KNT.TO · 2017-08-22 12:00:00

K92 Mining Intersects Kora Vein in Cross Cut from Kora Exploration Drive

Exploration Programs

Suite 488 – 1090 West Georgia Street

Vancouver, British Columbia

Canada V6E 3V7

Telephone: (604) 687-7130

Facsimile: (604) 608-9110

NEWS RELEASE

August 22, 2017 Vancouver, British Columbia

K92 MINING INC.

K92 Mining Intersects Kora Vein in Cross Cut from Kora Exploration Drive

 Channel sampling of the north and south fa ces of the vein system exposed in the

cross cut has returned an average of 9.89 g/t Au, 46 g/t Ag and 2.44% Cu over a true

width of 2.7 metres

 K92 has commenced mining a 2,000 tonne bul k sample from the intercepted Kora

Vein and expects to treat this material through the existing process plant at the mine

in September

 Kora is a large and high grade deposit, open for expansion in every direction and

strongly mineralized at the extent of all drilling, with a current Inferred Resource of

4.36 million tonnes of 7.3 g/t Au, 35 g/t Ag and 2.23% Cu

K92 Mining Inc. (TSX VENTURE:KNT) (OTCQB :KNTNF) (“K92” or the “Company”) is

pleased to announce it has intersecte d what it interprets as the Kora Vein system in a cross cut

from the modified Kora exploration drive. The intersection was predicted at this location and

comprises a strongly sulphide (bornite, chalcopyrite and pyrit e) mineralized quartz vein

approximately 2.7 metres wide. Channel sampling of the north and south faces of the vein

system exposed in the cross cut has returned an average of 9.89 g/t Au, 46 g/t Ag and 2.44% Cu

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

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

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

extension intersection reported in hole KMDD0009 (see K92 News Release “K92 Mining

Discovers High Grade Extension of Kora Deposit in First Completed Exploration Hole” May 24,

2017 for details including true thic knesses). 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 metr es downhole, interpreted to

be the discovery of an extension of the Kora deposit.

The Company has commenced mining an initial 2,000 tonne bulk sample from the interpreted

Kora Vein, mining along strike in a northerly and southerly dire ction from the cross cut. The

bulk sample is being mined from a 4 metre x 4 metre horizontal development designed to reflect

the stoping width envisaged in the Preliminary Ec onomic Assessment ("PEA") referred below. It

is anticipated that th is material will be treated thr ough the process plan t during September

generating important information on metallurgical performance and providing a bulk concentrate

for evaluation by potential offtakers.

As previously noted the design of the Kora expl oration drive has been e nhanced to incorporate

the development of a footwall drive approximately 50 metres from the projected strike of the

Kora vein system, together with the cross cut to intersect the vein system to allow the bulk

sample to be obtained. This modification allows the development of drill cuddies approximately

100 metres closer to the interpre ted position of the Kora vein syst em than previously planned.

The first drill cuddy is currently being fitted out and it is antici pated that drilling will commence

within 24 to 48 hours from this cuddy.

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 dril ling 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 AuEq (see

attached Table 1.0).

The interpreted strike le ngth of the Kora/Eutompi vein syst em is approximately 1,100 metres at

surface, but, potentially, based on lim ited drill testing to date, this reduces at depths greater than

200 metres to 500 metres of strike length, altho ugh it is open for expansion both at depth and

along strike in both directions. The deepest in tersection 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 infe rred 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 metres true widt h) at two g/t Au, 4.8 g/t Ag and 1.3 per cent

Cu, including 6.4 metres (1.7 metres true width) at 5.52 g/t Au and 8 metres (2.1 metres true

width) at 3.7 per cent Cu, from 920.8 metres.

K92 has filed and made available for downloa d on the company's SEDAR profile a technical

report titled "Independent Technical Report, Mineral Resource Update and Preliminary

Economic Assessment ("PEA") 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, drilli ng and sampling procedures, la b analysis, and QAQC 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 ca sh flow of $537-million (U.S.) using current

metal prices if 15-metre levels are used in mining; if 25-metre leve ls 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 me tal 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 sc oping study, but excluding the

proposed Kora exploration inclines and diam ond drilling; sustaini ng 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-mill ion (U.S.), cash cost is estimated to be

$547 (U.S.) per ounce AuEq (inclusive of a 2.5-per-cent net sme lter return (NSR)

royalty) and all-in sustaini ng cost (AISC) of $619 (U.S.) per ounce AuEq for 25-metre

mining levels, or $549 (U.S.) per ounce (inc lusive 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 consid erations 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 th at are not mineral reserves and do not have demonstrated

economic viability.

Table 1.0 IRUMAFIMPA AND KORA/EUTOM PI RESOURCES

Resource by Deposit and Category

Deposit Resource