Mr. Edward Kelly reports

INCA ONE ANNOUNCES EXTENSION OF STAY PERIOD AND DIP LOAN AGREEMENT

Further to Inca One Gold Corp.'s June 4, 2024, and June 14, 2024, press releases, on July 25, 2024, and pursuant to the Companies Creditors Arrangement Act, the Supreme Court of British Columbia extended the stay period under a second amended and restated initial order until Aug. 26, 2024.

Debtor-in-possession loan

The second ARIO approved the company entering into an interim financing to be provided by a private lender in the form of a debtor-in-possession term loan for the principal sum of up to $1-million (U.S.).

The DIP loan will be for general working capital, including legal, restructuring, administrative and general corporate costs in connection with the CCAA proceedings and the court-approved cash flows.

The DIP loan will have priority security ranking over all secured creditors.

The terms of the DIP loan will allow Inca One to draw down funds in two tranches, the first in the amount of $750,000 (U.S.) and the second in the amount of $250,000 (U.S.). Each tranche is subject to a 5-per-cent drawdown fee payable at the time of each drawdown. Interest accrues at a rate of 20 per cent per annum calculated monthly, and undrawn amounts are subject to a 2-per-cent standby charge. Both are payable upon maturity. The maturity date is the earliest of: the date on which the lender demands repayment after the occurrence of an event of default, the implementation of a court-approved plan of arrangement and compromise within the CCAA proceedings, the termination of the CCAA proceedings and Nov. 30, 2024.

In connection with the DIP loan, the company will issue an aggregate of five million share purchase warrants to the lender. Each warrant entitles the holder to purchase one common share of the company at an exercise price of 10 cents for a period of 12 months from the issue date.

Since the company was forced to enter CCAA, it has made significant efforts to reduce costs. Currently, both plants are on care and maintenance and preparing to restart operations once the company emerges from CCAA proceedings.

With a robust gold price and strengthening precious metal market, Inca One is using the time granted by the CCAA process to restructure its existing liabilities and secure a significant new financing package.

Additional information regarding the CCAA proceeding can be found on the monitor's website.

About Inca One Gold Corp.

Inca One is an established gold producer operating two permitted, gold mineral processing facilities in Peru. The company possesses a combined 450-tonne-per-day permitted operating capacity at its two fully integrated plants, Chala One and Kori One, generating over $200-million (U.S.) in sales from its processing operations. Inca One is led by an experienced and capable management team that has established the company as a trusted leader in servicing permitted, artisanal and small-scale gold miners (ASGM). Peru is one of the world's largest producers of gold, and its ASGM sector is estimated by government officials to be valued in the billions of dollars annually. Through the company's partnerships with the United Nations-backed PlanetGold Program and the Swiss Better Gold Initiative, Inca One supports the sustainable development and mining practices of the ASGM sector and the responsible gold supply chain from mine to market.