Following a request by Kernow to the DEGE to temporarily suspend work commitments on Kernow’s Boticas and Alto Sobrido Exploration Contracts and the Jales Experimental Mining Contract (Kernow 49%) Kernow has received permission from the Direcção-Geral de Geologia e Energia, (DGGE) a division of the Portuguese Ministry of Economy and Innovation, that it can, should Kernow wish, temporarily suspend its exploration and development activities for a period of six months from 29 December 2008 until 30 June, 2009.

At the end of this period if Kernow wishes to further suspend its work commitments the DGGE has informed Kernow that it may consider the possibility of rescinding the Exploration Contracts and Experimental Mining Contract.

Kernow has, to date, fulfilled its work commitments relative to the Boticas and Alto Sobrido Exploration contracts for 2008. Work is ongoing relative to the Jales property. A brief description of the properties and work commitments are provided below.

Jales-Gralheira (Gold/Silver)
The drilling program announced in October (see News Release dated 23, October, 2008) has been terminated following the drilling of one hole of 220 meters in length. The hole intersected the two mineralised zones as anticipated. The core has been split and the mineralised sections sampled and sent for assay at OMAC Labs Ltd. The results are expected shortly. The work was completed on behalf of the Kernow-St. Elias Joint venture (Kernow 49%).

The Experimental Mining Contract requires that Euros 750,000 be expended on the property from May 2007 until May 2010.

Alto Sobrido (Gold/Antimony/Coal)
The Alto Sobrido property covers na area of 15.192 km² and its southern border is located within 3 kilometres of the last producing coal mine in Portugal. It also covers a series of past producing antimony deposits associated with gold mineralisation that Kernow has sampled in 2007 (see News Release dated 14, November, 2007).

Kernow will be required to expend Euros 45,000 on the property from May 2008 to May 2009.

Boticas (Gold)
Since completing a 3 hole drill programme on the property in January, 2008 no work has been conducted on this property since August of 2008 when reconnaissance mapping was undertaken on the easterly extension of the main deposit. Work commitments for 2008 were completed. Kernow has been granted a one year extension to the Licence for the property which now expires in October, 2009. Kernow will be required to expend Euros 45,000 on the property from October 2008 to October 2009.

Alcaçovas (Copper/Gold)
Kernow has withdrawn its application for the Mineral Rights to this area. About Kernow
Kernow is a gold explorer based in Porto, Portugal, with a portfolio of prospective gold and antimony/gold projects including the Jales/Gralheira project (49% Kernow), the Boticas project (100% Kernow) and the Alto Sobrido project (100% Kernow).

Kernow’s ongoing focus will be on its Portuguese properties. Portugal is a European Union country with stable politics, a skilled labor force and excellent infrastructure. This infrastructure includes some of Europe’s newest highways, abundant power and existing rail and port facilities. All of Kernow’s properties are close to roads, power and water supplies.

Qualified Person
The data contained in this News Release has been reviewed and verified by Kernow’s President, Alan F. Matthews, C.Eng., a “qualified person” for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian securities administrators.