KNT.TO · 2017-11-07 12:00:00

K92 Mining Intersects Multiple High Grade Gold and Copper Veins in Kora Exploration Drilling

Drill Results

Suite 488 – 1090 West Georgia Street

Vancouver, British Columbia

Canada V6E 3V7

Telephone: (604) 687-7130

Facsimile: (604) 608-9110

NEWS RELEASE

November 07, 2017 Vancouver, British Columbia

K92 MINING INC.

K92 Mining Intersects Multiple High Grade Gold and Copper Veins in Kora Exploration

Drilling

• 3.40m at 11.76g/t Au, 21 g/t Ag and 2.84% Cu (16.37 g/t AuEq) plus 3.80m at 5.45g/t

Au, 8 g/t Ag and 0.22% Cu (5.89 g/t AuEq) in drill hole KMDD0022

• Second rig added and now drilling from underground drill cuddy DDC1

K92 Mining Inc. (“K92”) is pleased to announce it has intersected high grades of gold and copper

mineralization in exploration drilling designed to follow up on the initial discovery of the northern

extension of the Kora vein.

K92 drill hole KMDD0022 has intersected 3.4m at 11.76 g/t Au, 2 1 g/t Ag and 2.84% Cu (16.37

g/t AuEq) approximately 25 metres along strike to the south and 25 metres down dip from drill

cuddy DDC1.

Significantly, in the same drill hole, K92 also intersected what it interprets as the Irumafimpa vein

and parallel to the Kora Vein, which assayed 3.80m at 5.45 g/t Au, 8 g/t Ag and 0.22% Cu (5.89

g/t AuEq).

This is the tenth hole drilled to follow up on the initial disc overy of the northern extension of the

Kora vein in hole KMDD0009, which recorded an intersection of 5.4 metres at 11.68 g/t gold, 25.5

g/t silver and 1.33 per cent copper 500 metres to the north fro m the closest point of the currently

defined Kora deposit inferred resource (see K92 news release da ted May 24, 2017, for details

including true thicknesses). All ten of these holes have inters ected gold, silver and copper

mineralization.

K92 is currently undertaking a pr ogram drilling a total of 24 d rill holes from underground drill

cuddy DDC1 located approximately 50 metres from the Kora vein at 59125 north, 29876 east and

1,188 mRL. This initial 24 hole program, which will be complete d in December, is designed to

drill out an area of approximately 150 metres by 150 metres on a 25 m by 25 m grid pattern, which

is grade control spacing.

Based on the ongoing success of the Kora exploration drill program, K92 has added a second drill

rig which is now operating from an underground set up. This will increase data flow as K92 targets

to build up tonnage via drilling at grade control spacing in th e immediate area surrounding the

Kora extension discovery while also targeting to conduct enhanced exploration of Kora, a deposit

which remains not only open in every direction but strongly min eralized at the extent of all

drilling.

K92 also reports that it is continuing to drive along the strik e of the Kora vein in a northerly and

southerly direction with this mined material being processed through the plant.

K92 Chief Executive Officer, John Lewins, states, “ We continue to intersect high grades of gold

and copper as we follow up on the Kora extension discovery. Base d on this ongoing success, a

second drill rig has now been added to inte nsify and expand this de finition and exploration

program.”

Table 1.0 Kainantu Gold Mine – Significant Intercepts from Kora Underground Drilling

Kora Intersection

Irumafimpa Intersection

Gold equivalent uses a copper price of $2.50 (U.S.)/pound, a si lver price of $16 (U.S.)/ounce and a gold

price of $1,200 (U.S.)/ounce.

Table 2.0 Kainantu Gold Mine – Collar Locations for Kora Underground Diamond Drilling

Hole_id Collar

location Collar

orientation EOH

depth (m)

Local north Local East mRL Dip Local

azimuth

KMDD0022 59124.54 29876.48 1187.65 -15.62 243.01 75.4

Hole_id From (m) To (m) Interval

(m)

True width

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

equivalent

KMDD0022 62.00 65.40 3.40 2.95 11.76 21 2.84 16.37

including 62.00 63.00 1.00 0.87 1.23 4 0.12 1.46

including 63.00 63.60 0.60 0.52 0.84 4 0.04 0.95

including 63.60 64.40 0.80 0.69 1.67 48 6.20 11.76

including 64.40 64.80 0.40 0.35 0.20 3 0.13 0.44

including 64.80 65.40 0.60 0.52 61.40 44 7.48 73.40

Hole_id From (m) To (m) Interval (m) True width

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

equivalent

KMDD0022 14.60 18.40 3.80 3.30 5.45 8 0.22 5.89

including 14.60 15.20 0.60 0.52 22.55 5 0.07 22.72

including 15.20 15.62 0.42 0.36 0.48 4 0.01 0.55

including 15.62 16.70 1.08 0.94 3.76 11 0.16 4.15

including 16.70 17.25 0.55 0.48 0.14 3 0.01 0.19

including 17.25 17.60 0.35 0.30 4.71 23 1.42 7.17

including 17.60 18.40 0.80 0.69 1.47 6 0.16 1.79

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

Table 2.0) 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 S E D A R p ro f ile a te c h n ic a l

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 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 incl udes conceptual allowances

for capital;

• Production of an estimated average of 108,000 AuEq (1) ounces p er 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, usi ng current metal prices, exchang e rates and a 5-per-cent

discount;

• Initial capital cost is estimated to be $13.8-million (U.S.), i ncluding 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 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 ton ne 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 o f 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 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 2.0 IRUMAFIMPA AND KORA/EUTOMPI RESOURCES

Resource by Deposit and Category

Deposit Resource