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May 03, 2004

Jackson's Arm Drilling Underway

News Release #2004-06

Kermode Resources Ltd. is pleased to announce that Phase 2 of Kermode's Jackson's Arm drill program commenced on April 30, 2004.

The Phase 2 drill program is designed to test granite-hosted gold-mineralized structures in the Road Zone, recently discovered coincident gold and arsenic soil geochemical anomalies in the grid 14 area and sediment-hosted gold mineralization in the northern extension of the Apsy Zone.

Kermode completed a ten-drillhole program on the Beaver Dam Zone during the Phase 1 drilling program. This program confirmed that the gold mineralization at Jackson's Arm displays many of the characteristics found in the Carlin Trend gold district in Nevada, a district that has already produced over 50 million ounces of gold. The drilling also showed that the Beaver Dam gold mineralizing system at Jackson's Arm is thick and robust. Higher grade gold was found to consistently occur at a specific stratigraphic horizon.

Kermode, in a regional geochemical survey completed last summer, initially discovered the Grid 14 coincident gold and arsenic soil geochemical anomalies that will be drill tested in Phase 2. The anomalies were detailed last fall in a program and have never been trenched or drilled.

Kermode's primary exploration focus at Jackson's Arm continues to be on the discovery of high-grade sediment hosted gold deposits similar to those at Carlin, Nevada. There are also opportunities to develop a bulk tonnage gold deposit in the granites and/or the sediments although these are a secondary objective for Kermode at the present time.

Kermode is pleased to acknowledge the financial assistance provided by the Government of Newfoundland and Labrador's Junior Company Exploration Assistance Program.

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"D. Neil Briggs"

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