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Jul 29, 2003

Results Of Regional Till Sampling Survey

#2003-15

- Very High Gold Values at Jackson's Arm
- Carlin-type Mineralization Suggested
- Additional Property Acquired

Kermode is pleased to report that the Geological Survey of Newfoundland and Labrador have recently released the results of a regional till sampling survey in the White Bay area by S. McCuaig. The survey covered about 1,400 square kilometres and 355 1-kg samples of glacial till were taken and analysed. The highest gold value on the survey was 2,360 ppb Au (equivalent to 2.36 g/t gold) and was from a sample taken from Kermode's Jackson's Arm property. The next highest gold value recorded on the entire survey was 47 ppb Au and only 9 out of the 355 samples exceeded 15 ppb Au.

The report is available on the Geological Survey of Newfoundland and Labrador website at http://www.geosurv.gov.nf.ca/online_p/nfld2823/OF_Nfld2823.pdf and concludes with the statement that: "In particular, the association of Au, As and Sb is suggestive of Carlin-type mineralization. The most prospective area is the Jackson's Arm gold zone, which is just north of (the community of) Jackson's Arm."

In the review of the gold, arsenic and antimony values obtained the report makes the following comment: "When taken together with the presence of clastic and carbonate rocks in the Jackson's and Doucer's valleys, the geochemistry is certainly suggestive of Carlin-type mineralization." Discussing the high values found on Kermode's Jackson's Arm property the report states: "A single sample with very high values (sample 1058: 2,360 ppb Au; 2,300 ppm As) of gold and arsenic was found at the western edge of the Doucer's Valley fault complex. Such high values could reflect the nugget effect, but re-analysis of a different split of the same sample yielded similar results."

Kermode has, following the release of these highly encouraging results, acquired additional property. On the eastern boundary of the Jackson's Arm property an additional 22 claims were acquired covering other significant gold and arsenic till anomalies identified by the survey. On the western boundary of the property 24 additional claims were acquired to ensure that all prospective rocks in the immediate area are included in the project. The Jackson's Arm property now comprises 138 contiguous claims covering 3,450 hectares of highly favourable geology, known gold showings and high gold, arsenic and antimony values in till.



ON BEHALF OF THE BOARD OF DIRECTORS

"D. Neil Briggs"

DIRECTOR

No Stock Exchange Has Approved or Disapproved The Information Contained Herein