Mr. Jonathan Richards reports

KING COPPER DISCOVERY CORP. ANNOUNCES CLOSING OF $15 MILLION FINANCING

King Copper Discovery Corp. has closed its previously announced non-brokered private placement offering for aggregate gross proceeds of approximately $15-million from the issuance of 65,217,390 common shares in the capital of the company at a price of 23 cents per share.

The net proceeds of the financing will be used to advance exploration, including diamond drilling of the company's flagship Colquemayo copper-gold project, and for working capital purposes.

A strategic investor participated in the financing and holds approximately 9.99-per-cent ownership interest in King Copper on an undiluted basis. King Copper and the investor entered into an investor rights agreement, whereby the investor was granted certain rights, subject to the investor maintaining certain ownership thresholds in the company, including: (i) the right to participate in future equity financings and top up its holdings in the event of dilutive issuances in order to maintain its pro rata ownership in the company at the time of such financing or to acquire up to a 9.99-per-cent ownership interest, on a partially diluted basis, in the company; and (ii) the right (which the investor has no present intention of exercising) to nominate one person (and in the case of an increase in the size of the board of directors to eight or more directors, two persons) to the board of directors of King Copper.

The subscribers in the financing included a director as well as one corporate subscriber controlled by an officer of the company (collectively, the insiders), who subscribed for an aggregate of 300,000 shares for aggregate gross proceeds of $69,000 to the company. The issuances of shares to the insiders constitute related party transactions as defined in Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on the exemption from valuation requirement and minority approval pursuant to subsections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, for the insiders participation in the financing, as the value of the shares subscribed for do not represent more than 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101.

All securities issued in connection with closing of the financing are subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation, expiring on Jan. 16, 2026.

In connection with closing of the financing, the company paid $111,141 to certain eligible arm's-length finders. The private placement is subject to the final approval of the TSX Venture Exchange.

Eventus Capital Corp. acted as an adviser to King Copper.

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