KATANGA MINING PROVIDES UPDATE ON MAJOR PROJECTS, ANNOUNCES 2018 FOURTH QUARTER AND YEAR END PRODUCTION RESULTS

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1 No. 2/2019 News release KATANGA MINING PROVIDES UPDATE ON MAJOR PROJECTS, ANNOUNCES FOURTH QUARTER AND YEAR END PRODUCTION RESULTS ZUG, SWITZERLAND, January 31, 2019 Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today provides an update on its major projects and announces its fourth quarter and year-end production results. Major projects update Q4 WOL Project Update During Q4, the final components of Phase 2 of the whole-ore leach project ( WOL Project ), being the remaining counter-current decantation ( CCD ) circuit and the electro-winning tankhouse ( EW ) were commissioned. The WOL Project includes the construction of copper and cobalt circuits intended to reliably produce up to 300,000tpa of copper cathode over the life of the mine. This is achieved by adding leach capacity at Luilu in order to leach run-of-mine oxide ore directly rather than concentrating the oxide ore at KTC. Notwithstanding this target capacity, production in any given year will fluctuate as a function of numerous factors, including availability and utilization of the plant, geological and mining conditions, logistics, availability of reagents, availability of electricity, macro-economic factors such as commodity prices, input costs and geopolitical developments (including with respect to the new DRC Mining Code). Q4 Cobalt Projects Update The cobalt debottlenecking project is progressing on schedule. The three new filter presses, an MgO reagent plant within the existing cobalt circuit and the construction of two cobalt hydroxide dryers are scheduled for completion and commissioning during Q The objective of the cobalt project is to upgrade the existing cobalt plant design to reduce the bottlenecks and align the life-of-mine cobalt production plan of 30,000tpa on average and 40,000tpa maximum capacity. This is accomplished by modifications to the precipitation, thickening, filtration, drying and bagging processes. Notwithstanding this target capacity, production in any given year will fluctuate as a function of numerous factors, including availability and utilization of the plant, geological and mining conditions, logistics, availability of reagents, availability of electricity, macro-economic factors such as commodity prices, input costs and geopolitical developments (including with respect to the new DRC Mining Code). Q4 Acid Plant Update The Acid Plant is a sulphuric acid and sulphur dioxide production plant at KCC, (the Acid Plant ), which is intended to improve the reliability of the supply of these reagents to the WOL Project processing circuits. In addition to a continuation of detailed design work on the Acid Plant, earthworks 1

2 were completed, civil works are progressing and orders for long lead items continue to arrive on site. Commissioning of the Acid Plant is expected to commence in Q Production highlights during the three months and year ended December 31,, and outlook Copper and Cobalt Production Copper cathode production increased to 49,770 tonnes in Q4 from 39,296 tonnes in Q3. Copper cathode production increased to 152,358 tonnes in from 2,196 tonnes in Cobalt contained in hydroxide produced increased to 4,646 tonnes in Q4 from 3,512 tonnes in Q3. Cobalt contained in hydroxide produced increased to 11,112 tonnes in from nil tonnes in The increase in copper cathode and cobalt contained in hydroxide produced in both periods is related to the ongoing ramp-up of production and the commissioning and re-commissioning of related assets. The export of cobalt hydroxide by KCC remains suspended. As previously announced, the current situation relates to the levels of uranium contained in cobalt hydroxide produced by KCC. The low levels of radioactivity detected in the uranium to date do not present a health and safety risk. While the Company is working with its partner Gécamines on a long-term technical solution in the form of constructing an ion exchange plant, and a feasibility study including the design of such plant is being completed, the Company has been working on various alternative interim solutions, both operational and regulatory, to recommence exports. On January 30, 2019, the Company s 75% operating subsidiary Kamoto Copper Company ( KCC ) received a letter from the DRC Minister of Mines following the inspection conducted by the DRC Government in Q4. The Minister of Mines raised certain concerns with the technical solutions identified by KCC and requested that KCC suspend the project to build an ion exchange plant until further notice. KCC intends to engage with the Ministry of Mines to understand and address their concerns. Subject to (i) obtaining the necessary authorizations for the ion exchange plant and (ii) the completion of a feasibility study including the detailed engineering design of such plant, the commissioning of the ion exchange plant is expected to commence in Q Annual cobalt production guidance for FY2019 remains unchanged at 26kt [1], however sales of the FY2019 cobalt production are now expected mostly to be recognized in FY2020. [1] Annual cobalt production guidance subject to +/- 2kt variation 2

3 Mining Ore mined*/** Three months ended Twelve months ended Sep 30, KOV open pit tonnes 1,465,641 2,343, ,169 6,479, ,169 Mashamba East open pit tonnes 851, ,909-3,318,476 - Total open pits tonnes 2,317,609 3,297, ,169 9,798, ,169 KTO underground tonnes 154, , ,680 - Total ore mined tonnes 2,471,631 3,439, ,169 10,167, ,169 Waste mined and primary development* KOV open pit tonnes 8,057,522 8,369,083 7,045,278 29,757,641 31,571,164 Mashamba East open pit tonnes 5,777,914 6,996,303 4,147,881 21,224,044 13,710,246 Total open pits tonnes 13,835,436 15,365,386 11,193,159 50,981,685 45,281,410 KTO underground primary development meters ,127 - Total waste mined*** tonnes 13,835,436 15,365,386 11,193,159 50,981,685 45,281,410 Total material mined KOV open pit tonnes 9,523,163 10,712,868 7,478,447 36,237,212 32,004,333 Mashamba East open pit tonnes 6,629,882 7,950,212 4,147,881 24,542,520 13,710,246 Total open pits tonnes 16,153,045 18,663,080 11,626,328 60,779,732 45,714,579 KTO underground tonnes 154, , ,680 Total material mined*** tonnes 16,307,067 18,805,053 11,626,328 61,149,412 45,714,579 Total contained copper tonnes 61,393 69,643 9, ,147 9,459 Ore summary Total primary ore mined tonnes 1,648,105 1,655, ,947 5,322, ,947 Average Cu grade % Average Co grade % Total low-grade ore mined tonnes 616, ,380 85,875 2,299,703 85,875 Average Cu grade % Average Co grade % Total cobalt ore mined tonnes 207, ,682 55,347 2,545,530 55,347 Average Co grade % Average Cu grade % Total ore mined tonnes 2,471,631 3,439, ,169 10,167, ,169 Average Cu grade % Average Co grade % * These segments include classification of ore volumes into different categories, being primary copper containing ore, low-grade copper containing ore (but still above cut-off grade) and cobalt containing ore (that contains copper under the copper cut-off grade but cobalt over the cobalt cut-off grade). The primary ore component is defined as having a Cu grade of greater than 1.25%, the low grade component is defined as having a Cu grade between 0.65% and 1.25% and the cobalt ore component is defined as having a Cu grade of less than 0.65% and Co grade greater than 0.30%. ** Excludes any ore hydro-mined out of Kamoto Interim Tailings Dam (KITD) as this is not a traditional mining operation, but instead, a hydro-mining reclamation project. ***Underground waste is excluded. Rounding of tonnes and grades may result in apparent summation differences between tonnes, grades and contained metal content. Total ore mined decreased to 2,471,632 tonnes in Q4 from 3,439,667 tonnes in Q3. Total ore mined increased to 10,167,727 tonnes in from 433,169 tonnes in

4 Total waste mined decreased to 13,835,436 tonnes in Q4 from 15,365,386 tonnes in Q3. Total waste mined increased to 50,981,685 tonnes in from 45,281,410 tonnes in Total contained copper decreased to 61,393 tonnes in Q4 from 69,643 tonnes in Q3. Total contained copper increased to 218,147 tonnes in from 9,459 tonnes in The decrease in total material mined in the combined open pits in Q4 compared to Q3 reflects the commencement of the rainy season. The increase in total material mined in the KTO underground in Q4 compared to Q3 relates to the increase in secondary development as well as the continuation of primary development. KTO underground productivity has been supported by the re-commissioning in Q4 of: one Atlas Copco ST1030 loader for increased underground loading capacity; and one Atlas Copco 282 boomer for development. The decrease in total contained copper in Q4 compared to Q3 is driven by the decrease in total ore mined, offset by a higher average copper grade, in line with the optimized mine plan. The ongoing mining and stockpiling of very low-grade ore and cobalt ore reflects the optimization of the long-term feed strategy. As a result of this strategy, low-grade ore, below budgeted feed grades and cobalt ore are currently being stockpiled for future feed into the processing plant. 4

5 Kamoto concentrator ("KTC") Three months ended Sep 30, 2017 Twelve months ended 2017 Total material milled and processed tonnes 2,482,663 1,944, ,829 7,529,596 1,922,101 KITD material processed tonnes 726, , ,618 2,483,170 1,758,890 Cu grade in ore % Co grade in ore % Open pit ore milled tonnes 1,600,911 1,178, ,211 4,703, ,211 Cu grade in ore % Co grade in ore % Underground ore milled tonnes 155, , ,406 - Cu grade in ore % Co grade in ore % Production Oxide concentrate tonnes 35,752 21,621 22, ,094 65,383 Sulphide concentrate tonnes 30,026 27,501 10,270 98,488 30,432 Total concentrate produced tonnes 65,778 49,122 32, ,582 95,815 Cu grade in concentrate % Co grade in concentrate % Oxide feed received at Luilu tonnes 1,602,666 1,195, ,471 4,666, ,471 Cu grade in oxide feed % Total contained copper tonnes 59,527 47,660 10, ,570 20,340 Rounding of tonnes and grades may result in apparent summation differences between tonnes, grades and contained metal content. Total material milled and processed increased to 2,482,663 tonnes in Q4 from 1,944,616 tonnes in Q3. Total material milled and processed increased to 7,529,596 tonnes in from 1,922,101 tonnes in Total concentrate produced increased to 65,778 tonnes in Q4 from 49,122 tonnes in Q3. Total concentrate produced increased to 205,582 tonnes in from 95,815 tonnes in Total oxide feed received at Luilu increased to 1,602,666 tonnes in Q4 from 1,195,149 tonnes in Q3. Total oxide feed received at Luilu increased to 4,666,773 tonnes in from 126,471 tonnes in Total contained copper in concentrate and oxide feed produced increased to 59,527 tonnes in Q4 from 47,660 tonnes in Q3. Total contained copper in concentrate and oxide feed received at Luilu increased to 182,570 tonnes in from 20,340 tonnes in The increase in total material milled and processed in Q4 compared to Q3 is driven by the increase in milling capacity from the commissioning of CM6 and CM7. The increase in total material milled and processed in compared to 2017 reflects the resumption of production in December 5

6 2017 following the completion of Phase 1 of the WOL Project. Processing activities were largely suspended during the comparative periods in The increase in total material milled and processed, concentrate produced, oxide feed received at Luilu and total contained copper in compared to 2017 has been achieved by the optimization and rampup of the current milling capacity in line with the WOL Project commissioning plan. 6

7 Luilu metallurgical plant Three months ended Sep 30, 2017 Twelve months ended 2017 WOL feed oxide concentrate* tonnes 35,752 22,096 13, ,317 13,755 WOL feed oxide feed tonnes 1,602,666 1,195, ,471 4,666, ,471 Total oxide feed tonnes 1,638,418 1,217, ,226 4,865, ,226 Total oxide Cu grade % Total oxide Co grade % Sulphide roaster feed tonnes 25,588 26,688-58,099 - Sulphide Cu grade % Sulphide Co grade % Production Copper cathode tonnes 49,770 39,296 2, ,358 2,196 Cobalt contained in hydroxide tonnes 4,646 3,512-11,112 - *consists of amounts produced at KTC during previous periods plus inventory drawdown. Rounding of tonnes and grades may result in apparent summation differences between tonnes, grades and contained metal content. Total copper cathode produced increased to 49,770 tonnes in Q4 from 39,296 tonnes in Q3. Total copper cathode produced increased to 152,358 tonnes in from 2,196 tonnes in Total cobalt contained in hydroxide increased to 4,646 tonnes in Q4 from 3,512 tonnes in Q3. Total cobalt contained in hydroxide increased to 11,112 tonnes in from nil tonnes in The increase in copper cathode and cobalt contained in hydroxide produced in Q4 compared to Q3 is driven by the increase in total oxide feed, which has been supported by the commissioning of additional electro-winning capacity. The increase in copper cathode and cobalt contained in hydroxide produced in compared to 2017 reflects the resumption of production in December 2017 following the completion of Phase 1 of the WOL Project. Processing activities were largely suspended during the comparative periods in The increases in compared to 2017 have been achieved by: commissioning of the second train of the WOL Project and both CCD circuits; commissioning of the second high-grade solvent extraction train and the low-grade circuit, the cobalt purification plant and the associated utility plants; re-commissioning of the sulphide receiving circuit which consists of thickeners and receiving tanks, roaster 5 and its associated auxiliary equipment; increasing total sulphide feed to be roasted and leached in line with the ramp-up of operations for Phase 2 of the WOL Project commissioning plan; re-commissioning of EW 2 and EW 3; and completion and commissioning of EW 4. 7

8 Outlook 2019 full year production guidance is 285kt of copper cathode and 26kt of cobalt contained in hydroxide. Qualified Person Tahir Usmani, PEng, APEGA, Chief Mine Planning Engineer of KCC, has reviewed and approved the scientific and technical disclosure in this news release. Mr. Usmani is a "qualified person" for the purposes of NI Standards of Disclosure for Mineral Projects. For further information contact: Longview Communications Inc. Joel Shaffer (Toronto) (416) Alan Bayless (Vancouver) (604) About Katanga Mining Limited Katanga Mining Limited operates a major mine complex in the Democratic Republic of Congo producing refined copper and cobalt. The Company has the potential to become Africa's largest copper producer and the world's largest cobalt producer. Katanga is listed on the Toronto Stock Exchange under the symbol KAT. Forward Looking Statements This press release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. This press release may contain forward-looking statements. Often, but not always, forwardlooking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forwardlooking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: the operations of the Company during the ramp up of production following the commissioning of the Whole Ore Leach ( WOL ) Project remaining consistent with management s expectations, there being no significant disruptions affecting the operations of the Company whether due to labour disruptions, supply disruptions, power disruptions, rollout of new equipment, damage to equipment or otherwise; permitting, development, operations, expansion and acquisitions at KCC being consistent with the Company's current expectations; continued recognition of the Company s mining concessions and other assets, rights, titles and interests in the DRC; political and legal developments in the DRC being consistent with its current expectations; the continued provision or procurement of additional funding from Glencore for operations; the completion of the T17 Underground Mine and the Power Project (as defined in the Annual Information Form of the Company for the year ended December 31, 2017 dated April 2, ); that new equipment performs to expectations; the exchange rate between the US dollar, South African rand, British pound, Canadian dollar, Swiss franc, Congolese franc and Euro being approximately consistent with current levels; certain price assumptions for copper and cobalt; prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; production and cost of sales forecasts for the Company meeting expectations; the accuracy of the current ore reserve and mineral resource estimates of the Company (including but not limited to ore tonnage and ore grade estimates); and labour and material costs increasing on a basis consistent with the Company's current expectations. 8

9 Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of copper and cobalt; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, development or construction activities, delays due to strikes or other work stoppage, both internal and external to the Company as well as those factors disclosed in the Company's the Annual Information Form for the year ended December 31, 2017 dated April 2, and other publicly filed documents. Although Katanga has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forwardlooking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws. 9