Mr. John Lewins reports

K92 MINING ANNOUNCES Q3 PRODUCTION RESULTS WITH MULTIPLE MILL THROUGHPUT RECORDS AND FIRST ORE MINED FROM THE TWIN INCLINE AREA 2 MONTHS EARLIER THAN EXPECTED

K92 Mining Inc. has released production results for the third quarter (Q3) of 2023 at its Kainantu gold mine in Papua New Guinea, of 26,225 ounces (oz) AuEq (gold equivalent), or 22,227 oz gold (Au), 1,784,009 pounds (lb) copper (Cu) and 40,233 oz silver (Ag). Sales during the quarter were 18,339 oz gold, 1,255,291 lb copper and 30,484 oz silver.

Production for the quarter was impacted from the safety incident on June 28 (see June 28, 2023, press release and July 6, 2023, press release), which resulted in the suspension of underground mining for nine days, delaying high-grade stoping tonnes that were originally sequenced to be mined in September, to Q4, and scheduled maintenance of the process plant for 4.5 days in mid-July. Fourth-quarter production is expected to be the strongest for the year, driven by a higher-grade stoping and ore development mining sequence.

K92 is pleased to announce that in the second half of September, the first ore tonnes were mined from the twin incline, approximately two months earlier than expected, after thick Judd mineralization was encountered while developing the first waste pass access drive, in an area sparsely drilled and previously interpreted to be waste. Two ore drives advanced approximately seven metres to the south and north, with multiple high-grade faces from channel samples recorded, including: Southern Drive -- 4.6 m at 14.89 grams per tonne (g/t) AuEq (7.16 g/t Au, 161 g/t Ag and 3.56 per cent Cu) and 6.8 m at 11.77 g/t AuEq (6.53 g/t Au, 2.35 per cent Cu and 117 g/t Ag); and Northern Drive -- 4.3 m at 7.19 g/t AuEq (2.77 g/t Au, 2.25 per cent Cu and 64 g/t Ag). A diamond drill rig is planned to commence drilling shortly in this area to assess its potential and to determine which Judd vein the drive corresponds to (that is, J1, J2 or potentially a splay of the J1 vein). Mining of Kora via the twin incline is expected to commence in December, and as this second mining front is developed, the company anticipates a strong boost to mine flexibility and productivity, leveraging the large and highly efficient twin incline infrastructure.

During the quarter, the process plant set multiple daily processing throughput records, including a new monthly record in September of 1,542 tpd (tonnes per day) and a new daily record on Sept. 28, of 1,867 tonnes processed, representing rates that are 13 per cent and 36 per cent above the stage 2A expansion annual average run-rate of 1,370 tpd, respectively. Subsequent to quarter-end, new daily records of 1,902, 1,921 and 2,027 tonnes processed were achieved on Oct. 6, Oct. 8 and Oct. 10, respectively, highlighting the significant throughput potential of the stage 2A process plant. Quarterly ore processed was 121,201 tonnes, or an average of 1,317 tpd, which is the second highest on record, even with the 4.5 days of shutdown due to scheduled mill maintenance in mid-July.

Following the commissioning of the stage 2A plant expansion in May, the process plant has continued to record a significant increase in metallurgical recoveries for gold and copper. Recoveries for Q3 averaged 92 per cent for gold and 93 per cent for copper, significantly higher than the 2022 average of 90.4 per cent for gold and 90.5 per cent for copper. In the month of September, a new recovery record of 93.7 per cent for copper was achieved. Optimization efforts are continuing, including to increase throughput that the company believes has the potential to be materially greater than its nameplate design, as shown in the paragraph above.

In the third quarter, the mine delivered yet another material movement record despite operations being impacted in July due to the safety incident, with 124,236 tonnes of ore mined and 305,506 tonnes of total material mined (ore plus waste). During the quarter, 11 levels were mined, and the mill head grade averaged 7.32 g/t AuEq, or 6.20 g/t gold, 0.72 per cent copper and 12.84 g/t silver; head grade was impacted by significantly more than budgeted processing of lower-grade stockpiles following the safety incident on June 28, that suspended mining operations for nine days. Mining on Kora was conducted on the 1110, 1130, 1150, 1170, 1185, 1265, 1285, 1305 and 1325 levels, and Judd on the 840, 1225, 1285, 1305 and 1325 levels.

Overall mine development totalled 2,227 metres, an increase of 18 per cent from Q3 2022, and significant advancement of the twin incline in Q3, with incline No. 2 (six m by 6.5 m) advanced to 2,639 metres and No. 3 (five m by 5.5 m) advanced to 2,660 metres as of Sept. 30, 2023. The twin incline is over 90 per cent complete.

Operational guidance

As a result of the unexpectedly challenging first quarter and the impacts of the safety incident on June 28, 2023, the company is updating its production guidance to 111,000 oz to 116,000 oz AuEq (originally 120,000 oz to 140,000 oz). Cash cost and all-in sustaining cost guidance remains unchanged at $620 to $680 per ounce gold and all-in sustaining costs at $1,180 to $1,300 per ounce gold. Exploration, driven by the very promising results to date from the company's vein and porphyry drill programs, has been increased to $20-million (originally $13-million to $16-million).

Looking ahead, K92 sees multiple positive near-term outcomes, including:

1. Strong production forecasted for Q4, expected to be the strongest of the year, driven by the mining sequence delivering higher grades.
2. Demonstrated additional process plant throughput capacity following the stage 2A expansion, with September monthly throughput exceeding the annual run-rate average throughput of 1,370 tpd by 13 per cent, and multiple daily records set in late September and early October of between 1,867 tonnes and 2,027 tonnes processed.
3. Transformation of underground mine productivity under way, driven by significant investment in mine infrastructure, including:
   1. Twin incline (more than 90 per cent complete -- completion targeting year-end 2023).
   2. Ore and waste pass system connecting the main mine with the twin incline (targeting completion Q3 2024).
   3. Puma vent incline (targeting completion mid-2024).
   4. Interim vent fan upgrade to increase main mine flowrates by 30 per cent (targeting completion year-end 2023).
   5. Stage 3 internal vent rise upgrade (targeting completion mid-2024).
4. Significant boost to mine flexibility and production potential through tripling the number of mining fronts in 2024 (from one currently at Kora and Judd in the main mine area), with the twin incline mining front, supported by large and highly productive infrastructure beginning to come on-line in Q4 2023, followed by mining between the twin incline and main mine area in 2024. These mining fronts will be supported by significantly upgraded infrastructure as noted above.
5. Significant focus on resource growth and expansion from vein field and porphyry exploration, including an expanded exploration program in 2023 (increased to $20-million from $13-million to $16-million).

John Lewins, chief executive officer and director of K92, stated: "Having just completed a site visit at the Kainantu gold mine a few days ago, there is a tremendous amount of enthusiasm within the company for the near, medium and long term, while certainly taking on board lessons learned from the first nine months of 2023 to make the operation stronger going forward.

"On production, we expect the fourth quarter to be the strongest of the year, benefiting from a higher-grade stoping sequence. Going forward, a major positive is the significant demonstrated available capacity of the process plant, which continues to exceed expectations and has provided the company with considerable optionality. In September, the mill set a new monthly throughput record 13 per cent greater than the 1,370 tpd annual average throughput (500,000 tpa), and recently the mill delivered a flurry of new daily records, including 2,027 tonnes processed on Oct. 10.

"Progressively over the next 12 months, the infrastructure upgrades made to the underground mine are expected to be transformational, providing a significant boost to mine flexibility and productivity, which in conjunction with a tripling of mining fronts in 2024, is projected to materially boost the production capacity of the underground mine. The stage 3 expansion surface infrastructure upgrades, including the new stand-alone 1.2 Mtpa [million tonnes per annum] process plant, in conjunction with the underground infrastructure upgrades, over the next 18 months, are expected to fundamentally transform the business into a high-grade, low-cost Tier 1 producer, as outlined in the integrated development plan (IDP, see Sept. 12, 2022, press release). Importantly, the growth capital, as outlined in the IDP, is fully funded after announcing the $100-million senior secured loan (see Sept. 26, 2023, press release).

"Given K92's strong liquidity position for the stage 3 and 4 expansions, and the positive reported exploration results to date, we are pleased to be increasing our exploration expenditures for 2023 to $20-million from $13-million to $16-million originally planned. Exploration is significantly progressing at both our vein and porphyry targets, and in addition to progressing our existing programs, we expect to expand the number of high-priority targets drilled concurrently in the near term."

Face sampling methodology, quality assurance/quality control and qualified person

Face channel samples, under geological control, were taken across the full face of both the exposed lode system and any waste rock, with sample intervals ranging from 0.1 m to one m in width, depending on the geologist's interpretation. Two samples were taken per interval at waist and knee height, and the corresponding widths recorded. Sample lengths are less than 1.5 m, with samples approximately 3.5 kilograms (kg) in size. Samples were separately assayed for gold, copper and silver, and the results averaged out using length-weighting and channel orientation before entry into the database. K92's procedure includes the insertion standards, blanks and duplicates for the face sampling. Gold assays are by the fire assay method. Copper and silver assays are by three-acid digestion method (nitric, perchloric and hydrochloric mix).

K92 maintains an industry-standard analytical quality assurance/quality control (QA/QC) and data verification program to monitor laboratory performance and ensure high-quality assays. Results from this program confirm reliability of the assay results. All sampling and analytical work for the mine exploration program is performed by Intertek Testing Services (PNG) Ltd., an independent accredited laboratory that is located on site. External check assays for QA/QC purposes are performed at SGS Australia Pty. Ltd. in Cairns, Queensland, Australia.

The analytical QA/QC program is currently overseen by Andrew Kohler, PGeo, mine geology manager and mine exploration manager for K92. Mr. Kohler, a qualified person under the meaning of Canadian National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has reviewed and is responsible for the technical content of this news release.

About K92 Mining Inc.

K92 Mining is engaged in the production of gold, copper and silver at the Kainantu gold mine in the Eastern Highlands province of 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 is in a strong financial position. A maiden resource estimate on the Blue Lake porphyry project was completed in August, 2022. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.

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