Mr. Peter Bell reports

KERMODE GRANTS PERFORMANCE SHARE UNITS TO CASTLEWOOD CAPITAL CORPORATION

Kermode Resources Ltd. has granted performance share units to Castlewood Capital Corp., a consultant. The units vest after one year and have a term of three years to expiry from the effective date, today. The units have been granted in accordance with the company's security-based compensation plan.

The units entitle the consultant to receive payment in cash or shares of an amount equal to the closing market price on the day immediately prior to the last day of the applicable performance period multiplied by the applicable multiplier, to be determined on the last day of the performance period.

The timing of the performance period for any units that may be exercised is at the sole discretion of the board of directors. After the units have vested, some may be exercised on some dates and others on different dates at the sole discretion of the board to allow for multiple performance periods to exercise different tranches of units. The board is not obligated to exercise any number of the units at any time unless it so decides.

At the sole discretion of the board of directors, the form of payment for any units shall be determined upon exercise. The amount of shares is subject to certain restrictions; for instance, Castlewood Capital shall not receive more than 2 per cent of the shares of Kermode in any 12-month period as per the plan and TSX Venture Exchange policy.

The multiplier shall be set at the sole discretion of the board of directors at the time of exercise with a maximum value of 10:1.

Kermode has granted one million units to the consultant.

Jason Libenson, president and chief commercial officer at Castlewood Capital, comments: "Castlewood Capital is pleased to be working with Kermode. This company needs to move forward if it has a chance to build shareholder value. I see big market opportunities in the natural resource sector based on global economic conditions and I think it's up to management to seize these opportunities."

Peter Bell, president and chief executive officer at Kermode, comments: "It's up to management to seize opportunities, but the junior mining business is capital intensive and we are nothing without financing. I am grateful for the opportunity to issue performance share units for the first time and look forward to using them much more. The TSX-V changed their policy to first allow these units on Nov. 24, 2021, and it is bullish that we are using them before they are even one year old. I think these units may prove to be an innovative part of the junior mining financing toolkit over the next decade, adding to charitable flow-through and funding for critical minerals."

About Kermode Resources Ltd.

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