K92 Mining Reports Higher Grades From Judd Underground Development and Positive Grade Reconciliations & Recoveries From Processing of Judd Bulk Sample - Seite 2

The development drive has been designed as a return airway (“RAD”) and as such has been developed with dimensions of 5.5 m x 5.5 m, significantly larger than an ore drive would be developed. Incorporating the resulting excess planned dilution of over 50%, the extension mined an estimated 10,020 tonnes at 9.03 g/t AuEq or 8.06 g/t Au, 0.55% Cu and 9 g/t Ag. Overall, the 223 metres of development has recorded continuous vein mineralization along strike and the undiluted J1 Vein average estimated vein grade is 9.65 g/t AuEq or 8.02 g/t Au, 0.95% Cu and 19 g/t Ag.

The bulk sample delivered a significant positive grade reconciliation, returning a head grade of 6.50 g/t gold equivalent or 5.19 g/t gold, 0.82% copper and 10.9 g/t silver, compared to the projected average bulk sample diluted grade of 5.57 g/t gold equivalent or 4.4 g/t gold, 0.7% copper and 10.6 g/t silver from underground development channel sampling. The treatment of the bulk sample via flotation also delivered good recoveries of 88.8% for gold, 97.5% for copper and 88.2% for silver, similar to recoveries at Kora. As the bulk sample was processed after the recently commissioned Stage 2 Plant Expansion, the Company sees potential for improvement in recoveries through operational and flowsheet optimizations. Given the similar results achieved in processing the Judd bulk sample, it is now being blended with Kora material to optimize plant feed grades and characteristics.

A total of 229 tonnes of flotation concentrate grading 86 g/t Au, 14.8% Cu and 178 g/t Ag was produced. The concentrate meets specifications for K92’s existing offtake agreement with no significant deleterious / penalty elements. It is, however, intended to blend the Judd material with Kora for treatment through the process plant, so a separate Judd concentrate will not be produced.

The Judd bulk sample development was originally intended as a ventilation infrastructure drive and therefore was developed with large 5.5 m x 5.5 m underground development dimensions. The drive dimensions are considerably greater than what would have been utilized for production stoping, implying the potential for grade improvement by reducing drive dimensions and therefore mitigating planned external dilution. The bulk sample represents a discrete portion of the Judd 1235 Level development and does not include the high grade material reported in the most recent face sampling that was mined after the processing of the bulk sample.