PRELIMINARY ECONOMIC ASSESSMENT

IMPERIAL
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OUNCES OF GOLD PER YEAR

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HIGH IRR

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LOW INITIAL CAPEX (US)

IMPERIAL GOLD PROJECT

Preliminary Economic Assessment

KORE is pleased to announce a positive Preliminary Economic Assessment (“PEA”) for the Company’s 100% owned Imperial Oxide Gold Deposit (“Imperial”), located in California, USA. The PEA demonstrates Imperial’s potential to be a mid-tier gold mine with positive project economics.  In addition to the gold price, Imperial has upside potential from deposit extensions and exploration on the 100% owned Mesquite-Imperial-Picacho District which captures 28 kilometers of strike from the operating Mesquite mine to the historic Picacho heap leach mine.

PEA HIGHLIGHTS

(Expressed in Canadian dollars unless otherwise stated)

Economics Pre-Tax Post-Tax
Net present value (NPV5%) at 0.75C$/US$ C$ millions $584 $458
Net present value (NPV 5%) US$ millions $438 $343
Internal rate of return (IRR) % 52% 44%
Payback (undiscounted) years 2.3 2.7
LOM avg. annual cash flow after tax & capital US$ millions $105 $90
LOM cumulative cash flow (undiscounted) US$ millions $697 $580
Gold price assumption per ounce $1,450
Mine life years 8
Average annual mining rate million tons/yr 43.4
Average annual gold production thousand ounces/yr 146
Total LOM recovered gold million ounces 1.17
Initial capital costs US$ millions $143

Life-of-mine (“LOM”) calculation and “Mine Life” is defined as the duration of mining operations, 8 years.  There are additional years of site work for residual leaching, washing, back-filling and reclamation modelled.

KORE does not consider the historic production or economic realization of Picacho or Mesquite as indicative of mineralization at Imperial or the economics of any such mineralization.

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UNPATENTED CLAIMS

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NPV 5% @ $1,600/oz AU (US)

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MINE LIFE

The following table demonstrates the post-tax sensitivities of NPV and IRR to gold price per ounce. The base case, highlighted in the table below, assumes US$1,450 per ounce of gold:

Economic Sensitivities to Gold Prices (post-tax)
Per ounce of gold NPV (5%) millions IRR%
$1,300 US$234 34%
$1,450 US$343 44%
$1,600 US$450 52%
$1,800 US$590 64%
$2,000 US$729 75%

For more information please see April 6, 2020 news release.

With regards to technical matters for the Imperial PEA, Marc Leduc, P.Eng. is the Qualified Person within the meaning of NI 43-101 and has reviewed and validated that the information in this webpage with respect to the Imperial PEA, is consistent with that provided by the Qualified Persons responsible for the PEA.

MESSAGE FROM THE CEO OF KORE

IMPERIAL PEA HIGHLIGHTS VIDEO

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