Mr. Peter Bell reports

KERMODE SIGNS LOI FOR COPPER KING BC PROJECT ON VANCOUVER ISLAND

Kermode Resources Ltd. has entered into a non-binding letter of intent to acquire the Copper King B.C. project in British Columbia from a group of private individuals. The project includes exploration claims covering the claims with the following licence numbers: 1096661, 1096665, 1096831, 1096832 and 109683 with a total area of 1,199 hectares.

The LOI provides for a due diligence period extending to Dec. 31, 2022. During this period, Kermode can elect to enter into a definitive agreement, which will formalize the transaction. Either party can conduct any activities during the LOI.

             TERMS OF THE PURCHASE OPTION

           Cash                 Securities   Exploration

Exchange 
approval   $0                   0            $0
Year 1     $50,000 at or        0            $0
           before 18 months
Year 2     $0                   0            $0

Work commitments:  none

Other terms and conditions:

• Net smelter return (NSR): 5-per-cent royalty;
• Future sales interest (FSI): 50 per cent of the gross proceeds of any future transaction where Kermode sells the property in the next five years.

Peter Bell, chief executive officer: "This is an unusual deal. I designed it this way so that it could be the most bullish for KLM shareholders. It is an exempt transaction under the [TSX Venture Exchange] policy, which means it doesn't require exchange approval and can be done simply. I offered the vendor group to take 50 per cent of the value of a future sale of the property any time in the next five years because I believe this group can help make a successful transaction happen, and I want to incentivize them to make it a win."

About Kermode Resources Ltd.

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

We seek Safe Harbor.