Katanga Mining Provides Operational Update

Update concerning Significant Events

Land Rights Negotiations with Gécamines
As outlined in Katanga's 43-101 Technical Report (the "43-101 Report") issued on November 7 2019, the Company has been in discussions with La Générale des Carrières et des Mines ("Gécamines"), the Company's 25% joint venture partner in KCC, to secure land for construction of a new life of mine tailings facility and to enhance KCC's ability to more efficiently operate its mines, facilities and other key infrastructure requirements

Since the issuance of the 43-101 Report and Q3 production results, these discussions between KCC and Gécamines with respect to the rights required for the construction of the new tailings facility have progressed and KCC is seeking to enter into a contract with Gécamines for these rights. The negotiations are ongoing but an agreement may occur as early as this month.

If KCC and Gécamines are able to reach an agreement on the requested land areas, the risks for KCC's operations resulting from land constraints, which are described in the 43-101 Report (and summarized on page 78 of the Prospectus) would be mitigated. However, there can be no guarantee that such an agreement will be concluded.

Restatement of Historical Financial Statements filed in 2017 and OSC Settlement
On December 18, 2018, Katanga announced that the Ontario Securities Commission ("OSC") approved a global settlement agreement (the "OSC Settlement Agreement") between staff of the OSC and the Company, certain of its former directors and officers and its Chief Executive Officer, relating to the investigation into certain of the Company's historical disclosures. As a term of the OSC Settlement Agreement, the Company also agreed to retain a consultant to complete a review of the policies, procedures and effectiveness of: (a) the Company's metal accounting with respect to reporting of copper and cobalt metal production; and (b) the Company's financial accounting with respect to the integration of production statistics, including the calculation of cost of sales and inventory values. Full details of OSC Settlement Agreement are available on the OSC website: www.osc.gov.on.ca.

The Company has previously reported this year on the work undertaken by the Consultant and the Company including their joint development and submission to OSC Staff of a timetable for future action including further testing in Q1 2020 of process upgrades scheduled to be implemented by the end of 2019. The Company confirms that all required accounting systems upgrades are now fully or substantially implemented and expects the Consultant testing to proceed as scheduled in Q1 of 2020.

Fatalities of Illegal Artisanal Miners
The armed forces of the DRC (the "FADRC") remain in the area of the operations of KCC. Since this FADRC intervention, which is continuing, KCC has not become aware of any confirmed human rights violations and the illegal miners who had occupied the KCC site remain dispersed. KCC has continued to make significant efforts to upgrade additional perimeter controls with nearly 20km of new perimeter security fencing installed in H2 2019. Construction of these additional perimeter controls will continue into 2020.

New Directors and Executive Officers of the Company and KCC
The new management team of Mark Davis (CEO of KML and Managing Director of KCC) and Clint Donkin (Operations Director of KCC) have been appointed and have taken up their roles.

Update on Major Projects

Cobalt Projects Update
Cobalt dryer #1 has now returned to operation at a reduced capacity, of around 60% of design, following the completion of temporary repairs. Dryer #2 remains offline for design modifications, with commissioning scheduled during Q1 2020, and reaching design capacity in Q2 2020. Once dryer #2 is operational, dryer #1 will be taken off-line for design upgrade. Dryer #1 is expected to then be back online and operating at full capacity in Q2 2020. Full drying capacity should therefore be achieved from the start of Q3 2020. Once full drying capacity is reached, KCC will be in a position to export all of its cobalt production, including a gradual drawdown of accumulated cobalt inventories.

The objective of the cobalt debottlenecking projects (the "Cobalt Projects") at KCC is to upgrade the existing cobalt plant design in order to reduce bottlenecks through modification of the precipitation, thickening, filtration, drying and bagging processes. This will align the design of the cobalt plant with the average life-of-mine cobalt production plan of 30,000 tonnes per annum. Execution of the Cobalt Projects at KCC is expected to continue throughout 2020, with the additional thickening capacity expected to come online during Q2 2020.

Acid Plant Update
The Sulphuric Acid production (Phase 1), Sulphur Dioxide production (Phase 2) and Steam Turbine Generator (Phase 3) project at KCC (the "Acid Plant"), continues to progress. Phase 1 engineering, procurement, fabrication and delivery and civil engineering is complete, with structural, mechanical, plate work, piping and electrical and instrumentation installation progressing. Overall project progress of Phase 1 (Sulphuric Acid production) is now more than 75% complete.

Commissioning of the Acid Plant remains scheduled to continue through H1 2020, with completion of Phases 2 and 3 in H2 2020. KCC has received applicable Environmental Impact Study approvals from the Directorate for the Protection of the Mining Environment.

Qualified Person

Tahir Usmani, PEng, APEGA, Mine Technical Services Manager 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. The key assumptions that have been made in connection with the forward-looking statements include the following: that negotiations with Gécamines have progressed such that it may be possible that an agreement would be entered into that would resolve operational challenges resulting from land constraints at the KCC mine site; that the Company will complete the ramp up of full drying capacity as part of the Cobalt Projects in the time expected and realize the anticipated benefits of the Cobalt Projects; there being no significant disruptions affecting the operations of the Company whether due to legal disputes, judicial action, labour disruptions, supply disruptions, power disruptions, rollout of new equipment, damage to equipment or otherwise; permitting, development, operations, expansion and acquisitions at KCC being consistent with the Company's current expectations; the Company being able to confirm the margin and cash flow improvements identified by the comprehensive business review targeting mining efficiencies and processing improvements as well as enhancements to product quality realizations and overhead cost reductions announced on April 29, 2019 (the "Review") and then successfully implementing any such improvements; continued recognition of the Company's mining concessions and other assets, rights, titles and interests in the DRC; the continued effectiveness of interim solutions for uranium identified in cobalt or the completion of the ion exchange plant in the time contemplated, at the expected cost of construction; political and legal developments in the DRC being consistent with its current expectations; the continued provision or procurement of additional funding from Glencore for operations; new equipment performing consistent with expectations; the exchange rate between the US dollar, South African rand, British pounds, Canadian dollar, Swiss franc, Congolese franc and Euro being approximately consistent with current levels; certain price assumptions for copper and cobalt; prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; production, operating expenses and cost of sales forecasts for the Company meeting expectations; the accuracy of the current ore reserve and mineral resource estimates of the Company (including but not limited to ore tonnage and ore grade estimates); and labour and material costs increasing on a basis consistent with the Company's current expectations.

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.



Contact
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