KNT.TO · 2017-10-04 12:00:00

K92 Commences Mining Bulk Sample at Kora

Production Results 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 4, 2017 Vancouver, British Columbia

K92 MINING INC.

K92 Commences Mining Bulk Sample at Kora

• mining of 2000 tonne Kora bulk sample has commenced with approximately

1,000 tonnes mined thus far

• mining of bulk sample anticipated to complete by end of week

• mined material from bulk sample will then be processed generating

information on metallurgical performance and providing a bulk concentrate

for evaluation

K92 Mining Inc. (“K92”) is pleased to announce it has commenced mining an initial 2,000

tonne bulk sample from the interpreted Kora vein, mining along strike in a northerly and

southerly direction from the crosscut.

Approximately 1,000 tonnes have been mined to date from this area and the company is

targeting a total of 2,000 tonnes mined by the end of this week. The bulk sample is being

mined from a four-metre-by-four-metre horizontal development designed to reflect the

production stoping width envisaged in the preliminary economic assessment referred below.

It is anticipated that this material will be treated through the process plant next week

generating important information on metallurgical performance and providing a bulk

concentrate for evaluation by potential offtakers.

K92 previously announced that it has intersected what it interprets as the Kora vein system

in a crosscut from the modified Kora exploration drive (see K92 News Release dated August

22, 2017). The intersection was predicted at this location and comprises a strongly sulphide

(bornite, chalcopyrite and pyrite) mineralized quartz vein approximately 2.7 metres wide.

Channel sampling of the north and south faces of the vein system exposed in the crosscut

returned an average of 9.89 grams per tonne gold, 46 g/t silver and 2.44 per cent copper

over a true width of 2.7 metres. The vein is typical of that seen in Kora drill intercepts and

outcrop in displaying multiphase brecciation and layered, bladed quartz as a matrix to

clasts.

The cross cut intersection is approximately 10 to 15 metres along strike and to the north of

the K92 Kora hole KMDD0009 (see K92 news release dated May 24, 2017, for details

including true thicknesses). This hole 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, interpreted to be

the discovery of an extension of the Kora deposit.

The KMDD0009 intersection is approximately 500 metres along strike 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.

The deepest intersection in hole BKDD0023 (drilled by Barrick Gold Corp. and previously

disclosed) is 900 metres below the surface outcrop of the vein system and almost 500

metres below the deepest inferred resource. The KMDD0009 intersection is approximately

700 metres below the surface and 500 metres along strike from BKDD0023, which

intersected 30.6 metres (7.9 m true width) at two g/t Au, 4.8 g/t Ag and 1.3 per cent Cu,

including 6.4 metres (1.7 m true width) at 5.52 g/t Au and eight metres (2.1 m true width)

at 3.7 per cent Cu, from 920.8 metres.

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 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 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 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, 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 further $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 1.0 IRUMAFIMPA AND KO RA/EUTOMPI RESOURCES

Resource by Deposit and Category

Deposit Resource