Mr. Carlo Rigillo reports

KERMODE ANNOUNCES TERMINATION OF PROPERTY OPTION AGREEMENTS

In connection with Kermode Resources Ltd.'s board of directors' strategic review announced on Sept. 2, 2025, as soon as reasonably practical, the company intends on relinquishing all right, title and interest to the company's mineral exploration assets.

On Oct. 6, 2025, the company and the optionors of the Beaton gold, Mount Sicker and Tamahi projects in British Columbia agreed to mutually terminate the respective option agreements with immediate effect. The board has also decided that it does not intend to further advance the Lucky Strike project in British Columbia, and has abandoned the effort to transfer these claims to Kermode which continue to be registered in the name of the prospector, or the company's existing mining concessions in Thunder Bay, Ont., which are expected to lapse to the Crown in January, 2026. In exchange for termination of the Beaton gold, Mount Sicker and Tamahi project options and not pursuing the transfer of the Lucky Strike project into the company's name, entities affiliated with the property owners agreed to waive an aggregate of approximately $45,000 of accounts payable by the company. Given the company's current financial position, the board determined that it was in the best interest of the company to settle the accounts payable and eliminate future exploration and property maintenance expenses.

About Kermode Resources Ltd.

Kermode is a reporting issuer in the provinces of British Columbia and Alberta, and its shares are listed for trading on the TSX Venture Exchange under the symbol KLM.

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