An anonymous director reports

KATANGA MINING ANNOUNCES 2017 SECOND QUARTER PRODUCTION RESULTS AND DATE FOR RELEASE OF 2017 SECOND QUARTER FINANCIAL RESULTS

Katanga Mining Ltd. has released its 2017 second quarter production results and the date for the release of its 2017 second quarter financial results. Unless otherwise specified, all dollar amounts referred to in this news release are in U.S. dollars.

Highlights during the three and six months ended June 30, 2017, and outlook

                                                                           Three months ended        Six months ended  
                                                              June 30,   March 31,    June 30,    June 30,    June 30,
                                                                 2017        2017        2016        2017        2016   
Mining                                                                                                       
Waste mined                                        tonnes  12,195,990   7,547,604   1,583,434  19,743,594   2,726,106
Ore mined                                          tonnes           -           -           -           -           -
Average copper grade                                    %           -           -           -           -           -
Contained copper in ore mined                      tonnes           -           -           -           -           -
Processing                                                                                                   
Ore milled                                         tonnes     342,562     348,045           -     690,608           -
Finished copper metal and concentrate to be 
fed into WOL                                       tonnes       2,396       2,484           -       4,880           -
Finished cobalt                                    tonnes           -           -           -           -           -

Continuing suspension of production:

• On Sept. 11, 2015, the company announced the decision to suspend the processing of copper and cobalt during the construction phase of the Whole Ore Leach (WOL) project. The suspension continued through the first half of 2017, and production is not expected to resume until the WOL project is commissioned, which is expected to commence in the fourth quarter (Q4) 2017.
• Mining operations continued during 2017 and 2016 at the KOV and Mashamba East open pits with a focus on waste mining.

Mining:

• Waste mined in the first half (H1) 2017 was 17,017,488 tonnes (624.2 per cent) higher than in H1 2016, due to increased waste mining activities in 2017 in preparation for the commissioning of the WOL project, which is expected to commence in Q4 2017.
• There was no ore mined in H1 2017 and H1 2016 due to the revised waste mining plan (prestrip) in the open pits which was put in place following the suspension of copper and cobalt processing at the end of Q3 2015. The revised waste mining plan aims to secure sufficient ore availability for processing once the suspension of copper and cobalt processing ends, while minimizing costs during the suspension period.
• In H1 2017, the company commissioned six CAT 793 haul trucks at the KOV open-pit mine.

Processing:

• Reprocessing of the Kamoto interim tailings dam (KITD) material commenced in January, 2017. The concentrate produced is expected to be used to load the WOL project commissioning circuits in Q4 2017. Concentrate produced from the KITD reprocessing amounted to 33,785 tonnes in H1 2017, with a copper grade of 14.44 per cent (4,880 tonnes of contained copper).
• During H1 2017, work continued on the WOL project:
  • Significant progress continues on the structural, mechanical, platework and piping (SMPP) activities on the acid tanks, preleach, leach and CCD trains. The platework has been completed on all the phase 1 CCDs and the bridges are installed. The SCADA and control system factory acceptance testing (FAT) is expected for the last week of July, following which the servers and PLCs (programmable logic controllers) are planned to be dispatched to site for installation. The final design packages and the 3-D model were completed on June 17, 2017.
  • Related capital expenditures amounted to $69.5-million in H1 2017, which principally related to installation of the SMPP, electrical, control and instrumentation equipment.
  • Concurrent with the construction of the WOL project plant and infrastructure, the current life-of-mine plan continues to be optimized to ensure the appropriate blend will be supplied to the WOL process when complete in order to maximize copper and cobalt recovery and to minimize operating cost per unit.

Outlook

During the third quarter (Q3) of 2017:

• Open-pit mining operations are expected to continue with a focus on waste mining following the revised mine plan, which aims to secure sufficient ore availability for processing once the suspension of copper and cobalt processing ends, while minimizing costs during the suspension period.
• Backfill operations at KTO are expected to continue to ensure underground stability.
• Care and maintenance activities in the underground mine, KTC and Luilu are expected to continue.
• Work is expected to continue on construction of phase 1 of the WOL project according to the defined project plan. Commissioning of the WOL project is expected to commence in Q4 2017.
• Various initiatives relating to cost reductions, consumable inventory reductions, staff training and process improvements are expected to continue to be developed and implemented.

The company expects to release its 2017 second quarter financial results on or about Aug. 9, 2017.

This news release was prepared under the supervision of Tim Henderson, technical consultant and director of Katanga, and a qualified person as such term is defined in National Instrument 43-101. Mr. Henderson has reviewed and approved the contents of this news release.

About Katanga Mining Ltd.

Katanga Mining operates a major mine complex in the Democratic Republic of the 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.

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