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

KAPA CAPITAL 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 w ith PSI International Inc.

(the “LOI”) has expired as the parties did not enter into a definitive a greement and the

proposed transaction set out therein will no longer proceed. Ka pa 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.