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Kermode Resources Ltd (2)
Symbol KLM
Shares Issued 42,590,422
Close 2024-05-16 C$ 0.01
Market Cap C$ 425,904
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Kermode Resources options Rye Patch project in Nevada

2024-05-17 09:16 ET - News Release

Subject: News release (new option on cash lease for silver project in Nevada) PDF Document

File: Attachment 2024-05-17-KLM-RYE PATCH option-to-lease news release.pdf

Kermode signs option to lease Rye Patch Mine Project in Nevada

Victoria, British Columbia - (May 17, 2024) - Kermode Resources Ltd. (TSXV: KLM) ("Kermode") options the Rye Patch Mine project in Nevada, USA. The option provides Kermode with the right but not the obligation to undertake a cash lease of the property. The project comprises patented and unpatented mining claims covering approximately 120 acres in Pershing County, Nevada owned by Gold Range Company LLC.

Kermode will not issue any shares under the transaction at any time.

The first phase of the deal is the Option, where Kermode begins with a one-year term that can be renewed for additional one-year periods by mutual consent of the counterparties so long as Kermode is paying or causing to be paid all annual claim maintenance fees and holding costs.

During the first phase, Kermode may carry out certain "pre-drilling" mineral exploration activities including but not limited to mapping, rock, soil and geochemical sampling, geophysical surveys and other exploration activities. Kermode will not conduct drilling activities of any kind or nature whatsoever including auger, core, rotary, reverse circulation or other without first entering into the lease agreement contemplated in this Option Agreement.

The second phase of the deal is a Lease, where Kermode commits to these cash payments:

-on signing the lease US$ 5,000

-On the first anniversary US$ 5,000

-On the second anniversary US$ 10,000

- On the third anniversary US$ 50,000

- On the fourth anniversary US$ 100,000

- On the fifth & sixth anniversaries US$ 150,000

- On the seventh & eighth anniversaries US$ 200,000

- On the eighth anniversary and thereafter US$ 250,000

The lease has a 10-year term and is renewable for 10-year increments so long as exploration or mining activity is ongoing.

The proposed transaction includes additional terms as follows: - Royalty: There shall be a five percent (5%) Net Smelter Return (NSR) royalty. The royalty is subject to the following buy-down conditions: the first 1% of the NRS may be bought down for $1 million, the second 1% of the NSR may be Bought Down for $2 million, and the third 1% of the NSR may be bought down for $2 million leaving at least a 2% NSR to Gold Range - Advance Royalty Payments: The cash payments are Minimum Advance Royalties and the total over any previous 5-year period shall be recoupable from production royalty (NSR) payments. - Inflation Index: All cash payments & buydowns for Year 5 & beyond indexed to CPI with 2024 base year. - Future sales interest: An amount equal to 10% of gross value of any transaction will be payable by Kermode to the Gold Range if Kermode sells the leasehold interest, subject to consent by Gold Range LLC.

During the first phase, Gold Range may terminate the option upon 15 days' written notice, provided that during such 15-day period, Kermode will have the right to enter into the Contemplated lease agreement. During the second phase, Gold Range may not terminate the Lease.

During the first phase, the Option will not be assignable. During the second phase, the Lease and Leasehold Interest will be assignable, and only then with Gold Range's written consent not to be unreasonably withheld, which may be withheld at Gold Range's discretion for reason.

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

On Behalf of the Board of Directors, KERMODE RESOURCES LTD

"Peter Bell" President/CEO

For further information please contact:

Tel: 1-250-588-6939

Email: peterbellmining@gmail.com

Website: https://linktr.ee/kermoderesources

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. There is no assurance (i) that the Company will acquire the Project on the terms as outlined above, or at all, (ii) that the counterparty Gold Range LLC has made entirely accurate representations of all aspects of the property. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.

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