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News

Oct 04, 2006

Kermode cuts 1.36 g/t Gold over 91.2 metres

Kermode Resources Ltd. is very pleased to announce an intersection of 91.2 metres (estimated approximate true thickness of 91 metres) grading 1.36 g/t Au in the newly discovered Apsy Feeder Zone at Jackson's Arm.

"I am delighted with these initial results confirming the potential of the Apsy Feeder Zone." stated Don Moore, the President of Kermode. "This is a very promising new discovery. We are continuing drilling and now look forward to additional encouraging assay results to move us closer to our goal of developing at least one significant gold deposit at Jackson's Arm".

Phase 4 of the Jackson's Arm drill program is in progress with ten drillholes totaling 1,796 metres completed to date. Kermode's planned extensive Phase 4 drill program is designed to better define tonnage and grade of portions of the extensive gold mineralization on the Jackson's Arm property in Newfoundland.

Kermode's initial focus is to test the crosscutting Apsy Feeder Zone discovered at the end of the Phase 3 drill program. All 10 Phase 4 drillholes to date have encountered the mineralized feeder structure. The 10 holes drilled to date have tested the Apsy Feeder Zone on two north-south sections at 30 to 100 metre intervals along the zone. Analytical results have been received for 7 drillholes and the Apsy Feeder Zone intersections are reported below.
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Hole       From    To     Core     Estimated True     Au
Number     (m)     (m)  Length (m) Thickness (m)*     gpt
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JA-06-42   56.0   81.0    25.0           25          0.85
JA-06-43   80.0  114.0    34.0           34          0.88
JA-06-44  129.5  162.5    33.0           33          0.89
JA-06-45  151.0  172.6    21.6           15          0.80
JA-06-46   10.5  108.4    91.2           91          1.36
JA-06-47   87.5  102.0    14.5           13          0.87
JA-06-48   89.0   98.0     9.0            6          0.72
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* True thicknesses are estimated by assuming the zone dips 45 degrees toward an azimuth of 200 degrees (grid south).

The mineralized Apsy Feeder Zone is oriented roughly grid east-west and dips approximately 45 degrees towards grid south. Previous drilling in this area has almost entirely been oriented towards grid 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. Kermode's ongoing Phase 4 drilling is oriented toward grid north to properly assess the mineralized feeder structure.

Consulting Geologist James Harris P.Geo, a Qualified Person under National Instrument 43-101 guidelines, is supervising the Jackson's Arm drilling program and has reviewed the technical information contained in this News Release on behalf of the Company. Petro Drilling Company Limited of Springdale, Newfoundland is conducting the drilling. Core samples were taken from drillcore which was descriptively logged on site, aligned, marked for sampling and then split in half, longitudinally, using a diamond saw blade. One half the core has been preserved in core boxes for future reference. The samples, comprising the other half of the drillcore were bagged, sealed and delivered directly to the analytical laboratory under the supervision of Mr. Harris. Samples were processed and analyzed at Eastern Analytical Ltd., an assay laboratory based in Springdale, Newfoundland. Samples were crushed with a jaw crusher to 75% passing 10 mesh and split with a riffle splitter to approximately 250 grams. This sample was then pulverized to 95% passing 150 mesh and analyzed for gold utilizing a half assay ton, fire assay technique plus ICP-11. As part of the quality control program being implemented, Eastern Analytical is sending a pulp of 1 in 10 samples to Acme Analytical Laboratories Ltd. of Vancouver BC, an ISO 9001:2000 accredited laboratory for ICPMS check analyses. Analytical pulps and rejects will be retrieved by Kermode and retained.

Kermode acknowledges the financial assistance provided by the Government of Newfoundland and Labrador's Junior Company Exploration Assistance Program. Proceeds from a recent flowthrough financing of Kermode by MineralFields Group of Toronto ( www.mineralfields.com) are being used to fund this drill program.

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

ON BEHALF OF THE BOARD OF DIRECTORS
"D. Neil Briggs"
DIRECTOR

No Stock Exchange Has Approved or Disapproved The Information Contained Herein