K92 Mining Inc. Community Relations Update

Suite 488 – 1090 West Georgia Street

Vancouver, British Columbia

Canada V6E 3V7

Telephone: (604) 687-7130

Facsimile: (604) 608-9110

NEWS RELEASE

August 24, 2017 Vancouver, British Columbia

K92 MINING INC.

K92 Mining Inc. Community Relations Update

K92 Mining Inc. (“K92”) provides the following update on recent activity with regards to

community interactions.

Recently, the newly formed Bilimoia Interim La ndholders Association (BILA), which represents

one of the Landholder groups in the region, has alle ged that it has not had an adequate share of

employment and contractor opportunities. This has been refuted by K92 and the Company has

sought to engage with BILA through the auspices of the Mineral Resources Authority (“MRA”),

the government body responsible for all aspects of the Mining Industry, including community

relations.

As a matter of background, the Bilimoia Interi m Landowners Association (“BILA”) was

established in 2017 with the assi stance of the MRA to bring toge ther different Bilimoian groups

into one association and the Chairman was el ected in April 2017. The association is termed

interim as finalization of who constitutes Bilimoian Landowners awaits the outcome of an appeal

of the Land Titles Commission determination of 2009.

K92 Mining understands th at the first meeting of this inte rim association with the landowners

occurred on Sunday 13 th August and understands that the mee ting was to deal with internal

issues for BILA and its stakeholders. K92 Mining understands that the BILA is still to determine

whether they will use the existing Bilimoia De velopment Corporation (“Bildevco”) or a new

business entity to participate in business opport unities created by the co mpany and its suppliers.

However, this is a matter for BILA to decide in ternally and is not a matter for K92 to decide

upon.

Additional to the direct employment opportunitie s at the mining, maintenance and processing

operations, there are currently many other business ventures which Bildevco and Bilimoian

Landowners are participating in, including the mi ne catering contract, provision of security

services and refuse collection as well as numerous small busine ss opportunities including

maintenance, supply of mobile plant and insta llation of infrastructure . Additionally, K92 will

continue to train and develop the workforce, especially lo cal Landowners, bringing mining

knowledge and mining skills to the local comm unities for the benefit of not only these

communities, but also the mine.

The expansion of the business opp ortunities of which K92 has identified a number, has been

awaiting the formation of a single Bilimoian body to represent the Landowners, which was only

recently solved with the formation of BILA, and s till awaits the decision of BILA in relation to

the business entity.

A meeting was arranged by the MRA between PNG National, Provincial and Local Government

agencies, BILA and the Company. On the morning of Thursday 24th August, prior to the meeting

commencing on site, a group of la ndowners represented by BILA entered the mine via the 800

mine portal. The company removed its personnel from the area in an attempt to diffuse the

situation without incident. Howe ver, during their presence, th e group caused major damage to

two trucks and one small loader /IT as well as three light ve hicles and some underground fixed

plant.

No other areas of the mine nor any areas aroun d the processing facilities were impacted by the

group and no other damage reported. The Company is currently assessing the full impact of the

damage, however it anticipates that there will be a disruption to operations as the damaged

equipment is evaluated and then fixed or replaced.

K92 Mining remains committed to all existing agreements with all Landowner groups and to

expanding the business opportunities for the Landowner groups. In addition, K92 has contributed

to numerous community projects and intends to expand this involvement as the K92 operation

grows.

K92 has received strong support from the various landowner groups associated with this region

since acquiring the project and during the restart. Following the above incident, the Company has

been in communications or held meetings with the MRA and the various Government agencies

all of whom have confirmed thei r support for the Company and to co ntinuing to assist to resolve

the issues with the Landholder group.

K92 completed the acquisition of the Kainantu Gold Mine from Barrick Gold in March 2015.

The mine had been on care and maintenance since January 2009 and K92 Mining commenced

the refurbishment and rehabilitation of the mine , process plant and rela ted infrastructure in

February 2016. The Company received approva l from the Mineral Resources Authority

(“MRA”) to recommence mining operations in October 2016, which has successfully occurred

and, in early 2017, as previously reported the mine shipped the first concentrates containing gold

and copper to the Port of Lae for shipment overseas for smelting and refining.

Since recommencing operations K92 has built up a workforce of 500 employees and contractors.

In excess of 90% of these 500 employees and cont ractors are from Papua New Guinea, of which

over 300 are from local landowner groups.

K92 will provide a further report on community rela tions in the near future and looks forward to

continuing advancing the project for the mutual benefit of all K92 stakeholders including the

local Landholders.

On behalf of the company,

John Lewins, Chief Executive Officer and Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined

in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This

news release includes certain "forward-looking statements" under applicable Canadian securities

legislation. Forward-looking statements are necessarily based upon a number of estimates and

assumptions that, while considered reasonable, are subject to known and unknown risks,

uncertainties, and other factors which may cause the actual results and future events to differ

materially from those expressed or implied by such forward-looking statements. All statements

that address future plans, activities, events or developments that the Company believes, expects

or anticipates will or may occur are forward-looking information, including statements regarding

the realization of the preliminary economic analysis for the Project, expectations of future cash

flows, the proposed plant expansion, potential expansion of resources and the generation of

further drilling results which may or may not occur. Forward-looking statements and information

contained herein are based on certain factors and assumptions regarding, among other things, the

market price of the Company's securities, metal prices, exchange rates, taxation, the estimation,

timing and amount of future exploration and development, capital and operating costs, the

availability of financing, the receipt of regulatory approvals, environmental risks, title disputes,

failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes,

claims and limitations on insurance coverage and other risks of the mining industry, changes in

national and local government regulation of mining operations, and regulations and other

matters.. There can be no assurance that such statements will prove to be accurate, as actual

results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements. The

Company disclaims any intention or obligation to update or revise any forward-looking

statements, whether as a result of new information, future events or otherwise, except as required

by law.