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• First two holes from K92’s maiden drill program at the Arakompa project (“Arakompa”), located ~4.5 km from the Kainantu process plant, recorded significant mineralization, with 4 high grade lodes intersected in hole KARDD0002 recording 7.20 m at 24.76 g/t AuEq, 5.70 m at 9.94 g/t AuEq, 5.30 m at 6.06 g/t AuEq and 3.60 m at 3.38 g/t AuEq (See Fig 1), and similar mineralization to the producing high grade Kora and Judd vein systems (See Fig 5-6). Significant chalcopyrite, and also bornite observed in the 5.7 m at 9.94 g/t AuEq intersection, with the copper component grading 1.71%.
• The target size of Arakompa is very large, with mineralization demonstrated from drill holes, rock samples and surface workings for at least 1.7 km of strike, hosted within an approximately 150-225 m wide mineralized intense phyllic altered package, and exhibits a vertical extent of +500 m (see Fig 2-3).
  
• Between the high grade lodes, the tonalite to dioritic host rock is overprinted with porphyry style mineralization increasing the potential for bulk mining. Hole KARDD0002 recorded a bulk intersection of 219.8 m at 1.59 g/t AuEq with a higher grade core of 149.4m at 2.12 g/t AuEq, starting at 5.2 m from surface (see Fig 1). Importantly, hole KARDD0002 drilled only approximately two-thirds of the width of the mineralized corridor, with the eastern one-third untested (see Fig 2-3).
  
• Arakompa is sparsely drilled, open along strike, at depth and along its width. K92’s maiden drill results represent the first drilling on the project completed in 32 years. A total of 18 holes were drilled historically, with the vast majority shallow, recording significant high grade, including 15 intersections above 5 g/t AuEq, 8 intersections above 10 g/t AuEq and 3 intersections above 20 g/t AuEq, with highlights including: 4.00 m at 32.03 g/t AuEq, 4.00 m at 20.21 g/t AuEq, 2.00 m at 32.01 g/t AuEq, 2.80 m at 16.18 g/t AuEq and 9.20 m at 10.67 g/t AuEq (see Table 2 for historic drill holes). K92’s hole KARDD0002 is the longest hole drilled to date at Arakompa and plans are already in place to expand exploration activities near-term.

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Notes:
(1)  Drill highlights presented above are core lengths (not true widths).
(2) Gold equivalent (AuEq) exploration results are calculated using longer-term commodity prices with a copper price of US$4.00/lb, a silver price of US$22.50/oz and a gold price of US$1,750/oz.

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John Lewins, K92 Chief Executive Officer and Director, stated, “We are very excited to be announcing the first two drill hole results from Arakompa, demonstrating very high potential from both the multiple intersections and significant size potential from surface sampling, drill holes and local workings covering a strike of 1.7 km, a mineralized corridor of approximately 150 to 225 metres wide, and a demonstrated vertical extent of over 500 metres.

Arakompa is also near infrastructure, located closer to the process plant than Kora and Judd, with relatively gradual terrain for road access up from the Markham Valley, and importantly, represents a highly prospective opportunity to potentially grow production at Kainantu beyond the Stage 4 Expansion (see Figure 4).

Plans have already been actioned to expand the program at Arakompa in the near-term.”

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Chris Muller, K92 Executive Vice President Exploration, stated, “The Arakompa project represents another vein system analogous to the Kora-Judd consolidated corridor, with just as much potential. In addition to the high grade massive sulphide veins, the intervening gold mineralization at Arakompa is well developed and intimately associated with widespread phyllic alteration likely representing the upper expressions of a fertile porphyry at depth.

Almost all of the 18 holes drilled by former operators, Renison Goldfields Consolidated Limited and Highlands Gold Limited, intersected excellent gold-rich intercepts, even with only 1,766 metres drilled historically. Though drill tested over a substantial strike length, drilling by these companies only tested the very shallow parts of the veins. Clear indications of the vein system at surface, around 1000m RL, are a testament to even greater strike potential to the north and exceptional depth extent as well.

The proximity of the Arakompa mineralized corridor to the Kainantu Gold Mine infrastructure, even closer to the Lae-Madang Highway than Kora, is a significant attribute and will enable a major drilling campaign to be carried out cost effectively. We look forward to working with our stakeholders to delineate potentially the next major resource for Papua New Guinea.”

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VANCOUVER, British Columbia, Feb. 21, 2024 (GLOBE NEWSWIRE) — K92 Mining Inc. (“K92” or the “Company”) (TSX: KNT; OTCQX: KNTNF) is pleased to announce the results of the first two drill holes completed from its maiden drill program at Arakompa at the Kainantu Gold Mine in Papua New Guinea. Arakompa is near infrastructure, located approximately 4.5 km south-east of the Kainantu Gold Mine’s processing plant, and closer to the process plant than the producing Kora and Judd vein systems, located approximately 3 km south-west of Arakompa.

K92’s recently completed hole KARDD0002 is the longest hole drilled in the history of the project, intersecting significant mineralization including 4 lodes recording 7.20 m at 24.76 g/t AuEq (3.46 m true thickness), 5.70 m at 9.94 g/t AuEq (2.74 m true thickness), 5.30 m at 6.06 g/t AuEq (2.92 m true thickness) and 3.60 m at 3.37 g/t AuEq (1.73 m true thickness). One of the lodes, intersecting 5.70 m at 9.94 g/t AuEq, recorded significant chalcopyrite and bornite mineralization, with the copper component grading 1.7%. High grade lode mineralization appears to have significant similarities to Kora and Judd (see Arakompa Vein System Background below).

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Additionally, results from hole KARDD0002 demonstrate potential for bulk mining at Arakompa. Between the lodes, the tonalite to dioritic host rock is mineralized, overprinted with porphyry style gold-copper mineralization. Hole KARDD0002 recorded a bulk intersection of 219.8 m at 1.59 g/t AuEq (112.1 m true thickness) with a higher grade core of 149.4m at 2.12 g/t AuEq (78.4 m true thickness), starting at 5.2 m from surface (see Figure 1). Importantly, hole KARDD0002 drilled approximately only two-thirds of the width of the mineralized corridor, with the eastern one-third untested and prospective as shown via rock samples, including 5.8 g/t Au and 11.6 g/t Au.

The maiden drilling results are the first holes completed in 32 years, with limited and shallow drilling completed historically (18 holes, 1,766 m drilled). Of the 18 holes drilled historically, there were 15 intersections above 5 g/t AuEq, 8 intersections above 10 g/t AuEq and 3 intersections above 20 g/t AuEq, with highlights including:

• 004DA92 – 4.00 m at 32.03 g/t AuEq (3.32 m true thickness)
• 013AD92 – 4.00 m at 20.21 g/t AuEq (3.40 m true thickness)
• 001AD92 – 2.80 m at 16.18 g/t AuEq (2.41 m true thickness)
• 005AD92 – 2.00 m at 32.01 g/t AuEq (1.26 m true thickness)
• 016AD92 – 6.30 m at 14.96 g/t AuEq (2.39 m true thickness)
• 010AD92 – 9.20 m at 10.67 g/t AuEq (4.32 m true thickness)

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Surface field work completed historically and by K92 has demonstrated that the target size of Arakompa is significant, with mineralization observed from drill holes, rock samples and surface workings for at least 1.7 km of strike, hosted within an approximately 150 to 225 m wide mineralized intense phyllic altered package, and a vertical extent of over 500 metres.

Plans are already in place to expand exploration activities in the near term.

Arakompa Vein System Background

The Arakompa project is interpreted to be an intrusive related gold-copper-silver epithermal vein system with similarities to the producing Kora and Judd vein systems. A significant difference at Arakompa is that it is hosted in tonalite to dioritic rock, whereas Kora and Judd are hosted predominantly in metasediments (phyllite).

Mineralization at Arakompa is in pronounced vein lodes but is also widespread across a very broad envelope, hosted in strongly altered tonalite and diorite. This has been interpreted to have resulted from collapsing argillic and advanced argillic alteration and the propylitic alteration of the basement tonalite are interpreted to originate from the intrusion of a large magmatic porphyry body. Phyllic alternation appears to be associated with gold mineralization, providing a large halo (at least 100 m wide) around the vein corridor. There has likely been an upwelling of phyllic alteration from the porphyry into the high grade veins. This has resulted in mineralization between the veins, providing the potential for bulk mining.

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Multi-stage mineralizing events with several phases of quartz-sulphide development is apparent within the veins themselves. The sequence of early quartz deposited from a mesothermal dilute fluid followed by pyrite-copper-gold ± Bi-Te-Pb-Zn-Sn mineralization at Arakompa has many similarities to the same events encountered at Kora and Judd.

The main sulphides are pyrite, chalcopyrite, bornite and bismuthinite. As at Kora, chalcopyrite forms late, overprinting early phases of pyrite. Gold is documented in petrological reports and shown in photomicrographs as occurring in quartz, or often as inclusions overgrown by chalcopyrite.

Porphyry evidence is widespread at Arakompa. Localised, high level B veins (quartz with centreline pyrite) are present, typical of the upper parts of a porphyry system. Magnetite-epidote alteration represents classic prograde porphyry assemblages, indicative of the inner propylitic shell. Chalcocite is also locally present, suggesting an underlying copper-enriched body.

Figures

A cross section showing KARDD0002 at Arakompa is provided in Figure 1.

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A long section showing Arakompa drilling to date is provided in Figure 2.

A plan map for Arakompa is provided in Figure 3.

A location map is provided in Figure 4.

Core photographs are provided of drill hole KARDD0002 in Figure 5.

Mineralized specimen photographs of drill hole KARDD0002 in Figure 6.

Table 1
Kainantu Gold Mine – Significant Intercepts from Arakompa Diamond Drilling

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Table 2
Kainantu Gold Mine – Historical Intercepts from Arakompa Diamond Drilling

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Table 3
Kainantu Gold Mine – Collar Locations for Current K92 Arakompa Drilling

Table 4
Kainantu Gold Mine – Collar Locations for Historical Arakompa Drilling

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Drill Hole Sampling Methodology, QA/QC and Qualified Person

The diamond drill hole is first logged to determine the sampling intervals, which range from a minimum of 0.1 metres to generally 1 metre. The drill core is sawn half core cut along a reference line, with the remainder of the core returned to the core tray. Core samples are then placed in numbered calico and plastic bags, with a numbered sample ticket for dispatch to the assay laboratory. Samples are separately assayed for gold, copper and silver. K92’s procedure includes the insertion standards, blanks and duplicates. Gold assays are by the fire assay method. Copper and silver assays are by three-acid-digestion method (nitric, perchloric & hydrochloric mix).

K92 maintains an industry-standard analytical quality assurance and quality control (QA/QC) and data verification program to monitor laboratory performance and ensure high quality assays. Results from this program confirm reliability of the assay results. All sampling and analytical work for the mine exploration program is performed by Intertek Testing Services (PNG) Ltd, an independent accredited laboratory that is located on site. External check assays for QA/QC purposes are performed at SGS Australia Pty Ltd in Townsville, Queensland, Australia.

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K92 Executive Vice President Exploration, Mr. Chris Muller, PGeo, and K92 Mine Geology Manager and Mine Exploration Manager, Andrew Kohler, MAIG, both Qualified Persons under the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), have reviewed and are responsible for the technical content of this news release. In addition to the analytical QA/QC program outlined above, data verification also includes significant time onsite reviewing drill core, soil and outcrop sampling, artisanal workings, as well as discussing work programs and results with geology personnel and external consultants.

About K92

K92 Mining Inc. is engaged in the production of gold, copper and silver at the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine. The Company declared commercial production from Kainantu in February 2018 and is in a strong financial position. A maiden resource estimate on the Blue Lake porphyry project was completed in August 2022. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.

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On Behalf of the Company,

John Lewins, Chief Executive Officer and Director

For further information, please contact David Medilek, P.Eng., CFA, President and Chief Operating Officer at +1-604-416-4445

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Such forward-looking statements include, without limitation: (i) the results of the Kainantu Mine Definitive Feasibility Study, and the Kainantu 2022 Preliminary Economic Assessment, including the Stage 3 Expansion, a new standalone 1.2 mtpa process plant and supporting infrastructure; (ii) statements regarding the expansion of the mine and development of any of the deposits; (iii) the Kainantu Stage 4 Expansion, operating two standalone process plants, larger surface infrastructure and mining throughputs; and (iv) the potential extended life of the Kainantu Mine.

All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors, many of which are beyond our ability to control, that may cause our actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, without limitation, Public Health Crises, including the COVID-19 virus; changes in the price of gold, silver, copper and other metals in the world markets; fluctuations in the price and availability of infrastructure and energy and other commodities; fluctuations in foreign currency exchange rates; volatility in price of our common shares; inherent risks associated with the mining industry, including problems related to weather and climate in remote areas in which certain of the Company’s operations are located; failure to achieve production, cost and other estimates; risks and uncertainties associated with exploration and development of the Kora, Judd, Arakompa and other projects; uncertainties relating to estimates of mineral resources including uncertainty that mineral resources may never be converted into mineral reserves; the Company’s ability to carry on current and future operations, including development and exploration activities; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the availability and costs of achieving the Stage 3 Expansion or the Stage 4 Expansion; the ability of the Company to achieve the inputs the price and market for outputs, including gold, silver and copper; failures of information systems or information security threats; political, economic and other risks associated with the Company’s foreign operations; geopolitical events and other uncertainties, such as the conflicts in Ukraine, Israel and Palestine; compliance with various laws and regulatory requirements to which the Company is subject to, including taxation; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions, including relationship with the communities in Papua New Guinea and other jurisdictions it operates; other assumptions and factors generally associated with the mining industry; and the risks, uncertainties and other factors referred to in the Company’s Annual Information Form under the heading “Risk Factors”.

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Estimates of mineral resources are also forward-looking statements because they constitute projections, based on certain estimates and assumptions, regarding the amount of minerals that may be encountered in the future and/or the anticipated economics of production. The estimation of mineral resources and mineral reserves is inherently uncertain and involves subjective judgments about many relevant factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, Forward-looking statements are not a guarantee of future performance, and actual results and future events could materially differ from those anticipated in such statements. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause actual results to differ materially from those that are anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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Figure 1 – Arakompa Cross-Section – Showing KARDD0002

Figure 2 – Arakompa Long Section

Figure 3 – Arakompa Plan Map

Figure 4 – Site Map and Location of Arakompa, located near infrastructure (~4.5km from the Process Plant).

Figure 5 – KARDD0002 Core Photograph, 144.28 – 149.80m; within intersection of 7.2m at 24.44 g/t Au, 0.10 % Cu, 13 g/t Ag.

Figure 6 – KARDD0002 Mineralized Specimens Photographs.

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/6c9bcdc2-ca80-4d1a-bd53-3684d19885c3

https://www.globenewswire.com/NewsRoom/AttachmentNg/655ff696-2714-4377-a6f5-7b219ade91b4

https://www.globenewswire.com/NewsRoom/AttachmentNg/e1013c4f-55bc-464b-8e06-f395a5d7a58b

https://www.globenewswire.com/NewsRoom/AttachmentNg/777e0617-68e5-4707-84d8-26f0794dc13b

https://www.globenewswire.com/NewsRoom/AttachmentNg/4da86829-42b3-4b20-85ae-444c5c7a7ef9

https://www.globenewswire.com/NewsRoom/AttachmentNg/348303ba-13f3-4408-89ea-96daf4f902b8

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