KNT.TO · 2018-11-13 12:00:00

K92 Announces Increased Resource FOR Kora North Highlights Include:

Resource Estimates

Suite 488 – 1090 West Georgia Street

Vancouver, British Columbia

Canada V6E 3V7

Telephone: 1 (604) 687-7130

Facsimile: 1 (604) 608-9110

NEWS RELEASE

November 13, 2018 Vancouver, British Columbia

K92 ANNOUNCES INCREASED RESOURCE FOR KORA NORTH

HIGHLIGHTS INCLUDE:

 The updated Mineral R esource estimate for the Kora North deposit comprises a

Measured Resource of 154,000 tonnes @ 18.7 g/t Au, 8.9 g/t Ag and 0.5% Cu; an

Indicated Resource of 690,000 tonnes @ 11.6 g/t Au, 14.1 g/t Ag and 0.8% Cu and

an Inferred Resources of 1 .92 million tonnes @ 11.4 g/t Au, 13.1 g/t Ag and 0.7%

Cu.

 The total Measured, Indicated and Inferred Resource co vers an area of

approximately 400 to 5 00 metres on strike by 200 to 3 50 metres vertically,

representing approximately 1 5% of the target area to be drilled over the next 12

months.

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

announce that an updated resource estimate has been completed at its Kora North deposit, based

on results from underground grade control, exploration diamond drilling and face sampling. The

updated resource estimate comprises a Measured Resource of 154,000 tonnes @ 18.7 g/t Au, 8.9

g/t Ag and 0.5% Cu; an Indicated Resource of 690,000 tonnes @ 11.6 g/t Au, 14.1 g/t Ag and

0.8% Cu and an Inferred Resource of 1 .92 million tonnes @ 10.7 g/t Au, 13.3 g/t Ag and 0 .7%

Cu. This represents an increase of over 20 % in the contained gold equivalent ozs for the

Measured and Indicated Resource and almost 30% for the Inferred Resource. See Table 1 below.

This updated resource estimate is based on results from 80 diamond drill holes drilled from

Diamond Drill Cuddies 1 , 2 , 3 and 4 (DDC1, DDC2 , DDC3 & DDC 4) and over 1,300 face

samples taken from horiz ontal development and from cut and fill faces along the K1 and K2

lodes. The resource estimate covers an area of approximately 400 to 500 metres along strike by

200 to 350 metres vertically (see K1 and K2 long sections below ), representing approximately

15% of the target area of 1,000 metres along strike by up to 1,000 metres vertically which the

Company plans to drill from underground over the coming 12 months.

The updated resource estimate has been defined after just twelve months of underground

exploration drilling and represents, at the design production levels of 50 - 70,000 o unces per

annum; almost seventeen years of production.

Table 1 - Kora North Mineral Resource

Global Mineral Resources Kora North Gold-Copper Mine October 2018

Category Tonnes Gold Silver Copper AuEq

Mt g/t Mozs g/t Mozs % Mlbs g/t Mozs

Measured 0.15 18.7 0.09 8.9 0.04 0.5 1.6 19.6 0.09

Indicated 0.69 11.6 0.26 14.1 0.31 0.8 11.8 12.9 0.29

Total M & I 0.85 12.9 0.35 13.1 0.36 0.7 13.3 14.1 0.39

Inferred Total 1.92 10.7 0.66 13.3 0.82 0.7 29.5 11.9 0.74

Mineral Resources estimated prepared and verified by Simon Tear (PGEO), consultant to the Company and a

director of independent consultancy H & S Consultants Pty. Ltd., Sydney, Australia (October 2018)

Key Assumptions and Parameters

Mineralization comprises two parallel, steeply west dipping, N -S striking quartz -sulphide vein systems,

K1 & K2, within an encompassing dilatant structural zone hosted by phyllite. An additional structure, the

Kora Link, has also been defined and provides a possible link between the two main vein systems.

Underground drilling consists of diamond core for a range of core sizes depending on length of hole and

expected ground conditions. Sampling is sawn half core under geologic al control and generally ranges

between 0.5m and 1m. Underground face sampling is completed for every fired round and is to industry

standard.

QAQC data indicated no significant issues with the accuracy of the on-site analysis.

Core recovery of the mineral zone was initially 90%, this has improved to >95%. There is no relationship

between core recovery and gold grade.

Geological logging is consistent and is based on a full set of logging codes covering lithology, alteration

and mineralization.

The geological interpretation of the vein systems is represented as 3D wireframe solids snapped to a

combination of diamond drillhole data and underground face sampling. Definition of the wireframes is

based on identified gold mineralisation in drillcore nomi nally at a 0.2g/t Au cut off in conjunction with

geological control/sense and current mining widths.

Gold Equivalent (Au Eq) g/t was calculated using the formula Au g/t +(Cu% x 1.53) + Ag g/t x 0.0127.

(No account of metal recoveries through the plant have been used in calculating the metal equivalent

grade. However, production is currently achieving 93% metal recovery for both gold and copper and gold

is currently providing 95% and copper 5% of the total revenue of the mine).

Gold price US$1,300/oz; Silver US$16.5/oz; Copper US$2.90/lb.

Plan Long Section

Green = K1 Lode; Cyan = K2 Lode; Purple = Kora Link; drillhole traces & face sampling included

The wireframes were used to extract a total of 2,159 1 -metre composites from the drillhole & sampling

database for gold, copper and silver. No gold top cuts were applied to composites for the two main vein

systems; the Kora Link had a top cut of 200ppm Au. Silver top cuts of 50 and 200ppm were applied to

the K1 and K2 composite data. No top cu t was applied to the copper composites. Coefficients of

variation for the gold composite data were relatively low for this mineral type, around the 2 to 2.5 mark.

Variography indicated modest strike continuity with a tendency for greater grade continuity i n the dip

direction, downhole grade continuity was poor as would be expected for this type of mineralisation.

Grade interpolation of the composite data was completed using Ordinary Kriging with a block size of 1m

by 5m by 5m to reflect the close spaced dri lling for K1 and the face sampling. A larger block size check

model indicated no evidence of over-smoothing of gold grade with the smaller block size.

Default average density values have been applied to the different lodes. The defaults are based on limit ed

core measurements using the Archimedes Method (weight in air/weight in water).

An initial 3 Pass search strategy was applied in the grade interpolation with two additional passes. Search

ellipse parameters are listed below. Search ellipse orientations generally reflected the subtle changes in

dip and strike of the vein systems. Two search domains were used for K1, four search domains were used

for K2 and one for the Kora Link.

Pass No X radius (m) Y radius (m) Z radius (m) Min Data Min Octants Max Data

1 2 25 25 12 4 32

2 4 50 50 12 4 32

3 4 75 75 12 4 32

4 5.25 100 100 12 4 32

5 5.25 100 100 6 2 32

Allocation of the classification of the Mineral Resources is derived from the search pass numbers which

essentially is a function of the drillhole and face sample data point distribution. Additional considerations

were included in the assessment of the classification ; in particular , the geological understanding and

complexity of the deposit, sample recovery, quality of the QAQC sampling and outcomes, density data

and reconciliation with production.

Pass Category Resource Classification

1 Measured

2 Indicated

3 Inferred

4 Inferred

5 Inferred

All material mined within the mineral wireframes up to the effective date (as of the end of September

2018) has been removed from the model. Gold reconciliation of the resource model with production up to

the effective date has been good with the mill production in terms of recovered ounces being less than

10% above that estimated by the model.

The Inferred Mineral Resources in this estimate have a lower level of confidence than that applied to an

Indicated Mineral Resource and must not be converted to a Mi neral Reserve. It is reasonably expected

that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource

with continued exploration.

The estimate of Mineral Resources may be materially affected by environmental, permi tting, legal, title,

taxation, socio-political, marketing, or other relevant issues.

Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

John Lewins, K92 Chief Executive Officer and Director, states, “In just twelve months of

underground drilling, K92 has gone from commencing a resource definition program to defining

a Measured and Indicated Resource at Kora North of 850,000 tonnes at 14. 1 g/t AuEq

containing 390,000 AuEq ozs and an Inferred Resource of 1.92 million tonnes at 11.9 g/t AuEq

containing 740,000 AuEq ozs. This resource covers under 15% of the total area of 1,000 metres

by 1,000 metres that we plan to drill out from underground over the next twelve months. The

Measured and Indicated Resources alone r epresents almost six years of production at current

design levels of 50 - 70,000 ozs AuEq . This has been achieved while at the same time

establishing a new mining operation on the Kora deposit which is on track to produce 45,000 ozs

AuEq for 2018 at a cash cost of less than US$600 per oz AuEq and an AISC of less than US$800

per ounce.”

This new resource estimate is currently being used to update the existing Preliminary Economic

Assessment (PEA) which K92 has filed and made available for download on the Company's

SEDAR profile . It is anticipated that the new PEA will be completed in approximately one

month.

The updated Mineral Resource Estimate supersedes the PEA and the PEA can no longer be

considered current.

The 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, 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 existing PEA estimate s for Kora , based on the resource estimate filed on March 2, 2017

(4.36 million tonnes of 7.3 g/t Au, 35 g/t Ag and 2.23 percent Cu) , therefore excluding Kora

North:

 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 percent Cu (9.3 g/t AuEq(1));

 This would generate an estimated positive cash flow of US $537 million 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 US $558 million; 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 US $415 million for 25-metre levels, or

US $397 million for 15 -metre levels, using current metal prices, exchange rates and a 5

percent discount;

 An estimated after-tax NPV of US $329 million for 25-metre levels, or US $316 million

for 15-metre levels, using current metal prices, exchange rates and a 5 percent discount;

 Initial capital cost is estimated to be US $13.8 million, including the US $3.3 million for

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

Kora exploration inc lines 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

US $83 million for 15-metre levels; and

 Operating cost per tonne is estimated to be US $125 per tonne for 25-metre levels, or US

$126 per tonne for 15-metre mining levels;

 Excluding initial capital expenditure of US $14 million, cash cost is estimated to be US

$547 per ounce AuEq (inclusive of a 2.5 percent net smelter return (NSR) royalty) and

all-in sustaining cost (AISC) of US $619 per ounce AuEq for 25 -metre mining levels, or

US $549 per ounce (inclusive of a 2.5 percent NSR royalty) and AISC of US $644 per

ounce AuEq for 15-metre mining levels.

(1) Gold equivalent calculated on metal prices.

Metal prices used were $1,300 per ounce for gold, $18 per ounce for silver and $4,800 per tonne

for copper.

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 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. The resource estimate used within this PEA has not incorporated the updated

mineral resource estimate. The results and conclusions of any updated PEA incorporating the

revised mineral resource, if completed, will be materially different than those previously

disclosed.

Table 2 IRUMAFIMPA AND KORA/EUTOMPI RESOURCES

Resource by Deposit and Category

Deposit Resource