Kermode Resources Ltd. reported a Conceptual Estimate ("Estimate") for the Rye Patch project. This Estimate is compliant with Canadian National Instrument 43-101 S.2.3(2)(a) where Kermode discloses the potential quantity and grade, expressed as ranges, of a target for further exploration. Kermode notes that the potential quantity and grade is conceptual in nature.

There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. This news release states the basis on which the disclosed potential quantity and grade has been determined. The Rye Patch project contains two principal target areas, which Kermode refers to as the North and South zones.

The South Zone includes the historic Rye Patch Mine and the location where Kermode reported fire assay results on July 26, 2022, that returned 24,438 grams per tonne silver g/t Ag and 2 grams per tonne gold (g/t Au). The North Zone covers an area of extensive quartz stockwork veining similar to that seen in the mine workings of the South Zone but has no mine development. Historic surface samples of exposed mineralization in the North Zone have returned values ranging from 0.041 to 0.118 ounces of gold per ton and 1.8 to 4.0 ounces of silver per ton (1.27 - 3.67 g/t Au and 55.99 - 124.41 g/t Ag).

Based on LiDar scanning of the Rye Patch Mine workings in 2022, both the North and South Zones are interpreted to comprise large, "chutes" of mineralization raking down southerly in the plane of the sub-vertical to steeply east dipping Alpha Vein. Periodically mineralization is seen to "bleed" out from the Alpha Vein into favorable sedimentary beds forming sub-horizontal mineralized bodies extending off of the Alpha Vein for short distances. Additional information is provided in this news release and a supplementary report available on SEDAR+ and Kermode's website.

A diagram showing the target areas is provided below. Additional diagrams and details are provided in this new release. HISTORICAL PRODUCTION.

Known production at the Rye Patch Mine averaged just over 36 ounces silver recovered per ton using chloride leaching and amalgamation. Recovery with these methods was typically 75% or less. As reported in the news release from December 15, 2021, Kermode reports that LiDAR scans of the stopes accessible from the 5506 level of the Rye Patch mine have shown an indicated volume of more than 5,547 cubic yards indicating that more than 16,000 metric tonnes or roughly 18,000 Imperial tons of ore were extracted from just this one stope.

The Alpha Patent includes extralateral mining rights for approximately 300 metres of strike around the Rye Patch Mine. The reader is reminded the Estimate is conceptual. Although historic data confirms silver and gold mineralization at Rye Patch, there is insufficient data to define mineral resources of any category and there can be no assurance that further exploration will delineate one.

There are no representations with respect to amenability to, or recoverability of any resources that may be developed with further exploration as there have been no metallurgical studies or investigations on mineralized material from the Rye Patch project.