Kapa Gold increases private placement to $3-million

• Financing Upsizing: Kapa Gold Inc. has increased its private placement from an initial target of CAD$2 million to a final target of up to CAD$3 million due to strong investor demand.
• Offering Terms: The offering consists of 20 million units priced at 15 cents each, comprising one common share and one transferable warrant per unit.
• Warrant Details: Warrants are exercisable at 25 cents for a period of 24 months from the closing date. An acceleration clause exists if the TSXV closing price equals or exceeds 30 cents for 20 consecutive trading days.
• Use of Proceeds: Funds will be directed toward the next drill program at the Blackhawk gold property in Lucerne Valley, California, and general working capital requirements.
• Insider Participation: Company insiders are subscribing to units under the private placement, signaling internal confidence.
• Closing Timeline: Expected closing is on or before June 28, 2026, subject to TSX Venture Exchange approval.

• Dilution Risk: The issuance of 20 million new shares at 15 cents represents significant dilution. Given the recent trading price hovered around 16-17 cents prior to this announcement, the offering is priced at a discount to the market, which typically exerts downward pressure on existing share value in the short term.
• Liquidity Extension: The upsizing from $2 million to $3 million provides an additional buffer of capital compared to the initial plan. This reduces immediate liquidity risk and allows for a more robust drill program than originally anticipated.
• Insider Alignment: Insider participation is a positive signal, indicating management believes the current valuation (15 cents) offers value or that they are committed to the project's success despite market conditions.
• Market Context: The financing occurs while the stock price has declined approximately 48% from its January 2026 high ($0.31) to the current level ($0.16). Raising capital at a low point is often necessary but confirms the company's need for external funding rather than organic cash flow generation.
• Routine Nature: Equity financings of this size are standard operational activities for junior exploration companies and do not fundamentally alter the asset base or project potential immediately, classifying it as routine rather than material in terms of fundamental value change.

• Company Name: Kapa Gold Inc.
• Flagship Project: Blackhawk gold property located in Lucerne Valley, California.
• Project Status: Development/Exploration phase requiring drilling (as per use of proceeds).
• Presentation Data Limitation: The provided investor presentation is dated May 2022 and lacks specific asset details, financial figures, or management names relevant to the current 2026 context. This creates a data gap regarding the project's technical status compared to the financing news.