K92 Provides Operational Update

Suite 488 – 1090 West Georgia Street

Vancouver, British Columbia

Canada V6E 3V7

Telephone: (604) 687-7130

Facsimile: (604) 608-9110

NEWS RELEASE

March 1, 2017 Vancouver, British Columbia

K92 Provides Operational Update

 ore tonnes mined in January 50% above bud get, with contained Au ozs 20% above

budget

 As at February 24 th, 2017, almost 8,000 tonnes of ore mined for the month, and on

target to achieve over 10,000 tonnes for the month, against a budget of 6,700 tonnes

 As at 24 th February, 2017, almost 5,000 tonnes pro cessed and on target to achieve

7,000 tonnes for the month, against a budget for the month of 6,700 tonnes

 Over 200 tonnes of concentrate produced to da te, with the first containers currently

being filled for shipment to the port of La e. First shipment of concentrates from the

port of Lae to smelter scheduled for early to mid-March

K92 Mining Inc. (“K92” or the “Company”) is pleased to report mining production has shown a

steady ramp up over the last 3 months with ore tonnes mined being over 50% above budget in

January, 2017, while contained gold ounces we re almost 20% above budget. The Company

mined over 8,000 ore tonnes by February 24 th, 2017, and the Company is on target to achieve

10,000 tonnes by month end, which is 40% above February budget. The increased ore production

is in part due to significant lower grade ore bein g identified outside of the planned ore envelope,

which was identified by our ongoing grade contro l program, highlighting the importance and

success of this program. All current February production has come from ore development

headings and the Company currently anticipate s the first stope mining to commence on schedule

by the end of March.

The commissioning of the drum scrubber at th e process plant has now been completed and

production is ramping up to meet the mine prod uction, with tonnes proce ssed in February 2017,

projected to be 5% above the February 2017 budget of mined 6,700 ore tonnes. The product from

the drum scrubber has met the required specifi cations and has allowed the crushing plant to

operate satisfactorily, with all of the fines portion, accounting for approximately 30% of the feed,

bypassing the crusher and reporting directly to the milling classification circuit.

The process plant has produced in excess of 200 tonnes of concentrate, with current grades

averaging approximately 150 g/t Au. This material is currently being loaded into containers for

transport to the port of Lae, with the first shipme nt scheduled to depart the port of Lae early to

mid-March, 2017.

As at February 24, 2017, there were approximately 12,000 tonnes of ore stockpiled on surface at

an average grade of just over 5 g/t, which in cluded some lower grade development ore mined

from outside the budgeted ore envelope. The Compa ny anticipates that this stockpile will allow

the plant to achieve over 80% of the design throughput in March, 2017. Based on performance to

date, the Company anticipates that both mi ne production and process plant throughput will

exceed budget in the March quarter.

The above production has been achieved despite unusually high rainfall during January and early

February, with January recording 700 mm of rain on site against a long-term average of 240 mm.

This rainfall has also caused some disruption to the power supply from PNG Power which has

had some adverse effect on operations, primarily the process plant.

The Company does have standby power installed fo r the mine, camp and offices and is in the

process of upgrading the installed standby power to also provide sufficient power to run the

entire processing plant. The dies el generators for this upgrade are currently on site and their

installation is due to be completed shortly.

Ian Stalker, K92 Chief Executive Officer and Director, states, “It is encouraging to report to all

stake-holders the current operational status of the Kainantu Mine. Progress has been made in all

aspects of our business, in excess of our own internal budget numbers. Our first concentrate is

being loaded into containers ready for onward shipping to the Smelter facility, and the grade

being recorded at +150 gpt Au., is coming from treatment of our lower grade development ore

This is hugely encouraging for the operation forecast when we start processing our mined stope

ore later in March.

The performance of the underground mine has been excellent, with ore production being ahead

of schedule. This is all the more remarkable against the background of re-starting an old mine in

weather conditions that are the wettest recorded for many years. I think this is testament to the

skills and dedication of the entire team that is K92, and I wish to record my thanks to them.”

On behalf of the company,

Ian Stalker

Chief Executive Officer and Director

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

potential ongoing production which may or may not occur and the generation of further

production assessment work at deposits, which may or may not occur. The Preliminary

Economic Assessment (“PEA”) issued by K92 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. 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, 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.