Mr. Claudio Ciavarella of Braydon reports

BRAYDON CAPITAL TO ACQUIRE ADDITIONAL COMMON SHARES OF KERR MINES

Braydon Capital Corp. has entered into a debt conversion agreement with Kerr Mines Inc. pursuant to which Braydon has agreed to acquire 18.5 million common shares of Kerr Mines in settlement of $1.5-million of the outstanding principal amount of a secured promissory note previously issued by Kerr Mines to Braydon. The issuance of the conversion shares is subject to, among other things, the approval of Kerr Mines' disinterested shareholders and the final approval of the Toronto Stock Exchange.

Taking into account certain additional common shares, which are proposed to be issued prior to or concurrently with the issuance of the conversion shares as announced by Kerr Mines, the conversion shares will represent approximately 9.7 per cent of the 190,968,865 issued and outstanding common shares immediately upon the issuance thereof.

Braydon currently owns 3,704,460 common shares and 2,133,333 warrants to purchase additional common shares. Certain joint actors of Braydon (the Braydon group) collectively own an additional 2,679,639 common shares and 833,334 warrants to purchase additional common shares.

Upon the issuance of the conversion shares, and taking into account the additional common shares which are proposed to be issued prior to or concurrently therewith, the Braydon group will collectively own 24,884,099 common shares, representing approximately 13.0 per cent of the then outstanding common shares. If all of the Braydon group warrants were to be exercised, the Braydon group would collectively own 27,850,766 common shares, representing approximately 14.4 per cent of the then outstanding common shares.

Braydon is acquiring the conversion shares pursuant to the debt conversion agreement for investment purposes in partial settlement of an existing debt. Braydon and its joint actors will continue to monitor the business, prospects, financial condition and potential capital requirements of Kerr Mines. Depending on their evaluation of these and other factors, Braydon and/or its joint actors may from time to time in the future increase or decrease their respective direct or indirect ownership, control, or direction over the common shares, or other securities of Kerr Mines, through market transactions, private agreements, subscriptions from treasury or otherwise.

For further information, including a copy of the corresponding report filed with Canadian securities regulators, contact Claudio Ciavarella.