Mr. David Paxton reports

KAPA GOLD PROVIDES UPDATE ON RECENTLY COMPLETED ON-SITE VISIT AT BLACKHAWK PROPERTY

Kapa Gold Inc. has provided the following update on the geology and mineral deposit analysis on its polymetallic Blackhawk property, Lucerne Valley, Calif.

Multiple high-grade samples collected (as reported in the May 8, 2023, news release): gold: 75.1, 66.9 and 39.7 grams per tonne, silver: 3,680 and 2,360 g/t, copper: greater than 10 and 9.35 per cent, zinc: 24.2 per cent, and lead: 12.7 and greater than 10 per cent along a 3.5-kilometre contact zone at the Blackhawk property.

In July, 2023, Kapa completed a follow-up geological-mapping/mineral-deposit-analysis program that was focused on the Parton quarry area located near the eastern end of the Blackhawk property, Lucerne Valley, Calif. This program utilized results from two exploration programs: (1) a March, 2023, drone magnetic survey over the entire Blackhawk property and in particular the magnetic expression of the intrusive complex, herein termed Parton intrusive complex, that outcrops peripheral to and beneath the limestone-marble that formed the past-producing Parton limestone quarry; and (2) the October, 2022, mapping program that identified narrow silicified faults with elevated precious and base metal abundances: gold: 0.98 to 2.3 g/t, silver: 65.3 to greater than 100 g/t, copper: 0.79 per cent and lead: 0.84 per cent. These fault zones are located near the highest point in the southeastern area of the Parton quarry, which has not been disturbed during previous mining and subsequent mine rehabilitation. The weakly mineralized structures were interpreted as distal hydrothermal leakage zones related to a precious-base-metal skarn mineral deposit type.

The July, 2023, mapping program identified multiple, one- to two-metre-wide, silicified vein complexes with secondary copper minerals. These vein complexes are topographically below the above weakly mineralized silicified fault zones and record a deeper-level, proximal, more robust hydrothermal alteration related to skarn processes. These silicified vein networks are hosted in extensively hydrothermally altered and brecciated marble that is peripheral to the garnet plus pyroxene contact skarn. Additional samples have been submitted for assay.

The garnet plus pyroxene contact skarn located in the southeastern portion of the Parton quarry is identical to weakly mineralized garnet plus pyroxene contact skarn float found to the north of the Parton quarry in 2022. In addition, anomalous mineralization was identified along the western contact of the Parton intrusive complex: gold: 1.92 g/t, silver: 53.8 g/t, copper: 0.38 per cent, lead: 12 per cent and zinc: 5 per cent.

Sampling by Kapa has indicated that the margin of the Parton intrusive complex with the carbonate sequence is highly prospective for skarn-related precious and base metal mineralization. In particular, skarn domain along the eastern margin of the Parton intrusive complex, a distance of approximately 0.9 kilometre, is considered the highest-priority contact and will be the focus of future evaluation to define drill targets.

There are six high-grade, precious and base metal prospects, as well as the gold plus silver past-producing Santa Fe and Lookout deposits, distributed along approximately a 2.0-kilometre strike length westward from the identified precious- and base-metal-bearing skarn domain related to the Parton intrusive complex.

Collectively, these prospects and past producers display two significant attributes: (1) high-grade polymetallic signature gold, silver, copper, zinc and lead; and (2) dikes and sills associated with some of the prospects. These two features are interpreted as chimney-manto-type mineralization related to underlying, not exposed, intrusions, intrusions that are equated with the Parton intrusive complex and its related high-grade polymetallic skarn mineralization.

The Au-Ag-Pb-Zn-Cu skarn mineralization in the Parton quarry area and other prospects along the trend of the Blackhawk property is similar to skarn-manto deposits in the southwest United States-Canada-Mexico: including the Goundhog mine, New Mexico, Magno, D, Cassiar district, British Columbia, Silver Hart and Tintina silver, Yukon territory, Lucky Lake, Northwest Territories, Canada, and Naica district and San Martin, Mexico (the former is listed in reference to deposit type and not as a comparison with grade and tonnage).

Samples are taken from in situ exposed mineralization by Kapa's geological team. Samples were chiselled from outcrops except for the samples from the Boat prospect and were assayed by ALS Laboratories in Reno, Nev. In most cases, multiple samples were taken. The Boat samples, shown in the Boat prospect, were grab samples of float found at various elevations on the scree slope.

Road clearance permitting

An on-site meeting was held on July 3, 2023, with a member of the U.S. Forest Services Agency to identify sections of the access road that are required for clearing. Also present were members of Kapa's operation team and the contractor which will be undertaking the road clearance.

A separate meeting was held with Bureau of Land Management officials from both the San Bernadino office and the Barstow office, discussing the clearing of the access roads.

Kapa awaits the final deliberations from all three offices.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Dr. Allan Miller, PhD, PGeo, consultant and senior geologist of Kapa, a qualified person as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

About Kapa Gold Inc.

Kapa, led by an experienced capital market and geologic team, is focused on exploring its 100-per-cent-owned historic Blackhawk gold mine and surrounding underexplored properties for economic mineralization. Kapa has recently optioned the historic Mastodon project and is compiling historical data in advance of recommendations for exploration programs.

We seek Safe Harbor.