Mr. John Lewins reports

K92 MINING ANNOUNCES YEAR-END FINANCIAL RESULTS

K92 Mining Inc. has released its annual financial statements for the year ended Dec. 31, 2018.

• For the year ended Dec. 31, 2018, K92 produced 45,810 gold ounces, or 47,237 gold equivalent oz, at a cost of $594 per gold oz or $601/AuEq oz and an all-in sustaining cost of $795/gold oz or $796/AuEq oz.
• For the quarter ended Dec. 31, 2018, K92 produced 16,451 gold oz, or 16,844 AuEq oz, at a cost of $572/gold oz or $579/AuEq oz and an AISC of $718/gold oz or $722/AuEq oz.
• Revenue less cost of sales for the year ended Dec. 31, 2018, was $23,401,518 (U.S.).

For complete details of the annual consolidated financial statements and associated management's discussion and analysis, please refer to the company's filings on SEDAR. All amounts are in U.S. dollars unless otherwise indicated.

Other highlights

• Generated cash flow from mining operations of $18.1-million;
• Improved balance sheet with an increase in cash to $6.2-million and working capital of $4-million;
• No lost time injuries recorded in the year ended Dec. 31, 2018.

John Lewins, K92 chief executive officer and director, stated: "The fourth quarter of 2018 saw production from the Kora North deposit of 16,844 oz AuEq, a record-setting quarter (that has since been surpassed in Q1 2019). We achieved our annual all-in sustaining cost and beat our annual production guidance for 2018 resulting in strong cash flow for the year. In looking ahead to 2019, we expect to have a strong year in which we are forecasting production to be between 68,000 and 75,000 ounces of gold."

Review of financial results

Net income

The company's net income for the year ended Dec. 31, 2018, totalled $39,056,954, which includes a deferred income tax recovery of $26,470,433, or income per share of 20 cents, compared with a net loss of $12,069,037 or a loss per share of eight cents for the year ended Dec. 31, 2017.

K92 has not based its production decisions on mineral reserve estimates or feasibility studies, and historically such projects have increased uncertainty and risk of failure. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

                       MINE OPERATING ACTIVITIES                            
                                                                                 
                                      Three months ended     Year ended       
                                           Dec. 31, 2018  Dec. 31, 2018

Operating data  
                                                                 
Head grade (Au g/t)                                21.77          19.13            
Gold recovery (%)                                 94.76%         93.68%           
Gold ounces produced                              16,451         45,810           
Gold ounces equivalent produced (1)               16,844         47,237           
Pounds of copper produced                        170,800        611,000          
Silver ounces produced                             3,095         10,069           
                                                                                 
Financial data (in thousands of dollars)  
                                       
Revenue                                          $21,510        $53,161          
Mine operating expenses                        ($11,279)      ($29,759)        
Depreciation and depletion                      ($2,449)       ($4,070)         
                                                                                 
Statistics (in dollars)   
                                                       
Average realized selling price (per ounce)        $1,177         $1,197           
Cash cost (per AuEq) (1)                            $579           $601             
All-in sustaining cost (per AuEq) (1)               $722           $796             
                                                                                 


Note
 
(1) The company provides some non-international financial reporting standard 
measures as supplementary information that management believes may be useful to 
investors to explain the company's financial results. Please refer to non-IFRS 
financial performance measures in the company's management's discussion and 
analysis dated April 17, 2018, available on SEDAR, for reconciliation of these 
measures.

About K92 Mining Inc.

K92 Mining is currently engaged in the production of gold, copper and silver from the Kora/Kora North deposit from the Kainantu gold mine in Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine. The company declared commercial production from Kainantu in February, 2018, and announced planned expansion of the mine in March, 2019. An updated preliminary economic assessment on the property was published in January, 2019.

We seek Safe Harbor.