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Jul 23, 2003

Jackson's Arm Fieldwork Underway; Carlin-Type Gold Potential Confirmed

Kermode Resources Ltd. is pleased to report that fieldwork has been underway for about two weeks on its Jackson's Arm property in western White Bay, Newfoundland. A five-man crew is carrying out a first phase program of rock and till sampling together with geological mapping and prospecting aimed at covering the entire property. The emphasis of this work is on the evaluation of previously unexplored carbonate sediments for their potential to contain Carlin-type sediment-hosted gold mineralization.

Kermode's Jackson's Arm property was last explored in the late 1980's and very early 1990's by BP-Selco who drilled a total of 63 holes in four separate but probably related gold-bearing zones. BP-Selco encountered wide intersections containing gold over a strike length in excess of 4 kilometres. Significantly BP-Selco confined their exploration to late Pre-Cambrian granites and did not systematically explore the overlying Lower Paleozoic sediments even though some of their drilling encountered gold values in these sediments. Some of the more significant gold values reported by BP-Selco are given in the table below.
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Rock Type   Sample     Zone        From  To    Width   Gold
            Type                    (m)  (m)     (m)    g/t
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Sediment    Trench     Apsy                      2.0  11.00
Sediment    Trench     Apsy                      1.0  45.00
Sediment    DDH RB-31  Apsy        67.0  89.5   22.5   1.11
Sediment    DDH RB-32  Apsy        10.0  13.0    3.0   5.07
Sediment    DDH RB-48  Apsy        81.0  87.7    6.7   2.87
Sediment    DDH RB-51  Apsy        94.7  96.8    2.1   7.37
Sediment    Trench     Beaver Dam                1.0  35.66
Granite     DDH RB-9   Road         4.5 118.3  113.8   0.55
Granite     DDH RB-30  Apsy        61.0 115.5   55.5   1.23
Granite     DDH RB-40  Apsy       115.6 183.4   68.1   1.09
Granite     DDH RB-1   Road        80.7  89.8    9.2   2.40
Mylonite    DDH RB-17  Road        84.0  85.5    1.5   1.74
Lamprophyre DDH RB-29  Apsy        65.0  66.5    1.5   5.60
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Dr. Greg Arehart from the Department of Geological Sciences, University of Nevada-Reno visited the Jackson's Arm property in early July and also examined drillcore from the property at the Newfoundland Government core storage facility in Pasadena, Newfoundland. Dr Arehart's view was that the geology of the Jackson's Arm area was such that Carlin-type sediment hosted gold deposits could occur. Dr. Arehart commented that the rocks were: "carbonaceous limestones and dolostones, with interbedded sandy units and a few mafic dykes. Although these rocks are generally somewhat deformed compared to similar lithologies in the Great Basin (Nevada), they appear to retain many of the primary geochemical components that make them favourable hosts. The sandy units should provide important fluid channelways, and the calcareous nature of the rocks makes them permissive reactive host rocks. The presence of carbon is similar to rocks of the Great Basin (Nevada) as well ".

Dr. Arehart also provided Kermode's field crew with guidance on sampling methodologies used in exploration for Carlin-type deposits in Nevada that will be incorporated into Kermode's field techniques.

Given the previous review by Dr. Derek Wilton combined with Dr. Greg Arehart's field visit Kermode is confident that its model of Carlin-type sediment-hosted gold mineralization in Jackson's Arm is valid and provides an excellent exploration opportunity.



ON BEHALF OF THE BOARD OF DIRECTORS

"D. Neil Briggs"

DIRECTOR