Mr. David Paxton reports

KAPA GOLD ANNOUNCES CLARIFICATION ON WARRANT AMENDMENTS

Kapa Gold Inc. has provided further clarification to its news release dated Feb. 22, 2024, regarding the proposed amendments to 5,622,600 common share purchase warrants (the May, 2022, warrants).

In connection with the amendments, the May, 2022, warrants will include an accelerated expiry clause such that the exercise period of the May, 2022, warrants will be reduced to 30 days if, for any 10 consecutive trading days during the unexpired term of the May, 2022, warrants, the closing price of the common shares of the company is equal to or greater than 25 cents. The 30-day expiry period will commence no later than seven calendar days after the 10th consecutive trading day at which the closing price of the common shares of the company is equal to or greater than 25 cents.

The amendments remain subject to receipt of TSX Venture Exchange approval.

Mastodon property update

Additionally, after a lengthy evaluation of the available historic data and geologic modelling, the company has elected to terminate its option and earn-in agreement on the Mastodon nickel project located in Southern British Columbia, originally announced in February, 2023.

Kapa management had decided to focus its time and resources on its historic Blackhawk gold mine and surrounding areas, in Southern California, especially in light of the recent strengthening gold price and resurging precious metals market.

About Kapa Gold Inc.

Kapa Gold, led by experienced capital markets and geologic team, is focused on exploring its 100-per-cent-owned historic Blackhawk gold mine and surrounding underexplored properties for economic mineralization.

We seek Safe Harbor.