K92 Receives More High-Grade Kora Drill Results From Kora North Extension

 

• Drill Hole KMDD0124 records multiple intersections including 7.45 m at 116.49 g/t Au, 17 g/t Ag and 0.96% Cu (118.19 g/t Au Eq) plus 13.52 m at 7.64 g/t Au, 18 g/t Ag and 0.31% Cu (8.35 g/t AuEq)
• Drill Hole KMDD0118 records multiple intersections including 4.18 m at 28.15 g/t Au, 10 g/t Ag and 0.10% Cu (28.43 g/t AuEq)
• Drill Hole KMDD0122 records 18.6 m at 10.38 g/t Au, 3 g/t Ag and 0.74% Cu (11.56 g/t AuEq) plus 4.60 m at 3.72 g/t Au, 38 g/t Ag and 1.62% Cu (6,67 g/t AuEq) plus 2.00 m at 0.91 g/t Au, 39 g/t Ag and 3.42% Cu (6.64 g/t AuEq)
• Drill Hole KMDD0126 records 7.42 m at 17.05 g/t Au, 2 g/t Ag and 0.24% Cu (17.44 g/t AuEq) plus 3.10 m at 8.43 g/t Au, 2 g/t Ag and 0.02% Cu (8.49 g/t AuEq)

VANCOUVER, British Columbia, Feb. 25, 2019 (GLOBE NEWSWIRE) -- K92 Mining Inc. (TSX-V: KNT; OTCQX: KNTNF) (“K92” or the “Company”) is pleased to announce results from the continuing diamond drilling of the Kora North Extension of the Kainantu gold mine in Papua New Guinea.

The results for the latest 7 diamond drill holes completed from diamond drill cuddies 3 and 4 (DDC3 and DDC4) into the Kora North deposit are summarized in Table 1 below. These results continue to delineate and extend both the K1, K2 lodes as well as the KL structure between the lodes. Long sections showing all holes drilled to date in both K1 and K2 are provided below. Table 2 provides details of collar location and hole orientation.

John Lewins, K92 Chief Executive Officer and Director, stated, “These latest results have once again confirmed the remarkable continuity of the high-grade K1 and K2 vein systems within the Kora deposit. The holes are primarily intended to upgrade the known resource and provide grade control information for mine planning. The results include two exceptional holes: KMDD0126 with a K1 intersection of 7.45 metres at over 118 g/t AuEq (one of the highest grades recorded), and KMDD0122 with a K1 intersection of 18.6 metres at 11.56 g/t AuEq (one of the widest intersections recorded to date).

“It has also been extremely pleasing to see the rate of underground diamond drilling accelerate in the last weeks as the first of the new more powerful underground diamond rigs has been commissioned. With another new larger rig due to commence in the coming month, the rate of drilling will accelerate further, with a focus on exploration drilling of extensions to the existing resources between Kora, Kora North and Eutompi.”

Table 1 - Kainantu Gold Mine – Significant Intercepts from Diamond Drill Cuddies 3 & 4

Hole_id	From (m)	To (m)	Interval (m)	True width (m)	Gold g/t	Silver g/t	Copper %	Gold equivalent
KMDD0114	22.69	24.05	1.36	0.94	1.55	2	0.61	2.51
Including	22.69	23.10	0.41	0.28	0.36	4	1.03	1.98
Including	23.10	23.60	0.50	0.35	0.07	1	0.19	0.37
Including	23.60	24.05	0.45	0.31	4.27	2	0.70	5.36
KMDD0114	34.29	38.08	3.79	2.62	12.18	1	0.06	12.29
Including	34.29	35.85	1.56	1.08	20.30	3	0.07	20.44
Including	35.85	36.90	1.05	0.73	5.26	1	0.04	5.33
Including	36.90	37.73	0.83	0.57	10.10	1	0.07	10.22
Including	37.73	38.08	0.35	0.24	1.67	1	0.05	1.75
KMDD0114	70.07	73.18	3.11	2.66	1.81	6	0.34	2.39
Including	70.07	70.71	0.64	0.55	0.76	3	0.21	1.13
Including	70.71	70.96	0.25	0.21	0.33	9	0.46	1.15
Including	70.96	71.28	0.32	0.27	1.09	8	0.20	1.50
Including	71.28	71.63	0.35	0.30	0.32	6	0.38	0.98
Including	71.63	72.00	0.37	0.32	1.04	14	0.80	2.45
Including	72.00	72.30	0.30	0.26	0.67	1	0.16	0.92
Including	72.30	73.18	0.88	0.75	4.56	3	0.28	5.03
KMDD0116	26.38	28.88	2.50	1.96	11.76	4	0.48	12.53
Including	26.38	26.65	0.27	0.21	16.41	3	0.70	17.52
Including	26.65	27.26	0.61	0.48	0.22	1	0.05	0.32
Including	27.26	27.48	0.22	0.17	0.42	1	0.02	0.47
Including	27.48	28.28	0.80	0.63	30.10	9	1.20	32.05
Including	28.28	28.88	0.60	0.47	1.10	1	0.01	1.13
KMDD0116	31.73	35.50	3.77	2.96	5.29	6	0.43	6.03
Including	31.73	32.16	0.43	0.34	38.56	14	0.03	38.78
Including	32.16	32.88	0.72	0.56	0.36	1	0.02	0.40
Including	32.88	33.12	0.24	0.19	3.86	2	0.02	3.91
Including	33.12	33.40	0.28	0.22	0.15	1	0.09	0.30
Including	33.40	33.73	0.33	0.26	0.84	1	0.09	0.98
Including	33.73	34.43	0.70	0.55	0.18	5	0.46	0.94
Including	34.43	34.74	0.31	0.24	2.79	3	0.72	3.92
Including	34.74	35.07	0.33	0.26	0.28	1	0.02	0.32
Including	35.07	35.50	0.43	0.34	1.79	27	2.32	5.68
KMDD0116	38.60	39.53	0.93	0.73	1.41	26	1.59	4.17
KMDD0116	96.00	99.24	3.24	2.62	4.96	9	0.62	6.02
Including	96.00	96.67	0.67	0.54	0.94	6	0.17	1.28
Including	96.67	97.30	0.63	0.51	2.81	7	0.06	2.98
Including	97.30	97.98	0.68	0.55	17.76	12	2.01	20.99
Including	97.98	98.52	0.54	0.44	0.52	13	0.43	1.35
Including	98.52	99.24	0.72	0.58	1.82	6	0.37	2.46
KMDD0118	32.07	36.25	4.18	2.98	28.15	10	0.10	28.43
Including	32.07	32.63	0.56	0.40	52.25	4	0.15	52.53
Including	32.63	33.07	0.44	0.31	0.17	1	0.06	0.27
Including	33.07	33.45	0.38	0.27	0.26	1	0.03	0.32
Including	33.45	33.83	0.38	0.27	4.67	2	0.07	4.80
Including	33.83	34.45	0.62	0.44	15.04	1	0.08	15.17
Including	34.45	35.00	0.55	0.39	117.80	65	0.29	119.06
Including	35.00	35.57	0.57	0.41	17.50	2	0.06	17.62
Including	35.57	36.25	0.68	0.48	3.48	2	0.04	3.57
KMDD0118	48.10	50.20	2.10	1.79	1.46	17	0.42	2.32
Including	48.10	48.50	0.40	0.34	2.16	27	0.46	3.20
Including	48.50	48.60	0.10	0.09	0.48	3	0.04	0.58
Including	48.60	49.20	0.60	0.51	0.38	8	0.21	0.80
Including	49.20	50.20	1.00	0.85	1.92	20	0.57	3.05
KMDD0118	66.00	68.68	2.68	2.28	1.20	7	0.25	1.67
Including	66.00	67.18	1.18	1.00	0.15	7	0.35	0.78
Including	67.18	67.60	0.42	0.36	0.19	5	0.05	0.32
Including	67.60	68.00	0.40	0.34	0.95	5	0.05	1.09
Including	68.00	68.68	0.68	0.58	3.80	9	0.32	4.41
KMDD0118	81.00	81.80	0.80	0.68	1.53	6	0.07	1.72
Including	81.00	81.40	0.40	0.34	1.07	3	0.01	1.12
Including	81.40	81.80	0.40	0.34	2.00	9	0.14	2.33
KMDD0118	87.00	87.78	0.78	0.66	7.00	3	0.01	7.05
KMDD0120	31.00	39.85	8.85	5.65	15.86	5	0.48	16.66
Including	31.00	31.90	0.90	0.57	5.32	11	0.27	5.88
Including	31.90	32.80	0.90	0.57	0.25	3	0.61	1.22
Including	32.80	33.20	0.40	0.26	0.18	2	0.43	0.86
Including	33.20	34.00	0.80	0.51	1.51	12	2.78	5.92
Including	34.00	35.00	1.00	0.64	0.16	1	0.28	0.61
Including	35.00	35.55	0.55	0.35	0.11	1	0.16	0.37
Including	35.55	36.40	0.85	0.54	0.21	1	0.09	0.36
Including	36.40	36.70	0.30	0.19	2.18	4	0.69	3.29
Including	36.70	37.10	0.40	0.26	0.41	1	0.04	0.48
Including	37.10	37.85	0.75	0.48	7.14	6	0.09	7.35
Including	37.85	38.70	0.85	0.54	125.00	6	0.21	125.40
Including	38.70	39.20	0.50	0.32	10.17	3	0.19	10.50
Including	39.20	39.85	0.65	0.42	24.90	3	0.12	25.12
KMDD0120	39.85	42.80	2.95	1.88	1.06	3	0.34	1.62
Including	39.85	40.83	0.98	0.63	1.45	1	0.01	1.48
Including	40.83	41.83	1.00	0.64	0.42	1	0.01	0.45
Including	41.83	42.80	0.97	0.62	1.33	7	1.01	2.97
KMDD0120	47.60	49.60	2.00	1.28	1.70	32	1.00	3.64
Including	47.60	48.10	0.50	0.32	2.13	22	0.34	2.93
Including	48.10	48.80	0.70	0.45	1.89	54	2.61	6.57
Including	48.80	49.60	0.80	0.51	1.26	18	0.01	1.51
KMDD0120	101.70	104.55	2.85	1.71	2.05	18	1.17	4.06
Including	101.70	102.14	0.44	0.26	0.73	31	2.48	4.92
Including	102.14	103.12	0.98	0.59	2.71	34	2.02	6.23
Including	103.12	103.48	0.36	0.22	1.07	1	0.13	1.28
Including	103.48	104.55	1.07	0.64	2.31	3	0.19	2.64
KMDD0122	43.70	62.30	18.60	8.13	10.38	3	0.74	11.56
Including	43.70	44.36	0.66	0.29	1.65	14	3.73	7.53
Including	44.36	44.90	0.54	0.24	18.70	3	0.38	19.32
Including	44.90	45.50	0.60	0.26	1.61	3	0.75	2.79
Including	45.50	46.30	0.80	0.35	15.20	5	1.39	17.39
Including	46.30	46.75	0.45	0.20	3.15	6	2.31	6.76
Including	46.75	47.38	0.63	0.28	0.43	3	0.50	1.23
Including	47.38	47.88	0.50	0.22	0.71	5	0.73	1.88
Including	47.88	48.58	0.70	0.31	0.42	4	1.08	2.12
Including	48.58	49.32	0.74	0.32	0.19	2	0.31	0.69
Including	49.32	49.50	0.18	0.08	2.44	35	25.20	41.44
Including	49.50	50.15	0.65	0.28	0.26	3	0.40	0.90
Including	50.15	50.90	0.75	0.33	0.10	2	0.70	1.20
Including	50.90	51.90	1.00	0.44	0.17	2	0.21	0.52
Including	51.90	52.90	1.00	0.44	0.23	1	0.10	0.40
Including	52.90	53.63	0.73	0.32	0.16	1	0.02	0.20
Including	53.63	54.32	0.69	0.30	0.03	1	0.00	0.04
Including	54.32	55.15	0.83	0.36	0.02	1	0.03	0.08
Including	55.15	56.05	0.90	0.39	0.14	3	0.31	0.65
Including	56.05	56.87	0.82	0.36	0.23	3	0.31	0.75
Including	56.87	57.30	0.43	0.188	0.07	2	0.13	0.30
Including	57.30	57.95	0.65	0.284	0.15	1	0.02	0.19
Including	57.95	58.30	0.35	0.153	35.4	7	0.14	35.70
Including	58.30	58.90	0.60	0.262	2.73	1	0.023	2.78
Including	58.90	59.70	0.80	0.350	4.26	1	0.19	4.57
Including	59.70	60.40	0.70	0.306	21.5	3	0.029	21.58
Including	60.40	60.60	0.20	0.087	25.1	1	0.071	25.22
Including	60.60	61.06	0.46	0.201	5.04	1	0.03	5.10
Including	61.06	62.00	0.94	0.411	115	5	0.28	115.48
Including	62.00	62.30	0.30	0.131	55.8	5	0.16	56.11
KMDD0122	74.40	79.00	4.60	2.97	3.72	38	1.62	6.67
Including	74.40	75.30	0.90	0.58	13.30	1	0.02	13.34
Including	75.30	76.13	0.83	0.54	0.06	16	0.69	1.32
Including	76.13	77.10	0.97	0.63	1.74	41	1.36	4.35
Including	77.10	78.08	0.98	0.63	2.62	107	5.25	12.01
Including	78.08	79.00	0.92	0.59	0.90	16	0.41	1.73
KMDD0122	155.70	157.70	2.00	1.00	0.91	39	3.42	6.64
Including	155.70	155.96	0.26	0.13	1.75	37	0.75	3.36
Including	155.96	156.70	0.74	0.37	0.95	24	2.29	4.76
Including	156.70	157.30	0.60	0.30	0.55	33	3.29	6.00
Including	157.30	157.70	0.40	0.20	0.85	76	7.44	13.20
KMDD0124	63.55	71.00	7.45	4.63	116.49	17	0.96	118.19
Including	63.55	63.96	0.41	0.25	16.20	52	2.31	20.39
Including	63.96	64.62	0.66	0.41	1.39	1	0.23	1.75
Including	64.62	65.39	0.77	0.48	1020.00	35	1.37	1022.54
Including	65.39	66.00	0.61	0.38	2.59	1	0.09	2.74
Including	66.00	66.96	0.96	0.60	32.80	16	3.03	37.64
Including	66.96	67.68	0.72	0.45	0.91	6	0.51	1.77
Including	67.68	68.50	0.82	0.51	4.31	2	0.09	4.48
Including	68.50	69.43	0.93	0.58	4.36	1	0.06	4.45
Including	69.43	71.00	1.57	0.98	21.40	37	1.00	23.40
KMDD0124	78.00	79.10	1.10	0.68	1.46	39	2.27	5.43
KMDD0124	82.14	95.66	13.52	10.29	7.64	18	0.31	8.35
Including	82.14	83.00	0.86	0.65	10.70	11	0.46	11.54
Including	83.00	84.00	1.00	0.76	7.44	12	0.58	8.47
Including	84.00	85.00	1.00	0.76	17.30	72	1.34	20.27
Including	85.00	86.00	1.00	0.76	23.32	10	0.35	23.98
Including	86.00	87.00	1.00	0.76	12.66	16	0.44	13.53
Including	87.00	88.00	1.00	0.76	19.26	35	0.21	20.03
Including	88.00	89.00	1.00	0.76	1.87	23	0.24	2.53
Including	89.00	90.00	1.00	0.76	1.89	14	0.12	2.25
Including	90.00	91.00	1.00	0.76	2.14	7	0.06	2.32
Including	91.00	92.00	1.00	0.76	1.71	12	0.23	2.21
Including	92.00	93.00	1.00	0.76	2.60	16	0.07	2.90
Including	93.00	93.70	0.70	0.53	2.51	6	0.17	2.85
Including	93.70	94.40	0.70	0.53	0.45	5	0.07	0.62
Including	94.40	95.66	1.26	0.96	1.42	7	0.04	1.57
KMDD0126	63.08	70.50	7.42	5.44	17.05	2	0.24	17.44
Including	63.08	64.00	0.92	0.68	36.17	2	0.69	37.25
Including	64.00	65.30	1.30	0.95	42.87	4	0.33	43.42
Including	65.30	65.66	0.36	0.26	6.78	1	0.21	7.12
Including	65.66	66.38	0.72	0.53	0.35	1	0.03	0.40
Including	66.38	66.88	0.50	0.37	1.33	1	0.44	2.02
Including	66.88	67.90	1.02	0.75	16.69	1	0.09	16.83
Including	67.90	68.85	0.95	0.70	14.21	1	0.08	14.33
Including	68.85	69.90	1.05	0.77	2.67	2	0.22	3.04
Including	69.90	70.50	0.60	0.44	1.32	1	0.07	1.43
KMDD0126	73.50	76.60	3.10	2.27	8.43	2	0.02	8.49
Including	73.50	74.30	0.80	0.59	26.23	5	0.06	26.39
Including	74.30	75.60	1.30	0.95	0.56	1	0.01	0.58
Including	75.60	76.60	1.00	0.73	4.42	1	0.02	4.46
KMDD0126	79.15	95.00	15.85	11.63	3.16	7	0.46	3.96
Including	79.15	79.90	0.75	0.55	3.55	4	0.58	4.49
Including	79.90	80.90	1.00	0.73	1.76	7	0.85	3.14
Including	80.90	81.90	1.00	0.73	5.48	1	0.46	6.19
Including	81.90	83.10	1.20	0.88	9.75	3	0.46	10.50
Including	83.10	83.50	0.40	0.29	20.42	3	0.12	20.64
Including	83.50	84.60	1.10	0.81	0.39	1	0.04	0.45
Including	84.60	85.60	1.00	0.73	0.57	2	0.11	0.77
Including	85.60	86.33	0.73	0.54	3.52	1	0.09	3.68
Including	86.33	87.33	1.00	0.73	0.12	1	0.05	0.20
Including	87.33	87.90	0.57	0.42	1.05	12	0.37	1.78
Including	87.90	89.35	1.45	1.06	0.12	3	0.15	0.38
Including	89.35	90.70	1.35	0.99	0.95	2	0.40	1.58
Including	90.70	91.70	1.00	0.73	0.06	1	0.12	0.25
Including	91.70	92.70	1.00	0.73	0.14	1	0.05	0.22
Including	92.70	93.61	0.91	0.67	9.24	64	2.63	14.08
Including	93.61	94.18	0.57	0.42	10.18	26	0.11	10.68
Including	94.18	94.68	0.50	0.37	0.17	2	0.31	0.67
Including	94.68	95.00	0.32	0.23	0.42	16	3.05	5.29
KMDD0126	98.69	100.69	2.00	1.47	1.38	9	0.15	1.72
Including	98.69	99.80	1.11	0.81	1.12	10	0.07	1.35
Including	99.80	100.20	0.40	0.29	0.35	2	0.09	0.51
Including	100.20	100.69	0.49	0.36	2.79	12	0.40	3.55
KMDD0126	106.15	106.60	0.45	0.33	1.16	21	2.17	4.75

Note:
Gold Equivalent uses copper price of US$2.90/lb; silver price of US$16.5/oz and gold price of US$1,300/oz

Table 2 - Kainantu Gold Mine – Collar Locations for Kora Underground Diamond Drilling

Hole id	Collar Location			Collar Orientation		EOH Depth (m)	Lode
	Local North	Local East	mRL	Dip	Local Azimuth
KMDD0112	59005.87	29874.32	1188.05	-34.5	295.7	120.5	Kora North
KMDD0114	59005.58	29875.01	1191.65	45.9	296.7	103.7	Kora North
KMDD0116	59003.67	29873.51	1188.06	-38.6	269.3	113	Kora North
KMDD0118	59003.75	29874.22	1192.03	49.5	270.5	97.3	Kora North
KMDD0120	59001.47	29874.47	1188.06	-34.2	246.6	122	Kora North
KMDD0122	59000.82	29876.13	1188.19	-29.2	224.9	172.7	Kora North
KMDD0124	58900.45	29868.47	1192.21	29.5	229.6	113.1	Kora North
KMDD0126	58900.49	29868.53	1191.21	12.5	229.3	138.3	Kora North

The mineral resource estimate (shown in Table 3 and Table 4) for the Kora, Kora North and Irumafimpa deposits is based on the technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), and titled, “Independent Technical Report, Mineral Resources Estimate Update and Preliminary Economic Assessment of Kora North and Kora Gold Deposits, Kainantu Project, Papua New Guinea” with an effective date of September 30, 2018 (the “Technical Report”) prepared by Anthony Woodward BSc (Hons.), M.Sc., MAIG, Simon Tear BSc (Hons), EurGeol, PGeo IGI, EurGeol, Christopher Desoe BE (Min)(Hons), FAusIMM, RPEQ, MMICA, Lisa J. Park, BEng (Chem), GAICD, FAusIMM. Refer to the Company’s news release dated January 8, 2018 for a summary of the results of the PEA.

The Kora North resource estimate was defined after just twelve months of underground exploration drilling.

Table 3 - Kora North Mineral Resource Estimate

Global Mineral Resources Kora North Gold-Copper Mine - October 2018
Category	Tonnes	Gold		Silver		Copper		AuEq
	Mt	g/t	Mozs	g/t	Mozs	%	Mlbs	g/t	Mozs
Measured	0.15	18.7	0.09	8.9	0.04	0.5	1.6	19.6	0.09
Indicated	0.69	11.6	0.26	14.1	0.31	0.8	11.8	12.9	0.29
Total M & I	0.85	12.9	0.35	13.1	0.36	0.7	13.3	14.1	0.39
Inferred Total	1.92	10.7	0.66	13.3	0.82	0.7	29.5	11.9	0.74

M in table is millions. 

Key Assumptions and Parameters

Mineralization comprises two parallel, steeply west dipping, N-S striking quartz-sulphide vein systems, K1 & K2, within an encompassing dilatant structural zone hosted by phyllite.  An additional structure, the Kora Link, has also been defined and provides a possible link between the two main vein systems.

Underground drilling consists of diamond core for a range of core sizes depending on length of hole and expected ground conditions.  Sampling is sawn half core under geological control and generally ranges between 0.5m and 1m.  Underground face sampling is completed for every fired round and is to industry standard.

QAQC data indicated no significant issues with the accuracy of the on-site analysis.

Core recovery of the mineral zone was initially 90%, this has improved to >95%.  There is no relationship between core recovery and gold grade.

Geological logging is consistent and is based on a full set of logging codes covering lithology, alteration and mineralization.

The geological interpretation of the vein systems is represented as 3D wireframe solids snapped to a combination of diamond drillhole data and underground face sampling.  Definition of the wireframes is based on identified gold mineralisation in drillcore nominally at a 0.2g/t Au cut off in conjunction with geological control/sense and current mining widths.

Gold equivalent (AuEq) g/t was calculated using the formula Au g/t +(Cu% x 1.53) + Ag g/t x 0.0127. (No account of metal recoveries through the plant have been used in calculating the metal equivalent grade. However, production is currently achieving 93% metal recovery for both gold and copper and gold is currently providing 95% and copper 5% of the total revenue of the mine).

Gold price US$1,300/oz; silver US$16.5/oz; sopper US$2.90/lb.

Table 4 – Irumafimpa and Kora/Eutompi Resource Estimates           

Resource by Deposit and Category
Deposit	Resource Category	Tonnes	Gold		Silver		Copper		Gold Equivalent
		Mt	g/t	Moz	g/t	Moz	%	Mlb	g/t	Moz
Irumafimpa	Indicated	0.56	12.8	0.23	9	0.16	0.28	37	13.4	0.24
	Inferred	0.53	10.9	0.19	9	0.16	0.27	74	11.5	0.20
Kora/Eutompi	Inferred	4.36	7.3	1.02	35	4.9	2.23	215	11.2	1.57
Total Indicated		0.56	12.8	0.23	9	0.16	0.3	4.0	13.4	0.24
Total Inferred		4.89	7.7	1.21	32	5.06	2.0	288	11.2	1.76

Notes:

• M in table is millions. 
• Reported tonnage and grade figures are rounded from raw estimates to reflect the order of accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Gold equivalents are calculated as AuEq = Au g/t + Cu%*1.52+ Ag g/t*0.0141.

K92 Mine Geology Manager and Mine Exploration Manager, Mr. Andrew Kohler, PGeo, a qualified person under the meaning of NI 43-101, has reviewed and is responsible for the technical content of this news release. Data verification by Mr. Kohler includes significant time onsite reviewing drill core, face sampling, underground workings and discussing work programs and results with geology and mining personnel.

ON BEHALF OF THE COMPANY,

John Lewins, Chief Executive Officer and Director

for further information, please contact Investor Relations at +1-604-687-7130.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events, or developments that the Company believes, expects or anticipates will or may occur are forward-looking information, including statements regarding the realization of the preliminary economic analysis for the Project, expectations of future cash flows, the proposed plant expansion, potential expansion of resources and the generation of further drilling results which may or may not occur. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the market price of the Company’s securities, metal prices, exchange rates, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims and limitations on insurance coverage and other risks of the mining industry, changes in national and local government regulation of mining operations, and regulations and other matters.. 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.