Mr. Alan Kwan reports

PEPCAP ANNOUNCES SHARES FOR DEBT TRANSACTION

Pepcap Resources Inc. has approved the settlement in the amount of $122,395 of debt through the issuance of common shares of the company. Pursuant to the debt settlement, the company would issue 815,966 common shares of the company at a deemed price of 15 cents per share.

The issuance of the shares is subject to the approval of the TSX Venture Exchange. All securities issued will be subject to a four-month hold period, which will expire on the date that is four months and one day from the date of issue.