Katanga Mining Announces 2018 Third Quarter Production Results and Date of Release of 2018 Third Quarter Financial Results

ZUG, Switzerland, Oct. 25, 2018 - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces its 2018 third quarter production results and date of release of 2018 third quarter financial results. Katanga's unaudited interim financial statements and accompanying Management's Discussion and Analysis will be filed on SEDAR, www.sedar.com.

Production highlights during the three and nine months ended September 30, 2018

Commissioning and resumption of production after 2015 suspension

On September 11, 2015, the Company announced the decision to suspend the processing of copper and cobalt during the construction phases of the whole ore leach project ("WOL Project"). The suspension continued throughout most of 2017 with copper production resuming on December 11, 2017.

• During Q3 2018, construction continued on phase 2 of the WOL Project. The second WOL train and the first part of the counter current decantation ("CCD") circuit was completed and commissioned. The final components of phase 2 of the WOL Project being the remaining CCD circuit and the electro-winning tank house are scheduled for completion and commissioning in Q4 2018; and
  
  
• Copper cathode production increased to 39,296 tonnes in Q3 2018 from 35,615 tonnes in Q2 2018. Cobalt contained in hydroxide increased to 3,512 tonnes in Q3 2018 from 2,429 tonnes in Q2 2018. The increase in copper cathode and cobalt contained in hydroxide is related to the ongoing ramp-up of production and the commissioning and re-commissioning of related assets.

Mining

Total ore mined increased to 3,439,667 tonnes in Q3 2018 from 2,854,228 tonnes in Q2 2018. Total ore mined increased to 7,696,096 tonnes in Q3 2018 YTD from nil tonnes in Q3 2017 YTD.

Total waste mined increased to 15,365,386 tonnes in Q3 2018 from 12,441,427 tonnes in Q2 2018. Total waste mined increased to 37,146,249 tonnes in Q3 2018 YTD from 34,088,252 tonnes in Q3 2017 YTD.

Total contained copper increased to 69,643 tonnes in Q3 2018 from 58,350 tonnes in Q2 2018. Total contained copper increased to 156,754 tonnes in Q3 2018 YTD from nil tonnes in Q3 2017 YTD.

The increase in total material mined in the open pits in Q3 2018 against Q2 2018 reflects the ongoing ramp-up and re-commissioning of production equipment, in line with the optimized mine plan following the resumption of ore mining activities in Q4 2017. It has been supported by the re-commissioning in Q3 2018 of:

• one CAT 793D truck for increased open pit hauling capacity;
• one CAT AD45B truck for increased underground hauling capacity;
• one CAT R2900 loader for production; and
• one Atlas Copco 282 boomer for development.

The increase in total contained copper in Q3 2018 compared to Q2 2018 is driven by an increase in total ore mined, in line with the optimized mine plan and commissioning schedule of the second train of the WOL Project.

The increase in total material mined in the KTO underground in Q3 2018 compared to Q2 2018 relates to the increase in secondary development as well as the continuation of primary development.

The increase in very low-grade ore and cobalt ore mined in Q3 2018 compared to Q2 2018 reflects the optimization of the long-term feed strategy. As a result of this strategy, very low-grade ore and cobalt ore are currently being stockpiled for future feed into the processing plant.

Kamoto concentrator ("KTC")

Total material milled and processed increased to 1,944,616 tonnes in Q3 2018 from 1,703,322 tonnes in Q2 2018. Total material milled and processed increased to 5,046,933 tonnes in Q3 2018 YTD from 1,277,273 tonnes in Q3 2017 YTD.

Total concentrate produced increased to 49,122 tonnes in Q3 2018 from 42,674 tonnes in Q2 2018. Total concentrate produced increased to 139,805 tonnes in Q3 2018 YTD from 63,277 tonnes in Q3 2017 YTD.

Total oxide feed received at Luilu increased to 1,195,149 tonnes in Q3 2018 from 1,040,750 tonnes in Q2 2018. Total oxide feed received at Luilu increased to 3,064,107 tonnes in Q3 2018 YTD from nil tonnes in Q3 2017 YTD.

Total contained copper in concentrate and oxide feed produced increased to 47,660 tonnes in Q3 2018 from 41,357 tonnes in Q2 2018. Total contained copper in concentrate and oxide feed produced increased to 123,039 tonnes in Q3 2018 YTD from 9,852 tonnes in Q3 2017 YTD.

The increase in total material milled and processed at KTC and concentrate and oxide feed received at Luilu in Q3 2018 compared to Q2 2018 and Q3 2018 YTD compared to Q3 2017 YTD reflects the resumption of production in December 2017 following the completion of phase 1 of the WOL Project. Processing activities were largely suspended during the comparative periods in 2017.

The increase in total contained copper in concentrate and oxide feed produced in Q3 2018 compared to Q2 2018 reflects the increase in total underground material milled and sulphide concentrate produced.

The increase in total material milled and processed at KTC, concentrate and oxide feed received at Luilu and total contained copper in concentrate and oxide feed produced for the year to date have been achieved by:

• optimization and ramp-up of the current milling circuits in line with phase 1 of the WOL Project commissioning plan; and
• re-commissioning of cascade mills 1-5 for increased milling capacity of open pit and underground material.

Luilu metallurgical plant

Total copper cathode produced increased to 39,296 tonnes in Q3 2018 from 35,615 tonnes in Q2 2018. Total copper cathode produced increased to 102,587 tonnes in Q3 2018 YTD from nil tonnes in Q3 2017 YTD.

Total cobalt contained in hydroxide increased to 3,512 tonnes in Q3 2018 from 2,429 tonnes in Q2 2018. Total cobalt contained in hydroxide increased to 6,466 tonnes in Q3 2018 YTD from nil tonnes in Q3 2017 YTD.

The increase in copper cathode and cobalt contained in hydroxide in Q3 2018 compared to Q2 2018 and Q3 2018 YTD compared to Q3 2017 YTD reflects the resumption of production in December 2017 following the completion of phase 1 of the WOL Project. Processing activities were largely suspended during the comparative periods in 2017. The increases for the year to date have been achieved by:

• commissioning of the second train of the WOL Project and the first part of the CCD circuit;
• commissioning of the second high-grade solvent extraction train, the cobalt purification plant and the associated utility plants;
• re-commissioning of the sulphide receiving circuit which consists of thickeners and receiving tanks, roaster 5 and its associated auxiliary equipment; and
• increasing total sulphide feed to be roasted and leached in line with the ramp-up of operations for phase 2 of the WOL Project commissioning plan.

Major projects update

WOL Project

The WOL Project includes the construction of optimized copper and cobalt circuits intended to reliably produce up to 300,000 tpa of copper cathode over the life of the mine. This is achieved by adding additional leach capacity at Luilu in order to leach run-of-mine oxide ore directly rather than concentrating the oxide ore at KTC.

Q3 2018 update

Construction continued on phase 2 of the WOL Project. The first part of the CCD circuit and the second WOL train was completed and commissioned. The final components of phase 2 of the WOL Project being the remaining CCD wash circuit and the electro-winning tank house are scheduled for completion and commissioning in Q4 2018.

Cobalt Projects

The objective of the cobalt projects is to upgrade the existing cobalt plant design in order to reduce the bottlenecks and increase production capacity up to 40,000 tpa of cobalt contained in hydroxide by modification to the precipitation, thickening & filtration and drying & bagging processes. The improvements being made as part of the cobalt projects will integrate with the existing WOL processing facilities at Luilu.

Q3 2018 update

The cobalt projects are progressing according to the project plan. Demolition works and civil and earthworks have been completed to facilitate construction. The additional filters, MgO plant and dryers are scheduled for completion and commissioning during Q1 2019.

Acid Plant

The Acid Plant is a sulphuric acid and sulphur dioxide production plant at KCC, (the "Acid Plant"), intended to improve the reliability of the supply of these reagents to the WOL processing circuits.

Q3 2018 update

In addition to a continuation of design work on the Acid Plant, earthworks are nearing completion, civil works have commenced and orders for major long lead items are beginning to arrive on site.

Q3 2018 Financial Results

The Company expects to release its third quarter 2018 financial results on or about November 7, 2018.

Outlook

2018 full year guidance remains for 150kt of copper and 11kt of cobalt production.

Qualified Person

Tahir Usmani, PEng, APEGA, Chief Mine Planning Engineer of KCC, has reviewed and approved the scientific and technical disclosure in this news release. Mr. Usmani is a "qualified person" for the purposes of NI 43-101 - Standards of Disclosure for Mineral Projects.

About Katanga Mining Limited
Katanga Mining Ltd. operates a major mine complex in the Democratic Republic of Congo producing refined copper and cobalt. The Company has the potential to become Africa's largest copper producer and the world's largest cobalt producer. Katanga is listed on the Toronto Stock Exchange under the symbol KAT.

Forward Looking Statements
This press release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. This press release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Although Katanga has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking 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 in accordance with applicable securities laws.

SOURCE Katanga Mining Ltd.