KNT.TO · 2018-03-29 12:00:00

K92 Announces Results from First Underground Exploration Drill Hole 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

March 29, 2018 Vancouver, British Columbia

K92 MINING INC.

K92 Announces Results from First Underground Exploration Drill Hole from Kora

Northern Extension

• Drill Hole KMDD0087 records multiple high grade intersections, including:

o K1E intersection of 2.85 m at 53.39 g/t Au, 3 g/t Ag and 0.13% Cu (53.63 g/t

AuEq)

o K2 intersection of 3.70 m at 6.94 g/t Au, 13 g/t Ag and 0.56% C u (7.97 g/t

AuEq)

o K2 HW intersection of 3.70 m at 10.79 g/t Au, 25 g/t Ag and 2.8 3% Cu (15.44

g/t AuEq)

K92 Mining Inc. (“K92”) is pl eased to announce the first result s from the exploration drilling of

the Kora North Extension.

The results reported are from t he first exploration drill hole drilled from Dia mond Drill Cuddy

Two (DDC2). This exploration drilling program is targeting the area immediately up dip and down

dip from the recently reported resource defined by grade control from DDC1 and DDC2. The K2

intersection reported is approximately 40 metres above the closest grade control intersection, while

the K1 intersection is approximately 30 metres above the closest grade control intersection.

The results reported have included a significant Hanging Wall vein intersected 4 metres from the

K2 Vein of 3.70 m at 10.79 g/t Au, 25 g/t Ag and 2.83% Cu (15.44 g/t AuEq) which has not been

previously identified.

These results have confirmed the consistency of both the K1 and K2 lodes well outside of the grade

control resource area.

John Lewins, K92 Chief Executive Officer and Director, states, “The results from our first

exploration drill hole are extremely significant in confirming the continuity of both the K1 and K2

lodes up dip from the grade control drilling. In addition, a new Hanging Wall lode has been

intersected with significant grade and thickness further enhancing the potential of this area.

We anticipate completing this initial explorati on drilling program by the end of June 2018 and

providing an updated resource covering an area up to 600 metres on strike and between 350

metres to 500 metres on dip between Irumafimpa and the known Kora deposit”.

Table 1 below provides a summary of the results from the first exploration drill hole drilled into

the Kora North Vein system and Table 2 provides details of collar location and hole orientation.

Table 1.0 – Significant Intercepts from Kora Exploration Hole KMDD0087

Hole_id From (m) To (m) Interval

(m)

True

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

equivalent Comment

KMDD0087 46.50 49.35 2.85 1.56 53.39 3 0.13 53.63 K1E

Including 46.50 47.60 1.10 0.60 135.50 7 0.18 135.87

Including 47.60 48.90 1.30 0.71 1.74 1 0.12 1.93

Including 48.90 49.35 0.45 0.25 1.86 2 0.04 1.95

KMDD0087 51.06 52.00 0.94 0.52 30.49 2 0.07 30.63 K1W

Including 51.06 51.80 0.74 0.41 37.88 2 0.09 38.04

Including 51.80 52.00 0.20 0.11 3.16 1 0.01 3.19

KMDD0087 81.30 85.00 3.70 2.45 6.94 13 0.56 7.97 K2

Including 81.30 82.55 1.25 0.83 2.56 8 0.50 3.43

Including 82.55 83.00 0.45 0.30 5.56 4 0.31 6.08

Including 83.00 83.50 0.50 0.33 0.22 1 0.22 0.58

Including 83.50 84.00 0.50 0.33 9.88 4 0.51 10.72

Including 84.00 84.30 0.30 0.20 3.14 3 0.37 3.75

Including 84.30 85.00 0.70 0.46 19.97 48 1.20 22.42

KMDD0087 89.10 92.80 3.70 2.45 10.79 25 2.83 15.44 K2HW

Including 89.10 90.20 1.10 0.73 10.79 25 2.83 15.44

Including 90.20 91.50 1.30 0.86 0.14 2 0.38 0.74

Including 91.50 92.60 1.10 0.73 0.11 1 0.03 0.17

Including 92.60 92.80 0.20 0.13 1.88 20 2.54 6.03

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 – Collar Locations for Kora Exploration Hole KMDD0087

Hole_id

Collar location Collar orientation

EOH

depth (m) Lode Local

north

Local

East RL Dip Local

azimuth

KMDD0087 59001.93 29876.38 1192.35 55.04 246.7 149.2 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 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 3.0 IRUMAFIMPA AND KORA/EUTOMPI RESOURCES

Resource by Deposit and Category

Deposit Resource