KNT.TO · 2017-11-15 12:00:00

K92 Announces More High Grade Kora Exploration Drill Results and Ongoing Development of 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

November 15, 2017 Vancouver, British Columbia

K92 MINING INC.

K92 Announces More High Grade Kora Exploration Drill Results and Ongoing

Development of Kora Northern Extension

• Drill Hole KMDD0024 records 11.5 m at 7.11 g/t Au, 12 g/t Ag an d 0.32% Cu (7.76

g/t AuEq) plus 5.95m at 5.23 g/t Au, 19 g/t Ag and 1.97% Cu (8.50 g/t AuEq)

• Development along strike now extends beyond 120 metres with min ed grades

averaging approximately 6.5 g/t Au and 1% Cu

K92 Mining Inc. (“K92”) is pleased to announce results from KMDD0024 which has been drilled

50 metres to the South and 60 metres above the current developm ent. This hole has recorded

significant intersections in both the K1 and K2 lodes (see tabl e 1 & 2). These results extend the

known Kora mineralization in this Northern Extension over a str ike length of approximately 150

metres and a dip extent of approximately 100 metres.

In addition, the Company has continued to develop along the strike of the Kora Lode with a 3.5-4

metre x 4 metre drive in a northerly and southerly direction and has now mined over 7,000 tonnes

of material at an average grade of approximately 6.5 g/t Au and 1% Cu. This material is being

treated through the process plan t on an ongoing basis, producin g a copper-gold flotation

concentrate.

Following on from the success of the results from this drive an d the 25m x 25m “grade control”

grid pattern K92 has completed initial mine designs for this ar ea which include access to, and

drives along the vein on the 1210 mRL and 1235 mRL. This will enable the first stopes to be mined

from this Kora Northern Extension in early 2018.

The Company has also continued to develop the footwall drive pa rallel to the Kora Lode to the

South and expects to complete a second drill cuddy by the end o f the month, to allow drilling to

commence on a second area of 150 metres by 150 metres on 25m x 25m “grade control” grid

pattern.

John Lewins, K92 Chief Executive Officer and Director, states, “The ongoing results from the

development along the Kora Lode and from the diamond drilling program have continued to build

our confidence in the quality and continuity of this Northern Extension of Kora. We have now

mined over 7,000 tonnes mined at an average grade of approximately 6.5 g/t Au and 1% copper

from this strike drive an average width of approximately 3.5 metres and height of 4 metres over a

continuous length of over 120 metr es. We plan not only to continue to mine along strike on the

current level, but to develop drives along strike on two upper levels, which will also allow stoping

to commence in early 2018”.

The previously reported Kora e xtension discovery hole KMDD0009 recorded an intersection of

5.4 metres at 11.68 g/t gold, 25.5 g/t silver and 1.33 per cent copper from 154 metres downhole,

is also located within the 100 metre strike length referred above (see K92 news release dated May

24, 2017, for details including true thicknesses).

Table 1 and 2 below provide a summary of the results from the l atest diamond grade control drill

hole drilled into the Kora Vein. Table 1 provides a summary of the significant intercepts from the

hole, while Table 2 provides details of collar location and hole orientation.

Table 1.0 Kainantu Gold Mine – Significant Intercepts from Kora Underground Diamond

Drilling

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) Local

north

Local

East RL Dip Local

azimuth

KMDD0024 59123.63 29876.98 1190.06 40.29 223.78 99.8

Hole_id From (m) To (m) Interval (m) True width

(m) Gold g/t Silver g/t Copper % Gold Equiv

g/t

KMDD0024 28 39.5 11.5 7.56 7.11 12 0.32 7.76

including 28.3 28.8 0.5 0.32 15.66 8 0.11 15.93

including 28.8 29.23 0.4 0.27 21.06 33 0.20 21.78

including 29.23 29.8 0.6 0.36 2.33 14 0.22 2.84

including 29.8 30.55 0.8 0.48 1.33 8 0.13 1.63

including 36 37 1.0 0.64 2.43 3 0.16 2.71

including 37.85 38.3 0.4 0.29 2.67 8 0.93 4.20

including 38.3 39.2 0.9 0.57 1.35 5 0.61 2.34

including 39.2 39.5 0.3 0.19 33.1 143 3.08 39.62

including 39.5 39.9 0.4 0.25 120.31 107 2.21 125.06

KMDD0024 71.4 77.35 5.9 3.78 5.23 19 1.97 8.50

including 73.1 73.8 0.7 0.44 1.08 7 0.93 2.58

including 73.8 74.35 0.5 0.35 37.53 102 15.07 61.88

including 74.35 75.2 0.9 0.54 9.01 50 2.17 12.97

Figure 1 Kora Underground Diamond Drill Program from Drill Cud dy DDC1, including

location of KMDD0024

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 Re port, Mineral Resource Update a nd Preliminary Economic

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

an effective date of March 2, 2017, that provides additional in formation 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 estim ates (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 mill ion tonnes averaging 7.1 g/t

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

KMDD0024

• This would generate an estimated positive cash flow of $537-mil lion (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, exchang e 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 di amond drilling; sustaining capi tal cost is estimated to a

further $64-million (U.S.) spent over the life of the Kora mini ng for 25-metre levels, or

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

• Operating cost per tonne is estim ated to be $125 (U.S.) per ton ne for 25-metre levels, or

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

• Excluding initial capital expend iture of $14-million (U.S.), ca sh 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 (AI SC) of $619 (U.S.) per ounce AuEq for 25-metre mining

levels, or $549 (U.S.) per ounc e (inclusive of a 2.5-per-cent N SR 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 have the economic considerations ap plied 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 KO RA/EUTOMPI RESOURCES

Resource by Deposit and Category

Deposit Resource