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Aug 27, 2003

17g/t Gold Discovered at Jackson's Arm

#2003-16

- 17g/t Gold Discovered at Jackson's Arm
- New High Priority Targets

Kermode has received the results of its regional till sampling at Jackson's Arm, Newfoundland. These results comprise the initial portion of Kermode's summer field program at Jackson's Arm seeking Carlin-type gold mineralization. Results of rock, soil and stream sediment sampling are not yet fully available but first phase fieldwork, including prospecting, has now been completed. Follow up fieldwork is planned following receipt of all analyses.

Extensive gold mineralization is known to exist on the Jackson's Arm property from work carried out by BP/Selco in the 1980's. Kermode believes the known gold mineralization indicates the strong possibility of Carlin-type gold mineralization in other parts of the extensive Jackson's Arm property. Kermode is therefore focussing its work on previously underexplored portions of the property to test this model.

Kermode has covered the bulk of the Jackson's Arm property with a till sampling program. Till samples were taken at about 250 m intervals on lines about 500 m apart. The samples were panned to yield a heavy mineral concentrate that was then fire assayed to determine its gold content. A total of 176 samples were taken and 21 of these (13%) contained gold with values ranging from 20 ppb to 16,986 ppb gold (the equivalent of 16.986 g/t gold).

These extremely encouraging results give strong support to Kermode's exploration model for the occurrence of Carlin-type mineralization at Jackson's Arm. The gold in till anomalies occur in previously underexplored areas of the property underlain by calcareous rocks that are potentially favourable for Carlin-type mineralization.

The gold in till anomalies occur in 9 areas, comprised of 5 multi-sample clusters and 4 isolated samples. Kermode is particularly pleased to report that two clusters, including the highest gold value of 16,986 ppb were discovered as a direct consequence of following up anomalous gold and arsenic containing samples from the recently released regional till sampling survey by the Geological Survey of Newfoundland and Labrador.

Kermode has, consequent to these highly encouraging results, acquired additional property. On the southeastern boundary of the Jackson's Arm property an additional 11 claims were acquired covering the strike extension of the prospective rocks.

Kermode's Jackson's Arm property now consists of 149 contiguous claims covering 3,725 hectares of highly favourable geology; high gold, arsenic and antimony values in till; and extensive known gold mineralization.


ON BEHALF OF THE BOARD OF DIRECTORS

"D. Neil Briggs"

DIRECTOR

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