Mr. Peter Bell reports

KERMODE AMENDS OPTION FOR EASTGATE BC PROJECT

Kermode Resources Ltd. has amended the purchase option for the Eastgate B.C. project. The option is an exempt transaction per TSX Venture Exchange policy since there are no exploration spending commitments, share payments or cash payments.

The total area of the project is approximately 350 hectares of mineral claims in British Columbia. The Eastgate B.C. project comprises the following claims: 1099057, 1110215, 1110261, 1104223, 1106654. The vendors are as follows: Clayton Jones, Michael Langille, Doug Hurd, Milosz Mielniczuk.

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.

• Net smelter return (NSR): Equal to 1 per cent with buydown of $1-million to remove the royalty;
• Sales participation right (SPR): Equal to 60 per cent with a term of 10 years.

Note that the NSR is a production royalty that provides payment to the vendors on commercial production. The SPR is a transaction-based payment that pays the vendors a percentage of the gross proceeds from any transaction whereby Kermode sells any interest in the projects in any way at any time within 10 years.

About Kermode Resources Ltd.

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