K92 Mining Responds to South Pacific Metals Corp. / Kainantu Resources Limited Claims Regarding Their Exploration Licence 2558

Executive Summary

• K92 Mining rejects allegations from South Pacific Metals Corp. (SPMC) and its subsidiary regarding exclusive rights to Exploration Licence 2558 in Papua New Guinea.
• The company confirms all activities on EL2558 have complied with PNG mining law, and it will not pursue a Lease for Mining Purposes (LMP) within the licence boundaries.
• K92 has selected an alternate Tailings Storage Facility (TSF) site that lies entirely within its own existing exploration licences; the new TSF is intended to support long‑term growth at Kora, Judd and Arakompa.

Key Details

• Legal Proceedings: SPMC initiated court action in PNG’s National Court seeking confirmation that its subsidiary Kainantu Resources Limited holds exclusive surface and subsurface rights to EL2558; an interim injunction has been in place since 15 Aug 2025.
• K92 Position:
• Categorically rejects all SPMC/KRL allegations.
• States all activities (water‑sample collection for baseline monitoring) were conducted with landowner access and under the Mining Act 1992.
• Clarifies that an exploration licence grants subsurface rights only; surface rights remain with custodial landowners.
• LMP Application: K92 has not applied for a Lease for Mining Purposes on EL2558 and, after confirming permissibility with the Mineral Resources Authority (MRA), decides not to pursue one.
• TSF Site Selection:
• Chosen alternate TSF site offers higher capacity and is wholly within K92’s existing exploration licences, several kilometres from EL2558.
• Current TSF can support the life‑of‑mine per the Updated Definitive Feasibility Study; a new TSF will be required in the longer term to accommodate projected resource growth at Kora, Judd and Arakompa.
• Regulator Evidence: PNG regulator filed evidence showing SPMC has not conducted drilling or reported discoveries on EL2558.
• Acquisition Interest: Prior to litigation, SPMC approached K92 about acquiring EL2558; K92 received no non‑public information and holds no interest in such an acquisition.
• Defamatory Publication: K92 identified a Substack article (“Can K92 expand without stealing?”) containing false statements; the author has a stock position in SPMC and ties to 45 Degrees, Inc. K92 is reviewing legal options for potential defamation.
• Commitment Statement: Reiterates dedication to responsible development of the Kainantu Gold Mine, compliance with PNG law, and ongoing stakeholder engagement.

Notable Quotes

“We remain 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.” – John Lewins, CEO & Director, K92 Mining Inc.

Materiality Assessment: Non‑Material – Neutral (the release provides important legal and operational context but does not disclose new financial results, resource estimates, or material transactions).