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KLM: TSX-V
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Aug 15, 2006

Kermode Awards Jackson's Arm Drill Contract

News Release #2006-9

Kermode Resources Ltd. is pleased to announce that it has awarded a drill contract to Petro Drilling Company Limited of Springdale, Newfoundland, a division of Cabo Drilling Corp. The contract covers a minimum of 5,000 metres in Phase 4 of Kermode's Jackson's Arm drill program. One drill will be mobilized to the property before August 15, 2006 and a second drill may be added later.

The Phase 4 drill program will test the recently discovered feeder structure at the north end of the Apsy Zone. This feeder structure is oriented roughly grid east-west and dipping shallowly to the south. Previous drilling in this area was mostly oriented towards the west and would most likely either miss the feeder entirely or cut it at very poor angles resulting in apparent poor continuity or in exaggerated thicknesses. The Phase 4 program will test this structure by drilling angle holes from south to north (at right angles to most previous drilling).

In addition the Phase 4 program will explore selected areas in the search for other cross structures which may be feeders to the known gold mineralization. Several targets have already been selected.

Kermode's primary exploration focus at Jackson's Arm is to delineate the tonnage and grade of the extensive gold mineralization with particular emphasis on the newly discovered cross structures.

Consulting Geologist James Harris P.Geo is the qualified person who has reviewed the technical information contained in this news release on behalf of the Company.

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

ON BEHALF OF THE BOARD OF DIRECTORS

"D. Neil Briggs"

DIRECTOR