Mr. Richard King reports

PEPCAP RESOURCES, INC., RECEIVES APPROVAL FOR MCTO

Pepcap Resources Inc. has received approval for its request for a management cease trade order (MCTO). The request was made as the company was not able to file its audited annual financial statement for the period ended Sept. 30, 2024, and its MD&A (management discussion and analysis) by the filing deadline of Jan. 28, 2025, and as a result is in default of its obligations under National Instrument 51-102, Continuous Disclosure Obligations.

The company has been granted approval from the British Columbia Securities Commission for the MCTO under National Policy 12-203, Management Cease Trade Orders. The company applied for an MCTO as the company had faced with some unexpected and extenuating circumstances that required additional time for the company's auditor to complete its audit of the annual financial statements within the time frame resulting in the company's failure to complete its annual filings on or before Jan. 28, 2025. The auditor has been paid, and, once the audit work is complete, the annual filings will be made.

The company expects to file the annual filings as soon as the auditor completes its audit of the financial statements but, in any event, on or before Feb. 15, 2025 (two-month period contemplated by NP 12-203).

Until the company files the annual filings, it will comply with the alternative information guidelines set out in NP 12-203. The guidelines, among other things, require the company to issue biweekly default status reports, in the form of news releases, for so long as the annual filings have not been filed.

The company wishes to reiterate that, during the MCTO, the general investing public will continue to be able to trade in the company's common shares listed on the TSX Venture Exchange. However, the company's chief executive officer and chief financial officer and such other directors, officers and persons as determined by the applicable regulatory authorities will not be able to trade in the company's shares, nor will the company be able to, directly or indirectly, issue securities to or acquire securities from an insider or employee of the company until such time as the annual filings and all continuous disclosure requirements have been filed by the company, and the MCTO has been lifted.