Mr. Richard King Jr. reports

PEPCAP ENTERS INTO A DUE DILIGENCE AGREEMENT

Pepcap Resources Inc. has entered into a due diligence agreement with Blockmetrix LLC, a limited liability company organized and existing under the laws of Texas, United States, primarily for the purpose of engaging in the business of mining bitcoin, a form of currency known as a cryptocurrency, and is also involved in the acquisition and buildout of infrastructure related to bitcoin mining for the purpose of hosting its bitcoin mining operations and providing bitcoin mining hosting to other bitcoin miners.

As a good faith incentive to complete the due diligence assessment of Blockmetrix by the company, Blockmetrix is providing a non-refundable deposit of $100,000 to the company, which non-refundable deposit is not convertible into securities of the company, whatsoever, or to be paid back by the company to Blockmetrix or its assignees.

Within 60 days following the completion of due diligence review of Blockmetrix and subject to satisfactory results to the company of the legal, financial and business affairs of the due diligence assessment of Blockmetrix, the company and Blockmetrix will, on a commercially reasonable effort basis, negotiate and enter into a definitive agreement outlining the terms and conditions of the proposed merger transaction.