Mr. John Lewins reports

K92 ANNOUNCES INCREASED RESOURCE FOR KORA NORTH

An updated resource estimate has been completed at K92 Mining Inc.'s Kora North deposit, based on results from underground grade control, exploration diamond drilling and face sampling. The updated resource estimate comprises a measured resource of 154,000 tonnes at 18.7 grams per tonne gold, 8.9 g/t silver and 0.5 per cent copper; an indicated resource of 690,000 tonnes at 11.6 g/t Au, 14.1 g/t Ag and 0.8 per cent Cu; and an inferred resource of 1.92 million tonnes at 10.7 g/t Au, 13.3 g/t Ag and 0.7 per cent Cu. This represents an increase of over 20 per cent in the contained gold equivalent ounces for the measured and indicated resource and almost 30 per cent for the inferred resource. See the attached table.

This updated resource estimate is based on results from 80 diamond drill holes drilled from diamond drill cuddies 1, 2, 3 and 4 (DDC1, DDC2, DDC3 and DDC4) and over 1,300 face samples taken from horizontal development and from cut and fill faces along the K1 and K2 lodes. The resource estimate covers an area of approximately 400 to 500 metres along strike by 200 to 350 metres vertically (see K1 and K2 long sections below), representing approximately 15 per cent of the target area of 1,000 metres along strike by up to 1,000 metres vertically which the company plans to drill from underground over the coming 12 months.

The updated resource estimate has been defined after just 12 months of underground exploration drilling and represents, at the design production levels of 50,000 to 70,000 ounces per annum, almost 17 years of production.

               KORA NORTH MINERAL RESOURCE
 
Global mineral resources Kora North gold-copper mine October, 2018

                Tonnes          Gold     Silver   Copper       AuEq      
Category            Mt     g/t   Moz   g/t  Moz   %  Mlb   g/t  Moz

Measured          0.15    18.7  0.09   8.9 0.04 0.5  1.6  19.6 0.09 
Indicated         0.69    11.6  0.26  14.1 0.31 0.8 11.8  12.9 0.29 
Total M & I       0.85    12.9  0.35  13.1 0.36 0.7 13.3  14.1 0.39 
Inferred total    1.92    10.7  0.66  13.3 0.82 0.7 29.5  11.9 0.74 

Mineral resources estimate prepared and verified by Simon Tear (PGeo),
consultant to the company and a director of independent consultancy 
H & S Consultants Pty. Ltd., Sydney, Australia (October, 2018).

Key assumptions and parameters

Mineralization comprises two parallel, steeply west dipping, north-south-striking quartz-sulphide vein systems, K1 and K2, within an encompassing dilatant structural zone hosted by phyllite. An additional structure, the Kora link, has also been defined and provides a possible link between the two main vein systems.

Underground drilling consists of diamond core for a range of core sizes depending on length of hole and expected ground conditions. Sampling is sawn half core under geological control and generally ranges between 0.5 metre and one m. Underground face sampling is completed for every fired round and is to industry standard.

Quality assurance/quality control data indicated no significant issues with the accuracy of the on-site analysis.

Core recovery of the mineral zone was initially 90 per cent, this has improved to over 95 per cent. There is no relationship between core recovery and gold grade.

Geological logging is consistent and is based on a full set of logging codes covering lithology, alteration and mineralization.

The geological interpretation of the vein systems is represented as 3-D wireframe solids snapped to a combination of diamond drill hole data and underground face sampling. Definition of the wireframes is based on identified gold mineralization in drill core nominally at a 0.2 g/t Au cut-off in conjunction with geological control/sense and current mining widths.

Gold equivalent (AuEq) g/t was calculated using the formula Au g/t plus (Cu per cent multiplied by 1.53) plus Ag g/t multiplied by 0.0127. (No account of metal recoveries through the plant has been used in calculating the metal equivalent grade. However, production is currently achieving 93-per-cent metal recovery for both gold and copper and gold is currently providing 95 per cent and copper 5 per cent of the total revenue of the mine.)

The gold price is $1,300 (U.S.)/oz; silver is $16.50 (U.S.)/oz; and copper is $2.90 (U.S.) per pound.

The wireframes were used to extract a total of 2,159 one-metre composites from the drill hole and sampling database for gold, copper and silver. No gold top cuts were applied to composites for the two main vein systems; the Kora Link had a top cut of 200 parts per million Au. Silver top cuts of 50 and 200 ppm were applied to the K1 and K2 composite data. No top cut was applied to the copper composites. Co-efficients of variation for the gold composite data were relatively low for this mineral type, around the two to 2.5 mark. Variography indicated modest strike continuity with a tendency for greater grade continuity in the dip direction, downhole grade continuity was poor as would be expected for this type of mineralization.

Grade interpolation of the composite data was completed using ordinary kriging with a block size of one m by five m by five m to reflect the close-spaced drilling for K1 and the face sampling. A larger block size check model indicated no evidence of oversmoothing of gold grade with the smaller block size.

Default average density values have been applied to the different lodes. The defaults are based on limited core measurements using the Archimedes Method (weight in air/weight in water).

An initial three-pass search strategy was applied in the grade interpolation with two additional passes. Search ellipse parameters are listed in the table. Search ellipse orientations generally reflected the subtle changes in dip and strike of the vein systems. Two search domains were used for K1, four search domains were used for K2 and one for the Kora Link.

Pass No.    X radius (m)  Y radius (m)  Z radius (m)     Min data   Min octants      Max data

1                     2            25            25            12             4            32
2                     4            50            50            12             4            32
3                     4            75            75            12             4            32
4                  5.25           100           100            12             4            32
5                  5.25           100           100             6             2            32

Allocation of the classification of the mineral resources is derived from the search pass numbers which essentially is a function of the drill hole and face sample data point distribution. Additional considerations were included in the assessment of the classification; in particular, the geological understanding and complexity of the deposit, sample recovery, quality of the quality assurance/quality control sampling and outcomes, density data, and reconciliation with production.

Pass category Resource classification

1                            Measured               
2                           Indicated              
3                            Inferred               
4                            Inferred               
5                            Inferred               

All material mined within the mineral wireframes up to the effective date (as of the end of September, 2018) has been removed from the model. Gold reconciliation of the resource model with production up to the effective date has been good with the mill production in terms of recovered ounces being less than 10 per cent above that estimated by the model.

The inferred mineral resources in this estimate have a lower level of confidence than that applied to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that the majority of the inferred mineral resource could be upgraded to an indicated mineral resource with continued exploration.

The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.

Mineral resources which are not mineral reserves do not have demonstrated economic viability.

John Lewins, K92 chief executive officer and director, states: "In just 12 months of underground drilling, K92 has gone from commencing a resource definition program to defining a measured and indicated resource at Kora North of 850,000 tonnes at 14.1 g/t AuEq containing 390,000 AuEq oz and an inferred resource of 1.92 million tonnes at 11.9 g/t AuEq containing 740,000 AuEq oz. This resource covers under 15 per cent of the total area of 1,000 metres by 1,000 metres that we plan to drill out from underground over the next 12 months. The measured and indicated resources alone represents almost six years of production at current design levels of 50[,000] to 70,000 oz AuEq. This has been achieved while at the same time establishing a new mining operation on the Kora deposit which is on track to produce 45,000 oz AuEq for 2018 at a cash cost of less than $600 (U.S.) per oz AuEq and an AISC of less than $800 (U.S.) per ounce."

This new resource estimate is currently being used to update the existing preliminary economic assessment (PEA) which K92 has filed and made available for download on the company's SEDAR profile. It is anticipated that the new PEA will be completed in approximately one month.

The updated mineral resource estimate supersedes the PEA and the PEA can no longer be considered current.

The technical report titled, "Independent Technical Report, Mineral Resource Update and Preliminary Economic Assessment of Irumafimpa and Kora Gold Deposits, Kainantu Project, Papua New Guinea," with an effective date of March 2, 2017, provides additional information on the geology of the deposits, drilling and sampling procedures, lab analysis, and quality assurance/quality control for the project, and additional details on the resource estimates.

The existing PEA estimates for Kora, based on the resource estimate filed on March 2, 2017 (4.36 million tonnes of 7.3 g/t Au, 35 g/t Ag and 2.23 per cent Cu), therefore excluding Kora North:

• Over a nine-year operating life, the plant would treat 3.2 million tonnes averaging 7.1 g/t Au, 25 g/t Ag and 1.7 per cent Cu (9.3 g/t AuEq (1));
• This would generate an estimated positive cash flow of $537-million (U.S.) using current metal prices if 15-metre levels are used in mining; if 25-metre levels are used, then net cash flows are estimated as $558-million (U.S.); this cash flow includes conceptual allowances for capital;
• Production of an estimated average of 108,000 AuEq (1) ounces per annum over an eight-year period from year two through to year nine;
• An estimated pretax net present value (NPV) of $415-million (U.S.) for 25-metre levels, or $397-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and a 5-per-cent discount;
• An estimated after-tax net present value of $329-million (U.S.) for 25-metre levels, or $316-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and a 5-per-cent discount;
• Initial capital cost is estimated to be $13.8-million (U.S.), including the $3.3-million (U.S.) for the plant upgrade identified in the Mincore scoping study, but excluding the proposed Kora exploration inclines and diamond drilling; sustaining capital cost is estimated to a further $64-million (U.S.) spent over the life of the Kora mining for 25-metre levels, or $83-million (U.S.) for 15-metre levels;
• Operating cost per tonne is estimated to be $125 (U.S.) per tonne for 25-metre levels, or $126 (U.S.) per tonne for 15-metre mining levels;
• Excluding initial capital expenditure of $14-million (U.S.), cash cost is estimated to be $547 (U.S.) per ounce AuEq (inclusive of a 2.5-per-cent net smelter return (NSR) royalty), and all-in sustaining cost (AISC) of $619 (U.S.) per ounce AuEq for 25-metre mining levels, or $549 (U.S.) per ounce (inclusive of a 2.5-per-cent NSR royalty) and AISC of $644 (U.S.) per ounce AuEq for 15-metre mining levels.

(1) Gold equivalent calculated on metal prices.

Metal prices used were $1,300 per ounce for gold, $18 per ounce for silver and $4,800 per tonne for copper.

Kora remains open for expansion in every direction and strongly mineralized at the extent of all drilling.

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. The technical report contains a full description of all underlying assumptions relating to the PEA. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The resource estimate used within this PEA has not incorporated the updated mineral resource estimate. The results and conclusions of any updated PEA incorporating the revised mineral resource, if completed, will be materially different than those previously disclosed.

                      IRUMAFIMPA AND KORA/EUTOMPI RESOURCES                       
                         Resource by deposit and category                            

                  Resource     
Deposit           category     Tonnes     Gold     Gold   Silver   Silver   Copper   Copper   Gold equivalent
                                   Mt      g/t      Moz      g/t      Moz        %      Mlb      g/t      Moz

Irumafimpa       Indicated       0.56     12.8     0.23        9     0.16     0.28       37     13.4     0.24
                  Inferred       0.53     10.9     0.19        9     0.16     0.27       74     11.5     0.20
Kora/Eutompi      Inferred       4.36      7.3     1.02       35      4.9     2.23      215     11.2     1.57
Total indicated                  0.56     12.8     0.23        9     0.16      0.3        4     13.4     0.24
Total inferred                   4.89      7.7     1.21       32     5.06      2.0      218     11.2     1.76

M in table is millions. Reported tonnage and grade figures are rounded from raw estimates to reflect the order 
of accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Gold 
equivalents are calculated as AuEq being equal to Au g/t plus Cu per cent multiplied by 1.52 plus Ag g/t
multiplied by 0.0141.

K92's mine geology manager and mine exploration manager, Andrew Kohler, PGeo, 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. Data verification by Mr. Kohler includes significant time on site reviewing drill core, face sampling, underground workings, and discussing work programs and results with geology and mining personnel.

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