Mr. Peter Bell reports

KERMODE CLOSES PRIVATE PLACEMENT FOR $19,000

There will not be a second tranche of Kermode Resources Ltd.'s non-brokered private placement. For further information on this previously announced financing, refer to the company's news releases on June 17 and May 29, 2025.

Kermode issued 1.9 million units at a price of one cent per unit for gross proceeds of $19,000. 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 60 months to June 17, 2030. 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. No insiders invested in this first tranche. There were no finders' fees paid in connection with this first tranche of the financing. All securities issued and issuable under the first tranche of the financing will be subject to a four-month hold period expiring Oct. 18, 2025. Securities issued under any subsequent tranche(s) will be subject to a four-month hold period calculated from their date of official closing.

No insiders participated in the financing.

The board of directors continues with a strategic review process for the company.

Kermode chief executive officer Peter Bell commented: "I am sorry for our failure to finance the remaining $81,000 of our goal. I am grateful to the investors who did participate. In particular, one person who used the existing shareholder exemption helped me discover that we have not been collecting the mining exploration tax credit in B.C. The credit is calculated as 20 per cent of exploration spending according to certain definitions. Kermode incurred gross exploration spending at our B.C. projects of approximately $250,000 in 2024 and $275,000 in 2023, as in Note 3 to the 2024 audited annual financial statements. I am sorry that we have not obtained this tax incentive in the past, but it is an immediate priority now."

About Kermode Resources Ltd.

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

We seek Safe Harbor.