Kakanda Resources Corp.

Kakanda Resources Corp.

February 29, 2008 09:35 ET

Kakanda to Change Name and Elects New Director

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 29, 2008) - Kakanda Resources Corp. ("Kakanda") (TSX VENTURE:KRC) is pleased to announce that shareholders have approved the change of the Company's name to Otish Energy Inc. at Kakanda`s Annual General Meeting February 27, 2008. The name change was effectuated in order to more accurately reflect the future of the company.

The Company is also pleased to announce the election of Mr. Benoit Moreau P.Eng., MBA as a Director of the Company. Benoit Moreau has over 20 years of experience in geology, mining and environmental engineering. Benoit Moreau has managed several projects related to geology, quaternary geology, mining and mineral processing, particularly in electrowinning and technical evaluations. He has published more than 1,000 technical reports. He was also responsible for implementing and conducting strategic studies and R & D projects.

Mr. Moreau replaces Mr. Kenneth MacLeod who did not seek re-election at Kakanda`s Annual General Meeting February 27, 2008. The Board wishes to thank Mr. MacLeod for his valued contribution to Kakanda and wishes him well in his corporate activities with Western GeoPower Corp.

Kakanda Resources Corp. is a resource exploration company focused on exploration and development of Uranium properties in the Otish Basin of Quebec, Canada.

Kakanda recently closed a $3.2 million financing to commence an extensive exploration program on its 100% interest in 1030 claims (approximately 54,800 hectares) and its 50% interest in 1,302 mineral claims (approximately 65,000 hectares) in the Otish basin of Quebec.

Kakanda`s claims in the Otish Basin hold potential to host fault-controlled uranium mineralization similar to that discovered at the nearby Matoush Project and also offer potential for classic unconformity-type uranium mineralization similar to the deposits currently mined in Saskatchewan's Athabasca Basin.

The Otish Basin

The Otish basin is being actively explored for uranium most notably at the Matoush Project where Strateco Resources Inc. has recently announced drill hole intersections of up to 2.13% U3O8 over 15.2m (Strateco Press Release: February 20, 2007). The Matoush fault-type uranium is closely linked to a regional fault that appears to have acted as conduit for uranium bearing fluids. The mineralization generally occurs along the margins of the fault in a highly-fractured and altered environment adjacent to vertical gabbro dykes emplaced within the fault. The uranium mineralization found at Matoush lies well above the basin rim and resembles "Perched bodies" found above the McArthur River and Cigar Lake uranium deposits in the Athabasca basin. The most common uranium mineralization in the Otish Basin is epigenetic with a dominant structural control. The best examples are the Matoush showing in the westcentral part of the basin (currently owned by Strateco), the Beaver Lake showing (owned by Uranerz, now COGEMA)


Gateau Group of Properties- The Gateau Group of properties is located in the western part of the Otish Basin and along its southern contact with the Archean basement rocks. The property consists of four (4) claim blocks: Gateau 1, Gateau 2, Gateau 3, and Gateau 4. Gateau 1 and 2 lie within the Otish Basin and are surrounded by Ditem's Otish Uranium property; Gateau 3 is at the southern edge of the Otish Basin adjacent to Cameco's Camie River property; and Gateau 4 lies within the Otish Basin, east of Strateco's Matoush property. The Gateau property straddles an unconformable contact with the underlying granitic complex and offers good potential for classic unconformity-type uranium mineralization both below and above the unconformity surface. At present, Gateau 3 appears to be one of the best areas on the Gateau property in terms of uranium potential. Drilling on this claim block intersected mafic volcanic rocks and graphitic and sulphide-rich structures near the unconformity with the Otish Basin. On Cameco's adjacent property, graphite is known to be spatially associated with uranium at the Camie River occurrence (0.52% U3O8 over 7.5m, 15.5% U3O8 over 0.5m, and 0.7% U3O8 over 1m). Mafic volcanic rocks are marked by a major E-W magnetic anomaly that transects all of Block C

Ridgestake Properties - The 231-claim Ridgestake properties lie in the southwestern portion of the Otish basin. The Ridgestake 1-5 properties (roughly 10,000 hectares) are located directly south of Cameco Corp.'s 100-per-cent-owned claims located on the southern margin of the basin. Ridgestake 1-5 is abutted to the west by Dios Exploration and is roughly 18 kilometres west-southwest of the Cami River deposit controlled by UEM (jointly owned by Areva and Cameco). The Ridgestake properties are bisected by the Eastmain winter road.

Ridgestake 6 (roughly 2,200 hectares) is located approximately 15 kilometres northeast of the Cami River deposit, abutted on its northern margin by claims held in a Golden Valley Mines Ltd./Lexam Explorations Inc. joint venture located in the central portion of NTS grid 22M13.

The Otish-Tichegami Property -The Otish-Tichegami Property is comprised of 256 claim blocks (approximately 13,500 hectares). Portions of these claims have been owned variously by Ashton, Soquem, Uranerz, and Ditem. The property is located due north of Strateco's Matoush uranium deposit, and roughly 5km directly south of the Eastmain Gold deposit. The property's eastern and southeastern margin run in contact with the Melkior-Santoy Otish West uranium joint venture, and the easternmost third of the property is transected by the Eastmain winter road. The northwestern margin of the property is not currently abutted by any existing claims.

The Matoush-North Property - The Matoush-North Property is comprised of 59 claim blocks (approximately 3,100 hectares). It is located roughly 10km to the northeast of Strateco's Matoush uranium deposit and is abutted on its entire western margin by the southernmost portion of Consolidated Pacific Bay Minerals' "Rabbit Ears" property. Strateco has selected Pacifc Bay's "Rabbit Ears" area as its first drill target of a joint venture option agreement with the company announced on October 29, 2007. The property is bounded on its entire southern margin by the 52nd parallel, and is not adjoining any claims on its northern or eastern margins.

Euro Property - The Euro property covers the southwest margins of the Paskwati Proterozoic sedimentary basin which is an outlier located 45 km southwest of the main Otish Basin.

Tonka Property - The Tonka property is underlain primarily with the underlying granite complex along the southern margin of the basin. It is also cut by a major northeast-trending fault.

Melkior Properties

The properties include a 50-per-cent interest in 972 mineral claims (the Group A claims) and 13 mineral claims (the Group B claims) in the Ottish basin in Quebec, and a 66-per-cent interest in 317 separate mineral claims in the same area.

Group A claims

This claim group consists of three separate blocks: Otish East, West and Beaver Lake. Otish East is located over the eastern portion of the Otish sedimentary basin and consists of 650 claims totalling 34,229 ha.

The Otish West and Beaver Lake blocks are located at the north western margin of the Otish basin. They cover 322 claims for 16,506 ha. The Beaver Lake property is located less than two kilometers north of the Beaver Lake uranium occurrence.

Subsequent to year end, the Santoy-Melkior joint venture undertook a helicopter borne magnetometer and spectrometer surveys. A total of approximately 4,900 line kilometers were surveyed. The data will be interpreted during the winter in preparation for a 2008 summer exploration program.

Group B claims

This group consists of 13 claims known as the Marc-Andre block.. The claims cover an uranium showing of great interest, the Marc-Andre uranium occurrence at the northeast end of the property, and the J. Robert radioactive boulder train in the southwest sector.

Geophysical grids established in the early 1980's by Uranerz Exploration and Mining delineated an east-northeast trending, 100 to 200 meter wide, altered gabbroic dike cut by a series of sub-parallel, north-south to east-northeast trending faults. At the Marc-Andre occurrence, a number of trenches have investigated the highly altered (limonitic, hematitic, tourmaline and epidote rich, siliceous and sericitic) fault breccia adjacent to and within the gabbroic dike. The best grab sample was reported to have assayed 0.26% U3O8 . On the J. Robert area, a boulder train of angular, altered and brecciated radioactive sediments lies adjacent to a geophysically interpreted fault zone.

In 2007, the Melkior Santoy partnership undertook line cutting and a magnetometer survey over the claims. Several test drill holes were completed on the Marc-Andre uranium occurrence. The holes appear to have been incorrectly located and missed the intended target. Sampling and field work undertaken during the 2007 season have contributed to a better understanding of the geology of the property and further work is planned for 2008.

The geologic setting of the Marc-Andre and of the J. Robert appears to be analogous to the Strateco Resources Matoush Property, 20 km to the southwest, where one of the best reported drill intersections to date has yielded 2.1% U3O8 over 12.4 meters (Strateco press release Dec. 21/06).

This style of mineralization shows similarities to unconformity-related uranium deposits in the Athabasca Basin of Saskatchewan.

Group C claims

The geological setting of the Lac Laparre block, optioned from Majescor, is similar to the Marc-Andre block. The claims are located within the northern portion of the Otish sedimentary basin. A helicopter borne magnetometer and spectrometer surveys were flown over the claims for a total of 1,775 line kilometers. The data will be interpreted and will be used for a 2008 field program.


Demand for uranium is directly associated to the level of electricity generated by nuclear power plants. Over the past 10 years, nuclear has been the fastest growing source of electricity generation worldwide. Today, there are more than 400 reactors operating in 33 countries worldwide with about 30 under construction.

Nuclear electricity is a very important preference as it is clean, cost competitive and does not contribute to air pollution. Uranium is sold only to countries which are signatories of the Nuclear Non-Proliferation Treaty, and which allow international inspection to verify that it is used only for peaceful purposes. Customer countries for Australia's uranium must also have a bilateral safeguards agreement with Australia. Canada has similar arrangements.

On Behalf of the Board,

Kakanda Resources 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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