Mr. John Lewins reports

K92 MINING RESPONDS TO SOUTH PACIFIC METALS CORP. / KAINANTU RESOURCES LIMITED CLAIMS REGARDING THEIR EXPLORATION LICENCE 2558

K92 Mining Inc. has responded to recent legal correspondence and press releases from South Pacific Metals Corp. and its subsidiary, Kainantu Resources Ltd. (KRL), regarding exploration licence 2558 (EL 2558) in Papua New Guinea. South Pacific Metals initiated proceedings in the National Court of Papua New Guinea against both K92 Mining and the Mineral Resources Authority (MRA) seeking confirmation that KRL is the exclusive holder of EL 2558 and that it alone holds surface and subsurface mineral exploration rights within the licence boundaries. An interim injunction has been in place since Aug. 15, 2025.

K92 categorically rejects all allegations made by South Pacific Metals and KRL against K92 in connection with such proceedings.

Activities compliant with Papua New Guinea law

All activities conducted by K92 within EL 2558 have been fully compliant with Papua New Guinea's Mining Act 1992 and associated legislation. K92's activities have consisted of collecting water samples for baseline environmental monitoring, as recommended by the Conservation and Environment Protection Authority (CEPA). These activities were carried out with proper landowner access and are permitted under the mining act.

Furthermore, an exploration licence grants subsurface mineral rights, not ownership of the surface. Surface rights remain vested with the custodial landowners. The mining act explicitly permits the granting of a lease for mining purposes (LMP) for surface infrastructure development, including over land subject to a third party exploration licence, provided sterilization drilling is completed. K92 has not submitted an application for an LMP on EL 2558 but has confirmed with the MRA (regulator) that such applications are permissible under the current legislation.

Significantly larger TSF (tailings storage facility) site selected well within K92's own exploration licences

K92 has formally notified the board of directors of South Pacific Metals that one of the multiple alternative site options for the tailings storage facility has been selected, in part due to a higher capacity potential. This option, like the majority of other options, is totally within K92's existing exploration licences. K92 has no interest in purchasing EL 2558 or any other South Pacific Metals licence as they are of no strategic or commercial interest. Therefore, despite being fully entitled under New Guinea law to do so, it no longer intends to apply for an LMP within the boundaries of EL 2558. The determination in trial as to whether South Pacific Metals has exclusive right to an LMP over EL 2558 has no practical implication on K92's short-, medium- or long-term operations or growth strategies.

The future need for increased long-term TSF capacity is primarily driven by expected continued high-potential resource growth at Kora, Judd and Arakompa and several near-mine targets. The company's operation is located in the expansive Markham Valley, which offers multiple alternative TSF sites, located entirely within K92's existing exploration licences and several kilometres from the EL 2558 boundary.

The company reiterates that K92's current TSF has sufficient capacity to support the full life of mine outlined in the updated definitive feasibility study, although the construction of a new TSF will be required in the long term.

Evidence filed by the regulator

The regulator has also filed evidence confirming that South Pacific Metals has not conducted any drilling or reported any discoveries on EL 2558. Prior to initiating legal proceedings against K92, South Pacific Metals approached K92 regarding acquiring EL 2558 but did not provide K92 with any non-public information, and K92 has indicated that it had no interest in pursuing such an acquisition.

False and misleading article

K92 Mining has also become aware of an article recently published on Substack under Penny Queen's Newsletter titled, "Can K92 expand without stealing?" which contains false and misleading information about the company.

K92 understands that the author of the article owns stock in South Pacific Metals and that a related company, 45 Degrees Inc., has a business relationship with South Pacific Metals, having been retained to provide advertising services in consideration of incentive stock options of South Pacific Metals.

K92 considers the article to be potentially defamatory, misleading to investors and possibly in contravention of applicable securities regulatory policies. The company is actively reviewing its legal options and intends to pursue all available remedies against both the author and South Pacific Metals to protect its reputation and its shareholders.

Commitment to responsible development

K92 remains committed to advancing the Kainantu gold mine in a transparent and socially responsible manner, with full respect for Papua New Guinea's laws and in close consultation with government, landowners and other stakeholders.

About K92 Mining Inc.

K92 Mining 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 continuing 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.

We seek Safe Harbor.