K92 MINING INC. REPORTS STRONG FOURTH QUARTER AND FULL-YEAR 2019 RESULTS AND RECORD ANNUAL PRODUCTION AND COSTS - Seite 2

John Lewins, K92 Chief Executive Officer and Director, stated, “The Fourth Quarter saw K92 achieve multiple records including production, costs and revenue. This strong performance resulted in exceeding our upgraded annual guidance by 2,256 oz gold equivalent production and significantly beating all-in sustaining costs with costs of US$680 per ounce gold versus the upgraded guidance of US$720-US$760 per ounce gold.

The strong performance through 2019 has also resulted in a significant strengthening of K92’s financial position. As at December 31, 2019, the Company held just under US$22 million in cash, with the only material debt being a US$13.3 million secured facility with Trafigura. Additionally, the vast majority of our US$15 million Stage 2 expansion capital has already been spent.”

MINE OPERATING ACTIVITIES

	Three months ended December 31, 2019	Twelve months ended December 31, 2019
Operating data
Head grade (Au g/t)	25.2	20.8
Gold Recovery (%)	93.9%	93.7%
Gold ounces produced	23,096	79,838
Gold ounces equivalent produced (1)	23,646	82,256
Tonnes of copper produced	98	432
Silver ounces produced	5,243	22,984
Financial data (in thousands of dollars)
Gold ounces sold	22,754	75,647
Revenues from concentrate sales	US$33,416	US$101,693
Mine operating expenses	US$10,969	US$39,153
Depreciation and depletion	US$2,976	US$8,862
Statistics (in dollars)
Average realized selling price per ounce, net	US$1,469	US$1,344
Cash cost per ounce	US$461	US$494
All-in sustaining cost per ounce	US$658	US$680