Mr. Peter Bell reports

KERMODE GRANTS PERFORMANCE SHARE UNITS TO CONSULTANTS

Kermode Resources Ltd. has granted performance share units to consultants. 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, the consultant 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 to 1.

Kermode grants three million units to the consultants.

About Kermode Resources Ltd.

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