KNT.TO · 2018-06-26 12:00:00

K92 Announces Updated Resource FOR Kora North Highlights Include:

Resource Estimates

Suite 488 – 1090 West Georgia Street

Vancouver, British Columbia

Canada V6E 3V7

Telephone: 1 (604) 687-7130

Facsimile: 1 (604) 608-9110

NEWS RELEASE

June 26, 2018 Vancouver, British Columbia

K92 ANNOUNCES UPDATED RESOURCE FOR KORA NORTH

HIGHLIGHTS INCLUDE:

 The updated resource for the Kora North deposit comprises a Measured Resource

of 242,900 tonnes @ 13.9 g/t Au, 19 g/t Ag and 1.0% Cu; an Indicated Resource of

442,800 tonnes @ 11.8 g/t Au, 21 g/t Ag and 1.2% Cu and an Inferred Resources of

1,084,400 tonnes @ 13.2 g/t Au, 15 g/t Ag and 1.0% Cu.

 The Total Measured, Indicated and Inferred Resource covers an area of

approximately 400 metres on strike by 200 to 300 metres vertically, representing

approximately 10% of the target area to be drilled over the coming 12 months.

K92 Mining Inc. (TSXV – KNT; OTCQX: KNTNF) (“K92”) is pleased to announce that an

updated resource has been estimated in Kora North based on results from underground grade

control and exploration diamond drilling and face sampling. The updated resource comprises a

Measured Resource of 242,900 tonnes @ 13.9 g/t Au, 19 g/t Ag and 1.0% Cu; an Indicated

Resource of 442,800 tonnes @ 11.8 g/t Au, 21 g/t Ag and 1.2% Cu and an Inferred Resourc es of

1,084,400 tonnes @ 13.2 g/t Au, 15 g/t Ag and 1.0% Cu. See Table 1 below.

This updated resource is based on results from 70 diamond drill holes drilled from Diamond

Drill Cuddies 1 , 2 and 3 (DDC1, DDC2 & DDC 3) and over 250 face samples taken from

horizontal development along the K1, K2 and KL1 veins . The resource covers an area of

approximately 400 metres on strike by 200 to 300 metres vertically (see Kora – Kora North –

Irumafimpa Long Section below) , representing approximately 10% of the target area of 1,000

metres along strike by up to 1,000 metres vertically which the Company plans to drill from

underground over the coming 12 months.

The updated resource has been defined after just eight months of underground grade control

drilling and three months of exploration drilling and represents, at the design production levels of

45-50,000 ozs per annum; almost seventeen years of production.

Table 1 Kora North Mineral Resource – Effective Date June 25, 2018

Category Tonnes Gold Silver Copper AuEq

g/t Ozs g/t Ozs % 000's lb g/t Ozs

Measured

242,900 13.9

108,400 19

151,900 1.0

5,300 15.6

122,200

Indicated 442,800 11.8 168,100 21 298,100 1.2 11,900 13.9 198,300

Total M & I 685,700 12.5 276,500 20 450,000 1.1 17,200 14.5 320,500

Total Inferred 1,084,400 13.6 509,700 15 569,600 1.0 24,400 15.2 571,000

 Gold Equivalent (Au Eq) g/t was calculated using the formula Au g/t + (Cu% x 1. 53) + Ag

g/t x 0.0127.

 Gold Price US$1,300/oz; Silver US$16.5/oz; Copper US$2.90/lb.

 A top cut of 100 g/t was applied to the gold assays for the K1, K2 KL lodes.

 Mineral Resources which are not Mineral Reserves do not have demonstrated economic

viability.

 The estimate of Mineral Resources may be materially affected by environmental, permitting,

legal, title, taxation, socio-political, marketing, or other relevant issues.

 The Inferred Mineral Resource in this estimate has a lower level of confidence than that

applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It

is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded

to an Indicated Mineral Resource with continued exploration.

 All material mined from within the resource envelope up to the effective date of the resource

have been removed from the model.

 Wireframes were constructed to constrain lode positions based on geological mapping and

logging of workings and diamond core coupled with the use of face and dr ill core assay

results using a nominal +1 g/t Au cut-off to define the lode boundary.

 Equal length composites of 0.5m were extracted from the database for each lode. A top cut

to gold grade was applied to K2, K1 and KL1 of 100g/t. The ordinary kriging modelling

estimation method was then used with search radii of 35m and 130m for Au, Ag and Cu. At

least 3 informing values with a maximum of 12 were used to estimate each model block.

 The Resource was classified as measured if b oth drilling at 25m centres and workings were

present, as indicated if only drilling or workings were presented and inferred for material

15m past the last drill hole or working.

John Lewins, K92 Chief Executive Officer and Director, states, “In March we announced a

Measured and Indicated Resource for Kora North of 136,700 tonnes at 14.5 g/t AuEq containing

63,700 AuEq ozs . Now. three months later, we have grown th e resource more than f ive- fold to

685,700 at 14. 5 g/t AuEq containing 320,500 AuEq ozs. Likewise , the Inferred Resource has

grown from 183,500 tonnes at 16.1 g/t AuEq containing 95,000 AuEq ozs to over one million

tonnes at 15.2 g/t AuEq containing 571,000 AuEq ozs. This resource covers just 10% of the total

area of 1,000 metres by 1,000 metres that we plan to drill out from underground over the coming

12 months. The Measured and Indicated Resources alone represent over six year s of production

at current design levels, with the Inferred Resource representing a further eleven years.”

The Company anticipates completing the current initial exploration program on Kora North in

the September 2018 quarter, at which point a further resource estimate will be undertaken and

used to update the existing Preliminary Economic Assessment (PEA) which K92 has filed and

made available for download on the Company's SEDAR profile . The 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, provides additional info rmation 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 resource estimate filed on March 2, 2017 (4.36 million

tonnes of 7.3 g/t Au, 35 g/t Ag and 2.23 percent 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 percent Cu (9.3 g/t AuEq(1));

 This would generate an estimated positive cash flow of US $537 million 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 US $558 million; 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 US $415 million for 25-metre levels, or

US $397 million for 15-metre levels, using current metal prices, exchange rates and a 5

percent discount;

 An estimated after-tax NPV of US $329 million for 25-metre levels, or US $316 million

for 15-metre levels, using current metal prices, exchange rates and a 5 percent discount;

 Initial capital cost is estimated to be US $13.8 million, including the US $3.3 million for

the plant upgrade identified in the Mincore scoping stu dy, but excluding the proposed

Kora exploration inclines and diamond drilling; sustaining capital cost is estimated to a

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

US $83 million for 15-metre levels;

 Operating cost per tonne is estimated to be US $125 per tonne for 25-metre levels, or US

$126 per tonne for 15-metre mining levels;

 Excluding initial capital expenditure of US $14 million, cash cost is estimated to be US

$547 per ounce AuEq (inclusive of a 2.5 percent net smelter return (NSR) royalty) and

all-in sustaining cost (AISC) of US $619 per ounce AuEq for 25 -metre mining levels, or

US $549 per ounce (inclusive of a 2.5 percent NSR royalty) and AISC of US $644 per

ounce AuEq for 15-metre mining levels

(1) Gold equivalent calculated on above metal prices.

Metal prices used were $1,300 per ounce for gold, $18 per ounce for silver and $4,800 per tonne

for copper.

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 relatin g to

the PEA. Mineral resources that are not mineral reserves and do not have demonstrated

economic viability. The resource estimate used within this PEA has not incorporated the updated

mineral resource estimate. The results and conclusions of any updated PEA incorporating the

revised mineral resource, if completed, will be materially different than those previously

disclosed.

Table 2 IRUMAFIMPA AND KORA/EUTOMPI RESOURCES

Resource by Deposit and Category

Deposit Resource