K92 Mining Responds to South Pacific Metals Corp. / Kainantu Resources Limited Claims Regarding Their Exploration Licence 2558

Vancouver, British Columbia--(Newsfile Corp. - September 18, 2025) - K92 Mining Inc. (TSX: KNT) (OTCQX: KNTNF) ("K92" or the "Company") responds to recent legal correspondence and press releases from South Pacific Metals Corp. ("SPMC") and its subsidiary, Kainantu Resources Limited ("KRL") regarding Exploration Licence 2558 ("EL2558") in Papua New Guinea. SPMC initiated proceedings in the National Court of Papua New Guinea against both K92 Mining and the Mineral Resources Authority ("MRA") seeking confirmation that KRL is the exclusive holder of EL2558 and that it alone holds surface and subsurface mineral exploration rights within the licence boundaries. An interim injunction has been in place since August 15, 2025.

K92 categorically rejects all allegations made by SPMC and KRL against K92 in connection with such proceedings.

Activities Compliant with Papua New Guinea Law

All activities conducted by K92 within EL2558 have been fully compliant with Papua New Guinea's Mining Act 1992 ("Mining Act") and associated legislation. K92's activities have consisted of collecting water samples for baseline environmental monitoring, as recommended by the Conservation and Environment Protection Authority (CEPA). These activities were carried out with proper landowner access and are permitted under the Mining Act.

Furthermore, an Exploration Licence grants subsurface mineral rights, not ownership of the surface. Surface rights remain vested with the custodial landowners. The Mining Act explicitly permits the granting of a Lease for Mining Purposes ("LMP") for surface infrastructure development, including over land subject to a third-party Exploration Licence, provided sterilization drilling is completed. K92 has not submitted an application for an LMP on EL2558 but has confirmed with the MRA (Regulator) that such applications are permissible under the current legislation.

Significantly Larger TSF Site Selected Well Within K92's Own Exploration Licences

K92 has formally notified the Board of Directors of SPMC that one of the multiple alternate site options for the Tailings Storage Facility ("TSF") has been selected, in part due to a higher capacity potential. This option, like the majority of other options, is totally within K92's existing exploration licences. K92 has no interest in purchasing EL2558, or any other SPMC license as they are of no strategic or commercial interest. Therefore, despite being fully entitled under PNG law to do so, it no longer intends to apply for a LMP within the boundaries of EL2558. The determination in trial as to whether SPMC has exclusive right to an LMP over EL2558 has no practical implication on K92's short, medium or long-term operations or growth strategies.