KAPA Gold Reports Delay in Filing Audited 2022 Annual Financial Statements for the Predecessor Entity KAPA Capital Ltd.

VANCOUVER, BC – September 02, 2022 – KAPA GOLD INC. (TSXV:KAPA) (“Kapa Gold” or the “Company”) a gold exploration and development company reports that the Company has not yet been able to complete the audit of the predecessor entity Kapa Capital’s annual financial statements for the financial year ended April 30, 2022 and the associated management discussion and analysis (the “Documents”), which Documents were due to be filed on August 29, 2022.

The delay in filing the Documents is due to the Company and its auditors requiring additional time to complete their preparation and audit of the annual financial statements for the financial year ended April 30, 2022, due to the timing of the Qualifying Transaction with Quantus Resources Corp (“Quantus”) (as defined below) on May 19, 2022. Accordingly, the Company informed the British Columbia Securities Commission (the “BCSC”) of its anticipated delay in filing the documents and applied for a management cease trade order (“MCTO”) from the BCSC pursuant to National Policy 12- 203 – Management Cease Trade Orders, pending the filing of the Documents, which MCTO would prohibit the Company’s management from trading in the securities of the Company until such time as the Documents are filed. As a result of certain minimal trading volume thresholds not being met since the Qualifying Transaction with Quantus, the BCSC did not grant the MCTO to the Company.

Kapa Gold anticipates that the BCSC will issue a cease trade order (“CTO”) against the Company effective on September 5, 2022 and that the shares will be halted for trading on the TSX Venture Exchange at the same time. The CTO will be in place until the Company has filed the Documents. Kapa Gold is working diligently and expeditiously with its auditors and expects to file the Documents during the week of September 19, 2022.

On May 19, 2022, Quantus completed a Qualifying Transaction, pursuant to TSX Venture Exchange Policy 2.4 - Capital Pool Companies, whereby Kapa Capital acquired 100% of Quantus’ outstanding common shares by issuing to each shareholder of Quantus one common share of the Company for one common share of Quantus. The name of the Company was changed to Kapa Gold Ltd and the year end has been amended to December 31st.

About Kapa

Kapa Gold, led by experienced capital markets and geologic team, is focused on exploring its 100% owned historic Blackhawk Gold Mine and surrounding underexplored properties for economic mineralization.

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 [email protected]

Kapa Gold Inc.

Suite 1400 – 1199 West Hastings Street Vancouver, BC, V6E 3T5 Tel: 604-961-9442 | [email protected] www.kapagold.com 604-961-9442

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

Certain statements made, and information contained herein may constitute "forward looking information" and "forward looking statements" within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management's expectations. Forward-looking statements and information may be identified by such terms as "anticipates", "believes", "targets", "estimates", "plans", "expects", "may", "will", "could" or "would" and include statements regarding the anticipated cease trade order and the Company’s expected timing for filing its financial statements. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the anticipated timing of the securities regulator and the anticipated timing of the Company’s auditor in completing its work in connection with the audit of the Company’s financial statements. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guaranteeing of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.