Mr. Peter Bell reports

KERMODE OPTIONS "LITTLE BAY COPPER" FROM GRASSROOTS PROSPECTING GROUP, NEWFOUNDLAND

Kermode Resources Ltd. has received approval by the TSX Venture Exchange for the mineral property purchase agreement to acquire the Little Bay copper project. All shares issued are subject to resale restrictions under applicable securities legislation and the rules of the TSXV. No finder's fees were paid in connection with this transaction.

Peter Bell, CEO, "This is an aggressive deal with bullish partners. When I first joined the Board of Directors of Kermode in January 2020, I attempted to do a deal with the prospectors behind this Little Bay Copper deal but it didn't happen. I am grateful that I can now do my first deal as CEO of Kermode with this crew. Our plans include an immediate campaign of prospecting with marketing videos showing selective sampling as we hunt for high-grade copper at the known mineral occurrences on the project."

The total work commitments are $4,250,000 over 5 years with $100,000 due by the first anniversary. Over the life of the deal, the total payments include 33,000,000 common shares in the capital of KLM plus $262,000 cash. The vendor group comprises six private Canadian individuals.

The agreement provides for a two percent royalty ("2% NSR") with a buy-back of 1% for $2,000,000. Planet X Exploration Services Ltd. has a right of first refusal for all exploration work contracted by Kermode over the life of the option deal.

GOVERNMENT DATA REVIEW

Information in the following section is taken from government reports available online.

Clam Pond

As reported in Record ID Number #5250, the Clam Pond showing identified in an unpublished report by Noranda Exploration Company Limited. Results include a grab sample that assayed 0.56 g/t Au from altered mafic volcanic rocks with quartz veins. Apparently, these samples included 5.0% pyrite and chalcopyrite, but were not assayed for copper.

Little Bay Head

As reported in Record ID Number #576, the Little Bay Head prospect includes a single shaft which was determined to be at least 8.5m deep by H.J. MacLean in 1938-1939. Geology of the area is similar to that of the Whalesback and Little Bay Mine areas which lie along strike approximately 10 km to the southwest. Brinex carried out regional mapping, geochemistry and airborne geophysics over the area and drilled three holes over the occurrence in 1980 that did not reveal any significant mineralization. A 1.7 km north-south soil line constructed north of the shaft by Exmar Resources Ltd. in 1987 failed to detect any anomalous base or precious metal value and a large reconnaissance soil grid later constructed across the Little Bay Head peninsula in 1988 detected two closely spaced Au values of 90 ppb and 750 ppb approximately 1 km northeast (along strike) of the Little Bay Head shaft site.

Rock sampling conducted over the showing by Exmar Resources Ltd. in 1988 produced 5 anomalous gold values (261 to 767 ppb) with corresponding anomalies of Ag (14.6 to 60.0 ppm) and Cu (1.0 to 8.98%). Arsenic and zinc values ranged as high as 994 ppm and 905 ppm respectively. These samples were taken from old trenches and waste dump material around the shaft site.

Southern Arm

As reported in Record ID Number #4922, the Southern Arm showing includes a shaft. The showing is located approximately 850 m southwest of the road to Southern Arm and 600 m south of the shoreline. The general location is just west of Wild Bight and highway 392 to Little Bay.

H.J. MacLean mapped the Little Bay area in 1938-39 for the Geological Survey of Newfoundland. Brinex held a concession over the area during 1950-1980 and conducted rock and soil sampling and geophysics. Labrador Mining and Exploration Company Ltd. held an option from Brinex over the property from 1976-1980 and flew Scintrex AEM survey and followed-up conductors with ground EM, soil sampling and I surveys. The Southern Arm showing was investigated under one of these follow-up programs in 1976.

The occurrence was covered under Lic. No. 3376 issued to Varna Gold in March 1988. These claims covered the entire width of the Little Bay Southern Arm peninsula. Three geophysical survey lines utilizing magnetics and VLF were emplaced across the claims between Wild Bight and Southern Arm, in addition to a soil sample line which followed the east-west trending Southern Arm highway. The claims were cancelled in July, 1990.

Shimmy Pond

As reported in Record ID Number #4923, the Shimmy Pond prospect includes a shaft. The Shimmy Pond Shaft, located on the northeast corner of Shimmy Pond, is an exploration shaft sunk on silicified mafic agglomerate with 5-10% massive and disseminated pyrite. The zone occurs in a stratigraphically similar horizon to the Main Zone, although the silicification is more intense and the chloritization less intense. The alteration consists of silicification, carbonatization, epidotization, and chloritization. The mineralization occurs in a sequence of tuffaceous agglomerates (Dmytriw, 1990).

Seven grab samples collected from the Shimmy Pond Shaft area by U.S. Borax in 1984 returned 4 assay values in the range of 214 to 367 ppb Au and three anomalous values of 6.73 g/t Au (0.196 oz/t), 1.71 g/t Au (0.05 oz/t) and 15.9 g/t Au (0.465 oz/t) and up to 6.0 ppm Ag. Six channel samples (of variable length) taken across the northeast side of the shaft returned a collective assay grade of 0.217 oz/t Au over 1.8 m. An unspecified interval of this collective sample, estimated to be about 0.4 m (from diagram), returned an assay value of 0.675 oz/t Au. Base metal values were very low (less than 100 ppm) (Burton, 1984). A four-hole diamond drill program at the shaft site by Granges Inc. in 1990 encountered only minor elevated to anomalous Au: 256-472 ppb; 1.17 g/t over 1.5 m; and 4.57 g/t over 1.5 m. Twenty-two 1.0 m channel samples taken from the Shimmy Pond Zone and the nearby Hilltop Zone produced mainly elevated to anomalous values in the range 740 to 4330 ppb Au (Dmytriw, 1990).

Otter Island

As reported in Record ID Number #4925, the Otter Island showing has been subject to trenching. Gold mineralization on Otter Island has been found to be associated with pyrite and chalcopyrite in a 20 cm-wide cherty interflow metasediment within pillow basalts. Mineralization is exposed mainly within and around several old pits which had been dug in the centre portion of Otter Island to test chalcopyrite-rich shear zones (Bell, 1990).

A grab sample of a 20 cm wide cherty interflow sediment (containing up to 15% pyrite and chalcopyrite) within pillow basalts assayed 3.86 g/t Au. Three other samples taken within the general area of the old test pits returned Cu values in the range of 1.78% to 5.16%. Corresponding Au results were 540, 606, 650 and 810 ppb Au (Bell, 1990). A resample of the cherty, sheared interflow sediment in 1991 returned assay values of the 10.4 g/t Au and 2.22% Cu over 20 cm. Gossanous chlorite schist hosting 15% sulphide, collected from old dump material at the pits, yielded 1.2 g/t Au and 1.98% Cu (Beischer, 1991). An earlier value of 3.03% Cu had been reported by Labrador Mining and Exploration Ltd. for one of the test pits in 1977 (Tuffy, 1977).

Discussion

Wesley Keats, Planet X Exploration Services Ltd., "The government records on the mineral occurrences covered by this land package may not have the most impressive grades versus other old mines active around the year 1900, like the York Harbour Mine that I previously staked and optioned to York Harbour Metals Inc. But the land package we have optioned to Kermode in this Little Bay Copper deal could be very rich. I see the potential for us to win by doing new things in old places and old things in new places with this project."

All of the historical work and conclusions described above were carried out by arm's length third parties. Kermode has no information about the mining or assay methods used or whether the work was carried out under the supervision of a Qualified Person as that term is defined in NI43-101. These historical records should not be relied upon without further work being carried out at and around the Project under the supervision of a Qualified Person.

Qualified Person

The technical information in this news release has been reviewed and approved by Ms. Francine Long, P. Geo, a Qualified Person responsible for the scientific and technical information contained herein under National Instrument 43-101 standards.

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