KNT.TO · 2017-11-01 12:00:00

K92 Announces More High Grade Kora Exploration Drill Results Including 2.5m at 68.78

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 1, 2017 Vancouver, British Columbia

K92 MINING INC.

K92 Announces More High Grade Kora Exploration Drill Results Including 2.5m at 68.78

g/t Au, 86 g/t Ag and 0.37% Cu in drill hole KMDD0017

Results include:

• 2.5m at 68.78 g/t Au, 86 g/t Ag and 0.37% Cu (70.44 g/t AuEq), including 0.4m at

406.2 g/t Au, 9 g/t Ag and 0.12% Cu in drill hole KMDD0017

• 2.4m at 12.89 g/t Au, 14 g/t Ag and 1.19% Cu (14.90 g/t AuEq), including 0.3m at

108.24 g/t Au, 113 g/t Ag and 9.24% Cu in drill hole KMDD0021

• Holes represent both vertical extension and strike extension of k n o w n K o r a

mineralization

K92 Mining Inc. (“K92”) is pleased to announce results from the next five exploration holes drilled

from an underground cuddy following on from the first four holes previously reported on October

17, 2017 (see Table 1.0).

The drill results from these first 9 holes drilled to follow up on the initial discovery of the northern

extension of the Kora Vein in ho le KMDD0009, which recorded an intersection of 5.4 metres at

11.68 g/t gold, 25.5 g/t silver and 1.33 per cent copper, have further confirmed K92’s initial

interpretation that the Kora Vein extends some 500 metres to th e north from the closest point of

the currently defined Kora Deposit Inferred Resource (see Table 3.0).

K92 is currently undertaking a program of 24 drill holes from u nderground drill cuddy DDC1

located approximately 50 metres from the Kora Vein at 59125 Nor th, 29876 East and 1188 mRL

(see Figure 1). This program which will be completed in December, is designed to drill out an area

of approximately 150 metres by 150 metres on a 25m x 25m “grade control” grid pattern.

The high grade drill results announced today represent both vertical extension and strike extension

of known Kora mineralization.

A second underground diamond rig will commence exploration drilling within the next two days,

further along strike, approximately 150 metres to the north of the current drill cuddy DDC1 to

evaluate extensions of Kora towards the Irumafimpa deposit as this remains open following recent

drill results.

K92 also intends to continue driving along the strike of the Kora Vein in a northerly and southerly

direction with this material mined from Kora to be processed through the plant.

John Lewins, K92 Chief Executive Officer and Director, states, “These results from the latest five

diamond holes drilled from drill cuddy DDC1 have fu rther confirmed our interpretation that the

Kora Vein system extends some 500 metres to the north of the existing inferred resource, and

potentially further, as we have yet to close off the mineralization in this direction. By December

we will have drilled out an area of 150 metres by 150 metres from this one drill cuddy with a

program of grade control drilling on a 25m x 25m pattern. The aim of this drilling would be to

provide sufficient detail to allow stopes to be designed and developed to enable ongoing mining in

this Kora extension area. At the same time, we pl an to continue to develop the footwall drive to

the south towards the known Kora resource establishing further drill cuddies at approximately

150 metre intervals to allow diamond drilling to continue along strike”.

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,

(see K92 news release dated May 24, 2017, for details including true thicknesses).

Table 1 and 2 below provides a summary of the results from the five diamond grade control which

have been drilled into the Kora Vein. Table 1 provides a summar y of the significant intercepts

from the holes, 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$2.50/lb; Silver price US$16/oz and Gold price of US$1200/oz

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

Figure 1 Kora Underground Diamond Drill Program from Drill Cuddy DDC1

Hole_id From (m) To (m) Interval (m) True width (m) Gold g/t Silver g /t Copper % Gold equivalent

KMDD0017 16.9 18.9 2.0 1.4 1.52 5 0.20 1.89

including 16.9 17.1 0.2 0.11 4.90 3 0.02 4.96

including 17.6 18.9 1.3 0.92 1.50 6 0.30 2.04

KMDD0017 63.3 65.8 2.5 1.8 68.78 86 0.37 70.44

including 63.3 63.8 0.5 0.32 5.65 1 0.04 5.72

including 64.0 64.6 0.6 0.42 8.82 11 0.52 9.74

including 64.6 65.0 0.4 0.28 406.20 9 0.12 406.49

including 65.0 65.8 0.8 0.56 2.10 252 0.21 5.62

KMDD0018 17.4 19.5 2.1 1.99 1.52 5 0.20 1.89

including 17.4 17.8 0.4 0.16 4.90 3 0.02 4.96

including 18.8 19.5 0.6 1.30 1.50 6 0.30 2.04

KMDD0018 53.2 55.4 2.2 2.03 1.30 4 0.29 1.79

including 53.2 53.5 0.3 0.28 4.12 4 0.17 4.42

including 54.6 55.4 0.8 0.71 1.41 6 0.25 1.87

KMDD0019 15.1 18.0 2.9 2.41 1.16 5 0.39 1.81

including 15.1 16.0 0.9 0.75 1.32 5 0.88 2.73

including 17.2 18.0 0.8 0.67 2.57 10 0.26 3.10

KMDD0019 55.3 56.6 1.3 1.04 5.37 3 0.38 5.99

including 55.3 55.5 0.2 0.17 1.71 5 1.57 4.18

including 56.3 56.6 0.3 0.25 21.10 10 0.38 21.80

KMDD0020 18.6 21.3 2.7 2.22 5.47 2 0.02 5.53

including 18.6 19.4 0.8 0.66 15.70 2 0.02 15.74

including 20.6 21.3 0.7 0.58 2.50 3 0.04 2.60

KMDD0021 12.5 14.2 1.7 1.57 3.81 15 0.23 4.35

including 12.5 12.7 0.2 0.22 3.41 5 0.08 3.59

including 0.0 0.0 0.0 0.00 5.83 26 0.40 6.77

KMDD0021 51.6 54.0 2.4 2.18 12.89 14 1.19 14.90

including 52.1 52.9 0.9 0.79 2.98 2 0.29 3.44

including 53.7 54.0 0.3 0.23 108.24 113 9.24 123.81

Local north Local East RL Dip

Local

azimuth

KMDD0017 59128.23 29876.47 1188.78 6.8 315.2 76.6 Kora

KMDD0018 59124.65 29876.63 1189.94 30.62 243.59 73.0 Kora

KMDD0019 59128.27 29876.49 1188.76 29.9 295.90 69.6 Kora

KMDD0020 59127.04 29876.35 1188.71 23.9 315.10 93.6 Kora

KMDD0021 59125.84 29876.27 1187.67 -14.4 271.90 67.8 Kora

Hole_id

Collar location Collar orientation EOH depth

(m) Lode

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));

• 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