K92 Mining Inc. Achieves Record Gold Equivalent Production of 26,847 Oz From Kainantu Gold Mine in Second Quarter - Seite 2

The blend of K1 and K2 material provided an average head grade to the process plant for Q2 of 17.64 g/t Au and 0.54% Cu. Gold head grades were above budget and continued to deliver a positive grade reconciliation, while copper grades were also significantly above budget.

The Kainantu mine continues to operate during the COVID-19 pandemic, with a significant focus on health and safety and risk-mitigation. On March 20, 2020 the Government of Papua New Guinea declared a COVID-19 State of Emergency (see March 23, 2020 press release - K92 Announces COVID-19 Operational Update and Response Plan) and on June 16, 2020 the Government of Papua New Guinea lifted the SOE (see June 16, 2020 press release - K92 Mining Inc. Provides Operations and Stage 2 Expansion Update After Lifting of PNG COVID-19 State of Emergency), resulting in a further easing of restrictions. After the lifting of the SOE, Kainantu has experienced a significant improvement in the movement of personnel, and our twin incline and surface exploration activities have resumed with multiple targets now being drilled concurrently. The Stage 2 plant commissioning to double throughput from 200,000 tpa to 400,000 tpa is now targeting completion by the end of Q3 2020. To date, there are no known cases of COVID-19 amongst our employees or members of the local community.

Table 1 – Q2 & H1 2020 and Q2 & 2019 Annual Production Data

		Q2 2019	2019 Total	Q1 2020	Q2 2020	H1 2020
Tonnes Processed	T	37,913	127,190	47,421	49,311	96,732
Feed Grade Au	g/t	16.7	20.8	13.6	17.64	15.7
Feed Grade Cu	%	0.34%	0.37%	0.36%	0.54%	0.45%
Recovery (%) Au	%	93.2%	93.7%	92.9%	92.1%	92.4%
Recovery (%) Cu	%	92.5%	92.8%	91.6%	91.1%	91.3%
Metal in Conc Prod Au	Oz	18,980	79,838	19,240	25,762	45,002
Metal in Conc Prod Cu	T	119	432	154	241	393
Metal in Conc Prod Ag	Oz	6,894	22,984	7,679	10,867	18,546
Gold Equivalent Production	Oz	19,652	82,256	19,943	26,847	46,790

Note - Gold equivalent for 2019 based on the following metal prices: gold $1,300 per ounce; silver $16.50 per ounce; and copper $2.90 per pound. Gold equivalent for 2020 based on the following prices: gold $1,500 per ounce; silver $17.75 per ounce; and copper $2.70 per pound.