Mr. Peter Bell reports

KERMODE ANNOUNCES SHARES FOR DEBT TRANSACTION

Kermode Resources Ltd. intends to settle debts of $60,000 owing to creditors of the company through the issuance of an aggregate of six million common shares at a price of one cent per share.

The board of directors of the company believes that the proposed shares-for-debt transaction is in the best interests of the company insofar as it allows the company to allocate a greater portion of its cash on hand for exploration and general working capital.

The shares-for-debt transaction is subject to receipt of TSX Venture Exchange approval. The shares issued pursuant to the shares-for-debt transaction will be subject to a statutory four-month-and-one-day hold period from the date of issuance in accordance with Canadian securities law and the policies of the TSX-V.

Multilateral Instrument 61-101 disclosure

Twenty thousand dollars of the debt proposed to be settled pursuant to the shares-for-debt transaction are held by insiders of the company, and, accordingly, such portion of the shares-for-debt transaction will constitute a related-party transaction, as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company plans to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a), respectively, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the insider shares-for-debt transaction, exceeds 25 per cent of the company's market capitalization.

About Kermode Resources Ltd.

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

We seek Safe Harbor.