Mr. Robert Wardell reports

KATANGA MINING PROVIDES UPDATE ON INDEPENDENT DIRECTORS' REVIEW AND RESTATEMENT OF CERTAIN FINANCIAL STATEMENTS

Katanga Mining Ltd. has provided an update on the previously announced review of certain of the company's past accounting by the independent directors of the company's board of directors, being Robert G. Wardell, Terry Robinson and Hugh Stoyell.

As previously announced, the independent directors are working with management, Katanga's external auditor, Deloitte & Touche, the company's outside legal counsel, and outside accounting advisers to review historical accounting relating to the production of copper cathode, copper concentrates and stockpiled ore. In particular, the review concerns certain historical entries relating to the incorrect recording of the total tonnage of finished copper cathodes produced during the years ended Dec. 31, 2015, and 2014, and certain other entries which deal with the valuation of copper oxide concentrates included in work-in-progress inventories, the valuation of ore in stockpile inventories, and the recorded amounts of property, plant and equipment.

While the review is still continuing, based on the results of the review to date, the independent directors have concluded that the company's consolidated financial statements for the years ended Dec. 31, 2016, 2015 and 2014 and related management's discussion and analysis (MD&A) and all interim consolidated financial statements and interim MD&A since Dec. 31, 2014, should not be relied upon. Accordingly, the independent directors have recommended to the board of directors that the company's audited consolidated financial statements for the years ended Dec. 31, 2016, and 2015 and its unaudited interim consolidated financial statements for the three months ended March 31, 2017, and 2016, and all related MD&A should be restated. The company currently expects to effect such refilings, in conjunction with its external auditor, by mid-September, 2017.

Based on the results of the review to date, the company's restated consolidated balance sheets as at Dec. 31, 2016, and 2015 are expected to both reflect a reduction in property, plant and equipment (previously reported as $2,404-million as at Dec. 31, 2016) of approximately $130-million, an increase in non-current inventories (previously reported as $365-million as at Dec. 31, 2016) of approximately $55-million, with a corresponding reduction in total equity (previously reported as $528-million as at Dec. 31, 2016) of approximately $75-million less related income taxes of approximately $19-million.

The company also expects that total equity as at Jan. 1, 2015 (previously reported as $1,810-million), will be reduced by approximately $90-million ($130-million less related income taxes of $40-million) and the net loss previously reported for the year ended Dec. 31, 2015, of $630-million will be reduced by approximately $55-million less related income taxes of approximately $21-million.

To date, no adjustments to the previously reported loss for the year ended Dec. 31, 2016, have been identified.

Katanga wishes to emphasize that the review and restatement do not affect the anticipated timing for the commissioning of its whole-ore leach project, previously disclosed cash and debt balances, 2017 production guidance, or limited continuing operations during the suspension of copper and cobalt processing that commenced in Q3 2015. The review is still continuing, and the amounts included in this press release are subject to change.

The review and the resulting restatement will cause the preparation and filing of the company's unaudited interim consolidated financial statements for the three and six months ended June 30, 2017, and 2016, and accompanying MD&A to be delayed beyond the Aug. 14, 2017, deadline under National Instrument 51-102 -- continuous disclosure requirements.

As previously announced, the company has informed staff of the Ontario Securities Commission about its review and has applied to the OSC pursuant to Part 4 of National Policy 12-203 for a management cease trade order (MCTO) pending the filing of the Q2 filings and the restatement of the company's historical financial statements. If an MCTO is issued, the company intends to satisfy the provisions of the alternative information guidelines as set out in NP 12-203, including the requirement to file biweekly status reports in the form of news releases containing prescribed updating information, until the Q2 filings are made. An MCTO would not generally affect the ability of persons who are not directors, officers or insiders of the company to trade in securities of the company. There can be no assurance that an MCTO will be issued.

In light of the proposed MCTO and in conjunction with the preparation of the Q2 filings, the company has established a blackout on trading by directors, officers and certain other insiders of Katanga, and intends to continue the blackout until the Q2 filings and the restated consolidated financial statements have been filed.

Unless circumstances otherwise require, Katanga will provide further comment only when the review and restatement are completed.

About Katanga Mining Ltd.

Katanga operates a major mine complex in the Democratic Republic of the Congo producing refined copper and cobalt.

We seek Safe Harbor.