K92 Mining Inc. (TSX: KNT) (OTCQX: KNTNF) is pleased to announce financial results for the three and twelve months ended December 31, 2024.

Production

Fourth Quarter 2024

• Record quarterly production of 53,401 ounces gold equivalent, or 51,371 oz gold, 958,312 lbs copper and 41,992 oz silver ^{(1) (3)}, representing a 37% increase from Q4 2023.
• Cash costs of US$483/oz gold, and all-in sustaining costs of US$837/oz gold ⁽³⁾.
• Quarterly ore processed of 96,614 tonnes or 1,050 tonnes per day, with a head grade of 18.0 grams per tonne AuEq, or 17.3 g/t gold, 0.47% copper, and 15.2 g/t silver. AuEq head grade in Q4 was the highest since Q2 2020, benefiting from a combination of higher-grade stopes from Kora and Judd, plus a notable positive gold grade reconciliation and moderate positive copper grade reconciliation versus the latest independent mineral resource (effective date of September 12, 2023 for Kora and Judd). Throughput was deliberately reduced to maximize recoveries at the higher feed grade.
• Record metallurgical recoveries in Q4 of 96.4% for gold and near-record recoveries of 94.7% for copper, with December achieving record monthly gold recoveries of 97.1% and copper recoveries of 96.1%.
• Ore mined of 97,016 tonnes, with total material movements (ore plus waste) second highest on record, totaling 306,430 tonnes.

Full Year 2024

• Record annual production of 149,515 ounces AuEq, or 139,123 oz gold, 4,926,738 lbs copper, and 142,009 oz silver, increasing 27% from 2023 and significantly exceeding the production guidance range of 120,000 to 140,000 ounces AuEq.
• Cash costs of US$664/oz gold and AISC of US$1,066/oz gold, significantly beating guidance ranges for cash cost of US$820 to US$880/oz gold, and AISC of US$1,440 to US$1,540/oz gold ⁽³⁾.
• Strong metallurgical recoveries achieved during the year of 94.6% for gold and 94.1% for copper.
• Ore processed of 427,821 tonnes for the year, with a head grade of 11.5 g/t AuEq, or 10.7 g/t gold, 0.55% copper, and 15.2 g/t silver.
• Ore mined of 419,611 tonnes for the year, with total material movements (ore plus waste) of 1,080,485 tonnes.

Financials

Fourth Quarter 2024

• Near-record quarterly revenue of US$120.3 million, an increase of 60% from Q4 2023.
• Record quarterly net income of US$55.5 million or US$0.23 per share, an increase of 178% from Q4 2023.
• Record cash, cash equivalent and term deposits totaling US$141.3 million, which excludes restricted cash position of US$20.5 million ⁽⁵⁾.
• Record sales of 48,851 oz gold, 954,657 lbs copper and 42,088 oz silver. Gold concentrate and doré inventory of 4,961 oz as of December 31, 2024, an increase of 3,074 oz over the prior quarter.
• Record operating cash flow (before working capital adjustments) for the three months ended December 31, 2024, of US$72.0 million or US$0.30 per share, and record earnings before interest, taxes, depreciation and amortization (“EBITDA”) ⁽³⁾ of US$84.2 million or US$0.35 per share, an 87% and 107% increase from Q4 2023, respectively.

Full Year 2024

• Record annual revenue of US$350.6 million, an increase of 75% from 2023.
• Record annual net income of US$111.2 million or US$0.47 per share, an increase of 235% from 2023.
• Record annual sales of 141,159 oz gold, 5,051,087 lbs copper and 145,428 oz of silver.
• Record operating cash flow (before working capital adjustments) for the twelve months ended December 31, 2024, of US$170.4 million or US$0.72 per share, and record earnings before interest, taxes, depreciation and amortization of US$196.5 million or US$0.83 per share ⁽³⁾, a 108% and 134% increase from 2023, respectively.

Growth

• On the Stage 3 and 4 Expansions, 70% of growth capital has been either spent or committed as of December 31, 2024. Construction of the 1.2 million tpa (“tonnes per annum”) Stage 3 Expansion Process Plant is rapidly advancing, with a majority of the long-lead time items on site for the process plant and construction most advanced at the grinding circuit (SAG + Ball), which is the critical path for the mill construction schedule. K92 remains on track to begin commissioning of the Stage 3 Expansion Process Plant in the second half of Q2 2025. For the paste plant, all long lead items have been ordered and the award of the construction contract is well advanced. Underground, the two raise bore rigs are operational, with reaming of the first raise (5 m diameter) completed to upgrade ventilation to the main mine. Development of the first waste/ore pass connecting the main mine to the twin incline to improve productivity in material handling has been completed and expected to be fully operational in mid-2025.
• Strong results during the quarter from 95 diamond drill holes that were reported from underground and surface at the Kora, Kora South, Judd, and Judd South deposits in addition to Kora and Judd Deeps. The results identified multiple high-grade intersections plus two zones of broadening widths, known as dilatant zones, recorded in a previously sparsely drilled area near the twin incline at Kora. These zones exhibit significant strike lengths with approximately 60 metres in K1 and 100 metres in K2, indicating high potential for bulk mining. Located about 175 metres south of the current 950 Level access development, these zones offer potential for near-term mining.
  • Significant dilatant zone intercepts:
    • KMDD0752: 13.50 m at 19.02 g/t AuEq or 14.93 g/t Au, 199 g/t Ag, 1.00% Cu (K2 Dilatant Zone) ⁽⁴⁾
    • KMDD0746: 14.40 m at 12.09 g/t AuEq or 9.58 g/t Au, 54 g/t Ag, 1.15% Cu (K2 Dilatant Zone)
    • KMDD0709: 16.10 m at 15.63 g/t AuEq or 11.48 g/t Au, 40 g/t Ag, 2.28% Cu (K1 Dilatant Zone)
    • KMDD0743: 14.05 m at 5.56 g/t AuEq or 3.14 g/t Au, 56 g/t Ag, 1.07% Cu (K1 Dilatant Zone)
  • High-grade intercepts:
    • KMDD0698A: 8.15 m at 24.49 g/t AuEq or 24.00 g/t Au, 16 g/t Ag, 0.18% Cu (K1 Vein)
    • KMDD0775: 4.00 m at 15.58 g/t AuEq or 11.53 g/t Au, 44 g/t Ag, 2.19% Cu (K1 Vein)
  • High-grade extensions up-dip from main underground mining area in Kora’s K1 and K2 Veins:
    • KMDD0753: 10.60 m at 34.57 g/t AuEq or 27.85 g/t Au, 37 g/t Ag, 3.91% Cu (K1 Vein)
    • KMDD0702: 4.37 m at 33.27 g/t AuEq or 32.16 g/t Au, 10 g/t Ag, 0.61% Cu (K1 Vein)
    • KMDD0754: 9.35 m at 13.70 g/t AuEq or 11.51 g/t Au, 12 g/t Ag, 1.27% Cu (K2 Vein)
    • KMDD0705: 6.60 m at 10.76 g/t AuEq or 7.27 g/t Au, 12 g/t Ag, 2.08% Cu (K2 Vein)
  • Judd’s J1 Vein reported multiple high-grade zones up-dip from main mine and high-grade intercepts were identified beyond the current resource at Judd Deeps and along strike in both directions:
    • JDD0251: 5.00 m at 178.59 g/t AuEq or 177.69 g/t Au, 2 g/t Ag, 0.54% Cu (J1 Vein Up-dip)
    • JDD0258: 3.95 m at 51.67 g/t AuEq or 50.06 g/t Au, 24 g/t Ag, 0.81% Cu (J1 Vein Up-dip)
    • KMDD0729: 1.30 m at 23.33 g/t AuEq or 16.77 g/t Au, 52 g/t Ag, 3.69% Cu (J1 Vein Deeps)
    • JDD0261: 1.70 m at 23.20 g/t AuEq or 21.63 g/t Au, 42 g/t Ag, 0.65% Cu (J1 Vein North)

See the Company’s news release dated December 3, 2024 for additional details.

• Subsequent to quarter’s end, K92 reported results from the fourth set of drill holes from its maiden drill program at the Arakompa project, bringing the total number of holes reported for the year to 43. The 13 recent holes confirmed two significant thick high-grade veins, AR1 and AR2, extended the strike 150 metres south, and expanded the bulk zone, now defined over 900 metres of strike length and to a vertical depth of 650 metres. Drill results to date indicate an average bulk zone true thickness of 48 metres, reinforcing the project’s strong bulk mining potential. Exploration activity has ramped up from one rig in Q1 2024 to four rigs currently operating, with a new compact heli-portable rig scheduled to arrive in mid-2025. This addition will significantly enhance our ability to efficiently target Arakompa’s northern extension, unlocking a new front for exploration. K92 is on track to deliver a maiden mineral resource estimate for Arakompa by mid-2025. Key highlights from the fourth set of drill results include:
  • AR1 and AR2 Veins have been defined to a depth of over 500 metres and at significant strike lengths of approximately 675 and 775 metres, respectively. Both veins are open in multiple directions, recording a substantial average true thickness from drilling to date of 3.14 metres for AR1 and 2.94 metres for AR2, with highlights including:
    • KARDD0033: 11.10 m at 5.93 g/t AuEq or 5.37 g/t Au, 8 g/t Ag, 0.29% Cu (AR1 Vein)
    • KARDD0035: 11.10 m at 4.93 g/t AuEq or 4.50 g/t Au, 10 g/t Ag, 0.19% Cu (AR1 Vein)
    • KARDD0042: 2.60 m at 11.91 g/t AuEq or 9.06 g/t Au, 41 g/t Ag, 1.48% Cu (AR1 Vein)
    • KARDD0038: 14.50 m at 17.33 g/t AuEq or 17.17 g/t Au, 4 g/t Ag, 0.07% Cu (AR2 Vein)
    • KARDD0044: 12.00 m at 5.26 g/t AuEq or 5.18 g/t Au, 2 g/t Ag, 0.03% Cu (AR2 Vein)
  • Significant extension of bulk tonnage strike by ~150 metres to the south to a total interpreted strike now exceeding 900 metres, with bulk tonnage intersections reported to date recording an average true thickness of 48 metres and mineralization reaching a vertical depth of up to 650 metres, with highlights including:
    • KARDD0038: 65.00 m at 4.15 g/t AuEq or 4.04 g/t Au, 3 g/t Ag, 0.05% Cu
    • KARDD0035: 85.30 m at 1.19 g/t AuEq or 1.00 g/t Au, 4 g/t Ag, 0.08% Cu, including 29.90 m at 2.49 g/t AuEq or 2.09 g/t Au, 7 g/t Ag, 0.20% Cu
    • KARDD0042: 50.40 m at 1.90 g/t AuEq or 1.58 g/t Au, 6 g/t Ag, 0.15% Cu
    • KARDD0033: 57.70 m at 1.44 g/t AuEq or 1.28 g/t Au, 3 g/t Ag, 0.08% Cu
    • KARDD0044: 59.20 m at 1.27 g/t AuEq or 1.21 g/t Au, 2 g/t Ag, 0.02% Cu
    • KARDD0036 (~100 m southern step-out along strike): 47.70 m at 1.02 g/t AuEq or 0.74 g/t Au, 4 g/t Ag, 0.14% Cu
    • KARDD0039 (~150 m southern step-out along strike): 33.50 m at 1.06 g/t AuEq or 0.85 g/t Au, 5 g/t Ag, 0.09% Cu

See the Company’s news release dated February 20, 2025 for additional details.

The Company’s audited consolidated financial statements and associated management’s discussion and analysis for the year ended December 31, 2024 are available for download on the Company’s website and under the Company’s profile on SEDAR+ (www.sedarplus.ca). All amounts are in U.S. dollars unless otherwise indicated.

See Figure 1: Quarterly Production, Cash Cost and AISC Chart

See Figure 2: Quarterly Total Ore Processed, Development Metres Advanced and Total Mined Material Chart

See Figure 3: Gold and Copper Recoveries Chart

John Lewins, K92 Chief Executive Officer and Director, stated, “”In 2024, K92 took another major step forward, delivering multiple operational and financial records, significantly beating production and cost guidance, while also making major construction progress for the Stage 3 and 4 Expansions. The Company recorded a notable strengthening of our financial position heading into 2025, even after substantial Stage 3 and 4 Expansion growth capital spent in 2024, ending the year with a record $141 million in cash, cash equivalents, and term deposits, with an additional $20 million in restricted cash converted to unrestricted cash after quarter-end. This strong financial position is further backstopped by up to $90 million in additional liquidity through undrawn credit facilities, with $60 million of debt drawn at year end.

While 2024 has been an exceptional year, 2025 promises to be transformational. Commissioning of the new 1.2 mtpa Stage 3 Process Plant is scheduled to commence only months from now, marking the beginning of the Kainantu Mine and K92 becoming a Tier 1 Mid-Tier Producer. Exploration is also rapidly advancing at Arakompa, recording both high-grade vein and bulk zone intersections over significant depth and strike as reported last month. As more surface drill rigs arrive on site, we plan to not only increase step-out drilling at Arakompa, but also, later this year drill, Maniape, which shows promising similarities to Arakompa, in addition to potentially several near-Kora/Judd vein targets delineated from field work. We look forward to providing updates in due course.”

Notes:

(1)  Gold equivalent in 2024 is calculated based on: gold $2,450 per ounce; silver $28.41 per ounce; and copper $4.15 per pound. Gold equivalent in Q4 2024 is calculated based on: gold $2,658 per ounce; silver $31.52 per ounce; and copper $4.25 per pound.

(2)   The average realized selling price per ounce is net of metal payabilities for both concentrate and doré.

(3)  The Company provides some non-international financial reporting standard measures as supplementary information that management believes may be useful to investors to explain the Company’s financial results. Please refer to non-IFRS financial performance measures in the Company’s management’s discussion and analysis dated March 16, 2025, available on SEDAR+ or the Company’s website, for reconciliation of these measures.

(4)   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.

(5)   The restricted cash is in relation to a condition precedent in the Loan with Trafigura. All conditions precedent for the advance of US$120 million have been satisfied. Subsequent to December 31, 2024, the Company drew $20.0 million from the Canadian Credit Facility and repaid the PNG Credit Facility in full. As a result, the Company no longer holds any cash designated as restricted cash for the purposes of security under the Loan.

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Qualified Person

K92 Interim Vice President Exploration, Mr. Andrew Kohler, MAIG, PGeo, a qualified person under the meaning of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and is responsible for the technical content of this news release.

Technical Report

The Definitive Feasibility Study for the Kainantu Gold Mine Project in Papua New Guinea is included in a Technical Report, titled, “Independent Technical Report, Kainantu Gold Mine Updated Integrated Development Plan, Kainantu Project, Papua New Guinea” dated November 28, 2024, with an effective date of January 1, 2024.

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, is in a strong financial position, and is working to become a Tier 1 mid-tier producer through ongoing plant expansions. A maiden resource estimate on the Blue Lake copper-gold 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.

Figure 1: Quarterly Production, Cash Cost and AISC Chart

Figure 2: Quarterly Total Ore Processed, Development Metres Advanced and Total Mined Material Chart

Figure 3: Gold and Copper Recoveries Chart