K92 Mining Provides 2020 Operational Outlook

• Production in 2020 is expected to grow 34-46% year over year, with Gold Equivalent (“AuEq”) production of between 110,000 and 120,000 ounces.
  
  
• Second half of 2020 is projected to deliver the strongest production and lowest costs, with the Kainantu Stage 2 Expansion targeting run-rate throughput by end of 2020.
  
  
• High margin production forecasted in 2020, with Cash Costs between $520-580 per ounce gold and all-in sustaining costs between $720-$780 per ounce gold.
  
  
• Exploration to increase significantly with $8-10 million projected in 2020. Two additional surface drill rigs and one underground rig was ordered and is expected arrive in Q2 2020.
  
  
• Growth capital costs forecasted to be between $20-$25 million, which includes completion of the Kainantu Stage 2 Expansion and the twin incline development designed for up to 2 million tonnes per annum throughput.

Note: All amounts in United States Dollars unless otherwise indicated.

VANCOUVER, British Columbia, Jan. 28, 2020 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSX-V: KNT; OTCQX: KNTNF) is pleased to provide its operational outlook for 2020. The Company expects another significant, year over year, increase in gold equivalent production of 34-46% while also delivering low-cost production. The strongest production and lowest costs are expected in the second half of 2020 as the Stage 2 Expansion ramp-up to run-rate throughput is forecasted to be achieved by the end of 2020.

Exploration activities are also forecasted to increase, with two new surface drill rigs and one new underground drill rig targeting delivery in Q2 2020. The drill rigs are planned for both near-mine and regional exploration, including expanding exploration activities to drill new targets. Between $8-10 million has been budgeted for exploration, which is included as part of the operating costs, sustaining capital and growth expenditures.

Growth capital is forecasted to be between $20-25 million, which includes completing the Stage 2 Expansion and twin incline development. The twin incline is designed for a throughput capacity of up to 2 million tonnes per annum. K92 has recently commenced early earthworks on the twin incline (see January 21, 2020 Press Release: K92 Ming Inc. Provides Operations and Stage 2 Expansion Update).