Mr. Peter Bell reports

KERMODE OPTIONS LOUP CREEK PROJECT ON VANCOUVER ISLAND

Kermode Resources Ltd. has optioned the Loup Creek project from arm's-length vendors. The option agreement is an exempt transaction within TSX Venture policy. The project covers 1,384 hectares of mineral claims with title No. 1099594 and 1099668.

To earn 100 per cent ownership of the project, Kermode must assign the vendors a net smelter return royalty and a sales participation right, as described below. The net smelter return royalty is set at 2 per cent with a buy-down of $2-million to reduce the royalty to zero. The sales participation right is set at 20 per cent for a period of 10 years, where the right is calculated as a percentage of the gross proceeds from any transaction whereby Kermode sells any interest in Loup Creek.

As before, there are no exploration spending commitments.

About Kermode Resources Ltd.

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