Commissioning Of Stage Three Expansion Process Plant

VANCOUVER – K92 Mining Inc. reported on the second quarter (Q2) of 2025 from its Kainantu Gold Mine in Papua New Guinea. Strong quarterly production of 34,816 ounces gold equivalent (AuEq)or 32,375 oz gold, 1,536,505 lbs copper and 42,824 oz silver, representing a 43% increase from Q2 2024. Quarterly sales of 28,864 oz gold, 1,275,176 lbs copper and 34,532 oz silver. With 82,633 oz AuEq produced during the first six months of 2025, which is ahead of budget, and the second half forecasted to be the strongest, as outlined in our 2025 Operational Outlook, the Company re-iterates its annual operational production guidance of 160,000 to 185,000 oz AuEq.

Quarterly ore processed of 130,337 tonnes, a 36% and 26% increase from Q2 2024 and Q1 2025, respectively, with a head grade of 8.9 grams per tonne (g/t) AuEq, or 8.3 g/t gold, 0.55% copper and 12.1 g/t silver. Strong metallurgical recoveries in Q2 of 93.3% for gold and 94.9% for copper. The process plant has now delivered four consecutive quarters exceeding the updated definitive feasibility study (Updated DFS) recovery parameters for both gold (92.6%) and copper (94.2%).

Ore mined of 133,063 tonnes, with mining activity across 13 levels, including the 1090, 1110, 1305, 1325, 1345, and 1365 levels at Kora, and the 970, 990, 1170, 1325, 1345, 1365 and 1385 levels at Judd – long hole open stoping performed to design. Total material movements (ore plus waste) totaled 338,696 tonnes and total mine development was 2,466 metres. During the quarter, total material movements were the second highest on record, even though Stage 3 Expansion electrical commissioning works resulted in a cumulative 5 days of disruptions to the underground, which has largely been resolved.

Major milestone achieved in the second half of June, with the commencement of commissioning of the new 1.2 million tonnes-per-annum Stage 3 Expansion Process Plant. All pre-commissioning tasks have been completed, and inching of both the SAG and ball mills was completed in late June. Practical completion of commissioning remains on schedule for the first half of Q4 2025.In June, the Engineering, Procurement, and Construction Management (EPCM) contract for the pastefill filtration plant and the Engineering, Procurement, and Construction (EPC) contract for the surface storage facility packages were awarded, with the underground pastefill plant package self-awarded earlier in the quarter. Commissioning of all three facilities is scheduled to commence in mid-Q1 2026, while practical completion of commissioning for the pastefill circuit remains on schedule for mid-2026. As at June 30, 2025, 86% of Stage 3 Expansion growth capital has either been spent or committed (75% as at March 31, 2025) and remains on budget.

In Q2, several ancillary construction projects were completed, including: i) the temporary power station; ii) Phase 1 of the permanent power station, and; iii) the Kumian Creek camp accommodation facilities. The 160 ensuite room Kumian Creek Camp is initially being utilized for construction contractors, then will subsequently be utilized for the Stage 4 Expansion. The infrastructure-driven transformation of the underground mine is nearly complete for the Stage 3 Expansion, with various underground construction projects well advanced and scheduled for completion in Q3, including: i) a fully operational ore/waste pass, ii) Puma ventilation drive; and iii) two additional raisebore ventilation raises. In June, the wifi/fibre optic communications upgrade was completed, enabling the introduction of various productivity technologies, with the first being the commissioning of surface operated tele-remote loaders, which commenced in June. Two new mining fronts have also been significantly developed, including 4 new sublevels in the Twin Incline mining front and 2 new sublevels in the Lower Kora mining front, with stoping planned to commence in Q4.

John Lewins, Chief Executive Officer and Director, said, “K92 is on the cusp of transforming into a Tier 1 mid-tier producer, with commissioning of the new 1.2 million tonnes-per-annum Stage 3 Expansion Process Plant now underway. The plant incorporates state-of-the-art processing technologies and remains on schedule for practical completion of commissioning in the first half of Q4 2025.

Underground infrastructure upgrades are also nearing completion, including a fully operational ore/waste pass, Puma ventilation drive, and two large-diameter raisebore ventilation raises — key enablers for higher mining rates. Additionally, the recent commencement of commissioning surface-operated tele-remote loaders marks the first wave of productivity enhancements enabled by our underground communications upgrade.

Importantly, we are also well-advanced on opening up two new mining fronts in the Twin Incline and the Lower Kora, which position the mine for higher throughput and an increase in ore tonnes from lower-cost long-hole stoping. Meanwhile, construction contracts for all major pastefill infrastructure have been awarded, with commissioning expected to commence in mid-Q1 2026.

Overall we are very pleased with our production performance in the first half of 2025, which is ahead of budget. With a stronger second half anticipated, driven by higher throughput in Q4, we reiterate our 2025 production guidance.”