KNT.TO · 2018-06-04 12:00:00

K92 Announces Further High-Grade Kora Drill Results from Kora Northern Extension

Drill Results

Suite 488 – 1090 West Georgia Street

Vancouver, British Columbia

Canada V6E 3V7

Telephone: (604) 687-7130

Facsimile: (604) 608-9110

NEWS RELEASE

June 4, 2018 Vancouver, British Columbia

K92 MINING INC.

K92 Announces Further High-Grade Kora Drill Results from Kora Northern Extension

 Drill Hole KMDD0090 records multiple intersections including:

o K1 intersection of 7.72 m at 25.60 g/t Au, 3 g/t Ag and 0. 45% Cu ( 26.33 g/t

AuEq)

o KL intersection of 11.00 m at 10.46 g/t Au, 20 g/t Ag and 0.43% Cu (11.36 g/t

AuEq)

o K2 intersection of 9.35 m at 11.70 g/t Au, 24 g/t Ag and 3.59% Cu (17.50 g/t

AuEq)

K92 Mining Inc. (TSX-V: KNT; OTCQX: KNTNF) (“K92” or the “Company” ) is pleased to

announce results from the continuing grade control drilling of the Kora North Extension.

Results from Hole KMDD0090 included 7.72 m at 25.60 g/t Au, 3 g/t Ag and 0.45% Cu (26.33

g/t AuEq), 11.00 m at 10.46 g/t Au, 20 g/t Ag and 0.43% Cu (11.36 g/t AuEq) and 9.35 m at 11.70

g/t Au, 24 g/t Ag and 3.59% Cu (17.50 g/t AuEq). See Table 1 below for a summary of drill results

including true widths.

The results from DDC3 continue to extend both the K1 and K2 lodes to the south while also further

delineating the KL structure and confirming its continuity. A plan showing the location of

KMDD0090 relative to the Kora North development and diamond drill cuddy three (“DDC3”) is

provided below.

John Lewins , K92 Chief Executive Officer and Director, states, “The K1 intersection in hole

KMDD0090 provides further confirmation of the continuity of the very high grades which we are

currently mining from the K1 lode to the south and up dip. The K2 intersection likewise shows the

continuity of the K2 lode and a general trend of increasing copper grades to the south. The K2

intersection recorded in this hole is now under 150 metres along strike from the deepest hole

drilled from surface by Barrick”.

Table 1 below provides a summary of the results from KMDD0090 diamond grade control drill

hole drilled from DDC3. Table 2 provides details of collar location and hole orientation.

Table 1.0 Kainantu Gold Mine – Significant Intercepts from Kora Diamond Drill Cuddy 3

Hole_id From

(m) To (m) Interval

(m)

True

width

(m)

Gold

g/t

Silver

g/t

Copper

Gold

equivalent Comment

KMDD0090 74.00 81.72 7.72 3.85 25.60 3 0.45 26.33 K1

Including 74.00 75.00 1.00 0.50 9.00 1 0.14 9.23

Including 75.53 76.12 0.59 0.29 2.15 1 0.79 3.36

Including 76.12 76.40 0.28 0.14 6.40 1 1.53 8.75

Including 76.40 77.05 0.65 0.32 2.82 2 1.01 4.38

Including 77.05 78.04 0.99 0.49 94.80 13 0.22 95.30

Including 78.04 78.95 0.91 0.45 22.60 4 0.65 23.64

Including 78.95 79.30 0.35 0.17 19.24 2 0.41 19.90

Including 79.30 79.60 0.30 0.15 5.08 1 0.04 5.15

Including 79.60 80.35 0.75 0.37 50.12 3 0.33 50.66

Including 80.35 81.30 0.95 0.47 2.12 1 0.16 2.38

Including 81.30 81.72 0.42 0.21 51.01 5 0.48 51.81

KMDD0090 91.00 102.00 11.00 5.48 10.46 20 0.43 11.36 KL

Including 91.00 92.10 1.10 0.55 2.44 3 0.32 2.96

Including 92.10 93.40 1.30 0.65 3.26 1 0.13 3.47

Including 93.40 94.20 0.80 0.40 4.47 5 0.18 4.81

Including 94.20 95.00 0.80 0.40 1.45 11 0.46 2.29

Including 95.00 96.00 1.00 0.50 15.62 59 0.68 17.41

Including 96.00 96.80 0.80 0.40 5.48 31 0.74 7.00

Including 96.80 97.30 0.50 0.25 1.82 30 0.62 3.16

Including 97.30 97.80 0.50 0.25 1.13 31 1.31 3.53

Including 97.80 98.70 0.90 0.45 7.86 13 0.32 8.52

Including 98.70 99.70 1.00 0.50 14.31 32 0.33 15.23

Including 99.70 100.40 0.70 0.35 17.89 11 0.46 18.73

Including 100.40 102.00 1.60 0.80 30.04 20 0.30 30.76

KMDD0090 105.00 114.35 9.35 6.85 11.70 24 3.59 17.50 K2

Including 105.00 105.36 0.36 0.26 20.87 89 14.82 44.68

Including 105.36 105.70 0.34 0.25 0.74 1 1.12 2.47

Including 105.70 106.27 0.57 0.42 0.41 36 11.71 18.78

Including 106.27 106.80 0.53 0.39 0.11 28 5.29 8.56

Including 106.80 107.70 0.90 0.66 1.25 32 6.62 11.79

Including 107.70 108.25 0.55 0.40 11.62 8 0.13 11.91

Including 108.25 109.30 1.05 0.77 0.97 41 5.29 9.58

Including 109.30 110.10 0.80 0.59 0.90 38 3.20 6.28

Including 110.10 111.40 1.30 0.95 0.96 16 1.14 2.90

Including 111.40 112.70 1.30 0.95 68.33 15 0.45 69.21

Including 112.70 113.10 0.40 0.29 2.03 13 1.54 4.55

Including 113.10 114.35 1.25 0.92 0.93 7 1.25 2.93

Notes

Gold Equivalent uses Copper price – US$2.90/lb; Silver price US$16.5/oz and Gold price of US$1300/oz

Table 2.0 Kainantu Gold Mine – Collar Locations for Kora Underground Diamond Drilling

Hole_id Collar location Collar orientation EOH

depth (m) Lode

Local

north

Local

East mRL Dip Local

azimuth

KMDD0090 58899.60 29868.47 1191.61 22.8 220.9 139.2 Kora

The current Kora/Eutompi inferred resource, as defined by previous drilling and prior to the

discovery of the northern extension of Kora by K92, is 4.36 million tonnes at a grade of 7.3 g/t

Au, 35 g/t Ag and 2.23 per cent Cu, or 11.2 g/t gold equivalent (see attached table) and is open for

expansion at depth and in both directions along strike.

K92 has filed and made available for download on the Company's SEDAR profile a technical

report titled "Independent Technical Report, Mineral Resource Update and Preliminary Economic

Assessment of Irumafimpa and Kora Gold Deposits, Kainantu Project, Papua New Guinea," with

an effective date of March 2, 2017, that provides additional information on the geology of the

deposits, drilling and sampling procedures, lab analysis, and quality assurance/quality control for

the project, and additional details on the resource estimates.

The PEA estimates for Kora, based on the current resource estimates (4.36 million tonnes of 7.3

g/t Au, 35 g/t Ag and 2.23 per cent Cu):

 Over a nine-year operating life, the plant would treat 3.2 million tonnes averaging 7.1 g/t

Au, 25 g/t Ag and 1.7 per cent Cu (9.3 g/t AuEq (1));

 This would generate an estimated positive cash flow of $537 -million (U.S.) using current

metal prices if 15-metre levels are used in mining; if 25-metre levels are used, then net cash

flows are estimated as $558-million (U.S.); this cash flow includes conceptual allowances

for capital;

 Production of an estimated average of 108,000 AuEq (1) ounces per annum over an eight-

year period from year 2 through to year 9;

 An estimated pretax net present value (NPV) of $415 -million (U.S.) for 25 -metre levels,

or $397-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and

a 5-per-cent discount;

 An estimated after-tax NPV of $329 -million (U.S.) for 25 -metre levels, or $316 -million

(U.S.) for 15 -metre levels, using current metal prices, exchange rates and a 5 -per-cent

discount;

 Initial capital cost is estimated to be $13.8-million (U.S.), including the $3.3-million (U.S.)

for the plant upgrade identified in the Mincore scoping study, but excluding the proposed

Kora exploration inclines and diamond drilling; sustaining capital cost is estimated to a

further $64-million (U.S.) spent over the life of the K ora mining for 25 -metre levels, or

$83-million (U.S.) for 15-metre levels;

 Operating cost per tonne is estimated to be $125 (U.S.) per tonne for 25 -metre levels, or

$126 (U.S.) per tonne for 15-metre mining levels;

 Excluding initial capital expenditure of $14-million (U.S.), cash cost is estimated to be

$547 (U.S.) per ounce AuEq (inclusive of a 2.5-per-cent net smelter return (NSR) royalty)

and all -in sustaining cost (AISC) of $619 (U.S.) per ounce AuEq for 25 -metre mining

levels, or $549 (U.S.) per ounce (inclusive of a 2.5 -per-cent NSR royalty) and AISC of

$644 (U.S.) per ounce AuEq for 15-metre mining levels.

Metal prices used were $1,300 per ounce for gold, $18 (U.S.) per ounce for silver and $4,800 per

tonne for copper.

(1) Gold equivalent calculated on above metal prices.

Kora remains open for expansion in every direction and strongly mineralized at the extent of all

drilling.

The PEA is preliminary in nature and includes inferred mineral resources that are considered too

speculative geologically to ha ve the economic considerations applied to them that would enable

them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

The technical report contains a full description of all underlying assumptions relating to the PEA.

Mineral resources that are not mineral reserves and do not have demonstrated economic viability.

Table 3.0 IRUMAFIMPA AND KORA/EUTOMPI RESOURCES

Resource by Deposit and Category

Deposit Resource