Mr. Peter Bell reports

KERMODE SAMPLES +2,500 G/T AG SILVER AND +10% SB ANTIMONY AT WALL OF SHOMAKER MINE, +3G/T AU GOLD FROM ROAD AT GREEN MONSTER MINE, STAKES NEW SHOWING OF MALACHITE AND HISTORIC GOLD PLATE MINE AT WS PROJECT, NEVADA

Kermode Resources Ltd. has released initial results from geochemical sampling as due diligence under the letter of intent for the Rye Patch project.

Highlights include assays up to 2,605 grams per tonne silver and 13.2 per cent antimony from sample S-02, which was 3.1 kilograms taken from the wall of the Shomaker mine.

In addition to the metal found in the mine, sample R762 was collected from the side of a "glory hole" at the top of Shomaker decline, and it assayed 1,091 g/t Ag silver, 1.6 g/t Au gold, 6.8 per cent Sb antimony and 3.9 per cent Pb lead from 3.8 kg of material. Both samples S02 and R762 had low levels of arsenic and mercury. The company is encouraged to find initial indications of high-grade mineralization with low concentrations of potential deleterious elements.

Sample R742 assayed 3.6 g/t gold and 518 g/t silver in a sample weighing 6.5 kg taken from a mineralized outcrop in a road bed that was recently exposed by winter storms. This sample contained fragments of brecciated quartz in an extremely dense iron oxide host rock.

The Shomaker mine is situated along what appears to be the same vein structure as the Green Monster mine and other unnamed workings. The Green mine is found at the crest of the hill, approximately 100 metres up-slope from the Shomaker mine. The vein appears to outcrop for 100 to 500 metres and to have a "dip slope," which means that it is dipping at roughly the same angle as the surface slope, which presents favourable exposure and potential for a significant metal endowment near the surface.

Negative result for test of possible offset vein at Shomaker and Green Monster mines

Sample R760 was collected from an outcrop across the ravine from the Shomaker mine that may indicate a footwall structure directly related to the mines, as it contains the right kind of rocks with common to abundant quartz in a hydromorphic gossan. However, this sample had low concentrations of all metals.

At the surface, it appears the vein where sample R760 was collected runs parallel to the ravine and meets the structure where sample R742 was collected, which assayed more than three g/t Au. The fact that sample R760 did not contain anomalous gold suggests the apparent offset vein was postmineral or otherwise not related to the metallogenesis of the deposits at Shomaker and Green Monster.

Negative result from sampling at the North mine

Results from three samples at the North mine were inferior to what was seen elsewhere at the WS project. Assays returned 44, 102 and 288 g/t Ag, and 0.4, 0.7 and 0.3 g/t Au at the surface and inside the underground mine. Samples at the North mine contain significantly higher arsenic, with values ranging from 2 to 5 per cent.

The North mine is approximately 750 metres north of the Green and Shomaker mine. Geological structures generally dip northerly at the North mine, while all observed structures in the vicinity of the Green and Shomaker mines have a southerly dip. It is unclear if there is any higher-grade material or other indications of a significant metal endowment at the North mine.

Geological review

Known mineralization is generally oxidized and found within a structurally complex north-northeast-trending zone of recessional weathering with strong alteration, bleaching and iron staining within the gabbroic, Humboldt lopolith, a Cretaceous-age lopolithic complex roughly 128 to 137 kilometres long in an east-west direction and 48 to 56 kilometres wide in a north-south direction.

As mapped by the U.S. Geological Survey, the Humboldt lopolith in the vicinity of the WS property is composed of variously foliated mafic to ultramafic rocks ranging from gabbro to picrite with local segregations of keratophyre, all of which are intrusive into siliciclastic to carbonate sediments of Jurassic to Triassic age.

Investigations by the company into historical records available through the Nevada Bureau of Mines and Geology indicate mineralization in the area was first discovered about 1906 and limited mining occurred from 1918 through about 1967. Historically, the production seems to have focused exclusively on antimony with little if any attention or even mention of silver or gold potential in the district.

Expanding the WS land position

The company has worked with the project vendor to expand the WS claim block by staking more than 200 hectares of highly prospective ground covering potential structural extensions of mineralization at the Green, Shomaker and North mines. This action more than triples the size of the WS land position to approximately 285 hectares.

The new land position also includes the historic Gold Plate mine. The details of this mine are unknown. Furthermore, reconnaissance prospecting at the site has identified a new area of exposure in newly staked claims where recent erosion by surface water has exposed visible copper oxide minerals in a calcite vein at the surface. The relationship between this copper exposure and the project or regional-scale geology is not well understood. Sampling is planned to investigate this copper exposure.

Peter Bell comments, "In addition to the follow-up sampling at the face of the Shomaker mine and in the road at the Green Monster mine, I would like to undertake initial mineralogical and metallurgical testing of the high-grade material from the old mine to better understand what the old-timers may have been doing to recover the antimony."

Mr. Bell continues: "We are working at the Alpha patent to repair timbering in part of the underground mine at the Rye Patch mine. These repairs will improve access for an initial underground selective sampling program as our immediate priority for the Rye Patch project. Let's find out if we can get better numbers from the Alpha patent than the WS as reported here."

The Rye Patch project

As in the press release dated Dec. 3, 2021, the company has a letter of intent with Gold Range LLC for the Rye Patch project, which includes the Alpha patent and the WS claims.

Qualified person

The technical information in this news release has been reviewed and approved by Robert G. Carrington, PGeo, a qualified person responsible for the scientific and technical information contained herein under National Instrument 43-101 standards.

About Kermode Resources Ltd.

Kermode is a junior mining company hunting for exploration opportunities around the world.

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