Nicola Mining Inc. (NASDAQ:NICM) (TSXV:NIM) (FSE: HLIA), (the "Company" or "Nicola") is pleased to announce that it and Red Eye Resources Ltd. ("Red Eye Resources") have signed a Mining and Milling Profit Share Agreement (the "Agreement"). Pursuant to the Agreement, Red Eye Resources may transport qualifying mineralized material to Nicola's Merritt Mill, located near Merritt, British Columbia, for processing.

Red Eye Resources is a privately held mineral exploration and project-generation company based in British Columbia. The company maintains a portfolio of precious metal prospects and its supported by a team with decades of experience in British Columbia's mining and exploration industry. The Agreement will focus exclusively on precious-metal opportunities, with profits generated under the arrangement to be shared equally between Nicola and Red Eye Resources.