KAPAGOLD ANNOUNCES PRIVATE PLACEMENT

Kapa Gold Inc. has announced a non-brokered private placement offering to raise up to CAD$2 million in gross proceeds, representing a significant financing milestone for the Canadian exploration company. The offering consists of 13,333,333 units priced at CAD$0.15 per unit, with each unit comprising one common share and one warrant exercisable at CAD$0.25 for 24 months following closing.

The financing structure includes an acceleration provision allowing the company to shorten the warrant expiry period if shares trade at or above CAD$0.30 for 20 consecutive days. This mechanism provides potential upside for warrant holders while giving the company flexibility to accelerate capital raising if share performance warrants. The participation of company insiders in the placement demonstrates management confidence in the project's prospects.

Proceeds will primarily fund the next drill program at Kapa's flagship Blackhawk Gold Property, a 100% owned asset located in California's historic Blackhawk Mining District. This region has an established track record of gold and silver production, providing geological validation for the company's exploration strategy. The timing of this financing positions Kapa to advance exploration activities using modern techniques to potentially establish a resource estimate.

The successful completion of this financing, subject to TSXV approval, will provide Kapa Gold with the capital necessary to advance its exploration objectives while maintaining focus on responsible mining practices. For the broader junior mining sector, this transaction reflects continued investor interest in North American gold projects, particularly those with historical production precedent and established infrastructure access.