Kermode Resources Ltd. — Capital/Financing Update 2024

May 27, 2024

Kermode Reports Conceptual Estimate for Rye Patch silver project, Nevada

Victoria, British Columbia – (May 24, 2024) - Kermode Resources Ltd. (TSXV: KLM) ("Kermode" or the "Company") reports a Conceptual Estimate (“Estimate”) for the Rye Patch project. This Estimate is compliant with Canadian National Instrument 43-101 S.2.3(2)(a) where Kermode discloses the potential quantity and grade, expressed as ranges, of a target for further exploration. Kermode notes that the potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. This news release states the basis on which the disclosed potential quantity and grade has been determined.

The Rye Patch project (“Rye Patch”) contains two principal target areas, which Kermode refers to as the North and South zones. The South Zone includes the historic Rye Patch Mine and the location where Kermode reported fire assay results on July 26, 2022, that returned 24,438 grams per tonne silver g/t Ag and 2 grams per tonne gold (g/t Au) . The North Zone covers an area of extensive quartz stockwork veining similar to that seen in the mine workings of the South Zone but has no mine development. Historic surface samples of exposed mineralization in the North Zone have returned values ranging from 0.041 to 0.118 ounces of gold per ton and 1.8 to 4.0 ounces of silver per ton (1.27 – 3.67 g/t Au and 55.99 – 124.41 g/t Ag).

Based on LiDar scanning of the Rye Patch Mine workings in 2022, both the North and South Zones are interpreted to comprise large, “chutes” of mineralization raking down southerly in the plane of the sub-vertical to steeply east dipping Alpha Vein. Periodically mineralization is seen to “bleed” out from the Alpha Vein into favorable sedimentary beds forming sub-horizontal mineralized bodies extending off of the Alpha Vein for short distances.

distances.
Target Area	Silver(total ounces)	Gold(totalounces)	Tonnes	SilverGrade(opt Ag)	GoldGrade(opt Au)
NORTH ZONE	10,131,848.32	253,296	2,297,893	4.4	0.11
	2,532,962	67,545	765,964	3.3	0.08
SOUTH ZONE	96,546,367	28,396	2,576,072	37.5	0.34
	18,930,660	7,572	858,691	22.0	0.08
ConceptualResource(Lower Range)Total	546,753	3,755	75,118	7.3	0.05
ConceptualResource(Upper Range)**Total **	142,237,621	409,362	6,498,619	21.8	0.06

*Note: Exact amounts may vary due to rounding errors.

The Rye Patch Property (Property) contains Canadian National Instrument 43-101 (NI 43-101) S. 2.3 (2)(a) compliant resources conceptually estimated to contain from 142,237,621 ounces of silver and 409,362 ounces of gold to 546,753 ounces of silver and 3,755 ounces of gold in two principal target zones on the property as tabulated and discussed in more detail above.

Additional information is provided in this news release and a supplementary report available on SEDAR+ and Kermode’s website.

Kermode CEO Peter Bell comments, “I believe this type of Estimate is helpful for the public to understand the potential significance of an exploration project. I am grateful for the opportunity to publish a comprehensive review of the Rye Patch project that provides details of potential volume, tonnage, grade, and metal endowment.”

A diagram showing the target areas is provided below. Additional diagrams and details are provided in this new release.

==> picture [468 x 313] intentionally omitted <==

HISTORICAL PRODUCTION

Known production at the Rye Patch Mine averaged just over 36 ounces silver recovered per ton using chloride leaching and amalgamation. Recovery with these methods was typically 75% or less.

As reported in the news release from December 15, 2021, Kermode reports that LiDAR scans of the stopes accessible from the 5506 level of the Rye Patch mine have shown an indicated volume of more than 5,547 cubic yards indicating that more than 16,000 metric tonnes or roughly 18,000 imperial tons of ore were extracted from just this one stope. These results were calculated by sectioning the LiDAR scan of the workings and creating approximately 200 different cross-sections on one (1) metre intervals to estimate the volume of the stopes, excluding access and haulage drifts in the old workings. Initial results for part of this one stope from this one level exceed the total lifeof- mine production reported for the Rye Patch Mine from 1871-1881, which is when we believe the stope we have scanned was mined. The Rye Patch Mine was reported to have produced 13,605 imperial tons with a recovered value of $644,626 between the years of 1871 and 1881, as in Couch, B.F., and Carpenter, J.A., 1943, Nevada’s mineral and metal production (1859–1940, inclusive): Nevada Bureau of Mines and Geology Bulletin 38 (originally published as the University of Nevada Bulletin, v. 37, no. 4, pages 125 & 126).

MINERAL TARGETS AND RESOURCES – DISCUSSION

Read a summary of the exploration concept for each target area below.

The deposit is modeled in two separate zones or chutes called the North Zone and South Zone. Both zones rake down to the south-southwest and have a combined measured strike at the surface of 2,930 feet. Each is projected down dip 1/2 the distance of its measured strike at 715 feet for the North Zone and 750 feet for the South Zone.

(1) North Zone

The North Zone is the gold dominated zone where surfaces samples run from 0.04 to 0.118 opt. Au and 1 to 4 opt. Ag.

(2) South Zone

The South Zone includes the Rye Patch Mine where all of the historic production came from and the location where a dump sample assayed 24,438 grams per tonne silver g/t Ag, 2 grams per tonne gold (g/t Au) by fire assay. This zone includes the Alpha Patent, which covers approximately 4 acres at the Rye Patch Mine. The Alpha Patent includes extralateral mining rights for approximately 300 metres of strike around the Rye Patch Mine.

The reader is reminded the Estimate is conceptual. Although historic data confirms silver and gold mineralization at Rye Patch, there is insufficient data to define mineral resources of any category and there can be no assurance that further exploration will delineate one. There are no representations with respect to amenability to, or recoverability of any resources that may be developed with further exploration as there have been no metallurgical studies or investigations on mineralized material from the Rye Patch project.

ABOUT THE RYE PATCH PROJECT

The Rye Patch project is situated in the Mill City Hills of Pershing County in western Nevada along the I-80 corridor and within the highly productive, northeast trending, structural and gold lineament commonly known as the Humboldt Structural Lineament (HSL) or Midas Trough. Numerous other nearby major mines deposits and districts are found within the HSL including the Coeur Rochester, Florida Canyon, Standard, Hycroft – Lewis, Rosebud, Midas, Fire Creek, Hollister, Getchel, Twin Creeks, Sleeper and other mines and deposits. The Property has excellent access to nearby transportation, electrical, natural gas and communications together with a highly skilled and experienced workforce in the nearby towns of Reno, Lovelock and Winnemucca. The Property lies directly on trend with the Florida Canyon and Standard Mines, and is a structural, geological and lithological extension of the highly mineralized and very productive Humboldt Range. Historic exploration indicates the property has excellent exploration potential to develop sediment hosted gold, porphyry and hot spring related gold mineralization similar to nearby mines and deposits in the Humboldt Range.

DEAL TERMS FOR THE RYE PATCH PROJECT

The option provides Kermode with the right but not the obligation to undertake a cash lease of the property. The property comprises patented and unpatented mining claims in Pershing County, Nevada owned by Gold Range 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:

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 2022 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.

Qualified Person Statement

The technical information in this news release has been reviewed and approved by Mr. Robert Carrington, Professional Geologist and Professional Engineering Geologist and a Qualified Person as defined in Canadian NI 43-101 responsible for the scientific and technical information contained herein. Mr. Carrington is not an Independent Qualified Person in respect to the Rye Patch Property or Gold Range Company LLC, the owner of the Rye Patch Property.

This news release relies on information obtained through a review of public and private files, documents, reports and data dating from 1989 through 2022 together with Robert Carrington’s personal experience and knowledge of the subject property and other nearby and / or similar properties. Verification of the presence of mineralization was made by Mr. Carrington during site visits in 2022. Claim title was verified by Mr. Carrington by examining documents filed with BLM and Pershing County.

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

Forward-Looking Statements

This news release contains statements that constitute "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation (collectively herein referred to as "forward-looking information"). Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause Kermode actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.

Although Kermode believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such 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. 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.