K92 Mining Files Updated Independent Technical Report, Mineral Resource Estimate Update & Preliminary Economic Assessment of Irumafimpa & Kora Gold Deposits

The PEA estimates:

Kora

• Over a 9 year operating life the plant would treat 3.2 million tonnes averaging 7.1 g/t Au, 25 g/t Ag and 1.7% Cu (9.3 g/t Au Eq*)
  
  
• this would generate an estimated positive cash flow of US $537 million using current metal prices if 15m levels are used in mining. If 25m levels are used then net cashflows are estimated as US $558 million. This cashflow includes conceptual allowances for capital
  
  
• production of an estimated average of 108,000 Au Eq* ozs per annum over an 8 year period from Year 2 through to Year 9;
  
  
• An estimated pre-tax NPV of US $415 million for 25m levels; or US $397 million for 15m levels; using current metal prices, exchange rate and a 5% discount;
  
  
• an estimated after-tax NPV of US $329 million for 25m levels; or US $316 million for 15m levels; using current metal prices, exchange rate and a 5% discount;
  
  
• initial capital cost is estimated to be US $13.8 million, including the US $3.3 million for the plant upgrade identified in the Mincore Scoping Study but excluding the proposed Kora exploration inclines and diamond drilling. Sustaining Capital Cost is estimated to be a further US $64 million spent over the life of the Kora mining for 25m levels or US $83 million for 15m levels;
  
  
• operating cost per tonne is estimated to be US $125/tonne for 25m levels or US $126 / tonne for 15m mining levels; and
  
  
• excluding initial capital expenditure of US $14 million, cash cost is estimated to be US $547 / oz Au Eq (inclusive of a 2.5% NSR) and AISC of US $619/oz Au Eq for 25m mining levels; or US $549/oz (inclusive of a 2.5% NSR) and AISC of US $644/oz Au Eq for 15m mining levels.
  
  

Current metal prices used were Au - $1300; Ag - US $18/oz; Cu - US $4800/tonne.

*Au Eq calculated on above metal prices

Irumafimpa

• planned treatment of 0.49 million tonnes at 8.4 g/t Au, 5.8 g/t Ag, 0.11% Cu over the 3 years of the mine plan generating a net operating cash flow of US $56 million
  
  
• planned treatment of 1.40 million tonnes at 8.2 g/t Au, 5.8 g/t Ag, 0.19% Cu over 8 years life of mine schedule, generating a net operating cash flow of USD $153 million
  
  

A mineral resource estimate, based on 78,935 metres of drilling from 767 holes and 18,312 metres of assayed intervals across all lodes is described in section 1.3 of the Technical Report. Total resources in the Inferred category are estimated as 1,760,000 equivalent ounces at 11.2 g/t Au Eq and total resources in the Indicated category are estimated as 240,000 equivalent ounces at 13.4 g/t Au Eq.

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 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 that are not Mineral Reserves do not have demonstrated economic viability.

Report co-author Anthony Woodward, BSc (Hons), M.Sc. MAIG, of Nolidan Mineral Consultants is the "qualified person" under the meaning of National Instrument 43-101 responsible for and has reviewed and approved the technical information in this news release.

On behalf of the Company,

Ian Stalker, Chief Executive Officer and Director

The TSXV has neither approved nor disapproved the contents of this press 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.



Contact

K92 Mining Inc.
Mario Vetro, Investor Relations
(604) 687-7130
(604) 608-9110