Mr. Richard King Jr. reports

PEPCAP ADOPTS OMNIBUS SHARE INCENTIVE PLAN

Pepcap Resources Inc. has adopted an omnibus share incentive plan, which was approved by the shareholders of the company at its annual general meeting held on Dec. 18, 2025.

A summary of the key terms of the omnibus plan is included in the company's management information circular prepared in connection with the 2025 annual general meeting, which has been filed and is available on SEDAR+.

The omnibus plan is intended to provide the company with flexibility to grant equity-based compensation in order to attract, retain and motivate directors, officers, employees and consultants, and to better align their interests with those of shareholders.

The company further notes that, while its common shares are listed on the NEX board of the TSX Venture Exchange, only stock options may be granted under the omnibus plan for so long as the company maintains its NEX listing. Any such grants must also comply with the restrictions set out in Section 7 of the TSX Venture Exchange NEX policies.