Inca One Gold Corp. Announces Extension of Stay Period and DIP Loan Agreement

DIP Loan

The Second ARIO approved the Company to enter into an interim financing to be provided by a private lender in the form of a Debtor-In-Possession Term Loan ("DIP Loan") for the principal sum of up to US$1 million.

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

The terms of the DIP Loan will allow Inca One to drawdown funds in two tranches, the first in the amount of US$750,000 and the second in the amount of US$250,000. Each tranche is subject to a 5% drawdown fee payable at the time of each drawdown. Interest accrues at a rate of 20% per annum calculated monthly and undrawn amounts are subject to a 2% 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 November 30, 2024.

In connection with the DIP Loan, the Company will issue an aggregate of 5,000,000 share purchase warrants (the "Warrants") to the lender. Each Warrant entitles the holder to purchase one common share of the Company at an exercise price of C$0.10 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 metals market Inca One is using the time granted by the CCAA process to restructure its existing liabilities and secure a significant new funding package.

Additional information regarding the CCAA proceeding can be found on the Monitor's website at http://cfcanada.fticonsulting.com/incaone.

About Inca One

Inca One Gold Corp is an established gold producer operating two permitted, gold mineral processing facilities in Peru. The Company possesses a combined 450 TPD permitted operating capacity at its two fully integrated plants, Chala One and Kori One, generating over US$200 million 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 UN 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. To learn more, visit www.incaone.com.

Figure 1. Inca One's gold processing facilities in Peru (left: Chala One facility; right: Kori One facility

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On behalf of the Board,

Edward Kelly
President and CEO
Inca One Gold Corp.

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