KAPA GOLD INC. provides the following report from the recent site visit conducted by management and its consulting geologist during October 2022 at the past producing, high-grade Blackhawk Gold Mine ("Blackhawk"). Consulting geologist, Dr. Allan Miller, recently spent three weeks on site at Blackhawk with the prime objective of gaining a detailed understanding of the geology and the mineralization setting on the eastern section of the property. Dr. Miller has identified three phases of intrusive rocks that intruded into the limestone.

The consequence of the emplacement of this high temperature intrusive complex into limestone resulted in hydrothermal alteration of the limestone and the intrusive suite. This hydrothermal alteration resulted in copper-bearing skarn formed in the and copper-gold bearing pegmatites and base and precious metal bearing vein peripheral to the intrusive complex. Previous mining and exploration data along with current geological analysis of Blackhawk reveal a second type of fault-controlled mineralization that is characterized by gold with subordinate silver and base metals.

Blackhawk is situated in an arid environment and consequently mineralized fault zones are accented by intense oxidation, hematitization. Management was shown many examples of gold, copper, lead, zinc and graphite mineralization while on site and extensive grab samples were collected currently pending assay results. Additionally, management investigated existing infrastructure and road access to the property which experienced some damage from recent high precipitation and mechcanical weathering in the region.

The Company has since engaged an experienced local San Bernadino contrator, Lilburn Corporation to assist with the road rehabilitation and permitting. Lilburn has also undertaken to assist the Company to reopen the underground adits at the old Blackhawk mine in order to better evaluate the structure and mineralization of the past-producing Blackhawk mine and the feasibility of underground diamond drilling. Obtaining road access permits and completing the necessary road work to gain vehicle access to the historic underground mine is currently top priority.

Following this, Kapa will apply for permits required for surface drilling to locate the skarn-type mineralization. Provisional drill targets will be used for initial permit application and will be further defined once a drone airborne magneticsurvey has been completed. A third type of mineralization, high-grade limestone, is present on the property.

This high purity limestone is similar to currently exploited limestone resources to the west of the Blackhawk property. Evaluation of this mineralization type will be part of the permitting application. Once the roads and underground adit have been exposed, Kapa will engage a Californian Certified Underground Mining Engineer to undertake a full underground inspection, survey and sample program to determine the viability of underground drilling.