KNT.TO · 2017-10-23 12:00:00

K92 Announces Positive Final Results from Treating 2,050 Tonne Bulk Sample from the Kora Vein

Exploration Programs Metallurgy & Processing

Suite 488 – 1090 West Georgia Street

Vancouver, British Columbia

Canada V6E 3V7

Telephone: (604) 687-7130

Facsimile: (604) 608-9110

NEWS RELEASE

October 23, 2017 Vancouver, British Columbia

K92 MINING INC.

K92 Announces Positive Final Results from Treating 2,050 Tonne Bulk Sample from the

Kora Vein

• 96 tonnes of concentrate at an average grade of 138 g/t Au and 19% Cu containing

427 ozs of gold and 18.2 tonnes of copper produced from the bulk sample

• The average feed assay of the material treated was 7.11 g/t Au and 0.95 % Cu

• The gold recovery achieved was 91.1% and the copper recovery was 92.6%

K92 Mining Inc. (“K92”) is ple ased to announce it has completed treating an initial 2,050 tonne

bulk sample from the interpreted Kora vein, and has final results from treating this material (initial

results describing the treatment of the first 800 tonnes of the bulk sample are stated in K92 News

Release dated October 11, 2017).

A total of 96 tonnes of concentrate at an average grade of 138 g/t Au and 19% Cu containing 427

ozs of gold and 18.2 tonnes of copper was produced from this 2,050 tonne bulk sample.

The bulk sample was mined from a four-metre-by-four-metre horizontal development designed to

reflect the production stoping widt h envisaged in the prelimina ry economic assessment (“PEA”)

referred to below. The average grade of the material treated was 7.11 g/t Au and 0.95 % Cu which

is consistent with that predicted from grade control face sampling underground.

The Company believes that there is considerable potential to improve metallurgical performance

beyond the impressive results achieved in treating this first b ulk sample with the installation of a

gravity gold circuit and the optimization of the flotation circ uit following detailed review of the

performance of the plant.

John Lewins, K92 Chief Executive Officer and Director, states, “The results achieved in treating

this initial 2,050 tonne bulk sample from Kora are significantly above our best expectations. To

achieve this level of metallurgical performance from almost the very first tonne treated is

outstanding and a testament to the quality and ability of our pro cessing personne l. While the

results are consistent with those achieved in ear lier metallurgical test work reported in the PEA,

it is exciting to consider that our processing pe rsonnel believe that the plant performance can be

improved beyond that already achi eved following detailed analysis of these results. Of equal or

potentially greater importance is that the bulk sa mple was mined from a part of Kora which was

only discovered by the Company in May of th is year and is 500 metres down dip and a similar

distance along strike from the known Kora deposit.”

The horizontal development has mined through where K92 Kora hole KMDD0009 intersected the

vein (see K92 news release dated May 24, 2017, for details regarding discovery hole KMDD0009

including true thicknesses).

The KMDD0009 intersection is approximately 500 metres along str ike and 150 metres downdip

from the closest point of the currently defined Kora deposit inferred resource and is typical of the

Kora/Eutompi mineralization.

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 Project, 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 1.0 IRUMAFIMPA AND KO RA/EUTOMPI RESOURCES

Resource by Deposit and Category

Deposit Resource