Nicola Mining Inc. (NASDAQ: NICM) announced results of an independent underground inspection at its Treasure Mountain Silver Mine (Permit M-239), located approximately 30 kilometres northeast of Hope, British Columbia, with plans to recommence operations in 2027.

McElhanney Ltd., an independent Canadian engineering and consulting firm, conducted the inspection on July 27, 2026, covering both Portal 1 (Level 1) and Portal 2 (Level 2), along with underground workings and surface infrastructure.

The assessment found both portals accessible and generally intact, with minimal evidence of sloughing or burial. Access roads were passable by standard pickup truck. No flooded workings or major inaccessible collapse zones were encountered, and atmospheric conditions remained acceptable throughout the inspection. Natural ventilation pathways were found to be functioning, and much of the historical underground infrastructure remains in place after approximately 13 years of inactivity.

Existing compressed-air lines, water lines, and portions of electrical distribution infrastructure were found throughout accessible workings, though these systems will require assessment and possible replacement or upgrading before recommissioning. Localized rehabilitation, scaling, and support replacement will also be required, particularly near the Portal 2 entrance.

Inspectors also observed a significant volume of muck material in a crosscut near the Level 1 portal, which McElhanney noted could represent broken ore from historical mining or development. Nicola intends to evaluate the material through sampling and assaying following establishment of safe access.

The next phase of evaluation is expected to include a detailed geotechnical and rehabilitation assessment, followed by surveying and mapping of underground workings. Nicola would then reconcile the updated survey with historical mine plans, geological models, and production records.

CEO Peter Espig stated: "Treasure Mountain is not simply an exploration concept; it is an existing underground mine with considerable historical development already completed. Combined with Nicola's permitted Merritt milling infrastructure, we believe this provides the Company with a differentiated opportunity to evaluate a disciplined and capital-efficient pathway toward renewed silver production."