Mr. Peter Bell reports

KERMODE CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT FOR $10,500

Kermode Resources Ltd. has completed the first tranche of its non-brokered private placement and has issued 525,000 units at a price of two cents per unit for gross proceeds of $10,500. For further information on this previously announced financing, refer to the company's April 4, 2024, news release.

Each unit consists of one common share of the company and one common share purchase warrant. Each warrant is exercisable to acquire one common share of the company at a price of five cents per warrant share for a period of 36 months to April 8, 2027.

The proceeds will be used for general working capital purposes. The proceeds of the financing will not primarily be used to pay management fees or for investor relations activities. Detailed use of proceeds includes TSX Venture Exchange annual sustaining fees of $6,000, cash payments to the CFO (chief financial officer) of $2,500, TSX Venture Exchange fees for a new shares-for-services file for the CFO of $1,050 and legal fees to file the annual report with B.C. Registry for $1,300.

There were no finders' fees paid in connection with this first tranche of the financing.

The company anticipates closing a second tranche of the financing on or about June 3, 2024. Completion of a second or other tranches of the financing remains subject to approval from the TSX Venture Exchange. All securities issued and issuable under the first tranche of the financing will be subject to a four-month hold period expiring April 8, 2024. Securities issued under any subsequent tranche(s) will be subject to a four-month hold period calculated from their date of official closing.

To date, Peter Bell, an officer and director of Kermode, participated in the private placement and acquired an aggregate of 525,000 units. The subscription by Mr. Bell constitutes a related party transaction. The issuer will rely on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) thereof as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the financing, insofar as it involves the related parties, will exceed 25 per cent of the issuer's market capitalization.

About Kermode Resources Ltd,

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

We seek Safe Harbor.