Mr. Neil Briggs reports

KERMODE/BOSS EASTGATE AGREEMENT

Kermode Resources Ltd. has reached an agreement to sell part of its interest in its Nevada Eastgate gold project to Boss Power. Under the terms of the agreement, Boss will purchase one-half of Kermode's 30-per-cent interest in the property for $250,000 (U.S.), and have the right to participate with Kermode in the underlying agreement that Kermode has with Blue Ridge Gold (see news release dated May 10, 2012).

Boss will purchase, in two transactions each involving the payment of $200,000 (U.S.) to Blue Ridge for an additional 15-per-cent interest, the next 30-per-cent interest in the Eastgate property.

Following the completion of the purchases, Boss will hold a 45-per-cent interest, Kermode will hold a 15-per-cent interest and Blue Ridge will hold the remaining 40-per-cent interest in the property, subject to the Blue Ridge agreement with Kermode.

Subject to Boss completing the purchase of an aggregate 45-per-cent interest in the property, Kermode and Boss will jointly and equally participate in the remaining purchases of a 15-per-cent interest and a 25-per-cent interest in the property, pursuant to and as contemplated by the Blue Ridge agreement.

Either Kermode or Boss may elect not to complete its share of the purchases, and the other party may complete the purchases entirely for its own account or may also elect not to complete its share, in which case they will enter into a joint venture and joint venture agreement with each other and Blue Ridge, pursuant to and as contemplated by the Blue Ridge agreement.