Mr. Peter Bell reports

+4,800 G/T AG SILVER UNDERGROUND AT RYE PATCH SILVER MINE, NEVADA $KLM

Kermode Resources Ltd. has released the first round of underground sampling at the Rye Patch mine, which returned assays up to 4,893 grams per metric tonne (g/t) silver. This high-grade silver was found in a rock chip sample collected near the portal of the 5506 Level from quartz veinlets one to two centimetres wide exposed in the upper right side or back of the mine. An adjacent channel sample testing quartz veinlets in the same area assayed 647 g/t Ag over 0.5 metre. A grab sample of similar material found in a stockpile nearby assayed 1,278 g/t Ag.

Chief executive officer Peter Bell commented, "The old timers did us a favour by leaving a small stockpile near the portal because it gave us a clue of what kind of material to look for. When we found an example of that rock in place, we did two types of sampling: the chip sample gives us information on the geochemistry of this material in isolation and the channel sample shows us how the grade changes as we include wall rock material to understand dilution."

In addition to the sampling by the portal, Kermode tested the Alpha vein in an area of extensive mine workings located approximately 100m inside the mine on the 5506 level. Four channel samples were taken in an area approximately 10 metres squared (10 m by 10 m) and each sample was cut with a nominal width of four centimetres by two centimetres deep and a range of 0.5 metre to one metre in length.

Samples were collected from exposures on the accessible area of the 5506 level of the Rye Patch mine where, stope widths range from four m to more than 10 m. Sample results identify high-grade silver mineralization along the so-called Alpha vein, which is a large composite structure that follows a north-south structural strike and dips steeply to the east. The Alpha vein appears to be an altered, often silica-flooded, very fine-grained intrusive dike that is hosted in carbonate sediments of the mid-Triassic age Prida formation.

Detailed lidar scanning indicates the Alpha vein actually consists of at least three anastomosing structures, which reflect geological dynamics associated with local shear zones. Kermode has used the lidar scans of the mine workings to show the sampling locations in plan and oblique three-dimensional views.

Detailed discussion: The grab sample 1618723 from the stockpile of select material left near the portal of the 5506 level contains abundant copper oxide minerals and assayed 0.7 per cent copper. Trace copper and manganese oxide minerals were observed elsewhere in the tan-coloured, fine-grained dike along the Alpha vein, which provides a visual guide to mineralization. The channel sample 1618718 was cut perpendicular to the Alpha vein above the 5506 level, where the structure widens to two to three metres up-dip. The quartz stockwork veining and sooty black stringers in the sill or floor of the stope assayed 1,102 g/t Ag over 0.7 m. The Rye Patch project is situated along the northwest trending Rye Patch lineament system, which transects the larger northeast trending Humboldt structural zone, commonly referred to as the Midas Trench or Midas Trough, a 150-kilometre-to-200-kilometre-wide zone of northeast trending faults and shears (Rowan and Wetlaufer, 1979, USGS OFR 79-544). Significant districts, mines and deposits spatially associated with one or both of these zones include the Comstock Lode (Virgina district), Coeur Rochester, Florida Canyon, Relief Canyon, Standard, Getchell, Twin Creeks, Midas (Ken Snyder), Hollister, Sleeper, San Emedio, Hog Ranch, Hycroft Lewis, Rosebud and others.

The Rye Patch project: As announced 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 Mr. 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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