KNT.TO · 2018-05-17 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

May 17, 2018 Vancouver, British Columbia

K92 MINING INC.

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

 Drill Hole KMDD0086 records multiple intersections including 4.20 m at 116.43 g/t

Au, 6 g/t Ag and 0. 36% Cu (117.06 g/t Au Eq) plus 2.40 m at 22.41 g/t Au, 5 g/t Ag

and 0.88% Cu (23.82 g/t AuEq)

 Drill Hole KMDD0088 records multiple intersections including 12.64 m at 8.34 g/t

Au, 33 g/t Ag and 2.1% Cu (11.97 g/t AuEq)

K92 Mining Inc. – TSX-V: KNT (“K92”) is pleased to announce results from the continuing

grade control drilling of the Kora North Extension.

Results from Hole KMDD00 86 included 4.20 m at 116.43 g/t Au, 6 g/t Ag and 0.36% Cu

(117.06 g/t Au Eq) plus 2.40 m at 22.41 g/t Au, 5 g/t Ag and 0.88% Cu (23.82 g/t AuEq) plus

2.15 m at 11.49 g/t Au, 2 g/t Ag and 0..60% Cu (12.44 g/t Au Eq) plus 5.90 m at 9.81 g/t Au, 22

g/t Ag and 3.00% Cu (14.68 g/t AuEq), while Hole KMDD0088 recorded 3.46 m at 5.35 g/t Au,

2 g/t Ag and 0.34% Cu ( 5.90 g/t AuEq) plus 12.64 m at 8.34 g/t Au, 33 g/t Ag and 2. 10% Cu

(11.97 g/t AuEq) plus 2.15 m at 12.50 g/t Au, 17 g/t Ag and 2.85% Cu (17.06 g/t AuEq).

The results from DDC 3 are now the furthest drilled to the south and continue to confirm the

consistency of both the K1 and K2 lodes within this area while also further delineating the KL

structure and confirming its continuity. A plan showing the Kora North development, location of

the three diamond drill cuddies and of the latest grade control drill holes is provided below.

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

KMDD0086 is the highest yet recorded at 117 g/t AuEq over 4.2 metres, while the K2

intersection reported in hole KMDD0088 at 12.64 or 8.3 metres true thickness and assaying at

11.97 g/t AuEq, is the widest yet recorded. These ho les are now the furthest drilled to the south,

being less than 200 metres along strike from the know Kora resource and have again increased

our confidence in the continuity of these Kora veins”.

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

holes drilled into the Kora North Vein system from DDC 3. 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

KMDD0086 47.35 51.55 4.20 3.23 116.43 5.73 0.36 117.06 K1E

including 47.35 48.00 0.65 0.50 639.00 17.00 1.08 640.87

including 48.00 48.40 0.40 0.31 3.17 3.00 0.66 4.21

including 48.40 48.85 0.45 0.35 0.75 3.00 0.18 1.07

including 48.85 50.00 1.15 0.88 0.72 1.00 0.16 0.98

including 50.00 51.55 1.55 1.19 45.96 6.00 0.16 46.28

KMDD0086 52.60 55.00 2.40 1.84 22.41 5.15 0.88 23.82 K1W

including 52.60 53.00 0.40 0.31 130.30 4.00 0.61 131.28

including 53.00 54.05 1.05 0.81 1.18 3.00 0.85 2.52

including 54.05 55.00 0.95 0.73 0.44 8.00 1.04 2.13

KMDD0086 55.60 57.75 2.15 1.65 11.49 2.08 0.60 12.44 KL

including 55.60 57.00 1.40 1.08 6.65 0.50 0.11 6.82

including 57.00 57.35 0.35 0.27 0.41 0.50 0.18 0.69

including 57.35 57.75 0.40 0.31 38.13 9.00 2.71 42.38

KMDD0086 65.00 70.90 5.90 5.03 9.81 21.69 3.00 14.68 K2

including 65.00 65.75 0.75 0.64 6.56 3.00 0.34 7.11

including 65.75 66.75 1.00 0.85 7.12 11.00 0.21 7.59

including 66.75 67.75 1.00 0.85 21.63 6.00 0.20 22.01

including 67.75 68.80 1.05 0.90 9.12 3.00 0.28 9.58

including 68.80 69.83 1.03 0.88 7.83 36.00 7.42 19.64

including 69.83 70.90 1.07 0.91 6.12 64.00 8.53 19.98

KMDD0088 81.54 85.00 3.46 2.40 5.35 1.74 0.34 5.90 K1E

including 81.54 82.10 0.56 0.39 0.84 4.00 1.27 2.83

including 82.10 82.54 0.44 0.30 31.98 3.00 0.55 32.86

including 82.54 83.26 0.72 0.50 1.04 1.00 0.14 1.26

including 83.26 85.00 1.74 1.20 1.85 1.00 0.08 1.99

KMDD0088 89.30 90.10 0.80 0.55 10.32 4.00 0.69 11.42 KL

KMDD0088 96.31 108.95 12.64 8.31 8.34 33.04 2.10 11.97 K2

including 96.31 97.10 0.79 0.52 0.83 14.00 1.65 3.54

including 97.10 97.53 0.43 0.28 0.91 23.00 2.36 4.81

including 97.53 98.20 0.67 0.44 32.53 81.00 4.18 39.96

including 98.20 99.20 1.00 0.66 25.18 31.00 2.26 29.02

including 99.20 100.50 1.30 0.85 12.21 61.00 6.19 22.46

including 100.50 101.30 0.80 0.53 20.07 25.00 0.51 21.17

including 101.30 102.22 0.92 0.60 3.30 2.00 0.28 3.76

including 102.22 103.44 1.22 0.80 0.83 1.00 0.36 1.39

including 103.44 103.97 0.53 0.35 2.65 141.00 5.17 12.34

including 103.97 104.70 0.73 0.48 1.60 24.00 1.56 4.30

including 104.70 106.10 1.40 0.92 9.20 12.00 0.58 10.25

including 106.10 106.92 0.82 0.54 0.42 1.00 0.63 1.40

including 106.92 107.64 0.72 0.47 0.94 7.00 0.81 2.27

including 107.64 107.94 0.30 0.20 1.16 31.00 1.32 3.58

including 107.94 108.60 0.66 0.43 6.25 127.00 5.33 16.02

including 108.60 108.95 0.35 0.23 1.30 3.00 0.85 2.64

KMDD0088 122.21 124.36 2.15 1.41 12.50 16.52 2.85 17.06 K2H

including 122.21 122.61 0.40 0.26 3.47 16.00 0.25 4.06

including 122.61 122.97 0.36 0.24 0.37 4.00 0.33 0.93

including 122.97 123.35 0.38 0.25 0.39 14.00 5.84 9.51

including 123.35 123.67 0.32 0.21 0.34 3.00 0.31 0.86

including 123.67 124.36 0.69 0.45 36.37 31.00 5.19 44.70

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

KMDD0086 58901.12 29868.46 1190.97 14.3 245.9 179.2 Kora

KMDD0088 58899.98 29868.71 1189.89 -3.26 221.8 150.6 Kora

The current Kora/Eutompi inferred resource, as defined by previous drilling to date, 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 c ash 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 o f 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 Kora 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.) p er 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 silve r 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 miner al resources that are considered too

speculative geologically to have 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