Mr. Peter Bell reports

KERMODE OPTIONS THREE EXPLORATION PROJECTS ON VANCOUVER ISLAND

Kermode Resources Ltd. has advanced the letters of intent for the Copper King, the Star of the West and the Black Bear B.C. projects to completion by initiating a property option agreement for each project subject to final approval by the board of directors of Kermode. Kermode may earn 100-per-cent ownership of each project as at the terms below as three separate transactions. Peter Bell, chief executive officer of Kermode, comments: "These three new option agreements add to our previous transaction for the Lucky Strike project to give us significant exploration potential on Vancouver Island. I am grateful to the vendors for working with me to negotiate an option agreement that does not require KLM to issue any shares as payment. I look forward to learning more about these projects. Thank you, shareholders!"

Management believes the transactions do not require regulatory approval. Each transaction is a separate agreement and none of the counterparties to any of the three transactions is an insider of Kermode or a non-arm's-length party.

Black Bear B.C. project

The Black Bear B.C. project was previously announced on Aug. 10, 2022, and includes one claim with a total area of 487 hectares.

The option price includes cash payments of $12,000 ($1,000 per month) in the first year; then $24,000 ($2,000 per month) in the second year; and $36,000 ($3,000 per month) in the third year to begin immediately. The property would vest 100 per cent in Kermode upon Kermode making the third-year payment. There are no shares payable and no royalty or sales participation right.

The cash payments are due solely under the Black Bear B.C. project option.

Star of the West B.C. project

The Star of the West B.C. project was previously announced on Aug. 8, 2022, to include six claims with a total area of 1,136 hectares.

The option price includes two components: (1) a net smelter return royalty of 5 per cent with a $5-million buydown where each 1 per cent can be purchased from the vendors for $1-million at any time at buyer's discretion; and (2) a sales participation right of 50 per cent of the gross proceeds of any future transaction if Kermode sells the property in the next five years. The property would vest 100 per cent in Kermode upon Kermode registering the royalty agreement at any time at the sole discretion of Kermode after closing. There are no cash or shares payable.

Copper King B.C. project

The Copper King B.C. project was previously announced on Aug. 4, 2022, to include five claims with a total area of 1,136 hectares.

The option price includes two components: (1) a net smelter return royalty of 5 per cent with a $5-million buydown where each 1 per cent can be purchased from the vendors for $1-million at any time at buyer's discretion; and (2) a sales participation right of 50 per cent of the gross proceeds of any future transaction if Kermode sells the property in the next five years. The property would vest 100 per cent in Kermode upon Kermode registering the royalty agreement at any time at the sole discretion of Kermode after closing. There are no cash or shares payable.

About Kermode Resources Ltd.

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

We seek Safe Harbor.