KLM TSX.V April 2014 1 Cautionary Disclaimer: Forward-looking - - PowerPoint PPT Presentation

“EXPLORING FOR GOLD IN NORTH AMERICA” KLM – TSX.V

April 2014

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Cautionary Disclaimer: Forward-looking Statements

Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are “forward-looking statements.” We caution you that such “forward looking statements” involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and

• ther risk factors, as discussed in the Company’s filings with Canadian and American

Securities regulatory agencies. Resource and production goals and forecasts may be based

• n data insufficient to support them. The Company expressly disclaims any obligation to

update any forward-looking statements.

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Kermode Resources Ltd. is a publicly traded mineral exploration company that is committed to the exploration, and development of new prospects in a quest to define a world class gold deposit. Through strategic acquisition and development, Kermode is engaged in advancing projects with significant potential in favourable, safe and proven

• jurisdictions. Kermode intends to build value through advancement of the company’s

core asset; The Eastgate Gold Project – A high grade, low-sulphidation epithermal gold- silver system located near Reno, Nevada. The company’s Jackson’s Arm Gold Deposit is located in Newfoundland, Canada. To date, the company has established an NI 43-101 Inferred Mineral Resource of 18,300,000 tonnes at 0.84 grams per tonne gold or 495,000 ounces gold at Jackson’s Arm.

KLM – TSX.V

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MANAGEMENT TEAM

Kermode's management and geological team have extensive experience and a proven track record in gold exploration, development

• f high profile mines, and finance.
• Donald G. Moore - CEO & Chairman
• Mr. Moore's connection with the mining industry began over thirty years ago while working summers in the Dickinson Mine

(Goldcorp) in Red Lake, Ontario during high school and university. Following graduation from University of Waterloo, Mr. Moore joined the Mining brokerage firm Doherty Roadhouse & McQuaig (which eventually became Midland Walwyn) in 1968, where the foundation of his experience in the Mining investment industry evolved. In 1976 he accepted the challenge of reviving the economy of the mining town of Kirkland Lake, Ontario, where, in his role of Director of Economic Development, he conceptualized, raised funds for and had implemented a number of Geo-scientific programs that became the standard for Ontario. In 1981 he continued to diversify his knowledge and involvement in the mining industry as Director and Executive Vice President of International Corona in Vancouver, B.C. where he worked with David Bell in the early stages of the development of Ontario's prolific Hemlo gold deposits. He then launched a career as an independent consultant to the mining and mining investment industry. His expertise now includes

• rganizing, restructuring, promoting and negotiating complex acquisitions and joint ventures for junior and senior mining companies,

based in North America and in Europe. Mr. Moore is currently a director and officer of several other public companies, including Rupert Resources. D. Neil Briggs – Director

• D. Neil Briggs – Director
• Mr. Briggs has a Bachelor of Science degree in geology from the University of Durham, England. He held a senior exploration

position with Falconbridge Nickel Mines Limited, during which time he established the company's regional exploration office for the Atlantic Provinces of Canada. Starting in the early 1980's, Mr. Briggs held senior management positions with Manitoba Mineral Resources Ltd. (MMR) ultimately serving as president from 1993-1995. While at MMR, Mr. Briggs managed the company's 27% interest in the Trout Lake Joint Venture and annually negotiated the sale of MMR's share of production from the 2,500 ton per day Trout Lake Mine resulting in annual revenues of some $18 million. He also represented MMR on the Board of Tantalum Mining Corporation of Canada (Tanco), North America's only tantalum producer. Mr. Briggs is a director and officer of several other public companies, including Rupert Resources, and Kermode Resources.

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MANAGEMENT TEAM CONT.

• Steven Chan – Director
• Mr. Chan was formerly vice-president of Cambridge House International Inc. He was instrumental in building Cambridge House into

Canada's leading investment conference company, serving the mining and natural resource industry. At Cambridge House, he worked with many aspects of the mining industry, including public companies, brokerage firms, fund managers, letter writers, analysts and retail investors. Currently, he consults with public companies in the areas of financing and public relations. Mr. Chan has been an active director of Expedition Mining Inc. since 2003 and also owns and operates a private company.

• Ricardo Ho - CFO
• Mr. Ho holds a bachelor of commerce degree from the University of British Columbia. For the past seven years he has been working

in the junior mining exploration industry providing various accounting services. He has been a consultant to the company throughout that time. Mr. Ho is also the CFO of a number of other public mineral exploration and development companies.

• Adrian O’Brien – Director
• Mr. O'Brien has acted in various capacities with publicly traded Mineral Exploration Companies, including officers and directors

responsibilities, since 1996 and has substantial experience at a senior management level. He has played an integral role in large scale financings, assisted various companies with corporate and financial disclosure as well as corporate development. He has arranged joint ventures, successful property acquisitions and divestitures, and worked with companies through the IPO stage. He began his career in 1996 carrying out Investor Relations for Novawest Resources Inc. He became Manager of Corporate Communications for the company in 2004, and assumed the role of Vice President in 2006. During his time with Novawest, the company saw a name change to Apella Resources Inc. and Mr. O’Brien played an integral role in the acquisition and development of their large scale Vanadium-Titanium-Iron assets. In 2009, Mr. O’Brien took the position of President/CEO and Director of Pro Minerals Inc. He continued with both Pro Minerals and Apella Resources through 2010, at which point he left both organizations to co-found “Red Rock Public Relations”, a boutique firm providing PR and visual media services to public and private corporations. In 2011, Mr. O’Brien was appointed to the Board of Directors of Kermode Resources Ltd. and currently holds the position of President

• f the company. In 2013, Mr. O’Brien was appointed a Director of the Prospectors and Developers Association of Canada.

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PROJECTS

• EASTGATE GOLD PROJECT – HIGH-GRADE EPITHERMAL

GOLD-SILVER - NEVADA, USA

• JACKSON’S ARM GOLD DEPOSIT– NEWFOUNDLAND, CAN
• GOLD FOCUSED PORTFOLIO
• PROJECTS LOCATED IN SAFE, PROVEN JURISDICTIONS
• HIGHLY PROSPECTIVE ADVANCED-EXPLORATION TARGET THAT IS HIGH

GRADE , DRILL-READY AND FINANCED

• 43-101 COMPLIANT 495,000 OZ RESOURCE AT JACKSON’S ARM

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EASTGATE GOLD PROJECT – WHY NEVADA?

WHY NEVADA……

• Nevada is home to more than 20 producing gold mines
• In 2011, Nevada produced $8.5 Billion in gold
• Gold production in Nevada accounts for 75% of all gold mined in the US
• If Nevada were a country, it would rank #4 in the world for gold

production

• Nevada is home to the lowest cash-cost producing gold mines in the

world

• Presence of leading international mining companies
• Dry climate and year round access

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EASTGATE GOLD PROJECT – WHY NEVADA?

WHY NEVADA……

• Nevada is the cheapest location in the world to find gold and has the

world's highest success rate of new gold discoveries

• Discovery rates have averaged 7 million ounces per year during the last

year 30 years

• Nevada is consistently ranked among the most favored jurisdictions in

the world for mineral exploration and mine development, on the basis of geological, regulatory, and economic criteria, by research organizations such as the Fraser Institute

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EASTGATE GOLD PROJECT – WHY NEVADA?

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Nevada – Top source of US domestic gold

GOLD – THE RETURN TO A BULL MARKET

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As of August 2013, gold has resumed an upward trend

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EASTGATE GOLD PROJECT – NEVADA, USA

LOCATION

• LOCATED APPROX. 25 MI(40KM) NE OF RAWHIDE MINE, 55 MI(88KM) E

OF FALLON, NV

• 101 CLAIMS OR 2020 ACRES – 817 HECTARES
• ACCESSIBLE VIA DIRT ROAD, LESS THAN 5 MILES(8KM) SOUTH OF US

HWY.50

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EASTGATE GOLD PROJECT – NEVADA, USA

HISTORY

The Eastgate property is situated just a short distance from the original Middlegate US Pony Express Station, along the US Pony Express Line

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EASTGATE GOLD PROJECT – NEVADA, USA

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History Continued…

• Discovered by prospectors in the late 1800’s, small scale mining began around

the turn of the 20th century.

• Site of multiple historic mines: Gold Ledge, Double Eagle, Eastgate, Sunny

Jim and Central.

• Main Eastgate vein was partially opened up and intermittently mined at shallow

depths for approximately 1500 feet (457M) along strike and vertically for 300 (91.4M).

EASTGATE GOLD PROJECT – NEVADA, USA

HISTORY CONT…

• By 1920, miners had reportedly extracted roughly 20,000 oz of gold

from workings on two main levels

• Additional production between 1935 and 1957. According to a 1998

report, 3247 oz of gold and 38,152 oz of silver produced during that time

• Eastgate lay dormant for many years until interest in exploring the

region increased again in the late 1980’s

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EASTGATE GOLD PROJECT – NEVADA, USA

EXPLORATION AND DEVELOPMENT TIMELINE

• 1987 - Acquired by Freeport McMoran. Freeport explored the

property looking for large “Carlin Style” low grade, bulk tonnage

• deposit. Drilled 7 RC Holes with varied results
• 1988 - Acquired by US Borax . Also focused on low grade, bulk

tonnage model. Exploration concentrated near vein system. Drilled 10 RC Holes in 1988 and results included discovery hole: EG-4 –15’

• f 0.34 opt (4.57 m of 11.66g/t) Au
• US Borax dissolves Exploration Division and the Eastgate Property is

acquired by Cabot Resources. Cabot was created by an ex-US Borax Geologist in order to continue to pursue the potential of Eastgate

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EASTGATE GOLD PROJECT – NEVADA, USA

EXPLORATION AND DEVELOPMENT TIMELINE

• 1989-90 - Cabot drills the discovery section: A fan of RC Holes above

and below US Borax’s discovery hole: EG-4 – 15’ of 0.34 opt (4.57 m

• f 11.66 g/t) Au. Highlights included CG-5 – 10’ of 0.25 opt (3.05 m
• f 8.57 g/t) Au, CG-3 – 10’ of 0.11 opt (3.05 m of 3.77 g/t) Au, CG-2

– 15’ of 0.30 opt (4.57 m of 10.30 g/t) Au and CG-1 –10’ of 0.22 opt (3.05 m of 7.58 g/t) Au (not true thicknesses)

• Cabot was intent on carrying out a core-drilling campaign to follow

up the discovery section however they were unable to secure the necessary funding to do so. The property was held by Cabot for nearly 10 additional years and eventually allowed to lapse near the bottom of the gold market, without any further drilling being carried

• ut

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EASTGATE GOLD PROJECT – NEVADA, USA

EXPLORATION AND DEVELOPMENT TIMELINE

• 1998 –Based on Ken Snyder’s recommendation, Franco Nevada

attempts but fails to acquire the ground

• Local prospectors manage to stake Eastgate
• The project is eventually Joint Ventured with Echo Bay Mines
• 1999 - Echo Bay - Low grade, bulk tonnage model - Drills 4 RC holes

which fail to test the vein system

• 2012 – After remaining in private hands for over a decade, Kermode

reaches a deal with Blueridge Gold to move Eastgate forward

• 2013 – Kermode secures $2.45 million financing for Eastgate,

through a deal with Demerara Gold, a private company. The deal will include a $1 Million exploration program

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EASTGATE GOLD PROJECT – NEVADA, USA

EXPLORATION HIGHLIGHTS

• Main Eastgate Vein – Traceable for well over 2000 feet(610 m)
• 29 Historic grab samples range from 0.03 opt Au to 3.19 opt Au (1 – 109

gpt Au) and average 0.584 opt Au (20.02 gpt Au)

• Gold Ledge Mine - Shallow depth chip sample – 0.876 opt Au over 4.5

feet (29.74 gpt Au over 1.37 m)

• Limited RC Drilling resulted in the discovery section which contained

notable high-grade intersections:  US Borax EG 4 - 15 feet of 0.34 opt (4.57m of 11.66g/t) Au  Cabot Resources CEG 1 - 10 feet of 0.22 opt (3.05m of 7.58g/t) Au & 5 feet of 0.073 opt (1.52m of 2.5 g/t) Au  Cabot Resources CEG 2 - 15 feet of 0.30 opt (4.57m of 10.30g/t) Au  Cabot Resources CEG 5 - 10 feet of 0.25 opt (3.05m of 8.57g/t) Au  Cabot Resources CEG 3 – 10 feet of 0.11 opt (3.05 m of 3.77g/t) Au

*Historic information includes drilling summaries, assay laboratory reports, surface sampling and mapping. Details of the sampling methods, handling, and quality control methods are unknown, and the historic drilling results being disclosed cannot be verified for the purposes of NI 43-101. Therefore this information is not NI 43-101 compliant and should not be relied upon for investment purposes. This information, however, is a useful guide for current exploration by the Company's geologists.

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EASTGATE GOLD PROJECT – NEVADA, USA

GEOLOGY

• Eastgate has high surface gold values with a large area of intense

alteration surrounding multiple veins thought to be of Miocene age

• The known deposits are quartz-adularia-sericite type veins hosted in a

Tertiary volcanic ashflow tuff

• Vein system has important geologic similarities to multi-million ounce,

high-grade gold deposits of the northwestern Great Basin that contain bonanza-grade veins, notably Midas (Ken Snyder mine; approx. 3.7 million mineable oz @ 1.3 ounces per ton (44.57 gpt) Au

• Eastgate exposes the upper parts of a volcanic-hosted low sulphidation

epithermal vein system

• Eastgate offers the potential for discovery of high-grade vein

mineralization similar to Midas

*Historic information includes drilling summaries, assay laboratory reports, surface sampling and mapping. Details of the sampling methods, handling, and quality control methods are unknown, and the historic drilling results being disclosed cannot be verified for the purposes of NI 43-101. Therefore this information is not NI 43-101 compliant and should not be relied upon for investment purposes. This information, however, is a useful guide for current exploration by the Company's geologists. *Christopher Pratt, P.Geo, is the qualified person who has reviewed this technical information.

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Eastgate – Vein at surface Midas – Vein at surface

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Midas – Ken Snyder Mine - Newmont

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Midas – Colorado Vein

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EASTGATE GOLD PROJECT – NEVADA, USA

EASTGATE CONCLUSIONS

• High-grade, low-sulphidation, epithermal gold-silver system
• Striking similarities to well-known deposits such as Newmont’s

Midas/Ken Snyder Mine, Aurelian’s “Fruita Del Norte”

• Majority of work on Eastgate had taken place in times of low gold prices

and tough market conditions

• Other than Cabot, previous work did not test the low sulphidation

epithermal gold-silver characteristics. Freeport, USB, and Echo Bay sought a low grade bulk tonnage deposit

• Northern and Southern potential extensions of system remains untested
• Eastgate has been privately held and not been available for option during

the recent (last 10 years) buoyant gold markets The target has never been systematically tested at depth or along strike, and core drilling has never been carried out on the project

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SHARE STRUCTURE

• Issued and Outstanding: 65,397,373
• Warrants: 8,000,000 ($0.125 May 15, 2014)
• Warrants: 750,000 ($0.30 April 1st 1015)
• Options: 3,378,000
• Fully Diluted: 77,525,373
• 52 Week Range: $0.01 - $0.065
• Current Share Price (April 2014): $0.03
• Market Cap: $2.0 M – Cdn

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THE OPPORTUNITY

Opportunity for a “BIG WIN” The “Right” type of project at the “Right” time

• Eastgate represents an exceptional opportunity for a major gold

discovery in one of the top jurisdictions in the world – Nevada, USA

• “Grade is King”– Eastgate is High-Grade and Drill-Ready
• With $2.45 million financing now in progress, Kermode plans to

be carrying out $1 Million in exploration in the coming months

• Kermode – Small (less than $20 Million) $2.0 Million Market-Cap,

plenty of upside

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“EXPLORING FOR GOLD IN NORTH AMERICA” Contact: Donald G. Moore Chairman & CEO Tel: 604-687-7178 Toll Free: 1-800-613-7083 info@kermode.com www.kermode.com

KLM – TSX.V

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