Kapa Gold closes first tranche of private placement

Vancouver, British Columbia--(Newsfile Corp. - July 3, 2026) - KAPA GOLD INC. (TSXV: KAPA) ( "Kapa" or the "Company" ) is pleased to announce that the Company has closed the first tranche of its previously announced non-brokered private placement (the " Private Placement " or " Offering ") by issuing 12,894,999 units (" Units ") at a price of $0.15 per Unit for total gross proceeds of approximately CAD$1,934,250. Each Unit is comprised of one common share of the Company (a " Share ") and one transferable common share purchase warrant (a " Warrant "). Each Warrant is exercisable to purchase an additional Share of the Company at an exercise price of $0.25 for a period of 24 months from the closing date (" Closing Date ").

Pursuant to the terms of the Warrants, the Company may accelerate the expiry date of the Warrants if the closing price of the Company's common shares on the TSX Venture Exchange (the " TSXV ") equals or exceeds $0.30 for a period of 20 consecutive trading days (the " Acceleration Period ") to the date which is 30 days following the dissemination of a news release announcing the Acceleration Period . The proceeds from the Offering will be used for the Company's next drill program at its 100% owned Blackhawk Gold property, Lucerne Valley, California and general working capital requirements. Details of the drill program will be announced in a future press release to follow soon.

All securities issued in connection with the Private Placement will be subject to a statutory hold period of 4 months plus a day from the Closing Date in accordance with applicable securities legislation. In connection with the Offering, Kapa paid aggregate finders fees of CAD$39,855 in cash and issued 265,700 finder warrants to Canaccord Genuity Corp., Haywood Securities Inc., Research Capital Corp. and Ventum Financial Inc. The Company expects to close the next tranche closing of the Offering on or before July 17, 2026. About Blackhawk Gold Project Blackhawk Gold Project is located in the historic Blackhawk Mining District in California, a region renowned for its gold and silver production.

The mine has a long history of precious metal extraction, with several high-potential exploration targets identified. Kapa Gold is focusing on establishing a resource and developing a sustainable extraction strategy using modern techniques. About Kapa Gold Kapa Gold Inc. is a Canadian exploration company focused on advancing its portfolio of high-potential gold projects in North America.

The Company's flagship project, the Blackhawk Gold Property, aims to deliver significant shareholder value through strategic exploration and development initiatives. Kapa Gold is dedicated to responsible mining, sustainable growth, and contributing positively to the communities in which it operates. To learn more, visit www.kapagold.com On behalf of the Board of Directors KAPA GOLD INC. "David K. Paxton" CEO and Director For More Information Contact: Konstantine Tsakumis kon@kapagold.com 604-961-9442 THIS PRESS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.