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K92 Mining (TSX-V: KNT) President Brian Slusarchuk: Production Ramp Up at Irumafimpa and Exploration Program at High-Grade Extension of Kora Deposit

August 3, 2017

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President of K92 Mining (TSX-V: KNT)(OTC: KNTNF), Mr. Brian Slusarchuk. Brian, how are you?

Bryan Slusarchuk: Gerardo, doing really well today.

Gerardo Del Real: I imagine so. The stock is up 8% as I speak on very, very good news, both on the production front and on the exploration front. Without further ado, I'll let you take it away with the details, Brian. What can you share?

Bryan Slusarchuk: Sounds great, Gerardo. Today's a big day for K92. What we announced today was very important for a couple of different reasons. From day one, we've said that we wouldn't be able to focus, in a big way, on exploration until production was up, running well, running smoothly. Today we were able to announce that we've continued the production ramp up at Irumafimpa, that things are going well. We've moved from the lower grade development areas into the production stopes where higher gold and copper grades will be. Based on that, Gerardo, we're now able to look at unlocking the big blue sky here, which will be done through exploration. With production going well, we've now said that we'll start drilling over the next 15 days to follow up on that big exploration discovery that we recently made of the Kora deposit extension. So, big day for K92 with production going well, we're now kicking off a big exploration program, and that can really drive value.

Gerardo Del Real: Well, let's talk about that Kora extension discovery hole because it was very high-grade. Do you have a good handle on where to follow that up, Brian?

Bryan Slusarchuk: Absolutely. What's happening right now is that we're driving underground very close to where that discovery hole was made. So we'll be able to drill test around that discovery hole with relatively short, inexpensive holes because the drive will be right there in that area where the discovery was made. What we were able to announce today is based on this recent high-grade discovery, we slightly modified the Kora exploration drive. We are now incorporating the development of a foot wall drive approximately 50 meters from the projected strike of this Kora Vein System. This will allow us to drill approximately 100 meters closer to the interpreted position of that Kora Vein System versus what was previously planned.

The big focus here for K92 is production. The production restart, that's the key. Now that it's going well, we're able to unlock more value for shareholders via the commencement of this exploration drilling.

Gerardo Del Real: Wonderful. There's also mention of a 2,000 tonne bulk sample in the new release that could be mined as early as September this year. Could we talk a bit about that?

Bryan Slusarchuk: That's right. We've guided from day one that we would target production at Kora in the first half of 2018. We put out a very robust preliminary economic assessment with some great numbers, and we filed that on SEDAR and that relates to the Kora deposit. Now, what we're aiming to do because of this discovery is figure out just how much mineralization is around this discovery area, because it's quite close to Irumafimpa, it's quite close to the existing underground workings.  If this holds together, the idea is we could potentially bring Kora into production a whole lot sooner than anticipated, and that's what this bulk sample will assist us in deciding upon. In addition to providing set-ups for the exploration drilling, the development that I referred to earlier will allow this bulk sample to be mined as early as September, and that can be a big game-changing type event for the company because of the fact it's a potential start-up of Kora mineralization a lot sooner than anybody expected.

Gerardo Del Real: Great, great. Now, another part of the news release also mentions the fact that the company is planning an aerial geophysics program over all of the mining and exploration leases. Can you provide some details there, Brian?

Bryan Slusarchuk: Absolutely. Number one focus has been the production restart, that's occurred, that's going well. Number two has been the expansion program and exploration program between Irumafimpa and Kora, and then the third leg here is this big, regional upside. And remember, Barrick Gold, the world's largest gold mining company, didn't own this project for the production profile at Irumafimpa. That production profile can be wonderful for K92 as a small company. Barrick owned it for the big, world class exploration upside regionally. So as a starting point there, we'll fly this airborne survey and get some information about the multiple targets that have been identified, others that are likely yet to be identified, and that's part of the third leg, the big regional program. Again, number one focus, production restart, that's occurred, it's going well. Number two, expansion via Irumafimpa and Kora, that's about to kick off in the next 15 days. Then regionally, within this big 400 square kilometer land package, we'll start to look at advancing and unlocking value there as per today's news release.

Gerardo Del Real: Well, Brian, I must say, despite the summer doldrums, I think K92 could be a good model for many of the junior companies in the space as to how to take advantage of the summer doldrums and position the company in a way that can really benefit shareholders as we come into the seasonally stronger months of the year with September, October and November coming up. Congratulations to you and the team. I hope to have you back on as you issue further news releases as to the development of the project.

Bryan Slusarchuk: Absolutely, thanks, Gerardo. After a relatively quiet period where a lot's been going on on-site, I think you'll see a whole lot of news flow starting and today represents day one of that news flow. You'll see a lot more in the coming weeks.

Gerardo Del Real: Well, it's certainly fortuitous timing, so thanks again, Brian. I hope to have you back on within a couple of weeks as some more of that news slowly but surely trickles out.

Bryan Slusarchuk: Thank you. Thanks for having me on.

Gerardo Del Real: Thank you, Brian.

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