Partners, Mr. Omland was the Chief Financial Officer for Ivernia Inc. and Enirgi Metals Group, companies focused on lead mining and secondary lead smelting in Australia. Mr. Omland also worked in finance roles for Teck Cominco. Mr. Omland is a graduate of the University of British Columbia (Commerce) and a Canadian Chartered Accountant with 20 years of experience in the mining, metals, and trading business. He also serves on the boards of Galantas Gold Corporation and Cygnus Metals Limited, both junior mining companies listed on the Exchange. He is also a director of DynaResource Inc., a mining company listed on the OTC market in the United States and Canadian Copper Inc., a mining company listed on the Canadian Securities Exchange (the "**CSE**"). | January 30, 2023 Nil<sup>(8)</sup> |

---

<sup>(1)</sup> Shares beneficially owned, directly or indirectly, or over which control or direction is exercised, as at June 3, 2025, based upon information furnished to the Company by the individual directors.

 

<sup>(2)</sup> Member of the Audit Committee of the Company.

 

<sup>(3)</sup> Member of the Compensation Committee of the Company.

 

<sup>(4)</sup> Member of the Corporate Governance Committee of the Company.

 

<sup>(5)</sup> Does not include: (a) 2,575,000 Shares issuable upon exercise of 2,575,000 options, each of which is exercisable into one Share, of which 500,000 are exercisable at a price of $0.30 per Share until January 8, 2026, 375,000 are exercisable at a price of $0.22 per Share until October 5, 2026, 1,000,000 are exercisable at a price of $0.16 per Share until September 28, 2027 and 700,000 are exercisable at a price of $0.265 until April 18, 2029, all of which may be exercised or converted within the next 60 days.

 

<sup>(6)</sup> Does not include 1,200,000 Shares issuable upon exercise of 1,200,000 options held directly, each of which is exercisable into one Share, of which 500,000 are exercisable at a price of $0.16 per Share until September 28, 2027 and 700,000 are exercisable at a price of $0.265 until April 18, 2029, all exercisable within 60 days.

<sup>(7)</sup> Does not include 350,000 Shares issuable upon exercise of 350,000 options, each of which is exercisable into one Share, of which 75,000 are exercisable at a price of $0.22 per Share until October 5, 2026, 125,000 are exercisable at a price of $0.16 per Share until September 28, 2027 and 150,000 are exercisable at a price of $0.265 until April 18, 2029, all of which may be exercised or converted within the next 60 days.

 

<sup>(8)</sup> Does not include 150,000 Shares issuable upon exercise of the 150,000 options each of which are exercisable into one Share, at a price of $0.265 until April 18, 2029, all of which may be exercised or converted within the next 60 days.

**Management of the Company recommends the election of each of the nominees listed above as a director of the Company for the ensuing year.**

*Orders*

Except as disclosed below, no proposed director of the Company is, or within the ten (10) years before the date of this Information Circular has been, to the best of management's knowledge, a director, chief executive officer ("**CEO**") or chief financial officer ("**CFO**") of any company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) was subject to a cease trade order, an
 order similar to a cease trade order, or an order that denied the relevant company access
 to any exemption under securities legislation, that was in effect for a period of more than
 30 consecutive days that was issued while the proposed director was acting in the capacity
 as director, CEO or CFO; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) was subject to a cease trade order, an
 order similar to a cease trade order, or an order that denied the relevant company access
 to any exemption under securities legislation, that was in effect for a period of more than
 30 consecutive days that was issued after the proposed director ceased to be a director,
 CEO or CFO and which resulted from an event that occurred while that person was acting in
 the capacity as director, CEO or CFO.

Mr. Högel was a director of Oremex Silver Inc. ("**Oremex**") (now called Monarca Minerals Inc.) when cease trade orders were issued by the British Columbia Securities Commission on April 1, 2014 and June 3, 2014, and the Alberta Securities Commission on September 2, 2014, as a result of the failure of Oremex to file financial statements for the year ended November 30, 2013, interim financial statements for the period ended February 28, 2014 and a Form 51-102F1 – *Management's Discussion and Analysis* for the periods ended November 30, 2013 and February 28, 2014. The cease trade orders were lifted on February 9, 2016. Mr. Högel is still a director of Oremex.

*Bankruptcies*

Except as disclosed below, no proposed director of the Company is, or within ten (10) years before the date of this Information Circular, has been, a director or an executive officer of any company that, while the person was acting in that capacity, or within a year of that person ceasing to act in the capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or was subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold its assets or made a proposal under any legislation relating to bankruptcies or insolvency.

On July 26, 2013, the Company, after careful consideration of all available alternatives, sought creditor protection under the *Companies' Creditors Arrangement Act* (Canada) (the "**CCAA**") and obtained a stay order (the "**Initial Order**") from the Supreme Court of British Columbia (the "**Court**") (the "**CCAA Proceedings**"). The Company sought the protection because it was hampered by the equity markets, debt repayments, commodity prices and operational challenges. The CCAA Proceedings applied to the Company and its wholly-owned subsidiaries, Huldra Properties Inc., Huldra Holdings Inc. and 0913103 B.C. Ltd. (collectively, the "**Applicants**"). Grant Thornton LLP (the "**Monitor**") had been appointed by the Court as monitor in the proceedings and was responsible for reviewing the Company's ongoing operations, liaising with creditors and other stakeholders and reporting to the Court.

The Initial Order provided for a stay of proceedings against the Applicants and their property for an initial period ending August 26, 2013, which the Court extended to November 24, 2014.

The Company implemented the restructuring of its debts and obligations under the Company's Plan of Compromise and Arrangement dated August 8, 2014 (the "**Plan**"). The Plan was prepared by the Company in connection with the CCAA Proceedings under the CCAA and was approved by the creditors of the Company on September 23, 2014 and sanctioned by the Court on October 10, 2014. The Monitor filed the certificate of Plan implementation with the Court on November 21, 2014. On December 9, 2015, the Company successfully fulfilled its obligations pursuant to the CCAA Proceedings.

To the best of management's knowledge, no proposed director of the Company has, within the ten (10) years before the date of this Information Circular, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the proposed director.

*Penalties and Sanctions*

To the best of management's knowledge, no proposed director of the Company has been subject to: (a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or (b) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable securityholder in deciding whether to vote for a proposed director.

**STATEMENT OF EXECUTIVE COMPENSATION**

**General**

For the purpose of this Statement of Executive Compensation:

"**compensation securities**" includes stock options (each, an "**Option**"), convertible securities, exchangeable securities and similar instruments including stock appreciation rights, deferred share units and restricted stock units granted or issued by the Company or one of its subsidiaries (if any) for services provided or to be provided, directly or indirectly to the Company or any of its subsidiaries (if any);

"**NEO**" or "**named executive officer**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each individual who served as CEO of the
 Company, or who performed functions similar to a CEO, during any part of the most recently
 completed financial year,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each individual who served as CFO of the
 Company, or who performed functions similar to a CFO, during any part of the most recently
 completed financial year,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the most highly compensated executive
 officer of the Company or any of its subsidiaries (if any) other than individuals identified
 in paragraphs (a) and (b) at the end of the most recently completed financial year whose
 total compensation was more than $150,000, as determined in accordance with subsection 1.3(5)
 of Form 51-102F6V, for that financial year, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) each individual who would be a NEO under
 paragraph (c) but for the fact that the individual was neither an executive officer of the
 Company or its subsidiaries (if any), nor acting in a similar capacity, at the end of that
 financial year;

"**plan**" includes any plan, contract, authorization or arrangement, whether or not set out in any formal document, where cash, compensation securities or any other property may be received, whether for one or more persons; and

"**underlying securities**" means any securities issuable on conversion, exchange or exercise of compensation securities.

**Director and Named Executive Officer Compensation, excluding Compensation Securities**

The following table sets forth all direct and indirect compensation paid, payable, awarded, granted, given or otherwise provided, directly or indirectly, by the Company thereof to each NEO and each director of the Company, in any capacity, including, for greater certainty, all plan and non-plan compensation, direct and indirect pay, remuneration, economic or financial award, reward, benefit, gift or perquisite paid, payable, awarded, granted, given or otherwise provided to the NEO or director for services provided and for services to be provided, directly or indirectly, to the Company:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;**Name and**<br>&nbsp;&nbsp;**Position** | <br>**Fiscal Year**<br>**Ended**<br>**December**<br>**31** | **Salary,**<br>**Consulting**<br>**Fee, Retainer**<br>**or**<br>**Commission**<br>**($)** | <br>**Bonus**<br>**($)** | <br>**Committee**<br>**or Meeting**<br>**Fees**<br>**($)** | <br>**Value of**<br>**Perquisites<sup>(1)</sup>**<br>**($)** | <br>**Value of all**<br>**other**<br>**Compensation**<br>**($)** | <br>**Total**<br>**Compensation**<br>**($)** |
| &nbsp;&nbsp;Peter Espig<sup>(2)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;*President,* | 2024 | 210000<sup>(3)</sup> | 50000 | Nil | Nil | Nil | 260000 |
| &nbsp;&nbsp;*CEO and* | 2023 | 210000<sup>(3)</sup> | 48000 | Nil | Nil | Nil | 258000 |
| &nbsp;&nbsp;*Director* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Sam Wong<sup>(4)</sup> | 2024 | 83250<sup>(5)</sup> | Nil | Nil | Nil | Nil | 83250 |
| &nbsp;&nbsp;*CFO* | 2023 | N/A | N/A | N/A | N/A | N/A | Nil |
| &nbsp;&nbsp;William |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cawker<sup>(6)</sup> | 2024 | 84000 | Nil | Nil | Nil | Nil | 84000 |
| &nbsp;&nbsp;*Secretary* | 2023 | N/A | N/A | N/A | N/A | N/A | N/A |
| &nbsp;&nbsp;Warwick |  |  |  |  |  |  |  |
| &nbsp;&nbsp;<sub>Bay</sub>(7) | 2024 | 37792 | Nil | Nil | Nil | Nil | 37792 |
| &nbsp;&nbsp;*Former CFO* | 2023 | 120000 | 25000 | Nil | Nil | Nil | 145000 |
| &nbsp;&nbsp;*and Secretary* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Frank | 2024 | Nil | Nil | 25000 | Nil | Nil | 25000 |
| &nbsp;&nbsp;Högel<sup>(8)</sup> | 2023 | Nil | Nil | 20000 | Nil | Nil | 20000 |
| &nbsp;&nbsp;*Director* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Paul | 2024 | Nil | Nil | 15000 | Nil | Nil | 15000 |
| &nbsp;&nbsp;Johnston<sup>(9)</sup> | 2023 | Nil | Nil | 15000 | Nil | Nil | 15000 |
| &nbsp;&nbsp;*Director* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Malcolm |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Swallow<sup>(10)</sup> | 2024 | Nil | Nil | 15000 | Nil | Nil | 15000 |
| &nbsp;&nbsp;*Director* | 2023 | Nil | Nil | 15000 | Nil | Nil | 15000 |
| &nbsp;&nbsp;Brent | 2024 | Nil | Nil | 15000 | Nil | Nil | 15000 |
| &nbsp;&nbsp;Omland <sup>(11)</sup> | 2023 | Nil | Nil | Nil | Nil | Nil | Nil |
| &nbsp;&nbsp;*Director* |  |  |  |  |  |  |  |

---

<sup>(1)</sup> "Perquisites" include perquisites provided to a NEO or director that are not generally available to all employees and that, in aggregate, are: (a) $15,000, if the NEO or director's total salary for the financial year is $150,000 or less, (b) 10% of the NEO or director's salary for the financial year if the NEO or director's total salary for the financial year is greater than $150,000 but less than $500,000, or (c) $50,000 if the NEO or director's total salary for the financial year is $500,000 or greater.

 

<sup>(2)</sup> Mr. Espig was appointed a director of the Company on May 2, 2011 and the CEO and President of the Company on November 7, 2013.

 

<sup>(3)</sup> Mr. Espig received $15,000 per month for the provision of services as President and CEO of the Company. Mr. Espig did not receive additional compensation for serving as a director of the Company.

 

<sup>(4)</sup> Mr. Wong was appointed the CFO of the Company on March 19, 2024.

 

<sup>(5)</sup> These fees were paid to RW Global Consulting Corp., a company wholly owned by Sam Wong.

 

<sup>(6)</sup> Mr. Cawker was appointed the Secretary of the Company on March 19, 2024.

 

<sup>(7)</sup> Mr. Bay was the CFO of the Company from January 20, 2015 to March 19, 2024 and the Secretary of the Company from January 31, 2015 to March 19, 2024.

 

<sup>(8)</sup> Mr. Högel was appointed a director of the Company on November 21, 2014.

 

<sup>(9)</sup> Mr. Johnston was appointed a director of the Company on May 13, 2016.

 

<sup>(10)</sup> Mr. Swallow was appointed a director of the Company on October 5, 2021.

 

<sup>(11)</sup> Mr. Omland was appointed a director of the Company on January 30, 2023.

**Stock Options and Other Compensation Securities**

The following table sets out all compensation securities granted or issued to each director and NEO by the Company or any subsidiary thereof in the year ended December 31, 2024 for services provided, or to be provided, directly or indirectly, to the Company or any subsidiary thereof:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** |
|  |  |  |  | **Closing** |  |
|  |  |  |  | **Price of** |  |
|  |  |  |  | **Security or** |  |
|  |  |  | **Issue,** | **Underlying** |  |
|  |  |  | **Conversion** | **Security on** |  |
|  | **Type of** |  | **or Exercise** | **Date of** |  |
| **Name and** | **Compensation** | **Date of Issue** | **Price** | **Grant** | **Expiry** |
| **Position** | **Security** | **or Grant** | **$** | **$** | $**Date** |
| &nbsp;&nbsp;Peter Espig President, CEO and Director | Options 700,000/700,000/6.73%<sup>(1)</sup> | April 18, 2024 | 0.265 | 0.265 | April 18, 2029 |
| &nbsp;&nbsp;Peter Espig President, CEO and Director | Restricted Share Units 325,582/325,582/32.55%<sup>(2)</sup> | December 18, 2024 | N/A | 0.30 | <sup>(3)</sup> |
| &nbsp;&nbsp;Sam Wong CFO | Options 400,000/400,000/3.85%<sup>(1)</sup> | April 18, 2024 | 0.265 | 0.265 | April 18, 2029 |
| &nbsp;&nbsp;Sam Wong CFO | Restricted Share Units 139,535/139,535/13.95%<sup>(2)</sup> | December 18, 2024 | N/A | 0.30 | <sup>(3)</sup> |
| &nbsp;&nbsp;William Cawker Secretary | Options 250,000/250,000/2.40%<sup>(1)</sup> | April 18, 2024 | 0.265 | 0.265 | April 18, 2029 |
| &nbsp;&nbsp;William Cawker Secretary | Restricted Share Units 69,767/69,767/7.00%<sup>(2)</sup> | December 18, 2024 | N/A | 0.30 | <sup>(3)</sup> |
| &nbsp;&nbsp;Warwick Bay Former CFO and Secretary | Nil | N/A | N/A | N/A | N/A |
| &nbsp;&nbsp;Frank Högel Director | Options 700,000/700,000/6.73%<sup>(1)</sup> | April 18, 2024 | 0.265 | 0.265 | April 18, 2029 |
| &nbsp;&nbsp;Frank Högel Director | Restricted Share Units 139,535/139,535/13.95%<sup>(2)</sup> | December 18, 2024 | N/A | 0.30 | <sup>(3)</sup> |
| &nbsp;&nbsp;Paul Johnston Director | Options 150,000/150,000/1.44%<sup>(1)</sup> | April 18, 2024 | 0.265 | 0.265 | April 18, 2029 |
| &nbsp;&nbsp;Paul Johnston Director | Restricted Share Units &nbsp;&nbsp;&nbsp;&nbsp;69,767/69,767/7.00%<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;December 18, 2024 | &nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;0.30 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(3)</sup> |
| &nbsp;&nbsp;Malcolm Swallow Director | Options 150,000/150,000/1.44%<sup>(1)</sup> | April 18, 2024 | 0.265 | 0.265 | April 18, 2029 |
| &nbsp;&nbsp;Malcolm Swallow Director | Restricted Share Units &nbsp;&nbsp;&nbsp;&nbsp;69,767/69,767/7.00%<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;December 18, 2024 | &nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;0.30 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(3)</sup> |
| &nbsp;&nbsp;Brent Omland Director | Options 150,000/150,000/1.44%<sup>(1)</sup> | April 18, 2024 | 0.265 | 0.265 | April 18, 2029 |
| &nbsp;&nbsp;Brent Omland Director |  |  |  |  |  |
| &nbsp;&nbsp;Brent Omland Director | Restricted Share Units 69,767/69,767/7.00%<sup>(2)</sup> | December 18, 2024 | N/A | 0.30 | <sup>(3)</sup> |

---

<sup>(1)</sup> Based on 10,400,000 Options outstanding as at December 31, 2024.

 

<sup>(2)</sup> Based on 1,000,000 restricted share units outstanding as at December 31, 2024.

 

<sup>(3)</sup> Each restricted share unit vests fully on December 31, 2025.

As at December 31, 2024:

(a) Peter Espig, the President, CEO and a director
 of the Company, owned an aggregate of 2,900,582 compensation securities, comprised of: (i)
 2,575,000 Options, each of which is exercisable into one Share, of which 500,000 are exercisable
 at a price of $0.30 per Share until January 8, 2026, 375,000 are exercisable at a price of
 $0.22 per Share until October 5, 2026, 1,000,000 are exercisable at a price of $0.16 per
 Share until September 28, 2027 and 700,000 are exercisable at a price of $0.265 until April
 18, 2029; and (ii) 325,582 restricted share units, which are vested into one Share on December
 31, 2025;

(b) Sam Wong, the CFO and Secretary of the Company,
 owned an aggregate of 539,535 compensation securities, comprised of: (i) 400,000 Options,
 each of which is exercisable into one Share exercisable at a price of $0.265 until April
 18, 2029; and (ii) 139,535 restricted share units, which are vested into one Share on December
 31, 2025;

(c) Warwick Bay, the former CFO and Secretary
 of the Company, did not own any compensation securities;

(d) Frank Högel, a director of the Company,
 owned an aggregate of 1,339,535 compensation securities, comprised of: (i) 1,200,000 Options,
 each of which is exercisable into one Share, of which 500,000 are exercisable at a price
 of $0.15 per share until September 28, 2027 and 700,000 are exercisable at a price of $0.265
 until April 18, 2029; and (ii) 139,535 restricted share units, which are vested into one
 Share on December 31, 2025;

(e) Paul Johnston, a director of the Company,
 owned an aggregate of 419,767 compensation securities, comprised of: (i) 350,000 Options,
 each of which is exercisable into one Share, of which 75,000 are exercisable at a price of
 $0.22 per Share until October 5, 2026, 125,000 are exercisable at a price of $0.16 per Share
 until September 28, 2027 and 150,000 are exercisable at a price of $0.265 until April 18,
 2029; and (ii) 69,767 restricted share units, which are vested into one Share on December
 31, 2025;

(f) Malcolm Swallow, a director of the Company,
 owned an aggregate of 419,757 compensation securities, comprised of: (i) 350,000 Options,
 each of which is exercisable into one Share, of which 75,000 are exercisable at a price of
 $0.22 per Share until October 5, 2026, 125,000 are exercisable at a price of $0.16 per Share
 until September 28, 2027 and 150,000 are exercisable at a price of $0.265 until April 18,
 2029; and (ii) 69,767 restricted share units, which are vested into one Share on December
 31, 2025;

(g) Brent Omland, a director of the Company, owned
 an aggregate of 219,767 compensation securities, comprised of: (i) 150,000 Options, each
 of which is exercisable into one Share exercisable at a price of $0.265 until April 18, 2029;
 and (ii) 69,767 restricted share units, which are vested into one Share on December 31, 2025;
 and

(h) Doug Robinson, a former director of the Company,
 did not own any compensation securities.

All of the Options set out above vested immediately on the date of grant.

**Exercise of Compensation Securities by Directors and NEOs**

During the year ended December 31, 2024, no compensation securities were exercised by directors and NEOs.

**Stock Option Plans and Other Incentive Plans**

The Company's current equity incentive plan (the "**2022 Plan**"), which was originally approved by the Board on May 12, 2022, provides flexibility to the Company to grant equity-based incentive awards in the form of Options, restricted share units (each, a "**RSU**"), performance share units (each, a "**PSU**") and deferred share units (each, a "**DSU**" and, collectively with the RSUs and PSUs, the "**Performance-Based Awards**") to eligible persons.

The purpose of the 2022 Plan is to promote the long-term success of the Company and the creation of shareholder value by: (i) encouraging the attraction and retention of eligible persons; (ii) encouraging such eligible persons to focus on critical long-term objectives; and (iii) promoting greater alignment of the interests of such eligible persons with the interests of the Company.

The 2022 Plan is a rolling plan for Options and a fixed plan for Performance-Based Awards such that the aggregate number of Shares that: (i) may be issued upon the exercise or settlement of Options granted under the 2022 Plan (and all of the Company's other Security-Based Compensation Arrangements), shall not exceed 10% of the Company's issued and outstanding Shares from time to time; and (ii) may be issued in respect of Performance-Based Awards granted under the 2022 Plan (and all of the Company's other Security-Based Compensation Arrangements) shall not exceed 14,587,604. Options which have been exercised, cancelled, terminated, surrendered, forfeited or expired without being exercised shall be available for subsequent grants under the 2022 Plan and the number of awards available to grant increases as the number of issued and outstanding Shares increases. Performance-Based Awards which have been settled in cash, cancelled, terminated, surrendered, forfeited or expired without being settled shall be available for subsequent grants, but Performance-Based Awards which are settled in securities will reduce the number of Shares reserved for issuance under the fixed 10% portion of the 2022 Plan.

**Employment, Consulting and Management Agreements**

Other than as set forth below, the Company is not party to any formal, written employment, consulting or management agreements with any NEO or director.

The Company pays Peter Espig $15,000 per month for the provision of services as President and CEO of the Company, pursuant to an unwritten arrangement. This amount was increased to $17,500 starting January 1, 2023.

The Company paid Sam Wong $9,000 per month for the provisions of services as CFO of the Company, pursuant to a consulting agreement with RW Global Consulting Corp., a company wholly owned by Sam Wong, which services began on March 20, 2024.

The Company paid Warwick Bay $10,000 per month for the provision of services as CFO of the Company, pursuant to an unwritten arrangement, which services terminated on March 19, 2024.

**Oversight and Description of Director and NEO Compensation**

On February 14, 2023, the Board appointed a compensation committee (the "**Compensation Committee**") consisting of Brent Omland (Chair), Malcolm Swallow and Frank Högel.

All tasks related to developing and monitoring the Company's approach to the compensation of the Company's NEOs and directors are performed by the members of the Compensation Committee. The compensation of the NEOs, directors and the Company's employees or consultants, if any, is reviewed, recommended and approved by the Compensation Committee without reference to any specific formula or criteria.

The overall objective of the Company's compensation strategy is to offer short, medium and long-term compensation components to ensure that the Company has in place programs to attract, retain and develop management of the highest calibre and has in place a process to provide for the orderly succession of management, including receipt on an annual basis of any recommendations of the CEO, if any, in this regard. The Company currently has a short-term compensation component in place, which includes the payment of management fees to certain NEOs, and a long-term compensation component in place, which includes the grant of Options and Performance-Based Awards under the 2022 Plan. The Company intends to further develop these compensation components.

The management fee for each NEO, as applicable, is determined by the Compensation Committee based on the level of responsibility and experience of the individual, the relative importance of the position to the Company, the professional qualifications of the individual and the performance of the individual over time.

The second component of the executive officers' compensation is Options and Performance-based Awards. The objectives of the Company's compensation policies and procedures are to align the interests of the Company's employees with the interests of the Shareholders of the Company. Therefore, a significant portion of total compensation granted by the Company is based upon overall corporate performance. The Compensation Committee considers, on an annual basis, an award of bonuses to key executives and senior management. The amount and award of such bonuses is expected to be discretionary, depending on, among other factors, the financial performance of the Company and the performance of the executive. The Compensation Committee considers that the payment of such discretionary annual cash bonuses may satisfy the medium-term compensation component.

The Company relies on the Compensation Committee discussion, without formal objectives, criteria and analysis, when determining executive compensation. The Company is in the process of developing formal performance goals that must be satisfied in connection with the payment of executive compensation.

The NEOs' performances and salaries or fees are to be reviewed periodically. Increases in management fees are to be evaluated on an individual basis and are performance and market-based. Compensation will be tied to performance criteria or goals including milestones, agreements or transactions, and the Company will use a "peer group" to determine compensation.

**Pension Plan Benefits**

The Company does not have any pension, defined benefit, defined contribution or deferred compensation plans in place.

**SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS**

The following table sets forth details of the 2022 Plan, being the Company's only equity compensation plan, as of December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of securities to<br> be issued upon exercise <br> of outstanding options, <br> warrants and rights**<sup>(1)</sup> **<br> (a)** | **Weighted-average <br> exercise price of <br> outstanding options, <br> warrants and rights <br> (b)** | **Number of securities <br> remaining available for <br> future issuance under<br> equity compensation <br> plans (excluding <br> securities reflected in<br> column (a)) <br> (c)** |
| &nbsp;&nbsp;Equity compensation plans approved by security holders | Options: 10,400,000 | Options: $0.27 | Options: 6,591,819 |
| &nbsp;&nbsp;Equity compensation plans approved by security holders | Performance-based<br> Awards: 1,000,000 | Performance-based <br> Awards: N/A | Performance-based<br> Awards: 28,175,209 |
| &nbsp;&nbsp;Equity compensation plans not approved by security holders | Nil | N/A | Nil |
| &nbsp;&nbsp;**Total** | Options: 7,475,000 | Options: $0.36 | Options: 6,591,819 |
| &nbsp;&nbsp;**Total** | Performance-based <br> Awards: 1,000,000 | Performance-based <br> Awards: N/A | Performance-based <br> Awards: 28,175,209 |

---

<sup>(1)</sup> The Company does not have any warrants outstanding under any equity compensation plans.

The 2022 Plan is subject to the re-approval of the Shareholders and the Exchange. At the Meeting, Shareholders will be asked to re-approve the 2022 Plan. See "*Particulars of Matters to be Acted Upon – Re-Approval of Equity Incentive Plan*", below for a summary of the 2022 Plan. If the Exchange finds the disclosure to Shareholders to be inadequate, then Shareholder approval may not be accepted by the Exchange.

**APPOINTMENT OF AUDITOR**

It is proposed that Crowe MacKay LLP, Chartered Professional Accountants ("**Crowe MacKay**") of 1100 – 1177 West Hastings Street, Vancouver, BC V6E 4T5, replace Davidson & Company LLP, Chartered Professional Accountants ("**Davidson**") as auditor of the Company for the ensuring year.

Davidson, the previous auditor of the Company, resigned as auditor effective January 23, 2025. Pursuant to Section 204(4) of the *Business Corporations Act* (British Columbia), the directors are entitled to fill any causal vacancy in the office of auditor. Effective January 16, 2025, the directors appointed Crowe MacKay to the position of auditor for the Company until the Meeting. Shareholders will be asked to approve the appointment of Crowe MacKay, as the auditor of the Company, to hold office until the next annual general meeting of the shareholders at remuneration to be fixed by the Board. Included with this Information Circular as Schedule "A" is a Reporting Package which consists of (a) the Notice of Change of Auditor and (b) letters addressed to certain securities regulators from Crowe MacKay and Davidson.

At the Meeting, Shareholders will be asked to pass an ordinary resolution to appoint Crowe MacKay LLP, Chartered Professional Accountants, as auditors of the Company for the fiscal year ending December 31, 2025, and to authorize the Board to fix the remuneration to be to be paid to the auditors for the fiscal year ending December 31, 2025. An ordinary resolution needs to be passed by a simple majority of the votes cast by the Shareholders present in person or represented by proxy and entitled to vote at the Meeting.

**Management of the Company recommends that Shareholders vote for the appointment of Crowe MacKay LLP, Chartered Professional Accountants, as the Company's auditors for the Company's fiscal year ending December 31, 2025 and to authorize the Board to fix the remuneration to be paid to the auditors for the fiscal year ending December 31, 2025.**

**AUDIT COMMITTEE DISCLOSURE**

Under National Instrument 52-110 *Audit Committees* ("**NI 52-110**"), a reporting issuer is required to provide disclosure annually with respect to its audit committee, including the text of its audit committee charter, information regarding the composition of the audit committee, and information regarding fees paid to its external auditor. The Company provides the following disclosure with respect to its audit committee (the "**Audit Committee**").

**Audit Committee Charter**

The full text of the Audit Committee charter (the "**Charter**") is as follows:

***Purpose***

The purpose of the Audit Committee is to act as the representative of the Board in carrying out its oversight responsibilities relating to:

· the audit process;

· the financial accounting and reporting process to shareholders and regulatory bodies; and

· the system of internal financial controls.

***Composition***

The Audit Committee shall consist of three directors, the majority of whom are "independent" within the meaning of NI 52-110*,* for so long as the Company is a "venture issuer", as defined therein. The Audit Committee shall be appointed annually by the Board immediately following the annual general meeting of the Company.

Each member of the Audit Committee shall be financially literate, meaning that he or she must be able to read and understand financial statements. One member of the Audit Committee must have accounting and financial expertise, meaning that he or she possesses financial or accounting credentials or has experience in finance or accounting.

***Duties***

The Audit Committee's duty is to monitor and oversee the operations of management and the external auditor. Management is responsible for establishing and following the internal controls, financial reporting processes and for compliance with applicable laws and policies. The external auditor is responsible for performing an independent audit of the Company's financial statements in accordance with generally accepted accounting standards, and for issuing its report on the financial statements. The Audit Committee should review and evaluate this Charter on an annual basis.

The specific duties of the Audit Committee are as follows:

*Management Oversight*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Review
 and evaluate the Company's processes for identifying, analyzing and managing financial risks that may prevent the Company from
 achieving its objectives;

· Review
 and evaluate the Company's internal controls, as established by management;

· Review
 and evaluate the status and adequacy of internal information systems and security;

· Meet
 with the external auditor at least once a year in the absence of management;

· Request
 the external auditor's assessment of the Company's financial and accounting personnel; and

· Review
 and evaluate the Company's banking arrangements.

*External Auditor Oversight*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Review and evaluate the external
 auditor's process for identifying and responding to key audit and internal control risks;

· Review the scope and approach
 of the annual audit;

· Inform the external auditor
 of the Audit Committee's expectations;

· Recommend the appointment of the external auditor to the
 Board;

· Meet with management at least
 once a year in the absence of the external auditor;

· Review the independence of the external auditor on an annual
 basis;

· Review with the external
 auditor both the acceptability and the quality of the Company's accounting principles; and

· Confirm with the external
 auditor that the external auditor is ultimately accountable to the Board and the Audit Committee, as representatives of the Shareholders.

*Financial Statement Oversight*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Review the quarterly reports
 with both management and the external auditor;

· Discuss with the external
 auditor the quality and the acceptability of the generally accepted accounting principles applied by management;

· Review and discuss with management
 the annual audited financial statements; and

· Recommend to the Board whether
 the annual audited financial statements should be accepted, filed with the securities regulatory bodies and publicly disclosed.

**Composition of the Audit Committee**

The Company's Audit Committee is currently comprised of three directors, consisting of Peter Espig, Frank Högel and Malcolm Swallow. As defined in NI 52-110, Mr. Espig, the Company's CEO and President, is not "independent", as he is an officer of the Company. Messrs. Swallow and Högel are "independent" as defined in NI 52-110.

All of the Audit Committee members are "financially literate", as defined in NI 52-110, as all have the industry experience necessary to understand and analyze financial statements of the Company, as well as an understanding of internal controls and procedures necessary for financial reporting.

The Audit Committee is responsible for review of both interim and annual financial statements for the Company. For the purposes of performing their duties, the members of the Audit Committee have the right at all times, to inspect all the books and financial records of the Company and any subsidiaries, and to discuss with management and the external auditors of the Company any accounts, records and matters relating to the financial statements of the Company. The Audit Committee members meet periodically with management and annually with the external auditors.

**Relevant Education and Experience**

All of the members of the Audit Committee are able to understand and interpret information related to financial statement analysis. Each of the members of the Audit Committee has a general understanding of the accounting principles used by the Company to prepare its financial statements and will seek clarification from the Company's auditors, where required. Each of the members of the Audit Committee also has direct experience in understanding accounting principles for private and reporting companies. The relevant experience of the current members of the Audit Committee is as follows:

*Peter Espig*

Mr. Espig has been the President and CEO of the Company since November 7, 2013. The former Goldman Sachs banker and Olympus Capital Partners executive founded TriAsia Capital, a private equity and consulting firm focused on raising capital for mid-sized companies and pre-initial public offering investment in 2006. Mr. Espig is a founding director of Phosplatin Therapeutics, a private biopharmaceutical company, and has been a board member since November 2010. He has been involved in several public and private companies, as well as charitable organization. He has been a director of Element 29 Resources Inc., a junior mining company listed on the Exchange since June 29, 2020. Mr. Espig is a pioneer of SPACs, having completed two mega transactions with a combined value of greater than US$1.0 BN. He received his MBA from Columbia Business School, where he was a Chazen International Scholar.

*Frank Högel*

Mr. Högel is an asset manager actively involved in the financial evaluation of companies and convertible debenture structuring. He has also served as President and CEO of Peter Beck Performance Funds and Peter Beck and Partner Asset Management Company Limited since 2002. His background includes more than 14 years of direct experience in the mining industry and expertise as an international financier / investor. Mr. Högel holds a degree in Economics and International Business and Management from the University of Nürtingen in Germany.

*Malcolm Swallow*

Mr. Swallow qualified as a Mining Engineer in 1971 from the Royal School of Mines and has been a Fellow of the Institute of Mining and Metallurgy, a Chartered Engineer, a European Engineer and a Professional Engineer in BC from 1994 until his retirement from professional practice in 2020. He has consulted on both open pit and underground mining and specialised over the latter half of his career in mine development and project management on a number of significant projects. Mr. Swallow was a director of NorZinc Ltd., a junior mining company listed on the TSX, the Frankfurt Stock Exchange and the Over- The-Counter Bulletin Board, from 2016 to 2020 and a director of Silvercorp Metals Inc., mining company listed on the TSX and American Stock Exchange, from 2013 to 2017.

**Audit Committee Oversight**

At no time since the commencement of the Company's most recently completed financial year was a recommendation of the Audit Committee to nominate or compensate an external auditor not adopted by the Board.

**Reliance on Certain Exemptions**

Since the commencement of the Company's most recently completed financial year, the Company has not relied on the exemptions in Sections 2.4, 6.1.1(4), 6.1.1(5), 6.1.1(6) or Part 8 of NI 52-110. Section 2.4 *(De Minimis Non -Audit Services)* provides an exemption from the requirement that the Audit Committee must pre-approve all non-audit services to be provided by the auditor, where the total amount of fees related to the non-audit services are not expected to exceed 5% of the total fees payable to the auditor in the financial year in which the non-audit services were provided. Sections 6.1.1(4) (*Circumstance Affecting the Business or Operations of the Venture Issuer*), 6.1.1(5) (*Events Outside Control of Member*) and 6.1.1(6) (*Death, Incapacity or Resignation*) provide exemptions from the requirement that a majority of the members of the Company's Audit Committee must not be executive officers, employees or control persons of the Company or of an affiliate of the Company. Part 8 *(Exemptions)* permits a company to apply to a securities regulatory authority or regulator for an exemption from the requirements of NI 52-110 in whole or in part.

**Pre-Approval Policies and Procedures**

Formal policies and procedures for the engagement of non-audit services have yet to be formulated and adopted. Subject to the requirements of NI 52-110, the engagement of non-audit services is considered by the Board and the Audit Committee, on a case-by-case basis as applicable.

**External Auditor Service Fees**

In the following table, "audit fees" are fees billed by the Company's external auditor for services provided in auditing the Company's annual financial statements for the subject year. "Audit-related fees" are fees not included in audit fees that are billed by the auditor for assurance and related services that are reasonably related to the performance of the audit review of the Company's financial statements. "Tax fees" are fees billed by the auditor for professional services rendered for tax compliance, tax advice and tax planning. "All other fees" are fees billed by the auditor for products and services not included in the foregoing categories.

The aggregate fees billed by the Company's auditors, Crowe MacKay LLP, Chartered, Professional Accountants and Davidson & Company LLP, Chartered Professional Accountants, for the fiscal years ended December 31, 2024 and December 31, 2023, respectively, by category, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Financial**<br>**Year Ended December 31** |<br>**Audit Fees** | **Audit Related**<br>**Fees** |<br>**Tax Fees** |<br>**All Other Fees** |
| 2024<sup>(1)</sup> | $70000 | $Nil | $Nil | $Nil |
| 2023<sup>(2)</sup> | $60000 | $732 | $14600 | $Nil |

---

<sup>(1)</sup> Fees charged by Crowe MacKay LLP. <br> <sup>(2)</sup> Fees charged by Davidson & Company LLP.

**Exemption**

The Company is relying on the exemption provided by Section 6.1 of NI 52-110, which provides that the Company, as a venture issuer, is not required to comply with Part 3 (*Composition of the Audit Committee*) and Part 5 (*Reporting Obligations*) of NI 52-110.

**INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS**

No current or former director, executive officer, proposed nominee for election to the Board, or associate of such persons is, or at any time since the beginning of the Company's most recently completed financial year has been, indebted to the Company or any of its subsidiaries.

No indebtedness of current or former director, executive officer, proposed nominee for election to the Board, or associate of such person is, or at any time since the beginning of the most recently completed financial year has been, the subject of a guarantee, support agreement, letter of credit or other similar arrangement or understanding provided by the Company or any of its subsidiaries.

**INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS**

No: (a) director, proposed director or executive officer of the Company; (b) person or company who beneficially owns, directly or indirectly, Shares or who exercises control or direction of Shares, or a combination of both carrying more than ten percent of the voting rights attached to the Shares outstanding (each, an "**Insider**"); (c) director or executive officer of an Insider; or (d) associate or affiliate of any of the directors, executive officers or Insiders, has had any material interest, direct or indirect, in any transaction since the commencement of the Company's most recently completed financial year or in any proposed transaction which has materially affected or would materially affect the Company, except with an interest arising from the ownership of Shares, where such person or company will receive no extra or special benefit or advantage not shared on a *pro rata* basis by all holders of the same class of Shares.

**MANAGEMENT CONTRACTS**

There were no management functions of the Company, which were, to any substantial degree, performed by persons other than the directors or executive officers of the Company.

**CORPORATE GOVERNANCE**

**General**

National Instrument 58-101 – *Disclosure of Corporate Governance Practices*, as adopted by the Canadian Securities Administrators, prescribes certain disclosure by the Company of its corporate governance practices. This disclosure is presented below.

**Board of Directors**

The Board facilitates its exercise of independent supervision over the Company's management through meetings of the Board.

Mr. Espig, the Company's President and CEO, is not considered to be independent as he is an officer of the Company. Messrs. Högel, Johnston, Swallow and Omland are considered to be independent in that they are independent and free from any interest and any business or other relationship which could or could reasonably be perceived to materially interfere with the respective director's ability to act with the best interests of the Company, other than the interests and relationships arising from being Shareholders.

**Directorships**

The following table sets out information regarding other directorships presently held by directors of the Company with other reporting issuers (or the equivalent) in Canada or any foreign jurisdiction:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Name of Director** | **Names of Other Reporting Issuers** | **Securities Exchange** |
| &nbsp;&nbsp;Peter Espig | First Lithium Minerals Corp. | Exchange |
|  | Avrupa Minerals Ltd. | Exchange |
|  | Canamex Gold Corp. | CSE |
| &nbsp;&nbsp;Frank Högel | Monarca Minerals Inc. | Exchange |
|  | Lake Victoria Gold Ltd. | Exchange |
|  | Golden Goliath Resources Ltd. | Exchange |
|  | Cygnus Metals Limited | Exchange |
| &nbsp;&nbsp;Brent Omland | Galantas Gold Corporation | Exchange |
|  | DynaResource, Inc. | OTC Market |
|  | Canadian Copper Inc. | CSE |

---

**Orientation and Continuing Education**

The Board briefs all new directors with respect to the policies of the Board and other relevant corporate and business information. The Board does not provide any continuing education.

**Ethical Business Conduct**

The Board has not adopted a written ethical business code of conduct for directors, officers and employees. However, the Board believes that the fiduciary duties placed on individual directors by the Company's governing corporate legislation and the common law, and the restrictions placed by applicable corporate legislation on an individual director's participation in decisions of the Board in which the director has an interest, have been sufficient to ensure that the Board operates independently of management and in the best interests of the Company.

**Nomination of Directors**

The Company does not have a formal process or committee for proposing new nominees for election to the Board. The nominees proposed are generally the result of recruitment efforts by the members of the Board, including both formal and informal discussions among the members of the Board.

**Compensation**

On February 14, 2023, the Board established the Compensation Committee. The role of the Compensation Committee is to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review
 and recommend to the Board the appropriate compensation level for the Company's executive
 officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) oversee the Company's compensation
 and benefit plans, policies and practices, including its executive compensation plans and
 incentive-compensation and equity-based plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) monitor and evaluate, at the Committee's
 sole discretion, matters relating to the compensation and benefits structure of the Company;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) take such other actions within the scope
 of this Charter as the Board may assign to the Committee from time to time or as the Committee
 deems necessary or appropriate.

**Other Board Committees**

On February 14, 2023, the Board established a corporate governance committee (the "**Corporate Governance Committee**"). The Corporate Governance Committee consists of Peter Espig, Frank Högel and Paul Johnson (Chair). The role of the Corporate Governance Committee is to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) advise and make recommendations to the
 Board in its oversight role with respect to: (i) the development of the Company's corporate
 governance policies, principles, practices and processes; (ii) the effectiveness of the Board
 and its committees; (iii) the contributions of individual directors; (iv) the identification
 of individuals qualified to become board members; and (v) the selection of director nominees
 for election by the shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) take such other actions within the scope
 of this Charter as the Board may assign to the Committee from time to time or as the Committee
 deems necessary or appropriate.

The Board has no committees other than the Audit Committee, the Compensation Committee and the Corporate Governance Committee.

**Assessments**

The Board regularly monitors the adequacy and effectiveness of information given to directors, communications between the Board and management, and the strategic direction and processes of the Board and its committees.

**INTEREST OF CERTAIN PERSONS OR COMPANIES IN MATTERS TO BE ACTED UPON**

Except as disclosed elsewhere in this Information Circular, no director or executive officer of the Company who was a director or executive officer since the beginning of the Company's last financial year, no proposed nominee for election as a director of the Company, or any associate or affiliate of any such directors, officers or nominees, has any material interest, direct or indirect, by way of beneficial ownership of Shares or other securities in the Company or otherwise, in any matter to be acted upon at the Meeting other than the election of directors.

Directors, executive officers, proposed nominees for election as director of the Company may be interested in the re-approval of the 2022 Plan, pursuant to which they may be granted stock options. See "*Particulars of Matters to be Acted Upon – Re-Approval of 2022 Equity Incentive Plan*" below, for more information.

**PARTICULARS OF MATTERS TO BE ACTED UPON**

**Re-Approval of 2022 Equity Incentive Plan**

At the Meeting, Shareholders will be asked to consider and, if thought advisable, pass an ordinary resolution re-approving and confirming the 2022 Plan in the form set out as Schedule "A" attached to the information circular dated May 12, 2022 and filed under the Company's profile on SEDAR+ at <u>www.sedarplus.ca</u>.

The following information is intended as a brief description of the 2022 Plan and is qualified in its entirety by the full text of the 2022 Plan.

***Purpose***

The purpose of the 2022 Plan is to promote the long-term success of the Company and the creation of shareholder value by: (i) encouraging the attraction and retention of eligible persons; (ii) encouraging such eligible persons to focus on critical long-term objectives; and (iii) promoting greater alignment of the interests of such eligible persons with the interests of the Company.

The 2022 Plan provides flexibility to the Company to grant equity-based incentive awards in the form of Options and Performance-Based Awards to eligible persons.

***Shares Subject to the 2022 Plan***

The 2022 Plan is a rolling plan for Options and a fixed plan for Performance-Based Awards such that the aggregate number of Shares that: (i) may be issued upon the exercise or settlement of Options granted under the 2022 Plan (and all of the Company's other Security-Based Compensation Arrangements), shall not exceed 10% of the Company's issued and outstanding Shares from time to time, such number being 177,071,368 as at June 3, 2025 and (ii) may be issued in respect of Performance-Based Awards granted under the 2022 Plan (and all of the Company's other Security-Based Compensation Arrangements) shall not exceed 14,587,604. Options which have been exercised, cancelled, terminated, surrendered, forfeited or expired without being exercised shall be available for subsequent grants under the 2022 Plan and the number of awards available to grant increases as the number of issued and outstanding Shares increases. Performance-Based Awards which have been settled in cash, cancelled, terminated, surrendered, forfeited or expired without being settled shall be available for subsequent grants, but Performance-Based Awards which are settled in securities will reduce the number of Shares reserved for issuance under the fixed 10% portion of the 2022 Plan.

***Participation Limits***

The 2022 Plan provides that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) unless the Company has obtained disinterested
 shareholder approval, the maximum aggregate number of Shares issuable to insiders under the
 2022 Plan, within any 12 month period, together with Shares reserved for issuance to insiders
 under all of the Company's other Security-Based Compensation Arrangements (as defined
 in the 2022 Plan), shall not exceed 10% of the issued and outstanding Shares (calculated
 as at the date of any grant and in accordance with the policies of the Exchange (the "**Exchange Policies** "));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) unless the Company has obtained disinterested
 shareholder approval, the maximum aggregate number of Shares issuable to insiders under the
 2022 Plan, at any point in time, together with Shares reserved for issuance to insiders under
 all of the Company's other Security-Based Compensation Arrangements, shall not exceed
 10% of the issued and outstanding Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) unless the Company has obtained disinterested
 shareholder approval, the maximum aggregate number of Shares issuable to any participant
 (as defined in the 2022 Plan) under the 2022 Plan, within any 12 month period, together with
 Shares reserved for issuance to such participant (and to Companies wholly-owned by that participant)
 under all of the Company's other Security-Based Compensation Arrangements, shall not
 exceed 5% of the issued and outstanding Shares (calculated as at the date of any grant);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the maximum aggregate number of Shares
 issuable to any one consultant (as defined in the 2022 Plan) under the 2022 Plan, within
 any 12 month period, together with Shares issuable to such consultant under all of the Company's
 other Security-Based Compensation Arrangements, shall not exceed 2% of the issued and outstanding
 Shares (calculated as at the date of any grant); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the maximum aggregate number of Shares
 issuable pursuant to grants of Options to all investor relation service providers performing
 investor relations activities under the 2022 Plan, within any 12 month period, shall not
 in aggregate exceed 2% of the issued and outstanding Shares (calculated as at the date of
 any grant). For the avoidance of doubt, persons performing investor relations activities
 are only eligible to receive Options under the 2022 Plan; they are not eligible to receive
 any Performance-Based Award or other type of securities based compensation under the 2022
 Plan.

***Administration of the 2022 Plan***

The 2022 Plan shall be administered by the Board and the Board has full authority to administer the 2022 Plan, including the authority to interpret and construe any provision of the 2022 Plan and to adopt, amend and rescind such rules and regulations for administering the 2022 Plan as the Board may deem necessary in order to comply with the requirements of the 2022 Plan.

***Eligible Persons under the 2022 Plan***

When used in connection with the grant of Options, all officers, directors, employees, management company employees and consultants of the Company are eligible to participate in the 2022 Plan. When used in connection with the grant of Performance-Based Awards, all officers, directors, employees, management company employees and consultants of the Company that do not perform investor relations activities are eligible to participate in the 2022 Plan. The extent to which any such individual is entitled to receive a grant of an award pursuant to the 2022 Plan will be determined in the sole and absolute discretion of the Board. Each person who receives a grant under the 2022 Plan is referred to as a "Participant".

***Types of Awards***

Awards of Options, RSUs, PSUs and DSUs may be made under the 2022 Plan. All of the awards described below are subject to the conditions, limitations, restrictions, exercise price, vesting, settlement and forfeiture provisions determined by the Board, in its sole discretion, subject to such limitations provided in the 2022 Plan, and will generally be evidenced by an award agreement.

*<u>Options</u>*

An Option entitles a holder thereof to purchase a prescribed number of Shares at an exercise price determined by the Board at the time of the grant of the Option, provided that the exercise price of an Option granted under the 2022 Plan shall not be less than the Discounted Market Price (as defined in the Exchange Policies), provided that if an Option is proposed to be granted by the Company after the Company has just been recalled for trading following a suspension or halt, the Company must wait at least ten trading days since the day on which trading in the Company's securities resumes before setting the exercise price for and granting the Option. Each Option shall, unless sooner terminated, expire on a date to be determined by the Board which will not exceed ten (10) years from the date of grant of the Option. The Board may, in its absolute discretion, upon granting Options under the 2022 Plan, specify different time periods following the dates of granting the Options during which the Participant may exercise their Options to purchase Shares and may designate different exercise prices and numbers of Shares in respect of which each Participant may exercise Options during each respective time period. Subject to the discretion of the Board, the Options granted to a Participant under the 2022 Plan shall vest as determined by the Board on the date of grant of such Options. If the Board does not specify a vesting schedule at the date of grant, then Options granted to persons, other than those conducting investor relations activities, shall vest fully on the date of grant, and in any event in accordance with the policies of the Exchange. Options issued to persons conducting investor relations activities must vest (and shall not otherwise be exercisable) in stages over a minimum of 12 months such that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no more than 1/4 of the Options vest no
 sooner than three months after the date of grant (the "**Grant Date** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no more than another 1/4 of the Options
 vest no sooner than six months after the Grant Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no more than another 1/4 of the Options
 vest no sooner than nine months after the Grant Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the remainder of the Options vest no sooner
 than 12 months after the Grant Date.

If the award agreement for the grant of Options so provides, in the event of a change of control (as defined in the 2022 Plan), all Options granted to a Participant that ceases to be an Eligible Person shall become fully vested and shall become exercisable by the Participant in accordance with the terms of such award agreement and the 2022 Plan. No acceleration of the vesting of any Options shall be permitted without prior Exchange review and acceptance for Options issued to persons conducting investor relations activities.

Other than as may be set forth in the award agreement for the grant of Options, upon the death of a Participant, any Options granted to such Participant which, prior to the Participant's death, have not vested, will immediately terminate without payment, be forfeited and cancelled and shall be of no further force or effect; and the Participant or his or her estate, as the case may be, shall have no right, title or interest therein whatsoever. Any Options granted to such Participant which, prior to the Participant's death, had vested pursuant to the terms of the applicable Award Agreement will accrue to the Participant's estate in accordance with 2022 Plan and may be exercised by the Participant's estate within one year of the death of the Participant.

Where a Participant's relationship with the Company is terminated by the Company or a subsidiary for cause, all Options granted to the Participant under the 2022 Plan will immediately terminate without payment, be forfeited and cancelled and shall be of no further force or effect as of the termination date.

Where a Participant's relationship with the Company terminates by reason of termination by the Company or a subsidiary without cause, by voluntary termination, voluntary resignation or due to retirement by the Participant, such that the Participant no longer qualifies as an eligible person, all Options granted to the Participant under the 2022 Plan that have not vested will, unless the applicable award agreement provides otherwise and subject to the provisions below, immediately terminate without payment, be forfeited and cancelled and shall be of no further force or effect as of the termination date; provided, however, that any Options granted to such Participant which, prior to the Participant's termination without cause, voluntary termination, voluntary resignation or Retirement, had vested pursuant to the terms of the applicable award agreement will accrue to the Participant in accordance with the 2022 Plan and shall be exercisable by such Participant for a period of 90 days following the date the Participant ceased to be an eligible person, or such longer period as may be provided for in the award agreement or as may be determined by the Board provided such period does not exceed 12 months after the termination date.

Where a Participant becomes afflicted by a disability, all Options granted to the Participant under the 2022 Plan will continue to vest in accordance with the terms of such Options; provided, however, that no Options may be redeemed during a leave of absence. Where a Participant's relationship is terminated due to disability such that the Participant ceases to be an eligible person, all Options granted to the Participant under this Plan that have not vested will, unless the applicable award agreement provides otherwise and subject to the provisions below, immediately terminate without payment, be forfeited and cancelled and shall be of no further force or effect as of the termination date; provided, however, that any Options granted to such Participant which, prior to the termination of the Participant's relationship with the Company due to disability, had vested pursuant to terms of the applicable award agreement, will accrue to the Participant in accordance with the 2022 Plan and shall be exercisable by such Participant for a period of 90 days following the date the termination date, or such longer period as may be provided for in the award agreement or as may be determined by the Board.

*<u>Restricted Share Units</u>*

A RSU is a right awarded to a Participant, as compensation for employment or consulting services or services as a director or officer, to receive for no additional cash consideration, securities of the Company upon specified vesting criteria being satisfied, and subject to the terms and conditions of the 2022 Plan and the applicable award agreement, and which may be paid in cash and/or Shares. The number of RSUs to be credited to each participant shall be determined by the Board in its sole discretion in accordance with the 2022 Plan. All RSUs will vest and become payable by the issuance of Shares at the end of the restriction period if all applicable restrictions have lapsed, as such restrictions may be specified in the award agreement.

RSUs shall be subject to such restrictions as the Board, in its sole discretion, may establish in the applicable award agreement, which restrictions may lapse separately or in combination at such time or times and on such terms, conditions and satisfaction of objectives as the Board may, in its discretion, determine at the time a RSU is granted. The Board shall determine any vesting terms applicable to the grant of RSUs, however, no RSUs may vest before the date that is one (1) year following the date of the award.

If the award agreement so provides, in the event of a change of control (as defined in the 2022 Plan) and the Participant ceases to be an Eligible Person, all restrictions upon any RSUs held by such Participant shall lapse immediately and all such RSUs shall become fully vested in such Participant in accordance with the 2022 Plan.

Other than as may be set forth in the applicable award agreement, upon the death of a Participant, any RSUs granted to such Participant which, prior to the Participant's death, have not vested, will be immediately and automatically forfeited and cancelled without further action and without any cost or payment, and the Participant or his or her estate, as the case may be, shall have no right, title or interest therein whatsoever. Any RSUs granted to such Participant which, prior to the Participant's death, had vested pursuant to the terms of the applicable award agreement will accrue to the Participant's estate in accordance with the 2022 Plan.

Where a Participant's relationship with the Company is terminated by the Company or a subsidiary for cause, all RSUs granted to the Participant under this Plan will immediately terminate without payment, be forfeited and cancelled and shall be of no further force or effect as of the termination date.

Where a Participant's relationship with the Company terminates by reason of termination by the Company or a subsidiary without cause, by voluntary termination, voluntary resignation or due to retirement by the Participant, all RSUs granted to the Participant under the 2022 Plan that have not vested will, unless the applicable award agreement provides otherwise and subject to the provisions below, immediately terminate without payment, be forfeited and cancelled and shall be of no further force or effect as of the termination date and the Participant shall have no right, title or interest therein whatsoever; provided, however, that any RSUs granted to such Participant which, prior to the Participant's termination without cause, voluntary termination, voluntary resignation or retirement, had vested pursuant to the terms of the applicable award agreement will accrue to the Participant in accordance with the 2022 Plan.

Where a Participant becomes afflicted by a disability, all RSUs granted to the Participant under the 2022 Plan will continue to vest in accordance with the terms of such RSUs; provided, however, that no RSUs may be redeemed during a leave of absence. Where a Participant's relationship is terminated due to disability such that the Participant ceases to be an eligible person, all RSUs granted to the Participant under the 2022 Plan that have not vested will, unless the applicable award agreement provides otherwise and subject to the provisions below, immediately terminate without payment, be forfeited and cancelled and shall be of no further force or effect as of the termination date and the Participant shall have no right, title or interest therein whatsoever; provided, however, that any RSUs granted to such Participant which, prior to the Participant's termination due to disability, had vested pursuant to terms of the applicable award agreement will accrue to the Participant in accordance with the 2022 Plan.

As soon as practicable after each vesting date of a RSU, the Company shall, at the sole discretion of the Board, either: (a) issue to the Participant from treasury the number of Shares equal to the number of RSUs that have vested; or (b) make a cash payment in an amount equal to the Market Unit Price (as defined in the 2022 Plan) on the next trading day after the vesting date of the RSUs, net of applicable withholdings.

*<u>Performance Share Units</u>*

A PSU is a right awarded to a Participant, as compensation for employment or consulting services or services as a director or officer, to receive, for no additional cash consideration, securities of the Company upon specified performance and vesting criteria being satisfied, subject to the terms and conditions of the 2022 Plan and the applicable award agreement, and which may be paid in cash and/or Shares. No PSUs may vest before the date that is one year following the date of the Award.

Subject to the provisions of the 2022 Plan and such other terms and conditions as the Board may prescribe, the Board may, from time to time, grant awards of PSUs to eligible persons that do not perform investor relations activities. The number of PSUs to be awarded to any Participant shall be determined by the Board, in its sole discretion, in accordance with the 2022 Plan. Each PSU shall, contingent upon the attainment of the performance criteria within the performance cycle, represent one Share.

The Board will select, settle and determine the performance criteria (including without limitation the attainment thereof), for purposes of the vesting of the PSUs, in its sole discretion. An award agreement may provide the Board with the right to revise the performance criteria and the award amounts if unforeseen events (including, without limitation, changes in capitalization, an equity restructuring, an acquisition or a divestiture) occur which have a substantial effect on the financial results and which in the sole judgment of the Board make the application of the performance criteria unfair unless a revision is made.

All PSUs will vest and become payable to the extent that the performance criteria set forth in the award agreement are satisfied in the performance cycle, the determination of which satisfaction shall be made by the Board on the determination date. No PSU may vest before the date that is one year following the date of the award.

If the award agreement so provides, in the event of a change of control (as defined in the 2022 Plan) and the Participant ceases to be an Eligible Person, all PSUs granted to such Participant shall become fully vested in such Participant (without regard to the attainment of any performance criteria) and shall become payable to the Participant in accordance with the 2022 Plan.

Other than as may be set forth in the applicable award agreement and below, upon the death of a Participant, all PSUs granted to the Participant which, prior to the Participant's death, have not vested, will immediately and automatically be forfeited and cancelled without further action and without any cost or payment, and the Participant or his or her estate, as the case may be, shall have no right, title or interest therein whatsoever; provided, however, the Board may determine, in its sole discretion, the number of the Participant's PSUs that will vest based on the extent to which the applicable performance criteria have been satisfied in that portion of the performance cycle that has lapsed.

Where a Participant's relationship with the Company is terminated by the Company or a subsidiary for cause, all PSUs granted to the Participant under the 2022 Plan will immediately terminate without payment, be forfeited and cancelled and shall be of no further force or effect as of the termination date.

Where a Participant's relationship with the Company terminates by reason of termination by the Company or a subsidiary without cause, by voluntary termination, voluntary resignation or due to retirement by the Participant, all PSUs granted to the Participant which have not vested will, unless the award agreement provides otherwise and subject to the provisions below, immediately terminate without payment, be forfeited and cancelled and shall be of no further force or effect as of the termination date, and the Participant shall have no right, title or interest therein whatsoever; provided, however, the Board may determine, in its sole discretion, the number of the Participant's PSUs that will vest based on the extent to which the applicable performance have been satisfied in that portion of the performance cycle that has lapsed.

Where a Participant becomes afflicted by a disability, all PSUs granted to the Participant under the 2022 Plan will continue to vest in accordance with the terms of such PSUs; provided, however, that no PSUs may be redeemed during a leave of absence. Where a Participant's relationship is terminated due to disability such that the Participant ceases to be an eligible person, all PSUs granted to the Participant under the 2022 Plan that have not vested will, unless the applicable award agreement provides otherwise and subject to the provisions below, immediately terminate without payment, be forfeited and cancelled and shall be of no further force or effect as of the termination date, and the Participant shall have no right, title or interest therein whatsoever; provided, however, that the Board may determine, in its sole discretion, the number of the Participant's PSUs that will vest based on the extent to which the applicable performance criteria have been satisfied in that portion of the performance cycle that has lapsed.

Payment to Participants in respect of vested PSUs shall be made after the determination date for the applicable award and in any case within ninety-five (95) days after the last day of the performance cycle to which such award relates. The Company shall, at the sole discretion of the Board, either: (a) issue to the Participant the number of Shares equal to the number of PSUs that have vested on the Determination Date; or (b) make a cash payment in an amount equal to the Market Unit Price (as defined in the 2022 Plan) on the next trading day after the determination date of the PSUs that have vested, net of applicable withholdings.

*<u>Deferred Share Units</u>*

A DSU is a right granted to a Participant, as compensation for employment or consulting services or services as a director or officer, to receive, for no additional cash consideration, securities of the Company on a deferred basis upon specified vesting criteria being satisfied, subject to the terms and conditions of the 2022 Plan and the applicable award agreement, and which may be paid in cash and/or Shares. DSUs may not be granted to any Participant performing investor relation activities.

Subject to the provisions of the 2022 Plan and such other terms and conditions as the Board may prescribe, the Board may, from time to time, grant awards of DSUs to directors in lieu of fees (including annual Board retainers, chair fees, meeting attendance fees or any other fees payable to a director) or to other eligible persons as compensation for employment or consulting services. The number of DSUs to be credited to each Participant shall be determined by the Board in its sole discretion in accordance with the 2022 Plan. The number of DSUs shall be specified in the applicable award agreement. Each director may elect to receive any or all of his or her fees in DSUs under this Plan.

The number of DSUs shall be calculated by dividing the amount of Fees selected by a director by the Market Unit Price (as defined in the 2022 Plan) on the grant date (or such other price as required under the Exchange Policies) which shall be the 10th business day following each financial quarter end. Any fractional DSU shall be rounded down and no payment or other adjustment will be made with respect to the fractional DSU.

No Deferred Share Units may vest before the date that is one year following the date of the award of the DSU.

Each participant shall be entitled to receive, after the effective date that the Participant ceases to be an eligible person for any reason, on a day designated by the Participant and communicated to the Company by the Participant in writing at least fifteen (15) days prior to the designated day (or such earlier date after the participant ceases to be an eligible person as the participant and the Company may agree, which date shall be no later than one year after the date upon which the participant ceases to be an eligible person) and if no such notice is given, then on the first anniversary of the effective date that the Participant ceases to be an eligible person, at the sole discretion of the Board, either: (a) that number of Shares equal to the number of vested DSUs credited to the participant's account, such Shares to be issued from treasury of the Company; or (b) a cash payment in an amount equal to the Market Unit Price on the next trading day after the Participant ceases to be an eligible person of the vested DSUs, net of applicable withholdings.

In the event that the value of a DSU would be determined with reference to a period commencing at a fiscal quarter-end of the Company and ending prior to the public disclosure of interim financial statements for the quarter (or annual financial statements in the case of the fourth quarter), the cash payment of the value of the DSUs will be made to the Participant with reference to the five (5) trading days immediately following the public disclosure of the interim financial statements for that quarter (or annual financial statements in the case of the fourth quarter).

Upon death of a Participant holding DSUs that have vested, the Participant's estate shall be entitled to receive, within 120 days after the Participant's death and at the sole discretion of the Board, a cash payment or Shares that would have otherwise been payable in accordance with the 2022 Plan to the Participant upon such Participant ceasing to be an eligible person.

***General Provisions of the 2022 Plan***

<u>Non-Transferability</u>

No Option or Performance-Based Award and no right under any such Option or Performance-Based Award shall be assignable, alienable, saleable, or transferable by a participant otherwise than by will or by the laws of descent and distribution and only then if permitted by the Exchange Policies. No Option or Performance-Based Award and no right under any such Option or Performance-Based Award, may be pledged, alienated, attached, or otherwise encumbered, and any purported pledge, alienation, attachment, or encumbrance thereof shall be void and unenforceable against the Company.

<u>Black-out Periods</u>

In the event that the date provided for expiration, redemption or settlement of an award falls within a blackout period imposed by the Company pursuant to a trading policy as the result of the bona fide existence of undisclosed material information, the expiry date, redemption date or settlement date, as applicable, of the award shall automatically be extended to the date that is ten (10) business days following the date of expiry of the blackout period which shall occur promptly following general disclosure of the undisclosed material information. Notwithstanding the foregoing, there will be no extension of any award if the Company (or the Participant) is subject to a cease trade order (or similar order under applicable law.

<u>Deductions</u>

Whenever cash is to be paid in respect of DSUs, RSUs or PSUs, the Company shall have the right to deduct from all cash payments made to a Participant any taxes required by law to be withheld with respect to such payments. The Company is authorized to withhold any payment due under any Award or under the 2022 Plan until the Participant has paid or made arrangements for the payment of the amount of any withholding taxes due in respect of an Award, its exercise, or any payment under such Award or under this Plan. At the sole discretion of the Board, a Participant may be permitted to satisfy the foregoing requirement by, all in accordance with the Exchange Policies by delivering an irrevocable direction to a securities broker approved by the Company to sell all or a portion of the Shares and deliver to the Company from the sales proceeds an amount sufficient to pay the required withholding taxes.

<u>Amendments to the 2022 Plan</u>

The Board may at any time or from time to time, in its sole and absolute discretion and without the approval of Shareholders, amend, suspend, terminate or discontinue the 2022 Plan and may amend the terms and conditions of any Options or Performance-Based Awards granted hereunder, subject to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any required disinterested shareholder
 approval to (A) reduce the exercise price of an Award issued to an insider or (B) extend
 the term of an Option granted to an insider, in either event in accordance with the policies
 of the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any required approval of any applicable
 regulatory authority or the Exchange; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any approval of Shareholders as required
 by the Exchange Policies or applicable law, provided that Shareholder approval shall not
 be required for the following amendments and the Board may make any changes which may include
 but are not limited to (except that the Exchange may require approval of the Shareholders
 for amendments pursuant to Sections C to G below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. amendments of a "housekeeping nature";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. amendments for the purpose of curing any
 ambiguity, error or omission in the 2022 Plan or to correct or supplement any provision of
 the 2022 Plan that is inconsistent with any other provision of the 2022 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. amendments which are necessary to comply
 with applicable law or the requirements of the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. amendments respecting administration and
 eligibility for participation under the 2022 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. amendments to the terms and conditions on
 which Option or Performance-Based Awards may be or have been granted pursuant to 2022 Plan
 including amendments to the vesting provisions and terms of any Options or Performance-Based
 Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. with the exception of Options granted to
 persons performing investor relations activities, amendments which alter, extend or accelerate
 the terms of vesting applicable to any Options or Performance-Based Awards; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. changes to the termination provisions of
 an Option, Performance-Based Award or the 2022 Plan which do not entail an extension beyond
 the original fixed term.

<u>Term</u>

The 2022 Plan shall terminate automatically 10 years after the Effective Date and may be terminated on any earlier date as provided in the 2022 Plan.

<u>Obtaining a copy of the Plan</u>

A copy of the 2022 Plan is attached as Schedule "A" to the Company's information circular dated May 12, 2022 and filed on the Company's profile on SEDAR+ at www.sedarplus.ca and is available for review at Cozen O'Connor LLP, the registered offices of the Company, at Bentall 5, 550 Burrard Street, Suite 2501, Vancouver, British Columbia, V6C 2B5 during normal business hours up to and including the date of the Meeting.

<u>Approval of the Plan</u>

The 2022 Plan is subject to the re-approval of the Exchange and if the Exchange finds the disclosure in this Information Circular to be inadequate, then the Shareholder approval may not be accepted by the Exchange. On May 27, 2025, the Company received conditional approval to the 2022 Plan from the Exchange.

Accordingly, at the Meeting, Shareholders will be asked to consider and if thought fit, approve an ordinary resolution re-approving and confirming the 2022 Plan (the "**2022 Plan Resolution**"). In order to be effective, an ordinary resolution requires approval by a majority of the votes cast by Shareholders for such resolution. The text of the proposed resolution is set forth below. Unless otherwise directed, the persons named in the enclosed proxy intend to vote **IN FAVOUR** of this resolution.

"**BE IT RESOLVED, AS AN ORDINARY RESOLUTION, THAT:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Company's 2022 Equity Incentive
 Plan, including re-approval of a 10% rolling plan for stock options and a fixed plan of 14,587,604
 common shares for performance-based awards of restricted share units, performance share units
 and deferred share units, adopted by the board of directors of the Company effective as of
 May 12, 2022 (the "**2022 Plan** "), in the form attached as Schedule "A"
 to the management information circular of the Company dated May 12, 2022, be and is hereby
 confirmed, ratified and re-approved, and the Company has the ability to grant awards under
 the 2022 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the board of directors (the "**Board** ")
 of the Company is hereby authorized to make such amendments to the 2022 Plan from time to
 time, as may be required by the applicable regulatory authorities, or as may be considered
 appropriate by the Board, in its sole discretion, provided always that such amendments be
 subject to the approval of the regulatory authorities, if applicable, and in certain cases,
 in accordance with the terms of the 2022 Plan, the approval of the Shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. any one director or officer of the Company
 is hereby authorized and directed, acting for, in the name of and on behalf of the Company,
 to execute or cause to be executed, under the seal of the Company or otherwise and to deliver
 or to cause to be delivered, all such other deeds, documents, instruments and assurances
 and to do or cause to be done all such other acts as, in the opinion of such director or
 officer of the Company, may be necessary or desirable to carry out the terms of the foregoing
 resolutions."

**Management recommends that Shareholders vote for the approval of the 2022 Plan. It is the intention of the Designated Persons named in the enclosed form of proxy, if not expressly directed otherwise in such form of proxy, to vote such proxy FOR the 2022 Plan Resolution.**

**ADDITIONAL INFORMATION**

Additional information relating to the Company is available on SEDAR+ at www.sedarplus.ca. Shareholders may contact the Company at its office at 3329 Aberdeen Road, Lower Nicola, BC V0K 1Y0, to request copies of the Company's financial statements and related Management's Discussion and Analysis (the "**MD&A**"). Financial information is provided in the Company's comparative annual financial statements and MD&A for its most recently completed financial year and in the financial statements and MD&A for subsequent financial periods, which are available at SEDAR+ www.sedarplus.ca.

**OTHER MATTERS**

Other than the above, management of the Company knows of no other matters to come before the Meeting other than those referred to in the Notice of Meeting. However, if any other matters that are not known to management should properly come before the Meeting, the accompanying form of proxy confers discretionary authority upon the persons named therein to vote on such matters in accordance with their best judgment.

**APPROVAL OF THE BOARD OF DIRECTORS**

The contents of this Information Circular have been approved, and the delivery of it to each Shareholder entitled thereto and to the appropriate regulatory agencies has been authorized, by the Board.

Dated at Lower Nicola, British Columbia as of this 10<sup>th</sup> day of June, 2025.

**ON BEHALF OF THE BOARD OF DIRECTORS OF**

---

| |
|:---|
| **NICOLA MINING INC.** |
| "Peter Espig" |
| Peter Espig |
| President, Chief Executive Officer and Director |

---

**SCHEDULE "A"**

**CHANGE OF AUDITOR REPORTING PACKAGE**

**NICOLA MINING INC.**

**Change of Auditor**

---

| | |
|:---|:---|
| **To:** | **British Columbia Securities Commission** |
|  | **Alberta Securities Commission** |
|  | **Ontario Securities Commission** |
| **And to:** | **Davidson & Company LLP ("Davidson")** |
| **And to:** | **Crowe MacKay LLP ("Crowe MacKay")** |
| **Re:** | **Notice of Change of Auditor Pursuant to Section 4.11 of National Instrument 51-102 - *Continuance Disclosure Obligations* ("NI 51-102")** |

---

Pursuant to Section 4.11 of NI 51-102, Nicola Mining Inc. (the "**Company**") hereby gives notice of the change of its auditor from Davidson to Crowe MacKay. In accordance with N1 51-102, the Company hereby states that:

1. Davidson
 has resigned as the Company's auditor effective January 23<sup>rd</sup>, 2025;

2. the resignation of Davidson and the appointment
 of Crowe MacKay as the Company's auditor have been considered and approved by the Company's
 audit committee and the Company's board of directors;

3. Davidson has not expressed any modified opinion
 in any audit reports during the period in which Davidson was the Company's auditor;
 and

4. there have been no "reportable events"
 within the meaning assigned under subsection 4.11(1) of NI 51-102.

**Dated** the 23<sup>rd</sup> day of January, 2025.

---

| |
|:---|
| **BY ORDER OF THE BOARD OF DIRECTORS** |
| **OF NICOLA MINING INC.** |
| "Peter Espig" |
| Peter Espig |
| Chief Executive Officer and Director |

---

---

| | |
|:---|:---|
| ![](tm264113d4_ex4-1img001.jpg) | **Crowe MacKay LLP**<br> 1100 - 1177 West Hastings Street<br> Vancouver, BC V6E 4T5 <br> Main +1 (604) 687-4511 <br> Fax +1 (604) 687-5805<br> www.crowemackay.ca |

---

January 24, 2025

British Columbia Securities Commission

Alberta Securities Commission

Ontario Securities Commission

Dear Sirs/Mesdames,

Re: Nicola Mining Inc. – Notice of Change of Auditor

As required by National Instrument 51-102, we confirm that we have reviewed the information contained in the Notice of Change of Auditor (the "Notice") dated January 16, 2025 by Nicola Mining Inc. and, based on our knowledge of such information at this time, we agree with the information contained in the Notice.

---

| |
|:---|
| Yours very truly, |
| /s/ Crowe MacKay LLP |
| Crowe MacKay LLP |
| Chartered Professional Accountants |

---

cc: TSX Venture Exchange

![](tm264113d4_ex4-1img002.jpg)

January 23, 2025

**Alberta Securities Commission**

**British Columbia Securities Commission**

**Ontario Securities Commission**

Dear Sirs / Mesdames

---

| | |
|:---|:---|
| **Re:** | **Nicola Mining Inc. (the "Company")** |
| | **Notice Pursuant to NI 51 – 102 of Change of Auditor** |

---

In accordance with National Instrument 51-102, we have read the Company's Change of Auditor Notice dated January 16, 2025 and agree with the information contained therein, based upon our knowledge of the information at this date.

Should you require clarification or further information, please do not hesitate to contact the writer.

---

| |
|:---|
| Yours very truly, |
| /s/ DAVIDSON & COMPANY LLP |
| **DAVIDSON & COMPANY LLP** |
| Chartered Professional Accountants |

---

**cc: TSX Venture Exchange**

## Exhibit 4.2

**Exhibit 4.2**

![](tm264113d4_ex4-1img004.jpg)

**NICOLA MINING INC.**

**ANNUAL INFORMATION FORM**

**FOR THE FINANCIAL YEAR ENDED**

**DECEMBER 31, 2024**

**September 22, 2025**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **ADVISORIES** | **1** |
| **GLOSSARY OF TERMS** | **5** |
| **CORPORATE STRUCTURE** | **9** |
| **GENERAL DEVELOPMENT OF THE BUSINESS OF THE COMPANY** | **9** |
| **DESCRIPTION OF THE BUSINESS OF THE COMPANY** | **12** |
| **SOURCES OF AVAILABLE FUNDS AND PRINCIPAL PURPOSES** | **18** |
| **RISK FACTORS** | **19** |
| **DESCRIPTION OF CAPITAL STRUCTURE** | **28** |
| **MARKET FOR SECURITIES** | **29** |
| **ESCROWED SECURITIES** | **30** |
| **DIVIDENDS AND DISTRIBUTIONS** | **30** |
| **DIRECTORS AND OFFICERS** | **30** |
| **AUDIT COMMITTEE** | **34** |
| **LEGAL PROCEEDINGS AND REGULATORY ACTIONS** | **36** |
| **INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS** | **36** |
| **CORPORATE GOVERNANCE** | **36** |
| **AUDITOR, TRANSFER AGENT AND REGISTRAR** | **39** |
| **MATERIAL CONTRACTS** | **39** |
| **INTERESTS OF EXPERTS** | **39** |
| **ADDITIONAL INFORMATION** | **39** |

---

**SCHEDULE**

**SCHEDULE A – Audit Committee Charter**

**Schedule B – Compensation Committee Charter**

**Schedule C – Corporate Governance Charter**

**ADVISORIES**

*In this Annual Information Form ("**AIF**"), unless otherwise specified or if the context otherwise requires, references to "we", "us", "our", "its", the "Company" or Nicola" mean Nicola Mining Inc. and its subsidiary, Huldra Properties Inc. The information in this AIF is stated as at December 31, 2024 unless otherwise indicated. For additional information and details, readers are referred to the audited consolidated financial statements for the year ended December 31, 2024 and notes that follow, as well as the accompanying annual **MD&A** (as defined herein), which are available on the Canadian Securities Administrator's SEDAR+ System at www.SEDAR+plus.ca.*

**Cautionary Statement Regarding Forward-Looking Information and Statements**

This AIF contains forward-looking information and statements (collectively, "**forward-looking statements**"). These forward-looking statements relate to Nicola's current expectations, estimates and projections as to future events or Nicola's future performance and are provided to allow readers a better understanding of Nicola's business and prospects and may not be suitable for other purposes. All statements, other than statements of historical fact, may be considered forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in, or suggested by, such forward-looking statements. Nicola believes the expectations reflected in the forward-looking statements included in this AIF are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date of this AIF and are expressly qualified, in their entirety, by this cautionary statement. Nicola assumes no obligation to revise or update these statements except as required pursuant to applicable securities laws

In particular, this AIF contains forward-looking statements pertaining to the following:

&nbsp;&nbsp;&nbsp;&nbsp;· expectations
 regarding the Company's future operations and strategic direction;

· the
 Company's reliance on key management personnel and the potential impact of changes to senior leadership;

· the
 Company's current and proposed development initiatives, operational plans and timelines;

· anticipated
 costs, schedules and availability of services necessary to support the Company's projects and operations;

· environmental
 considerations, compliance obligations and potential liabilities arising from exploration, development, extraction and related activities;

· risks
 related to property title, as well as the acquisition, maintenance and renewal of significant licenses, concessions, and permits;

· the
Company's capital structure, liquidity position and funding needs for both ongoing and future initiatives;

· the Company's
 ability to secure additional financing or access capital markets on terms that are commercially
 reasonable and in line with business objectives; and

· other
 statements under the heading *"Management's Discussion and Analysis".* 

With respect to forward-looking statements contained in this AIF, the Company has made assumptions regarding, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;· the
 Company's continued access to adequate services and supplies, as supported by disclosures elsewhere in this document;

· the
 persistence of favourable economic conditions, stable commodity prices, and suitable foreign exchange and interest rates, as well
 as ongoing access to capital and debt markets;

· the
 ongoing availability of a qualified workforce to support the Company's operations;

Nicola Mining Inc. \| Annual Information Form Page 1

&nbsp;&nbsp;&nbsp;&nbsp;· that
 exploration schedules and associated capital costs remain accurately estimated and are not materially impacted by unforeseen events
 or adverse weather conditions, consistent with the considerations outlined in this document;

· that
 any environmental or other legal proceedings or disputes, if initiated against the Company, are satisfactorily resolved, and that
 the Company maintains stable relationships with its business partners and relevant governmental authorities;

· the
 Company's capacity to secure and maintain financing on terms that are acceptable and in line with its operational objectives;

· the
 influence of prevailing and emerging competition within the industry;

· potential
 changes to applicable laws, regulations and rules impacting the Company's activities, as may be further detailed in this document;

· the
 Company's ability to attract and retain key personnel critical to its success; and

· the
 absence of material adverse developments in the industry or within the broader Canadian and global economy, including those attributable
 to or arising from evolving global tariff policies, increased trade barriers and their resulting impact on international trade flows
 and broader economic stability.

These forward-looking statements are based upon certain material factors, assumptions and analyses that were applied in drawing a conclusion or making a forecast or projection, including management's experience and perceptions of historical trends, current market conditions and expected future developments, the timing and amount of capital and other expenditures, and other factors believed to be reasonable in the circumstances.

By their nature, forward-looking statements are subject to inherent risks and uncertainties which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. A variety of material factors, many of which are beyond the control of the Company, could cause actual results to differ materially from current expectations of estimated or anticipated events or results. The risks, uncertainties and other factors that could influence actual results include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;· the
 Company's potential challenges in managing its operations effectively;

· broad
 economic and business conditions, including those arising from shifting global tariff policies, increased trade barriers and their
 resulting effects on both international trade flows and overall economic stability;

· the
 presence of negative operating cash flow within the Company;

· the
 Company's capacity to secure additional financing necessary to carry out the activities outlined in the AIF;

· possible
 increases in both capital and operating expenditures;

· fluctuations
in commodity prices and in the market price of the Company's Common Shares;

· inherent risks associated with the mineral exploration
 industry as a whole;

· the
Company's ability to adhere to relevant governmental regulations and standards;

· risks stemming from regulatory changes or governmental
 actions;

· competition
 within the mineral exploration sector; and

· other
 factors as more particularly described under the heading *"Risk Factors"*.

Readers are cautioned that the foregoing list of factors is not exhaustive and that other factors may emerge from time to time. It is not possible for management to predict all such factors and to assess in advance the impact of each such factor on the business of the Company, or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement. Readers are also cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. Although the forward-looking statements contained in this AIF are based upon what management of the Company currently believe to be reasonable assumptions, actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur. The forward-looking statements contained herein are made as of the date of this AIF and, other than as specifically required by law, the Company does not assume any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Nicola Mining Inc. \| Annual Information Form Page 2

The Company has included the above summary of assumptions and risks related to forward-looking statements contained in this AIF in order to provide investors with a more complete perspective on the Company's current and future operations and such information may not be appropriate for other purposes.

**Additional information on these and other factors is available in the reports filed by the Company with Canadian securities regulators and available under the Company's profile on SEDAR+ at www.SEDAR+plus.ca. The forward-looking statements and information contained in this AIF are made as of the date hereof.**

**Readers are cautioned that the preparation of financial statements in accordance with international financial reporting standards in Canada requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available and as the economic environment changes. The information contained in this AIF, including the documents incorporated by reference herein, identifies additional factors that could affect the operating results and performance of the Company. Readers are encouraged to carefully consider such factors.**

**Readers are also cautioned against placing undue reliance on forward-looking statements, which are given as of the date expressed in this AIF, or the MD&A disclosure incorporated by reference herein, and not to use future-oriented information or financial outlooks for anything other than their intended purpose. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The Company undertakes no obligation to publicly update or revise any forward-looking statements in this AIF or the MD&A or other disclosure incorporated by reference herein, whether as a result of new information, future events or otherwise, except as required by law.**

**Technical Information**

Unless otherwise noted, the disclosure contained in this AIF of a scientific or technical nature for the New Craigmont Project is based on the technical report prepared by Kevin Wells, P.Geo., and James N. Gray, P.Geo. dated May 21, 2020 and entitled "*NI 43 -101 Technical Report on the Preliminary Copper Resource for the Southern Dump and 3060 Portal Dumps*" prepared in accordance with the requirements of NI 43-101.

Any mineral reserve or resource figures, and scientific, technical, or projected economic information or estimates referred to in this AIF are estimates, and no assurances can be given that the information will materialize. Such information is based on expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the information included in this AIF is well established, the information by its nature is imprecise and depends, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such estimates of such information are inaccurate or are reduced in the future, this could have a material adverse impact on the Company.

Reference should be made to the full text of the Technical Report which has been filed with Canadian securities regulatory authorities pursuant to NI 43-101 and is available for review under the Company's profile on SEDAR+ at www.SEDAR+plus.ca.

William Whitty, P. Geo., the VP of Exploration of the Company and a "Qualified Person" under NI 43-101, reviewed and approved the written scientific and technical disclosure contained in this AIF.

Nicola Mining Inc. \| Annual Information Form Page 3

**Monetary References**

Except as otherwise indicated, all dollar amounts in this AIF are expressed in Canadian dollars and references to $ are to Canadian dollars. References to US$ are to United States dollars.

**Securities Reference**

Except as otherwise indicated, all information contained in this AIF relating to the securities of the Company is presented on a post-Consolidation (as defined herein) basis.

Nicola Mining Inc. \| Annual Information Form Page 4

**GLOSSARY OF TERMS**

In this AIF, unless otherwise indicated or the context otherwise requires, the following terms shall have the indicated meanings. Words importing the singular include the plural and vice versa and words importing any gender include all genders. A reference to an agreement means the agreement as it may be amended, supplemented or restated from time to time.

---

| | |
|:---|:---|
| **"**Affiliate**"** | means a company that is affiliated with another company as described below. A company is an Affiliate of another company if (a) one of them is the subsidiary of the other or (b) each of them is controlled by the same person. A company is "controlled" by a person if (a) voting securities of the company are held, other than by way of security only, by or for the benefit of that person and (b) the voting securities, if voted, entitle the person to elect a majority of the directors of the company. A person beneficially owns securities that are beneficially owned by (a) a company controlled by that person or (b) an Affiliate of that person or an Affiliate of any company controlled by that person. |
| **"AIF"** | means this Annual Information Form dated September 22, 2025. |
| **"Applicants"** | has the meaning ascribed to it under the heading *Directors and Officers – Corporate Cease Trade orders, Bankruptcies, Penalties or Sanctions*. |
| **"ARO"** | means asset retirement obligations. |
| **"Audit Committee"** | means the audit committee of the Company. |
| **"Audit Committee Charter"** | means the audit committee charter. |
| **"Author"** | means Kevin Wells, P. Geo. and James N. Gray, P. Geo., the authors of the Technical Report. |
| **"BCBCA"** | means the *Business Corporations Act* (British Columbia), and the regulations thereunder, as amended from time to time. |
| **"BCSC"** | British Columbia Securities Commission. |
| **"Blue Lagoon"** | means Blue Lagoon Resources Inc. |
| **"Board"** | means the board of directors of the Company. |
| **"CCAA"** | means the *Companies' Creditors Arrangement Act* (Canada). |
| **"CCAA Proceeding"** | has the meaning ascribed to it under the heading *Directors and Officers – Corporate Cease Trade orders, Bankruptcies, Penalties or Sanctions*. |
| **"CEO"** | means chief executive officer. |
| **"CFO"** | means chief financial officer. |
| **"Common Share"** | means a common share in the capital of the Company. |

---

Nicola Mining Inc. \| Annual Information Form Page 5

---

| | |
|:---|:---|
| **"company"** | unless specifically indicated otherwise, means a corporation, incorporated association or organization, body corporate, partnership, trust, association or other entity other than an individual. |
| "**Company**" or "**Nicola**" | means Nicola Mining Inc., a company incorporated under the laws of the Province of British Columbia. |
| **"Compensation Committee"** | means the compensation committee of the Company. |
| **"Compensation Committee Charter"** | means the compensation committee charter adopted by the Board on July 7, 2023. |
| **"Consolidation"** | means the consolidation of the Common Shares which occurred on November 17, 2023, whereby the Company consolidated its then issued and outstanding Common Shares on the basis of one (1) Common Share for every two (2) Common Shares. |
| **"Corporate Governance Committee"** | means the ccorporate governance committee of the Company. |
| **"Corporate Governance Committee Charter"** | means the corporate governance committee charter adopted by the Board. |
| **"Court"** | means the Supreme Court of British Columbia. |
| **"CSE"** | means the Canadian Securities Exchange, operated by CNSX Markets Inc. |
| **"Dominion Creek Gold Property"** | refers to a property consisting of eight mineral claims situated near Prince George, British Columbia, in which the Company holds a 50% ownership interest acquired from High Range Exploration Ltd. |
| **"DSUs"** | means deferred share units of the Company. |
| **"Equity Incentive Plan"** | means the equity incentive plan adopted by the Board on May 12, 2022, and as ratified by shareholders of the Company on July 11, 2025. |
| **"High Range"** | Means High Range Exploration Ltd. |
| **"Huldra Properties"** | means Huldra Properties Inc., the Company's wholly-owned subsidiary, incorporated pursuant to the BCBCA. |
| **"Initial Order"** | has the meaning ascribed to it under the heading *Directors and Officers – Corporate Cease Trade orders, Bankruptcies, Penalties or Sanctions.* |
| **"IFRS"** | means International Financial Reporting Standards as adopted by the Canadian Accounting Standards Board, applied on a consistent basis with prior periods. |
| **"IP"** | means induced polarization. |
| **"LiDar"** | means light detection and ranging laser system. |

---

Nicola Mining Inc. \| Annual Information Form Page 6

---

| | |
|:---|:---|
| **"MD&A"** | means From 51-102F1 – *Management's Discussion & Analysis.* |
| **"Merritt Mill"** | refers to the Company's milling operations in Merritt, B.C. |
| **"Mines Act"** | means the Mines Act (British Columbia), and the regulations thereunder, as amended from time to time. |
| **"Monitor"** | means Grant Thornton LLP. |
| **"New Craigmont Project"** | refers to a property consisting of 22 mineral claims and 10 mineral leases situated near Lower Nicola, British Columbia. |
| **"NGOs"** | means certain non-governmental organizations. |
| **"NI 43-101"** | means National Instrument 43-101 – *Standards of Disclosure for Mineral Projects*. |
| **"NI 51-102"** | means National Instrument 51-102 – *Continuous Disclosure Obligations*. |
| **"NI 52-110"** | means National Instrument 52-110 – *Audit Committees*. |
| **"NI 58-101"** | means National Instrument 58-101 – *Disclosure of Corporate Governance Practices*. |
| **"Ocean Partners UK"** | Ocean Partners UK Limited, a United Kingdom-based metals trading firm. |
| **"Ocean Partners Holdings"** | Ocean Partners Holdings Company |
| **"Options"** | means options to purchase Common Shares. |
| **"Oremex"** | means Oremex Silver Inc. |
| **"Osisko"** | means Osisko Development Corp. |
| **"Performance-Based Awards"** | means RSUs, PSUs and DSUs collectively. |
| **"Plan"** | means the Company's Plan of Compromise and Arrangement dated August 8, 2014. |
| **"PSUs"** | means performance share units of the Company. |
| **"Qualified Person"** | has the meaning ascribed to such term in NI 43-101. |
| **"Reporting Issuer"** | has the meaning ascribed to such term in the *Securities Act* (British Columbia), as amended. |
| **"RSUs"** | means restricted share units of the Company. |
| **"SEDAR+"** | means the System for Electronic Document Analysis and Retrieval. |
| **"Technical Report"** | means the technical report of the Author dated May 21, 2020 entitled *"NI 43-101 Technical Report on the Preliminary Copper Resource for the Southern Dump and 3060 Portal Dumps"* prepared in accordance with the requirements of NI 43-101. |

---

Nicola Mining Inc. \| Annual Information Form Page 7

---

| | |
|:---|:---|
| **"Treasure Mountain Project"** | refers to a property consisting of 30 mineral claims and 1 mineral leases situated near Hope, British Columbia. |
| **"TSX"** | means the Toronto Stock Exchange. |
| **"TSXV"** | means the TSX Venture Exchange Inc. |
| **"Units"** | means a security of the Company comprised of one or more of any combination of Common Shares, Warrants, or other securities of the Company, issued together as a single unit pursuant to the terms of the applicable offering. |
| "**United States**", "**USA**" or "**US**" | means, collectively, the United States of America, its territories and possessions. |
| **"Warrant"** | means a Common Share purchase warrant of the Company. |
| **"Warrant Share"** | means a Common Share issued or issuable by the Company upon the valid exercise of a Warrant in accordance with its terms. |
| **"ZTEM"** | means Z-Axis tipper electromagnetic. |

---

Nicola Mining Inc. \| Annual Information Form Page 8

**CORPORATE STRUCTURE**

**Name, Address and Incorporation**

The Company was incorporated by registration of its Memorandum and Articles pursuant to the provisions of the *Company Act* (British Columbia) on March 31, 1980 as "Huldra Silver Corporation", with an authorized capital of 10,000,000 Common Shares without par value.

On April 21, 1980, the Company altered its Memorandum to change its name to "Huldra Silver Inc." and to increase its authorized capital to 50,000,000 Common Shares without par value.

On April 9, 2005, the Company transitioned from the *Company Act* (British Columbia) to the BCBCA. At that time the Company filed its Notice of Articles, which effectively replaced its Memorandum, and adopted new Articles.

On June 23, 2010, the Company's shareholders approved an amendment to the Company's Notice of Articles to remove the pre-existing company provisions and to increase the authorized capital of the Company to an unlimited number of Common Shares without par value. On the same date, the Company's shareholders approved an amendment to the Company's Articles to bring the provisions of the Articles in line with the provisions of the BCBCA. On July 12, 2010, the Company filed a Notice of Alteration with respect to the amendment to the Notice of Articles.

On June 1, 2015, the Company changed its name from "Huldra Silver Inc." to "Nicola Mining Inc." and consolidated its issued and outstanding Common Shares on the basis of one (1) Common Share for every five (5) Common Shares.

On November 17, 2023, the Company completed the Consolidation whereby it consolidated its issued and outstanding Common Shares on the basis of one (1) Common Share for every two (2) Common Shares outstanding prior to the completion of the Consolidation.

The Company's head office is located at 3329 Aberdeen Road, Lower Nicola, British Columbia, V0K 1Y0, and its registered office is located at Suite 2501, 550 Burrard Street, Vancouver, British Columbia, V6C 2B5.

The Common Shares are listed and traded on the TSXV under the symbol "NIM" and the Frankfurt Securities Exchange under the symbol "HLI". On November 3, 2021, the Company obtained Depository Trust Company eligibility in United States, and its Common Shares are quoted on OTCQB operated by the OTC Markets Group Inc. under the ticker "HUSIF". The Company is a Reporting Issuer in British Columbia, Alberta and Ontario and files its continuous disclosure documents on SEDAR+ at <u>www.SEDAR+plus.ca</u>. The Company's filings through SEDAR+ are not incorporated by reference in this AIF.

**Intercorporate Relationships**

As of the date of this AIF, the Company has one wholly-owned subsidiary, Huldra Properties Inc. Huldra Properties was created pursuant to the BCBCA by an amalgamation between 0913103B.C. Ltd. And Huldra Properties on January 1, 2016. Huldra Properties' head office is located at 3329 Aberdeen Road, Lower Nicola, British Columbia, V0K 1Y0 and its registered office is located at Suite 2501, 550 Burrard Street, Vancouver, British Columbia, V6C 2B5.

**GENERAL DEVELOPMENT OF THE BUSINESS OF THE COMPANY**

**Overview**

Nicola is a junior exploration and custom milling company focused on the acquisition, exploration and development of mineral properties in British Columbia, Canada. The Company operates the Merritt Mill and holds interests in the New Craigmont Project, Treasure Mountain Project and Dominion Creek Gold Property.

Nicola Mining Inc. \| Annual Information Form Page 9

**Three Year History**

A detailed description on the significant developments of the business of the Company for the past three years is set out below.

***Current Fiscal Year***

On January 3, 2025, the Company converted the remaining outstanding principal and interest totaling $49,472 from a convertible debenture, scheduled to mature on January 9, 2025, into 246,995 Common Shares at a deemed price of $0.20 per Common Share.

On January 9, 2025, the Company converted $411,583 in accrued interest for the year ended December 31, 2024 from a convertible debenture, maturing on November 21, 2025, into 1,469,935 Common Shares at a deemed price of $0.28 per Common Share.

During the month of January and March 2025, the Company issued 325,000 Common Shares in connection with the exercise of Options. Total proceeds received were $76,500.

On March 12, 2025, the Company completed a non-brokered private placement issuing 4,038,955 Units at $0.28 per Unit, for an aggregate gross proceeds of $1,130,907. The Company paid $63,827 of finder's fees, resulting a net proceeds of $1,067,080. Each Unit consisted of one Common Share and one-half of one Warrant, with each whole Warrant entitling the holder thereof to purchase one Warrant Share at a price of $0.40 per Warrant Share for a period of three years from the closing of the offering. The Warrants are subject to acceleration in the event that, during their exercise period and after the resale restrictions on the Common Shares have expired, the Common Shares trade at a closing price of $0.60 or greater per share on the TSXV (or any other exchange where they are listed) for ten consecutive trading days, in which case the Company may, by giving notice through a press release, accelerate the expiry date of the Warrants to the thirtieth (30<sup>th</sup>) day after such notice. On July 21, 2025, the Company gave notice of the acceleration of the Warrants issued on March 12, 2025. By the accelerated expiry date of August 20, 2025, all of the 2,019,477 Warrants then outstanding had been exercised, resulting in total proceeds of $807,791.

During the month of April 2025, debenture holders converted the principal and settled interest ($194,455) for the convertible debenture, that matures on November 21, 2025, into 1,072,287 Common Shares at a deemed price of $0.17 per Common Share.

During the months of July and August 2025, the Company issued 352,500 Common Shares in connection with the exercise of Options. Total proceeds received were $96,150.

During the month of September 2025, debenture holders converted the principal and interest of $4,212,000 into 23,326,362 Common Shares.

***Fiscal Year Ended December 31, 2024***

On December 3, 2024, the Company completed a flow- through private placement offering, pursuant to which it issued an aggregate of 1,641,790 Common Shares at a price of $0.335 per Common Share for aggregate gross proceeds of $550,000.

On December 18, 2024, the Company granted 500,000 Options to a consultant of the Company, which Options are exercisable into one Common Share at a price of $0.30 per Common Share until December 18, 2029.

On December 18, 2024, the Company granted an aggregate of 1,000,000 RSUs to certain directors, officers and employees of the Company, which RSUs vest into Common Shares on December 18, 2025.

Nicola Mining Inc. \| Annual Information Form Page 10

On December 18, 2024, the Company issued 1,469,935 Common Shares at a deemed price of $0.28 per Common Share in settlement of interest due on secured convertible debentures issued on November 21, 2019.

On April 12, 2024, the Company completed a non-brokered private placement by the issuance of 5,499,994 Common Shares at a price of $0.23 per Common Share for aggregate gross proceeds of $1,264,999, which Common Shares were issued on a flow-through basis pursuant to the *Income Tax Act* (Canada).

On April 18, 2024, the Company granted an aggregate of 3,000,000 Options to certain directors, officers, consultants and employees, which Options are exercisable at a price of $0.265 until April 18, 2029.

On March 19, 2024, Warwick Bay resigned as the CFO and secretary and Sam Wong was appointed as the CFO and secretary of the Company.

***Fiscal Year Ended December 31, 2023***

On November 17, 2023, the Company completed the Consolidation whereby it consolidated its issued and outstanding Common Shares on the basis of one (1) Common Share for every two (2) Common Shares.

On October 3, 2023, the Company granted 200,000 Options to one employee, which Options are exercisable into one Common Share at a price of $0.35 per Common Share until October 3, 2028.

On August 3, 2023, the Company granted 200,000 Options to one employee, which Options are exercisable into one Common Share at a price of $0.30 per Common Share until August 3, 2028.

On July 26, 2023, the Company granted 2,000,000 Options to certain directors, officers, consultants and employes, which Options are exercisable into one Common Share at a price of $0.36 per Common Share until July 26, 2028.

On May 2, 2023, the Company granted 100,000 Options to one consultant, which Options are exercisable into one Common Share at a price of $0.30 per Common Share until May 2, 2028.

***Fiscal Year Ended December 31, 2022***

On November 16, 2022, the Company completed a non-brokered private placement by the issuance of 3,024,735 Common Shares at a price of $0.19 per Common Share for aggregate gross proceeds of $574,700, which Common Shares were issued on a flow-through basis pursuant to the *Income Tax Act* (Canada).

On October 5, 2022, the Company granted 2,575,000 Options to directors, officers, consultants and employes, which Options are exercisable into one Common Share at a price of $0.16 per Common Share until September 28, 2027.

On May 18, 2022, the Company issued 135,294 Common Shares at a deemed price of $0.17 per Common Share in settlement of interest due on secured convertible debentures issued on May 20, 2020.

**Significant Acquisitions**

During the most recently completed financial year ended December 31, 2024, Nicola did not complete any acquisition that would be considered a "significant acquisition" as defined under Part 8 of NI 51-102. Accordingly, the Company has not filed a Form 51-102F4 – *Business Acquisition Report* in respect of any acquisition during the year.

Nicola Mining Inc. \| Annual Information Form Page 11

**DESCRIPTION OF THE BUSINESS OF THE COMPANY**

**General**

Nicola is a junior resource company engaged in two principal business segments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Mineral Exploration and Development

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Custom Milling Operations

These segments are considered reportable under IFRS as they represent distinct revenue-generating activities with separate operational and financial characteristics.

***Mineral Exploration and Development***

The mineral exploration and development segment encompasses Nicola's efforts to identify, acquire and advance mineral properties in British Columbia. The Company's principal exploration assets include the New Craigmont Project, the Treasure Mountain Project and the Dominion Creek Gold Property. These projects are all in the exploration or pre-commercial development stage and have not yet reached commercial production and are further described below.

*New Craigmont Project*

The New Craigmont Project, a historic copper mine site near Merritt, British Columbia, is the Company's flagship asset. It is permitted under Mine Permit M-68 and has been the focus of extensive geophysical surveys, soil sampling and diamond drilling. A mineral resource estimate was completed in 2020 for the Southern Mining Terraces and 3060 Portal Dump areas.

*Treasure Mountain Project*

The Treasure Mountain Project, located near Hope, British Columbia, is permitted for the removal of up to 60,000 tonnes of silver/lead/zinc mill feed annually but remains in care and maintenance. The Company has applied for a multi-year area-based exploration permit and plans to initiate an IP survey at the MB Zone.

*Dominion Creek Gold Property*

The Dominion Creek Gold Property, in which Nicola holds a 50% interest and a 75% economic benefit through a profit-sharing agreement, received its bulk sample permit in March 2025. Nicola and its partner, High Range, are preparing for potential mining and milling activities in the current year.

The Company conducts its own exploration activities, including geological mapping, drilling, and geophysical surveys, while subcontracting specialised services such as LiDAR and assay testing. The projects are not yet at the commercial production stage, and no sales have been made from these properties. The next steps toward commercialisation include further drilling, resource definition and economic assessments. The Company has not disclosed specific cost estimates or timelines for achieving commercial production.

***Custom Milling Operations***

The custom milling operations segment is centred around the Merritt Mill, a fully permitted and operational facility located near Merritt, British Columbia. The mill is licensed to process up to 200 tonnes per day of silver, lead and gold ore. Nicola provides toll milling services to third-party mining companies, producing concentrate that is sold to offtake partners such as Ocean Partners UK. In 2024, the Company generated $818,000 in milling revenue and $1.97 million from gravel, ash, soil and other income. This compares to $1.62 million and $8.15 million, respectively, in 2023. All revenue was derived from sales to external customers and there were no sales to joint ventures, equity-accounted entities, or controlling shareholders.

Nicola Mining Inc. \| Annual Information Form Page 12

The Merritt Mill has processed ore from clients including Blue Lagoon and Osisko under profit-sharing agreements. The facility underwent upgrades in 2023 to support increased throughput and quality control. The Company continues to seek new custom milling contracts to support its cash flow and maintain operational flexibility.

**Production and Services**

The Company's custom milling services are conducted at its wholly-owned Merritt Mill, located near Merritt, British Columbia. The Merritt Mill is a fully permitted facility authorized under the Mines Act to process up to 200 tonnes per day of silver, lead and gold ore. The mill was originally constructed in 2012 and has undergone extensive modifications since 2017, including upgrades completed in 2023 to enhance its processing capabilities. The Company provides toll milling services to third-party mining companies, whereby it processes ore into concentrate on behalf of clients. The concentrate is then sold to offtake partners, such as Ocean Partners UK, under purchase agreements. Nicola has entered into profit-sharing agreements with clients including Blue Lagoon and Osisko, under which it receives a share of the proceeds from the sale of processed concentrate.

The method of providing milling services involves receiving ore shipments from clients, processing the ore through crushing, grinding and flotation circuits at the Merritt Mill, and producing gold and silver concentrate. The concentrate is then shipped to offtake partners for sale. The Company also provides ancillary services such as storage, logistics coordination and compliance with environmental and safety regulations.

In addition to milling, Nicola is actively engaged in mineral exploration and development at its New Craigmont, Treasure Mountain and Dominion Creek properties. These projects are in the exploration stage and are not yet producing. The Company's exploration activities include geological mapping, soil and rock sampling, geophysical surveys (including ZTEM and IP), and diamond drilling. These activities are conducted by Nicola's in-house geological team, with certain specialized services subcontracted to third-party providers. The Company has received multi-year area-based permits that allow for extensive exploration activities, including trenching and drilling, through to 2027.

The Company does not currently produce any mineral products for sale from its exploration properties. However, it anticipates potential production from the Dominion Creek Gold Property in 2025, pending the commencement of bulk sampling and milling operations in partnership with High Range, following the receipt of a bulk sample permit in March 2025.

**Specialized Skill and Knowledge**

Nicola's operations require specialized geological, metallurgical and engineering expertise, particularly in mineral exploration, resource modelling and custom milling. The Company relies on experienced geologists for exploration planning and execution, including geophysical surveys, soil sampling, and diamond drilling. Metallurgical knowledge is essential for operating and optimizing the Merritt Mill, which processes complex ore types into concentrate. Nicola also depends on regulatory and permitting expertise to navigate environmental and mining legislation. These skills are sourced through a combination of in-house personnel and external consultants. The Company has been able to access the required expertise without material constraint.

**Competitive Conditions**

The Company operates in a highly competitive environment. In mineral exploration, it competes with junior and senior mining companies for land, capital, and talent—many with greater resources. In custom milling, Nicola's Merritt Mill competes with other processors on capacity, turnaround and pricing. Its competitive edge lies in its fully permitted 200 tpd facility, flexible profit-sharing agreements and established client relationships. However, limited financial resources and reliance on third-party contracts constrain its position. Continued success depends on exploration outcomes, operational efficiency, and access to capital.

Nicola Mining Inc. \| Annual Information Form Page 13

**Cycles**

The Company's business segments—mineral exploration and custom milling—are subject to seasonal and cyclical influences. Exploration activities are typically concentrated in the spring through autumn months due to weather and ground conditions in British Columbia, which limit access and drilling during winter. Custom milling operations at the Merritt Mill are influenced by the availability and scheduling of third-party mill feed contracts, which can vary throughout the year. As such, both revenue and expenses may fluctuate significantly between quarters depending on project activity and contract timing.

**Economic Dependence**

Nicola is substantially dependent on a key offtake and financing agreement with Ocean Partners UK, a metals trading firm. This agreement governs the sale of gold and silver concentrate produced at the Company's Merritt Mill and includes a revolving prepayment facility. Under the amended agreement signed on July 12, 2022, Ocean Partners UK agreed to purchase concentrate from Nicola and increased the revolving prepayment facility from US$500,000 to US$3,000,000. Nicola has drawn down US$750,000 under this facility, which was repaid December 29, 2022. The agreement provides critical working capital support and a guaranteed buyer for concentrate produced under custom milling contracts, including those with Blue Lagoon and Osisko. The Company's reliance on this agreement is significant, as Ocean Partners UK accounted for 100% of Nicola's milling revenue in both 2023 and 2024. The agreement also enables Nicola to process third-party ore at its Merritt Mill, which is a core component of its business model.

The Company also entered into a Mining and Milling Profit Share Agreement with High Range for the Dominion Creek Property. This agreement entitles Nicola to a 75% economic interest in the project and includes provisions for funding initial development and processing ore at the Merritt Mill.

These contracts are essential to Nicola's operations and financial viability, providing both revenue generation and access to capital.

**Changes to Contracts**

The Company does not currently anticipate any material renegotiation or termination of contracts that would significantly affect its business. However, the Company's operations rely heavily on custom milling agreements, particularly with Ocean Partners UK. Any changes to this offtake agreement could impact revenue and working capital. Similarly, profit-sharing agreements with High Range and Osisko are integral to the Merritt Mill's utilization. While no changes are expected, any termination or renegotiation of these agreements could adversely affect operational continuity and financial performance.

**Environmental Protection**

Nicola is subject to environmental protection regulations under the Mines Act and related provincial legislation. These requirements have a material impact on the Company's capital expenditures, primarily through its asset retirement obligations or "**ARO**", which totaled $14.2 million as of December 31, 20241. The ARO reflects estimated future reclamation and closure costs for the Merritt Mill and Treasure Mountain Project, including tailings management and site remediation.

In 2024, the Company recognized a $745,776 reduction in ARO due to changes in estimates, partially offset by $459,231 in accretion expense. These environmental liabilities directly affect the Company's net loss and working capital position. While no immediate capital outlays were required in 2024, the obligations are expected to result in significant future expenditures over the next 8 to 15 years.

Environmental compliance also influences the Company's competitive position, as it must maintain sufficient financial assurance (e.g., $1.4 million in restricted cash) to satisfy regulatory bonding requirements. These requirements may limit flexibility in capital allocation and increase the cost of operations relative to peers with lower environmental liabilities.

Nicola Mining Inc. \| Annual Information Form Page 14

Nicola remains committed to maintaining compliance and proactively managing its environmental responsibilities.

**Employees**

As of the date of this AIF, the Company 20 employees.

**MINERAL PROJECTS**

The Company's principal mineral project is the New Craigmont Project in Lower Nicola, B.C. For the purposes of mineral project disclosure required to be included in this AIF, the New Craigmont Project is the Company's sole material mineral project.

In addition to the New Craigmont Project, the Company holds a 100% interest in 30 mineral claims and 1 mineral lease comprising the Treasure Mountain Project located near Hope, B.C., subject to a 2% net smelter royalty. The Company also holds a 50% interest in 8 mineral claims comprising the Dominion Creek Gold Property located near Prince George, B.C.

**New Craigmont Project**

The following is an updated reproduction of the summary section from the Technical Report. Definitions contained in this section shall have the meanings ascribed to such definitions in the Technical Report and may not match definitions used elsewhere in this AIF. The Technical Report was prepared in accordance with NI 43-101 and has been filed with the securities regulatory authorities in Alberta, British Columbia and Ontario. Portions of the following information are based on assumptions, qualifications and procedures which are not fully described herein.

The Technical Report is incorporated by reference into this AIF. Readers are cautioned that the following summary should be read in the context of the qualifying statements, procedures and accompanying discussion within the complete Technical Report, and this summary is qualified in its entirety by the Technical Report.

**Property Description and Location**

The Craigmont Project is in southern British Columbia, 18 km northwest of the city of Merritt. The UTM coordinates for the Craigmont Project are 5563500 North and 648500 East (geographic projection: NAD 83, Zone 10N). Access to the property is provided by paved and gravel roads. Additional mineral claims totaling 828 hectares were staked in December 2019, as a result the Craigmont Project now consists of 22 mineral tenures and 10 mineral leases with a total area of 10,913 hectares.

Nicola Mining Inc. \| Annual Information Form Page 15

**Ownership**

The Craigmont Property is currently 100% owned by Nicola On March 3, 2011, Nicola agreed to buy all the outstanding shares of Craigmont Holdings Ltd. in consideration for certain cash and share payments.

On November 19, 2015, Nicola acquired the remaining shares of Craigmont Holdings Ltd. for a 2.0% net smelter royalty.

**History**

The property covers a large area along the southern extents of the Guichon Batholith, which is host to many copper prospects that have been intermittently explored since the early 1930's. The most important discovery to date has been the past producing Craigmont Copper-iron mine located in the central portion of the property.

The Craigmont Mine was operated by Craigmont Mines Ltd. from 1961 to 1967 as an open pit mine before moving to an underground sub-level cave operation from 1967 to 1982. The mine produced in excess of 36,750,000 tons at an average grade of 1.30% Cu, containing approximately 900 000 000 lbs. of copper. The mine was shut down in 1982 due to low copper prices.

Following the mine shutdown in 1982, Craigmont shipped up to 60,000 tonnes of clean metallurgical magnetite per year until 1992 from its stockpile to coal producers throughout North America for use in the coal flotation process. After 1992, Craigmont continued to produce a limited amount of magnetite product for the coal industry from re-worked iron fines in the tailings pond. This operation was shut down in 2014 due to economic grades of magnetite being exhausted.

**Status of Exploration**

Nicola has been actively exploring the property since the project ownership was consolidated in 2015. This work has consisted of over 18,000m of diamond drilling, property-wide geological mapping, widespread soil sampling, IP surveys, and property-wide aeromagnetic and ZTEM surveys. Additionally, 1869m of RC drilling at the historic mine dump and the higher grade 3060 portal.

**Geology and Mineralization**

The geology of the property is underlain by an east-northeast trending, steeply dipping volcanic pile of Upper Triassic Nicola Group rocks that are bound to the north by the multistage Early Jurassic-Late Triassic Guichon Creek Batholith and unconformably overlain by the Middle and Upper Cretaceous Spences Bridge Group. Most of the area is covered by thick gravel overburden.

Near the project area, the Border phase of the Guichon Creek Batholith varies in composition from quartz diorite to granodiorite and intrude the Nicola Group, a thick volcanic and sedimentary series of agglomerate, breccia, andesitic flows, limestone, argillite and greywacke. Nicola Group sediments immediately adjacent to the batholith are hornfelsed quartzo-feldspathic greywackes. Spences Bridge Group agglomerates and flows dip approximately 15 degrees to the south and crop out in the areas south and west of the Craigmont mine area.

The property holds at least two types of mineralization described as copper-iron skarn and copper porphyry. Carbonate-rich, silicate-rich or intrusive rocks along the southern flank of the Guichon Batholith host the two types of mineralization. Within the property, mineralization is commonly associated with copper and iron skarn assemblages. Chalcopyrite, magnetite, specularite and minor bornite are principal minerals. Accessory assemblages at the Craigmont Mine include supergene minerals such as chalcocite and native copper have developed above the mineralized body. Gold, molybdenum and silver contents are generally low.

Nicola Mining Inc. \| Annual Information Form Page 16

Several major faults cut through the property. Faults around the Craigmont mine include the northwest trending east and West Embayment Fault, the Mine East Fault and the East-West Fault.

**Sample Database and Validation**

A review of the sample collection and analysis practices used during the various drilling campaigns indicates that this work was conducted using generally accepted industry procedures.

Sampling programs conducted by Nicola were monitored using a QA/QC program that is typically accepted in the industry. It is the QPs' opinion that the database is sufficiently accurate and precise to generate a mineral resource estimate.

**Mineral Resource Estimate**

Two areas of Inferred Mineral Resource have been outlined, both consisting of historically subeconomic material remaining from past mining at the New Craigmont Project. A portion of the southern mine dumps, covering an area of 82.5 hectares, has been tested at a drill spacing of approximately 100 m. A smaller area (1.4 ha) of stockpiled material, adjacent to the 3060 portal, is of much smaller tonnage but of higher grade and is generally drilled at a 10-20 m spacing.

Resource tonnage is based on the volume between a LiDAR survey of current topography and a recent contractor generated pre-mine surface based on historic contour maps tied into current survey control. Density was assigned based on historic and current assumptions; no bulk density measurements are currently available. Future work must include density measurement work. The southern dump material was assigned a density of 1.8 t/m<sup>3</sup>; portal area material was assigned a density of 2.15 t/m<sup>3</sup>.

Inverse distance weighting was chosen as the most appropriate grade estimation approach due in part to the fact that the material being evaluated is not, in its present form, a naturally occurring mineral deposit. The southern dump material was estimated using 15x15x8 m blocks with 4 m composites from 60 RC holes. The 3060 portal area material was estimated using 5x5x4 m blocks and 4 m composites from 39 RC holes.

Material was classified as Inferred Mineral Resource where it was within the area of reasonably consistent drill spacing. In the southern dump area, blocks classified as Inferred are generally within 100 m of the closest sample and the drill spacing is approximately 100 m. In the portal area, drill spacing is typically less than 25 m and the resource extends a maximum of 40 m beyond drilling to the edge of the pile.

In order to establish reasonable prospects of eventual economic extraction a three-year trailing average copper price of US$2.8/lb and an anticipated annual production scenario was considered and a cut-off grade of 0.06% copper is deemed appropriate. The resource is included in Table 1.1.

Nicola Mining Inc. \| Annual Information Form Page 17

![](tm264113d4_ex4-1img005.jpg)

**Ongoing Exploration**

Ongoing exploration consists of drilling at the MARB/CAS, WP and Draken targets, all of which show signs of porphyry-style alteration and mineralization. To date, approximately 7000m of core has been drilled at these targets, and data analysis is ongoing. Geophysical and geochemical data from across the property was compiled and analyzed using machine learning and artificial intelligence to help generate exploration targets. Nicola is currently collaborating with the Mineral Deposit Research Unit (MDRU) at UBC on an academic study to investigate the potential and presence of porphyry copper systems at the New Craigmont Project.

**Recommendations**

The following work is recommended for the New Craigmont Project:

&nbsp;&nbsp;&nbsp;&nbsp;· Bulk
 density measurements are recommended to help boost the Resource confidence.

· Additional testing on the cost benefit of Tomra sorting
 of resource material.

· Trench
 sampling to determine the grade and volume of the fine material within the piles.

· Additional
 RC drilling at a spacing of 50 m on the Northern historic waste dump to determine if there is additional material to add to the resource.

· Create
 a 3D geological model of the property, particularly of the target areas.

· Collect
 XRF and SWIR data from the core on site to incorporate into in the geochemical/geophysical dataset to help refine porphyry targeting.

· Drill
 a large untested ZTEM anomaly north of the historic pit, which could represent a porphyry system.

For more information, please see the Technical Report a copy of which is filed under Nicola's profile on SEDAR+ at <u>www.sedarplus.ca</u>.

**SOURCES OF AVAILABLE FUNDS AND PRINCIPAL PURPOSES**

**Available Funds**

As of December 31, 2024, the Company had a working capital deficit of approximately $2,800,000. This figure does not include any grant income, as the Company did not report receiving government grants during the period.

**Business Objectives**

Nicola's intended use of available funds and strategic focus for 2025 includes:

***Objective #1 – Advance Exploration at New Craigmont Project***

&nbsp;&nbsp;&nbsp;&nbsp;· Finalize and execute drill targets
 in the WP, Marb and Cas Zones following successful 2024 results.

· Expand mineralized zones through step-out
 drilling at the Embayment Zone.

Nicola Mining Inc. \| Annual Information Form Page 18

***Objective #2 – Progress Dominion Creek Gold Project***

&nbsp;&nbsp;&nbsp;&nbsp;· Commence mining and milling operations in partnership with High Range following receipt of the bulk sample permit in March 2025.

***Objective #3 – Maintain and Expand Custom Milling Operations***

&nbsp;&nbsp;&nbsp;&nbsp;· Continue processing third-party mill feed at Merritt Mill under existing agreements with Osisko and Blue Lagoon.

· Secure additional custom milling contracts to improve revenue stability.

***Objective #4 – Strengthen Financial Position***

&nbsp;&nbsp;&nbsp;&nbsp;· Pursue equity financing and strategic partnerships to support exploration and operations.

· Manage convertible debenture obligations and maintain compliance with financial covenants.

***Objective #5 – Environmental and Regulatory Compliance***

&nbsp;&nbsp;&nbsp;&nbsp;· Maintain bonding and reclamation obligations totalling $1.4 million in restricted cash.

· Monitor and adapt to evolving environmental standards impacting the Merritt Mill and exploration sites.

Labour shortages, inflationary pressures, rising interest rates, and ongoing geopolitical instability—including the conflicts between Russia and Ukraine as well as Palestine and Israel—continue to affect global capital markets and supply chains. These macroeconomic and political factors may negatively impact the Company's ability to advance its business objectives, including exploration, custom milling, and capital raising efforts. As a result, the actual amount the Company spends on each intended use of funds may vary significantly from current plans and will depend on evolving conditions and the risks outlined under the heading "*Risk Factors*."

**RISK FACTORS**

The following specific factors could materially adversely affect the Company and should be considered when deciding whether to make an investment in the Company. You should carefully consider the risks described below, which are qualified in their entirety by reference to, and must be read in conjunction with, the detailed information appearing elsewhere in this AIF, and all other information contained in this AIF. The risks and uncertainties described in this AIF and the information incorporated by reference herein are those the Company currently believes to be material, but they are not the only ones the Company will face. If any of the following risks, or any other risks and uncertainties that the Company has not identified or that it currently considers not to be material, actually occur or become material risks, the Company's business, prospects, financial condition, results of operations and cash flows, and consequently the price of the Common Shares could be materially and adversely affected. In all these cases, the trading price of the Company's securities could decline, and prospective investors could lose all or part of their investment.

**Investors should carefully consider the risk factors set out below and consider all other information contained herein and in the Company's other public filings before making an investment decision.**

Any reference to "the Company" or "Nicola" in the risk factors refers to the Company and its subsidiary together on a consolidated basis.

Nicola Mining Inc. \| Annual Information Form Page 19

**Insufficient Capital**

The Company currently has minimal revenue producing operations and may continue to report a working capital deficit. To maintain its activities, the Company will require additional funds which may be obtained either by the sale of equity capital, debt financing, government grants or by entering into an option or joint venture agreement with a third party providing such funding. There is no assurance that the Company will be successful in obtaining such additional financing; failure to do so could result in the loss or substantial dilution of the Company. The Company's unallocated working capital may not suffice to fund its business goals and objects as stated elsewhere in the AIF.

The Company expects to continue to incur negative investing and operating cash flows until such time as it enters into commercial production of its properties. This will require the Company to deploy its working capital to fund such negative cash flow and to seek additional sources of financing. There is no assurance that any such financing sources will be available or sufficient to meet the Company's requirements. There is no assurance that the Company will be able to continue to raise equity capital or that the Company will not continue to incur losses.

**Lack of Operating Cash Flow**

The Company currently has no source of operating cash flow and is expected to continue to do so for the foreseeable future. The Company's failure to achieve profitability and positive operating cash flows could have a material adverse effect on its financial condition and results of operations. If the Company sustains losses over an extended period of time, it may be unable to continue its business. Further exploration and development of its mineral properties will require the commitment of substantial financial resources. It may be several years before the Company may generate any substantial revenues from operations, if at all. There can be no assurance that the Company will realize revenue or achieve profitability.

**Resale of Common Shares**

The continued operation of the Company will be dependent upon its ability to generate operating revenues and to procure additional financing. There can be no assurance that any such revenues can be generated or sustained or that other financing can be obtained. If the Company is unable to generate such revenues or obtain such additional financing, any investment in the Company may be lost. In such event, the probability of resale of the Common Shares purchased would be diminished.

**Exploration of Mineral Property Interests**

Although substantial benefits may be derived from the discovery of a major mineralized deposit, no assurance can be given that minerals will be discovered in sufficient quantities to justify commercial operations or that the funds required for development can be obtained on a timely basis. The discovery of mineral deposits is dependent upon a number of factors. The commercial viability of a mineral deposit once discovered is also dependent upon a number of factors, some of which relate to particular attributes of the deposit, such as size, grade and proximity to infrastructure, and some of which are more general such as commodity prices and government regulations, including environmental protection. Most of these factors are beyond the control of the Company. In addition, because of these risks, there is no certainty that the expenditures to be made by the Company on the exploration of its various mineral properties as described herein will result in the discovery of commercial quantities of ore. The Company has no history of operating earnings and the likelihood of success must be considered in light of problems, expenses, etc. which may be encountered in establishing a business.

Exploring and developing natural resource projects bears a high potential for all manner of risks. Additionally, few exploration projects successfully achieve development due to factors that cannot be predicted or foreseen. Moreover, even one such factor may result in the economic viability of a project being detrimentally impacted, such that it is neither feasible nor practical to proceed. Natural resource exploration involves many risks, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. Operations in which the Company has a direct or indirect interest will be subject to all the hazards and risks normally incidental to exploration, development and production of natural resources, any of which could result in work stoppages, damage to property, and possible environmental damage. If any of the Company's exploration programs are successful, there is a degree of uncertainty attributable to the calculation of resources and corresponding grades and in the analysis of the economic viability of future development and mineral extraction. In addition, the quantity of reserves and resources may vary depending on commodity prices and various technical and economic assumptions. Any material change in quantity of reserves, grade or recovery ratio, may affect the economic viability of the Company's properties.

Nicola Mining Inc. \| Annual Information Form Page 20

**Exploration, Development and Production Risks**

The exploration for and development of minerals involves significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. Few properties that are explored are ultimately developed into producing mines. There can be no guarantee that the estimates of quantities and qualities of minerals disclosed will be economically recoverable. With all mining operations there is uncertainty and, therefore, risk associated with operating parameters and costs resulting from the scaling up of extraction methods tested in pilot conditions. Mineral exploration is speculative in nature and there can be no assurance that any minerals discovered will result in an increase in the Company's resource base.

The Company's operations will be subject to all of the hazards and risks normally encountered in the exploration, development and production of minerals. These include unusual and unexpected geological formations, rock falls, seismic activity, flooding and other conditions involved in the extraction of material, any of which could result in damage to, or destruction of, mines and other producing facilities, damage to life or property, environmental damage and possible legal liability. In addition, operations are subject to hazards that may result in environmental pollution, and consequent liability that could have a material adverse impact on the business, operations and financial performance of the Company.

Substantial expenditures are required to establish Ore Reserves through drilling, to develop metallurgical processes to extract the metal from the ore and, in the case of new properties, to develop the mining and processing facilities and infrastructure at any site chosen for mining. Although substantial benefits may be derived from the discovery of a major mineralized deposit, no assurance can be given that minerals will be discovered in sufficient quantities to justify commercial operations or that funds required for development can be obtained on a timely basis. The economics of developing gold and other mineral properties is affected by many factors including the cost of operations, variations in the grade of ore mined, fluctuations in metal markets, costs of processing equipment and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals and environmental protection. The remoteness and restrictions on access of properties in which the Company has an interest will have an adverse effect on profitability as a result of higher infrastructure costs. There are also physical risks to the exploration personnel working in the terrain in which the Company's properties will be located, often in poor climate conditions.

The long-term commercial success of the Company depends on its ability to explore, develop and commercially produce minerals from its properties and to locate and acquire additional properties worthy of exploration and development for minerals. No assurance can be given that the Company will be able to locate satisfactory properties for acquisition or participation. Moreover, if such acquisitions or participations are identified, the Company may determine that current markets, terms of acquisition and participation or pricing conditions make such acquisitions or participation uneconomic.

**Mineral Resources and Reserves**

The figures for mineral resources for the Treasure Mountain Project disclosed in the Company's Annual Information Form for the year ended December 31, 2012, and in its technical report filed on SEDAR on June 12, 2012, are only estimates. Mineral reserves at the Treasure Mountain Project have not been defined therefore the mineral resources currently cannot be considered ore.

Nicola Mining Inc. \| Annual Information Form Page 21

The figures for Inferred Copper Resource for the Southern Dump and 3060 Portal Dumps at New Craigmont Project in the Technical Report and final ALS Metallurgy Laboratory report for upgrading and copper recovery test work filed on SEDAR on June 12, 2020, are only estimates. The inferred mineral resources are not mineral reserves as the Company has not yet demonstrated the economic viability. There is no certainty that any expenditures made in the exploration of the Company's mineral properties will result in identification of commercially recoverable quantities of ore or that ore reserves will be mined or processed profitably. In addition, substantial expenditures will be required to develop the mining and processing facilities and infrastructure at any site chosen for mining.

**Uncertainty of Economic Viability of Production from the Treasure Mountain Project**

The Company has not undertaken any preliminary economic assessment or preliminary feasibility study with respect to the Treasure Mountain Project or any of its other projects and does not intend to undertake such a study or assessment. There are significant risks associated with making a production decision without a valid, current, economic analysis and the Company may subsequently determine that recommencing operations at the Treasure Mountain Project is not economically feasible.

**Governmental Regulation and Policy**

Mining operations and exploration activities are subject to extensive laws and regulations. Such regulations relate to production, development, exploration, exports, imports, taxes and royalties, labor standards, occupational health, waste disposal, protection and remediation of the environment, toxic and radioactive substances, transportation safety and emergency response, and other matters. Compliance with such laws and regulations increases the costs of exploring, developing, constructing, and operating projects. It is possible that, in the future, the costs, delays and other effects associated with such laws and regulations may impact decisions of the Company with respect to the exploration and development of properties, such as the properties in which the Company has an interest. The Company will be required to expend significant financial and managerial resources to comply with such laws and regulations. Since legal requirements change frequently, are subject to interpretation and may be enforced in varying degrees in practice, the Company is unable to predict the ultimate cost of compliance with these requirements or their effect on operations. Furthermore, future changes in governments, regulations and policies and practices, such as those affecting exploration and development of the Company's properties could materially and adversely affect the results of operations and financial condition of the Company in a particular year or in its long-term business prospects.

**No Assurances**

There is no assurance that economic mineral deposits will ever be discovered, or if discovered, subsequently put into production. Most exploration activities do not result in the discovery of commercially mineable deposits. Mining exploration is highly speculative in nature, involves many risks and frequently is not productive. Most exploration projects do not result in the discovery of commercially mineable ore deposits and no assurance can be given that any anticipated level of recovery of mineral reserves will be realized or that any identified mineral deposit will ever qualify as a commercially mineable (or viable) ore body which can be legally and economically exploited.

**Indigenous Peoples' title claims and rights to consultation and accommodation may affect our existing operations as well as development projects and future acquisitions.**

Governments in many jurisdictions must consult Indigenous Peoples with respect to grants of mineral rights and the issuance or amendment of exploration and project authorizations. Consultation and other rights of Indigenous Peoples may require accommodations, including undertakings regarding financial compensation, employment and other matters in impact and benefit agreements. This may affect the Company's ability to acquire, explore or develop, within a reasonable time frame, mineral titles in these jurisdictions and may affect the timetable and costs of development of mineral properties in these jurisdictions. The risk of unforeseen aboriginal title claims also could affect existing operations as well as exploration and development projects and future acquisitions. These legal requirements may increase the Company's operating costs and affect the Company's ability to expand its operations or to explore and develop new projects.

Nicola Mining Inc. \| Annual Information Form Page 22

**Community Relations and License to Operate**

The Company's relationship with the host communities where it operates is critical to ensure the future success of its existing operations and the construction and development of its projects. There is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Certain non-governmental organizations ("**NGOs** "), some of which oppose globalization and resource development, are often vocal critics of extractive industries and their practices. Adverse publicity generated by such NGOs or others related to extractive industries generally, or the Company's exploration or development activities specifically, could have an adverse effect on the Company's reputation. Reputation loss may result in decreased investor confidence, increased challenges in developing and maintaining community relations and an impediment to the Company's overall ability to advance its projects, which could have a material adverse impact on the Company's results of operations, financial condition and prospects. While the Company is committed to operating in a socially responsible manner, there is no guarantee that the Company's efforts in this respect will mitigate this potential risk.

**Title Risks**

Although the Company has exercised the usual due diligence with respect to determining title to properties in which it has a material interest, there is no guarantee that title to such properties will not be challenged or impugned. The Company's mineral property interests may be subject to prior unregistered agreements or transfers or native land claims and title may be affected by undetected defects. Surveys have not been carried out on any of the Company's mineral properties, therefore, in accordance with the laws of the jurisdiction in which such properties are situated; their existence and area could be in doubt. Until competing interests in the mineral lands have been determined, the Company can give no assurance as to the validity of title of the Company to those lands or the size of such mineral lands.

**Uninsurable Risks**

In the course of exploration, development and production of mineral properties, certain risks, and in particular, unexpected or unusual geological operating conditions including rock bursts, cave-ins, fires, flooding and earthquakes may occur. It is not always possible to fully insure against such risks and the Company may decide not to take out insurance against such risks as a result of high premiums or other reasons. Should such liabilities arise, they could reduce or eliminate any future profitability and result in increasing costs and a decline in the value of the securities of the Company.

**Future Share Issuances May Affect the Market Price of the Common Shares and Results in Significant Dilution**

In order to finance future operations, the Company may raise funds through the issuance of additional Common Shares or the issuance of debt instruments or other securities convertible into Common Shares. The Company cannot predict the size of future issuances of Common Shares or the issuance of debt instruments or other securities convertible into Common Shares or the dilutive effect, if any, that future issuances and sales of the Company's securities will have on the market price of the Common Shares.

**Dilution**

Common Shares, including rights, warrants, special warrants, subscription receipts and other securities to purchase, to convert into or to exchange into Common Shares, may be created, issued, sold and delivered on such terms and conditions and at such times as the Board may determine. In addition, the Company may issue additional Common Shares from time to time pursuant to Common Share purchase warrants and the options to purchase Common Shares issued from time to time by the Board. The issuance of these Common Shares could result in significant dilution to holders of Common Shares.

Nicola Mining Inc. \| Annual Information Form Page 23

**Operational Risks**

The Company will be subject to a number of operational risks and may not be adequately insured for certain risks, including: environmental contamination, liabilities arising from historic operations, accidents or spills, industrial and transportation accidents, which may involve hazardous materials, labor disputes, catastrophic accidents, fires, blockades or other acts of social activism, changes in the regulatory environment, impact of non-compliance with laws and regulations, natural phenomena such as inclement weather conditions, floods, earthquakes, ground movements, cave-ins, and encountering unusual or unexpected geological conditions and technological failure of exploration methods.

There is no assurance that the foregoing risks and hazards will not result in damage to, or destruction of, the property of the Company, personal injury or death, environmental damage or, regarding the exploration or development activities of the Company, increased costs, monetary losses and potential legal liability and adverse governmental action. These factors could all have an adverse impact on the Company's future cash flows, earnings, results of operations and financial condition.

Additionally, the Company may be subject to liability or sustain loss for certain risks and hazards against which the Company cannot insure or which the Company may elect not to insure because of the cost. This lack of insurance coverage could have an adverse impact on the Company's future cash flows, earnings, results of operations and financial condition.

**Environmental Risks**

All phases of the mineral exploration and development business present environmental risks and hazards and are subject to environmental regulations. Compliance with such legislation and regulations can require significant expenditures and a breach could result in the imposition of fines and penalties, some of which may be material. Environmental legislation is evolving in a manner which may lead to stricter standards and enforcement, larger fines and liability and potentially increased capital expenditures and operating costs. No assurance can be given that the application of environmental laws to the business and operations of the Company will not result in a curtailment of exploration or production, material increase in the costs of production, development, or exploration activities, or otherwise adversely affect the Company's financial condition, results of operations or prospects.

**Regulatory and Permitting**

Regulatory and permitting requirements have a significant impact on the Company's operations and can have a material and adverse effect on future cash flow, results of operations and financial condition. To conduct mineral exploration and mining activities, the Company must obtain or renew exploration or mining permits and licenses in accordance with the relevant mining laws and regulations required by governmental authorities having jurisdiction over mineral projects. There is no guarantee that the Company will be granted the necessary permits and licenses, that they will be renewed, or that the Company will be in a-position to comply with all the conditions that are imposed. Mining is subject to potential risks and liabilities associated with pollution and the disposal of waste from mineral exploration and mining operations. Costs related to discovery, evaluation, planning, designing, developing, constructing, operating, closing, and remediating mines and other facilities in compliance with these laws and regulations are significant. In addition to environmental protection, applicable laws and regulations govern employee health and safety. Not complying with these laws and regulations can result in enforcement actions that may include corrective measures requiring capital expenditures, installation of additional equipment, remedial action, and changes to operating procedures resulting in additional costs and temporary or permanent shutdown of operations. The Company may also be required to compensate those parties' suffering loss or damage and may face civil or criminal fines or penalties for violating certain laws or regulations. Changes to these laws and regulations in the future could have an adverse effect on the Company's cash flow, results of operations and financial condition. Further, the issuance of permits may be subject to review by third parties who may challenge future permitting and the validity of existing permits based on, among other things, the government's obligation to consult and accommodate.

Nicola Mining Inc. \| Annual Information Form Page 24

**Volatility of Mineral Prices**

The Company's revenues, if any, are expected to be in large part derived from the extraction and sale of precious and base minerals and metals. Factors beyond the control of the Company may affect the marketability of metals discovered, if any. Metal prices have fluctuated widely, particularly in recent years. Consequently, the economic viability of any of the Company's exploration projects cannot be accurately predicted and may be adversely affected by fluctuations in mineral prices. In addition, currency fluctuations may affect the cash flow which the Company may realize from its operations, since most mineral commodities are sold in a world market in US dollars.

**Infrastructure**

Exploration, development and processing activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important elements of infrastructure, which affect access, capital and operating costs. The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay exploration on the Company's mineral properties. If adequate infrastructure is not available in a timely manner, there can be no assurance that the exploration or development will be commenced or completed on a timely basis on the Company's mineral properties, if at all. Furthermore, unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of necessary infrastructure could adversely affect our operations.

**Global Financial Conditions**

Global financial conditions have from time to time been subject to periods of elevated volatility. Government debt, the risk of sovereign defaults, political instability and wider economic concerns in many countries have been causing significant uncertainties in the markets. Disruptions in the credit and capital markets can have a negative impact on the availability and terms of credit and capital. Uncertainties in these markets could have a material adverse effect on the Company's liquidity, ability to raise capital and cost of capital. High levels of volatility and market turmoil could also adversely impact commodity prices, exchange rates and interest rates and have a detrimental effect on the Company's business.

**Resulting Effects of Broad Economic and Business Conditions**

The Company's operations and financial performance may be adversely affected by broad economic and business conditions, including those driven by shifting global tariff policies, the imposition or escalation of trade barriers, and other geopolitical developments. These factors can disrupt international trade flows, reduce market stability, and limit growth opportunities. Uncertainty surrounding global economic conditions—such as inflationary pressures, currency volatility, and supply chain disruptions—may impact demand for minerals, cost structures, and strategic planning. While the Company seeks to remain adaptable, there can be no assurance that it will be able to mitigate all risks associated with such macroeconomic fluctuations.

**Executive Employee Recruitment and Retention**

The success of the Company will be dependent upon the performance of its management and key employees. The loss of any key executive or manager of the Company may have an adverse effect on the future of the Company's business. The number of persons skilled in acquisition, exploration and development of mining properties is limited and competition for such persons is intense. As the Company's business activity grows, it will require additional key financial and administrative personnel as well as additional operations staff. Recruiting qualified personnel as the Company grows will be critical to its success. As the Company's business activity grows, it will require additional key financial, administrative, engineering, geological and other personnel. If the Company is not successful in attracting and training qualified personnel, the efficiency of its operations could be affected, which could have an adverse impact on future cash flows, earnings, results of operations and the financial condition of the Company. The Company is particularly at risk at this state of its development as it relies on a small management team, the loss of any member of which could cause severe adverse consequences. There is no assurance that it will be successful in attracting, training and retaining qualified personnel as competition for persons with these skill sets increases. If the Company is not successful in attracting, training and retaining qualified personnel, the efficiency of its operations could be impaired, which could have an adverse impact on its future cash flows, earnings, results of operations and financial condition.

Nicola Mining Inc. \| Annual Information Form Page 25

**Adverse General Economic Conditions**

The unprecedented events in global financial markets in the past several years have had a profound impact on the global economy. Many industries, including the mineral exploration sector, were impacted by these market conditions. Some of the key impacts of the financial market turmoil included contraction in credit markets resulting in a widening of credit risk, devaluations, high volatility in global equity, commodity, foreign exchange and precious metal markets, a lack of market liquidity, natural disasters, public health crisis (such as the ongoing dispute between the sovereign state of the Ukraine and Russia) and other events outside of the Company's control. A similar slowdown in the financial markets or other economic conditions, including but not limited to, inflation, fuel and energy costs, lack of available credit, the state of the financial markets, interest rates and tax rates, may adversely affect the Company's operations. Specifically, a global credit/liquidity crisis could impact the cost and availability of financing and our overall liquidity, the volatility of mineral prices would impact the Company's prospects, volatile energy, commodity and consumables prices and currency exchange rates would impact costs and the devaluation and volatility of global stock markets would impact the valuation of its equity and other securities. These factors could have a material adverse effect on the Company's financial condition and results of operations.

In recent years, the securities markets in Canada, as well as in other countries around the world, have experienced a high level of price and volume volatility, and the market prices of securities of many companies have experienced wide fluctuations in price that have not necessarily been related to the operating performance, underlying asset values or prospects of such companies. There can be no assurance that continual fluctuations in price will not occur. It may be anticipated that any quoted market for the Common Shares will be subject to market trends and conditions generally, notwithstanding any potential success of the Company in developing assets, adding additional resources, establishing feasibility of deposits or creating revenues, cash flows or earnings. The value of securities will be affected by market volatility. An active public market for the Common Shares might not develop or be sustained. If an active public market for the Common Shares does not develop or continue, the liquidity of a shareholder's investment may be limited and the price of the Common Shares may decline.

**Legal and Litigation**

All industries, including the mining industry, are subject to legal claims, with and without merit. Defense and settlement costs of legal claims can be substantial, even with respect to claims that have no merit. Due to the inherent uncertainty of the litigation process, the resolution of any particular legal proceeding to which the Company may become subject could have a material adverse effect on the Company's business, prospects, financial condition, and operating results. There are no current claims or litigation outstanding against the Company.

**Insurance**

The Company is also subject to a number of operational risks and may not be adequately insured for certain risks, including: accidents or spills, industrial and transportation accidents, which may involve hazardous materials, labor disputes, catastrophic accidents, fires, blockades or other acts of social activism, changes in the regulatory environment, impact of non-compliance with laws and regulations, natural phenomena such as inclement weather conditions, floods, earthquakes, tornados, thunderstorms, ground movements, cave-ins, and encountering unusual or unexpected geological conditions and technological failure of exploration methods.

Nicola Mining Inc. \| Annual Information Form Page 26

There is no assurance that the foregoing risks and hazards will not result in damage to, or destruction of, the properties of the Company, personal injury or death, environmental damage or, regarding the exploration or development activities of the Company, increased costs, monetary losses and potential legal liability and adverse governmental action, all of which could have an adverse impact on the Company's future cash flows, earnings, results of operations and financial condition. The payment of any such liabilities would reduce the funds available to the Company. If the Company is unable to fully fund the cost of remedying an environmental problem, it might be required to suspend operations or enter into costly interim compliance measures pending completion of a permanent remedy.

**Competition**

All aspects of the Company's business are subject to competition from other parties. Many of the Company's competitors for the acquisition, exploration, production and development of mineral properties, and for capital to finance such activities, will include companies that have greater financial and personnel resources available to them than the Company. Competition could adversely affect the Company's ability to acquire suitable properties or prospects in the future.

The international resource industries are highly competitive. The value of any future reserves discovered and developed by the Company may be limited by competition from other world resource mining companies, or from excess inventories. Existing international trade agreements and policies and any similar future agreements, governmental policies or trade restrictions are beyond the control of the Company and may affect the supply of and demand for minerals, including lithium, around the world.

**Conflicts of Interest**

Certain of the directors and officers of the Company will be engaged in, and will continue to engage in, other business activities on their own behalf and on behalf of other companies and, as a result of these and other activities, such directors and officers of the Company may become subject to conflicts of interest. The BCBCA provides that in the event that a director has a material interest in a contract or proposed contract or agreement that is material to the issuer, the director shall disclose his interest in such contract or agreement and shall refrain from voting on any matter in respect of such contract or agreement, subject to and in accordance with the BCBCA. To the extent that conflicts of interest arise, such conflicts will be resolved in accordance with the provisions of the BCBCA.

**Volatility of the Market Price of the Common Shares**

Securities of junior companies have experienced substantial volatility in the past, often based on factors unrelated to the financial performance or prospects of the companies involved. These factors include macroeconomic developments in North America and globally and market perceptions of the attractiveness of particular industries. The Common Share price is also likely to be significantly affected by delays experienced in progressing with development plans, a decrease in investor appetite for junior stocks, or in adverse changes in the Company's financial condition or results of operations as reflected in the Company's quarterly and annual financial statements. Other factors unrelated to performance that could have an effect on the price of the Common Shares include: (a) the trading volume and general market interest in the Common Shares could affect a shareholder's ability to trade significant numbers of Common Shares; and (b) the size of the public float in the Common Shares may limit the ability of some institutions to invest in the Company's securities.

As a result of any of these or other factors, the market price of the Common Shares at any given point in time might not accurately reflect the Company's long-term value. Securities class action litigation has been brought against companies following years of volatility in the market price of their securities. The Company could in the future be the target of similar litigation. Securities litigation could result in substantial costs and damages and divert management's attention and resources.

Nicola Mining Inc. \| Annual Information Form Page 27

**Dividends**

The Company has never paid cash dividends on its Common Shares, and does not expect to pay any cash dividends in the future in favor of utilizing cash to support the development of our business. Any future determination relating to the Company's dividend policy will be made at the discretion of the Company's board of directors (the "**Board**") and will depend on a number of factors, including future operating results, capital requirements, financial condition and the terms of any credit facility or other financing arrangements the Company may obtain or enter into, future prospects and other factors the Board may deem relevant at the time such payment is considered. As a result, shareholders will have to rely on capital appreciation, if any, to earn a return on their investment in the Common Shares for the foreseeable future.

**Reporting Issuer Status**

As a reporting issuer, the Company is subject to reporting requirements under applicable securities law and stock exchange policies. Compliance with these requirements may increase legal and financial compliance costs, make some activities more difficult, time consuming or costly, and increase demand on existing systems and resources. Among other things, the Company will be required to file annual, quarterly and current reports with respect to its business and results of operations and maintain effective disclosure controls and procedures and internal controls over financial reporting. In order to maintain and, if required, improve disclosure controls and procedures and internal controls over financial reporting to meet this standard, significant resources and management oversight may be required. As a result, management's attention may be diverted from other business concerns, which could harm the Company's business and results of operations.

The Company may need to hire additional employees to comply with these requirements in the future, which would increase its costs and expenses.

Management of the Company expects that being a reporting issuer will make it more expensive to maintain director and officer liability insurance. This factor could also make it more difficult for the Company to retain qualified directors and executive officers.

**Tax Issues**

Income tax consequences in relation to the Common Shares will vary according to the circumstances by each purchaser. Prospective purchasers should seek independent advice from their own tax and legal advisors prior to subscribing for Common Shares.

**DESCRIPTION OF CAPITAL STRUCTURE**

**Common Shares**

The Company's authorized share structure consists of an unlimited number of Common Shares.

As of the date hereof, 183,793,345 Common Shares are issued and outstanding, 9,672,500 Options, each exercisable for one Common Share, 1,000,000 RSUs, each exercisable for one Common Share and 2,175,000 Warrants, each exercisable for one Common Share. See "*Market for Securities – Prior Sales*" for more information.

The holders of Common Shares are entitled to dividends if, as and when declared by the Board. The holders of the Common Shares shall be entitled to vote at all meetings of shareholders of the Company and at all such meetings each such holder has one (1) vote for each Common Share held. Each holder of Common Shares is, upon liquidation, entitled to share equally in such assets of the Company as are distributable to the holders of Common Shares.

In the event of a liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or other distribution of assets or property of the Company amongst its shareholders for the purpose of winding up its affairs, shareholders will be entitled to receive all property and assets of the Company properly distributable to the shareholders.

Nicola Mining Inc. \| Annual Information Form Page 28

There are no pre-emptive rights, no conversion or exchange rights, no redemption, retraction, purchase for cancellation or surrender provisions. There are no sinking or purchase fund provisions, no provisions permitting or restricting the issuance of additional securities or any other material restrictions, and there are no provisions which are capable of requiring a security holder to contribute additional capital.

**Equity Incentive Plan**

The Company adopted its Equity Incentive Plan (the "**Equity Incentive Plan**") on May 12, 2022. The Equity Incentive Plan provides flexibility to the Company to grant equity-based incentive awards in the form of Options, RSUs, PSUs and DSUs. The purpose of the Equity Incentive Plan is to promote the long-term success of the Company and the creation of shareholder value by: (i) encouraging the attraction and retention of eligible persons; (ii) encouraging such eligible persons to focus on critical long-term objectives; and (iii) promoting greater alignment of the interests of such eligible persons with the interests of the Company.

The Equity Incentive Plan is a rolling plan for Options and a fixed plan for Performance-Based Awards such that the aggregate number of Common Shares that: (i) may be issued upon the exercise or settlement of Options granted under the Equity Incentive Plan (and all of the Company's other security-based compensation arrangements), shall not exceed 10% of the Company's issued and outstanding Common Shares from time to time; and (ii) may be issued in respect of Performance-Based Awards granted under the Equity Incentive Plan (and all of the Company's other security-based compensation arrangements) shall not exceed 14,587,604. Options which have been exercised, cancelled, terminated, surrendered, forfeited or expired without being exercised shall be available for subsequent grants under the Equity Incentive Plan and the number of awards available to grant increases as the number of issued and outstanding Common Shares increases. Performance-Based Awards which have been settled in cash, cancelled, terminated, surrendered, forfeited or expired without being settled shall be available for subsequent grants, but Performance-Based Awards which are settled in securities will reduce the number of Common Shares reserved for issuance under the fixed 10% portion of the Equity Incentive Plan.

As of September 18, 2025, the Company had granted 9,672,500 Options, 1,000,000 RSUs, nil PSUs and nil DSUs outstanding.

**MARKET FOR SECURITIES**

**Trading Price and Volume of Common Shares**

The Common Shares have been listed and posted for trading on the TSXV under the symbol "NIM" since June 1, 2015. The following table sets forth the price range (high and low prices) in Canadian dollars of the Common Shares and volume traded on the TSXV, for the periods indicated.

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| | | | |
|:---|:---|:---|:---|
|  | **High ($)** | **Low ($)** | **Volume** |
| August 2025 | $0.84 | $0.71 | 4015057 |
| July 2025 | 0.79 | 0.495 | 2735823 |
| June 2025 | 0.53 | 0.405 | 3322872 |
| May 2025 | 0.43 | 0.355 | 1445701 |
| April 2025 | 0.40 | 0.32 | 1755175 |
| March 2025 | 0.395 | 0.285 | 1222109 |
| February 2025 | 0.36 | 0.28 | 852616 |
| January 2025 | 0.32 | 0.275 | 421420 |
| December 2024 | 0.35 | 0.24 | 801226 |
| November 2024 | 0.31 | 0.23 | 654272 |
| October 2024 | 0.335 | 0.27 | 986256 |
| September 2024 | 0.365 | 0.31 | 705762 |
| August 2024 | 0.365 | 0.275 | 627105 |

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Nicola Mining Inc. \| Annual Information Form Page 29

**Prior Sales**

The following table summarizes the issuances of unlisted securities during the year ended December 31, 2024:

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| | | |
|:---|:---|:---|
| **Date of Issuance** | **Number of Common Shares<br> Issued/Issuable or <br> Aggregate Amount** | **Exercise Price per Security<br> ($)** |
| December 18, 2024 Options<sup>(1)</sup> | 500000 | $0.30 |
| December 18, 2024 Restricted Share Units<sup>(2)</sup> | 1000000 | N/A |
| April 18, 2024 Options<sup>(2)</sup> | 3000000 | $0.265 |

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<sup>(1)</sup> These Options are exercisable at a price of $0.18 per Common Share until December 18, 2029 and vest immediately.

<sup></sup>

<sup>(2)</sup> These RSUs vest on December 31, 2025.

<sup></sup>

<sup>(3)</sup> These Options are exercisable at a price of $0.265 per Common Share until April 18, 2029 and vest immediately.

**ESCROWED SECURITIES**

As at the date hereof, there are no securities held in escrow.

**DIVIDENDS AND DISTRIBUTIONS**

The Company has not declared or paid a dividend for the three most recently completed financial years: 2022, 2023 and 2024. Other than the requirements of the BCBCA, there are no restrictions on the Company that would prevent it from paying a dividend. However, as of the Effective Date, the Board intends to retain any future earnings (when available) for reinvestment in the Company's business, and therefore, it has no current intention to declare or pay dividends on the Common Shares in the foreseeable future. Any future determination to pay dividends on the Common Shares will be at the sole discretion of the Board after considering a variety of factors and conditions existing from time to time including its earnings, financial condition and other relevant factors.

**DIRECTORS AND OFFICERS**

As at the date hereof, the Board is comprised of five individuals. The following table sets forth the names and municipalities of residence of the current directors and executive officers of the Company, their respective positions and offices with the Company and the date first appointed or elected as a director and/or officer and their principal occupation(s) within the past five years.

Nicola Mining Inc. \| Annual Information Form Page 30

**Name, Occupation and Security Holding**

---

| | | |
|:---|:---|:---|
| **Name**<br>**and Municipality**<br>**of Residence** | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Position Held**<br>&nbsp;&nbsp;&nbsp;&nbsp;**and Date Appointed** | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Principal Occupation within the past five years** |
| **Peter Espig<sup>(1)(3)</sup>** <br> *Vancouver, British Columbia, Canada* | President and Chief Executive Officer (November 7, 2013) and Director (May 2, 2011) | Mr. Espig has been the President and CEO of the Company since November 7, 2013. The former Goldman Sachs banker and Olympus Capital Partners executive founded TriAsia Capital, a private equity and consulting firm focused on raising capital for mid-sized companies and pre-initial public offering investment in 2006. Mr. Espig is a founding director of Phosplatin Therapeutics, a private biopharmaceutical company, and has been a board member of that company since November 2010. He has been involved in several public and private companies, as well as charitable organizations. He is currently a director of First Lithium Minerals Corp., a mineral exploration and development company listed on the TSXV. He is also a director ESGold Corp., a mineral exploration and development company listed on the CSE. Mr. Espig is a pioneer of SPACs, having completed two transactions with a combined value of greater than US$1.0 BN. He received his MBA from Columbia Business School, where he was a Chazen International Scholar. |
| **Sam Wong** <br> *Vancouver, British Columbia, Canada* | Chief Financial Officer (March 19, 2024) | Mr. Wong is a Certified Public Accountant with more than 19 years of international experience in the mining and resource sector. He has held senior executive positions in publicly traded mining companies. Mr. Wong's expertise includes financial reporting, corporate risk management, corporate strategy and planning, and investment evaluation. Mr. Wong began his career at Deloitte LLP in Vancouver, where he provided assurance and tax services |
| **William Cawker** <br> *West Vancouver, British Columbia, Canda* | Secretary (March 19, 2024) | Mr. Cawker is an experience inhouse specialist that works with primarily assist small cap / microcap companies. Mr. Cawker specialized in publicly listed companies in the fields of technology and natural resources for over three decades. Mr. Cawker has worked at leading Canadian financial institutions and been active with numerous public companies |
| **Frank Högel**<sup>(1)(2)(3)</sup> Baden-Württemberg Germany | Director (November 21, 2014 | Mr. Högel is an asset manager actively involved in the financial evaluation of companies and convertible debenture structuring. He has also served as President and Chief Executive Officer of Peter Beck Performance Funds and Peter Beck and Partner Asset Management Company Limited since 2002. He is also currently involved in other stock exchange listed companies as set out in the Section "Corporate Governance". |
| **Paul Johnston**<sup>(3)</sup> <br> *Delta, British Columbia, Canada* | Director (May 13, 2016) | Dr. Johnston is a geologist with more than 25 years of experience in the mining industry and has accumulated extensive international experience in early to advanced stage exploration for gold, copper, and zinc. Dr. Johnston began his career in the late 1980s as a mine geologist before joining Teck Resources, where he worked in a variety of international positions. He holds a PhD from Queen's University and is a member of the Association of Professional Engineers and Geoscientists of British Columbia. |
| **Malcolm Swallow**<sup>(1)(2)</sup> <br> *Langley, British Columbia, Canada* | Director (October 5, 2021) | Mr. Swallow qualified as a Mining Engineer in 1971 from the Royal School of Mines and has been a Fellow of the Institute of Mining and Metallurgy, a Chartered Engineer, a European Engineer and a Professional Engineer in BC from 1994 until his retirement from professional practice in 2020. He has consulted on both open pit and underground mining and specialized over the latter half of his career in mine development and project management on a number of significant projects. Mr. Swallow was a director of NorZinc Ltd., a junior mining company listed on the Toronto Stock Exchange (the "**TSX**"), the Frankfurt Stock Exchange and the Over- The-Counter Bulletin Board, from 2016 to 2020 and a director of Silvercorp Metals Inc., a mining company listed on the TSX and American Stock Exchange, from 2013 to 2017. |
| **Brent Omland**<sup>(2)</sup><br> *Wilton, Connecticut, *USA* | Director (January 30, 2023) | Mr. Omland has been the Chief Executive Officer and as a Director of Ocean Partners Holdings since 2013. In 2023, Mr. Omland was appointed to the role of co-CEO of Ocean Partners Holdings. Before joining Ocean Partners Holdings, Mr. Omland was the Chief Financial Officer for Ivernia Inc. and Enirgi Metals Group, companies focused on lead mining and secondary lead smelting in Australia. Mr. Omland also worked in finance roles for Teck Cominco. Mr. Omland is a graduate of the University of British Columbia (Commerce) and a Canadian Chartered Accountant with 20 years of experience in the mining, metals, and trading business. He also serves on the boards of Galantas Gold Corporation and Cygnus Metals Limited, both junior mining companies listed on the Exchange. He is also a director of DynaResource Inc., a mining company listed on the OTC market in the United States and Canadian Copper Inc., a mining company listed on the CSE. |

---

Nicola Mining Inc. \| Annual Information Form Page 31

<sup>(1)</sup> Member of the audit committee (the "**Audit Committee**") of the Company.

 

<sup>(2)</sup> Member of the compensation committee (the "**Compensation Committee**") of the Company.

 

<sup>(3)</sup> Member of the corporate governance committee (the "**Corporate Governance Committee**") of the Company.

As at the date hereof, the directors and senior officers of Nicola, as a group, beneficially own or control, directly or indirectly, 49,262,001 Common Shares or 23.78 % of the issued and outstanding Common Shares, as well as 6,325,000 Options and 813,953 RSUs.

The directors listed above will hold office until the next annual meeting of the Company or until their successors are elected or appointed.

**Corporate Cease Trade Orders, Bankruptcies, Penalties or Sanctions**

Other than disclosed below, to the knowledge of management, no director or executive officer as at the date hereof, is or was within 10 years before the date hereof, a director, chief executive officer or chief financial officer of any company (including Nicola), that (a) was subject to an order that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer, or (b) was subject to an order that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer. For the purposes hereof, "order" means (a) a cease trade order, (b) an order similar to a cease trade order, or (c) an order that denied the relevant company access to any exemption under securities legislation that was in effect for a period of more than 30 consecutive days.

To the knowledge of management, other than as disclosed herein, no director or executive officer of Nicola, or a shareholder holding a sufficient number of securities of Nicola to affect materially the control of the company (a) is, as at the date hereof, or has been within the 10 years before the date hereof, a director or executive officer of any company (including Nicola) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets, or (b) has, within the 10 years before the date hereof, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder.

Mr. Högel was a director of Oremex Silver Inc. ("**Oremex**") (now called Monarca Minerals Inc.) when cease trade orders were issued by the British Columbia Securities Commission on April 1, 2014 and June 3, 2014, and the Alberta Securities Commission on September 2, 2014, as a result of the failure of Oremex to file financial statements for the year ended November 30, 2013, interim financial statements for the period ended February 28, 2014 and a Form 51-102F1 – *Management's Discussion and Analysis* for the periods ended November 30, 2013 and February 28, 2014. The cease trade orders were lifted on February 9, 2016. Mr. Högel is still a director of Oremex.

Nicola Mining Inc. \| Annual Information Form Page 32

On July 26, 2013, the Company, after careful consideration of all available alternatives, sought creditor protection under the *Companies' Creditors Arrangement Act* (Canada) (the "**CCAA**") and obtained a stay order (the "**Initial Order**") from the Supreme Court of British Columbia (the "**Court**") (the "**CCAA Proceedings**"). The Company sought the protection because it was hampered by the equity markets, debt repayments, commodity prices and operational challenges. The CCAA Proceedings applied to the Company and its wholly-owned subsidiaries, Huldra, Huldra Holdings Inc. and 0913103 B.C. Ltd. (collectively, the "**Applicants**"). Grant Thornton LLP (the "**Monitor**") had been appointed by the Court as monitor in the proceedings and was responsible for reviewing the Company's ongoing operations, liaising with creditors and other stakeholders and reporting to the Court.

The Initial Order provided for a stay of proceedings against the Applicants and their property for an initial period ending August 26, 2013, which the Court extended to November 24, 2014.

The Company implemented the restructuring of its debts and obligations under the Company's Plan of Compromise and Arrangement dated August 8, 2014 (the "**Plan**"). The Plan was prepared by the Company in connection with the CCAA Proceedings under the CCAA and was approved by the creditors of the Company on September 23, 2014 and sanctioned by the Court on October 10, 2014. The Monitor filed the certificate of Plan implementation with the Court on November 21, 2014. On December 9, 2015, the Company successfully fulfilled its obligations pursuant to the CCAA Proceedings.

To the best of management's knowledge, no director, or proposed director of the Company has, within the ten (10) years before the date of this Information Circular, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the proposed director.

**Penalties or Sanctions**

No director, executive officer or shareholder holding a sufficient number of securities of Nicola to materially affect the control of the Company has been subject to: (i) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or (ii) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

**Conflicts of Interest**

There are potential conflicts of interest to which the directors and officers of Nicola will be subject to in connection with the operations of Nicola. In particular, certain of the directors and officers of Nicola are involved in managerial or director positions with other companies whose operations may, from time to time, be in direct competition with those of Nicola or with entities which may, from time to time, provide financing to, or make equity investments in, competitors of Nicola.

In accordance with the applicable corporate and securities legislation, directors who have a material interest or any person who is a party to a material contract or a proposed material contract with Nicola are required, subject to certain exceptions, to disclose that interest and generally abstain from voting on any resolution to approve the contract. In addition, the directors are required to act honestly and in good faith with a view to the best interests of Nicola. Certain of the directors and each of the executive officers of Nicola have either other employment or other business or time restrictions placed on them and accordingly, these directors of Nicola will only be able to devote part of their time to the affairs of Nicola. To the extent that conflicts of interest arise, such conflicts will be resolved in accordance with the provisions of the applicable corporate law.

Nicola Mining Inc. \| Annual Information Form Page 33

**AUDIT COMMITTEE**

**Audit Committee Charter**

The full text of the Company's Audit Committee Charter is included as Schedule A to the AIF.

**Audit Committee Composition**

The following are the members of the Audit Committee as at the date hereof:

**Audit Committee Members**

Peter Espig Non Independent<sup>(1)</sup> Financially Literate<sup>(2)</sup> <br> Frank Högel Independent<sup>(1)</sup> Financially Literate<sup>(2)</sup> <br> Malcolm Swallow Independent<sup>(1)</sup> Financially Literate<sup>(2)</sup>

<sup>(1)</sup> A member of an audit committee is independent if the member has no direct or indirect material relationship with the Company, which could, in the view of the Board, reasonably interfere with the exercise of a member's independent judgment. Under NI 52-110, an individual who is, or has been within the last three years, an employee or executive officer of the issuer, is considered to have a material relationship with the issuer.

 

<sup>(2)</sup> An individual is financially literate if he has the ability to read and understand a set of financial statements that present a breadth of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Company's financial statements.

**Relevant Education and Experience**

**Peter Espig**

Mr. Espig has been the President and CEO of the Company since November 7, 2013. The former Goldman Sachs banker and Olympus Capital Partners executive founded TriAsia Capital, a private equity and consulting firm focused on raising capital for mid-sized companies and pre-initial public offering investment in 2006. Mr. Espig is a founding director of Phosplatin Therapeutics, a private biopharmaceutical company, and has been a board member since November 2010. He has been involved in several public and private companies, as well as charitable organizations. He is a director of First Lithium Minerals Corp.., a junior mining company listed on the Exchange. Mr. Espig is a pioneer of SPACs, having completed two mega transactions with a combined value of greater than US$1.0 BN. He received his MBA from Columbia Business School, where he was a Chazen International Scholar.

**Frank Högel**

Mr. Högel is an asset manager actively involved in the financial evaluation of companies and convertible debenture structuring. He has also served as President and CEO of Peter Beck Performance Funds and Peter Beck and Partner Asset Management Company Limited since 2002. His background includes more than 14 years of direct experience in the mining industry and expertise as an international financier / investor. Mr. Högel holds a degree in Economics and International Business and Management from the University of Nürtingen in Germany.

**Malcolm Swallow**

Mr. Swallow qualified as a Mining Engineer in 1971 from the Royal School of Mines and has been a Fellow of the Institute of Mining and Metallurgy, a Chartered Engineer, a European Engineer and a Professional Engineer in BC from 1994 until his retirement from professional practice in 2020. He has consulted on both open pit and underground mining and specialised over the latter half of his career in mine development and project management on a number of significant projects. Mr. Swallow was a director of NorZinc Ltd., a junior mining company listed on the TSX, the Frankfurt Stock Exchange and the Over-The-Counter Bulletin Board, from 2016 to 2020 and a director of Silvercorp Metals Inc., mining company listed on the TSX and American Stock Exchange, from 2013 to 2017.

Nicola Mining Inc. \| Annual Information Form Page 34

Each member of the Audit Committee has:

&nbsp;&nbsp;&nbsp;&nbsp;· an understanding of the accounting
 principles used by the Company to prepare its financial statements, and the ability to assess the general application of those principles
 in connection with estimates, accruals and reserves;

· experience with analyzing or evaluating
 financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth
 and complexity of issues that can reasonably be expected to be raised by the Company's financial statements, or experience
 actively supervising individuals engaged in such activities; and

· an understanding of internal controls
 and procedures for financial reporting.

**Audit Committee Oversight**

At no time since the commencement of the Company's financial year ended December 31, 2023, was a recommendation of the Committee to nominate or compensate an external auditor not adopted by the Board.

**Reliance on Certain Exemptions**

At no time since the commencement of the Company's financial year ended December 31, 2023 has the Company relied on the exemptions contained in Sections 2.4, 6.1.1(4), 6.1.1(5) or Part 8 of NI 52-110. Section 2.4 (*De Minimis Non-audit Services*) provides an exemption from the requirement that the Audit Committee must pre-approve all non-audit services to be provided by the auditor, where the total amount of fees related to the non-audit services are not expected to exceed 5% of the total fees payable to the auditor in the financial year in which the non-audit services were provided. Sections 6.1.1(4) (*Circumstance Affecting the Business or Operations of the Venture Issuer*), 6.1.1(5) (*Events Outside Control of Member*) and 6.1.1(6) (*Death, Incapacity or Resignation*) provide exemptions from the requirement that a majority of the members of the Company's Audit Committee must not be executive officers, employees or control persons of the Company or of an affiliate of the Company. Part 8 (*Exemptions*) permits a company to apply to a securities regulatory authority or regulator for an exemption from the requirements of NI 52-110 in whole or in part.

**Pre-Approval Policies and Procedures**

The Audit Committee is authorized by the Board to review the performance of the Company's external auditors and approve in advance provision of services other than auditing and to consider the independence of the external auditors, including reviewing the range of services provided in the context of all consulting services bought by the Company. The Audit Committee is authorized to approve any non-audit services or additional work which the Chairman of the Audit Committee deems as necessary who will notify the other members of the Audit Committee of such non-audit or additional work.

Nicola Mining Inc. \| Annual Information Form Page 35

**External Auditor Service Fees**

The aggregate fees billed by the Company's external auditors in each of the last two fiscal years for audit fees are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Financial Year Ending** | **Audit Fees** **<sup>(1)</sup>**<br>**($)** | **Audit Related Fees** **<sup>(2)</sup>**<br>**($)** | **Tax Fees** **<sup>(3)</sup>**<br>**($)** | **All Other Fees** **<sup>(4)</sup>**<br>**($)** |
| 2024<sup>(5)</sup> | $70000 | Nil | Nil | Nil |
| 2023<sup>(6)</sup> | $60000 | $732 | $14600 | Nil |

---

<sup>(1)</sup> "**Audit Fees**" include fees necessary to perform the annual audit and quarterly reviews of our financial statements. Audit Fees include fees for review of tax provisions and for accounting consultations on matters reflected in the financial statements. Audit Fees also include audit or other attest services required by legislation or regulation, such as comfort letters, consents, reviews of securities filings and statutory audits.

<sup>(2)</sup> "**Audit-Related Fees**" for assurance and related services that are reasonably related to the performance of the audit or review of the Company's financial statements and are not reported as audit fees. The services provided in this category include due diligence assistance, accounting consultations on proposed transactions, and consultation on International Financial Reporting Standards conversion.

<sup>(3)</sup> "**Tax Fees**" include fees for all tax services other than those included in "Audit Fees" and "Audit-Related Fees". This category includes fees for tax compliance, tax planning and tax advice.

<sup>(4)</sup> "**All Other Fees**" includes all fees other than those reported as Audit Fees, Audit-Related Fees or Tax Fees.

<sup>(5)</sup> Fees charged by Crowe MacKay LLP.

<sup>(6)</sup> Fees charged by Davidson & Company LLP.

**LEGAL PROCEEDINGS AND REGULATORY ACTIONS**

Nicola is not, and has not been at any time within the most recently completed financial year, a party to any legal proceedings, nor is or was Nicola property the subject of any legal proceedings, known or contemplated, that involves a claim for damages exclusive of interest and costs that met or exceeded 10% of the Company's current assets.

Further, there have not been any (a) penalties or sanctions imposed against the Company by a court relating to securities legislation or by a securities regulatory authority during the year ended December 31, 2024, (b) any other penalties or sanctions imposed by a court or regulatory body against the Company that would likely be considered important to a reasonable investor in making an investment decision, or (c) settlement agreements entered into by the Company before a court relating to securities legislation or with a securities regulatory authority during the year ended December 31, 2024.

**INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS**

Other than as set forth herein, or as previously disclosed, the Company is not aware of any material interests, direct or indirect, by way of beneficial ownership of securities or otherwise, of any director or executive officer or any shareholder holding more than 10% of the Common Shares or any associate or affiliate of any of the foregoing in any transaction within the three most recently completed financial years or during the current financial year or any proposed or ongoing transaction of the Company which has or will materially affect the Company.

**CORPORATE GOVERNANCE**

Pursuant to NI 58-101, the Company is required to disclose its corporate governance practices as follows:

**General**

NI 58-101, as adopted by the Canadian Securities Administrators, prescribes certain disclosure by the Company of its corporate governance practices. This disclosure is presented below.

Nicola Mining Inc. \| Annual Information Form Page 36

**Board of Directors**

The Board facilitates its exercise of independent supervision over the Company's management through meetings of the Board and through consultation with the Corporate Governance Committee. The Corporate Governance Committee's primary responsibilities include reviewing the skills, areas of expertise, backgrounds, independence, and qualifications of the members of the Board, reviewing the size and composition of the Board to ensure there remain an appropriate number of "unrelated" and "independent" directors, recommending to the Board structures and procedures to enable the Board to function independently of management, overseeing the development and implementation of any structures and procedures approved by the Board, and reviewing the relationship of the Board with management and recommending, where appropriate, limits on management's authority to act without the express approval of the Board.

Mr. Espig, the Company's President and CEO, is not considered to be independent as he is an officer of the Company. Messrs. Högel, Johnston, Swallow and Omland are considered to be independent in that they are independent and free from any interest and any business or other relationship which could or could reasonably be perceived to materially interfere with the respective director's ability to act with the best interests of the Company, other than the interests and relationships arising from being shareholders of the Company.

**Directorships**

The following table sets out information regarding other directorships presently held by directors of the Company with other reporting issuers (or the equivalent) in Canada or any foreign jurisdiction:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Name of Director** | **Name of Other Reporting Issuers** | **Securities Exchange** |
| Peter Espig | First Lithium Minerals Corp. | TSXV |
|  | ESGold Corp. | CSE |
| Frank Högel | Avrupa Minerals Ltd. | TSXV |
|  | Canamex Gold Corp. | CSE |
|  | Monarca Minerals Inc. | TSXV |
|  | Lake Victoria Gold Ltd. | TSXV |
|  | Golden Goliath Resources Ltd. | TSXV |
| Brent Omland | Cygnus Metals Limited | TSXV |
|  | Galantas Gold Corporation | TSXV |
|  | DynaResource, Inc. | OTC Market |
|  | Canadian Copper Inc. | CSE |

---

**Orientation and Continuing Education**

The Board briefs all new directors with respect to the policies of the Board and other relevant corporate and business information. The Corporate Governance Committee oversees the development and implementation of orientation programs for new directors and continuing education for all directors.

**Ethical Business Conduct**

The Board has not adopted a written ethical business code of conduct for directors, officers and employees. However, the Board believes that the fiduciary duties placed on individual directors by the Company's governing corporate legislation and the common law, and the restrictions placed by applicable corporate legislation on an individual director's participation in decisions of the Board in which the director has an interest, have been sufficient to ensure that the Board operates independently of management and in the best interests of the Company.

Nicola Mining Inc. \| Annual Information Form Page 37

**Nomination of Directors**

The Board develops appropriate criteria for selection and nomination of new directors in consultation with the Corporate Governance Committee. The Corporate Governance Committee periodically reviews the criteria adopted by the Board and recommends changes to such criteria if deemed necessary or desirable.

The Corporate Governance Committee identifies and recommends qualified candidates to the Board who meet the selection criteria approved by the Board, and recommends the slate of nominees for election by shareholders at the Company's annual shareholder meeting. The Corporate Governance Committee has the sole authority to retain and terminate any search firm to be used to identify director candidates or to otherwise assist the Corporate Governance Committee in the discharge of its responsibilities, including the sole authority to approve the search firm's fees and other retention terms.

**Compensation**

On February 14, 2023, the Board established the Compensation Committee and adopted a compensation committee charter (the "**Compensation Committee Charter**"). The full text of the Company's Compensation Committee Charter is included as Schedule B to the AIF.

The role of the Compensation Committee is to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review and recommend to the Board (the appropriate compensation level for the Company's executive
officers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) oversee the Company's compensation and benefit plans, policies and practices, including its executive
compensation plans and incentive-compensation and equity-based plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) monitor and evaluate, at the Committee's sole discretion, matters relating to the compensation and
benefits structure of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) take such other actions within the scope of the Compensation Committee Charter as the Board may assign
to the Compensation Committee from time to time or as the Compensation Committee deems necessary or appropriate.

**Other Board Committees**

On February 14, 2023, the Board established a corporate governance committee (the "**Corporate Governance Committee**") and adopted a corporate governance charter (the "**Corporate Governance Charter**"). The full text of the Company's Corporate Governance Charter is included as Schedule C to the AIF.

The Corporate Governance Committee consists of Peter Espig, Frank Högel and Paul Johnson (Chair). The role of the Corporate Governance Committee is to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) advise and make recommendations to the Board in its oversight role with respect to: (i) the
 development of the Company's corporate governance policies, principles, practices and processes; (ii) the effectiveness of the
 Board and its committees; (iii) the contributions of individual directors; (iv) the identification
of individuals qualified to become board members; and (v) the selection of director nominees for election by the shareholders; and

Nicola Mining Inc. \| Annual Information Form Page 38

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) take such other actions within the scope of the Corporate Governance Charter as the Board may assign to
the Corporate Governance Committee from time to time or as the Corporate Governance Committee deems necessary or appropriate.

The Board has no committees other than the Audit Committee, the Compensation Committee and the Corporate Governance Committee.

**Assessments**

The Board regularly monitors the adequacy and effectiveness of information given to directors, communications between the Board and management, and the strategic direction and processes of the Board and its committees.

**AUDITOR, TRANSFER AGENT AND REGISTRAR**

The auditors of the Company are Crowe MacKay LLP, Chartered Professional Accountants, located at 1100 – 1177 West Hastings Street, Vancouver, British Columbia, V6E 4T5.

The transfer agent and registrar for the Common Shares is Computershare Investor Services Inc., located at 510 Burrard Street, 3<sup>rd</sup> Floor, Street, Vancouver, British Columbia, V6C 3B9.

**MATERIAL CONTRACTS**

Except for contracts entered into in the ordinary course of business, the only contracts which have been entered into by the Company as of the date hereof, and which are regarded presently as material are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The offtake and financing agreement dated April 6, 2021 with
Ocean Partners UK. For more details, see "*Description of the Business of the Company – Economic Dependence* ";
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Equity Incentive Plan adopted by the Board on May 12, 2022.

**INTERESTS OF EXPERTS**

There is no person or company whose profession or business gives authority to a statement made by such person or company and who is named as having prepared or certified a statement, report or valuation described or included in a filing, or referred to in a filing, made under NI 51-102 by the Company during, or related to, the Company's most recently completed financial year other than Crowe MacKay LLP, the Company's auditors.

Crowe MacKay LLP are the auditors of the Company and have confirmed that they are independent with respect to the Company within the meaning of the relevant rules and related interpretations prescribed by the relevant bodies in Canada and any applicable legislation or regulations.

**ADDITIONAL INFORMATION**

Additional information relating to the Company may be found on SEDAR+ at www.SEDARplus.ca.

Additional information, including directors' and officers' remuneration and indebtedness, principal holders of Nicola's securities and securities authorized for issuance under equity compensation plans, where applicable, will be contained in Nicola's information circular for the next annual meeting of shareholders that involves the election of directors and additional information as provided in Nicola's comparative financial statements for its most recently completed financial year. Nicola will provide this information to any person, upon request made to the CFO of Nicola at 3329 Aberdeen Road, Lower Nicola, British Columbia, V0K 1Y0. The documents will also be located on SEDAR+ at www.SEDARplus.ca.

Additional financial information is provided in the Company's comparative financial statements and management's discussion and analysis for the period ended December 31, 2024, which are also available on SEDAR+.

Nicola Mining Inc. \| Annual Information Form Page 39

**SCHEDULE A**

**AUDIT COMMITTEE CHARTER**

**NICOLA MINING INC.**

(the "**Company**")

**AUDIT COMMITTEE CHARTER**

*Mandate*

The primary function of the audit committee (the "**Committee**") is to assist the Company's Board of Directors in fulfilling its financial oversight responsibilities by reviewing the financial reports and other financial information provided by the Company to regulatory authorities and shareholders, the Company's systems of internal controls regarding finance and accounting and the Company's auditing, accounting and financial reporting processes. Consistent with this function, the Committee will encourage continuous improvement of, and should foster adherence to, the Company's policies, procedures and practices at all levels. The Committee's primary duties and responsibilities are to:

&nbsp;&nbsp;&nbsp;&nbsp;· serve
 as an independent and objective party to monitor the Company's financial reporting and internal control system and review the
 Company's financial statements;

· review
 and appraise the performance of the Company's external auditors; and

· provide
 an open avenue of communication among the Company's auditors, financial and senior management and the Board of Directors.

*Composition*

The Committee shall be comprised of a minimum of three directors as determined by the Board of Directors. If the Company ceases to be a "venture issuer" (as that term is defined in NI 52-110), then all of the members of the Committee shall be free from any relationship that, in the opinion of the Board of Directors, would interfere with the exercise of his or her independent judgment as a member of the Committee.

If the Company ceases to be a "venture issuer" (as that term is defined in NI 52-110), then all members of the Committee shall have accounting or related financial management expertise. All members of the Committee that are not financially literate will work towards becoming financially literate to obtain a working familiarity with basic finance and accounting practices. For the purposes of the Company's Audit Committee Charter, the definition of "financially literate" is the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can presumably be expected to be raised by the Company's financial statements.

The members of the Committee shall be elected by the Board of Directors at its first meeting following the annual shareholders' meeting. Unless a Chair is elected by the full Board of Directors, the members of the Committee may designate a Chair by a majority vote of the full Committee membership.

*Meetings*

The Committee shall meet at least twice annually, or more frequently as circumstances dictate. As part of its job to foster open communication, the Committee will meet at least annually with the Chief Financial Officer and the external auditors in separate sessions.

*Responsibilities and Duties*

To fulfill its responsibilities and duties, the Committee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Documents/Reports Review

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review and update this Audit Committee Charter annually; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) review the Company's financial statements, MD&A and
any annual and interim earnings press releases before the Company publicly discloses this information and any reports or other financial
information (including quarterly financial statements), which are submitted to any governmental body, or to the public, including any
certification, report, opinion, or review rendered by the external auditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. External Auditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review annually, the performance of the external auditors who
shall be ultimately accountable to the Company's Board of Directors and the Committee as representatives of the shareholders of
the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obtain annually, a formal written statement of external auditors
setting forth all relationships between the external auditors and the Company, consistent with Independence Standards Board Standard
1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) review and discuss with the external auditors any disclosed
relationships or services that may impact the objectivity and independence of the external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) take, or recommend that the Company's full Board of Directors
take appropriate action to oversee the independence of the external auditors, including the resolution of disagreements between management
and the external auditor regarding financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) recommend to the Company's Board of Directors the selection
and, where applicable, the replacement of the external auditors nominated annually for shareholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) recommend to the Company's Board of Directors the compensation
to be paid to the external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) at each meeting, consult with the external auditors, without
the presence of management, about the quality of the Company's accounting principles, internal controls and the completeness and
accuracy of the Company's financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) review and approve the Company's hiring policies regarding
partners, employees and former partners and employees of the present and former external auditors of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) review with management and the external auditors the audit plan
for the year-end financial statements and intended template for such statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) review and pre-approve all audit and audit-related services
and the fees and other compensation related thereto, and any non-audit services, provided by the Company's external auditors. The
pre-approval requirement is waived with respect to the provision of non-audit services if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate amount of all such non-audit services provided
to the Company constitutes not more than five percent of the total amount of revenues paid by the Company to its external auditors during
the fiscal year in which the non-audit services are provided,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such services were not recognized by the Company at the time
of the engagement to be non-audit services, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such services are promptly brought to the attention of the Committee
by the Company and approved prior to the completion of the audit by the Committee or by one or more members of the Committee who are
members of the Board of Directors to whom authority to grant such approvals has been delegated by the Committee.

Provided the pre-approval of the non-audit services is presented to the Committee's first scheduled meeting following such approval such authority may be delegated by the Committee to one or more independent members of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Financial Reporting Processes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in consultation with the external auditors, review with management
the integrity of the Company's financial reporting process, both internal and external;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consider the external auditors' judgments about the quality
and appropriateness of the Company's accounting principles as applied in its financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consider and approve, if appropriate, changes to the Company's
auditing and accounting principles and practices as suggested by the external auditors and management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) review significant judgments made by management in the preparation
of the financial statements and the view of the external auditors as to appropriateness of such judgments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) following completion of the annual audit, review separately
with management and the external auditors any significant difficulties encountered during the course of the audit, including any restrictions
on the scope of work or access to required information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) review any significant disagreement among management and the
external auditors in connection with the preparation of the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) review with the external auditors and management the extent
to which changes and improvements in financial or accounting practices have been implemented;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) review any complaints or concerns about any questionable accounting,
internal accounting controls or auditing matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) review the certification process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) establish a procedure for the receipt, retention and treatment
of complaints received by the Company regarding accounting, internal accounting controls or auditing matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) establish a procedure for the confidential, anonymous submission
by employees of the Company of concerns regarding questionable accounting or auditing matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Other

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review any related-party transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) engage independent counsel and other advisors as it determines
necessary to carry out its duties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to set and pay compensation for any independent counsel and
other advisors employed by the Committee.

**SCHEDULE B**

**COMPENSATION COMMITTEE CHARTER**

**NICOLA MINING INC.**

(the "**Company**")

**COMPENSATION COMMITTEE CHARTER**

(Adopted as of July 7, 2023)

**1.** **PURPOSE OF THE COMPENSATION COMMITTEE** 

The Compensation Committee (the "**Committee**") is a standing committee of the Board of Directors (the "**Board**") of the Company. The role of the Committee is to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review and recommend to the Board the appropriate compensation
level for the Company's executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) oversee the Company's compensation and benefit plans,
policies and practices, including its executive compensation plans and incentive-compensation and equity-based plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) monitor and evaluate, at the Committee's sole discretion,
matters relating to the compensation and benefits structure of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) take such other actions within the scope of this Charter as
the Board may assign to the Committee from time to time or as the Committee deems necessary or appropriate.

**2.** **COMPOSITION, OPERATIONS AND AUTHORITY** 

*Composition*

The Committee shall be composed of members of the Board, the number of which shall be fixed from time to time by resolution adopted by the Board. Each member of the Committee shall be independent as determined by the Board in accordance with the applicable requirements of the laws governing the Company, the applicable stock exchanges on which the Company's securities are listed and applicable securities regulatory authorities (collectively, the "**Applicable Law**").

Members of the Committee shall be appointed by the Board and continue to be members until their successors are elected and qualified or until their earlier retirement, resignation or removal. Any member of the Committee may be removed by the Board in its discretion. However, a member of the Committee shall automatically cease to be a member of the Committee upon ceasing to be a director of the Board. Vacancies on the Committee will be filled by the Board.

*Authority*

The authority of the Committee is subject to the provisions of this Charter, the constating documents of the Company, such limitations as may be imposed by the Board from time to time and Applicable Law.

The Committee shall have the authority to (i) retain (at the Company's expense) its own legal counsel and other advisors and experts that the Committee believes, in its sole discretion, are needed to carry out its duties and responsibilities, including, without limitation, the retention of a compensation consultant to assist the Committee in evaluating director and executive officer compensation; and (ii) conduct investigations that it believes, in its sole discretion, are necessary to carry out its responsibilities. In addition, the Committee shall have the authority to request any officer, director or employee of the Company, or any other persons whose advice and counsel are sought by the Committee, such as members of the Company's management or the Company's outside legal counsel and independent accountants, to meet with the Committee or any of its advisors and to respond to their inquiries. The Committee shall have full access to the books, records and facilities of the Company in carrying out its responsibilities.

The Committee shall have the authority to delegate to one or more of its members, responsibility for developing recommendations for consideration by the Committee with respect to any of the matters referred to in this Charter.

*Operations*

The Board may appoint one member of the Committee to serve as chair of the Committee (the "**Chair**"), but if it fails to do so, the members of the Committee shall designate a Chair by majority vote of the full Committee to serve at the pleasure of the majority of the full Committee. If the Chair of the Committee is not present at any meeting of the Committee, an acting Chair for the meeting shall be chosen by majority vote of the Committee from among the members present. In the case of a deadlock on any matter or vote, the Chair shall refer the matter to the Board. The Committee may appoint a secretary who need not be a director of the Board or Committee.

The Chair shall preside at each meeting of the Committee and set the agendas for the Committee meetings. The Committee shall have the authority to establish its own rules and procedures for notice and conduct of its meetings as long as they are not inconsistent with any provisions of the Company's constating documents or this Charter.

The Committee shall have regular meetings (in person or by telephonic meeting) on at least a semi-annual basis or more frequently as circumstances dictate. The Committee shall maintain written minutes or other records of its meetings and activities, which shall be duly filed in the Company's records. The Committee shall meet separately, on at least an annual basis, with the Chief Executive Officer, the vice president of human resources (or similar position) and any other corporate officers as the Board and the Committee deem appropriate to discuss and review the performance criteria and compensation levels of key executive officers.

Except as otherwise required by the Company's constating documents, a majority of the members of the Committee shall constitute a quorum for the transaction of business and the act of a majority of the members present at any meeting at which there is a quorum shall be the act of the Committee. The Committee may also act by unanimous written consent in lieu of a meeting.

The Chair of the Committee shall report to the Board following meetings of the Committee and as otherwise requested by the Board.

**3.** **RESPONSIBILITIES AND DUTIES** 

The Committee's primary responsibilities are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review the adequacy and form of compensation of the Company's
executive officers and ensure that the compensation realistically reflects the risks and responsibilities of such positions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) review and recommend to the Board for approval policies relating
to compensation of the Company's executive officers and directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) review the performance of the Company's executive officers
and recommend annually to the Board for approval the amount and composition of compensation to be paid to the Company's executive
officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) review and make recommendations to the Board with respect to
pension, stock option and other incentive plans, benefit plans, perquisites and other remuneration matters with respect to the Company's
executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) review and approve the corporate goals and objectives relevant to compensation of the Chief Executive
Officer (the "CEO") and the Chief Financial Officer (the "CFO") and recommend them to the Board for approval,
lead the evaluation of the CEO's and the CFO's performance in light of these goals and objectives and recommend the compensation
of the CEO and the CFO based on this evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) review the adequacy and form of compensation of directors and ensure that the compensation realistically
reflects the responsibilities and risks of such positions and fix the amount and composition of compensation to be paid to members of
the Board and the committees thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) review and assess the Company's compensation and benefit policies programs relating to all employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) review at least annually the corporate goals and objectives of the Company's executive compensation
plans, incentive-compensation and equity based plans and other general compensation plans (collectively the "Company Plans"),
and if appropriate, recommend that the Board amend these goals and objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) review at least annually the Company Plans in light of the Company's goals and objectives with respect
to such plans, and, if the Committee deems it appropriate, recommend to the Board the adoption of new, or the amendment of existing, Company
Plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) monitor and assess the Company's compliance with the requirements established by the Applicable
Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) review executive compensation disclosure prior to public disclosure or filing with any securities regulatory
authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) issue an annual report on executive compensation for inclusion in the Company's public filings,
if required by Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) administer and otherwise exercise the various authorities prescribed for the Committee by any of the Company
Plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) review, and if appropriate recommend for approval, any agreements between the Company and the CEO or the
Company and its executive officers, including those assessing retirement, termination of employment or other special circumstances, as
appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) exercise such other powers and perform such other duties and responsibilities as are incidental to the
purposes, duties and responsibilities specified herein and as may from time to time be delegated to the Committee by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) report to the Board on all other matters and recommendations made by the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) report to the Board following each meeting of the Committee and at such other times as the Board may consider
appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) maintain minutes and other records of meetings and activities of the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) follow the process established for all committees of the Board
for assessing the Committee's performance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) review and assess the adequacy of this Charter on an annual
basis and, where necessary or desirable, recommend changes to the Board.

**SCHEDULE C**

**GOVERNANCE COMMITTEE CHARTER**

**NICOLA MINING INC.**

(the "**Company**")

**CORPORATE GOVERNANCE COMMITTEE CHARTER**

(Adopted as of July 7, 2023)

**1.** **PURPOSE OF THE COMPENSATION COMMITTEE** 

The Corporate Governance Committee (the "**Committee**") is a standing committee of the Board of Directors (the "**Board**") of the Company. The role of the Committee is to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) advise and make recommendations to the Board in its oversight role with respect to: (i) the
 development of the Company's corporate governance policies, principles, practices and processes; (ii) the effectiveness of the Board
 and its committees; (iii) the contributions of individual directors; (iv) the identification
of individuals qualified to become board members; and (v) the selection of director nominees for election by the shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) take such other actions within the scope of this Charter as the Board may assign to the Committee from
time to time or as the Committee deems necessary or appropriate.

**2.** **COMPOSITION, OPERATIONS AND AUTHORITY** 

*Composition*

The Committee shall be composed of members of the Board, the number of which shall be fixed from time to time by resolution adopted by the Board. A majority of the members of the Committee shall be independent as determined by the Board in accordance with the applicable requirements of the laws governing the Company, the applicable stock exchanges on which the Company's securities are listed and applicable securities regulatory authorities (collectively, the "**Applicable Law**").

Members of the Committee shall be appointed by the Board and continue to be members until their successors are elected and qualified or until their earlier retirement, resignation or removal. Any member of the Committee may be removed by the Board in its discretion. However, a member of the Committee shall automatically cease to be a member of the Committee upon ceasing to be a director of the Board. Vacancies on the Committee will be filled by the Board.

*Authority*

The authority of the Committee is subject to the provisions of this Charter, the constating documents of the Company, such limitations as may be imposed by the Board from time to time and Applicable Law.

The Committee shall have the authority to: (i) retain (at the Company's expense) its own legal counsel and other advisors and experts that the Committee believes, in its sole discretion, are needed to carry out its duties and responsibilities; and (ii) conduct investigations that it believes, in its sole discretion, are necessary to carry out its responsibilities. In addition, the Committee shall have the authority to request any officer, director or employee of the Company, or any other persons whose advice and counsel are sought by the Committee, such as members of the Company's management or the Company's outside legal counsel and external auditors, to meet with the Committee or any of its advisors and to respond to their inquiries. The Committee shall have full access to the books, records and facilities of the Company in carrying out its responsibilities.

The Committee shall have the authority to delegate to one or more of its members, responsibility for developing recommendations for consideration by the Committee with respect to any of the matters referred to in this Charter.

*Operations*

The Board may appoint one member of the Committee to serve as chair of the Committee (the "**Chair**"), but if it fails to do so, the members of the Committee shall designate a Chair by majority vote of the full Committee to serve at the pleasure of the majority of the full Committee. If the Chair of the Committee is not present at any meeting of the Committee, an acting Chair for the meeting shall be chosen by majority vote of the Committee from among the members present. In the case of a deadlock on any matter or vote, the Chair shall refer the matter to the Board. The Committee may appoint a secretary who need not be a director of the Board or Committee.

The Chair shall preside at each meeting of the Committee and set the agendas for the Committee meetings. The Committee shall have the authority to establish its own rules and procedures for notice and conduct of its meetings as long as they are not inconsistent with any provisions of the Company's constating documents or this Charter.

The Committee shall have regular meetings (in person or by telephonic meeting) on at least a semi-annual basis or more frequently as circumstances dictate. The Committee shall maintain written minutes or other records of its meetings and activities, which shall be duly filed in the Company's records.

Except as otherwise required by the Company's constating documents, a majority of the members of the Committee shall constitute a quorum for the transaction of business and the act of a majority of the members present at any meeting at which there is a quorum shall be the act of the Committee. The Committee may also act by unanimous written consent in lieu of a meeting.

The Chair of the Committee shall report to the Board following meetings of the Committee and as otherwise requested by the Board.

**Responsibilities and duties**

The Committee's primary responsibilities are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review the Board committee structure on an annual basis and
recommend to the Board any changes it considers necessary or desirable with respect to that committee structure, including (all in consultation
with the Chair of the Board): (i) the mandates of each committee; (ii) the criteria for membership on any committee; (iii) the composition
of each committee; (iv) the appointment and removal of members from any committee; (v) the operations of each committee, including the
ability of any committee to delegate any or all of its responsibilities to a sub-committee of that committee; and (vi) the process for
each committee reporting to the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) review the charters of each committee of the Board, and recommend
such changes as are required or desirable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) review the Company's corporate governance practices at least
annually and recommend appropriate policies, practices and procedures to the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) review the corporate governance sections to be included in the
Company's annual report or proxy material, including the statement of corporate governance practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) develop and recommend to the Board a process for assessing the
effectiveness of the Board, as a whole, the committees of the Board and the contribution of individual directors and be responsible for
overseeing the execution of the assessment process approved by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) evaluate its effectiveness and the effectiveness of its members
pursuant to the process for such evaluation approved by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) review, as required, the skills, areas of expertise, backgrounds,
independence and qualifications of the members of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) review, as required, the size and composition of the Board to
ensure that there remain an appropriate number of "unrelated" and "independent" directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) serve as a forum for individual directors to voice any concerns
on matters not readily discussed at regular meetings of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) recommend to the Board a system which enables an individual
director to engage outside advisers at the Company's expense in appropriate circumstances and with the approval of the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) recommend to the Board appropriate criteria for the selection
of new directors, periodically review the criteria adopted by the Board and, if deemed desirable, recommend to the Board changes to such
criteria;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) identify and recommend qualified candidates to the Board who
meet the selection criteria approved by the Board, and recommend the slate of nominees for election by shareholders at the annual meeting
(and in this regard the Committee shall have the sole authority to retain and terminate any search firm to be used to identify director
candidates or to otherwise assist the Committee in the discharge of its responsibilities, including the sole authority to approve the
search firm's fees and other retention terms);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) recommend to the Board structures and procedures to enable the
Board to function independently of management and oversee the development and implementation of any structures and procedures approved
by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) review the relationship of the Board with management and recommend,
where appropriate, limits on management's authority to act without the express approval of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) assess shareholder proposals as necessary for inclusion in the
management information circular and make appropriate recommendations to the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) oversee: (i) the development and implementation of orientation
programs for new directors; and (ii) continuing education for all directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) monitor and assess the Company's compliance with the requirements
established by the Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) exercise such other powers and perform such other duties and
responsibilities as are incidental to the purposes, duties and responsibilities specified herein and as may from time to time be delegated
to the Committee by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) report to the Board on all other matters and recommendations made by the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) report to the Board following each meeting of the Committee
and at such other times as the Board may consider appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) maintain minutes and other records of meetings and activities of the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) follow the process established for all committees of the Board
for assessing the Committee's performance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) review and assess the adequacy of this Charter on an annual
basis and, where necessary or desirable, recommend changes to the Board.

## Exhibit 4.3

**Exhibit 4.3**

![](tm264113d1_ex4-3img001.jpg)

**NICOLA MINING INC.**

**Amended Consolidated Financial Statements**

**For the years ended December 31, 2024 and 2023**

**<u>Note to Reader</u>**

**The annual consolidated financial statements for the year ended December 31, 2024 have been re-audited by Nicola Mining Inc.'s (the "Company") current auditor, and the re-audited amended annual consolidated financial statements are being refiled to include the audit report of the Company's current auditor, which has been issued in accordance with Canadian generally accepted auditing standards.**

**Other than the replacement of the predecessor auditor's report with the current auditor's report, management has: provided additional disclosure regarding related party transactions in Note 15 "Milling Revenue and Other Income" and Note 16 "Related Party Transactions" and updated Note 20 "Subsequent Events" to reflect events occurring up to the date of approval of these re-audited amended consolidated financial statements by the Board of Directors.**

**INDEPENDENT AUDITOR'S REPORT**

To the Shareholders of

Nicola Mining Inc.

***Opinion***

We have audited the accompanying amended consolidated financial statements of Nicola Mining Inc. (the "Company"), which comprise the amended consolidated statements of financial position as at December 31, 2024 and 2023, and the amended consolidated statements of operations and comprehensive loss, changes in shareholders' deficit, and cash flows for the years then ended, and notes to the amended consolidated financial statements, including material accounting policy information.

In our opinion, these amended consolidated financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board.

***Basis for Opinion***

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the amended consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide a basis for our opinion.

***Emphasis of Matter – Restated Comparative Information***

We draw attention to Note 2 of the amended consolidated financial statements, which explains that certain comparative information presented for the year ended December 31, 2023 has been restated. Note 2 explains the reason for restatement and the adjustments that were applied to restate certain comparative information.

***Material Uncertainty Related to Going Concern***

We draw attention to Note 1 of the amended consolidated financial statements, which indicates that as at December 31, 2024, the Company had an accumulated deficit of $111,446,249 and working capital deficit of $2,793,541. As stated in Note 1, these events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

***Key Audit Matters***

Key audit matters ("KAMs") are those matters that, in our professional judgment, were of most significance in our audit of the amended consolidated financial statements of the current year ended. These matters were addressed in the context of our audit of the amended consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matter described below to be the key audit matter to be communicated in our auditor's report.

![](tm264113d1_ex4-3img003.jpg)

*<u>Assessment of Asset Retirement Obligations</u>*

As described in Note 11 to the amended consolidated financial statements, the Company's asset retirement obligation ("ARO") was $14,219,544 as of December 31, 2024. As more fully described in Notes 2 and 3 to the amended consolidated financial statements, accounting for the ARO requires management to exercise judgement and make estimates on assessing the ARO at the end of each period.

The principal considerations for our determination that the ARO is a key audit matter are that there was judgment made by management when assessing the nature and extent of future work to be performed, the future cost of perform mining rehabilitation work, the timing of when the rehabilitation will take place and economic assumptions such as the discount rate, and inflation rates. This in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures to evaluate audit evidence relating to the judgments made by management in their assessment of the ARO.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the amended consolidated financial statements. Our audit procedures included, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Evaluated the qualifications, competence and objectivity of management who assisted with the cost estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Evaluated the appropriateness of inputs used by management, including assessment of the inflation rate
and discount rates applied to calculate the net present value of the liability and compare amounts against market available data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Compared management's estimates of rehabilitation costs to estimates prepared by an independent
external expert.

***Other Information***

Management is responsible for the other information. The other information obtained at the date of this auditor's report includes

Management's Discussion and Analysis.

Our opinion on the amended consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the amended consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the amended consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We obtained Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

***Responsibilities of Management and Those Charged with Governance for the Amended Consolidated Financial Statements***

Management is responsible for the preparation and fair presentation of the amended consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of amended consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the amended consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

***Auditor's Responsibilities for the Audit of the Amended Consolidated Financial Statements***

Our objectives are to obtain reasonable assurance about whether the amended consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these amended consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of the amended consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
control.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude on the appropriateness of management's use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor's report to the related disclosures in the amended consolidated financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future
events or conditions may cause the Company to cease to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the overall presentation, structure and content of the amended consolidated financial statements,
including the disclosures, and whether the amended consolidated financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the amended consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the amended consolidated financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Carmen Newnham.

![](tm264113d1_ex4-3img004.jpg)

Vancouver, Canada Chartered Professional Accountants <br> <br> January 23, 2026

**NICOLA MINING INC.**

**Amended Consolidated Statements of Financial Position**

**(Expressed in Canadian dollars)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Note** |<br>**December 31, 2024** | **December 31, 2023**<br>**(Restated - note 2a)** | **January 1, 2023**<br>**(Restated - note 2a)** |
| **Assets** |  |  |  |  |
| **Current assets** |  |  |  |  |
| Cash and cash equivalent |  | $1462218 | $4756118 | $895774 |
| Amounts receivable | 4 | 670556 | 566709 | 1199008 |
| Marketable securities | 8 | 1076142 |  |  |
| Prepaid expenses and other assets |  | 223425 | 123040 | 11881 |
|  |  | **3432341** | **5445867** | **2106663** |
| **Non-current assets** |  |  |  |  |
| Property, plant, and equipment | 5 | 5734412 | 5488781 | 5643369 |
| Right-of-use assets |  | 54601 | 13360 | 32189 |
| Mineral interests | 7 | 4 | 4 | 4 |
| Restricted cash | 9 | 1437875 | 1275875 | 1227520 |
| **Total assets** |  | $**10659233** | $**12223887** | $**9009745** |
| **Liabilities** |  |  |  |  |
| **Current liabilities** |  |  |  |  |
| Accounts payable and accrued liabilities |  | $1616118 | $682205 | $560282 |
| Current portion of lease liabilities |  | 26174 | 16353 | 20628 |
| Other liabilities |  |  |  | 32712 |
| Secured convertible debenture | 10 | 4481066 |  | 596658 |
| Flow-through liability | 13 | 102524 | - | 29416 |
|  |  | **6225882** | **698558** | **1239696** |
| **Non-current liabilities** |  |  |  |  |
| Lease liabilities |  | 28427 |  | 16383 |
| Secured convertible debenture | 10 |  | 4236848 | 5071428 |
| Asset retirement obligation ("ARO") | 11 | 14219544 | 14506089 | 10178251 |
| **Total liabilities** |  | **20473853** | **19441495** | **16505758** |
| **Equity** |  |  |  |  |
| **Shareholders' deficit** |  |  |  |  |
| Share capital | 13 | 87783671 | 85894218 | 82922658 |
| Equity component of convertible debentures | 10 | 2659366 | 2671669 | 2552797 |
| Warrants | 13 | 1694494 | 1694494 | 1694494 |
| Contributed surplus | 14 | 9494098 | 8737314 | 8223493 |
| Accumulated deficit |  | (111446249) | (106215303) | (102889455) |
| **Total shareholders' deficit** |  | **(9814620)** | **(7217608)** | **(7496013)** |
| **Total liabilities and shareholders' deficit** |  | $**10659233** | $**12223887** | $**9009745** |

---

Nature of operations and going concern (Note 1)

Subsequent events (Note 20)

Approved on behalf of the Board:

---

| | | | |
|:---|:---|:---|:---|
| ***Peter Espig (signed)*** | Director | ***Frank Hogel (signed)*** | Director |

---

*The accompanying notes are an integral part of these amended consolidated financial statements.*

**NICOLA MINING INC.**

**Amended Consolidated Statements of Operations and Comprehensive Loss**

**(Expressed in Canadian dollars)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | <br>Note | **2024** | **2023**<br>**(Restated-**<br>**note 2a)** |
| Milling revenue | 2(a),15 | $818157 | $1617911 |
| Milling – cost of sales | 2(a),6 | (2257053) | (3136373) |
| Gross margin |  | (1438896) | (1518462) |
| Care and maintenance | 2(a) | (1045250) | (957979) |
| Exploration cost | 7 | (1759410) | (1209918) |
| Change in estimate and accretion of ARO | 11 | 286545 | (4327838) |
| Salaries and benefits | 16 | (99412) | (167670) |
| Share-based compensation | 1416 | (756784) | (540914) |
| Professional fees |  | (183607) | (207170) |
| Consulting fees | 16 | (552750) | (550500) |
| Office and general |  | (460536) | (129694) |
| Travel and investor relations |  | (582750) | (394308) |
| Regulatory and transfer agent fees |  | (56173) | (41493) |
| Rent |  | (45161) | (72562) |
| Depreciation |  | (13400) | (10849) |
| **Total operating expenses** |  | (5268688) | (8610895) |
| **Net loss before other items** |  | (6707584) | (10129357) |
| Flow-through premium | 13 | 4192 | 29416 |
| Other income | 15 | 1968941 | 8145935 |
| Finance costs | 12 | (591881) | (1446059) |
| Fair value revaluation – marketable securities | 8 | 103897 |  |
| Foreign exchange gain (loss) |  | (8511) | 5003 |
| **Net loss before income taxes** |  | (5230946) | (3395062) |
| Deferred income tax recovery | 18 | - | 69214 |
| **Net loss for the year** |  | $(5230946) | (3325848) |
| **Loss per share – basic and diluted** |  | $(0.03) | (0.02) |
| **Weighted average number of common shares outstanding Basic** |  | 165376575 | 158357885 |
| **Weighted average number of common shares outstanding Diluted** |  | 165376575 | 158357885 |

---

*The accompanying notes are an integral part of these amended consolidated financial statements.*

**NICOLA MINING INC.**

**Amended** **Consolidated Statements of Cash Flows**

**(Expressed in Canadian dollars)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** |
|  | **2024** | **2023 (Restated**<br>**– note 2a)** |
| **Operating Activities** |  |  |
| Net loss for the year | $(5230946) | $(3325848) |
| Adjustments for: |  |  |
| &nbsp;&nbsp;&nbsp;Change in estimate and accretion of ARO | (286545) | 4327838 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 756784 | 679773 |
| &nbsp;&nbsp;&nbsp;Deferred income tax recovery |  | (69214) |
| &nbsp;&nbsp;&nbsp;Depreciation | 230592 | 213758 |
| &nbsp;&nbsp;&nbsp;Non-cash interest and finance costs | 597227 | 1435951 |
| &nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss |  | (5063) |
| &nbsp;&nbsp;&nbsp;Flow-through premium | (4192) | (29416) |
| &nbsp;&nbsp;&nbsp;Fair value revaluation – marketable securities | (103897) |  |
| Changes in non-cash working capital items |  |  |
| &nbsp;&nbsp;&nbsp;Amounts receivable | (103847) | 632299 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (100385) | (111159) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 933913 | 121923 |
| **Cash (Used In) Provided by Operating Activities** | (3311296) | 3870842 |
| **Investing Activities** |  |  |
| Purchase of marketable securities | (1000000) |  |
| Purchase of property, plant, and equipment | (452988) | (48355) |
| Restricted cash advanced | (162000) | (40341) |
| Proceeds – sales of marketable securities | 27755 | - |
| **Cash Used in Investing Activities** | (1587233) | (88696) |
| **Financing Activities** |  |  |
| Issuance of common shares, net of cash paid for share issuance costs | 1669604 | 2000000 |
| Interest payment on secured convertible debenture | (33000) | (564671) |
| Repayment of secured convertible debenture |  | (1165275) |
| Payment – premium and interest on secured convertible debenture |  | (349583) |
| Repayment of lease liabilities | (31975) | (24240) |
| Repayment of equipment loan |  | (20668) |
| Interest payment on equipment loan |  | (384) |
| Repayment of working capital and revolving prepayment loan |  | (6981) |
| Exercise of stock options | - | 210000 |
| **Cash Provided by Financing Activities** | 1604629 | 78198 |
| **Net change in cash for the year** | (3293900) | 3860344 |
| **Cash and cash equivalent - beginning of year** | 4756118 | 895774 |
| **Cash and cash equivalent - end of year** | $1462218 | $4756118 |
| **Non-cash transactions:** |  |  |
| Shares issued to settle convertible debentures and interest | $314262 | $527347 |
| Recognition of equity component of convertible debentures | $- | $187133 |
| Initial recognition of right-of-use assets and lease liabilities | $64476 | $- |
| **Cash** | $1402218 | $4695230 |
| **Cash equivalent** | 60000 | 60888 |
| **Cash and cash equivalent - end of year** | $1462218 | $4756118 |

---

*The accompanying notes are an integral part of these amended consolidated financial statements.*

**NICOLA MINING INC.**

**Amended** **Consolidated Statements of Changes in Shareholders' Deficit**

**(Expressed in Canadian dollars)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |<br><br>**Number of**<br>**Common Shares** |<br><br>**Share**<br>**Capital** |<br><br>**Warrants** | **Equity**<br>**Component**<br>**of**<br>**Convertible**<br>**Debentures** |<br><br>**Contributed**<br>**Surplus** |<br>**Accumulated**<br>**Deficit (restated –**<br>**note 2a)** |<br><br>**Total**<br>**Deficit** |
| **Balance, January 1, 2024 (restated, see note 2a)** | 161182098 | $85894218 | $1694494 | $2671669 | $8737314 | $(106215303) | $(7217608) |
| Share issuance financing, net | 7141784 | 1669604 |  |  |  |  | 1669604 |
| Flow-through premium |  | (106716) |  |  |  |  | (106716) |
| Convertible debenture conversion | 1594314 | 326565 |  | (12303) |  |  | 314262 |
| Share-based compensation |  |  |  |  | 756784 |  | 756784 |
| Net loss for the year | - | - | - | - | - | (5230946) | (5230946) |
| **Balance, December 31, 2024** | 169918196 | $87783671 | $1694494 | $2659366 | $9494098 | $(111446249) | $(9814620) |
| **Balance, January 1, 2023 (restated, see note 2a)** | 149036074 | $82922658 | $1694494 | $2552797 | $8223493 | $(102889455) | $(7496013) |
| Share issuance financing | 8000000 | 2000000 |  |  |  |  | 2000000 |
| Stock options exercised | 1150000 | 375952 |  |  | (165952) |  | 210000 |
| Issuance of convertible debenture |  |  |  | 187133 |  |  | 187133 |
| Convertible debenture conversion | 2996024 | 595608 |  | (68261) |  |  | 527347 |
| Share-based compensation |  |  |  |  | 679773 |  | 679773 |
| Net loss for the year (note 2a) | - | - | - | - | - | (3325848) | (3325848) |
| **Balance, December 31, 2023 (restated, see note 2a)** | 161182098 | $85894218 | $1694494 | $2671669 | $8737314 | $(106215303) | $(7217608) |

---

*The accompanying notes are an integral part of these amended consolidated financial statements.*

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**1.** **NATURE OF OPERATIONS AND GOING CONCERN** 

Nicola Mining Inc. (the **"Company"** or **"Nicola"**) is a junior exploration company that is engaged in the business of identification, acquisition, and exploration of mineral property interests together with custom milling operations at its mill located in Merritt, B.C. (the **"Merritt Mill"**). The Company's head office is located at 3329 Aberdeen Road, Lower Nicola, B.C. Nicola is a publicly listed company incorporated under the *Business Corporations Act* (British Columbia). The Company's common shares are listed on the TSX Venture Exchange (the "**TSX-V**") under the symbol "NIM.V" and on OTCQB operated by the OTC Markets Group Inc. under the ticker "HUSIF".

As at December 31, 2024, the Company had an accumulated deficit of $111,446,249 (December 31, 2023 - $106,215,303, restated, see note 2a) and working capital deficit of $2,793,541 (2023 – working capital of $4,747,309). To continue operations, the Company will be required to raise funds through the issuance of equity or debt, be successful recommencing operations at the Treasure Mountain project (**"Treasure Mountain Property"**) and/or Merritt Mill (**"Merritt Mill"**), together with ongoing exploration programs at its New Craigmont property (**"New Craigmont Property"**).

The Company's business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, tariffs, changes in laws, and national and international circumstances. Recent geopolitical events and potential economic global challenges such as the risk of higher inflation and energy crises, may create further uncertainty and risk with respect to the prospects of the Company's business. These factors represent a material uncertainty that may raise substantial doubt about the Company's ability to continue as a going concern. Realization values may be substantially different from carrying values as shown and the Company's amended consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern.

These amended consolidated financial statements have been prepared using the going concern concept, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.

<u>Stock consolidation</u> 

During the year ended December 31, 2023, the Company consolidated its common shares on a 2-to-1 ratio ("Stock Consolidation"). For all periods presented herein, the number of common shares, stock options, and warrants have been retroactively restated.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**2.** **BASIS OF PRESENTATION** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Restatement of prior year balances** 

The Company has identified the following adjustments to previously reported amounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) As milling and other milling related operations is considered to be the Company's ordinary business,
$1,617,911 of milling charges and net profit earned from concentrate sales were reclassified as milling revenue. The associated milling
cost of $3,216,934 was reclassified as milling - cost of sales. $957,979 remaining costs relating to care and maintenance have been reclassified
as such.

ii) ARO asset balances historically capitalized to property, plant, and equipment are now expensed as the related provision is a result of historic operations. The following is a summary of the impact of the noted adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. A decrease in property, plant, and equipment of $13,498,168.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Decrease in depreciation of mill of $80,561.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Change in estimate of ARO of $4,007,706.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. An increase in accumulated deficit of $9,571,023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Overall increase of net loss of $3,927,145 which increased the closing retained deficit.

iii) After the adjustments above, the options and warrants are anti-dilutive due to the restated financial results of the consolidated statement of operations being in a net loss position. The diluted weighted average number of common shares is equal to the basic weighted average number of common shares.

iv) The adjustments above did not have a material impact on the Company's total cash flows used in or provided by operating activities, cash flows used in investing activities, and cash flows provided by financing activities.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **BASIS OF PRESENTATION** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Restatement of prior year balances** – (continued)

---

| | | | |
|:---|:---|:---|:---|
|  | **January 1, 2023<br> as previously reported** | **Adjustments** | **January 1, 2023<br> as restated** |
| **Assets** | | | |
| **Current assets** |  |  |  |
| Cash and cash equivalent | $895774 | $- | $895774 |
| Amounts receivable | 1199008 |  | 1199008 |
| Prepaid expenses and other assets | 11881 | - | 11881 |
|  | **2106663** | **-** | **2106663** |
| **Non-current assets** |  |  |  |
| Property, plant, and equipment | 15214392 | (9571023)(ii) | 5643369 |
| Right-of-use-assets | 32189 |  | 32189 |
| Mineral interests | 4 |  | 4 |
| Restricted cash | 1227520 | - | 1227520 |
| **Total assets** | $**18580768** | $**(9571023)** | $**9009745** |
| **Liabilities** |  |  |  |
| **Current liabilities** |  |  |  |
| Accounts payable and accrued liabilities | $560282 | $- | $560282 |
| Current portion of lease liabilities | 20628 |  | 20628 |
| Other liabilities | 32712 |  | 32712 |
| Secured convertible debenture | 596658 |  | 596658 |
| Flow-through liability | 29416 | - | 29416 |
|  | **1239696** | **-** | **1239696** |
| **Non-current liabilities** |  |  |  |
| Lease liabilities | 16383 |  | 16383 |
| Secured convertible debenture | 5071428 |  | 5071428 |
| Asset retirement obligation | 10178251 | - | 10178251 |
| **Total liabilities** | **16505758** | **-** | **16505758** |
| **Equity (deficit)** |  |  |  |
| **Shareholders' equity (deficit)** |  |  |  |
| Share capital | 82922658 |  | 82922658 |
| Equity component of convertible |  |  |  |
| debentures | 2552797 |  | 2552797 |
| Warrants | 1694494 |  | 1694494 |
| Contributed surplus | 8223493 |  | 8223493 |
| Accumulated deficit | (93318432) | (9571023)(ii) | (102889455) |
| **Total shareholders' equity (deficit)** | **2075010** | **(9571023)** | **(7496013)** |
| **Total liabilities and shareholders' equity (deficit)** | $**18580768** | $**(9571023)** | $**9009745** |

---

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **BASIS OF PRESENTATION** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Restatement of prior year balances** – (continued)

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023<br> as previously reported** | **Adjustments** | **December 31, 2023<br> as restated** |
| **Assets** | | | |
| **Current assets** |  |  |  |
| Cash and cash equivalent | $4756118 | $- | $4756118 |
| Amounts receivable | 566709 |  | 566709 |
| Prepaid expenses and other assets | 123040 | - | 123040 |
|  | **5445867** | **-** | **5445867** |
| **Non-current assets** |  |  |  |
| Property, plant, and equipment | 18986949 | (13498168)(ii) | 5488781 |
| Right-of-use-assets | 13360 |  | 13360 |
| Mineral interests | 4 |  | 4 |
| Restricted cash | 1275875 | - | 1275875 |
| **Total assets** | $**25722055** | $**(13498168)** | $**12223887** |
| **Liabilities** |  |  |  |
| **Current liabilities** |  |  |  |
| Accounts payable and accrued liabilities | $682205 | $- | $682205 |
| Current portion of lease liabilities | 16353 | - | 16353 |
|  | **698558** | **-** | **698558** |
| **Non-current liabilities** |  |  |  |
| Secured convertible debenture | 4236848 |  | 4236848 |
| Asset retirement obligation | 14506089 | - | 14506089 |
| **Total liabilities** | **19441495** | **-** | **19441495** |
| **Equity (deficit)** |  |  |  |
| **Shareholders' equity (deficit)** |  |  |  |
| Share capital | 85894218 |  | 85894218 |
| Equity component of convertible |  |  |  |
| debentures | 2671669 |  | 2671669 |
| Warrants | 1694494 |  | 1694494 |
| Contributed surplus | 8737314 |  | 8737314 |
|  |  | (9571023)(ii) |  |
| Accumulated deficit | (92717135) | (3927145)(ii) | (106215303) |
| **Total shareholders' equity (deficit)** | **6280560** | **(13498168)** | **(7217608)** |
| **Total liabilities and shareholders' equity (deficit)** | $**25722055** | $**(13498168)** | $**12223887** |

---

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

---

| | |
|:---|:---|
| **2.** | &nbsp;&nbsp;&nbsp;&nbsp;**BASIS OF PRESENTATION** – (continued) |
|  | &nbsp;&nbsp;**a) Restatement of prior year balances** – (continued) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023**<br>**as previously**<br>**reported** |<br>**Adjustments** |<br>**2023**<br>**as restated** |
| Milling revenue | $- | $1617911 (i) | $1617911 |
| Milling – cost of sales |  | (3216934)(i) |  |
|  | - | 80561 (ii) | (3136373) |
| **Gross margin** | **-** | **(1518462)** | **(1518462)** |
| Exploration costs | (1209918) |  | (1209918) |
| Mill costs |  | (1617911)(i) |  |
|  |  | 3216934 (i) |  |
|  | (2557002) | 957979 (i) |  |
| Care and maintenance |  | (957979)(i) | (957979) |
| Change in estimate and accretion of ARO | (320132) | (4007706)(ii) | (4327838) |
| Salaries and benefits | (167670) |  | (167670) |
| Share-based compensation | (540914) |  | (540914) |
| Professional fees | (207170) |  | (207170) |
| Consulting fees | (550500) |  | (550500) |
| Office and general | (129694) |  | (129694) |
| Travel and investor relations | (394308) |  | (394308) |
| Regulatory and transfer agent fees | (41493) |  | (41493) |
| Rent | (72562) |  | (72562) |
| Depreciation | (10849) | - | (10849) |
| **Total operating expenses** | **(6202212)** | **(3927145)** | **(8610895)** |
| **Net loss before other items** | **(6202212)** | **(3927145)** | **(10129357)** |
| Flow-through premium | 29416 |  | 29416 |
| Other income | 8145935 |  | 8145935 |
| Finance costs | (1446059) |  | (1446059) |
| Foreign exchange gain (loss) | 5003 | - | 5003 |
| **Net income (loss) before income taxes** | **532083** | **(3927145)** | **(3395062)** |
| Deferred income tax recovery | 69214 | - | 69214 |
| **Net Income (loss) for the year** | $**601297** | $**(3927145)** | $**(3325848)** |
| **Earnings (loss) per share – basic and diluted** | $**0.00** | $**-** | $**(0.02)** |
| **Weighted average number of common shares outstanding – Basic** | 158357885 |  | 158357885 |
| **Weighted average number of common shares outstanding – Diluted** | 161507885 | - | 158357885 |

---

These changes were made in accordance with IAS 8 resulting in the restatement of prior year figures as summarized above.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**2.** **BASIS OF PRESENTATION** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Statement of Compliance with International Financial Reporting Standards** 

The consolidated financial statements of Nicola have been prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("**IASB**")

These amended consolidated financial statements have been authorized for release by the Company's Board of Directors on January 23, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Basis of Consolidation** 

These amended consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Huldra Properties Inc. All inter-company balances, and transactions are eliminated on consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;**c)** **Basis of Measurement** 

These amended consolidated financial statements are presented in Canadian dollars, which is also the Company's and its subsidiary's functional currency and have been prepared on a historical cost basis, except for certain financial instruments, which are carried at fair value. In addition, these amended consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

&nbsp;&nbsp;&nbsp;&nbsp;**d)** **Use of Estimates and Judgments** 

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments and estimates which affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. The judgments that have the most significant effect on the amounts recognized in the Company's amended consolidated financial statements are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Going concern</u>

The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to conduct its planned work program on its mineral properties, meet its on-going levels of corporate overhead and commitments, keep its properties in good standing and discharge its liabilities as they come due. These matters result in material uncertainties which may cast significant doubt about the Company's ability to continue as a going concern. See note 1 for details.

ii) <u>Revenue – Agent versus Principal</u>

The Company uses judgment in assessing whether it is acting as an agent or principal in earning milling revenues. As part of this determination, consideration has been given as to whether the Company control the goods being delivered to the customer, is primarily responsible for fulling the promise to provides goods to the customer, having any inventory risk, and the Company's ability in establishing pricing. Management has reviewed the relevant factors and assessed that the Company is an agent.

&nbsp;&nbsp;&nbsp;&nbsp;**e)** **Key Sources of Estimation Uncertainty** 

The significant assumptions about the future and other major sources of estimation uncertainty as at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amounts of the Company's assets and liabilities are as follows:

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**2.** **BASIS OF PRESENTATION** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;**e)** **Key Sources of Estimation Uncertainty** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>ARO</u>

The Company's rehabilitation provision represents management's best estimate of the present value of the future cash outflows required to settle the liability. Management assesses these provisions on an annual basis or when new information becomes available. This assessment includes the estimation of the future rehabilitation costs, the timing of these expenditures, inflation, and the impact of changes in discount rates, interest rates and foreign exchange rates. The actual future expenditures may differ from the amounts currently provided if the estimates made are significantly different than actual results or if there are significant changes in environmental and/or regulatory requirements in the future.

iii) <u>Impairment of non-current assets</u>

At the end of each reporting period the carrying amounts of the Company's non-financial assets are reviewed to determine whether there is any indication that those assets are impaired. The determination of whether indicators of impairment exist is based on management's judgment of whether there are internal and external factors that would indicate that a non-financial asset is impaired. Impairment is assessed at the level of cash-generating units or "CGUs", which are identified as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **MATERIAL ACCOUNTING POLICIES** 

&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Property, Plant, and Equipment** 

On initial recognition, property, plant, and equipment ("**PPE**") are valued at cost, being the purchase price and directly attributable costs of acquisition or construction required to bring the asset to the location and condition necessary to be capable of operating in the manner intended by the Company, including appropriate borrowing costs and the estimated present value of any future unavoidable costs of dismantling and removing items.

PPE is subsequently stated at cost less accumulated depreciation, less any accumulated impairment losses, apart from land, which is not depreciated.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost can be measured reliably. The carrying amount of a replaced asset is derecognized when replaced. Repair and maintenance costs are charged to the statement of operations during the financial period in which they are incurred.

The Company allocates the amount initially recognized in respect of an item of PPE to its significant parts and depreciates separately each part. Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate.

Gains and losses on disposal of an item of PPE are determined by comparing the proceeds from disposal with the carrying amount of the asset and are recognized within operating expenses in the statement of operations.

PPE are depreciated using the following methods:

---

| | |
|:---|:---|
| Mill | 20 years straight-line |
| Computers and office equipment | 20% declining balance |
| Camp and site infrastructure | 5 years straight-line |
| Heavy machinery and equipment | 5 years straight-line |

---

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **MATERIAL ACCOUNTING POLICIES** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Impairment of Non-financial Assets** 

At the date of each statement of financial position, the carrying amounts of the Company's non-financial assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment, if any. Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

An asset's recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm's length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in the statement of operations for the period.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in the statement of operations.

&nbsp;&nbsp;&nbsp;&nbsp;**c) Mineral Interests**

The Company follows the method of accounting for its mineral interests whereby all costs related to acquisition and site restoration are capitalized by project, net of recoveries received. The amounts shown as mineral interests represent costs incurred to date less amounts written off, and do not necessarily represent present or future values. These costs will be amortized against revenue from future production or written off if the interest is abandoned or sold. The ultimate recoverability of amounts capitalized for mineral interests is dependent upon the delineation of economically recoverable ore reserves, the Company's ability to obtain the necessary financing to complete development and realize profitable production or proceeds from the disposition thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d)** **Exploration and Evaluation Expenditures** 

Exploration and evaluation expenditures ("**E&E**") excluding mineral interest acquisition and site restoration costs are charged to the statement of operations as incurred. When it has been established that a mineral deposit is commercially mineable, and a decision has been made to formulate a mining plan (which occurs upon completion of a positive economic analysis of the mineral deposit), the costs subsequently incurred to develop the mine on the property prior to the start of the mining operations is capitalized. Any recoveries received that relate to exploration costs are recorded as a recovery of such costs.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **MATERIAL ACCOUNTING POLICIES** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;**e)** **Revenue Recognition** 

<u>Milling Revenue</u> 

Revenue includes precious metals (gold and silver) revenue and milling revenue.

Precious metals revenue, based on spot metal prices, is recorded when the goods are physically delivered. The performance obligations are satisfied when concentrate is delivered to the customer. At this point in time, the Company physically transfers the product and the significant risks and rewards related to ownership of the concentrate to the customer. Revenue from gold sales is recorded based on the contract price.

Milling revenue is recorded when the ore processing service is rendered by the Company, accepted by the client and collection is reasonably assured. The performance obligations are satisfied when the milling services have been completed.

When applicable, the Company excludes amounts collected on behalf of third-parties from revenue when it does not control the goods or services before they are transferred to a customer, since it is acting as an agent rather than a principal to the transaction.

The Company's concentrate sales contract provides for certain provisional payments based upon provisional assays and quoted prices. Final settlement is also subject to final adjustments based on an inspection of the product by the buyer. In such cases, sales revenue is initially recognized on a provisional basis using the Company's best estimate of the contained metal and is subsequently adjusted. Revenue is recorded under this contract at the time the control passes to the buyer based on the expected settlement period. Revenue on provisionally priced sales is recognized based on estimates of the fair value of the consideration receivable based on forward market prices and estimated quantities.

<u>Royalty on Gravel Pit</u> 

The Company earns royalty income based on the extraction and shipment of tonnes of gravel and rocks from its site by a third party. The royalty is calculated based on the weight of gravel and rocks that are extracted and shipped off site by the operator. Royalty income is recognized when the performance obligation is satisfied, which is when the gravel and rocks are shipped off site at which point economic benefits will flow to the Company and income can be measured reliably. Royalty income is presented as other income in the consolidated statements of operations.

<u>Space Rental</u> 

Rental income arising from monthly rental of space for storage to third parties is recognized as other income when the performance obligation is satisfied over the rental period, it is probable that the economic benefits will flow to the Company and the income can be measured reliably over the period of the rental. Rental income is presented within other income in the consolidated statements of operations.

<u>Materials Disposal</u> 

The Company earns income from the import of materials, fly ash and reclaimed soil, based on the tonnes and type of material received from third parties. The income is recognized when the performance obligation is satisfied, which is when the materials are deposited at the site at which point economic benefits will flow to the Company and income can be measured reliably. Materials disposal income is presented as other income in the consolidated statements of operations.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**3.** **MATERIAL ACCOUNTING POLICIES** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f) Financial Instruments**

Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively. Cash and cash equivalent, amounts receivable, restricted cash, accounts payable and accrued liabilities, lease liabilities and secured convertible debenture are carried at amortized cost.

Financial assets and liabilities carried at fair value or profit or loss are initially recorded at fair value and transaction costs are expensed in profit or loss in the statements of operations and comprehensive loss. Marketable securities is carried at fair value through profit or loss.

<u>Impairment of financial assets at amortized cost</u>

The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost using the simplified approach. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If, at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve month expected credit losses.

&nbsp;&nbsp;&nbsp;&nbsp;**g)** **Share Capital** 

Common shares are classified as shareholders' equity. Incremental costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of tax, from the proceeds.

The Company may issue units including common shares and warrants. To value these units, the Company uses residual value method. Under this method the Company values the common share, the easier component to value, and assigns the residual value to the warrant.

&nbsp;&nbsp;&nbsp;&nbsp;**h)** **Share-based Payments** 

Share-based payments are arrangements in which the Company receives goods or services in consideration for its own equity instruments granted to non-employees. These are accounted for as equity settled share-based payment transactions and measured at the fair value of goods and services received. If the fair value of the goods or services received cannot be estimated reliably, the share-based payment transaction is measured at the fair value of the equity instruments granted at the date the Company receives the goods or services.

&nbsp;&nbsp;&nbsp;&nbsp;**i)** **Share-based Compensation** 

The Company grants share-based awards in the form of stock options and restricted share units ("RSUs"), which are all considered to be equity-settled awards. The Company determines the fair value of the awards on the date of grant using the Black-Scholes option pricing model for stock options and based on closing price of the shares on grant date for RSUs. This fair value is expensed to the statement of operations using a graded vesting attribution method over the vesting period of the awards, with a corresponding credit to contributed surplus. When the share options or share units are exercised, the applicable amounts of contributed surplus are transferred to share capital.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **MATERIAL ACCOUNTING POLICIES** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;**j)** **Asset Retirement Obligation** 

The Company records the present value of estimated costs of legal and constructive obligations required to restore the site in the period in which the obligation is incurred. The nature of these restoration activities includes dismantling, and removing structures, rehabilitating mines and the tailings dam, dismantling facilities, closure of plant and waste sites and restoration, reclamation and re-vegetation of affected areas.

The obligation for mine closure activities is estimated by the Company using mine closure plans or other similar studies which outline the requirements that will be carried out to meet the obligations. Since the obligations are dependent on the laws and regulations of the countries in which the mines operate, the requirements could change because of amendments in the laws and regulations relating to environmental protection and other legislation affecting resource companies.

As the estimate of the obligations is based on future expectations, several assumptions and judgments are made by management in the determination of closure provisions. The closure provisions are more uncertain the further into the future the mine closure activities are to be carried out.

The present value of decommissioning and site restoration costs are recorded as a non-current liability. The provision is discounted using a real, risk-free pre-tax discount rate. Charges for accretion and restoration expenditures are recorded as operating activities. In subsequent periods, the carrying amount of the liability is accreted by a charge to the statement of operations to reflect the passage of time and the liability is adjusted to reflect any changes in the timing of the underlying future cash flows.

Changes to the obligation resulting from any revisions to the timing or amount of the original estimate of undiscounted cash flows are recognized as an increase or decrease in the decommissioning provision, and a corresponding change in the carrying amount of the related long-lived asset. Where rehabilitation is conducted systematically over the life of the operation, rather than at the time of closure, or provision is made for the estimated outstanding continuous rehabilitation work at each statement of financial position date the cost is charged to the statement of operations.

Costs for restoration of subsequent site damage which is created on an ongoing basis during production are provided for at their net present values and charged against the statement of operations as extraction progresses.

&nbsp;&nbsp;&nbsp;&nbsp;**k)** **Flow-Through Shares**

Current Canadian tax legislation permits mining entities to issue flow-through shares to investors. Flow-through shares are securities issued to investors whereby the deductions for tax purposes related to exploration and evaluation expenditures may be claimed by investors instead of the entity. The issue of flow-through shares is in substance an issue of ordinary shares and the sale of tax deductions. At the time the Company issues flow-through shares, the sale of tax deductions is deferred and presented as other liabilities in the statement of financial position to recognize the obligation to incur and renounce eligible resource exploration and evaluation expenditures. The tax deduction is measured as the difference, if any, between the current market price of the Company's common shares and the issue price of the flow-through shares. Upon incurring eligible resource exploration and evaluation expenditures, the Company recognizes the sale of tax deductions as a flow-through share premium on the statement of operations and reduces the liability.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **MATERIAL ACCOUNTING POLICIES** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;**l)** **Secured Convertible Debentures** 

Convertible debentures are financial instruments which are accounted for separately dependent on the nature of their components: a financial liability and an equity instrument. The identification of such components embedded within a convertible debenture requires significant judgment given that it is based on the interpretation of the substance of the contractual arrangement. Where the conversion option has a fixed conversion rate, the financial liability, which represents the obligation to pay coupon interest on the convertible debentures in the future, is initially measured at its fair value and subsequently measured at amortized cost. The residual is accounted for as an equity instrument at issuance.

&nbsp;&nbsp;&nbsp;&nbsp;**m)** **Income and Loss per Share** 

Income (loss) per share is based on the weighted average number of common shares outstanding for the year.

Diluted income (loss) per common share is calculated by adjusting the weighted average number of common shares outstanding for the effect of conversion of all potentially dilutive share equivalents, such as stock options and warrants, and assumes that the receipt of proceeds upon exercise of the options are used to repurchase common shares at the average market price during the period. The net effect of the shares issued less the shares assumed to be repurchased is added to the basic weighted average shares outstanding. For convertible instruments, the common shares to be included in the diluted per share calculation assumes that the instrument is converted at the beginning of the period (or issue date if later). The profit or loss attributable to common shareholders is adjusted to eliminate related interest costs recognized in profit or loss for the period.

In a period when the Company reports a loss, the effect of potential issuances of shares under options and warrants outstanding would be anti-dilutive and, therefore basic and diluted loss and comprehensive per share are the same.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**3.** **MATERIAL ACCOUNTING POLICIES** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;**n**) **Adoption of New and Revised IFRS and IFRS Not Yet Effective** 

Certain new standards, interpretations and amendments to existing standards have been issued that are mandatory for accounting periods noted below. Some updates that are not applicable or are not consequential to the Company may have been excluded from the list below.

*IFRS 18 Presentation and Disclosure in Financial Statements*

IFRS 18 introduces three sets of new requirements to give investors more transparent and comparable information about companies' financial performance for better investment decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Three defined categories for income and expenses (operating, investing and financing) to improve the structure of the income statement, and require all companies to provide new defined subtotals, including operating profit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Requirement for companies to disclose explanations of management-defined performance measures (MPMs) that are related to the income statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Enhanced guidance on how to organise information and whether to provide it in the primary financial statements or in the notes.

This new standard is effective for reporting periods beginning on or after January 1, 2027. The Company is currently in the process of assessing its impact on the consolidated financial statements.

*Accounting standards adopted in the current year*

*IAS 1 Presentation of Financial Statements*

IAS 1 has been amended to clarify the classification of liabilities as current or non-current based on the contractual arrangements in place at the reporting date. The amendments are effective for the years beginning on or after January 1, 2024. The adoption of this amendment had no material impact on the Company.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**4. AMOUNTS RECEIVABLE**

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2023** |
| Gravel, ash, soil, and other receivables | $354054 | $444531 |
| GST receivable (payable) | 112802 | (16180) |
| Provisional gold sales | 203700 | 138358 |
|  | $**670556** | $**566709** |

---

**5. PROPERTY, PLANT, AND EQUIPMENT**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Land**<br>**(restated -**<br>**see note**<br>**2a)**<br>**$** | <br>**Mill (restated –**<br>**see note 2a)**<br>**$** | <br>**Camp and Site**<br>**Infrastructure**<br>**$** | <br>**Heavy**<br>**Machinery**<br>**and Equipment**<br>**$** | <br>**Computers**<br>**and Office**<br>**Equipment**<br>**$** | <br>**TOTAL**<br>**(restated –**<br>**see note 2a)**<br>**$** |
| **Cost** |  |  |  |  |  |  |
| **Balance at December 31, 2022** | 4180000 | 1841372 | 157585 | 514619 | 38909 | 6732485 |
| Additions |  |  |  | 33000 | 7341 | 40341 |
| **Balance at December 31, 2023** | 4180000 | 1841372 | 157585 | 547619 | 46250 | 6772826 |
| Additions | - | 194505 | - | 258483 | - | 452988 |
| **Balance at December 31, 2024** | 4180000 | 2035877 | 157585 | 806102 | 46250 | 7225814 |
| **Accumulated Depreciation** |  |  |  |  |  |  |
| **Balance at December 31, 2022** |  | 604166 | 81434 | 372434 | 31082 | 1089116 |
| Depreciation for the year | - | 103787 | 26847 | 53446 | 10849 | 194929 |
| **Balance at December 31, 2023** |  | 707953 | 108281 | 425880 | 41931 | 1284045 |
| Depreciation for the year | - | 104454 | 26739 | 72478 | 3686 | 207357 |
| **Balance at December 31, 2024** | - | 812407 | 135020 | 498358 | 45617 | 1491402 |
| **Carrying Amounts** |  |  |  |  |  |  |
| At December 31, 2023 | 4180000 | 1133419 | 49304 | 121739 | 4319 | 5488781 |
| **At December 31, 2024** | **4180000** | **1223470** | **22565** | **307744** | **633** | **5734412** |

---

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**6.** **MILLING – COST OF SALES** 

Cost of sales relate to all costs associated with operating the mill and are expensed as incurred as the Company does not control the goods or services before they are transferred to a customer. Revenue is recognized when the ore processing service is rendered by the Company, accepted by the customer, collection is reasonably assured, and performance obligations are satisfied. As a result, the recognition of milling costs does not necessarily coincide with the recognition of the related revenue and such costs are not matched to specific revenue periods.

---

| | | |
|:---|:---|:---|
|  | **Year** | **Year** |
|  | **Ended December 31,** | **Ended December 31,** |
|  | **2024<br> $** | **2023(see**<br>**note 2a)<br> $** |
| Amortization and depreciation | 203832 | 184280 |
| Power and fuel | 141722 | 321132 |
| Mill supplies and rentals | 415633 | 363089 |
| Mill repairs | 525943 | 696695 |
| Salaries and wages | 967641 | 1559868 |
| Other | 2282 | 11309 |
| **Total milling - cost of sales** | **2257053** | **3136373** |

---

**7.** **MINERAL INTERESTS** 

The Company holds a 100% interest in 30 mineral claims and 1 mineral lease at the Treasure Mountain Property, located near Hope, B.C. The properties are subject to a 2% net smelter royalty.

The Company holds a 100% interest in New Craigmont Property comprising 22 mineral claims and 10 mineral leases located in Lower Nicola, BC. The properties are subject to a 2% net smelter royalty.

The Company recorded an impairment write-down in relation to its Treasure Mountain Property in 2014. The property remains in good standing, and further carrying charges and evaluation costs are being charged to the consolidated statement of operations as an operating expense.

*Dominion Creek Property* 

On May 31, 2021, the Company entered into a Mineral Property Purchase Agreement ("Dominion Purchase Agreemnt") and acquired a 50% interest in 8 mineral claims known as the Dominion Creek Property from High Range Exploration Ltd (**"High Range"**). The Dominion Creek Property is located near Prince George, BC. The Company acquired the 50% by paying $225,000, $75,000 of which was used to commence work on a 10,000-tonne bulk sample permit application. During the year ended December 31, 2022, the Company impaired the Dominion Creek Property by $224,999 to $1 due to the delays in development.

The Company is committed to acquiring the 10,000 tons bulk sample permit. Nicola will, within 30 days of High Range receiving the Permit, commence incremental funding the following costs (collectively

"Initial Costs"):

i) Camp construction costs not to exceed $50,000;

ii) Road construction upgrade costs not to exceed $300,000;

iii) Reclamation bonding costs not to exceed $100,000 (paid); and

iv) The Company also agreed to fund the project up to and including all costs to produce and ship 3,000 tons of ore.

A part of the Dominion Purchase Agreement, the Company entered a mining and profit sharing agreement ("Dominion Milling Agreement"). The Company would receive an even split for all profits after certain costs are reimburse to High Range and Nicola (which includes all of Initial Costs).

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**7.** **MINERAL INTERESTS** – (continued)

The Company's group of claims consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31,**<br>**2024**<br>**$** | **December 31,**<br>**2023**<br>**$** |
| a) | The Treasure Mountain group of claims located in the Similkameen Mining Division of British Columbia | 1 | 1 |
| b) | A Crown Grant mineral claim (Lot 1210) in the Yale Mining Division contiguous to the Treasure Mountain Claims known as the "Eureka" | 1 | 1 |
| c) | The surface rights to Lot 1209 located in the Yale Mining Diversion of British Columbia known as the "Whynot Fraction" | 1 | 1 |
| d) | Acquisition of 50% interest in Dominion Creek Property, located in the Cariboo Mining Diversion of British Columbia | 1 | 1 |
|  |  | **4** | **4** |

---

Exploration costs incurred is as follows:

---

| | | |
|:---|:---|:---|
|  | **Years** | **Years** |
|  | **Ended December 31,** | **Ended December 31,** |
|  | **2024<br> $** | **2023<br> $** |
| **New Craigmont Property** |  |  |
| Assay | 16422 | 43639 |
| Depreciation and amortization | 13360 | 18829 |
| Drilling and mapping | 1343484 | 539879 |
| Field supplies and rentals | 78597 | 17939 |
| First Nations liaison consulting | 17500 | 30000 |
| Geological consulting and technical fees | 561754 | 282099 |
| Tenure lease | 1664 | 8310 |
| Share-based compensation |  | 111251 |
| Exploration tax credits | (273371) |  |
| Other exploration expense | - | 157972 |
| **Total costs incurred during the year** | **1759410** | **1209918** |

---

**8.** **MARKETABLE SECURITIES** 

On January 17, 2024, the Company made a strategic investment of $1,000,000 in Blue Lagoon Resources Inc. ("BLLG") to purchase 7,142,857 of BLLG's common shares. During the year ended December 31, 2024, the Company received proceeds of $27,755 from the disposition of BLLG common shares. The fair value of the BLLG common shares was $1,076,142 as at December 31, 2024, resulting in a $103,897 fair value gain being recognized.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**9.** **RESTRICTED CASH** 

The Company has in place deposits amounting to $1,437,875 at December 31, 2024 (December 31, 2023 - $1,275,875) registered in the name of the British Columbia Ministry of Finance as security for its mining permits and for reclamation clean up at the Treasure Mountain Property, the Merritt Mill and decommissioned tailings, Dominion Creek Project and the New Craigmont Property.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **SECURED CONVERTIBLE DEBENTURE** 

The outstanding principal and interest of the Debentures and Second Tranche Debentures are secured against the assets of Nicola.

***Year ended December 31, 2023***

On January 6, 2023, the Company completed amendments to the $330,000 January 9, 2023 secured convertible debentures that mature on January 9, 2025 and bear interest at a rate of 10% per annum which is payable annually in cash or in common shares at the option of the Company and are convertible into common shares at a conversion price of $0.20 per share.

For accounting purposes, the proceeds of $330,000 have been allocated based on the fair value of the debt. The fair value of the debentures was determined to be $310,126 using a discount rate of 13%. Residual value of $19,873 has been allocated as $14,507 to the equity component net of $5,366 deferred income tax recovery.

On February 14, 2023, the Company issued 40,261 common shares on conversion of $8,000 of convertible debentures issued January 9, 2023 exercised at $0.20. For accounting purposes, the fair value of the Debenture on conversion date of $7,600 and residual equity component of $481 were transferred to share capital.

On March 15, 2023, the Company issued 121,321 common shares on conversion of $20,000 of convertible debentures issued November 21, 2022 exercised at $0.17. For accounting purposes, the fair value of the Debenture on conversion date of $18,692 and residual equity component of $1,980 were transferred to share capital.

On May 18, 2023, May 20, 2020 Debenture holders elected to convert a total of $185,000 at a conversion price of $0.20 and the Company issued 925,000 common shares in accordance with terms of the Debentures. For accounting purposes, the fair value of the Debentures on conversion date of $202,383 and residual equity component of $33,449 were transferred to share capital.

On May 19, 2023, a May 20, 2020 Debenture holder elected to convert a total of $45,000 at a conversion price of $0.20 and was issued 225,000 common shares in accordance with terms of the Debentures. For accounting purposes, the fair value of the Debenture on conversion date of $41,419 and residual equity component of $8,137 were transferred to share capital.

On May 18 and 19, 2023, the Company issued 113,834 common shares at a value of $0.20 per share in settlement of interest of $22,767 of May 20, 2020 Debentures.

On October 23, 2023, a Second Tranche Debenture holder elected to convert a total of $234,776 at a conversion price of $0.17 and was issued 1,357,079 common shares in accordance with terms of the Debentures. For accounting purposes, the fair value of the Debenture on conversion date of $213,860 and residual equity component of $20,916 were transferred to share capital.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**10.** **SECURED CONVERTIBLE DEBENTURE** – (continued)

***Year ended December 31, 2023*** *– (continued)*

On November 21, 2023, a Second Tranche Debenture holder elected to convert a total of $32,710 at a conversion price of $0.17 and was issued 213,529 common shares in accordance with terms of the Debentures. For accounting purposes, the fair value of the Debenture on conversion date of $36,008 and residual equity component of $3,298 were transferred to share capital.

On December 29, 2023, the Company prepaid $1,165,275 of the Second Tranche Debenture. The prepayment premium and interest was $349,583. Concurrently, the Second Tranche Debenture's maturity date was amended to November 22, 2025 while other terms remain the same. For accounting purposes, the Second Tranche Debenture was considered as extinguished and re-issued. The issued debt of $4,131,431 has been bifurcated based on the present value of the liability component and the residual allocated to the equity component. The fair value of the debentures was determined to be $3,894,957 using a discount rate of 13%. Residual value of $236,474 has been allocated as $172,626 to the equity component net of $63,848 deferred income tax recovery.

***Year ended December 31, 2024***

During the year ended December 31, 2024, debenture holders converted $314,262 of the convertible debenture (principal and interest) into common shares (see Note 13(a)) that mature on January 9, 2025.

During the year ended December 31, 2024, the Company's Second Tranche annual interest of $411,583 was due in November 2024. This amount was fully settled in shares subsequent to year end (see note 20(b)).

The outstanding principal and interest of the Debentures and Second Tranche Debentures are secured against the assets of Nicola.

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| Opening | $4236848 | $5668086 |
| Conversion of Convertible Debenture and interest | (314262) | (527346) |
| Less equity component of convertible debenture |  | (256348) |
| Premium and interest on amendment of convertible debenture |  | 349583 |
| Payment – premium and interest |  | (349583) |
| Principal repayment |  | (1165275) |
| Less payment of interest | (33000) | (564671) |
| Less payment of interest in shares |  |  |
| Accrued interest and accretion | 591480 | 1082402 |
|  | $4481066 | $4236848 |
| Current portion | $**4481066** | $**-** |
| Non-current portion | $**-** | $**4236848** |

---

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**11. ASSET RETIREMENT OBLIGATION**

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024<br> $** | **December 31,<br> 2023 (restated<br> – note 2a)<br> $** |
| Opening balance | 14506089 | 10178251 |
| Change in estimate | (745776) | 4007706 |
| Accretion expense | 459231 | 320132 |
| Closing balance | **14219544** | **14506089** |

---

The Company's estimates of future decommissioning and restoration for reclamation and closure costs for its mine and exploration and evaluation assets are based on reclamation standards that meet Canadian regulatory requirements. Elements of uncertainty in estimating these amounts include potential changes in regulatory requirements, reclamation plans and cost estimates, discount rates and timing of expected expenditures.

*Merritt Mill*

The Merritt Mill reclamation costs were adjusted using a long-term inflation rate of 2.31% (2023 –2.37 %) and then discounted using a risk-free rate of 3.33% (2023 – 3.28%).

The Company estimates the undiscounted and uninflated reclamation costs associated with the Merritt Mill to be $15,290,830 (December 31, 2023 - $15,553,542). The Company anticipates it will settle these obligations over 15 years (2023 – 25 years).

*Treasure Mountain*

The Treasure Mountain reclamation costs were adjusted using a long-term inflation rate of 2.88% (2023–2.37%) and then discounted using a risk-free rate of 3.23% (2023 – 0%).

The Company estimates the undiscounted and uninflated reclamation costs associated with Treasure Mountain is $1,073,123 (December 31, 2023 - $505,100). The Company anticipates it will settle these obligations over 8 years (2023 – 5 years).

**12. FINANCE COSTS**

---

| | | |
|:---|:---|:---|
|  | **Year ended** | **Year ended** |
|  | **December 31,** | **December 31,** |
|  | **2024<br> $** | **2023<br> $** |
| Equipment loan |  | 384 |
| Interest and accretion on convertible debentures (Note 10) | 591480 | 1431984 |
| Lease liabilities | 5747 | 3542 |
| Other | (5346) | 10149 |
|  | 591881 | 1446059 |

---

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**13.** **SHARE CAPITAL AND RESERVES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Common Shares**

**Authorized**

The authorized capital stock of the Company is an unlimited number of common shares without par value.

***Issued – year ended December 31, 2024***

On April 12, 2024, the Company completed a flow-through private placement offering, pursuant to which it issued an aggregate of 5,499,994 shares at a price of $0.23 per share for gross proceeds of $1,264,999.

The Company paid an aggregate of $102,146 transaction cost in connection with the private placement.

On December 3, 2024, the Company completed a flow-through private placement offering, pursuant to which it issued an aggregate of 1,641,790 shares at a price of $0.335 per share for gross proceeds of $550,000.

The Company paid an aggregate of $43,249 transaction cost in connection with the private placement, and reclassified $106,716 of flow through liability out of equity.

During the year ended December 31, 2024, the Company converted $314,262 of convertible debenture into 1,594,314 shares (note 10).

***Issued – year ended December 31, 2023***

On January 13, 2023, the Company issued 8,000,000 common shares at a value of $0.25 per share for gross proceeds of $2,000,000.

On February 14, 2023, the Company issued 40,262 common shares on conversion of $8,000 of convertible debentures issued January 9, 2023, exercised at $0.20. For accounting purposes, the fair value of the Debenture on conversion date of $7,600 and residual equity component of $482 were transferred to share capital (note 10).

On March 15, 2023, the Company issued 121,321 common shares on conversion of $20,000 of convertible debentures issued November 21, 2022, exercised at $0.17. For accounting purposes, the fair value of the Debenture on conversion date of $18,692 and residual equity component of $1,980 were transferred to share capital (note 10).

On April 19, 2023, the Company issued 500,000 common shares at a value of $0.16 per share in connection with the exercise of 500,000 stock options and $60,484 was transferred from contributed surplus to share capital.

On May 18, 2023, May 20, 2020 Debenture holders elected to convert a total of $185,000 at a conversion price of $0.20 and the Company issued 925,000 common shares in accordance with terms of the Debentures. For accounting purposes, the fair value of the Debentures on conversion date of $202,383 and residual equity component of $33,449 were transferred to share capital (Note 10).

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**13.** **SHARE CAPITAL AND RESERVES** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Common Shares** – (continued)

***Issued – year ended December 31, 2023*** *– (continued)*

On May 19, 2023, a May 20, 2020 Debenture holder elected to convert a total of $45,000 at a conversion price of $0.20 and was issued 225,000 common shares in accordance with terms of the Debentures. For accounting purposes, the fair value of the Debenture on conversion date of $41,419 and residual equity component of $8,137 were transferred to share capital.

On May 18 and 19, 2023, the Company issued 113,834 common shares at a value of $0.20 per share in settlement of interest of $22,767 of May 20, 2020 Debentures (note 10).

On October 23, 2023, a Second Tranche Debenture holder elected to convert a total of $234,776 at a conversion price of $0.17 and was issued 1,357,079 common shares in accordance with terms of the Debentures. For accounting purposes, the fair value of the Debenture on conversion date of $213,860 and residual equity component of $20,916 were transferred to share capital.

On November 21, 2023, a Second Tranche Debenture holder elected to convert a total of $32,710 at a conversion price of $0.17 and was issued 213,529 common shares in accordance with terms of the Debentures. For accounting purposes, the fair value of the Debenture on conversion date of $36,008 and residual equity component of $3,298 were transferred to share capital.

On November 28, 2023, the Company issued 650,000 common shares at a value of $0.20 per share in connection with the exercise of 650,000 stock options and $105,468 was transferred from contributed surplus to share capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) Flow-Through Premium Liability:**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| Flow-through premium liability | $- | $29416 |
| Flow-through premium recognized | 106716 |  |
| Settlement of flow-through premium liability pursuant to |  |  |
| qualified expenditures | (4192) | (29416) |
| Closing balance | $**102524** | $**-** |

---

The remaining qualifying expenditures to incur was $528,395 as at December 31, 2024 (2023 - $Nil).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c) Share Purchase Warrants**

As of December 31, 2024 and 2023, the Company had no outstanding warrants.

**14. SHARE-BASED PAYMENT**

**2022 Equity Incentive Plan**

Until May 14, 2022, the Company had a "rolling" stock option plan (the "Stock Option Plan") whereby the Company was authorized to grant stock options ("Options") equal to up to 10% of the number of issued and outstanding common shares.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**14. SHARE-BASED PAYMENT** – (continued)

**2022 Equity Incentive Plan** – (continued)

Effective May 14, 2022, the Company adopted an equity incentive plan (the "Equity Incentive Plan") that replaced the Stock Option Plan. The Equity Incentive Plan has two components as follows: (i) a rolling stock option plan for the grant of Options equal to up to 10% of the number of issued and outstanding common shares, and (ii) a fixed plan for the grant of performance equity securities including Deferred

Share Units ("DSUs"), Restricted Share Units ("RSUs"), and Performance Share Units ("PSUs") ("DSUs" and, collectively with the RSUs and PSUs, the "Performance-Based Awards").

Pursuant to the Equity Incentive Plan, the Company is authorized to grant Options to executive officers, directors, employees, and consultants. The Board shall determine any vesting terms applicable to the grants.

Pursuant to the Equity Incentive Plan, the Company is authorized to grant Performance-Based Awards to executive officers, directors, employees, and consultants with the maximum aggregate number of common shares that may be issuable for Performance Based Awards not to exceed 16,991,819 (2023 - 16,118,209) common shares. The Board shall determine any vesting terms applicable to the grants.

During the year ended December 31, 2024, the Company issued 3,500,000 (2023 – 2,500,000) stock options and to consultants, employees and directors of the Company.

The stock options were valued using Black-Scholes valuation model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| Fair value of common shares at grant | $0.27 | $0.36 |
| Exercise price | $0.27 | $0.36 |
| Expected life | 5 years | 5 years |
| Volatility | 107% | 101% |
| Dividend rate | 0% | 0% |
| Risk free rate | 3.10% | 3.87% |
| Fair value of stock option | $0.21 | $0.28 |

---

Volatility was determined based on the historical trading prices of the Company.

The following is a summary of changes in stock options:

---

| | | |
|:---|:---|:---|
|  |<br>**Number of**<br>**Options** | **Weighted Average**<br>**Exercise Price**<br>**$** |
| Balance at December 31, 2022 | 6200000 | 0.22 |
| Exercised options | (1150000) | 0.18 |
| Issued options | 2500000 | 0.35 |
| Cancelled options | (75000) | 0.16 |
| **Balance at December 31, 2023** | 7475000 | 0.26 |
| Issued options | 3500000 | 0.27 |
| Cancelled options | (575000) | 0.25 |
| **Balance at December 31, 2024** | 10400000 | 0.27 |

---

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**14. SHARE-BASED PAYMENT** – (continued)

As at December 31, 2024, the following stock options were outstanding and exercisable:

---

| | | | | |
|:---|:---|:---|:---|:---|
|<br>**Number**<br>**Outstanding** |<br>**Number**<br>**Exercisable** |<br>**Exercise**<br>**Price** | **Weighted**<br>**Average**<br>**Contractual**<br>**Life (Years)** | <br>**Expiry Date** |
| 375000 | 375000 | $0.24 | 0.05 | January 20, 2025 |
| 1625000 | 1625000 | $0.30 | 1.02 | January 8, 2026 |
| 600000 | 600000 | $0.22 | 1.76 | October 5, 2026 |
| 1875000 | 1875000 | $0.16 | 2.76 | October 5, 2027 |
| 100000 | 100000 | $0.30 | 3.34 | May 2, 2028 |
| 1925000 | 1925000 | $0.36 | 3.57 | July 26, 2028 |
| 200000 | 200000 | $0.30 | 3.59 | August 3, 2028 |
| 200000 | 200000 | $0.40 | 3.77 | October 3, 2028 |
| 3000000 | 3000000 | $0.27 | 4.30 | April 18, 2029 |
| 500000 | 500000 | $0.30 | 4.97 | December 18, 2029 |
| 10400000 | 10400000 |  |  |  |

---

As at December 31, 2023, the following stock options were outstanding and exercisable:

---

| | | | | |
|:---|:---|:---|:---|:---|
|<br>**Number**<br>**Outstanding** |<br>**Number**<br>**Exercisable** |<br>**Exercise**<br>**Price** | **Weighted**<br>**Average**<br>**Contractual**<br>**Life (Years)** | <br>**Expiry Date** |
| 425000 | 425000 | $0.24 | 1.06 | January 20, 2025 |
| 1825000 | 1825000 | $0.30 | 2.02 | January 8, 2026 |
| 725000 | 725000 | $0.22 | 2.76 | October 5, 2026 |
| 2000000 | 2000000 | $0.16 | 3.76 | October 5, 2027 |
| 100000 | 50000 | $0.30 | 4.34 | May 2, 2028 |
| 2000000 | 2000000 | $0.36 | 4.57 | July 26, 2028 |
| 200000 | 200000 | $0.30 | 4.59 | August 3, 2028 |
| 200000 | 200000 | $0.40 | 4.76 | October 3, 2028 |
| 7475000 | 7425000 |  |  |  |

---

*Restricted Shares Unit*

On December 18, 2024, the Company issued 1,000,000 Restricted Share Units ("RSUs") with a fair value of $0.30 per RSU and a vesting date of December 18, 2025.

**15. MILLING REVENUE AND OTHER INCOME**

Major customers are defined as customers that each individually account for greater than 10% of the Company's revenues. For the years ended December 31, 2024 and December 31, 2023, one customer, which is controlled by a director of the Company, accounted for 100% of the Company's milling revenue.

During the year ended December 31, 2024, the Company received $1,968,941 (2023 - $8,145,935) of other income related to royalty on gravel pit, space rental, and materials disposal.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**16. RELATED PARTY TRANSACTIONS**

Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly, and consist of its directors, the Chief Executive Officer, and the Chief Financial Officer.

The following is a summary of the Company's key management compensation:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024<br> $** | **2023<br> $** |
| Consulting fees | 413250 | 540500 |
| Salaries and benefits | 37792 | 157000 |
| Share-based compensation | 477460 | 379604 |
| Total | 928502 | 1077104 |

---

As at December 31, 2024, included within accounts payable and accrued liabilities is $18,310 owed to a related party of the Company (December 31, 2023 - $Nil). See also note 15 for other related party transactions.

**17.** **FINANCIAL and CAPITAL RISK MANAGEMENT** 

*Fair Value* 

The carrying value of cash and cash equivalents, amounts receivables, accounts payable and accrued liabilities, secured convertible debentures and lease liabilities approximate their fair value because of the short-term nature of these instruments. The carrying value of restricted cash approximates fair value due to the nature of this asset.

The Company records its financial instruments, other than marketable securities which are at fair value through profit or loss, at amortized cost.

The financial instruments have been characterized on a fair value hierarchy based on whether the inputs to those valuation techniques are observable (inputs reflect market data obtained from independent sources) or unobservable (inputs reflect the Company's market assumptions).

The three levels of fair value estimation are:

Level 1 – quoted prices in active markets for identical instruments.

Level 2 – quoted prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3 – valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Marketable securities are measured using level 1 inputs.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**17.** **FINANCIAL and CAPITAL RISK MANAGEMENT** – (continued)

*Risk Exposure and Management* 

<u>Overview</u> 

The Company has exposure to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives. The principal financial risks to which the Company is exposed are credit risk, interest rate risk, liquidity risk, commodity and equity price risk, and currency risk.

<u>Credit Risk</u> 

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its obligations. As at December 31, 2024, the Company's maximum exposure to credit risk is the carrying value of its cash and cash equivalent, restricted cash, and amounts receivables in the amount of $3,570,649 (December 31, 2023 - $6,598,702).

All off the Company's cash is held with a major financial institution in Canada and management believes the exposure to credit risk with respect to such institutions is not significant. Those financial assets that potentially subject the Company to credit risk are primarily receivables. The Company considers the risk of material loss to be significantly mitigated due to the financial strength of the parties from whom the receivables are due, including government organizations.

<u>Interest Rate Risk</u> 

The Company's financial assets exposed to interest rate risk consist of cash and short-term investments balances. The interest earned on the cash balances approximates fair value rates, and the Company is not at a significant risk to fluctuating rates.

The Company's secured convertible debenture which accrues interest is at a fixed rate of 10%, and does not expose the Company to interest rate risk.

<u>Liquidity Risk</u>

Liquidity risk is the risk that the Company will not be able to meet its obligations associated with financial liabilities. The Company has a planning and budgeting process in place by which it projects the funds required to support its operations.

Management anticipates that it may incur expenditures towards exploring its mineral interests and other Company assets. However, there is no assurance that the Company will operate profitably or will generate positive cash flow in the future. The Company has limited working capital, no history of profitable operations and no assurance that additional funding will be available to it for further exploration and development of its mineral interests. The Company may also need further financing if it decides to obtain additional mineral properties. As such, the Company is subject to many risks common to exploration enterprises, including undercapitalization, cash shortages and limitations with respect to personnel, financial, access to other resources, and lack of revenues. Although the Company has been successful in the past in obtaining financing through credit facilities or the sale of equity securities, there can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Such means of financing typically result in dilution of the positions of existing shareholders, either directly or indirectly.

Failure to obtain additional financing could result in the delay or indefinite postponement of further exploration.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**17. FINANCIAL and CAPITAL RISK MANAGEMENT** – (continued)

<u>Liquidity Risk</u> – (continued)

---

| | | | |
|:---|:---|:---|:---|
| December 31, 2024 | Less than 12 months<br> ($) | One to five years ($) | Total ($) |
| Accounts payable and accrued liabilities | 1616118 |  | 1616118 |
| Lease liabilities | 35543 | 40189 | 75732 |
| Secured convertible debenture | 4481066 | - | 4481066 |
| Total | 6132727 | 40189 | 6172916 |

---

---

| | | | |
|:---|:---|:---|:---|
| December 31, 2023 | Less than 12 months<br> ($) | One to five years ($) | Total ($) |
| Accounts payable and accrued liabilities | 682205 |  | 682205 |
| Lease liabilities | 17243 |  | 17243 |
| Secured convertible debenture | - | 4236848 | 4236848 |
| Total | 699448 | 4236848 | 4936296 |

---

<u>Foreign Exchange Rate Risk</u>

The functional currency of the Company is the Canadian dollar. As at December 31, 2024 and 2023, the Company has not entered into contracts to manage foreign exchange risk.

<u>Commodity and Equity Price Risk</u>

The ability of the Company to explore its exploration assets, continue milling operations, and the future profitability of the Company are directly related to the market price of copper, gold, silver, and other precious metals. Equity price risk is defined as the potential adverse impact on the Company's performance to movements in individual equity prices or general movements in the level of the stock market.

<u>Capital Management</u>

The Company considers capital to be the elements of shareholders' equity (deficit). The Company's primary objectives in capital management are to safeguard the Company's ability to continue as a going concern to provide returns for shareholders and to maintain sufficient funds to finance the exploration and development of its mineral property interests and Merritt Mill operations. The Company manages its capital structure to maximize its financial flexibility by adjusting to changes in economic conditions, and the risk characteristics of the underlying assets and business opportunities. The Company does not presently utilize any quantitative measures to monitor its capital and is not subject to externally imposed capital requirements. There have been no changes to the management of capital during the current fiscal year.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**18.** **INCOME TAXES** 

A reconciliation of income taxes at statutory rates with the reported taxes is as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023 (Restated**<br>**– Note 2a)** |
| Loss before income taxes | $(5230946) | $(3395062) |
| Expected income tax (recovery) | (1412000) | (917000) |
| Other |  | (89214) |
| Items not deductible for income tax purposes | 191000 | 199000 |
| Impact of flow through shares | 377000 | 145000 |
| Share issue costs | (39000) | (3000) |
| Adjustment to prior years provision versus statutory tax |  |  |
| returns and expiry of non-capital losses |  | 115000 |
| Change in unrecognized deductible temporary differences | 883000 | 481000 |
| Total income tax expense (recovery) | $**-** | $(69214) |

---

The following is the analysis of recognized deferred tax assets and liabilities:

---

| | | |
|:---|:---|:---|
| **Year ended December 31,** | **2024** | **2023** |
| Deferred tax liabilities |  |  |
| Marketable securities | $**(14000)** | $**-** |
| Debt with accretion | **-** | **(73000)** |
| Deferred tax assets |  |  |
| Non-capital losses | **14000** | **73000** |
| Net deferred tax assets (liabilities) | $**-** | $**-** |

---

The significant components of the Company's temporary differences, unused tax credits and unused tax losses that have not been included on the consolidated statement of financial position are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **Expiry Date**<br>**Range** | **2023 (Restated**<br>**– Note 2a)** |
| Exploration and evaluation assets | $2419000 | No expiry date | $2122000 |
| Investment tax credit | $441000 | 2030 to 2032 | $441000 |
| Property, plant, and equipment | $16220000 | No expiry date | $19820000 |
| Share issue costs | $177000 | 2025 to 2028 | $65000 |
| Debt with accretion | $320000 | No expiry date | $- |
| Asset retirement obligation | $14220000 | No expiry date | $14506000 |
| Non-capital losses available for future periods | $43005000 | 2026 to 2044 | $40555000 |

---

Tax attributes are subject to review, and potential adjustment, by tax authorities.

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**19.** **CHANGES IN LIABILITIES FROM FINANCING ACTIVITIES** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **January 1, <br> 2023** | **Non–cash changes** | **Non–cash changes** | **December 31,<br> 2023** |
|  | | **Amendment** | **Interest<br> accretion/accruals** | |
|  | **$** | **$** | **$** | **$** |
| Secured convertible debenture | 5668086) | 349583) | 1082402 | 4236848 |
| Lease liabilities | 37011 | - | 3582 | 16353 |
| **Total** | **5705097** | **349583** | **1085984** | **4253201** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **January 1,<br> 2024** | **Acquisition** | **Non–cash <br> changes** | **December 31,<br> 2024** |
|  | | | **Interest<br> accretion/accruals** | |
|  | **$** | **$** | **$** | **$** |
| Secured convertible debenture | 4236848 | -) | 277218 | 4481066 |
| Lease liabilities | 16353 | 64476 | 5747 | 54601 |
| **Total** | **4253201** | **64476** | **282965** | **4535667** |

---

**20.** **SUBSEQUENT EVENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;a) On March 12, 2025, the Company completed a non-brokered private placement issuing 4,038,955 Units ("Unit") at $0.28
per Unit, for an aggregate gross proceeds of $1,130,907. The Company paid $98,437 of finder's fees, resulting in net proceeds of
$1,032,470. Each Unit consists of one common share and one-half of one share purchase warrant ("Warrant"), with each warrant
entitling the holder thereof to purchase one additional Share (each, a "Warrant Share") of the Company at a price of $0.40
per Warrant Share for a period of three years from the closing of the Offering. If during the exercise period of the Warrants, but after
the resale restrictions on the Shares have expired, the Shares trade on the Exchange (or such other exchange on which the Shares may be
traded at such time) at a closing price of $0.60 or greater per Share for a period of ten (10) consecutive trading days, the Company may
accelerate the expiry of the Warrants by giving notice to the holders thereof (by disseminating a press release advising of the acceleration
of the expiry date of the Warrants) and, in such case, the Warrants will expire on the thirtieth (30th) day after the date of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;b) On July 1, 2025, the Company granted 400,000 stock options with an exercise price
of $0.495, expiring in five years.

&nbsp;&nbsp;&nbsp;&nbsp;c) On July 17, 2025, the Company closed a non-brokered private placement issuing an
aggregate of 4,350,000 units at a price of $0.50 per unit for gross proceeds of $2,175,000. Each unit consists of one flow-through common
share and one-half of one non-flow-through common share purchase warrant. Each warrant is exercisable at a price of $0.65 and expires
on July 17, 2027. Total share issuance cost was $153,822.

&nbsp;&nbsp;&nbsp;&nbsp;d) On July 21, 2025, the Company elected to accelerate the expiry of outstanding common
share purchase warrants of the Company originally issued under financings completed on March 12, 2025, exercisable at $0.40 per common
share (collectively, the "Accelerated Warrants").

**NICOLA MINING INC.**

**Notes to the Amended Consolidated Financial Statements**

**(Expressed in Canadian dollars)**

**For the years ended December 31, 2024 and 2023**

**20.** **SUBSEQUENT EVENTS** – (continued)

&nbsp;&nbsp;&nbsp;&nbsp;e) On August 21, 2025, a total of 2,019,477 Accelerated Warrants were exercised at $0.40 per common share
for gross proceeds of approximately $807,791.

&nbsp;&nbsp;&nbsp;&nbsp;f) On December 3, 2025, the Company granted 2,850,000 stock options with an exercise price of $1.00, expiring
in five years, and 1,015,000 restricted share units vesting on January 1, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;g) On December 31, 2025, the Company issued 1,000,000 common shares to settle the RSUs vested on December
18, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;h) The Company issued 3,027,500 common shares due to stock option exercised. Total proceeds received was
$833,650.

&nbsp;&nbsp;&nbsp;&nbsp;i) Subsequent to the year end, the Company received a $500,000 USD loan from a company controlled by a director
bearing interest at a rate of 3M LIBOR + 6.5% until repaid.

&nbsp;&nbsp;&nbsp;&nbsp;j) Subsequent to the year end, the Company issued a total of 26,335,252 common shares upon conversion of
all of its remaining convertible debentures and related interest.

&nbsp;&nbsp;&nbsp;&nbsp;k) Subsequent to the year end, 500,000 stock options were forfeited or cancelled.

## Exhibit 4.4

**Exhibit 4.4**

Year ended December 31, 2024

<br> **Amended Management's Discussion and Analysis**<br>**For the year ended December 31, 2024**<br> (Expressed in Canadian dollars, unless otherwise noted)<br>

January 23, 2026

*The following amended management's discussion and analysis ("MD&A") was prepared as of date of the report per above and is management's assessment of the operating results and financial condition of Nicola Mining Inc. ("Nicola" or the "Company") together with its subsidiary. For further information on the Company, reference should be made to its public filings on SEDAR+ at <u>www.sedarplus.ca</u>. Information is also available on the Company's website at <u>www.nicolamining.com</u>. This amended Management's Discussion and Analysis ("MD&A") should be read in conjunction with the audited amended consolidated financial statements for the year ended December 31, 2024, and related notes thereto which have been prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). This amended MD&A has been updated to reflect events occurring up to the date of approval of this MD&A. The MD&A contains certain forward-looking statements, please review the disclaimers that are provided on the last page of the report.*

**OVERVIEW**

Nicola is a junior exploration and custom milling company that is engaged in the business of identification, acquisition, and exploration of mineral property interests together with custom milling partnerships at its Merritt Mill.

The Company's common stock is quoted on the TSX Venture Exchange (the "Exchange") under the symbol "NIM". On November 3, 2021, the Company obtained Depository Trust Company eligibility in United States, shares are quoted on OTCQB operated by the OTC Markets Group Inc. under the ticker "HUSIF".

**FISCAL YEAR DECEMBER 31, 2024 HIGHLIGHTS**

On April 12, 2024, the Company completed a flow-through private placement offering (the "Offering"), pursuant to which it sold an aggregate of 5,499,994 shares (each, a "Share") at a price of $0.23 per Share for gross proceeds of $1,264,999.

On December 3, 2024, the Company completed a flow-through private placement offering, pursuant to which it issued an aggregate of 1,641,790 shares at a price of $0.335 per share for gross proceeds of $550,000.

**TREASURE MOUNTAIN PROJECT**

*Overview*

Nicola's Treasure Mountain Project is located 29 kilometres northeast of Hope, British Columbia, approximately 3 hours from Vancouver, British Columbia. In May 2012, the Company received a mining lease covering 335 ha of which 248 ha are active workings. The Company's mineral claim holdings consist of 31 continuous mineral claims covering an area of approximately 2,200 ha, one mining lease covering 335 ha at the Treasure Mountain Project and a Mines Act (British Columbia) (the "Mines Act") permit for the Treasure Mountain Project for the removal of 60,000 tonnes per year of silver/lead/zinc mill feed from the underground mine and the transfer of the mill feed offsite for processing. The Treasure Mountain Project has been in care and maintenance since July 26, 2013. A resources update was prepared in 2009 and an updated Technical Report was completed in 2012 in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). From 2012 to 2019, no subsequent mining activity or exploration was completed on the project. To date, the majority of the Company's Treasure Mountain Project mineral resources have been classified as Inferred according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014), whereby the economic viability of such resources cannot be determined.

Year ended – December 31, 2024 Page 1

Year ended December 31, 2024

On September 8, 2020, the Company announced the results of seven grab samples collected during Phase One of the 2020 Program. Highlights of grab samples from an exposed vein contained up to 1300 g/t Ag and 2.59 g/t Au and 1.6% Cu, 27.4% Pb and 27.2% Zn.

On October 5, 2020, the Company announced assay results from the 304 soil samples collected during Phase One of the 2020 Program and that it had completed the second phase the of 2020 Program comprised of an additional 168 soil samples. Phase One sample highlights included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Fifty
 (50) soil samples were anomalous in Ag (ranging from 1000-20,080 ppb),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Two
 (2) were > 10,000 ppb Ag (12,140 and 20,080 ppb),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Eighty-three
 (83) were anomalous in Zn with values up to 1,005 ppm, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Thirty-two
 (32) samples were anomalous in Pb with values up to 710 ppm.

On November 9, 2020, the Company announced assay results from 14 portable drill holes. The drilling was completed at five locations along the approximately 1.2 km potential mineralized trend identified during Phase One of the 2020 Program.

On December 22, 2020, the Company announced assay results from 167 of the 168 soil samples collected during Phase Two of the 2020 Program. Highlights included six samples anomalous in silver ranging from 1000-3670 ppb.

On January 20, 2022, the Company announced a Light Detection and Ranging (LiDAR) survey was completed by Eagle Mapping Ltd. during the summer of 2021 over an approximate area of 22 km. The Company is in the process of applying for a Multi-Year-Area-Based ("MYAB") Exploration Permit for the Treasure Mountain Project, which includes IP Survey and diamond drilling targets. The highest priority target is the MB Zone yet to be drill tested MB Zone located approximately 1.5 km from the underground mine-workings.

**Outlook:**

The Company believes that Treasure Mountains upside potential is not associated with the developed mine, but in its highest priority target, the MB Zone. While 2025 will focus on exploration at New Craigmont, the Company has applied for a multi-year area-based permit to the Ministry of Energy, Mines and Low Carbon Innovation, which would authorize it to conduct exploration activities for up to 5 years. Exploration will commence with the Company developing an IP Survey at the MB Zone in 2025.

**NEW CRAIGMONT PROJECT**

*Overview*

The Company's claim holdings at the New Craigmont Project consist of 22 contiguous mineral claims covering approximately 10,913 hectares, and 10 mineral leases covering approximately 347 hectares known as the New Craigmont Project located near Merritt, British Columbia, approximately 3 hours from Vancouver, British Columbia.

The New Craigmont Project (the "Project") does not conform to a "typical" exploration pipeline. The Project is a permitted historic mine site with active permits under a current mine permit M-68, which covers an area approximately 1400 ha. In addition, extensive work done on the mine (c.1958-c.1982) was focused primarily on ore definition, development, and extraction of mineral inventory, known at the time. This work resulted in a cumulative production of 36.75 million tonnes of ore grading 1.28% copper ("Cu"). However, the Project had limited exploration beyond its historic operations.

Year ended – December 31, 2024 Page 2

Year ended December 31, 2024

The geological model adopted by Craigmont Mines Ltd. exploration team was one in which Cu and iron ("Fe") were derived from country rock by fluids heated by intrusion of the Guichon Creek Batholith. Mineralization occurred preferentially along calcareous rocks resulting in a strata-bound skarn deposit.

Field relationships from mapping completed since 2015 and drilling in 2016 demonstrate that the Guichon Creek Batholith is cut by veins containing propylitic alteration mineral assemblages and copper mineralization, indicating that hydrothermal events occurred after emplacement of the Guichon Creek batholith. It is possible and more likely hydrothermal alteration and associated Cu mineralization was caused by magmatic-hydrothermal fluids. In the last decade, through increased demand for copper and diminishing copper grades, academic research primarily focussed on low-grade, large tonnage porphyry systems. This research suggests genetic links exist between magmatic-derived hydrothermal fluids and porphyry, skarn, and epithermal deposit formation. The geological team at Nicola Mining realise that the broader alteration system at the New Craigmont Project was not fully explored. Re-evaluation of this alteration system is believed to aid in efficient and effective exploration of the land package, which may have been historically overlooked.

*Objectives and Strategy*

Nicola's primary objective at the New Craigmont Project is to prove the historic un-exploited mineral inventory using modern exploration techniques and targeted definition drilling on in-situ bodies. The Company also plans to re-evaluate the potential from material not processed at the time of mining and unlock its value with increasing commodity prices from global demand. To this effect, target development and confirmation drilling aims to develop targets deemed to have the potential for significant mineralization on the project land package. A mineral resource estimate was completed in 2020 in accordance with NI 43-101 on the Southern Mining Terraces and 3060 Portal Dump areas.

On August 27, 2021, the Company announced completion of the 2021 Phase I Program consisting of five (5) diamond drill holes for a total of 1459.65 meters. The first three (3) holes (CC-21-76, CC-21-77, and CC-21-78) were drilled in a largely untested area between the historic pit and diamond drill holes to the west. Holes CC-21-76 and CC-21-77 were drilled into a large magnetic anomaly west of the pit, which intersected the Border Phase (diorite0 of the Guichon Creek Batholith and contained locally abundant disseminated magnetite with disseminated pyrite and locally intense epidote and chlorite alteration. The third hole (CC-21-78) was drilled to the south, outside and along, the periphery of the magnetic anomaly where it intersected Nicola Group sedimentary rocks that hosted mineralized skarn intervals containing massive chalcopyrite, magnetite, and pyrite mineralization within strongly altered calcareous sediments. The last two (2) holes (CC-21-79, and CC-21-80) were drilled along the NE pit margin into a steeply plunging magnetic anomaly and intersected strongly chlorite altered diorite on the northeast pit margin that contained massive magnetite hosted in fractures and present with clots and disseminated chalcopyrite.

Highlights from 2021 Phase I Program drilling included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· CC-21-78
 intersected 11.5 m grading 2.19% Cu within 71.5 m grading 0.38% Cu demonstrating the mineralized
 potential in a largely untested area between the Craigmont pit and previous intercepts (DDH-THU-002:
 85.6 m at 1.11% Cu and NC-2018-03: 100.6m grading 1.33% Cu) approximately 800 m to the west
 of historic mining operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· CC-21-79
 intersected 71.35 m grading 0.29% Cu within 130.35 m grading 0.21% Cu.

On January 20, 2022, the Company announced the completion of a small soil sampling program conducted in Fall of 2021 at the Titan Queen and Promontory Hills zones. The program was designed to test the limits of anomalous copper in soils from a 2019 soil survey. A total of 110 original soil samples were taken; 18 of these samples were anomalous in copper (>100ppm Cu). One of the samples contained 1010 ppm Cu and two others contained values of 656 ppm and 686 ppm Cu and are considered highly anomalous. These anomalies outlined in the 2021 survey expands anomalous copper at the Titan Queen zone in an east-west trend and warrants additional work. Relogging of diamond drill core began in 2021 and continued throughout the winter of 2022/2023 with emphasis on alteration mineralogy and rock sequences.

Year ended – December 31, 2024 Page 3

Year ended December 31, 2024

On January 20, 2022, the Company announced the completion of a small soil sampling program conducted in Fall of 2021 at the Titan Queen and Promontory Hills zones. The program was designed to test the limits of anomalous copper in soils from a 2019 soil survey. A total of 110 original soil samples were taken; 18 of these samples were anomalous in copper (>100 ppm Cu). One of the samples contained 1010 ppm Cu and two others contained values of 656 ppm and 686 ppm Cu and are considered highly anomalous. These anomalies outlined in the 2021 survey expands anomalous copper at the Titan Queen zone in an east-west trend and warrants additional work. Relogging of diamond drill core began in 2021 and continued throughout the winter of 2022/2023 with emphasis on alteration mineralogy and rock sequences.

On March 14, 2022, the Company announced it had entered into a Rock and Gravel Extraction and Preferential Engagement Agreement with an affiliate company of the Lower Nicola Indian Band to provide rock and gravel for BC infrastructure projects. On February 4, 2022, the Company submitted a Notice of Departure ("NoD"): Extraction and Processing of Rock at New Craigmont Project to the Ministry of Energy, Mines and Low Carbon Innovation ("EMLI") for its M-68 permit. The Company on May 2, 2022, announced receipt of NoD from EMLI on the Company's M-68 Permit to allow for the extraction of up to 3.0 million tonnes of inert available rock material that may be used for the infrastructure reconstruction efforts at a production rate of approximately 1500 tonnes per day. As part of the permitting process the Company engaged in First Nations consultations and received approval from the Ministry of Forests ("FLNR"). On April 13, 2022, the Company received Licence Number 349184 from FLNR, which allows the site to produce and remove riprap and associated products from its rock quarry for five years. On June 1, 2022, the Company announced recommenced operations at the gravel pit by its partner Lower Nicola Site Services Ltd.

On June 1, 2022, the Company announced that it had commenced its 998-line kilometer Z-Tipper Axis Electromagnetic survey ("ZTEM Survey") across the entirety of New Craigmont. The Company is currently generating a robust database and model of over 4100 historic drill holes. The database and model provide insight and will improve the understanding of mineralized zones that are known to remain in-situ, including Mineralized Zone 3. On July 12, 2022, the Company announced receipt of preliminary results from the completed ZTEM survey. Targets of interest and key structures have been identified, via preliminary data and maps.

On September 13, 2022, the Company announced the completion of a district-wide airborne geophysical survey and related inversion modelling results carried out across its wholly owned New Craigmont Property. The ZTEM survey has imaged the electrical conductivity signature of known mineral occurrences ("MINEFILEs") in the Province of British Columbia. The ZTEM survery defined similar comparable signatures in other locations within the district of the Property. The Company is continuing data compilation and interpretation to better refine targets for a drilling exploration program.

On November 17, 2022, the Company announced it had completed its flow-through private placement financing to which raised gross proceeds of $574,699 for exploration in 2023.

On November 21, 2022, the Company announced that it had received a multi-year area-based exploration permit ("MYAB Permit") on November 3, 2022. The MYAB Permit allows the Company to conduct extensive copper exploration including geophysical survey with exposed electrodes, 190 diamond drill holes and 12km of trenching/bulk sampling through to November 2, 2027.

On February 22, 2023, the Company announced soil geochemistry results collected from the WP Zone with Cu mineralization open in all directions and reported the highest individual soil assay of 930 ppm Cu, 0.7 ppm Ag, 288 ppm Zn, and 20.4 ppm Pb.

On May 2, 2023, the Company announced that it has finalized its 2023 diamond drilling exploration program (the "2023 Program"). The 2023 Program was comprised of 6 drill holes totalling 2,684 metres. The first four drill holes intersected Nicola Volcanic and Sedimentary rocks and focused on exploring the potential extension of the Craigmont skarn ore body. The final two drill holes were drilled east and north of the historic Craigmont mine within the Guichon batholith and focused on potassic and propylitic alteration, which are considered to be indicative of nearby porphyry copper system in New Craigmont.

Year ended – December 31, 2024 Page 4

Year ended December 31, 2024

On June 6, 2023, the Company announced that it has commenced the 2023 Program and on July 5, 2023, the Company announced that the first four holes have been completed located approximately 500 metres east of the historic pit and is in the process of preparing to ship the core to the lab for analysis.

On September 6, 2023, the Company announced the signing of a non-binding letter of intent with Nittetsu Mining Co. Ltd ("Nittetsu") whereby the Company agreed to establish a joint venture entity with Nittetsu in respect of the Company's New Craigmont Project. As of November 14, 2023, the Company and Nitettsu have decided to suspend this transaction.

**Outlook:**

The Company commenced an IP Survey in May of 2024 to further define drill targets in the WP, Marb and Cas Zones, which were subsequently drilled and results published. The company also drilled a step out hole at the Embayment Zone, which expanded the known mineralized area. Given the successful results of the 2024 drill program, the company has finalized targets in the same areas for drilling exploration activities in 2025.

**DOMINION CREEK GOLD PROPERTY PROJECT**

*Overview*

On June 15, 2021, the Company announced the acquisition of a 50% interest in the Dominion Creek Property, located 43 km northeast of the Town of Wells and about 110 kilometers east-southeast of Prince George from High Range Exploration Ltd ("High Range"). Pursuant to the terms of a Mineral Property Purchase Agreement (the "Mineral Property Purchase Agreement") between the Company and High Range, the Company paid $150,000 for the 50% acquisition of the Dominion Creek Property consisting of 8 continuous mineral claims totalling 1,040 hectares plus $75,000 for High Range to commence work and to submit a 10,000-tonne bulk sample permit application.

On October 24, 2021, the Company executed a Mining and Milling Profit Share Agreement with High Range for mill feed to be delivered and processed at the Merritt Mill. The company's combined 50% ownership and terms under the Mining and Milling Profit Share Agreement provide it a 75% economic benefit of Dominion Creek.

Upon High Range receiving the permit, the Company would, within 30 days, commence incremental funding of $450,000 plus all costs to produce and ship 3,000 tonnes of mill feed to Merritt Mill for processing into concentrate. The $450,000 plus the $75,000 previously advanced as part of the Mineral Property Purchase Agreement shall be reimbursed from the distribution proceeds of the sale of concentrates.

On January 20, 2022, the Company announced that Dominion Gold Project has submitted its Cariboo Mitigation Plan to EMLI.

**Outlook:**

High Range has obtained its final bulk sample permit in March 2025. The Company and High Range are currently planning for possible commencement of mining and milling activities in 2025.

Year ended – December 31, 2024 Page 5

Year ended December 31, 2024

**Merritt Mill**

Nicola's Merritt Mill is located 14 km northwest of Merritt, British Columbia, approximately 3 hours from Vancouver, British Columbia. The Merritt Mill and property consists of 900 acres of freehold land, the mill, related infrastructure, and a fully lined tailings facility. The Merritt Mill was constructed during 2012 and operated from November 2012 to July 26, 2013. The Merritt Mill was then permitted for 200 tonne per day silver/lead/zinc processing plant to process mill feed from Treasure Mountain Project.

The Mines Act custom milling operations permit was received on April 18, 2016. An amendment to the original permit allows the Company to enter third-party custom milling contracts for silver/lead/gold and enables it to mill up to 200 tonnes per day at its Merritt Mill. The Company has carried out extensive modifications since 2017 to date following testing of mill in 2016 and in 2023.

On April 30, 2021, the Company announced a signed purchase contract executed on April 6, 2022, for gold and silver concentrate with Ocean Partners UK Limited ("Ocean Partners"). The purchase contract also included a US$500,000 clause that allows the Company to draw down funds for the purpose of working capital. On April 27, 2021, the Company drew down US$250,000. The loan bore interest at 5.5% plus the three-month LIBOR rate per annum which was payable monthly and repayable on October 27, 2021. On October 14, 2021, the Company repaid the US$250,000 loan plus interest.

On July 9, 2021, the Company announced recommencement of Merritt Mill operations processing mill feed from Blue Lagoon Resources Inc. ("Blue Lagoon"), the operator of the Dome Mountain Mine. On September 16, 2021, the Company announced a total of 140.9 tonnes of gold and silver concentrate shipped to Ocean Partners. On January 20, 2022, the Company announced that it planned to ship 103 dry metric tonnes of concentrate, stored inside the mill, as soon as possible. Subsequently, on February 24, 2022, the Company shipped 196 tonnes (175 dry metric tonnes) of gold and silver concentrate to Ocean Partners. The material shipped contained an approximate 92 grams of gold per tonne and 562 grams of silver per tonne.

On July 12, 2022, the Company announced that it has signed an amended agreement (the "Amended Agreement") for gold and silver concentrate with Ocean Partners UK Limited ("Ocean Partners"), which was originally announced in a news release on April 30, 2021. Sales terms of the original and Amended Agreement are the same, except the latter includes an increase in the Revolving Prepayment from US$500,000 to US$1,500,000. Nicola has received US$750,000 of the Revolving Prepayment. On December 29, 2022, the Company repaid the US$750,000 loan.

On December 2, 2022, the Company announced signing a Memorandum of Understanding with Osisko Development Corp ("Osisko") for processing of approximately 15,000 tonnes of gold mill feed stockpiled at Osisko's site, located in the Cariboo Mining District in east-central BC, east and southeast of the City of Quesnel. The mill feed was expected to be sold to Ocean Partners UK Limited.

On January 9, 2023, the Company announced a signing of a Mining and Milling Profit Share Agreement with Osisko. On March 28, 2023, the Company announced completion of mill upgrades and commencement of milling operations. The Company received more than 15,000 tonnes of gold mill feed from Osisko. On July 5, 2023, the Company announced it shipped 160 dry metric tonnes of gold concentrate grading an estimated 90 g/t Au. The Company previously announced an offtake agreement with Ocean Partners to sell the concentrate on behalf of the Company and Osisko.

On May 17, 2023, the Company announced that Blue Lagoon signed a second amending agreement extending the original agreement to March 31, 2027.

Year ended – December 31, 2024 Page 6

Year ended December 31, 2024

**LIQUIDITY AND CAPITAL RESOURCES**

A summary of the Company's cash position and changes in cash and cash equivalents for:

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| <br>(tabled amounts are expressed in thousands of Canadian dollars) | **2024** | **2023** | **2022** |
| Cash (used in) provided by operating activities | $(3311) | $3871 | $1734 |
| Cash (used in) provided by investing activities | (1587) | (89) | (76) |
| Cash (used in) provided by financing activities | 1604 | 78 | (1679) |
| Increase (decrease) in cash | (3294) | 3860 | (21) |
| Cash and cash equivalents, end of year | $1462 | $4756 | $896 |

---

As at December 31, 2024, the Company's net working capital deficit was $2.8M compared to net working capital of $4.7M and $0.9M as at December 31, 2023 and December 31, 2022 respectively. The net working capital decreased due to increase in current liabilities as the convertible debenture that was previously non current is now current in the current year end.

Cash used in operating activities was higher when compared with 2023 and 2022. This was mainly driven from lower gravel, ash, soil and other income in the current fiscal year.

Cash used in investing activities was $1.6M in the current fiscal year. This was driven by the Blue Lagoon Resources strategic investment made during the current year end. This did not occur in the prior years.

Cash flow from financing activities was $1.6M in the current fiscal year compared to a cash flow of $78k in fiscal year 2023, In fiscal 2023, the Company had a $2.0M equity financing; however, this cash flow was used to repay convertible debts and other debts. This resulted in $78k of cash flow. In the current year, there was a $1.7M equity financing that was closed but no significant cash outflow related to debt repayments. In fiscal year 2022, there weren't as much equity financing activity; majority of the financing activities were related to paying off convertible debenture and other facilities. This resulted an outflow of $1.7M.

The Company's ability to continue as a going concern is dependent on the Company's continued ability to raise funds and maintain a profit margin in its milling operations.

Year ended – December 31, 2024 Page 7

Year ended December 31, 2024

**ANNUAL FINANCIAL INFORMATION**

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| <br>**In thousands '000** | **2024** | **2023\*** | **2022\*** |
| Milling revenue | $818 | $1618 | $443 |
| Gravel, ash, soil, and other income | 1969 | 8146 | 4494 |
| Net loss | (5231) | (3326) | (52) |
| Loss per share, basic/diluted | (0.03) | (0.02) | (0.00) |
| Cash | 1462 | 4756 | 896 |
| Total assets | 10659 | 12224 | 9009 |
| Non-current financial liabilities\*\* | 28 | 4237 | 5088 |
| Cash dividend declared |  |  |  |

---

\* The Company has restated certain previously reported amounts. Please see note 2(a) of the consolidated financial statements for further information.

\*Non-current financial liabilities represents total non-current liabilities excluding the asset retirement obligation ("ARO").

Net loss for the year ended December 31, 2024 was $5.2M, comparing to the net loss of $3.3M for the year ended December 31, 2023. This was mainly driven by lower milling revenue and other income. When compared to year ended December 31, 2022, the net loss of $3.3M is higher than $52K. Although other income was higher in 2023, there was a significant adjustment of $4.0M of change in estimate of ARO expense in 2023.

Total assets fluctuation is dependent on cash balance as at year end. Cash balance is driven by the level of equity financing there are in its specific fiscal year. Non-current financial liabilities have decreased as the convertible debenture was reclassified as it matures in 2025.

**QUARTERLY RESULTS**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December<br> 31, 2024<br>($)** | **September <br> 30, 2024<br>($)** | **June 30,<br> 2024<br>($)** | **March 31,<br> 2024<br>($)** | **December<br> 31, 2023<br>($)\*** | **September<br> 30, 2023<br>($)\*** | **June 30,<br> 2023<br>($)\*** | **March 31,<br> 2023<br>($)\*** |
| Milling revenue | 743562 | Nil | Nil | 74595 | 604169 | 569431 | 444311 | Nil |
| Gravel, ash, soil and other income | 263727 | 1136445 | 252562 | 316207 | 1016147 | 1546203 | 3390961 | 2192624 |
| Exploration expense | 440987 | 554239 | 586529 | 177655 | 276211 | 520132 | 376813 | 36762 |
| Net Income (loss) | (210267) | (1472665) | (2519885) | (1028129) | (4811599) | (805874) | 1712952 | 578673 |
| Income (loss) per Share (basic and diluted) | (0.00) | (0.01) | (0.02) | (0.01) | (0.03) | (0.01) | 0.01 | 0.00 |
| Total assets | 10659233 | 10051414 | 11606576 | 11344465 | 12223887 | 15616193 | 7202432 | 11958298 |

---

\*The Company has restated previously reported amounts. Please see note 2(a) of the consolidated financial statements for further information.

Year ended – December 31, 2024 Page 8

Year ended December 31, 2024

***Three months ended December 31, 2024 compared to all historical quarters***

Milling revenue and other income – for the three months ended December, 31, 2024, the milling revenue and other income had a combined total of $1.4M. Historically, this number fluctuates as it depends on the level of milling activity and other business activities based on the contracts.

Exploration expense – for the three months ended December 31, 2024, the exploration expense was $441k. Exploration activities increased in 2024 when compared to 2023 due to closing of several flow through financing in 2024.

Net loss – for the three months ended December 31, 2024, the net loss was $210k, which was lower than majority of the losses in fiscal 2024 and Q3 2023 and Q4 2023. This was due to timing of milling revenue and other income in the current quarter. Q4 2023 had a significant net loss due to $4.0M accretion of ARO due to change in estimate. Q2 2023 and Q1 2023 had a higher net income due to timing of the other income earned during those historic quarters.

***Change in total assets***

The Company's total assets have fluctuated from $7.2M to $12.2M from early 2023 to late 2023. This was due to the proceeds received from the significant other income during fiscal 2023. In fiscal 2024, it has stabilized at around $11M as there are no cash inflow from abnormal level of other income.

**SHAREHOLDER'S EQUITY**

***As at December 31, 2024 and as at the date of this report***

The Company's authorized capital stock consists of an unlimited number of common shares without par value. As at December 31, 2024 and the date of this report, the Company has the following shareholder equity items outstanding:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Restricted<br> share <br> units** | **Stock<br> options** | **Share <br> purchase<br> warrants** | **Common <br> shares** |
| As at December 31, 2024 | 1000000 | 10400000 |  | 169918196 |
| March 12, 2025 private placement | **-** |  | 2019477 | 4038955 |
| Stock options expired/forfeited | **-** | (500000) |  |  |
| July 1, 2025 stock options granted | **-** | 400000 |  |  |
| July 17, 2025 private placement | **-** |  | 2175000 | 4350000 |
| Warrants exercised | **-** |  | (2019477) | 2019477 |
| December 3, 2025 stock option and RSU grant | 1015000 | 2850000 |  |  |
| December 31, 2025 common shares issued to settle RSUs vested | (1000000) |  |  | 1000000 |
| Stock options exercised | **-** | (3027500) |  | 3027500 |
| Conversion of convertible debentures principal and related interest | **-** |  |  | 26335252 |
| As at date of the report | 1015000 | 10122500 | 2175000 | 210689380 |

---

Year ended – December 31, 2024 Page 9

Year ended December 31, 2024

On March 12, 2025, the Company completed a non-brokered private placement issuing 4,038,955 Units ("Unit") at $0.28 per Unit, for an aggregate gross proceeds of $1,130,907. The Company paid $98,437 of finder's fees, resulting in net proceeds of $1,032,470. Each Unit consists of one common share and one-half of one share purchase warrant ("Warrant"), with each warrant entitling the holder thereof to purchase one additional Share (each, a "Warrant Share") of the Company at a price of $0.40 per Warrant Share for a period of three years from the closing of the Offering. If during the exercise period of the Warrants, but after the resale restrictions on the Shares have expired, the Shares trade on the Exchange (or such other exchange on which the Shares may be traded at such time) at a closing price of $0.60 or greater per Share for a period of ten (10) consecutive trading days, the Company may accelerate the expiry of the Warrants by giving notice to the holders thereof (by disseminating a press release advising of the acceleration of the expiry date of the Warrants) and, in such case, the Warrants will expire on the thirtieth (30th) day after the date of such notice.

On July 1, 2025, the Company granted 400,000 stock options with an exercise price of $0.495, expiring in five years.

On July 17, 2025, the Company closed a non-brokered private placement issuing an aggregate of 4,350,000 units at a price of $0.50 per unit for gross proceeds of $2,175,000. Each unit consists of one flow-through common share and one-half of one non-flow-through common share purchase warrant. Each warrant is exercisable at a price of $0.65 and expires on July 17, 2027. Total share issuance cost was $153,822.

On July 21, 2025, the Company elected to accelerate the expiry of outstanding common share purchase warrants of the Company originally issued under financings completed on March 12, 2025, exercisable at $0.40 per common share (collectively, the "Accelerated Warrants").

On August 21, 2025, a total of 2,019,477 Accelerated Warrants were exercised at $0.40 per common share for gross proceeds of approximately $807,791.

On December 3, 2025, the Company granted 2,850,000 stock options with an exercise price of $1.00, expiring in five years, and 1,015,000 restricted share units vesting on January 1, 2027.

On December 31, 2025, the Company issued 1,000,000 common shares to settle the RSUs vested on December 18, 2025.

The Company issued 3,027,500 common shares due to stock option exercised. Total proceeds received was $833,650.

Subsequent to the year end, the Company issued a total of 26,335,252 common shares upon conversion of all of its remaining convertible debentures and related interest.

Subsequent to the year end, 500,000 stock options were forfeited or cancelled.

***Stock options***

Table below provides a summary of the stock options outstanding as at date of the report:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Number <br> Outstanding** | **Number <br> Exercisable** | **Exercise<br> Price** | **Weighted<br> Average<br> Contractual <br> Life (Years)** | **Expiry Date** |
| 150000 | 150000 | $0.22 | 0.78 | October 5, 2026 |
| 1822500 | 1822500 | $0.16 | 1.78 | October 5, 2027 |
| 100000 | 100000 | $0.30 | 2.36 | May 2, 2028 |
| 1850000 | 1850000 | $0.36 | 2.59 | July 26, 2028 |
| 100000 | 100000 | $0.30 | 2.61 | August 3, 2028 |
| 2350000 | 2350000 | $0.265 | 3.32 | April 18, 2029 |
| 500000 | 500000 | $0.30 | 3.99 | December 18, 2029 |
| 400000 | 400000 | $0.495 | 4.52 | July 1, 2030 |
| 2850000 | 2850000 | $1.00 | 4.95 | December 3, 2030 |
| 10122500 | 10122500 |  |  |  |

---

Year ended – December 31, 2024 Page 10

Year ended December 31, 2024

***Restricted shares units ("RSUs")***

As at the date of this report, there are 1,015,000 RSUs that vest on January 1, 2027.

***Warrants***

As at the date of this report, there are 2,175,000 warrants outstanding that have an exercise price of $0.65 and expires on July 17, 2027.

**REGULATORY DISCLOSURES**

***Off balance sheet arrangements***

The Company does not have any off-balance sheet arrangements as at December 31, 2024 and date of this report.

***Proposed Transactions***

The Company does not have any proposed transactions as at December 31, 2024 and date of this report other than as disclosed elsewhere in this document.

***Financial instruments***

*Fair Value*

The carrying value of cash and cash equivalents, amounts receivables, accounts payable and accrued liabilities, convertible debentures and lease liabilities approximate their fair value because of the short-term nature of these instruments. The carrying value of restricted cash approximates fair value due to the nature of this asset.

The Company records its financial instruments, other than marketable securities which are at fair value through profit or loss, at amortized cost.

The financial instruments have been characterized on a fair value hierarchy based on whether the inputs to those valuation techniques are observable (inputs reflect market data obtained from independent sources) or unobservable (inputs reflect the Company's market assumptions).

The three levels of fair value estimation are:

Level 1 – quoted prices in active markets for identical instruments.

Level 2 – quoted prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3 – valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Marketable securities are measured using level 1 inputs.

Year ended – December 31, 2024 Page 11

Year ended December 31, 2024

*Risk Exposure and Management*

<u>Overview</u>

The Company has exposure to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives. The principal financial risks to which the Company is exposed are credit risk, interest rate risk, liquidity risk, commodity and equity price risk, and currency risk.

<u>Credit Risk</u>

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its obligations. As at December 31, 2024, the Company's maximum exposure to credit risk is the carrying value of its cash and cash equivalent, restricted cash, and amounts receivables in the amount of $3,570,649 (December 31, 2023 - $6,598,702).

All off the Company's cash is held with a major financial institution in Canada and management believes the exposure to credit risk with respect to such institutions is not significant. Those financial assets that potentially subject the Company to credit risk are primarily receivables. The Company considers the risk of material loss to be significantly mitigated due to the financial strength of the parties from whom the receivables are due, including government organizations.

<u>Interest Rate Risk</u>

The Company's financial assets exposed to interest rate risk consist of cash and short-term investments balances. The interest earned on the cash balances approximates fair value rates, and the Company is not at a significant risk to fluctuating rates.

The Company's Convertible Debenture debt which accrues interest is at a fixed rate of 10%, and does not expose the Company to interest rate risk.

<u>Liquidity Risk</u>

Liquidity risk is the risk that the Company will not be able to meet its obligations associated with financial liabilities. The Company has a planning and budgeting process in place by which it projects the funds required to support its operations.

Management anticipates that it may incur expenditures towards exploring its mineral interests and other Company assets. However, there is no assurance that the Company will operate profitably or will generate positive cash flow in the future. The Company has limited working capital, no history of profitable operations and no assurance that additional funding will be available to it for further exploration and development of its mineral interests. The Company may also need further financing if it decides to obtain additional mineral properties. As such, the Company is subject to many risks common to exploration enterprises, including undercapitalization, cash shortages and limitations with respect to personnel, financial, access to other resources, and lack of revenues. Although the Company has been successful in the past in obtaining financing through credit facilities or the sale of equity securities, there can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Such means of financing typically result in dilution of the positions of existing shareholders, either directly or indirectly.

Failure to obtain additional financing could result in the delay or indefinite postponement of further exploration.

<u>Foreign Exchange Rate Risk</u>

The functional currency of the Company is the Canadian dollar. As at December 31, 2024 and 2023, the Company has not entered into contracts to manage foreign exchange risk.

Year ended – December 31, 2024 Page 12

Year ended December 31, 2024

<u>Commodity and Equity Price Risk</u>

The ability of the Company to explore its exploration assets, continue milling operations, and the future profitability of the Company are directly related to the market price of copper, gold, silver, and other precious metals. Equity price risk is defined as the potential adverse impact on the Company's performance to movements in individual equity prices or general movements in the level of the stock market.

<u>Capital Management</u>

The Company considers capital to be the elements of shareholders' equity (deficit). The Company's primary objectives in capital management are to safeguard the Company's ability to continue as a going concern to provide returns for shareholders and to maintain sufficient funds to finance the exploration and development of its mineral property interests and Merritt Mill operations. The Company manages its capital structure to maximize its financial flexibility by adjusting to changes in economic conditions, and the risk characteristics of the underlying assets and business opportunities. The Company does not presently utilize any quantitative measures to monitor its capital and is not subject to externally imposed capital requirements. There have been no changes to the management of capital during the current fiscal year.

***Related Party Transactions***

Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly, and consist of its directors, the Chief Executive Officer, and the Chief Financial Officer.

The following is a summary of the Company's key management compensation:

---

| | | |
|:---|:---|:---|
|  | **Year ended <br> December 31,** | **Year ended <br> December 31,** |
|  | **2024<br> $** | **2023<br> $** |
| Consulting fees | 413250 | 540500 |
| Salaries and benefits | 37792 | 157000 |
| Share-based compensation | 477460 | 379604 |
|  | 928502 | 1077104 |

---

Consulting fees were paid or accrued to a private company owned by the Chief Financial Officer of the Company, directly to the Chief Executive Officer, and to the directors of the company. Salaries and benefits were paid to the ex-Chief Financial Officer of the company. Share-based compensation disclosed in this note represents the compensation earned by officers and directors of the Company.

As at December 31, 2024, included within accounts payable and accrued liabilities is $18,310 owed to a related party of the Company (December 31, 2023 - $Nil).

For the years ended December 31, 2024 and December 31, 2023, one customer, which is controlled by a director of the Company, accounted for 100% of the Company's milling revenue.

Subsequent to the year end, the Company received a $500,000 USD loan from a company controlled by a director bearing interest at a rate of 3M LIBOR + 6.5% until repaid.

Year ended – December 31, 2024 Page 13

Year ended December 31, 2024

***Internal controls and procedures***

During the year ended December 31, 2024, there has been no significant change in the Company's internal control over financial reporting since last year. A material weakness in internal controls over financial reporting was identified regarding management's review and assessment of the accounting impact of complex transactions. This control weakness resulted in a restatement of prior year consolidated financial statements. The Company plans to implement procedures to remediate this weakness. Management and the Board of Directors work to mitigate the risk of material misstatement; however, we do not have reasonable assurance that this risk can be reduced to a remote likelihood of a material misstatement.

The President and Chief Executive Officer and Chief Financial Officer of the Company are responsible for establishing and maintaining appropriate information systems, procedures and controls to ensure that information used internally and disclosed externally is complete, reliable and timely. The Chief Executive Officer and Chief Financial Officer of the Company have filed the Venture Issuer Basic Certificate with the MD&A and the Company's annual consolidated financial statements for the year ended December 31, 2024 on SEDAR+ at <u>http://www.sedarplus.ca</u>.

In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings ("NI 52-109"), the venture issuer basic certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures ("DC&P") and internal control over financial reporting ("ICFR"), as defined in NI 52-109. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost-effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency, and timeliness of interim and annual filings and other reports provided under securities legislation.

***Accounting estimates***

The preparation of the Company's consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Such estimates primarily relate to asset retirement obligations. Actual results could differ from those estimates. The significant assumptions about the future and other major sources of estimation uncertainty as at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amounts of the Company's assets and liabilities are described in note 2 of the consolidated financial statements.

***Material Accounting Policy Information***

Please refer to the audited annual consolidated financial statements for the year ended December 31, 2024 which was filed on SEDAR+.

***New Accounting Standards Not Yet Adopted***

The accounting policies adopted in the preparation of these consolidated financial statements have been prepared on the basis of all IFRS and interpretations effective as at December 31, 2024. The Company adopted the following standard during the year ended 2024:

<u>*IAS 1 Presentation of Financial Statements*</u>

IAS 1 has been amended to clarify the classification of liabilities as current or non-current based on the contractual arrangements in place at the reporting date. The amendments are effective for the years beginning on or after January 1, 2024. The adoption of this amendment had no material impact on the Company.

Year ended – December 31, 2024 Page 14

Year ended December 31, 2024

A number of new standards, and amendments to standards and interpretations, are not yet effective for the year ended December 31, 2024, and have not been early adopted in preparing these consolidated financial statements. **The Company intends to adopt such standards upon the mandatory effective date.**

<u>*IFRS 18 Presentation and Disclosure in Financial Statements*</u>

IFRS 18 introduces three sets of new requirements to give investors more transparent and comparable information about companies' financial performance for better investment decisions.

1. &nbsp;&nbsp;&nbsp;&nbsp; Three defined categories for income and expenses—operating, investing and financing—to improve the structure of the income statement, and require all companies to provide new defined subtotals, including operating profit.

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Requirement for companies to disclose explanations of management-defined performance measures (MPMs) that are related to the income statement.

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes.

This new standard is effective for reporting periods beginning on or after January 1, 2027. The Company will be evaluating the impact of the above amendments on its consolidated financial statements.

***Risk and Uncertainties***

As described further below, the Company's business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, tariffs, changes in laws, and national and international circumstances. Recent geopolitical events and potential economic global challenges such as the risk of higher inflation and energy crises, may create further uncertainty and risk with respect to the prospects of the Company's business. These factors represent a material uncertainty that may raise substantial doubt about the Company's ability to continue as a going concern.

*The Company may be unable to meet its liquidity requirements for operations.*

There can be no assurance that the amounts of cash from operations, together with amounts raised through financings will be sufficient to fund the Company's ongoing operations and care and maintenance program. If these amounts are insufficient to meet the Company's liquidity requirements, it may have to seek additional financing. There can be no assurance that such additional financing would be available or, if available, offered on acceptable terms. Failure to secure any necessary additional financing would have a material adverse impact on the Company's continued operations and viability.

*Mineral Exploration and Development Activities are Inherently Risky*

The business of exploration for minerals and mining involves a high degree of risk. Few properties that are explored are ultimately developed into mineral deposits with significant value. Unusual or unexpected ground conditions, geological formation pressures, fires, power outages, labour disruptions, flooding, earthquakes, explorations, cave-ins, landslides, and the inability to obtain suitable adequate machinery, equipment or labour are other risks involved in the operation of mines and the conduct of exploration programs. There are also physical risks to the exploration personnel working on the site of a mineral project. The Company's exploration properties and any future mining operations will be subject to all the hazards and risks normally incidental to exploration, development, and production of silver and other metals, any of which could result in damage to or destruction of exploration facilities or mines, damage to life and property, environmental damage, and possible legal liability for any or all damage. Although the Company maintains insurance in an amount, which it considers adequate, the nature of these risks is such that liabilities could exceed policy limits, in which event the Company could incur significant costs that could have a materially adverse effect upon its financial condition.

Year ended – December 31, 2024 Page 15

Year ended December 31, 2024

*Uncertainty of Mineral Resources*

The figures for mineral resources for the Treasure Mountain Project disclosed in the Company's Annual Information Form for the year ended December 31, 2012, and in its technical report filed on SEDAR on June 12, 2012, are only estimates. Mineral reserves at the Treasure Mountain Project have not been defined therefore the mineral resources currently cannot be considered ore.

The figures for Inferred Copper Resource for the Southern Dump and 3060 Portal Dumps at New Craigmont Copper Mine in the Technical Report filed on SEDAR on June 1, 2020, and final ALS Metallurgy Laboratory report for upgrading and copper recovery test work filed on SEDAR on June 12, 2020, are only estimates. The inferred mineral resources are not mineral reserves as the Company has not yet demonstrated the economic viability.

There is no certainty that any expenditures made in the exploration of the Company's mineral properties will result in identification of commercially recoverable quantities of ore or that ore reserves will be mined or processed profitably. In addition, substantial expenditures will be required to develop the mining and processing facilities and infrastructure at any site chosen for mining.

*Uncertainty of Economic Viability of Production from the Treasure Mountain Project*

The Company has not undertaken any preliminary economic assessment or preliminary feasibility study with respect to the Treasure Mountain Project or any of its other projects and does not intend to undertake such a study or assessment. There are significant risks associated with making a production decision without a valid, current, economic analysis and the Company may subsequently determine those recommencing operations at the Treasure Mountain Project is not economically feasible.

*Insurance*

The mining industry is subject to significant risks that could result in damage to or destruction of property and facilities, personal injury or death, environmental damage and pollution, delays in production, expropriation of assets and loss of title to mining claims. No assurance can be given that insurance to cover the risks to which the Company's activities are subject will be available at all or at commercially reasonable premiums. The Company currently maintains insurance within ranges of coverage that it believes to be consistent with industry practice for companies of a similar stage of development, however the insurance the Company has may not be sufficient to cover the full extent of any liabilities that may arise.

*Prices, Markets and Marketing of Silver, Gold, and Precious Metal Prices*

World prices for commodities fluctuate and are affected by numerous factors including international economic and political trends, expectations of inflation, currency exchange fluctuations, interest rates, global or regional consumptive patterns, speculative activities, and increased production due to new mine developments and improved mining and production methods. The effect of these factors on the price of commodities, and the resulting impact on the viability of any of the Company's exploration projects, cannot accurately be predicted.

*Liquidity and Capital Requirements*

The Company currently has a working capital and a history of working capital deficits, no history of profitable operations and no assurance that additional funding will be available to it for further exploration and development of any of its projects. The Company may also need further financing if it decides to obtain additional mineral properties or further upgrades to the Merritt Mill. As such, the Company is subject to many risks common to exploration enterprises, including under-capitalization, cash shortages and limitations with respect to personnel, financial and other resources, and lack of revenues. Although the Company has been successful in the past in obtaining financing through credit facilities or the sale of equity securities, there can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Such means of financing typically result in dilution of the positions of existing shareholders, either directly or indirectly. Failure to obtain additional financing could result in the delay or indefinite postponement of further exploration and development of its mineral properties, the loss of substantial dilution of any of its property interests or all the liquidation of all its assets.

Year ended – December 31, 2024 Page 16

Year ended December 31, 2024

*Dependence on Management*

The Company is very dependent upon the personal efforts and commitment of its existing management. To the extent that management's services would be unavailable for any reason, a disruption to the operations of the Company could result, and other persons could be required to manage and operate the Company.

*Environmental Risks*

All phases of the mineral exploration and development business present environmental risks and hazards and are subject to environmental regulations. Compliance with such legislation and regulations can require significant expenditures and a breach could result in the imposition of fines and penalties, some of which may be material. Environmental legislation is evolving in a manner which may lead to stricter standards and enforcement, larger fines and liability and potentially increased capital expenditures and operating costs. No assurance can be given that the application of environmental laws to the business and operations of the Company will not result in a curtailment of exploration or production, material increase in the costs of production, development, or exploration activities, or otherwise adversely affect the Company's financial condition, results of operations or prospects.

*Government Regulation*

The natural resource exploration industry is subject to controls and regulations imposed by various levels of government. It is not expected that any of these controls or regulations will affect the operations of the Company in a manner materially different than they would affect other natural resource exploration companies of similar size. The current legislation is a matter of public record, and the Company is unable to predict what additional legislation or amendments may be enacted.

*Indigenous Peoples' title claims and rights to consultation and accommodation may affect our existing operations as well as development projects and future acquisitions.*

Governments in many jurisdictions must consult Indigenous Peoples with respect to grants of mineral rights and the issuance or amendment of exploration and project authorizations. Consultation and other rights of Indigenous Peoples may require accommodations, including undertakings regarding financial compensation, employment and other matters in impact and benefit agreements. This may affect our ability to acquire, explore or develop, within a reasonable time frame, mineral titles in these jurisdictions and may affect the timetable and costs of development of mineral properties in these jurisdictions. The risk of unforeseen aboriginal title claims also could affect existing operations as well as exploration and development projects and future acquisitions. These legal requirements may increase our operating costs and affect our ability to expand our operations or to explore and develop new projects.

*Competition*

The mining industry is intensely competitive in all its phases, and the Company competes with other companies that may have greater financial resources and technical capacity. Competition could adversely affect the Company's ability to acquire suitable properties or prospects in the future. The Company also competes with other mining companies in the recruitment and retention of qualified employees.

*Conflicts of Interest*

The Company's directors and officers may serve as directors or officers of, or may be associated with other reporting companies, or have significant shareholdings in other public companies. To the extent that such other companies may participate in business or asset acquisitions, dispositions, or ventures in which the Company may participate, the directors and officers of the Company may have a conflict of interest in negotiating and concluding terms respecting the transaction. If a conflict of interest arises, the Company will follow the provisions of the *Business Corporations Act* (British Columbia) ("BCBCA") and any other applicable laws and rules dealing with conflicts of interest. These provisions state that where a director has such a conflict, that director must, at a meeting of the Company's directors, disclose his interest and refrain from voting on the matter unless otherwise permitted by the BCBCA. In accordance with the laws of the Province of British Columbia, the directors and officers of the Company are required to act honestly, in good faith and in the best interests of the Company.

Year ended – December 31, 2024 Page 17

Year ended December 31, 2024

*No Current Plans to Pay Cash Dividends*

The Company has no plans to pay any cash dividends for the foreseeable future. Any decision to declare and pay dividends in the future will be made at the discretion of the Board and will depend on, among other things, the Company's financial results, cash requirements, contractual restrictions, and other factors that the Board may deem relevant. In addition, the Company's ability to pay dividends may be limited by covenants of any existing and future outstanding indebtedness that the Company or its subsidiaries incur. As a result, investors may not receive any return on an investment in the Company's securities unless they sell the securities for a price greater than that which they paid for them.

*Economic Conditions*

Unfavourable economic conditions may negatively impact the Company's financial viability. Unfavourable economic conditions could also increase the Company's financing costs, decrease estimated income from prospective mining operations, limit access to capital markets and negatively impact the availability of credit facilities or other financing to the Company.

*Price Volatility of Public Stock*

The market price of the Company's securities has experienced wide fluctuations, which may not necessarily be related to the operating performance, underlying asset values or prospects of the Company. Any market for the Company's securities may be subject to market trends generally and the value of the Company's securities on the Exchange may be affected by such volatility in response to numerous factors, many of which are beyond the Company's control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· actual
 or anticipated fluctuations in the Company's quarterly results of operations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes
 in the economic performance or market valuations of other companies that investors deem comparable
 to the Company,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the
 addition or departure of the Company's executive officers or other key personnel,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· release
 or other transfer restrictions on outstanding Company securities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· sales
 or perceived sales of additional Company securities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· significant
 acquisitions or business combinations, strategic partnerships, joint ventures and or capital
 commitments by or involving the Company or its competitors,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· news
 reports relating to trends, concerns, competitive developments and or regulatory changes,
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· other
 related issues in the Company's industry or target markets.

Financial markets continue to experience significant price and volume fluctuations that have particularly affected the market prices of equity securities of companies and that have, in many cases, been unrelated to the operating performance, underlying asset values or prospects of such companies. Accordingly, the market price of the Company's securities may decline even if the Company's operating results, underlying asset values or prospects have not changed.

Additionally, these factors, as well as other related factors, may cause decreases in asset values that are deemed to be other than temporary, which may result in impairment losses. As well, certain institutional investors may base their investment decisions on consideration of the Company's environmental, governance and social practices and performance against such institutions' respective investment guidelines and criteria, and failure to meet such criteria may result in limited or no investment in the Company's securities by those institutions, which could adversely affect the trading price of the Company's securities. There can be no assurance that fluctuations in price and volume will not occur in the future. If increased levels of volatility and market turmoil occur, the Company's operations may be adversely impacted together with the trading price of the Company's securities may also be adversely affected.

Year ended – December 31, 2024 Page 18

Year ended December 31, 2024

*Regulatory and Permitting*

Regulatory and permitting requirements have a significant impact on the Company's operations and can have a material and adverse effect on future cash flow, results of operations and financial condition. To conduct mineral exploration and mining activities, the Company must obtain or renew exploration or mining permits and licenses in accordance with the relevant mining laws and regulations required by governmental authorities having jurisdiction over mineral projects. There is no guarantee that the Company will be granted the necessary permits and licenses, that they will be renewed, or that the Company will be in a-position to comply with all the conditions that are imposed. Mining is subject to potential risks and liabilities associated with pollution and the disposal of waste from mineral exploration and mining operations. Costs related to discovery, evaluation, planning, designing, developing, constructing, operating, closing, and remediating mines and other facilities in compliance with these laws and regulations are significant. In addition to environmental protection, applicable laws and regulations govern employee health and safety. Not complying with these laws and regulations can result in enforcement actions that may include corrective measures requiring capital expenditures, installation of additional equipment, remedial action, and changes to operating procedures resulting in additional costs and temporary or permanent shutdown of operations. The Company may also be required to compensate those parties' suffering loss or damage and may face civil or criminal fines or penalties for violating certain laws or regulations. Changes to these laws and regulations in the future could have an adverse effect on the Company's cash flow, results of operations and financial condition. Further, the issuance of permits may be subject to review by third parties who may challenge future permitting and the validity of existing permits based on, among other things, the government's obligation to consult and accommodate.

**FORWARD-LOOKING STATEMENT**

Certain statements in this MD&A are forward-looking statements, which reflect management's expectations regarding the future growth, results of operations, performance and business prospects and opportunities of the Company, including, but not limited to: (i) the prospects or exploration upside of Nicola's New Craigmont Project, Treasure Mountain Project and Merritt Mill, (ii) that Nicola or another party may be able to recommence operations at its Treasure Mountain Project, (iii) that Nicola will be able to close future financings, (iv) that Nicola will be able to continue to process mill feed at its Merritt Mill for third parties, (v) that Nicola will be able to sell any of its real estate properties or any other non-core assets, (vi) that Nicola will be able to close future financings to continue exploration of the New Craigmont Project, (vii) that Nicola will conduct diamond drilling, surface mapping and sampling programs, as well as evaluating the potential for future induced polarization surveys at its New Craigmont Project, which may be used to follow up any geophysical anomalies identified from the ZTEM Survey (as defined herein), and, (viii) that additional testing on the historic mine dumps will increase the New Craigmont Project's NI 43-101 (as defined herein) Inferred Resource. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations and or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance and or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain assumptions and speak only as of the date of this MD&A. These assumptions, which include management's current expectations, estimates and assumptions about the Company raising sufficient capital such that it is able to meet its obligations, the Company's ability to recommence operations, including refurbishing, and modifying the Merritt Mill to produce other metal concentrates, current mineral property interests, the global economic environment, the market price and demand for silver and other minerals, the Company's ability to manage its property interests and operating costs, and the value of its real property holdings and its non-core assets may prove to be incorrect. A number of risks and uncertainties could cause the Company's actual results to differ materially from those expressed or implied by the forward-looking statements, including, but not limited to: (1) that Nicola or another party will be unable to recommence operations at its Treasure Mountain Project, (2) that Nicola will be unable to continue custom milling operations at its Merritt Mill, (3) that Nicola may not conduct further diamond drilling, surface mapping and sampling programs or induced polarization surveys following the completion of the ZTEM Survey at its New Craigmont Project, (4) a downturn in general economic conditions in North America and internationally, (5) volatility and fluctuation in the prices of gold, silver, lead, zinc, and other precious metals, (6) volatility and fluctuation in the price of the Company's stock as well as the stock of resource issuers generally, and (7) other factors beyond the Company's direct control. Readers are cautioned that the foregoing list of factors is not exhaustive.

Year ended – December 31, 2024 Page 19

Year ended December 31, 2024

Shareholders are cautioned not to place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future results. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by law. Additional information about these and other assumptions, risks and uncertainties are set out in the sections entitled "Risk Exposure and Management" and "Risk Factors and Uncertainties".

**Qualified person**

Kevin Wells, P.Geo, a consulting geologist to the Company is the independent qualified person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") has reviewed and approved the scientific and technical information contained in this MD&A.

Year ended – December 31, 2024 Page 20

## Exhibit 4.5

**Exhibit 4.5**

![](image_012.jpg)

**NICOLA MINING INC.**

**Amended and Restated Condensed Interim Consolidated Financial Statements**

**For the three and nine months ended September 30, 2025 and 2024**

**(unaudited, prepared by management)**

**<u>Note to Reader</u>**

**The Audit Committee, in consultation with management of the Company, has determined that the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2025, filed on December 1, 2025 should be re-filed to amend an identified error in the classification of certain amounts on the on the condensed interim consolidated statements of operations and comprehensive loss. The correction includes a reclassification of $1,385,702 to 'milling – cost of sales' from 'care and maintenance', $25,594 to 'exploration costs' from 'care and maintenance' and a reclassification of $33,637 to 'deprecation' from 'travel and investor relations' for the nine month period ended September 30, 2024 and corresponding changes for the three month period ended September 30, 2024.**

**These unaudited amended and restated condensed interim consolidated financial statements for the three and nine months ended September 30, 2025 replace and supersede the previously filed unaudited condensed interim consolidated financial statements in respect of the same period filed on December 1, 2025.**

**NICOLA MINING INC.**

**Amended and Restated Condensed Interim Consolidated Statements of Financial Position**

**(Expressed in Canadian dollars) - unaudited**

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | **September 30, 2025** | <br>**December 31, 2024** |
| **Assets** |  |  |  |
| **Current assets** |  |  |  |
| Cash and cash equivalents |  | $1837777 | $1462218 |
| Amounts receivable | 3 | 843967 | 670556 |
| Marketable securities | 5 | 3573668 | 1076142 |
| Prepaid expenses and other assets |  | 286855 | 223425 |
|  |  | **6542267** | **3432341** |
| **Non-current assets** |  |  |  |
| Property, plant, and equipment | 7 | 5550329 | 5734412 |
| Right-of-use assets | 8 | 225583 | 54601 |
| Mineral interests | 4 | 4 | 4 |
| Restricted cash | 6 | 1437875 | 1437875 |
| **Total assets** |  | $**13756058** | $**10659233** |
| **Liabilities** |  |  |  |
| **Current liabilities** |  |  |  |
| Accounts payable and accrued liabilities |  | $2239082 | $1616118 |
| Current portion of lease liabilities | 8 | 80239 | 26174 |
| Deferred revenue | 13 | 690445 |  |
| Secured convertible debentures | 9 | 8043 | 4481066 |
| Flow-through liability |  | - | 102524 |
|  |  | **3017809** | **6225882** |
| **Non-current liabilities** |  |  |  |
| Lease liabilities | 8 | 150418 | 28427 |
| Asset retirement obligation ("ARO") | 10 | 14432838 | 14219544 |
| **Total liabilities** |  | **17601065** | **20473853** |
| **Equity** |  |  |  |
| **Shareholders' deficit** |  |  |  |
| Share capital |  | 96923810 | 87783671 |
| Equity component of convertible debentures |  | 2487054 | 2659366 |
| Warrants |  | 1694494 | 1694494 |
| Contributed surplus |  | 9784543 | 9494098 |
| Accumulated deficit |  | (114734908) | (111446249) |
| **Total shareholders' deficit** |  | **(3845007)** | **(9814620)** |
| **Total liabilities and shareholders' deficit** |  | $**13756058** | $**10659233** |

---

Nature of operations and going concern (Note 1) <br>Subsequent events (Note 17)

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> Approved on behalf of the Board:<br> ****<br> ***Peter Espig (signed)*** | Director | ***Frank Hogel (signed)*** | Director |

---

*The accompanying notes are an integral part of these unaudited amended and restated condensed interim consolidated financial statements.*

**NICOLA MINING INC.**

**Amended and Restated Condensed Interim Consolidated Statements of Operations and Comprehensive Loss**

**(Expressed in Canadian dollars) - unaudited**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Three months ended**<br> **September 30,** | **Three months ended**<br> **September 30,** | **Nine months ended**<br> **September 30,** | **Nine months ended**<br> **September 30,** |
|  |<br>Note | **2025** | **2024 <br> (note 2a)** | **2025** | **2024**<br> **(note 2a)** |
| Milling revenue | 2(a),13 | $552682 | $- | $631921 | $74595 |
| Milling – cost of sales | 2(a),14 | (1167618) | (652771) | (2131903) | (1799050) |
| Gross margin |  | (614936) | (652771) | (1499982) | (1724455) |
| Care and maintenance | 2(a) | (233542) | (522960) | (870195) | (878791) |
| Exploration cost | 4 | (1977931) | (554239) | (2376960) | (1318423) |
| Change in estimate and accretion of ARO | 10 | (71099) | (114808) | (213294) | (344424) |
| Salaries and benefits | 15 | (2187) | (5829) | (15310) | (69620) |
| Share-based compensation | 1215 | (231087) |  | (379855) | (629161) |
| Professional fees |  | (45339) | (18672) | (108679) | (76150) |
| Consulting fees | 15 | (93370) | (120125) | (264742) | (382625) |
| Office and general |  | (131677) | (49420) | (330064) | (150308) |
| Travel and investor relations |  | (155649) | (134023) | (592107) | (348227) |
| Regulatory and transfer agent fees |  | (50806) | (10947) | (65779) | (31734) |
| Depreciation |  | (28000) | (16518) | (41086) | (41086) |
| **Total operating expenses** |  | (3020687) | (1547541) | (5258071) | (4270549) |
| **Net loss before other items** |  | (3635623) | (2200312) | (6758053) | (5995004) |
| Flow-through premium |  | 26000 |  | 102524 |  |
| Other income | 13 | 196730 | 1136445 | 621169 | 1630619 |
| Finance costs | 89 | (124580) | (153714) | (390207) | (436639) |
| Fair value revaluation – marketable securities | 5 | (453065) | (250540) | 3143674 | (214826) |
| Foreign exchange loss |  | (3599) | (4544) | (7766) | (4829) |
| **Net loss for the period** |  | (3994137) | (1472665) | (3288659) | (5020679) |
| **Loss per share – basic and diluted** |  | $(0.02) | $(0.01) | $(0.02) | $(0.03) |
| **Weighted average number of common shares outstanding – basic and diluted**  |  | 185655555 | 162040218 | 178317017 | 162653927 |

---

*The accompanying notes are an integral part of these unaudited amended and restated condensed interim consolidated financial statements.*

**NICOLA MINING INC.**

**Amended and Restated Condensed Interim Consolidated Statements of Cash Flows**

**(Expressed in Canadian dollars) - unaudited**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended September 30,** | **Three months ended September 30,** | **Nine months ended September 30,** | **Nine months ended September 30,** |
|  | 2025 | 2024 | 2025 | 2024 |
| **Operating Activities** |  |  |  |  |
| Net loss for the period | $(3994137) | $(1472665) | $(3288659) | $(5020679) |
| Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in estimate and accretion of ARO | 71099 | 114808 | 213294 | 344424 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 231087 |  | 379855 | 629161 |
| &nbsp;&nbsp;&nbsp;Depreciation | 101943 | 24568 | 276169 | 123458 |
| &nbsp;&nbsp;&nbsp;Non-cash interest and finance costs | 125224 | 154348 | 387552 | 444129 |
| &nbsp;&nbsp;&nbsp;Flow-through premium | (26000) |  | (102524) |  |
| &nbsp;&nbsp;&nbsp;Fair value revaluation – marketable securities | 453065 | 250540 | (3143674) | 214826 |
| Changes in non-cash working capital items |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amounts receivable | (449810) | 292322 | (173411) | 388869 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 29255 | 124 | (63428) | (217041) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 683453 | (345592) | 622965 | 318022 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 690445 | - | 690445 | - |
| **Cash Used in Operating Activities** | (2084376) | (981547) | (4201416) | (2774831) |
| **Investing Activities** |  |  |  |  |
| Purchase of marketable securities | (50000) |  | (75000) | (1000000) |
| Purchase of property, plant, and equipment | (43000) |  | (51000) | (32500) |
| Sale of marketable securities | 278659 |  | 721148 |  |
| Restricted cash movement | - | - | - | (25000) |
| **Cash Provided by (Used in) Investing Activities** | 185659 | - | 595148 | (1057500) |
| **Financing Activities** |  |  |  |  |
| Proceeds from issuance of common shares | 2175000 |  | 3305907 | 1162852 |
| Share issuance costs | (153822) |  | (252259) |  |
| Proceeds from warrants exercised | 807791 |  | 807791 |  |
| Proceeds from stock option exercised | 96150 |  | 172650 |  |
| Interest payment on secured convertible debenture |  |  |  | (32200) |
| Repayment of lease liabilities | (35371) | (6060) | (52262) | (18180) |
| **Cash Provided by (Used in) Financing Activities** | 2889748 | (6060) | 3981827 | 1112472 |
| **Net change in cash for the period** | 991031 | (987607) | 375559 | (2719859) |
| **Cash and cash equivalent - beginning of period** | 846746 | 3023866 | 1462218 | 4756118 |
| **Cash and cash equivalents - end of period** | $1837777 | $2036259 | $1837777 | $2036259 |
| **Cash** | $1720277 | $1976259 | $1720277 | $1976259 |
| **Cash equivalents** | 117500 | 60000 | 117500 | 60000 |
| **Cash and cash equivalents - end of period** | $1837777 | $2036259 | $1837777 | $2036259 |

---

For the periods ended September 30, 2025 and 2024 all non-cash investing and financing activities are disclosed elsewhere in the consolidated financial statements.

*The accompanying notes are an integral part of these unaudited amended and restated condensed interim consolidated financial statements.*

**NICOLA MINING INC.**

**Amended and Restated Condensed Interim Consolidated Statements of Changes in Shareholders' Deficit**

**(Expressed in Canadian dollars) – unaudited**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Number of<br> Common Shares** | **Share<br> Capital** | **Warrants** | **Equity<br> Component<br> of<br> Convertible<br> Debentures** | <br>**Contributed<br> Surplus** | **Accumulated<br> Deficit (restated - <br> note 2a)** | **Total<br> Deficit** |
| **Balance, January 1, 2025** | 169918196 | $87783671 | $1694494 | $2659366 | $9494098 | $(111446249) | $(9814620) |
| Share issuance financing | 4038955 | 1130907 |  |  |  |  | 1130907 |
| Share issuance financing, flow-through | 4350000 | 2175000 |  |  |  |  | 2175000 |
| Share issuance costs |  | (252259) |  |  |  |  | (252259) |
| Stock options exercised | 677500 | 262060 |  |  | (89410) |  | 172650 |
| Warrants exercised | 2019477 | 807791 |  |  |  |  | 807791 |
| Convertible debenture conversion | 26290375 | 5016640 |  | (172312) |  |  | 4844328 |
| Share-based compensation |  |  |  |  | 379855 |  | 379855 |
| Net loss for the period | - | - | - | - | - | (3288659) | (3288659) |
| **Balance, September 30, 2025** | 207294503 | $96923810 | $1694494 | $2487054 | $9784543 | $(114734908) | $(3845007) |
| **Balance, January 1, 2024** | 161182098 | $85894218 | $1694494 | $2671669 | $8737314 | $(106215303) | $(7217608) |
| Share issuance financing | 5499994 | 1162852 |  |  |  |  | 1162852 |
| Share-based compensation |  |  |  |  | 629161 |  | 629161 |
| Net loss for the period | - | - | - | - | - | (5020679) | (5020679) |
| **Balance, September 30, 2024** | 166682092 | $87057070 | $1694494 | $2671669 | $9366475 | $(111235982) | $(10446274) |

---

*The accompanying notes are an integral part of these unaudited amended and restated condensed interim consolidated financial statements.*

**NICOLA MINING INC.**

**Notes to Amended and Restated Condensed Interim Consolidated Financial Statements**

**(Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

**1.** **NATURE OF OPERATIONS AND GOING CONCERN** 

Nicola Mining Inc. (the **"Company"** or **"Nicola"**) is a junior exploration company that is engaged in the business of identification, acquisition, and exploration of mineral property interests together with custom milling operations at its mill located in Merritt, B.C. (the **"Merritt Mill"**). The Company's head office is located at 3329 Aberdeen Road, Lower Nicola, B.C. Nicola is a publicly listed company incorporated under the *Business Corporations Act* (British Columbia). The Company's common shares are listed on the TSX Venture Exchange (the "**TSX-V**") under the symbol "NIM.V" and on OTCQB operated by the OTC Markets Group Inc. under the ticker "HUSIF".

As at September 30, 2025, the Company had an accumulated deficit of $114,734,908 (December 31, 2024 - $111,446,249) and working capital of $3,524,458 (December 31, 2024 – working capital deficit of $2,793,541). To continue operations, the Company will be required to raise funds through the issuance of equity or debt, be successful recommencing operations at the Treasure Mountain project (**"Treasure Mountain Property"**) together with ongoing exploration programs at its New Craigmont property (**"New Craigmont Property"**), and/or achieve profitable operations at the Merritt Mill (**"Merritt Mill"**).

The Company's business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, tariffs, changes in laws, and national and international circumstances. Recent geopolitical events and potential economic global challenges such as the risk of higher inflation and energy crises, may create further uncertainty and risk with respect to the prospects of the Company's business. These factors represent a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. Realization values may be substantially different from carrying values as shown and the Company's consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern.

These unaudited amended and restated condensed interim consolidated financial statements have been prepared using the going concern concept, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.

**2.** **BASIS OF PRESENTATION** 

&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Restatement of prior year balances** 

The Company has identified the following adjustments to previously reported amounts for the period ended September 30, 2024:

&nbsp;&nbsp;&nbsp;&nbsp;i) As
 milling and other milling related operations is considered to be the Company's ordinary
 business, $74,595 of milling charges and net profit earned from concentrate sales were reclassified
 as milling revenue from other income. The associated milling cost of $1,799,050 was reclassified
 as milling - cost of sales. $878,791 remaining costs relating to care and maintenance have
 been reclassified as such.

ii) The adjustments above did not have a material impact on the Company's total cash flows used in or provided by operating activities, cash flows used in investing activities, and cash flows provided by financing activities.

These changes were made in accordance with IAS 8 resulting in the restatement of prior year figures.

**NICOLA MINING INC.**

**Notes to Amended and Restated Condensed Interim Consolidated Financial Statements**

**(Expressed in Canadian dollars) - unaudited**<br> **For the nine months ended September 30, 2025 and 2024**

&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Statement of Compliance with International Financial Reporting Standards** 

These unaudited amended and restated condensed interim consolidated financial statements have been prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB"). Accordingly, the accounting policies applied and disclosed in note 3 in the annual financial statements prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") have been condensed or omitted and these unaudited amended and restated condensed consolidated interim financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2024. The consolidated financial statements have been prepared on an accrual basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The consolidated financial statements are presented in Canadian dollars. The Company's interim results are not necessarily indicative of its results for a full year.

These unaudited amended and restated condensed interim consolidated financial statements were approved by the Board of Directors on December 24, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;**c)** **Basis of Consolidation** 

These unaudited amended and restated condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Huldra Properties Inc. All inter-company balances, and transactions are eliminated on consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;**d)** **Basis of Measurement** 

These unaudited amended and restated condensed interim consolidated financial statements are presented in Canadian dollars, which is also the Company's and its subsidiary's functional currency and have been prepared on a historical cost basis, except for certain financial instruments, which are carried at fair value. In addition, these amended and restated condensed interim consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

&nbsp;&nbsp;&nbsp;&nbsp;**e)** **Use of Estimates and Judgments** 

The preparation of the unaudited condensed interim consolidated financial statements in conformity with IFRS requires management to make judgements and estimates which affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. The judgements that have the most significant effect on the amounts recognized in the Company's consolidated financial statements are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Going concern</u> 

The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to conduct its planned work program on its mineral properties, meet its on-going levels of corporate overhead and commitments, keep its properties in good standing and discharge its liabilities as they come due. These matters result in material uncertainties which may cast significant doubt about the Company's ability to continue as a going concern. See note 1 for details.

ii) <u>Revenue – Agent versus Principal</u>

The Company uses judgment in assessing whether it is acting as an agent or principal in earning milling revenues. As part of this determination, consideration has been given as to whether the Company controls the goods being delivered to the customer, is primarily responsible for fulling the promise to provide goods to the customer, having any inventory risk, and the Company's ability in establishing pricing. Management has reviewed the relevant factors and assessed that the Company is an agent.

**NICOLA MINING INC.**

**Notes to Amended and Restated Condensed Interim Consolidated Financial Statements**

**(Expressed in Canadian dollars) - unaudited**<br> **For the nine months ended September 30, 2025 and 2024**

iii) <u>Impairment of non-current assets</u>

Non-current assets are tested for impairment when indicators of impairment are present. Calculating the estimated fair values of cash generating units for non-current asset impairment tests requires management to make estimates and assumptions with respect to metal selling prices, future capital expenditures, reductions in the amount of recoverable reserves, resources, and exploration potential, production cost estimates, discount rates and exchange rates. Reduction in metal price forecasts, increases in estimated future costs of production, increases in estimated future non-expansionary capital expenditures, reductions in the amount of recoverable reserves, resources, and exploration potential, and/or adverse current economics can result in a write-down of the carrying amounts of the Company's non-current assets.

&nbsp;&nbsp;&nbsp;&nbsp;**f)** **Key Sources of Estimation Uncertainty** 

The significant assumptions about the future and other major sources of estimation uncertainty as at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amounts of the Company's assets and liabilities are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i) ARO

The Company's rehabilitation provision represents management's best estimate of the present value of the future cash outflows required to settle the liability. Management assesses these provisions on an annual basis or when new information becomes available. This assessment includes the estimation of the future rehabilitation costs, the timing of these expenditures, inflation, and the impact of changes in discount rates, interest rates and foreign exchange rates. The actual future expenditures may differ from the amounts currently provided if the estimates made are significantly different than actual results or if there are significant changes in environmental and/or regulatory requirements in the future.

&nbsp;&nbsp;&nbsp;&nbsp;**g**) **Adoption of New and Revised IFRS and IFRS Not Yet Effective** 

Certain new standards, interpretations and amendments to existing standards have been issued that are mandatory for accounting periods noted below. Some updates that are not applicable or are not consequential to the Company may have been excluded from the list below.

*IFRS 18 Presentation and Disclosure in Financial Statements*

IFRS 18 introduces three sets of new requirements to give investors more transparent and comparable information about companies' financial performance for better investment decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Three defined categories
 for income and expenses (operating, investing and financing) to improve the structure of the income statement, and require all companies
 to provide new defined subtotals, including operating profit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Requirement for companies
 to disclose explanations of management-defined performance measures (MPMs) that are related to the income statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Enhanced guidance on how
 to organize information and whether to provide it in the primary financial statements or in the notes.

This new standard is effective for reporting periods beginning on or after January 1, 2027. The Company is currently in the process of assessing its impact on the consolidated financial statements.

**NICOLA MINING INC.**

**Notes to Amended and Restated Condensed Interim Consolidated Financial Statements**

**(Expressed in Canadian dollars) - unaudited**<br> **For the nine months ended September 30, 2025 and 2024**

*Material accounting policies*

Deferred revenue

The Company may receive advance payments from its customer for future deliveries of gold concentrate. In accordance with IFRS 15, these advances are recorded as deferred revenue (contract liabilities) until the related gold concentrate is delivered and control transfers to the customer. At that point, the deferred revenue is recognized as revenue in the statement of operations.

**3.** **AMOUNTS RECEIVABLE** 

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Gravel, ash, soil, and other receivables | $405060 | $354054 |
| GST receivable | 217182 | 112802 |
| Provisional gold sales | 221725 | 203700 |
|  | $**843967** | $**670556** |

---

**4.** **MINERAL INTERESTS** 

The Company holds a 100% interest in 30 mineral claims and 1 mineral lease at the Treasure Mountain Property, located near Hope, B.C. The properties are subject to a 2% net smelter royalty.

The Company holds a 100% interest in New Craigmont Property comprising 22 mineral claims and 10 mineral leases located in Lower Nicola, BC. The properties are subject to a 2% net smelter royalty.

The Company recorded an impairment write-down in relation to its Treasure Mountain Property in 2014. The property remains in good standing, and further carrying charges and evaluation costs are being charged to the consolidated statement of operations as an operating expense.

*Dominion Creek Property*

On May 31, 2021, the Company entered into a Mineral Property Purchase Agreement ("Dominion Purchase Agreement") and acquired a 50% interest in 8 mineral claims known as the Dominion Creek Property from High Range Exploration Ltd (**"High Range"**). The Dominion Creek Property is located near Prince George, BC. The Company acquired 50% by paying $225,000, $75,000 of which was used to commence work on a 10,000-tonne bulk sample permit application. During the year ended December 31, 2022, the Company impaired the Dominion Creek Property by $224,999 to $1 due to delays in development.

The Company committed to garnering the receipt of a 10,000-tonne bulk sample permit. After the permit was received in June of 2025, Nicola commenced incremental funding of the following costs (collectively "Initial Costs"):

&nbsp;&nbsp;&nbsp;&nbsp;i) Camp
 construction costs not to exceed $50,000;

ii) Road construction upgrade costs not to exceed $300,000;

iii) Reclamation bonding costs not to exceed $100,000 (paid); and

iv) The Company also agreed to fund the project up to and including all costs to produce and ship 3,000 tons of ore.

A part of the Dominion Purchase Agreement, the Company entered a mining and profit sharing agreement ("Dominion Milling Agreement"). The Company would receive an even split in all profits after certain costs are reimbursed to High Range and all costs to Nicola (which includes all of Initial Costs).

**NICOLA MINING INC.**

**Notes to Amended and Restated Condensed Interim Consolidated Financial Statements**

**(Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

The Company's group of claims consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| |  | **September 30**,<br> **2025<br> $** | **December 31**, **<br> 2024<br> $** |
| a) | The Treasure Mountain group of claims located in the Similkameen Mining Division of British Columbia | 1 | 1 |
| b) | A Crown Grant mineral claim (Lot 1210) in the Yale Mining Division contiguous to the Treasure Mountain Claims known as the "Eureka" | 1 | 1 |
| c) | The surface rights to Lot 1209 located in the Yale Mining Diversion of British Columbia known as the "Whynot Fraction" | 1 | 1 |
| d) | Acquisition of 50% interest in Dominion Creek Property, located in the Cariboo Mining Diversion of British Columbia | 1 | 1 |
|  |  | **4** | **4** |

---

Exploration costs incurred are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended**<br> **September 30,** | **Three months ended**<br> **September 30,** | **Nine months ended <br> September 30,** | **Nine months ended <br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **$** | **$** | **$** | **$** |
| **New Craigmont Property** |  |  |  |  |
| Assay | 46301 | 1400 | 46301 | 16422 |
| Drilling and mapping | 363517 | 397167 | 599068 | 893347 |
| Field supplies and rentals | 4143 | 5054 | 8915 | 25517 |
| First Nations liaison consulting |  | 7500 | 15000 | 17500 |
| Geological consulting and technical fees | 138657 | 100945 | 282363 | 297869 |
| Tenure lease | 5497 | 1664 | 5497 | 1664 |
| **Total costs incurred during the period** | **558115** | **513730** | **957144** | **1252319** |
| **Treasure Mountain** |  |  |  |  |
| Other | 4274 |  | 4274 |  |
| Water sampling and environmental | 68987 | 40509 | 68987 | 66104 |
| **Total costs incurred during the period** | **73261** | **40509** | **73261** | **66104** |
| **Dominion Creek Project** |  |  |  |  |
| Trenching | 1254501 |  | 1254501 |  |
| Field supplies and rentals | 85780 |  | 85780 |  |
| Geological consulting and technical fees | 6274 | - | 6274 | - |
| **Total costs incurred during the period** | **1346555** | **-** | **1346555** | **-** |
| **Grand total costs incurred during the period** | **1977931** | **554239** | **2376960** | **1318423** |

---

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

**5.** **MARKETABLE SECURITIES** 

On January 17, 2024, the Company made a strategic investment of $1,000,000 in Blue Lagoon Resources Inc. ("BLLG") to purchase BLLG's common shares. During the year ended December 31, 2024, the Company received proceeds of $27,755 from the disposition of BLLG common shares.

During the period ended September 30, 2025, the Company purchased $75,000 of BLLG's common shares and disposed $721,148 worth of BLLG's common shares. The fair value of the BLLG common shares held by the Company was $3,573,668 as at September 30, 2025 (December 31, 2024 - $1,076,142), resulting a fair value gain of $3,143,674 (2024 – loss of $214,826).

**6.** **RESTRICTED CASH** 

The Company has in place deposits amounting to $1,437,875 at September 30, 2025 (December 31, 2024 - $1,437,875) registered in the name of the British Columbia Ministry of Finance as security for its mining permits and for reclamation clean up at the Treasure Mountain Property, the Merritt Mill and decommissioned tailings, Dominion Creek Project and the New Craigmont Property.

**7.** **PROPERTY, PLANT, AND EQUIPMENT** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Land**<br>**$** | **Mill**<br>**$** | **Camp and Site<br> Infrastructure**<br>**$** | **Heavy<br> Machinery <br> and Equipment**<br>**$** | **Computers<br> and Office<br> Equipment**<br>**$** | **TOTAL**<br>**$** |
| **Cost** |  |  |  |  |  |  |
| **Balance at December 31, 2023** | 4180000 | 1841372 | 157585 | 547619 | 46250 | 6772826 |
| Additions | - | 194505 | - | 258483 | - | 452988 |
| **Balance at December 31, 2024** | 4180000 | 2035877 | 157585 | 806102 | 46250 | 7225814 |
| Additions | - | - | - | 51000 | - | 51000 |
| **Balance at September 30, 2025** | 4180000 | 2035877 | 157585 | 857102 | 46250 | 7276814 |
| **Accumulated Depreciation** |  |  |  |  |  |  |
| **Balance at December 31, 2023** |  | 707953 | 108281 | 425880 | 41931 | 1284045 |
| Depreciation for the year | - | 104454 | 26739 | 72478 | 3686 | 207357 |
| **Balance at December 31, 2024** |  | 812407 | 135020 | 498358 | 45617 | 1491402 |
| Depreciation for the period | - | 86470 | 20214 | 127766 | 633 | 235083 |
| **Balance at September 30, 2025** | - | 898877 | 155234 | 626124 | 46250 | 1726485 |
| **Carrying Amounts** |  |  |  |  |  |  |
| **At December 31, 2024** | **4180000** | **1223470** | **22565** | **307744** | **633** | **5734412** |
| **At September 30, 2025** | **4180000** | **1137000** | **2351** | **230978** | **-** | **5550329** |

---

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

**8.** **RIGHT OF USE ASSETS** 

---

| | |
|:---|:---|
| **Right-of-Use Assets - cost** | |
| As at December 31, 2023 | $75295 |
| Additions | 64477 |
| Disposal | (75295) |
| As at December 31, 2024 | 64477 |
| Additions | 212068 |
| As at September 30, 2025 | 276545 |

---

---

| | |
|:---|:---|
| **Right-of-Use Assets – accumulated depreciation** | |
| As at December 31, 2023 | $(61935) |
| Disposal | 75295 |
| Depreciation | (23236) |
| As at December 31, 2024 | (9876) |
| Depreciation | (41086) |
| As at September 30, 2025 | (50962) |

---

---

| | |
|:---|:---|
| **Right-of-Use Assets – net carrying value** | |
| As at December 31, 2024 | $54601 |
| As at September 30, 2025 | $225583 |

---

---

| | |
|:---|:---|
| **Lease liabilities** | |
| As at December 31, 2023 | $16353 |
| Addition | 64477 |
| Accretion expense | 5746 |
| Payment | (31975) |
| As at December 31, 2024 | 54601 |
| Additions | 212068 |
| Accretion expense | 16250 |
| Payment | (52262) |
| As at September 30, 2025 | 230657 |

---

**Lease liabilities - discounted**

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025** | **December 31,<br> 2024** |
| Current | $80239 | $26174 |
| Non-current | 150418 | 28427 |
| Total | $230657 | $54601 |

---

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

**Lease liabilities - undiscounted**

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
| Current | $108726 | $35543 |
| Non-current | 185542 | 40189 |
| Total | $294268 | $75732 |

---

**9.** **SECURED CONVERTIBLE DEBENTURE** 

The outstanding principal and interest of the Debentures and Second Tranche Debentures are secured against the assets of Nicola.

***Year ended December 31, 2024***

During the year ended December 31, 2024, debenture holders converted $314,262 of the convertible debenture (principal and interest) into 1,594,314 shares common shares that mature on January 9, 2025.

***Nine months ended September 30, 2025***

On January 3, 2025, a $45,000 convertible debenture and interest of $4,421 were converted into 246,995 of the Company's common shares. Upon this conversion, all of the convertible debenture that matured on January 9, 2025 were converted.

During the period ended September 30, 2025, debenture holders converted the principal and settled interest of $4,794,907 for the convertible debenture that matures on November 21, 2025, into 26,043,380 common shares.

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025** | **December 31,<br> 2024** |
| Opening | $4481066 | $4236848 |
| Conversion of Convertible Debenture and interest | (4844328) | (314262) |
| Less cash payment of interest |  | (33000) |
| Accretion | 371305 | 591480 |
|  | $8043 | $4481066 |
| Current portion | $**8043** | $**4481066** |
| Non-current portion | $**-** | $**-** |

---

**10.** **ASSET RETIREMENT OBLIGATION** 

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025** | **December 31,<br> 2024** |
| Opening balance | $14219544 | $14506089 |
| Change in estimate |  | (745776) |
| Accretion expense | 213294 | 459231 |
| Closing balance | $14432838 | $14219544 |

---

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

The Company's estimates of future decommissioning and restoration for reclamation and closure costs for its mine and exploration and evaluation assets are based on reclamation standards that meet Canadian regulatory requirements. Elements of uncertainty in estimating these amounts include potential changes in regulatory requirements, reclamation plans and cost estimates, discount rates and timing of expected expenditures.

*Merritt Mill*

The Merritt Mill reclamation costs were adjusted using a long-term inflation rate of 2.31% (2024 – 2.31%) and then discounted using a risk-free rate of 3.33% (2024 – 3.33%).

The Company estimates the undiscounted and uninflated reclamation costs associated with the Merritt Mill to be $15,290,830 (December 31, 2024 - $15,290,830). The Company anticipates it will settle these obligations over 14 years (2024 – 15 years).

*Treasure Mountain*

The Treasure Mountain reclamation costs were adjusted using a long-term inflation rate of 2.88% (2024 – 2.88%) and then discounted using a risk-free rate of 3.23% (2024 – 3.23%)

The Company estimates the undiscounted and uninflated reclamation costs associated with Treasure Mountain is $1,073,123 (2024 - $1,073,123). The Company anticipates it will settle these obligations over 7 years (2024 – 8 years).

**11.** **SHARE CAPITAL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Common Shares**

**Authorized**

The authorized capital stock of the Company is an unlimited number of common shares without par value.

***Issued – period ended September 30, 2025***

On January 3, 2025, a $45,000 convertible debenture and interest of $4,421 were converted into 246,995 of the Company's common shares. Upon this conversion, all of the convertible debentures that matured on January 9, 2025 were converted.

On March 12, 2025, the Company completed a non-brokered private placement issuing 4,038,955 units at $0.28 per unit, for aggregate gross proceeds of $1,130,907 and paid $98,437 of transaction costs, for net proceeds of $1,032,470. Each unit consists of one common share and one-half of one share purchase warrant, with each warrant entitling the holder thereof to purchase one additional Share of the Company at a price of $0.40 per warrant share for a period of three years from the closing of the offering. If during the exercise period of the warrants, but after the resale restrictions on the shares have expired, the shares trade on the TSX Venture Exchange (or such other exchange on which the shares may be traded at such time) at a closing price of $0.60 or greater per Share for a period of ten (10) consecutive trading days, the Company may accelerate the expiry of the warrants by giving notice to the holders thereof (by disseminating a press release advising of the acceleration of the expiry date of the warrants) and, in such case, the warrants will expire on the thirtieth (30th) day after the date of such notice.

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

On July 17, 2025, the Company closed its non-brokered private placement which it sold an aggregate of 4,350,000 units at a price of $0.50 per unit for gross proceeds of $2,175,000. Each unit consists of one flow-through common share and one-half of one non-flow-through common share purchase warrant. Each Warrant is exercisable at a price of $0.65 and expires on July 17, 2027. Total share issuance costs were $153,822.

On July 21, 2025, the Company elected to accelerate the expiry of outstanding common share purchase warrants of the Company originally issued under financings completed on March 12, 2025, exercisable at C$0.40 per common share (collectively, the "Warrants"). On August 21, 2025, a total of 2,019,477 Warrants were exercised at C$0.40 per common share for gross proceeds of approximately $807,791.

During the period ended September 30, 2025, debenture holders converted the principal and settled interest of $4,794,907 for the convertible debenture that matures on November 21, 2025, into 26,043,380 common shares.

During the period ended September 30, 2025, the Company issued 677,500 common shares from stock option exercised for total proceeds of $172,650.

***Issued – year ended December 31, 2024***

On April 12, 2024, the Company completed a flow-through private placement offering, pursuant to which it issued an aggregate of 5,499,994 shares at a price of $0.23 per share for gross proceeds of $1,264,999.

The Company paid an aggregate of $102,146 transaction cost in connection with the private placement.

On December 3, 2024, the Company completed a flow-through private placement offering, pursuant to which it issued an aggregate of 1,641,790 shares at a price of $0.335 per share for gross proceeds of $550,000.

The Company paid an aggregate of $43,249 transaction cost in connection with the private placement, and reclassified $106,716 of flow through liability out of equity.

During the year ended December 31, 2024, the Company converted $314,262 of convertible debenture into 1,594,314 shares.

&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Share Purchase Warrants** 

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Warrants** | **Weighted Average<br> Exercise Price<br> $** |
| **Balance at December 31, 2024, 2023** | - |  |
| Warrants issuance | 2019477 | 0.40 |
| Warrants issuance | 2175000 | 0.65 |
| Warrants exercised | (2019477) | 0.40 |
| **Balance at September 30, 2025** | 2175000 | 0.65 |

---

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

**12.** **SHARE-BASED COMPENSATION** 

**2022 Equity Incentive Plan**

Effective May 14, 2022, the Company adopted an equity incentive plan (the "Equity Incentive Plan") that replaced the Stock Option Plan. The Equity Incentive Plan has two components as follows: (i) a rolling stock option plan for the grant of Options equal to up to 10% of the number of issued and outstanding common shares, and (ii) a fixed plan for the grant of performance equity securities including Deferred Share Units ("DSUs"), Restricted Share Units ("RSUs"), and Performance Share Units ("PSUs") ("DSUs" and, collectively with the RSUs and PSUs, the "Performance-Based Awards").

Pursuant to the Equity Incentive Plan, the Company is authorized to grant Options to executive officers, directors, employees, and consultants. The Board shall determine any vesting terms applicable to the grants.

Pursuant to the Equity Incentive Plan, the Company is authorized to grant Performance-Based Awards to executive officers, directors, employees, and consultants with the maximum aggregate number of common shares that may be issuable for Performance Based Awards not to exceed 20,729,450 (2024 - 16,991,819) common shares. The Board shall determine any vesting terms applicable to the grants.

During the nine months ended September 30, 2025, the Company recognized a stock based compensation expense of $379,855 (2024 – $629,161).

During the nine months ended September 30, 2025, the Company issued 400,000 (2024 – 3,500,000) stock options and to consultants, employees and directors of the Company.

The stock options were valued using Black-Scholes valuation model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **September 30,<br> 2024** |
| Fair value of common shares at grant | $0.495 | $0.265 |
| Exercise price | $0.495 | $0.265 |
| Expected life | 5 years | 5 years |
| Volatility | 107% | 107% |
| Dividend rate | 0% | 0% |
| Risk free rate | 2.94% | 3.12% |
| Fair value of stock option | $0.39 | $0.21 |

---

Volatility was determined based on the historical trading prices of the Company.

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

The following is a summary of changes in stock options:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Options** | **Weighted Average<br> Exercise Price<br> $** |
| **Balance at December 31, 2023** | 7475000 | 0.26 |
| Granted options | 3500000 | 0.27 |
| Cancelled options | (575000) | 0.25 |
| **Balance at December 31, 2024** | 10400000 | 0.27 |
| Granted options | 400000 | 0.495 |
| Exercised options | (677500) | 0.25 |
| Cancelled/Expired options | (450000) | 0.32 |
| **Balance at September 30, 2025** | 9672500 | 0.28 |

---

As at September 30, 2025, the following stock options were outstanding and exercisable:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Number<br> Outstanding** | **Number<br> Exercisable** | **Exercise<br> Price** | **Weighted**<br> **Average**<br> **Contractual<br> Life (Years)** | **Expiry Date** |
| 1625000 | 1625000 | $0.30 | 0.27 | January 8, 2026 |
| 525000 | 525000 | $0.22 | 1.01 | October 5, 2026 |
| 1822500 | 1822500 | $0.16 | 2.01 | October 5, 2027 |
| 100000 | 100000 | $0.30 | 2.59 | May 2, 2028 |
| 1850000 | 1850000 | $0.36 | 2.82 | July 26, 2028 |
| 100000 | 100000 | $0.30 | 2.84 | August 3, 2028 |
| 2750000 | 2750000 | $0.27 | 3.55 | April 18, 2029 |
| 500000 | 500000 | $0.30 | 4.22 | December 18, 2029 |
| 400000 | 400000 | $0.495 | 4.75 | July 1, 2030 |
| 9672500 | 9672500 |  |  |  |

---

*Restricted Shares Unit*

On December 18, 2024, the Company granted 1,000,000 Restricted Share Units ("RSUs") with a fair value of $0.30 per RSU and a vesting date of December 31, 2025.

**13.** **MILLING REVENUE AND OTHER INCOME** 

Major customers are defined as customers that each individually account for greater than 10% of the Company's revenues. For the nine months ended September 30, 2025 and 2024, one customer, which is controlled by a director of the Company, accounted for 100% of the Company's milling revenue. During the nine months ended September 30, 2025, the Company received a revenue advance of $690,445 (US$500,000).

During the nine months ended September 30, 2025, the Company received $621,169 (September 30, 2024 - $1,630,619) of other income related to royalty on gravel pit, space rental, and materials disposal.

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

**14.** **MILLING – COST OF SALES** 

Cost of sales relate to all costs associated with operating the mill and are expensed as incurred as the Company does not control the goods or services before they are transferred to a customer. Revenue is recognized when the ore processing service is rendered by the Company, accepted by the customer, collection is reasonably assured, and performance obligations are satisfied. As a result, the recognition of milling costs does not necessarily coincide with the recognition of the related revenue and such costs are not matched to specific revenue periods.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended <br> September 30,** | **Three months ended <br> September 30,** | **Nine months ended**<br> **September 30,** | **Nine months ended**<br> **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **$** | **$** | **$** | **$** |
| Amortization and depreciation | 73943 | 8050 | 235083 | 82372 |
| Salaries and wages | 559284 | 289209 | 1003300 | 806582 |
| Power and fuel | 79960 | 49764 | 131017 | 103089 |
| Mill repairs | 74268 | 131342 | 185430 | 483478 |
| Mill supplies and rentals | 380163 | 174406 | 577073 | 323529 |
| Total | 1167618 | 652771 | 2131903 | 1799050 |

---

**15.** **RELATED PARTY TRANSACTIONS** 

Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly, and consist of its directors, the Chief Executive Officer, and the Chief Financial Officer.

The following is a summary of the Company's key management compensation:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended <br> September 30,** | **Three months ended <br> September 30,** | **Nine months ended <br> September 30,** | **Nine months ended <br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **$** | **$** | **$** | **$** |
| Consulting fees | 88500 | 120125 | 250500 | 382625 |
| Salaries and benefits |  |  |  | 35250 |
| Share-based compensation | 51169 | - | 182638 | 468761 |
| Total | 139669 | 120125 | 433138 | 886636 |

---

As at September 30, 2025, included within accounts payable and accrued liabilities is $Nil owed to a related party of the Company (December 31, 2024 - $18,310). See also note 13 for other related party transactions.

**16.** **FINANCIAL AND CAPITAL RISK MANAGEMENT** 

*Fair Value*

The carrying value of cash and cash equivalents, amounts receivable, accounts payable and accrued liabilities, secured convertible debentures and lease liabilities approximate their fair value because of the short-term nature of these instruments. The carrying value of restricted cash approximates fair value due to the nature of this asset.

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

The Company records its financial instruments, other than marketable securities which are at fair value through profit or loss, at amortized cost.

The financial instruments have been characterized on a fair value hierarchy based on whether the inputs to those valuation techniques are observable (inputs reflect market data obtained from independent sources) or unobservable (inputs reflect the Company's market assumptions).

The three levels of fair value estimation are:

Level 1 – quoted prices in active markets for identical instruments.

Level 2 – quoted prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3 – valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Marketable securities are measured using level 1 inputs.

*Risk Exposure and Management*

<u>Overview</u>

The Company has exposure to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives. The principal financial risks to which the Company is exposed are credit risk, interest rate risk, liquidity risk, commodity and equity price risk, and currency risk.

<u>Credit Risk</u>

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its obligations. As at September 30, 2025, the Company's maximum exposure to credit risk is the carrying value of its cash and cash equivalents, restricted cash, and amounts receivable in the amount of $4,119,619 (December 31, 2024 - $3,570,649).

All off the Company's cash is held with a major financial institution in Canada and management believes the exposure to credit risk with respect to such institutions is not significant. Those financial assets that potentially subject the Company to credit risk are primarily receivables. The Company considers the risk of material loss to be significantly mitigated due to the financial strength of the parties from whom the receivables are due, including government organizations.

<u>Interest Rate Risk</u>

The Company's financial assets exposed to interest rate risk consist of cash and short-term investments balances. The interest earned on the cash balances approximates fair value rates, and the Company is not at a significant risk to fluctuating rates.

The Company's secured convertible debenture which accrues interest is at a fixed rate of 10%, and does not expose the Company to interest rate risk.

<u>Liquidity Risk</u>

Liquidity risk is the risk that the Company will not be able to meet its obligations associated with financial liabilities. The Company has a planning and budgeting process in place by which it projects the funds required to support its operations.

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

Management anticipates that it may incur expenditures towards exploring its mineral interests and other Company assets. However, there is no assurance that the Company will operate profitably or will generate positive cash flow in the future. The Company has limited working capital, no history of profitable operations and no assurance that additional funding will be available to it for further exploration and development of its mineral interests. The Company may also need further financing if it decides to obtain additional mineral properties. As such, the Company is subject to many risks common to exploration enterprises, including undercapitalization, cash shortages and limitations with respect to personnel, financial, access to other resources, and lack of revenues. Although the Company has been successful in the past in obtaining financing through credit facilities or the sale of equity securities, there can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Such means of financing typically result in dilution of the positions of existing shareholders, either directly or indirectly.

Failure to obtain additional financing could result in the delay or indefinite postponement of further exploration.

---

| | | | |
|:---|:---|:---|:---|
| September 30, 2025 | Less than 12 months ($) | One to five years ($) | Total ($) |
| Accounts payable and accrued liabilities | 2239082 |  | 2239082 |
| Lease liabilities | 108726 | 185542 | 294268 |
| Secured convertible debenture | 8043 | - | 8043 |
| Total | 2355851 | 185542 | 2541393 |

---

<u>Foreign Exchange Rate Risk</u>

The functional currency of the Company is the Canadian dollar. As at September 30, 2025, the Company has not entered into contracts to manage foreign exchange risk.

<u>Commodity and Equity Price Risk</u>

The ability of the Company to explore its exploration assets, continue milling operations, and the future profitability of the Company are directly related to the market price of copper, gold, silver, and other precious metals. Equity price risk is defined as the potential adverse impact on the Company's performance to movements in individual equity prices or general movements in the level of the stock market.

<u>Capital Management</u>

The Company considers capital to be the elements of shareholders' equity (deficit). The Company's primary objectives in capital management are to safeguard the Company's ability to continue as a going concern to provide returns for shareholders and to maintain sufficient funds to finance the exploration and development of its mineral property interests and Merritt Mill operations. The Company manages its capital structure to maximize its financial flexibility by adjusting to changes in economic conditions, and the risk characteristics of the underlying assets and business opportunities. The Company does not presently utilize any quantitative measures to monitor its capital and is not subject to externally imposed capital requirements. There have been no changes to the management of capital during the current fiscal year.

**NICOLA MINING INC.**<br> **Notes to Amended and Restated Condensed Interim Consolidated Financial Statements<br> (Expressed in Canadian dollars) - unaudited<br> For the nine months ended September 30, 2025 and 2024**

**17.** **SUBSEQUENT EVENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;a) The
 Company issued a total of 44,877 common shares upon conversion of all of its remaining convertible
 debentures and related interest.

&nbsp;&nbsp;&nbsp;&nbsp;b) The
 Company issued 2,275,000 common shares due to stock options exercised. Total proceeds received
 was $638,500.

&nbsp;&nbsp;&nbsp;&nbsp;c) On
 December 3, 2025, the Company granted 2,850,000 stock options with an exercise price
 of $1.00, expiring in five years, and 1,015,000 restricted share units vesting on January 1,
 2027.

## Exhibit 4.6

**Exhibit 4.6**

Nine months ended September 30, 2025

---

| |
|:---|
| &nbsp;&nbsp;![](tm264113d4_ex4-6img01.jpg) |
| &nbsp;&nbsp;<br> **Amended and Restated Management's Discussion and Analysis**<br>**For the nine months ended September 30, 2025**<br> (Expressed in Canadian dollars, unless otherwise noted) |

---

December 24, 2025

*The following amended and restated management's discussion and analysis ("MD&A") was prepared as of date of the report per above and is management's assessment of the operating results and financial condition of Nicola Mining Inc. ("Nicola" or the "Company") together with its subsidiaries. For further information on the Company, reference should be made to its public filings on SEDAR+ at <u>www.sedarplus.ca</u>. Information is also available on the Company's website at <u>www.nicolamining.com</u>. This amended and restated Management's Discussion and Analysis ("MD&A") should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2024 and the unaudited amended and restated condensed interim consolidated financial statements for the period ended September 30, 2025, and related notes thereto which have been prepared in accordance with IFRS Accounting Standards ("IFRS"). The MD&A contains certain forward-looking statements, please review the disclaimers that are provided on the last page of the report.*

***Amended and restated interim financial statements and MD&A for the period ended September 30, 2025***

Following the interim review of the Company's auditors, the Company has re-filed its interim financial statements for the period ended September 30, 2025.

The re-filing was necessitated by a reclassification of milling expenses in the historical comparative period ended September 30, 2024. These adjustments have no material impact on the Company's cash flows or statement of financial position. See note 2 of the interim financial statements for details.

No changes were made to the balances of the interim financial statements and MD&A for the current period ended September 30, 2025.

**OVERVIEW**

Nicola is a junior exploration and custom milling company that is engaged in the business of identification, acquisition, and exploration of mineral property interests together with custom milling partnerships at its Merritt Mill.

The Company's common stock is quoted on the TSX Venture Exchange (the "Exchange") under the symbol "NIM". On November 3, 2021, the Company obtained Depository Trust Company eligibility in United States, shares are quoted on OTCQB operated by the OTC Markets Group Inc. under the ticker "HUSIF".

Period ended – September 30, 2025 Page 1

Nine months ended September 30, 2025

**FISCAL QUARTER SEPTEMBER 30, 2025 HIGHLIGHTS**

● On March 12, 2025, the Company completed a non-brokered private placement issuing 4,038,955 units at $0.28 per unit, for aggregate gross proceeds of $1,130,907 and paid $98,437 of transaction costs, for net proceeds of $1,032,470. Each unit consists of one common share and one-half of one share purchase warrant, with each warrant entitling the holder thereof to purchase one additional Share of the Company at a price of $0.40 per warrant share for a period of three years from the closing of the offering. If during the exercise period of the warrants, but after the resale restrictions on the shares have expired, the shares trade on the TSX Venture Exchange (or such other exchange on which the shares may be traded at such time) at a closing price of $0.60 or greater per Share for a period of ten (10) consecutive trading days, the Company may accelerate the expiry of the warrants by giving notice to the holders thereof (by disseminating a press release advising of the acceleration of the expiry date of the warrants) and, in such case, the warrants will expire on the thirtieth (30th) day after the date of such notice..

● On May 21, 2025, the Company started receiving gold / silver ore from Talisker Resources Inc. and is currently undergoing pre-production adjustment. The modern $35.0 million plus milling and processing facility, which is located near Merritt, British Columbia, has undergone numerous upgrades in 2H 2024. Production at the modern facility, which is constructed on free-hold industrial-zone land owned 100% by the Company, is expected to ramp up and reach full capacity in Q3. The Company has also commenced the process of applying for an amendment to its permit, for the purpose of increasing mill throughput.

● On June 9, 2025, the Company received a multi-year area-based exploration permit, Permit Number MX-15-121 (the "MYAB Permit"). On June 4<sup>th</sup>, 2025. The MYAB Permit allows the Company to conduct extensive exploration on its wholly owned Treasure Mountain Silver Project 1 (the "Treasure Mountain"), a fully permitted silver mine (Permit 239) located 30 km northeast of Hope and about a 3-hour drive from Vancouver, British Columbia.

Receipt of the MYAB Permit, the Company received a ten-year mining lease extension (the "Extension") for Treasure Mountain 2 under its M-239 permit. The Extension is valid through April 26, 2032, and receipt of the MYAB Permit positions the Company to leverage both mining and exploration options.

● On June 20, 2025, the Company announced commencement of the 2025 Exploration Diamond Drilling Program (the "2025 Program") at its New Craigmont Copper Project ("New Craigmont"), near Merritt, BC.

● On July 17, 2025, the Company closed its non-brokered private placement which it sold an aggregate of 4,350,000 units at a price of $0.50 per unit for gross proceeds of $2,175,000. Each unit consists of one flow-through common share and one-half of one non-flow-through common share purchase warrant. Each warrant is exercisable at a price of $0.65 and expires on July 17, 2027. Each FT Share of the Company is issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) and in accordance with the policies of the TSX Venture Exchange (the "Exchange"). The Company paid an aggregate of $153,822 to four eligible finders in connection with the Offering.

● On July 21, 2025, the Company elected to accelerate the expiry of outstanding common share purchase warrants of the Company originally issued under financings completed on February 25, 2025 exercisable at $0.40 per common share. On August 21, 2025, a total of 2,019,477 Warrants were exercised at $0.40 per common share for gross proceeds of approximately $807,791.

● On September 17, 2025, the Company announced that it received six Mining Lease extensions for five years from the Ministry of Mining and Critical Minerals. The six Mining Lease extensions (together, "Mine Lease Extensions"), 237642 to 237647, extend its wholly-owned New Craigmont Property (the "Property") for five years, which is located adjacent to Teck Resources Ltd.'s Highland Valley Copper, Canada's largest copper mine.

● September 22, 2025, the Company announced that an aggregate of $3,900,000 convertible debentures (the "Convertible Debentures") maturing on November 21, 2025 has been converted into 22,941,177 common shares (each, a "Share") of the Company at a conversion price of $0.17 per Share and an aggregate of $312,000 in interest pursuant to the Convertible Debentures has been converted into 385,185 Shares at a conversion price of $0.81 per Share.

Period ended – September 30, 2025 Page 2

Nine months ended September 30, 2025

***Subsequent to September 30, 2025***

● On October 15, 2025, the Company provided an update on preparation work conducted during 2025 on the Treasure Mountain Silver Project ()"**Treasure Mountain**") and its plan for a 2026 exploration drilling program ()"**2026 TM Program** "). The 2026 TM Program will be the culmination of an airborne magnetic geophysical survey (conducted by Scott Hogg & Associates Ltd. in 2012), extensive soil sampling programs over multiple years, and 2025 field reconnaissance. Treasure Mountain is a permitted silver mine located 30 km northeast of Hope and about a 3-hour drive from Vancouver, British Columbia. Treasure Mountain was an operating mine but was put into care and maintenance in 2013, due to depressed silver prices and has always been a core asset which has been strategically waiting for higher silver prices.

● On October 27, 2025, the Company filed a listing application with The Nasdaq Capital Market (the "Nasdaq") in connection with a planned uplisting of its common shares in the United States. In connection with the proposed uplisting, the Company has applied to list its common shares under the symbol "NICM."

On October 7, 2025, the Company filed a Preliminary Short Form Base Shelf Prospectus (the "Preliminary Shelf Prospectus") with securities regulatory authorities in Ontario, Alberta and British Columbia (the "Canadian Regulators").

The Company will be permitted to offer preferred shares, debt securities, warrants, subscription receipts, common shares and units, or any combination thereof (collectively, the "Qualified Securities"), for up to C$10,000,000, from time to time during the 25-month period after it receives a receipt from the Canadian Regulators for the Final Short Form Base Shelf Prospectus (the "Final Shelf Prospectus"); however, no amount or terms have been considered.

● On November 4, 2025, the Company completed work at Dominion for 2025 and has completed all mine development for the 10,000 bulk sample, which is planned to recommence in July of 2026. Initially, the Company had planned to ship up to 2000 tonnes to the Nicola mill in 2025 for processing, but opted to wait until next year for two reasons.

● On December 1, 2025, the Company announced that Blue Lagoon Resources (CSE: BLLG) ("Blue Lagoon") has commenced transporting high-grade gold and silver millfeed to Nicola's mill, located near Merritt, British Columbia.

● On December 3, 2025, the Company granted 2,850,000 stock options with an exercise price of $1.00, expiring in five years, and 1,015,000 restricted share units vesting on January 1, 2027.

● The Company issued a total of 44,877 common shares upon conversion of all of its remaining convertible debentures and related interest.

● The Company issued 2,275,000 common shares due to stock option exercised. Total proceeds received was $638,500.

**TREASURE MOUNTAIN PROJECT**

*Overview*

Nicola's Treasure Mountain Project is located 29 kilometres northeast of Hope, British Columbia, approximately 3 hours from Vancouver, British Columbia. In May 2012, the Company received a mining lease covering 335 ha of which 248 ha are active workings. The Company's mineral claim holdings consist of 31 continuous mineral claims covering an area of approximately 2,200 ha, one mining lease covering 335 ha at the Treasure Mountain Project and a Mines Act (British Columbia) (the "Mines Act") permit for the Treasure Mountain Project for the removal of 60,000 tonnes per year of silver/lead/zinc mill feed from the underground mine and the transfer of the mill feed offsite for processing. The Treasure Mountain Project has been in care and maintenance since July 26, 2013. A resources update was prepared in 2009 and an updated Technical Report was completed in 2012, in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). From 2012 to 2019, no subsequent mining activity or exploration was completed on the project. To date, the majority of the Company's Treasure Mountain Project mineral resource has been classified as Inferred according to CIM Definition Standards for Mineral Resources and Mineral Reserves (2014), whereby the economic viability of such resources cannot be determined.

Period ended – September 30, 2025 Page 3

Nine months ended September 30, 2025

**Outlook:**

The Company believes that Treasure Mountain's upside potential is not associated with the developed mine, but in its highest priority target, the MB Zone. While 2025 will focus on exploration at New Craigmont, the Company received a multi-year area-based permit to the Ministry of Energy, Mines and Low Carbon Innovation on June 5, 2025, which authorizes it to conduct exploration activities for up to 5 years. Subsequently, exploration preparation commenced in June, which included a review of soil sampling and an electromagnetic survey in preparation for a drill program in the MB Zone.

**NEW CRAIGMONT PROJECT**

*Overview*

The Company's claim holdings at the New Craigmont Project consist of 22 contiguous mineral claims covering approximately 10,913 hectares, and 10 mineral leases covering approximately 347 hectares known as the New Craigmont Project located near Merritt, British Columbia, approximately 3 hours from Vancouver, British Columbia.

The New Craigmont Project (the "Project") does not conform to a "typical" exploration pipeline. The Project is a permitted historic mine site with active permits under a current mine permit M-68, which covers an area approximately 1400 ha. In addition, extensive work done on the mine (c.1958-c.1982) was focused primarily on ore definition, development, and extraction of mineral inventory, known at the time. This work resulted in a cumulative production of 36.75 million tonnes of ore grading 1.28% copper ("Cu"). However, the Project had limited exploration beyond its historic operations.

The geological model adopted by Craigmont Mines Ltd. exploration team was one in which Cu and iron ("Fe") were derived from country rock by fluids heated by intrusion of the Guichon Creek Batholith. Mineralization occurred preferentially along calcareous rocks resulting in a strata-bound skarn deposit.

Field relationships from mapping completed since 2015 and drilling in 2016 demonstrate that the Guichon Creek Batholith is cut by veins containing propylitic alteration mineral assemblages and copper mineralization, indicating that hydrothermal events occurred after emplacement of the Guichon Creek batholith. It is possible and more likely hydrothermal alteration and associated Cu mineralization was caused by magmatic-hydrothermal fluids. In the last decade, through increased demand for copper and diminishing copper grades, academic research primarily focussed on low-grade, large tonnage porphyry systems. This research suggests genetic links exist between magmatic-derived hydrothermal fluids and porphyry, skarn, and epithermal deposit formation. The geological team at Nicola Mining realise that the broader alteration system at the New Craigmont Project was not fully explored. Re-evaluation of this alteration system is believed to aid in efficient and effective exploration of the land package, which may have been historically overlooked.

Period ended – September 30, 2025 Page 4

Nine months ended September 30, 2025

*Objectives and Strategy*

Nicola's primary objective at the New Craigmont Project is to prove the historic un-exploited mineral inventory using modern exploration techniques and targeted definition drilling on in-situ bodies. The Company also plans to re-evaluate the potential from material not processed at the time of mining and unlock its value with increasing commodity prices from global demand. To this effect, target development and confirmation drilling aims to develop targets deemed to have the potential for significant mineralization on the project land package. A mineral resource estimate was completed in 2020 in accordance with NI 43-101 on the Southern Mining Terraces and 3060 Portal Dump areas.

**Outlook:**

The Company completed an IP Survey in May of 2024 to further define drill targets in the WP, Marb and Cas Zones, which were subsequently drilled and results published. The Company also drilled a step out hole at the Embayment Zone, which expanded the known mineralized area. Given the successful results of the 2024 drill program, the Company has finalized targets in the same areas for drilling exploration activities in 2025.

**DOMINION CREEK GOLD PROPERTY PROJECT**

*Overview*

On June 15, 2021, the Company announced the acquisition of a 50% interest in the Dominion Creek Property, located 43 km northeast of the Town of Wells and about 110 kilometers east-southeast of Prince George from High Range Exploration Ltd ("High Range"). Pursuant to the terms of a Mineral Property Purchase Agreement (the "Mineral Property Purchase Agreement") between the Company and High Range, the Company paid $150,000 for the 50% acquisition of the Dominion Creek Property consisting of 8 continuous mineral claims totalling 1,040 hectares plus $75,000 for High Range to commence work and to submit a 10,000-tonne bulk sample permit application.

On October 24, 2021, the Company executed a Mining and Milling Profit Share Agreement with High Range for mill feed to be delivered and processed at the Merritt Mill. The Company's combined 50% ownership and terms under the Mining and Milling Profit Share Agreement provide it a 75% economic benefit of Dominion Creek.

Upon High Range receiving the permit, the Company would, within 30 days, commence incremental funding of $450,000 plus all costs to produce and ship 3,000 tonnes of mill feed to Merritt Mill for processing into concentrate. The $450,000 plus the $75,000 previously advanced as part of the Mineral Property Purchase Agreement shall be reimbursed from the distribution proceeds of the sale of concentrates.

On January 20, 2022, the Company announced that Dominion Gold Project has submitted its Cariboo Mitigation Plan to EMLI.

**Outlook:**

In November 4, 2025, the Company completed work at Dominion for 2025 and has completed all mine development for the 10,000 bulk sample, which is planned to recommence in July of 2026. Initially, the Company had planned to ship up to 2000 tonnes to the Nicola mill in 2025 for processing, but opted to wait until next year for two reasons – weather and project size. Mining activities will recommence in 2026.

Period ended – September 30, 2025 Page 5

Nine months ended September 30, 2025

**LIQUIDITY AND CAPITAL RESOURCES**

A summary of the Company's cash position and changes in cash and cash equivalents for:

---

| | | |
|:---|:---|:---|
| | **Nine months ended**<br> **September 30,** | **Nine months ended**<br> **September 30,** |
| <br>(tabled amounts are expressed in thousands of Canadian dollars) | **2025** | **2024** |
| Cash (used in) provided by operating activities | $(4201) | $(2774) |
| Cash (used in) provided by investing activities | 595 | (1058) |
| Cash (used in) provided by financing activities | 3982 | 1112 |
| Increase (decrease) in cash | 376 | (2720) |
| Cash and cash equivalents, end of period | $1838 | $2036 |

---

As of September 30, 2025, the Company reported a net working capital deficit of $3.5 million, compared to a net working capital deficit of $2.8 million as of December 31, 2024. The increase in the net working capital deficit is primarily due to the development of the Dominion Gold Project for the 10,000 tonne bulk sample.

Cash used in operating activities increased compared to the same period in 2024. This increase was primarily driven by the decline in revenue from gravel, ash, soil, and other ancillary income sources during the current period.

Cash inflow from investing activities amounted to $0.6 million during the current period, largely due to the sale of the Company's strategic investment in Blue Lagoon Resources ("BLLG). This transaction represents a reversal from the prior year, in which the Company invested $1.0 million in BLLG.

Cash inflow from financing activities totaled $4.0 million in the current period, compared to a cash inflow of $1.1 million in the prior year. The cash inflow from financing activities in the current period was higher mainly due to $3.1 million from proceeds from private placement.

The Company's ability to continue as a going concern remains dependent on its ongoing capacity to raise capital and sustain profitability in its milling operations.

On March 12, 2025, the Company completed a private placement with a gross proceeds of $1.1 million for working capital purposes. All of the funds were used for working capital purposes with no variance.

On July 17, 2025, the Company completed a flow through private placement with a gross proceeds of $2.2 million for working capital purposes. $0.6 million was spent for such purposes as at September 30, 2025, the remaining $1.6 million remains unspent.

Period ended – September 30, 2025 Page 6

Nine months ended September 30, 2025

**INTERIM FINANCIAL INFORMATION**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended**<br> **September 30,** | **Three months ended**<br> **September 30,** | **Nine months ended**<br> **September 30,** | **Nine months ended**<br> **September 30,** |
| <br>**In thousands '000** | **2025** | **2024** | **2025** | **2024** |
| Milling revenue | $553 | $- | $631 | $75 |
| Gravel, ash, soil, and other income | 197 | 1136 | 621 | 1631 |
| Net income (loss) | (3994) | (1473) | (3289) | (5021) |
| Earnings (loss) per share, basic/diluted | (0.02) | (0.01) | (0.02) | (0.03) |
| Cash | 1838 | 2036 | 1838 | 2036 |
| Total assets | 13756 | 23549 | 13756 | 23549 |
| Non-current financial liabilities\* | 150 | 4647 | 150 | 4647 |
| Cash dividend declared | - | - | - | - |

---

*\* Non-current financial liabilities represent total non-current liabilities excluding the asset retirement obligation ("ARO").*

For the period ended September 30, 2025, the Company recorded a net loss of $3.3 million, compared to a net loss of $5.0 million in the same period of the prior year. The reduced loss was primarily attributable to a revaluation gain recognized on marketable securities, specifically the Company's holdings in BLLG common shares.

Total assets continue to fluctuate in relation to the Company's cash position at period-end, which is, in turn, influenced by the level of equity financing. As of September 30, 2025, non-current financial liabilities were nominal, as the Company's convertible debenture was reclassified to current liabilities in anticipation of its maturity in 2025.

**QUARTERLY RESULTS**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **September 30,<br> 2025<br> ($)** | **June 30,<br> 2025<br> ($)** | **March 31,<br> 2025<br> ($)** | **December 31,<br> 2024<br> ($)** | **September 30,<br> 2024<br> ($)** | **June 30,<br> 2024<br> ($)** | **March 31,<br> 2024<br> ($)** | **December 31,<br> 2023<br> ($)** |
| Milling revenue | 552682 | 72841 | 6398 | 743562 | Nil | Nil | 74595 | 604169 |
| Gravel, ash, soil and other income | 196730 | 206230 | 218209 | 263727 | 1136445 | 252562 | 241612 | 1016147 |
| Exploration expense | 1977931 | 267342 | 131687 | 440987 | 554239 | 586529 | 177655 | 276211 |
| Net Income (loss) | (3994137) | 1181286 | (475808) | (210267) | (1472665) | (2519885) | (1028129) | (4811599) |
| Income (loss) per Share (basic and diluted) | (0.02) | 0.01 | (0.00) | (0.00) | (0.01) | (0.02) | (0.01) | (0.03) |
| Total assets | 13756058 | 12873068 | 10977505 | 10659233 | 10051414 | 11606576 | 11344465 | 12223887 |

---

***<br> Three months ended September 30, 2025 compared to all historical quarters***

Mill Revenue and Other Income - for the three months ended September 30, 2025, the Company generated combined milling revenue and other income of $0.8 million. Historically, this figure has varied based on the level of milling activity and the timing and volume of other business contracts. As these revenue streams are largely contract-dependent, fluctuations are expected across quarters.

Period ended – September 30, 2025 Page 7

Nine months ended September 30, 2025

Exploration Expense - Exploration expenses for the quarter totaled $1,977,931. Exploration activity increased in 2024 compared to 2023, largely driven by the completion of several flow-through financings. The lower expense reported in Q1 and Q2 2025 reflects a temporary decrease in exploration activity due to timing differences in project execution and expenditure recognition. During Q3 2025, significant exploration and pre-development activities were incurred on the Company's Dominion Creek Project. This resulted a $2.0 million spending in exploration.

Net Loss - The net loss for the quarter was $3,994,137, which was higher than majority of the previous quarters except Q4 2023. This was driven by higher exploration cost and decrease in other income. The net loss in Q4 2023 was notably higher due to a $4.0 million accretion expense related to the asset retirement obligation (ARO) following a change in estimate.

**Change in Total Assets**

The Company's total assets fluctuated between $10.0 million and $13.8 million. This is typically driven by the timing of private placements and cash position.

**SHAREHOLDER'S EQUITY**

***As at September 30, 2025 and as at the date of this report***

The Company's authorized capital stock consists of an unlimited number of common shares without par value. As at September 30, 2025 and the date of this report, the Company has the following shareholder equity items outstanding:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Restricted<br> share**<br> **units** | **Stock <br> options** | **Share<br> purchase<br> warrants** | **Common <br> shares** |
| As at September 30, 2025 | 1000000 | 9672500 | 2175000 | 207294503 |
| Convertible debenture conversion |  |  |  | 44877 |
| Stock options exercised |  | (2275000) |  | 2275000 |
| Stock options and RSUs granted | 1015000 | 2850000 |  |  |
| As at date of the report | 2015000 | 10247500 | 2175000 | 209614380 |

---

Period ended – September 30, 2025 Page 8

Nine months ended September 30, 2025

***Stock options***

The table below provides a summary of the stock options outstanding as at date of the report:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Number <br> Outstanding** | **Number<br> Exercisable** | **Exercise <br> Price** | **Weighted**<br> **Average**<br> **Contractual Life<br> (Years)** | **Expiry Date** |
| 125000 | 125000 | $0.30 | 0.04 | &nbsp;&nbsp;January 8, 2026 |
| 150000 | 150000 | $0.22 | 0.78 | &nbsp;&nbsp;October 5, 2026 |
| 1822500 | 1822500 | $0.16 | 1.78 | &nbsp;&nbsp;October 5, 2027 |
| 100000 | 100000 | $0.30 | 2.36 | &nbsp;&nbsp;May 2, 2028 |
| 1850000 | 1850000 | $0.36 | 2.59 | &nbsp;&nbsp;July 26, 2028 |
| 100000 | 100000 | $0.30 | 2.61 | &nbsp;&nbsp;August 3, 2028 |
| 2350000 | 2350000 | $0.265 | 3.32 | &nbsp;&nbsp;April 18, 2029 |
| 500000 | 500000 | $0.30 | 3.99 | &nbsp;&nbsp;December 18, 2029 |
| 400000 | 400000 | $0.495 | 4.52 | &nbsp;&nbsp;July 1, 2030 |
| 2850000 | 2850000 | $1.00 | 4.95 | &nbsp;&nbsp;December 3, 2030 |
| 10247500 | 10247500 |  |  |  |

---

***Restricted shares units ("RSUs")***

As at the date of this report, there are 1,000,000 RSUs outstanding that vest on December 31, 2025 and 1,015,000 RSUs that vest on January 1, 2027.

***Warrants***

As at the date of this report, there are 2,175,000 warrants outstanding that have an exercise price of $0.65 and expires on July 17, 2027.

Period ended – September 30, 2025 Page 9

Nine months ended September 30, 2025

**REGULATORY DISCLOSURES**

***Off balance sheet arrangements***

The Company does not have any off-balance sheet arrangements as at September 30, 2025 and date of this report.

***Proposed Transactions***

The Company does not have any proposed transactions as at September 30, 2025 and date of this report other than as disclosed elsewhere in this document.

***Financial instruments***

*Fair Value*

The carrying value of cash and cash equivalents, amounts receivables, accounts payable and accrued liabilities, secured convertible debentures and lease liabilities approximate their fair value because of the short-term nature of these instruments. The carrying value of restricted cash approximates to fair value due to the nature of this asset.

The Company records its financial instruments, other than marketable securities which are at fair value through profit or loss, at amortized cost.

The financial instruments have been characterized on a fair value hierarchy based on whether the inputs to those valuation techniques are observable (inputs reflect market data obtained from independent sources) or unobservable (inputs reflect the Company's market assumptions).

The three levels of fair value estimation are:

Level 1 – quoted prices in active markets for identical instruments.

Level 2 – quoted prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3 – valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Marketable securities are measured using level 1 inputs.

*Risk Exposure and Management*

<u>Overview</u>

The Company has exposure to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives. The principal financial risks to which the Company is exposed are credit risk, interest rate risk, liquidity risk, commodity and equity price risk, and currency risk.

<u>Credit Risk</u>

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its obligations. As at September 30, 2025, the Company's maximum exposure to credit risk is the carrying value of its cash and cash equivalents, restricted cash, and amounts receivables in the amount of $4,119,619 (December 31, 2024 - $3,570,649).

All off the Company's cash is held with a major financial institution in Canada and management believes the exposure to credit risk with respect to such institutions is not significant. Those financial assets that potentially subject the Company to credit risk are primarily receivables. The Company considers the risk of material loss to be significantly mitigated due to the financial strength of the parties from whom the receivables are due, including government organizations.

Period ended – September 30, 2025 Page 10

Nine months ended September 30, 2025

<u>Interest Rate Risk</u>

The Company's financial assets exposed to interest rate risk consist of cash and short-term investments balances. The interest earned on the cash balances approximates fair value rates, and the Company is not at a significant risk to fluctuating rates.

The Company's secured convertible debenture which accrues interest is at a fixed rate of 10%, and does not expose the Company to interest rate risk.

<u>Liquidity Risk</u>

Liquidity risk is the risk that the Company will not be able to meet its obligations associated with financial liabilities. The Company has a planning and budgeting process in place by which it projects the funds required to support its operations.

Management anticipates that it may incur expenditures towards exploring its mineral interests and other Company assets. However, there is no assurance that the Company will operate profitably or will generate positive cash flow in the future. The Company has limited working capital, no history of profitable operations and no assurance that additional funding will be available to it for further exploration and development of its mineral interests. The Company may also need further financing if it decides to obtain additional mineral properties. As such, the Company is subject to many risks common to exploration enterprises, including undercapitalization, cash shortages and limitations with respect to personnel, financial, access to other resources, and lack of revenues. Although the Company has been successful in the past in obtaining financing through credit facilities or the sale of equity securities, there can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Such means of financing typically result in dilution of the positions of existing shareholders, either directly or indirectly.

Failure to obtain additional financing could result in the delay or indefinite postponement of further exploration.

<u>Foreign Exchange Rate Risk</u>

The functional currency of the Company is the Canadian dollar. As at September 30, 2025, the Company has not entered into contracts to manage foreign exchange risk.

<u>Commodity and Equity Price Risk</u>

The ability of the Company to explore its exploration assets, continue milling operations, and the future profitability of the Company are directly related to the market price of copper, gold, silver, and other precious metals. Equity price risk is defined as the potential adverse impact on the Company's performance to movements in individual equity prices or general movements in the level of the stock market.

<u>Capital Management</u>

The Company considers capital to be the elements of shareholders' equity (deficit). The Company's primary objectives in capital management are to safeguard the Company's ability to continue as a going concern to provide returns for shareholders and to maintain sufficient funds to finance the exploration and development of its mineral property interests and Merritt Mill operations. The Company manages its capital structure to maximize its financial flexibility by adjusting to changes in economic conditions, and the risk characteristics of the underlying assets and business opportunities. The Company does not presently utilize any quantitative measures to monitor its capital and is not subject to externally imposed capital requirements. There have been no changes to the management of capital during the current fiscal year.

Period ended – September 30, 2025 Page 11

Nine months ended September 30, 2025

***Related Party Transactions***

Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly, and consist of its directors, the Chief Executive Officer, and the Chief Financial Officer.

The following is a summary of the Company's key management compensation:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three months ended<br> September 30,** | **Three months ended<br> September 30,** | **Nine months ended<br> September 30,** | **Nine months ended<br> September 30,** | **Nine months ended<br> September 30,** |
|  | **2025** | | | **2024** | **2024** |
|  | | **2024**<br>$— | **2025**<br>$— | $— | **$** |
| Consulting fees |  |  |  |  | 382625 |
| Salaries and benefits |  |  |  |  | 35250 |
| Share-based compensation |  |  |  |  | 468761 |
| Total |  |  |  |  | 886636 |

---

Consulting fees were paid or accrued to a private company owned by the Chief Financial Officer of the Company, directly to the Chief Executive Officer, and to the directors of the company. Salaries and benefits were paid to the ex-Chief Financial Officer of the Company. Share-based compensation disclosed in this note represents the compensation earned by officers and directors of the Company.

As at September 30, 2025, included within accounts payable and accrued liabilities is $Nil owed to a related party of the Company (December 31, 2024 - $18,310).

For the nine months ended September 30, 2025 and 2024, one customer, which is controlled by a director of the Company, accounted for 100% of the Company's milling revenue.

***Internal controls and procedures***

During the audit of the 2024 consolidated financial statements, a material weakness in internal controls over financial reporting was identified regarding management's review and assessment of the accounting impact of complex transactions. During the period ended September 30, 2025, the Company has implemented additional controls and procedures to remediate this weakness and to reduce the likelihood of a material misstatement.

The President and Chief Executive Officer and Chief Financial Officer of the Company are responsible for establishing and maintaining appropriate information systems, procedures and controls to ensure that information used internally and disclosed externally is complete, reliable and timely. The Chief Executive Officer and Chief Financial Officer of the Company have filed the Venture Issuer Basic Certificate with the MD&A and the Company's annual consolidated financial statements for the year ended December 31, 2024 and interim period September 30, 2025 on SEDAR+ at <u>http://www.sedarplus.ca</u>.

In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings ("NI 52-109"), the venture issuer basic certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures ("DC&P") and internal control over financial reporting ("ICFR"), as defined in NI 52-109. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost-effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency, and timeliness of interim and annual filings and other reports provided under securities legislation.

Period ended – September 30, 2025 Page 12

Nine months ended September 30, 2025

***Accounting estimates***

The preparation of the Company's consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Such estimates primarily relate to asset retirement obligations. Actual results could differ from those estimates. The significant assumptions about the future and other major sources of estimation uncertainty as at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amounts of the Company's assets and liabilities are described in note 2 of the consolidated financial statements.

***Material Accounting Policy Information***

Please refer to the audited annual consolidated financial statements for the year ended December 31, 2024 and interim period September 30, 2025 that were filed on SEDAR+.

***New Accounting Standards Not Yet Adopted***

The accounting policies adopted in the preparation of these consolidated financial statements have been prepared on the basis of all IFRS and interpretations effective as at September 30, 2025.

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended September 30, 2025, and have not been early adopted in preparing these consolidated financial statements. The Company intends to adopt such standards upon the mandatory effective date.

*<u>IFRS 18 Presentation and Disclosure in Financial Statements</u>*

IFRS 18 introduces three sets of new requirements to give investors more transparent and comparable information about companies' financial performance for better investment decisions.

1. Three defined categories for income and expenses—operating, investing and financing—to improve the structure of the income statement, and require all companies to provide new defined subtotals, including operating profit.

2. Requirement for companies to disclose explanations of management-defined performance measures (MPMs) that are related to the income statement.

3. Enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes.

This new standard is effective for reporting periods beginning on or after January 1, 2027. The Company will be evaluating the impact of the above amendments on its consolidated financial statements.

***Risk and Uncertainties***

As described further below, the Company's business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, tariffs, changes in laws, and national and international circumstances. Recent geopolitical events and potential economic global challenges such as the risk of higher inflation and energy crises, may create further uncertainty and risk with respect to the prospects of the Company's business. These factors represent a material uncertainty that may raise substantial doubt about the Company's ability to continue as a going concern.

Period ended – September 30, 2025 Page 13

Nine months ended September 30, 2025

*The Company may be unable to meet its liquidity requirements for operations.*

There can be no assurance that the amounts of cash from operations, together with amounts raised through financings will be sufficient to fund the Company's ongoing operations and care and maintenance program. If these amounts are insufficient to meet the Company's liquidity requirements, it may have to seek additional financing. There can be no assurance that such additional financing would be available or, if available, offered on acceptable terms. Failure to secure any necessary additional financing would have a material adverse impact on the Company's continued operations and viability.

*Mineral Exploration and Development Activities are Inherently Risky*

The business of exploration for minerals and mining involves a high degree of risk. Few properties that are explored are ultimately developed into mineral deposits with significant value. Unusual or unexpected ground conditions, geological formation pressures, fires, power outages, labour disruptions, flooding, earthquakes, explorations, cave-ins, landslides, and the inability to obtain suitable adequate machinery, equipment or labour are other risks involved in the operation of mines and the conduct of exploration programs. There are also physical risks to the exploration personnel working on the site of a mineral project. The Company's exploration properties and any future mining operations will be subject to all the hazards and risks normally incidental to exploration, development, and production of silver and other metals, any of which could result in damage to or destruction of exploration facilities or mines, damage to life and property, environmental damage, and possible legal liability for any or all damage. Although the Company maintains insurance in an amount, which it considers adequate, the nature of these risks is such that liabilities could exceed policy limits, in which event the Company could incur significant costs that could have a materially adverse effect upon its financial condition.

*Uncertainty of Mineral Resources*

The figures for mineral resources for the Treasure Mountain Project disclosed in the Company's Annual Information Form for the year ended December 31, 2012, and in its technical report filed on SEDAR on June 12, 2012, are only estimates. Mineral reserves at the Treasure Mountain Project have not been defined therefore the mineral resources currently cannot be considered ore.

The figures for Inferred Copper Resource for the Southern Dump and 3060 Portal Dumps at New Craigmont Copper Mine in the Technical Report filed on SEDAR on June 1, 2020, and final ALS Metallurgy Laboratory report for upgrading and copper recovery test work filed on SEDAR on June 12, 2020, are only estimates. The inferred mineral resources are not mineral reserves as the Company has not yet demonstrated the economic viability.

There is no certainty that any expenditures made in the exploration of the Company's mineral properties will result in identification of commercially recoverable quantities of ore or that ore reserves will be mined or processed profitably. In addition, substantial expenditures will be required to develop the mining and processing facilities and infrastructure at any site chosen for mining.

*Uncertainty of Economic Viability of Production from the Treasure Mountain Project*

The Company has not undertaken any preliminary economic assessment or preliminary feasibility study with respect to the Treasure Mountain Project or any of its other projects and does not intend to undertake such a study or assessment. There are significant risks associated with making a production decision without a valid, current, economic analysis and the Company may subsequently determine those recommencing operations at the Treasure Mountain Project is not economically feasible.

*Insurance*

The mining industry is subject to significant risks that could result in damage to or destruction of property and facilities, personal injury or death, environmental damage and pollution, delays in production, expropriation of assets and loss of title to mining claims. No assurance can be given that insurance to cover the risks to which the Company's activities are subject will be available at all or at commercially reasonable premiums. The Company currently maintains insurance within ranges of coverage that it believes to be consistent with industry practice for companies of a similar stage of development, however the insurance the Company has may not be sufficient to cover the full extent of any liabilities that may arise.

Period ended – September 30, 2025 Page 14

Nine months ended September 30, 2025

*Prices, Markets and Marketing of Silver, Gold, and Precious Metal Prices*

World prices for commodities fluctuate and are affected by numerous factors including international economic and political trends, expectations of inflation, currency exchange fluctuations, interest rates, global or regional consumptive patterns, speculative activities, and increased production due to new mine developments and improved mining and production methods. The effect of these factors on the price of commodities, and the resulting impact on the viability of any of the Company's exploration projects, cannot accurately be predicted.

*Liquidity and Capital Requirements*

The Company currently has a working capital and a history of working capital deficits, no history of profitable operations and no assurance that additional funding will be available to it for further exploration and development of any of its projects. The Company may also need further financing if it decides to obtain additional mineral properties or further upgrades to the Merritt Mill. As such, the Company is subject to many risks common to exploration enterprises, including under-capitalization, cash shortages and limitations with respect to personnel, financial and other resources, and lack of revenues. Although the Company has been successful in the past in obtaining financing through credit facilities or the sale of equity securities, there can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Such means of financing typically result in dilution of the positions of existing shareholders, either directly or indirectly. Failure to obtain additional financing could result in the delay or indefinite postponement of further exploration and development of its mineral properties, the loss of substantial dilution of any of its property interests or all the liquidation of all its assets.

*Dependence on Management*

The Company is very dependent upon the personal efforts and commitment of its existing management. To the extent that management's services would be unavailable for any reason, a disruption to the operations of the Company could result, and other persons could be required to manage and operate the Company.

*Environmental Risks*

All phases of the mineral exploration and development business present environmental risks and hazards and are subject to environmental regulations. Compliance with such legislation and regulations can require significant expenditures and a breach could result in the imposition of fines and penalties, some of which may be material. Environmental legislation is evolving in a manner which may lead to stricter standards and enforcement, larger fines and liability and potentially increased capital expenditures and operating costs. No assurance can be given that the application of environmental laws to the business and operations of the Company will not result in a curtailment of exploration or production, material increase in the costs of production, development, or exploration activities, or otherwise adversely affect the Company's financial condition, results of operations or prospects.

*Government Regulation*

The natural resource exploration industry is subject to controls and regulations imposed by various levels of government. It is not expected that any of these controls or regulations will affect the operations of the Company in a manner materially different than they would affect other natural resource exploration companies of similar size. The current legislation is a matter of public record, and the Company is unable to predict what additional legislation or amendments may be enacted.

*Indigenous Peoples' title claims and rights to consultation and accommodation may affect our existing operations as well as development projects and future acquisitions.*

Governments in many jurisdictions must consult Indigenous Peoples with respect to grants of mineral rights and the issuance or amendment of exploration and project authorizations. Consultation and other rights of Indigenous Peoples may require accommodations, including undertakings regarding financial compensation, employment and other matters in impact and benefit agreements. This may affect our ability to acquire, explore or develop, within a reasonable time frame, mineral titles in these jurisdictions and may affect the timetable and costs of development of mineral properties in these jurisdictions. The risk of unforeseen aboriginal title claims also could affect existing operations as well as exploration and development projects and future acquisitions. These legal requirements may increase our operating costs and affect our ability to expand our operations or to explore and develop new projects.

Period ended – September 30, 2025 Page 15

Nine months ended September 30, 2025

*Competition*

The mining industry is intensely competitive in all its phases, and the Company competes with other companies that may have greater financial resources and technical capacity. Competition could adversely affect the Company's ability to acquire suitable properties or prospects in the future. The Company also competes with other mining companies in the recruitment and retention of qualified employees.

*Conflicts of Interest*

The Company's directors and officers may serve as directors or officers of, or may be associated with other reporting companies, or have significant shareholdings in other public companies. To the extent that such other companies may participate in business or asset acquisitions, dispositions, or ventures in which the Company may participate, the directors and officers of the Company may have a conflict of interest in negotiating and concluding terms respecting the transaction. If a conflict of interest arises, the Company will follow the provisions of the *Business Corporations Act* (British Columbia) ("BCBCA") and any other applicable laws and rules dealing with conflicts of interest. These provisions state that where a director has such a conflict, that director must, at a meeting of the Company's directors, disclose his interest and refrain from voting on the matter unless otherwise permitted by the BCBCA. In accordance with the laws of the Province of British Columbia, the directors and officers of the Company are required to act honestly, in good faith and in the best interests of the Company.

*No Current Plans to Pay Cash Dividends*

The Company has no plans to pay any cash dividends for the foreseeable future. Any decision to declare and pay dividends in the future will be made at the discretion of the Board and will depend on, among other things, the Company's financial results, cash requirements, contractual restrictions, and other factors that the Board may deem relevant. In addition, the Company's ability to pay dividends may be limited by covenants of any existing and future outstanding indebtedness that the Company or its subsidiaries incur. As a result, investors may not receive any return on an investment in the Company's securities unless they sell the securities for a price greater than that which they paid for them.

*Economic Conditions*

Unfavourable economic conditions may negatively impact the Company's financial viability. Unfavourable economic conditions could also increase the Company's financing costs, decrease estimated income from prospective mining operations, limit access to capital markets and negatively impact the availability of credit facilities or other financing to the Company.

*Price Volatility of Public Stock*

The market price of the Company's securities has experienced wide fluctuations, which may not necessarily be related to the operating performance, underlying asset values or prospects of the Company. Any market for the Company's securities may be subject to market trends generally and the value of the Company's securities on the Exchange may be affected by such volatility in response to numerous factors, many of which are beyond the Company's control, including:

● actual or anticipated fluctuations in the Company's quarterly results of operations,

● changes in the economic performance or market valuations of other companies that investors deem comparable to the Company,

● the addition or departure of the Company's executive officers or other key personnel,

● release or other transfer restrictions on outstanding Company securities,

● sales or perceived sales of additional Company securities,

Period ended – September 30, 2025 Page 16

Nine months ended September 30, 2025

● significant acquisitions or business combinations, strategic partnerships, joint ventures and or capital commitments by or involving the Company or its competitors,

● news reports relating to trends, concerns, competitive developments and or regulatory changes, and

● other related issues in the Company's industry or target markets.

Financial markets continue to experience significant price and volume fluctuations that have particularly affected the market prices of equity securities of companies and that have, in many cases, been unrelated to the operating performance, underlying asset values or prospects of such companies. Accordingly, the market price of the Company's securities may decline even if the Company's operating results, underlying asset values or prospects have not changed.

Additionally, these factors, as well as other related factors, may cause decreases in asset values that are deemed to be other than temporary, which may result in impairment losses. As well, certain institutional investors may base their investment decisions on consideration of the Company's environmental, governance and social practices and performance against such institutions' respective investment guidelines and criteria, and failure to meet such criteria may result in limited or no investment in the Company's securities by those institutions, which could adversely affect the trading price of the Company's securities. There can be no assurance that fluctuations in price and volume will not occur in the future. If increased levels of volatility and market turmoil occur, the Company's operations may be adversely impacted together with the trading price of the Company's securities may also be adversely affected.

*Regulatory and Permitting*

Regulatory and permitting requirements have a significant impact on the Company's operations and can have a material and adverse effect on future cash flow, results of operations and financial condition. To conduct mineral exploration and mining activities, the Company must obtain or renew exploration or mining permits and licenses in accordance with the relevant mining laws and regulations required by governmental authorities having jurisdiction over mineral projects. There is no guarantee that the Company will be granted the necessary permits and licenses, that they will be renewed, or that the Company will be in a-position to comply with all the conditions that are imposed. Mining is subject to potential risks and liabilities associated with pollution and the disposal of waste from mineral exploration and mining operations. Costs related to discovery, evaluation, planning, designing, developing, constructing, operating, closing, and remediating mines and other facilities in compliance with these laws and regulations are significant. In addition to environmental protection, applicable laws and regulations govern employee health and safety. Not complying with these laws and regulations can result in enforcement actions that may include corrective measures requiring capital expenditures, installation of additional equipment, remedial action, and changes to operating procedures resulting in additional costs and temporary or permanent shutdown of operations. The Company may also be required to compensate those parties' suffering loss or damage and may face civil or criminal fines or penalties for violating certain laws or regulations. Changes to these laws and regulations in the future could have an adverse effect on the Company's cash flow, results of operations and financial condition. Further, the issuance of permits may be subject to review by third parties who may challenge future permitting and the validity of existing permits based on, among other things, the government's obligation to consult and accommodate.

**FORWARD-LOOKING STATEMENT**

This presentation includes "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable securities legislation, which reflect Nicola Mining Inc.'s ("Nicola" or the "Company") current expectations regarding the future results of operations, performance, and achievements. All statements included in this presentation, other than statements of historical fact, are forward-looking statements including, without limitation, the Company's ability to develop its exploration assets via operational cash flow from gold concentrate production; the Company's plans and expectations regarding its proposed exploration program for its Craigmont Copper Project; the Company's plans and expectations regarding future exploration work on the Treasure Mountain Mine, including reopening the mine; the Company's plans and expectations regarding future investments and operations at the Merritt Gold/Silver Mill Facility (the "Merritt Facility"); and statements regarding potential mergers, acquisitions, and joint venture opportunities, including the Letter of Intent announced with Nittestu Mining Co. Ltd. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "estimate", "expect", "potential", "target", "budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof.

Period ended – September 30, 2025 Page 17

Nine months ended September 30, 2025

Forward-looking statements are based on the reasonable assumptions, estimates, analysis and opinions of the management of the Company made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may have caused actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks associated with general economic conditions, including risks related to macro-economic and global financial conditions; inflation; availability of capital; accuracy of the Company's projections and estimates; interest and exchange rates; competition; financing and share price fluctuations; capital expenditures; changes in national and local government regulations; regulatory risks; the ability to retain key personnel necessary to conduct mill operations at the Merritt Facility; decreased demand for copper, gold, silver and other minerals; unexpected difficulties with the milling and extraction of minerals from the Company's projects; delays or difficulties in timing of shipments of concentrates by the Company; operating or technical difficulties; personnel relations; fluctuations in commodity pricing, specifically copper, gold and silver; and any other risks outside the direct control or influence of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information contained herein, except in accordance with applicable securities laws. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's business and the Company's plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. Additional information about these and other risks and uncertainties are set out in the section entitled "Risk Factors" in the Company's MD&A filed on SEDAR+ at <u>www.sedarplus.ca</u>.

**Qualified person**

The scientific and technical disclosures included on this webpage 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.

Period ended – September 30, 2025 Page 18

## Exhibit 4.7

**Exhibit 4.7**

**51-102F3**

**MATERIAL CHANGE REPORT [F]**

**Item 1 Name and Address of Company**

Nicola Mining Inc. (the "**Company**")

3329 Aberdeen Road

Lower Nicola, BC V0K 1Y0

**Item 2 Date of Material Change**

January 9, 2025

**Item 3 News Release**

The news release dated January 13, 2025 was issued by Market News and Stockwatch on January 13, 2025.

**Item 4 Summary of Material Change**

On December 18, 2024, the Company announced that it intends to pay all of the interest owing on the secured convertible debentures (the "**Debentures**") issued on November 21, 2019 by the issuance of common shares (each, a "**Share**") of the Company. The Debentures mature on November 21, 2025 and bear interest ("**Interest**") at a rate of 10% per annum, which Interest is payable under the terms of the Debentures annually, at the option of the Company, in cash or by the issuance of Shares.

The Company paid all of the Interest in Shares to holders of the Debentures to settle the outstanding interest payment obligation for the fifth year of the term of the Debentures.

The Debt Settlement was subject to TSX Venture Exchange (the "**Exchange**") approval. The Company received Exchange approval and issued 1,469,935 Shares at a price of $0.28 per Share in settlement of Interest owing of $411,583.10 (the "**Debt Settlement**") on January 9, 2025. The Shares are subject to a statutory hold period expiring on May 10, 2025.

An Insider of the Company was issued 1,392,856 Shares pursuant to the Debt Settlement, which constituted a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("**MI 61-101**"). The issuance to the insider was exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company's shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the Shares to be issued to the related party will not exceed 25% of the Company's market capitalization. The Company closed on the payment of the Interest in Shares in less than 21 days as the payment of Interest is due pursuant to the terms of the Debentures.

**Item 5 Full Description of Material Change**

*5.1 Full Description of Material Change*

The Company paid all of the Interest in Shares to holders of the Debentures to settle the outstanding interest payment obligation for the fifth year of the term of the Debentures.

The Debt Settlement was subject to Exchange approval. The Company received Exchange approval and issued 1,469,935 Shares at a price of $0.28 per Share in settlement of Interest owing of $411,583.10 on January 9, 2025. The Shares are subject to a statutory hold period expiring on May 10, 2025.

**MI 61-101 Requirements**

Concept Capital Management ("**CCM**"), a 20%+ shareholder of the Company, was issued 1,392,856 Shares in settlement of $390,000 Interest owing. As such, a portion of the Debt Settlement is a "related-party transaction" as such term is defined in MI 61-101.

The following supplementary information is provided in accordance with Section 5.2 of MI 61-101.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *a description of the transaction and its material terms:* 

 

See Item 4 above for a description of the Debt Settlement.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *the purpose and business reasons for the transaction:* 

 

The purpose of the Debt Settlement is to reduce the Company's liabilities while preserving its cash.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *the anticipated effect of the transaction on the issuer's business and affairs:* 

 

The Company does not anticipate any material effect on the Company's business and affairs.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(d)* *a description of:* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *the interest in the transaction of every interested party and of the related parties and associated entities of the interested parties:* 

 

CCM was issued 1,392,856 Shares in settlement of $390,000 worth of Interest.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii)* *the anticipated effect of the transaction on the percentage of securities of the issuer, or of an affiliated entity of the issuer, beneficially owned or controlled by each person or company referred to in subparagraph (i) for which there would be a material change in that percentage:* 

 

The following table sets out the effect of the Debt Settlement on the percentage of securities of the Company beneficially owned or controlled by CCM:

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| | | | | |
|:---|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;&nbsp;&nbsp;**Name and**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Position** | <br>**Dollar**<br>**Amount of**<br>**Shares** | <br>**Number of**<br>**Securities** | **No. of**<br>**Securities**<br>**Held prior to**<br>**the Debt**<br>**Settlement** | <br>**No. of**<br>**Securities Held**<br>**After the Debt**<br>**Settlement** |
| &nbsp;&nbsp;Concept Capital Management 20+ Shareholder | $390000 | 1,392,856<br> Shares | Undiluted:<br> 29,772,803 Undiluted: <br> 17.50%<sup>(2)</sup> | Undiluted:<br> 31,165,659 Undiluted: <br> 18.16%<sup>(5)</sup> |
| &nbsp;&nbsp;Concept Capital Management 20+ Shareholder | $390000 | 1,392,856<br> Shares | Diluted:<br> 92,272,803<sup>(1)</sup> Diluted: <br> 39.66%<sup>(3)</sup> | Diluted: <br> 93,665,659<sup>(4)</sup> Diluted: <sub><br> </sub>40%<sup>(10)</sup> |

---

<sup>(1)</sup> Comprised of: (a) 29,772,803 Shares; and (b) 62,500,000 Shares that may be issuable on conversion of a convertible debenture in the principal amount of $6,250,000, at a deemed conversion price of $0.10 per Share, until November 21, 2025, all of which may be converted within the next 60 days.

 

<sup>(2)</sup> Based on 170,165,191 Shares outstanding prior to the Debt Settlement.

 

<sup>(3)</sup> Based on 232,665,191 Shares comprised of: (a) 170,165,191 Shares outstanding prior to the Debt Settlement; and (b) 62,500,000 Shares that may be issued on conversion of convertible debentures of the Company, all convertible within 60 days.

 

<sup>(4)</sup> Comprised of: (a) 31,165,659 Shares; and (b) 62,500,000 Shares that may be issuable on conversion of a convertible debenture in the principal amount of $6,250,000, at a deemed conversion price of $0.10 per Share, until November 21, 2025, all of which may be converted within the next 60 days.

<sup>(5)</sup> Based on 171,635,126 Shares outstanding after the completion of the Debt Settlement.

 

<sup>(6)</sup> Based on 234,135,126 Shares comprised of: (a) 171,635,126 Shares outstanding after the Debt Settlement; and (b) 62,500,000 Debentures Shares that may be issued on conversion of convertible debentures of the Company, all convertible within 60 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(e)* *unless this information will be included in another disclosure document for the transaction, a discussion of the review and approval process adopted by the board of directors and the special committee, if any, of the issuer for the transaction, including a discussion of any materially contrary view or abstention by a director and any material disagreement between the board and the special committee:* 

 

The board of directors approved the Debt Settlement. A special committee was not established in connection with the approval of the Debt Settlement, and no materially contrary view or abstention was expressed or made by any director.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(f)* *a summary in accordance with section 6.5 of MI 61-101, of the formal valuation, if any, obtained for the transaction, unless the formal valuation is included in its entirety in the material change report or will be included in its entirety in another disclosure document for the transaction:* 

 

Not applicable.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(g)* *disclosure, in accordance with section 6.8 of MI 61-101, of every prior valuation in respect of the issuer that related to the subject matter of or is otherwise relevant to the transaction:* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *that has been made in the 24 months before the date of the material change report:* 

 

Not applicable.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii)* *the existence of which is known, after reasonable enquiry, to the issuer or to any director or officer of the issuer:* 

 

Not applicable.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(h)* *the general nature and material terms of any agreement entered into by the issuer, or a related party of the issuer, with an interested party or a joint actor with an interested party, in connection with the transaction:* 

 

None.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *disclosure of the formal valuation and minority approval exemptions, if any, on which the issuer is relying under sections 5.5 and 5.7 of MI 61-101 respectively, and the facts supporting reliance on the exemptions:* 

 

The Debt Settlement is exempt from the valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in Section 5.5(b) as the Company's shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration of the Shares issued to the related party did not exceed 25% of the Company's market capitalization.

 

As this material change report is being filed less than 21 days before the closing of the Debt Settlement, there is a requirement under MI 61-101 to explain why the shorter period is reasonable or necessary in the circumstances. In the view of the Company, such shorter period is reasonable and necessary in the circumstances because the payment of Interest is due pursuant to the terms of the Debentures.

*5.2 Disclosure for Restructuring Transactions*

Not Applicable

**Item 6 Reliance on subsection 7.1(2) of National Instrument 51-102**

Not Applicable

**Item 7 Omitted Information**

None

**Item 8 Executive Officer**

Peter Espig, President and Chief Executive Officer, 778.385.1213

**Item 9 Date of Report**

January 14, 2025

## Exhibit 4.8

**Exhibit 4.8**

**51-102F3**

**MATERIAL CHANGE REPORT [F]**

**Item 1 Name and Address of Company**

Nicola Mining Inc. (the "**Company**")

3329 Aberdeen Road

Lower Nicola, BC V0K 1Y0

**Item 2 Date of Material Change**

March 12, 2025

**Item 3 News Release**

The news release dated March 12, 2025 was issued by Newsfile on March 12, 2025.

**Item 4 Summary of Material Change**

On March 12, 2025, the Company announced that it has received the Final Permit ("**Final Permit<sup>1</sup>**") to complete a bulk sample<sup>2</sup> at its Dominion Creek Mineral Project ("**Dominion**"), a high grade gold and silver project, of which Nicola owns a 75% economic interest.

The Company is also announced that it has closed a non-brokered private placement which was announced on February 25, 2025. The news release announced a non-brokered private placement consisting of up to 7,142,857 units (each, a **"Unit**") at a price of $0.28 per Unit for gross proceeds of up to $2,000,000. However, given the Company's cash and equivalent position, it was determined that the smaller and less dilutive amount was sufficient.

The Company issued 4,038,955 Units for aggregate gross proceeds of $1,130,907.40 and paid $63,827.36 in finder's fees for net proceeds of $1,067,080.00. The financing is now closed, and the Company will not be seeking additional funds associated with the current financing.

**Item 5 Full Description of Material Change**

*5.1 Full Description of Material Change*

The Company received the Final Permit to complete a bulk sample<sup>2</sup> at Dominion.

The Notice of Work for the Dominion Mineral project was initially filed with the Chief Permitting Officer on Aug 29, 2018 and last updated on Feb 27, 2025. The Final Permit allows Nicola and its partner, High Range Exploration Ltd., to complete a bulk sample prior to Feb 27, 2030, after which only reclamation activities can occur. In addition to the Final Pemit, a Free Use Permit (MX-100000488) was issued to upgrade / complete a short haul road for ore transportation.

The Company announced on <u>March 6, 2025</u> that it has been issued a draft permit by the British Columbia Ministry of Mining and Critical Minerals to extract 10,000 tonnes of gold and silver ore at Dominion, which is located 43 kilometers northeast of the Town of Wells and approximately 110 kilometers east-southeast of Prince George.

<sup>1</sup> Permit Number: MX-100000488 and Mine Number: 1101145

<sup>2</sup> Bulk Sample: An exploration and development activity conducted on a mineral claim to investigate the metallurgical properties of an ore body, to test extractive milling methods, mill equipment, and potential markets.

The two parties are currently in the process of finalizing plans to mobilize and commence ore extraction, which is anticipated to commence in July, 2025.

The Company closed a non-brokered private placement which was announced on February 25, 2025. The news release announced a non-brokered private placement consisting of up to 7,142,857 Units at a price of $0.28 per Unit for gross proceeds of up to $2,000,000. However, given the Company's cash and equivalent position, it was determined that the smaller and less dilutive amount was sufficient.

The Company issued 4,038,955 Units for aggregate gross proceeds of $1,130,907.40 and paid $63,827.36 in finder's fees for net proceeds of $1,067,080.00. The financing is now closed, and the Company will not be seeking additional funds associated with the current financing.

All securities issued in connection with the financing will be subject to a statutory hold period expiring four months and one day after closing of the financing.

None of the securities sold in connection with the financing will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

*5.2 Disclosure for Restructuring Transactions*

Not Applicable

**Item 6 Reliance on subsection 7.1(2) of National Instrument 51-102**

Not Applicable

**Item 7 Omitted Information**

None

**Item 8 Executive Officer**

Peter Espig, President and Chief Executive Officer, 778.385.1213

**Item 9 Date of Report**

March 13, 2025

## Exhibit 4.9

**Exhibit 4.9**

**51-102F3**

**MATERIAL CHANGE REPORT [F]**

**Item 1 Name and Address of Company**

Nicola Mining Inc. (the "**Company**")

3329 Aberdeen Road

Lower Nicola, BC V0K 1Y0

**Item 2 Date of Material Change**

July 17, 2025 and July 21, 2025

**Item 3 News Release**

The news release dated July 17, 2025 was issued by Stockwatch and Market News on July 17, 2025. The news release dated July 21, 2025 was issued by Newsfile Corp. on July 21, 2025.

**Item 4 Summary of Material Change**

The Company announced that, further to its News Release of July 4, 2025, it has completed its non-brokered private placement pursuant to which it sold an aggregate of 4,350,000 units (each, a "**Unit**") at a price of $0.50 per Unit for gross proceeds of $2,175,000 (the "**Offering**"). The Offering was oversubscribed by $175,000.

The Company paid an aggregate of $147,000 to four eligible finders in connection with the Offering.

The Company also announced that it is electing to accelerate the expiry of outstanding common share purchase warrants of the Company originally issued under financings completed on February 25, 2025 (the "**Financings**") exercisable at C$0.40 per common share (collectively, the "**Financing Warrants**").

**Item 5 Full Description of Material Change**

*5.1 Full Description of Material Change*

On July 17, 2025, the Company closed the Offering and issued 4,350,000 Units for gross proceeds of $2,175,000. Each Unit consists of one flow-through common share (each, a "**FT Share**") and one-half of one non-flow-through common share purchase warrant (each whole warrant, a "**Warrant**"). Each Warrant is exercisable at a price of $0.65 and expires 2 years from the issuance date.

Each FT Share of the Company is issued on a "flow-through" basis pursuant to the *Income Tax Act* (Canada) and in accordance with the policies of the TSX Venture Exchange (the "**TSXV**").

The Company paid an aggregate of $147,000 to four eligible finders in connection with the Offering.

All Shares and Warrants issued in connection with the Offering and any Shares issuable on exercise of Warrants, are subject to a statutory hold period expiring four months and one day after closing of the Offering.

The aggregate gross proceeds from the Offering will be used for the further exploration on the Company's wholly owned New Craigmont Project.

None of the securities sold in connection with the financing will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The Company has elected to accelerate the expiry of outstanding Financing Warrants of the Company originally issued under the Financings completed on February 25, 2025.

Pursuant to the terms of the Financing Warrants, the Company may accelerate the expiry date of the Financing Warrants if the closing price of the Company's common shares on the TSXV equals or exceeds C$0.60 for 10 consecutive trading days (the "**Acceleration Period**"), to the date which is 30 days following the dissemination of a news release announcing the acceleration. As the closing price of the Company's common shares has equaled or exceeded C$0.60 per share over each of the last 10 trading days ended July 21, 2025, on the TSXV, it hereby provides notice of the Acceleration Period in accordance with the terms of the Financing Warrants. The Company is exercising its right to accelerate the expiry of the Financing Warrants originally issued under the Financings to 5:00 p.m. (Toronto Time) on August 20, 2025 (the "**Accelerated Expiry Date**"). Any Financing Warrants remaining unexercised after the Accelerated Expiry Date will expire and be of no force and effect.

Proceeds from the exercise of the Financing Warrants will be used for general working capital purposes, which may include funding exploration and milling activities.

*5.2 Disclosure for Restructuring Transactions*

Not Applicable

**Item 6 Reliance on subsection 7.1(2) of National Instrument 51-102**

Not Applicable

**Item 7 Omitted Information**

None

**Item 8 Executive Officer**

Peter Espig, President and Chief Executive Officer, 778.385.1213

**Item 9 Date of Report**

July 23, 2025

## Exhibit 4.10

**Exhibit 4.10**

**51-102F3**

**MATERIAL CHANGE REPORT [F]**

**Item 1 Name and Address of Company**

Nicola Mining Inc. (the "**Company**")

3329 Aberdeen Road

Lower Nicola, BC V0K 1Y0

**Item 2 Date of Material Change**

September 16, 2025

**Item 3 News Release**

The news release dated September 22, 2025 was issued by Stockwatch and Market News on September 22, 2025.

**Item 4 Summary of Material Change**

The Company announced that an aggregate of $3,900,000 convertible debentures (the "**Convertible Debentures**") maturing on November 21, 2025 has been converted into 22,941,177 common shares (each, a "**Share**") of the Company at a conversion price of $0.17 per Share and an aggregate of $312,000 in interest pursuant to the Convertible Debentures has been converted into 385,185 Shares at a conversion price of $0.81 per Share.

**Item 5 Full Description of Material Change**

*5.1 Full Description of Material Change*

On September 16, 2025, the Company issued 22,941,177 Shares at a conversion price of $0.17 per Share pursuant to the conversion of an aggregate of $3,900,000 Convertible Debentures and 385,185 Shares at a conversion price of $0.81 per Share pursuant to the conversion of an aggregate of $312,000 in interest.

*5.2 Disclosure for Restructuring Transactions*

Not Applicable

**Item 6 Reliance on subsection 7.1(2) of National Instrument 51-102**

Not Applicable

**Item 7 Omitted Information**

None

**Item 8 Executive Officer**

Peter Espig, President and Chief Executive Officer, 778.385.1213

**Item 9 Date of Report**

September 25, 2025

## Exhibit 4.11

**Exhibit 4.11**

**51-102F3**

**MATERIAL CHANGE REPORT [F]**

**Item 1 Name and Address of Company**

Nicola Mining Inc. (the "**Company**")

3329 Aberdeen Road

Lower Nicola, BC V0K 1Y0

**Item 2 Date of Material Change**

September 24, 2025

**Item 3 News Release**

The news release dated October 6, 2025 was issued by Stockwatch and Market News on October, 2025.

**Item 4 Summary of Material Change**

On October 6, 2025, the Company announced that it has engaged the services of Atrium Research Corporation ("**Atrium**"), a leading company sponsored research firm. Atrium will publish various research reports on the Company based on publicly available information, industry data, and discussions with management. Atrium will also host four recorded interviews with the Company's management team to present the investment case in an interview format. In exchange for its research services, Atrium will receive cash compensation in the amount of $2,900 per month for the services listed above. The services will be provided for 24 months beginning on October 15<sup>th</sup>, 2025. This engagement is subject to TSX Venture Exchange (the "**Exchange**") approval.

**Item 5 Full Description of Material Change**

*5.1 Full Description of Material Change*

The Company engaged the services of Atrium, a leading company sponsored research firm. Atrium will publish various research reports on the Company based on publicly available information, industry data, and discussions with management. Atrium will also host four recorded interviews with the Company's management team to present the investment case in an interview format. In exchange for its research services, Atrium will receive cash compensation in the amount of $2,900 per month for the services listed above. The services will be provided for 24 months beginning on October 15<sup>th</sup>, 2025. This engagement is subject to Exchange approval.

Atrium and the Company are arm's- length parties, and neither Atrium nor its insiders holds any shares or options to purchase shares in the issued and outstanding capital of the Company.

**About Atrium Research**

Atrium Research provides institutional quality company sponsored research on public equities in North America. Its investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Its research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, and an in-depth valuation analysis. Atrium Research is wholly owned and operated by its Co-Founders, Ben Pirie and Nicholas Cortellucci.

*5.2 Disclosure for Restructuring Transactions*

Not Applicable

**Item 6 Reliance on subsection 7.1(2) of National Instrument 51-102**

Not Applicable

**Item 7 Omitted Information**

None

**Item 8 Executive Officer**

Peter Espig, President and Chief Executive Officer, 778.385.1213

**Item 9 Date of Report**

October 9, 2025

## Exhibit 5.1

Exhibit 5.1

![](tm264113d4_ex5-1img001.jpg)

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation by reference in the short form base shelf prospectus dated January 29, 2026, which is a part of the Registration Statement on Form F-10 of Nicola Mining Inc. (the "Company"), of our report dated January 23, 2026 relating to the audited amended consolidated financial statements of the Company for the years ended December 31, 2024 and 2023.

---

| | |
|:---|:---|
|  | **/s/ DAVIDSON & COMPANY LLP** |
| Vancouver, Canada | Chartered Professional Accountants |

---

January 29, 2026

![](tm264113d4_ex5-1img002.jpg)

## Exhibit 5.2

**Exhibit 5.2**

**January 29, 2026**

To: Nicola Mining Inc.

Suite 1212 – 1030 West Georgia Street

Vancouver, BC V6E 2Y3, Canada

**Consent of Expert**

In connection with the Registration Statement on Form F-10 of Nicola Mining Inc. (the "**Registration Statement**"), I, Kevin Wells, P. Geo., hereby consent to the references in the Registration Statement to my name and the technical report entitled "NI 43-101 Technical Report on the Preliminary Copper Resource for the Southern Dump and 3060 Portal Dumps" with an effective date of May 21, 2020 (the "**Technical Report**") and to the inclusion or incorporation by reference in the Registration Statement of written disclosure from the Technical Report and extracts from or a summary of the Technical Report.

---

| |
|:---|
| */s/ Kevin Wells* |
| Kevin Wells, P. Geo. |

---

## Exhibit 5.3

**Exhibit 5.3**

**January 29, 2026**

To: Nicola Mining Inc.

Suite 1212 – 1030 West Georgia Street

Vancouver, BC V6E 2Y3, Canada

**Consent of Expert**

In connection with the Registration Statement on Form F-10 of Nicola Mining Inc. (the "**Registration Statement**"), I, James N Gray, P. Geo., hereby consent to the references in the Registration Statement to my name and the technical report entitled "NI 43-101 Technical Report on the Preliminary Copper Resource for the Southern Dump and 3060 Portal Dumps" with an effective date of May 21, 2020 (the "**Technical Report**") and to the inclusion or incorporation by reference in the Registration Statement of written disclosure from the Technical Report and extracts from or a summary of the Technical Report.

---

| |
|:---|
| */s/ James N. Gray* |
| James N. Gray, P. Geo. |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **F-10**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **NICOLA MINING INC.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation Rule or Instruction**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
|  |  | Equity | Common Shares | 457(o) |  |  |  |
|  |  | Other | Warrants | 457(o) |  |  |  |
|  |  | Other | Subscription Receipts | 457(o) |  |  |  |
|  |  | Other | Units | 457(o) |  |  |  |
|  |  | Equity | Common Shares Represented by Depositary Shares | 457(o) |  |  |  |
|  |  | Debt | Debt Securities | 457(o) |  |  |  |
| Fees to be Paid | 1 | Unallocated (Universal) Shelf |  | 457(o) | $25000000.00 | 0.0001381 | $3452.50 |
| Fees Previously Paid |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $25000000.00  |  | $3452.50  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $3452.50  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> There are being registered under this registration statement on Form F-10 (the "Registration Statement") such indeterminate number of common shares, warrants, subscription receipts, units, common shares represented by depositary shares and debt securities (the "Securities") of Nicola Mining Inc. (the "Registrant") as shall have an aggregate initial offering price not to exceed $25,000,000. The proposed maximum initial offering price per Security will be determined, from time to time, by the Registrant in connection with the sale of the Securities under this Registration Statement. In U.S. dollars or the equivalent thereof in Canadian dollars or one or more foreign currencies or composite currencies based on the exchange rate at the time of sale.

---

| | |
|:---|:---|
| | |
| **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |
| **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Securities Previously Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price of Securities Previously Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Form Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **File Number**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Initial Effective Date**  |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |

---