KAPA Capital Inc. Announces Expiry of LOI with Psi International Inc.

2475 Queens Avenue West Vancouver, BC V7V 2Y9

NEWS RELEASE

October 4, 2019 TSXV – KAPA.P

KAPA CAPITAL INC. ANNOUNCES EXPIRY OF LOI WITH PSI INTERNATIONAL INC.

Kapa Capital Inc. (“Kapa” or the “Company”) announces that, further to its news release of May 31, 2019, the letter of intent dated November 29, 2018 with PSI International Inc. (the “LOI”) has expired as the parties did not enter into a definitive agreement and the proposed transaction set out therein will no longer proceed. Kapa will apply to have its shares reinstated for trading on the TSX Venture Exchange (the “Exchange”).

Kapa will continue to identify and evaluate other businesses and assets with the view to completing a qualifying transaction under the capital pool policy of the Exchange.

ON BEHALF OF THE BOARD

Kapa Capital Inc.

Charalambos (Harry) Katevatis President, Chief Executive Officer and Director

For further information contact:

Charalambos (Harry) Katevatis President, Chief Executive Officer and Director of Kapa Capital Inc.

604 836-6667

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