KAPAGOLD ANNOUNCES UPSIZING PRIVATE PLACEMENT

Kapa Gold Inc. has announced the successful upsizing of its non-brokered private placement to CAD$3 million from the previously announced amount, reflecting strong investor confidence in the company's prospects. The financing consists of 20 million units priced at $0.15 per unit, with each unit comprising one common share and one warrant exercisable at $0.25 for 24 months. The warrant structure includes an acceleration clause if shares trade above $0.30 for 20 consecutive days.

The capital raise is specifically earmarked for advancing exploration at Kapa's 100% owned Blackhawk Gold property located in California's historic Blackhawk Mining District. This region has an established history of gold and silver production, providing a proven geological foundation for the company's exploration strategy. The company plans to announce detailed drill program specifics in upcoming communications, indicating imminent field activities.

The financing structure demonstrates institutional confidence in Kapa's asset base and management team, with insider participation further validating the investment opportunity. The accelerated warrant provision provides potential additional capital if the share price appreciates, creating a natural funding mechanism for continued development activities. For the junior exploration sector, this successful upsizing amid current market conditions signals selective investor appetite for quality gold projects in established mining jurisdictions.

The expected closing by June 28, 2026, subject to TSXV approval and standard conditions, positions Kapa to commence field operations during the optimal exploration season. This financing milestone represents a critical step in advancing the Blackhawk project toward resource definition and potential development, contributing to the broader North American gold exploration landscape.