K92 Mining Announces Strong Operational Guidance

• Production in 2024 is expected to be 120,000 to 140,000 ounces gold equivalent (“AuEq”). The second half of the year is expected to be the strongest, as operations progressively ramp up ahead of the new 1.2 million tonnes per annum (“mtpa”) Stage 3 Process Plant commissioning, scheduled for the end of Q1 2025.
  
• Cash costs between $820-$880 per ounce gold and all-in sustaining costs (“AISC”) of $1,440-$1,540 per ounce gold forecasted for 2024. The moderate increase from 2023 guidance for cash costs and AISC is driven by increased accelerated operating and capital development for the Stage 3 and 4 Expansions in addition to development and equipment that was planned for 2023 being completed/delivered in 2024. As outlined in the Integrated Development Plan⁽¹⁾ (“IDP”), we expect a very significant reduction in cash costs and AISC in 2025 and beyond upon commissioning of the Stage 3 Expansion.
  
• Large exploration program planned, with $17-$20 million projected for 2024. Surface exploration to focus on Arakompa, Kora South, Judd South and the A1 porphyry, with underground drilling focusing on Kora, Kora South, Kora Deeps, Judd, Judd South, Judd Deeps and Northern Deeps targets.
  
• Growth capital forecasted to be $145-$160 million in 2024 and $40-$50 million in 2025. Total growth capital for the Stage 3 and 4 Expansions (including the amount spent to date) is now forecasted at $210 million, a 12% increase from the Stage 4 PEA case of $187 million, as outlined in the IDP⁽¹⁾. The moderate increase in capital costs from the IDP is driven by global cost inflation over the past 2 years since the date of the study (IDP effective date is January 1, 2022) and minor scope changes. As at December 31, 2023, 48% of the Stage 3 and 4 Expansion growth capital has been either spent or committed, and importantly the largest package, the Stage 3 Process Plant, has been awarded on a lump-sum fixed price basis to GR Engineering Services Limited, significantly de-risking the project (see July 24, 2023 press release). The remaining major package to award is the Paste Fill Plant, with plans to award long lead contracts in the coming weeks.