North Korea continues to blast South Korea and the U.S. for holding the joint military exercise “Key Resolve.”

The North’s official Korean Central News Agency called the annual exercise a scheme to launch a war against North Korea as it mourns the death of its leader Kim Jong-il.

It also called the South Korea-U.S. military drill an intolerable infringement on North Korea’s sovereignty and dignity.

The news agency reported that the North Korean people and forces are limitlessly prepared to stage a showdown with South Korea and the U.S.

The North’s Pyongyang Broadcasting Station said the joint drill is tantamount to a tacit declaration of war, threatening to take “physical action.”