PDF VERSION: https://cdn-ceo-ca.s3.amazonaws.com/1j1ttv1-2024-04-16-KLM-VIGH%20GRAPHITE%20project%20notes.pdf 

To: PUBLIC

From: Peter Bell, CEO Kermode Resources Ltd (TSXV:KLM)

Date: April 16, 2024

RE: VIGH GRAPHITE project notes

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PROJECT FOLDER:
https://drive.google.com/drive/u/1/folders/1rTRVtymGlI3PXrMiM9P8g4c5qRNA5qWf

Figure 1: Photograph of Graphitic Carbon (Gr) in Sample 24-09

Figure 2: Field Photograph of location of Sample 24-09

Figure 3: Map

GOOGLE MAP

https://www.google.com/maps/d/viewer?mid=1KHgkJk6-1tFE7ZGYPlWIUbbbvQYxSXfM&ll=50.318648439283045%2C-118.3679228064259&z=18


DEAL TERMS

https://www.sedarplus.ca/csa-party/records/document.html?id=1dc98eeb1d32a3878b1e88891364d4cf93689da3055d53e944fc57cdeb3f385c


FIRST ASSAYS

https://www.sedarplus.ca/csa-party/records/document.html?id=5266bcefca438def8bb5af197f2fcad70ef0708896a9bf8de0fe80d422e2329d

Victoria, British Columbia - (December 8, 2023) - Kermode Resources Ltd. (TSXV: KLM) ("Kermode" or the "Company") reports the first assays for select surface samples from the VIGH GRAPHITE project. Following the discovery of visible graphite mineralization, further field sampling was recently carried out and Kermode is waiting for additional results.

The sample results are listed in the table below.


SECOND ASSAYS

https://www.sedarplus.ca/csa-party/records/document.html?id=5c94b253076c62148e0892edf956108513775b780789caf22c1b33df9ac7e43b

Victoria, British Columbia - (January 15, 2024) - Kermode Resources Ltd. (TSXV: KLM) ("Kermode" or the "Company") reports results from surface sampling at the VIGH GRAPHITE project. Kermode plans to do additional testing on this project.

Two samples included significant results with 21.2% Graphitic Carbon (% Gr) in sample 24-09 and 13.2% Gr in sample 24-05. The results for all nine samples are provided in the table below, including Graphitic Carbon, Total Carbon C(TOTAL), and more.


2024 ASSESSMENT REPORT

https://www.sedarplus.ca/csa-party/records/document.html?id=b9aa1cfb3dc5748283fb1ec6e2b1810bb72d2c07ed08c5f900fe00feeb2e0033

To access the property from Vernon follow BC Highway 6 East to Cherryville (40 km). From Cherryville, follow Sugar Lake Road north for 16 kilometers. Just before the lake, turn right onto Kate Creek FSR. At the 3 Kilometer mark, take the right turn onto Kate Outlet FSR. Follow Kate Outlet for 15km to enter the property from the western boundaries. The network of logging roads allows access onto various portions of the property.

The property covers various topography, from plateau areas (central and western section) to moderately steep sub-mountainous areas (eastern portion). The project varies from 1,350m elevation in the western portions to a peak elevation of 1,890 m in the east. The terrain map can be found as Figure 3 below. The variable topography of the property results in a mixture of poor-moderate rock outcroppings in the plateau sections, and moderate to good outcroppings in the steeper sections.

The property has seen moderate logging, with clear-cut blocks accounting for 30% of the area. Based on reports of surrounding properties, there are likely older growth stands of pine, spruce, and fir.

The elevation of the project and local region results in a cool climate with a slightly deeper winter snowpack than valley bottoms. Summers are warm, long, and dry. Portions of the property may be accessible as early as April and remain accessible through to October.

Cherryville has very limited services (fuel, food, and simple hardware.) Limited services, including room, board, and fuel, are available in Lumby, BC (population < 2,000) located 15 minutes west of Cherryville. Vernon, with a population of about 40,000 in the city and immediate surrounding area, is a larger supply centre, located 30 km west of Lumby on Hwy 6. Most services needed for exploration are available in Vernon. The closest full-service airports are in Kelowna or Kamloops.

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The property sits at a contact between Nicola group Sedimentary rocks and Monashee Group metamorphic rocks. The bulk of the property covers Protezoic to Paleozoic metamorphic rocks of the Monashee Complex. These consist mostly of layered paragneiss, schist, and quartzite.

The western section of the property covers the Mesozoic sedimentary rocks of the Nicola Group. These rocks can include Sedimentary facies, such as shale, argillite, siltstone, sandstone, phyllite, tuff. There are also local polymict conglomerate, limestone, greenstone and chloritic phyllite, which are part of the southern extents of the Quesnellia Terrane.

The author visited several outcropings in the central portion of the Property where limonitic-stained schists, quartzites, and gneiss can be found. These can be calcite rich, and often host sulphide mineraization mostly consisting of pyrite. Calc-quartz veins have also been observed. The schists here appear to host visible graphite mineralization.

The style of the graphite mineralization needs further investigation. The nearest graphite occurrence to the Northwest, the BC Sugar East MINFILE (082LSE084), is described as underlain by metamorphic rocks of the Proterozoic to Paleozoic Kootenay (Shuswap Assemblage). These are described as being high grade metamorphic rocks consisting primarily of gneiss, with minor quartzite intruded by a fine to medium-grained diorite. At BC Sugar East, graphite mineralization from 2.18-5.06% carbon is hosted in the Schists as well.

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The 2023 program was initially planned by the claim owner to be a physical work program consisting of rock crushing and gravity concentration of the pulverized rock. Upon the discovery of visible graphitic mineralization, analytical sampling work was recommended. The second site visit by the author and the property owner was a follow up to verify the locations of the samples, access, physiography, to identify the geological environment, and to identify rock types for this report. The entire 2023 sampling program was carried out late in the field season, so no follow up work had been done since then.

The program was successful in the identification of graphitic carbon on the property. Two sample sites were selected by the property owner for sampling. While both of these sample locations appear to be geologically similar, consisting of limonitic-stained schists that host graphite, reviewing the analytical results it is clearly apparent to the author that the Deep Blue Sky location has grater exploration potential for graphite. Only one sample at the Ruth location assayed above 1% Graphitic Carbon, sample 8. Meanwhile at the Deep Blue Sky the only samples that assayed below 1% were samples of Quartz/Calcite that were tested for other minerals! Most of the samples at Deep Blue Sky assayed above 1% with highs of 13.55% (1st batch sample 23-20-03) and 21.3% (2nd batch sample 9).

The positive results from the initial rock sampling warrant immediate follow-up. The bulk of historical exploration in the Monashee/Cherryville area has focused on gold, however, graphite is not uncommon with BC Sugar East and Sugar West located nearby. It would be highly beneficial to further research similarities between these showing and the Deep Blue Sky.

With Deep Blue Sky being a new showing of graphitic carbon, further work is warranted. The work should include additional prospecting and rock sampling in the area with a focus on graphite. Further rock analysis should be carried out to identify flake size and quality of the graphite. Additionally, during the brief site visit it was difficult to observe whether there was a distinctive distribution of the graphite in the outcrops. The outcrop should be hand trenched, mapped in detail, and chip/channel sampled. This would help narrow down possible zones or vein-like structures of graphitic areas. Due to properties of graphite mineralization, geophysics could be used to pinpoint anomalies and narrow down exploration targets. When enough field exploration results have been obtained, a possible program of trenching and drilling could be carried out to verify depth and extent of the graphite mineralization

EOM.

National Instrument 43-101

Standards of Disclosure for Mineral Projects

Mr. Robert Carrington, Professional Geologist and Professional Engineering Geologist, serves as the qualified person responsible for the technical information contained in this document dated April 1, 2024, and titled “2024 Assessment Report on the Vigh Graphite Property Rock Sampling”.

Information in the document is not necessarily indicative of the continuity and grades of mineralization on the property.

This is not a technical report, but the document contains all technical information required to be disclosed to make the document not misleading.

Mr. Carrington has not visited the project and has no prior involvement with the property.

Mr. Carrington is a registered member of the Society for Mining, Metallurgy and Exploration as professional geologist and engineering geologist in Nevada with relevant experience as a mineral exploration consultant and he is a “qualified person” for purposes of the instrument.

Mr. Carrington is non-independent from the issuer Kermode Resources Ltd. (TSXV:KLM) because he works under a shares-for-services agreement and has optioned a project called TONYA to Kermode separately from this project.