Kakanda Development Corp.
TSX VENTURE : KDC

Kakanda Development Corp.

January 19, 2007 10:43 ET

Kakanda Development Corp.: Corporate Reorganization Complete

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2007) - Kakanda Development Corp. (TSX VENTURE:KDC) (the "Company") is pleased to announce that all conditions to the Company's proposed reorganization, including final TSX Venture Exchange ("TSXV") and Supreme Court of British Columbia approval, have been satisfied or waived. The reorganization is expected to become effective on January 19, 2007 (the "Effective Date") at which time the Company will spilt into two companies: 1) Kakanda Resources Corp. (TSXV Symbol: KRC) which will carry out the Company's current business of metals exploration, together with net working capital of approximately $1,350,000; and KDC Energy Ltd., an energy, exploration, development and services company. The common shares of Kakanda Resources Corp. are expected to commence trading on Tier 2 of the TSXV on January 22, 2007 at which time an update will be issued. KDC Energy Ltd.'s common shares will be voluntarily delisted from the TSXV. KDC Energy Ltd. will make application to the TSXV or other exchange to list its common shares once it meets the applicable minimum listing standards of that exchange.

On Behalf of the Board,

Kakanda Development Corp.

Steve Smith, President

Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors identified above and in the corporation's periodic filings with the British Columbia Securities Commission and the U.S. Securities Exchange Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The corporation does not intend to update this information and disclaims any legal liability to the contrary.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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