Underground Mining Operations, including Kora Drilling from Underground Set Up, have Recommenced at Kainantu Gold Mine and K92 Reaches Agreement with Landowner Group

Suite 488 – 1090 West Georgia Street

Vancouver, British Columbia

Canada V6E 3V7

Telephone: (604) 687-7130

Facsimile: (604) 608-9110

NEWS RELEASE

September 26, 2017 Vancouver, British Columbia

K92 MINING INC.

Underground Mining Operations, including Kora Drilling from Underground Set Up, have

Recommenced at Kainantu Gold Mine and K92 Reaches Agreement with Landowner Group

• Mining operations have recommenced and should be back to pre-incident level by the

end of October

• Drilling from underground set up has recommenced to follow up on the Kora Deposit

extension discovery

• Majority of mobile fleet including all drill rigs, LHD’s (loaders) and four of six trucks

fully operational

• Repairs to damaged underground equipment and infrastructure lar gely completed

with only minor issues outstanding

K92 Mining Inc. (“K92”) is pleas ed to report that underground o perations have recommenced at

its Kainantu Gold Mine following the signing of a resolution between the Local Landowner Group,

the Mineral Resources Authority, and the Company.

As previously advised, extensiv e evaluation of the underground mine revealed that only minor

damage to infrastructure and mobile plant occurred and repairs have been largely completed. As a

result, mining operations will recommence almost immediately, w ith first ore trucking expected

next week and pre-incident levels expected to be achieved by the end of October.

One of two diamond drill rigs have been set up in the new Kora drill set up (cuddy) located

approximately 50 metres from the previously intersected Kora lo de and drilling has commenced.

The Company has completed the first 150 metres of development o f the Kora exploration cross

cut and footwall drive designed to allow more efficient and eff ective diamond drilling of the

projected Kora Vein system. A second cuddy should be completed by the end of October, allowing

a second rig to commence drilling the Kora lode approximately 100 metres along strike.

Based on the recent high-grade discovery of the Kora extension (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 thicknesses), the design of the Kora exploration drive was

enhanced to incorporate the development of a footwall drive app roximately 50 metres from the

projected strike of the Kora vein system. This modification allows the development of drill cuddies

approximately 100 metres closer to the interpreted position of the Kora vein system than

previously planned, based on the results from diamond drill 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 from 154 metres

downhole, interpreted to be the discovery of an extension of the Kora deposit.

The KMDD0009 intersection is approximately 500 metres along str ike 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 Company has a third MT2010 low profile truck in transit and due to arrive on site within the

next two weeks, while on site the Company has a Volvo 30 tonne ADT (Articulated Dump Truck)

which is designed to go undergr ound to pick up ore and two Koma tsu 35 tonne ADT’s that can

tram on surface, so does not anticipate that trucking will be a significant hindrance to operations.

As noted previously all other equipment including the company’s LHD loaders and the drill rigs

are fully operational.

K92 acknowledges the considerable work and goodwill which has been brought to the process of

achieving a satisfactory resolution by the Mining Minister John son Tuke, the Mineral Resource

Authority under Managing Director Philip Samar, the executives of the Bilimoia Interim

Landowners Association and representatives of the Eastern Highl ands Provincial and Kainantu

Local Governments and thanks them for their efforts.

K92 Chief Executive Officer, John Lewins, states, “The signing of the resolution with the Bilimoia

Interim Landowner Association (BILA) addresses the underlying issues with the Landowners and

allows the company to focus on building up pr oduction from underground operations to target

commercial production in the near term. Expl oration drilling to follow up on the recently

announced Kora Deposit extension discovery is re ady to start and mine production from onsite

will recommence shortly. We thank the various parties who worked with K92 throughout this

process including Mining Minister Tuke and Mr. Sam ar of the Mineral Resources Authority. We

look forward to a strengthening relationship with BILA, its members and our other Landowner

Groups and working with them to realize the opportuni ties that this project will provide for all

involved.”

K92 exploration manager Chris Muller, PGeo, a qualified person under the meaning of Canadian

National Instrument 43-101, has reviewed and is responsible for the technical content of this news

release. Data verification by Mr . Muller includes significant t ime onsite reviewing drill core,

surface exposures, underground workings and discussing work pro grams and results with

exploration personnel.

On behalf of the company

John Lewins

Chief Executive Officer and Director

Neither the TSX Venture Exchange nor its Regulation Services Pr ovider (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: Thi s

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

legislation. Forward-looking stat ements are necessarily based u pon a number of estimates and

assumptions that, while consider ed reasonable, are subject to k nown and unknown risks,

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

materially from those expressed or implied by such forward-look ing 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, pote ntial expansion of resources and the generation of further

drilling results which may or may not occur. Forward-looking st atements and information

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

market price of the Company’s securities, metal prices, exchang e rates, taxation, the estimation,

timing and amount of future exploration and development, capita l and operating costs, the

availability of financing, the r eceipt 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 mi ning industry, changes in national

and local government regulation of mining operations, and regul ations and other matters.. There

can be no assurance that such statements will prove to be accur ate, as actual results and future

events could differ materially from those anticipated in such s tatements. Accordingly, readers

should not place undue r eliance 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.