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Sep 14, 2005

Kermode Awards Jackson's Arm Drill Contract

News Release #2005-5

Kermode Resources Ltd. is pleased to announce that it has awarded a drill contract to Lantech Drilling Services Inc. The contract covers a minimum of 3,000 metres in Phase 3 of Kermode's Jackson's Arm drill program and will commence prior to September 15, 2005.

The Phase 3 drill program will test recently discovered coincident gold and arsenic soil geochemical anomalies throughout the extensive property, including those on the untested eastern part of the property. A minimum of 15 drillholes are planned.

Kermode completed a ten-drillhole program on the Beaver Dam Zone during the phase 1 drilling program. This program showed that the gold mineralizing system is thick and robust. Higher grade gold consistently occurs at a specific stratigraphic horizon. The gold mineralization at Jackson's Arm displays many of the characteristics found in the Carlin Trend Gold Deposits in Nevada, a district that has produced over 50 million ounces of gold to date. Phase 2 extended the strike extent of the known mineralization and discovered a new zone of gold mineralization while testing a coincident gold and arsenic soil anomaly.

Other than Anomaly 14, the recently discovered coincident gold and arsenic soil geochemical anomalies to be drill tested were initially found by Kermode in regional geochemical surveys last summer. These anomalies have been detailed and are now ready for drill testing.

Kermode's primary exploration focus at Jackson's Arm continues to be on the discovery of high-grade sediment hosted gold deposits similar to those at Carlin, Nevada.

Visit our website at www.kermode.com for more information.

ON BEHALF OF THE BOARD OF DIRECTORS

"D. Neil Briggs"

DIRECTOR


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