KNT.TO · 2018-04-25 12:00:00

K92 Announces Record 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

April 25, 2018 Vancouver, British Columbia

K92 MINING INC.

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

including 5.82 m at 486.78 g/t Au, 21 g/t Ag and 0.15% Cu (487.1 g/t AuEq) in hole

KMDD0084

 Drill Hole KMDD0084 records multiple intersections including 5.82 m at 486.78 g/t

Au, 21 g/t Ag and 0.15% Cu (487.1 g/t Au Eq) plus 4.68 m at 73.54 g/t Au, 4 g/t Ag

and 0.33% Cu (74.1 g/t AuEq)

 Drill Hole KMDD00 82 records multiple intersections including 2.75 m at 21.41 g/t

Au, 6 g/t Ag and 1.13% Cu (23.20 g/t AuEq) plus 3.78 m at 32.54 g/t Au, 62 g/t Ag

and 2.59% Cu (37.29 g/t AuEq)

K92 Mining Inc. (TSX-V: KNT; OTCQB: KNTNF) (“K92”) is pleased to announce results from

the continuing grade control drilling of the Kora North Extension.

The r esults reported are from the first two holes from the new Diamond Drill Cuddy Three

(DDC3), with both holes drilled recording intersections of the K1, KL and K2 Lodes.

Results from Hole KMDD00 84 included 5.82 m at 486.78 g/t Au, 21 g/t Ag and 0.15% Cu

(487.1 g/t Au Eq) plus 4.68 m at 73.54 g/t Au, 4 g/t Ag and 0.33% Cu (74.1 g/t AuEq) plus 4.12

m at 7.59 g/t Au, 21 g/t Ag and 1. 92% Cu ( 10.79 g/t AuEq), while Hole KMDD0082 recorded

2.75 m 21.41 g/t Au, 6 g/t Ag and 1.13% Cu (23.20 g/t AuEq) plus 3.78 m at 32.54 g/t Au, 62 g/t

Ag and 2.59% Cu (37.29 g/t AuEq) plus 3.31 m at 8.37 g/t Au, 2 g/t Ag and 0.39% Cu (8.99 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 wh ile 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 Execu tive Officer and Director, states, “The first hole drilled from the

new drill cuddy DDC3, KMDD0082 was possibly our best hole to date however this has been

totally eclipsed by the results from the second hole, KMDD0084 which included a section of 0.72

metres assaying at over 3,500 g/t Au. These two holes are the furthest south that we have drilled

and appear to indicate a general increase in both copper and gold grades as we move further

south. Importantly from the perspective of building our confidence in the continuity of the Kora –

Irumafimpa system, hole KMDD0084 is just over 200 metres along strike from the deepest hole

drilled by Barrick from surface, BKDD0023. This hole reported over 30 metres of continuous

mineralization from 920 metres down hole and finished in mineralization as the hole could not

be drilled any deeper.

We have already completed the drilling of the next grade control hole from DDC3, which is a

further 25 metres to the south, and await the assay results with great anticipation”.

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 2

Hole_id From

(m) To (m) Interval

(m)

True

width

(m)

Gold

g/t

Silver

g/t

Copper

Gold

equivalent Comment

KMDD0082 35.55 38.30 2.75 2.67 21.41 6 1.13 23.20 K1E

including 35.55 36.26 0.71 0.69 56.70 14 3.44 62.15

including 36.26 36.59 0.33 0.32 1.07 4 1.04 2.71

including 36.59 37.24 0.65 0.63 0.57 3 0.32 1.09

including 37.24 37.50 0.26 0.25 30.45 6 0.16 30.78

including 37.50 38.10 0.60 0.58 9.50 2 0.03 9.57

including 38.10 38.30 0.20 0.19 21.34 1 0.19 21.65

KMDD0082 38.45 40.48 2.03 1.97 3.74 1 0.02 3.78 K1W

including 38.45 39.58 1.13 1.10 3.01 1 0.01 3.04

including 39.58 39.78 0.20 0.19 6.64 1 0.02 6.69

including 39.78 40.38 0.60 0.58 4.23 1 0.02 4.28

including 40.38 40.48 0.10 0.10 3.18 1 0.04 3.26

KMDD0082 46.09 49.40 3.31 2.62 8.37 2 0.39 8.99 KL1

including 46.09 47.80 1.71 1.35 0.52 3 0.60 1.48

including 47.80 48.14 0.34 0.27 1.50 1 0.06 1.60

including 48.14 49.40 1.26 1.00 20.88 2 0.19 21.19

KMDD0082 64.88 68.66 3.78 3.59 32.54 62 2.59 37.29 K2

including 64.88 65.30 0.42 0.40 4.35 15 0.55 5.38

including 65.30 66.37 1.07 1.02 1.52 25 0.83 3.12

including 66.37 66.93 0.56 0.53 209.70 338 14.92 236.93

including 66.93 68.66 1.73 1.64 1.22 7 0.18 1.59

KMDD0084 38.5 43.18 4.68 4.14 73.54 4 0.33 74.10 K1W

including 38.5 39.57 1.07 0.95 96.96 10 0.83 98.35

including 39.57 40.8 1.23 1.09 0.87 2 0.22 1.23

including 40.8 41.15 0.35 0.31 18.84 3 0.32 19.36

including 41.15 41.8 0.65 0.57 8.96 2 0.22 9.32

including 41.8 42.31 0.51 0.45 36.88 1 0.02 36.93

including 42.31 42.64 0.33 0.29 623.77 6 0.13 624.05

including 42.64 43.18 0.54 0.48 4.24 3 0.15 4.50

KMDD0084 48.3 54.12 5.82 5.46 486.78 6 0.16 487.10 KL1

including 49.61 49.85 0.24 0.23 2.52 5 0.07 2.70

including 49.85 50.61 0.76 0.71 3585.93 21 0.15 3586.43

including 50.61 50.93 0.32 0.30 3.31 2 0.00 3.34

including 50.93 51.28 0.35 0.33 11.39 11 0.32 12.02

including 51.28 52.2 0.92 0.86 0.88 1 0.12 1.07

including 52.2 52.48 0.28 0.26 3.56 4 1.14 5.35

including 52.48 52.78 0.3 0.28 273.33 6 0.19 273.69

including 52.78 53.2 0.42 0.39 2.88 1 0.05 2.97

including 53.2 53.66 0.46 0.43 25.15 6 0.15 25.46

including 53.66 54.12 0.46 0.43 8.36 1 0.11 8.54

KMDD0084 62 66.12 4.12 4.00 7.59 21 1.92 10.79 K2

including 62 62.6 0.6 0.58 2.59 2 0.16 2.85

including 62.6 63 0.4 0.39 0.16 1 0.06 0.26

including 63 63.56 0.56 0.54 16.83 19 2.42 20.77

including 63.56 64.21 0.65 0.63 19.98 14 1.20 21.99

including 64.21 65.1 0.89 0.86 7.22 51 5.19 15.80

including 65.1 66.12 1.02 0.99 0.79 19 1.03 2.60

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

KMDD0082 58903.06 29868.16 1191.07 18.57 291.0 89.9 Kora

KMDD0084 58901.94 29868.29 1190.97 17.86 265.6 101.1 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 t onnes 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 cash 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 of an estimate d 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 f urther $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.) per 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 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 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