Mr. Peter Bell reports

KERMODE SIGNS LOI FOR TERRACE PERLITE PROJECT

Kermode Resources Ltd. has provided the terms for a proposed option agreement to purchase 100-per-cent ownership of mining claims called the Terrace perlite project in British Columbia from a private individual who is at arm's length to Kermode. Further details of this non-binding letter of intent are provided herein.

The project includes one mineral claim covering 100 hectares. The claim number is 1116919. All share payments are due to William Morris-Nelson. There are no spending requirements.

Other terms and conditions:

• Gross revenue royalty equal to 5-per-cent royalty with a buydown of $500,000 to eliminate the royalty;
• Sales participation right equal to 10 per cent of the gross proceeds from any transaction whereby Kermode sells any interest in the project in the next 10 years;
• Area of interest whereby any claims staked by Mr. Morris-Nelson directly or under his direction within an area of five kilometres from the outside of the current land position shall be included in the option agreement with no additional considerations.

About Kermode Resources Ltd.

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

We seek Safe Harbor.