PRELIMINARY ECONOMIC ASSESSMENT

LONG VALLEY
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OUNCES OF GOLD PER YEAR

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HIGH IRR

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LOW INITIAL CAPEX (US)

LONG VALLEY GOLD PROJECT

Preliminary Economic Assessment

KORE is pleased to announce a positive Preliminary Economic Assessment (“PEA”) for the Company’s 100% owned Long Valley Gold Deposit (“Long Valley” or “Project”), located in California, USA. The PEA demonstrates Long Valley’s potential to produce gold at low capital and operating costs. Long Valley has clear upside potential from targets on-strike and lateral to the current modelled oxide mineralization and intends to aggressively explore this untapped potential.

PEA HIGHLIGHTS

Economics Pre-Tax Post-Tax
Net present value (NPV 5%) US$ millions 347 273
Net present value (NPV 5%) at C$0.75/US$1.00 C$ millions 463 364
Internal rate of return (IRR) % 57% 48%
Payback (undiscounted) years 1.6 1.8
LOM average annual cash flow * US$ millions 96 83
LOM cumulative cash flow * US$ millions 475 385
Cumulative cash flow (undiscounted) US$ millions 433 343
Gold price assumption US$ per ounce 1600.00
Mine life years 7
Average annual mining rate million stpa 18.5
Average annual gold production oz/yr 102,000
Total LOM recovered gold thousand ounces 717
Recovery (LOM) % 68%
Initial capital costs US$ millions 161

Unless otherwise stated, all dollar figures are in United States dollars (“$”) and masses are in short tons. Life-of-mine (“LOM”) calculation and “Mine Life” is defined as the duration of mining operations, 7 years.  There are additional years of site work for residual leaching, washing, back-filling and reclamation modelled.

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CONTIGUOUS UNPATENTED CLAIMS

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

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MINE LIFE

PEA HIGHLIGHTS

Gold Price Sensitivities

The following table demonstrates the post-tax sensitivities of NPV and IRR to gold price per ounce to the PEA. The base case, highlighted in the table below, assumes US$1,600 per ounce of gold:

Economic Sensitivities to Gold Price (post tax)
Per ounce gold price (US$) NPV (5%), US$ millions IRR%
$1,200 97 25%
$1,400 187 38%
$1,600, base case 273 48%
$1,800 352 58%
$2,000 438 67%
$2,200 524 76%

With regards to technical matters for the Long Valley 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 Long Valley PEA, is consistent with that provided by the Qualified Persons responsible for the PEA.

MESSAGE FROM THE CEO OF KORE

LONG VALLEY PEA HIGHLIGHTS VIDEO

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