Nicola Mining Inc. (TSX.V: NIM) (OTCQB: HUSIF) Extends $2 Million Credit Line to Support Gold Production, Key Partners

• The credit facility provides Blue Lagoon access to C$2 million over a 12-month term and underlies Nicola’s confidence in the project’s near-term production trajectory.
• Nicola CEO praised Blue Lagoon’s disciplined execution, noting the company’s thorough permitting navigation and strong community engagement.
• This move exemplifies Nicola’s strategic model, which links its Merritt milling infrastructure and tailings facility to nearby projects.

Nicola Mining (TSX.V: NIM) (OTCQB: HUSIF) has taken a significant step in fostering industry collaboration and bolstering regional gold development with its announcement of a $2 million line of credit to strategic partner Blue Lagoon Resources Inc. The move reflects Nicola’s mission to support responsible mining initiatives in British Columbia and aligns with its vertically integrated approach that combines milling capabilities with financial facilitation.

According to the announcement, the unsecured credit facility provides Blue Lagoon access to $2 million over a 12-month term, with repayments tied to interest-only payments during the first 11 months and an option to extend for another year under revised terms (https://ibn.fm/q7HZO). The loan is linked to Secured Overnight Financing Rate (“SOFR”) and requires no collateral against Blue Lagoon’s Dome Mountain property or other assets, underlining Nicola’s confidence in the project’s near-term production trajectory. If Blue Lagoon does draw on the facility, Nicola will hold a short-term security interest over Dome Mountain’s gold and silver production pending repayment.

Blue Lagoon Resources, which recently secured one of only nine full mining permits issued in British Columbia since 2015, is preparing to begin production at its high-grade Dome Mountain gold project later this year. Leading up to the credit facility, the company has strengthened its balance sheet via equity financing, backed by major investors such as Crescat Capital and Phoenix Gold Fund. Blue Lagoon currently carries no short-term debt and holds more than US$3.6 million in in-the-money warrants.

Nicola president and CEO Peter Espig praised Blue Lagoon’s disciplined execution, noting the company’s thorough permitting navigation and strong community engagement, factors that influenced Nicola’s decision to provide the unsecured credit line. “We’ve worked closely with the Blue Lagoon team for some time and continue to be impressed by their methodical and disciplined approach,” said Espig. “Successfully navigating BC’s rigorous permitting process, while also building a strong, trust-based relationship with the Lake Babine Nation, speaks volumes about their leadership. We are pleased to provide this credit facility and look forward to supporting their transition to gold and silver production.”

This move exemplifies Nicola’s strategic model, which links its Merritt milling infrastructure and tailings facility to British Columbian projects. Merritt Mill stands as the only facility in British Columbia permitted to process third-party gold and silver mill feed from across the province. Since 2016, Nicola has entered into several profit-share agreements with mining companies, allowing its fully permitted mill to act as a critical partner, processing ore and providing liquidity for regional exploration partners (https://ibn.fm/eWE0W). Extending a $2 million credit facility further advances this integrated approach by providing Blue Lagoon a flexible financial buffer as the company accelerates its growth.

The non-dilutive nature of the deal is particularly advantageous. Blue Lagoon’s ability to access funding without issuing new equity helps preserve shareholder value ahead of the planned production ramp-up. With an expected start of gold production in Q3 2025, access to this credit line adds resilience and optionality, while minimizing financial constraints.

The timeline is aggressive but promising. Blue Lagoon closed its mine permit in February 2025 and anticipates entering the Dome Mountain gold mine later this year. The financial buffer offered through Nicola’s credit line supports this trajectory by cushioning working capital needs or allowing the company to pursue additional opportunities with speed and confidence.

This development not only bolsters Blue Lagoon’s operational momentum but also showcases Nicola Mining’s evolving role as a strategic partner. Nicola’s Merritt mill is a tangible asset that transforms ore from nearby juniors into marketable concentrate, and this commitment of capital emphasizes its position as a catalyst for regional growth. As more junior developers initiate cash flow plans, partnerships like Nicola and Blue Lagoon highlight the value of combining milling infrastructure with financial support to accelerate resource development.

For Nicola shareholders, this move reinforces the company’s broader growth strategy. Nicola is not only pursuing its own exploration and mining assets, such as its New Craigmont copper and Treasure Mountain silver projects, but also capitalizing on its milling infrastructure through partnerships with growth-stage producers such as Blue Lagoon. This diverse approach provides Nicola with multiple revenue streams and a lucrative exposure to near-term producers processing ore.

While BC’s mining landscape continues to evolve, Nicola Mining’s decision to offer an unsecured credit line to a production-stage partner underscores its innovative, asset-driven strategy. By combining technical, financial and infrastructure capabilities, Nicola is accelerating the growth of BC’s junior mining industry, setting a model for collaboration, operational efficiency and partner support.

For more information, visit www.NicolaMining.com.

NOTE TO INVESTORS: The latest news and updates relating to HUSIF are available in the company’s newsroom at https://ibn.fm/HUSIF

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