Mr. Peter Bell reports

KERMODE UPDATES TERMS FOR LOI ON SILVER PROJECT IN NEVADA

Kermode Resources Ltd. has revised the terms for the non-binding letter of intent to lease the Rye Patch project in Nevada, United States. This update follows prior news releases dated Dec. 3, 2021, and March 3, 2022.

The proposed transaction includes additional terms as follows:

• Royalty: There shall be a 5-per-cent net smelter return (NSR) royalty. The royalty is subject to the following buydown conditions: the first 1 per cent of the NSR may be bought down for $1-million, the second 1 per cent of the NSR may be bought down for $2-million and the third 1 per cent of the NSR may be bought down for $2-million, leaving at least a 2-per-cent NSR to Gold Range LLC.
• Advance royalty payments: The cash payments are minimum advance royalties and the total over any previous five-year period shall be recoupable from production royalty (NSR) payments.
• Inflation index: All cash payments and buydowns for year five and beyond indexed to CPI with 2022 base year.
• Future sales interest: An amount equal to 10 per cent of gross value of any transaction will be payable by Kermode to Gold Range if Kermode sells the leasehold interest, subject to consent by Gold Range.

About Kermode Resources Ltd.

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

We seek Safe Harbor.