18:09:17 EDT Sun 28 Apr 2024
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Kermode Resources Ltd
Symbol KLM
Shares Issued 109,130,170
Close 2022-04-27 C$ 0.03
Market Cap C$ 3,273,905
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ORIGINAL: Kermode signs lease LOI for Brazeau Rumleski property

2022-04-28 14:17 ET - News Release

Received by email:

File: Attachment 2022-04-28-KLM-BRAZEAU RUMLESKI GOLD news release.pdf

                 LOI for Mining Lease on Patented Claims in Matheson, Ontario

Victoria, British Columbia - (April 28, 2022) - Kermode Resources Ltd. (TSXV: KLM)
announces a non-binding letter of intent for a lease agreement for patented claims in Matheson,
Ontario called the BRAZEAU RUMLESKI GOLD PROJECT (BRG). The property has been
used for farming since it was created after World War Two and the owner has done small-scale
prospecting at site. It has no publicly filed mineral occurrences and has never been worked by a
public company before, although there are major mines nearby.

The lease agreement will cover approximately 160 acres of private property where BRG owns
surface, mineral, and water rights. Kermode can earn a leasehold interest for any and all mining
exploration and development work on the property. Over the 40 years life of the deal, the total
payments are $3,345,000 cash and 36,000,000 shares. The deal does not provide for a purchase,
but only ever a lease agreement on an annual basis with certain rights of use and not ownership.

    Timing      Cash             Securities     Exploration or Other
                        $10,000                 Work Commitments
On signing the           $5,000
LOI                                          0  $0
Approval by
the Exchange                     4,000,000      $0

Year 1          $10,000          8,000,000      $0

Years 2         $15,000          12,000,000     $0

Years 3         $15,000          12,000,000     $0

Years 4 & 5     $20,000                      0  $0

Years 6 - 10    $50,000                      0  $0

Years 11 - 20   $100,000                     0  $0

Years 20 - 40   $100,000                     0  $0

Peter Bell, CEO, "This is an aggressive deal with bullish partners. I am grateful for the
opportunity to work with Mark Brazeau and his friends. Thanks Mr. Orville Rumleski for dealing
with me on this project for Kermode. Let's find a gold mine!"
 The due diligence period has commenced with an initial payment of $10,000 by Kermode to the
vendor group. During the due diligence period, either Kermode or the vendor group can conduct
any exploration activities at the property. Kermode shall have sole discretion to complete any
exploration work at the property, the vendor group shall be able to do any work at their sole
discretion, or the vendor and Kermode can work together at any time in any way. Both parties
shall be able to publish any information at any time at their discretion regarding such work in
compliance with relevant requirements for technical disclosure of mineral exploration results.

The due diligence period shall extend indefinitely. Kermode shall not be under any obligation to
do any work during the due diligence period. This letter of intent is mutually non-binding for all
parties. The terms of the LOI are subject to renegotiation by either party prior to establishing a
definitive agreement, and it is uncertain if or when a final agreement will be reached.

The proposed terms are as follows:
    - 20-year lease, renewable for a single 20-year increment. Lease payments under the
         royalty for the previous five years shall be credited cumulatively against royalty payment
         obligations. All Lease payments after the 5th year will be indexed and increased by the
         compounded CPI inflation rate each year.
    - There is a 5% net smelter return royalty payable to the vendor group one quarter each
         where each one percent can be bought-down for $1,000,000. The total royalty package
         can be bought-out for $5,000,000 cash to the four members of the vendor group.
    - The vendor has a "Sale Participation Right" whereby they shall receive 10% of any
         proceeds received by Kermode from any future sale of any Interest in the Property.
    - There shall be no "mutual area of interest" clause. The terms of this deal shall not apply
         to any other property at any other time for any reason at the sole discretion of Kermode.
    - There shall be no work commitments.

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

On Behalf of the Board of Directors,
KERMODE RESOURCES LTD

"Peter Bell"
President/CEO

For further information please contact:
Tel: +1 (250) 588-6939
Email: peterbellmining@gmail.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.

Forward-Looking Statements
 The forward-looking information contained in this news release represents the expectations of
the Company as of the date of this news release and, accordingly, is subject to change after such
date. Readers should not place undue importance on forward-looking information and should not
rely upon this information as of any other date. There is no assurance (i) the conditions to closing
the purchase and sale of the Project will be satisfied or waived, or (ii) that the Company will
acquire the Project on the terms as outlined above, or at all. While the Company may elect to, it
does not undertake to update this information at any particular time except as required in
accordance with applicable laws.
 


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