Kirrin Resources Inc.

Kirrin Resources Inc.

June 17, 2009 07:00 ET

Kirrin Resources Enters Option Agreement With Kodiak for Otish Basin Uranium Property Portfolio

CALGARY, ALBERTA--(Marketwire - June 17, 2009) - Kirrin Resources Inc. (TSX VENTURE:KYM) today announced that it has entered into an option agreement with Kodiak Exploration Ltd. ("Kodiak") allowing it to earn up to a 70% interest in Kodiak's Otish Basin uranium property portfolio located in Quebec, Canada. The transaction is subject to contract and to regulatory approval.

Kirrin President and CEO Derek Moran commented: "In October 2008, Kodiak announced two exciting discoveries in Quebec's Otish Basin. The geological setting is similar to that associated with Strateco's Matoush uranium deposit. This agreement doubles Kirrin's uranium exploration program and is the first acquisition resulting from Kirrin's extensive review of development opportunities in Canada."

Kodiak has an extensive land package covering 428.7 square kilometres of the Otish Basin that includes a wide range of geological settings, target types, showings and geochemical anomalies. Much of the ground formerly belonged to Uranerz, a large European uranium company that explored here in the 1970s, but allowed its claims to lapse after uranium prices collapsed in the early 1980s. On October 23, 2008, Kodiak announced two discoveries of outcropping uranium on its 100% controlled properties located in the Otish Basin. On the UR East property, the newly discovered Big Bang radioactive zone returned multiple readings of 65,500+ counts per second (cps) from an extensively overburden covered uranium-rich shear at least three metres wide that occurs near the intersection of several major regional structures. These readings of 65,500+ cps are the maximum levels detectable by the RS-125 spectrometer used for the prospecting program. A grab sample from the Big Bang zone assayed 8,130 ppm uranium (0.96% U3O8). As well, five other radioactive outcrops were found in the vicinity, including one that is about 1.1 km along strike to the east-northeast of the Big Bang discovery. The second discovery, Kodiak's Big Yellow outcrop, is located on the 100% controlled 308 West property, also located in Quebec's Otish Basin. The Big Yellow is a radioactive 30 m x 30 m outcrop of flat-lying, rusty conglomeratic sandstone that gave scintillometer readings up to 10,000 cps. This outcrop is located close to the intersection of two magnetic structures. These structures strike NE and NNW, and are approximately 7 and 8.5 km long respectively. A NE-trending gabbro dyke was found near the discovery outcrop, confirming the magnetic interpretation, and indicating a geologic setting very similar to Matoush. Kodiak also reported in its October 23, 2008 news release that its airborne geophysical surveys and 2008 exploration had identified 15 other targets for follow-up at the UR East property and that there are over 90 km of prospective magnetic structures that remain to be explored on the 308 West property.

Kirrin may earn an initial 51% interest in the Otish Basin portfolio by spending $2.8 million on exploration by December 31, 2012, and may earn a further 19% interest by spending a further $1.5 million by December 31, 2015, making an aggregate commitment for a 70% interest of $4.3 million. Kirrin will be the operator of the project. Upon Kirrin fulfilling its earn-in obligations, the parties will form a 70: 30 joint venture with each partner contributing its pro-rata share of future expenditures. If either party dilutes its interest to less than 10% in the joint venture, its interest will be converted to a 1% net smelter royalty. At March 31, 2009, Kodiak had recorded $2.5 million expenditures on the Otish Basin portfolio.

Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Kirrin on the projects mentioned herein. As the Qualified Person, he has prepared or reviewed the technical information for this release.

Additional information relating to Kirrin is available on Kirrin's web site at and on SEDAR at Additional information relating to Kodiak's Otish Basin portfolio is available at Kodiak's web site

Kirrin is engaged in uranium exploration in Newfoundland & Labrador and in the expansion of its portfolio through acquisition, merger, strategic partnership or joint venture. Its strategy is well defined: enhancing shareholder value by combining technical expertise, corporate development skills and professional management. Kirrin's shares trade on the TSX Venture Exchange under the symbol KYM.

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Forward-looking information: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those expressed or implied by such forward-looking information. Risks include delays in obtaining or failure to obtain regulatory approval. Except as required by applicable securities legislation, the Company undertakes no obligation to publically update or revise forward-looking information, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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