Kodiak Exploration Limited

Kodiak Exploration Limited

October 23, 2008 14:43 ET

Kodiak Discovers High Grade Uranium

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 23, 2008) - Kodiak Exploration Limited (TSX VENTURE:KXL)(FRANKFURT:KX3) is very pleased to announce that it is on track with two discoveries of outcropping uranium on its 100% controlled properties located in Quebec's Otish Basin.

On the UR East property, the newly discovered Big Bang outcrop returned multiple readings of 66,000 counts per second (equivalent to more than 10,000 ppm U or 1.18% U3O8) from an extensive uranium-rich shear zone at least three metres wide that occurs near the intersection of several major regional structures. These readings of 66,000 cps are the maximum levels detectable by the RS-125 spectrometer used for the program. The actual values could be significantly higher. The RS-125 Spectrometer is calibrated in the factory against measured standards, and self-calibrates in the field by adjusting to changing levels of background radiation.

The regional structures hosting the outcrop, defined by geophysical magnetic linears, are at least 10 km long and are open in all directions, and have been identified as gabbro dykes similar to those associated with Strateco's Matoush uranium deposit (16.8 million pounds of U3O8) where drill intercepts have assayed as high as 2.13% U3O8 over 15.2 metres. The entire discovery outcrop is uranium mineralized, and another radioactive outcrop has been found 1,100 metres along strike to the east-northeast of the initial discovery site, demonstrating impressive potential for a large, well mineralized system. More than 15 additional priority targets have been identified for follow-up. Analysis of geophysical and field data is ongoing, and more than 90 km of major magnetic structures and numerous radiometric lineaments remain to be investigated on the property. Wet chemical analysis is pending, and drilling is planned to test the economic potential of this significant new discovery.

The Big Bang discovery is located at the base of the unconformity in an erosional outlier of sandstone east of the Otish Basin. The discovery of the Big Bang mineralization at surface confirms that this is an excellent environment for the discovery of shallow, unconformity-style uranium deposits hosted in basement rock. The discovery outcrop is biotite and chlorite-altered, and cut by felsic veins. Stripping of bedrock uncovered a wide zone of sheared black amphibolite stained with yellow uranophane from a large new mineralized structure at surface.

The second discovery, Kodiak's Big Yellow outcrop, is located on the 100% controlled 308 West property, also located in Quebec's Otish Basin area. The Big Yellow is a radioactive 30 x 30 metre 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. Over 90 km of prospective magnetic structures remain to be explored on this property.

"We are extremely excited about these new discoveries," said Mr. Bill Chornobay, Kodiak's President. "These early results clearly demonstrate the potential for additional uranium discoveries in this highly prospective area, and we are very pleased to be working in Quebec, which consistently ranks among the most favorable places in the world for mineral exploration and development. Drilling of these new discoveries in the Otish Basin is planned and, with multiple priority targets yet to be explored, our Uranium Division is on track for achieving it's objectives by unlocking the full value of the energy assets to our shareholders. We look forward to the future exploration results with great anticipation."

Kodiak's Uranium Division has a total of 11 properties containing multiple technically sound uranium targets in the Otish Basin, which is often compared to Saskatchewan's Athabasca Basin in terms of its uranium potential. Concurrently with the issue of this release, a new section on Kodiak's Otish Basin uranium projects has been posted on Kodiak's website.

Kodiak's West Millenium Uranium Project on Track in Athabasca Basin

Kodiak is preparing a winter drill program to test multiple uranium targets on its 100% controlled 213.3 square kilometre West Millenium property in the Athabasca Basin. Kodiak's land package lies within the Key Lake-MacArthur River corridor, one of the most prolific uranium mining districts in the world, and it is located on a parallel northeast structure adjacent only 3 km west of Cameco's Millenium Deposit (56.5 million pounds U3O8).

The property remains virtually unexplored, with only one recorded drill hole testing the basement unconformity. Hole CX-011 was drilled by Cameco in 1988 on the main conductive trend. It intersected 35 m of pyrite and graphite-rich metasediments at the basement interface, along with anomalous uranium values in the basement rock, and pervasive bleaching and alteration of the sandstone above the unconformity.

"Alteration has proved to be the key to finding unconformity-type uranium deposits in the Athabasca Basin," stated Mr. Keith Metcalfe, P. Geo., Senior Project Geologist. "These deposits are surrounded by a strong alteration halo of clay and chlorite, and are usually located within 25 to 75 m of a graphitic basement conductor. Hole CX-011 presents a 35 m wide radioactive structural zone characterized by significant uranium mineralization within graphite/pyrite/grey clay alteration, and abundant slickensides, hosted by a highly attractive pelitic unit. This setting strongly resembles the lithologic and structural features intimately associated with World class unconformity-type uranium deposits in the Athabasca basin. A target defined by a drill hole intercept that contains all the characteristics of a strongly uranium-mineralized system in a World-class setting are extremely rare. Permitting to test the economic potential of this target is underway and drilling will commence soon."

Hercules Update

Kodiak's 2008 exploration program on the Golden Mile and multiple other stand alone gold projects in Ontario's Beardmore-Geraldton gold camp is ongoing. A large batch of assay results is being compiled and interpreted for release in the near future.

The geological information contained in this news release and the geological information on Kodiak's uranium projects posted on Kodiak's website has been reviewed and approved by Paul Gann, senior geologist, who is a qualified person under the definitions established by National Instrument 43-101.

Kodiak is a mineral exploration company with properties located in Canada. You can now view maps, as well as additional photographs, geological details and additional information, on our Web site: www.kodiakexp.com.

On behalf of the board of Directors


William S. Chornobay, Director, President

The statements made in this release may contain forward-looking statements or relate to programs that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

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

Contact Information