Kodiak Exploration Limited

Kodiak Exploration Limited

March 31, 2010 13:14 ET

Kodiak Continues to Intercept Widespread Gold Mineralization at Milestone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2010) - Kodiak Exploration Limited (TSX VENTURE:KXL)(FRANKFURT:KX3) is pleased to announce that exploration drilling at its Milestone Project at the eastern end of the Beardmore-Geraldton gold belt continues to intercept significant widths of potentially bulk-minable gold mineralization. Partial results for drill hole MS10-12, a follow up drill hole completed down-dip from previously announced drill hole MS10-06 (37.2 metres of 0.54 g/t Au) has returned 55.0 metres of 0.61 g/t gold in the Pag shear zone including 26.1 metres of 1.18 g/t Au where the Pag North and Pag South structures are interpreted to intersect (please see map and drill hole table below). Drill hole MS10-12 shows higher grade and greater width than overlying drill hole MS10-06 and also demonstrates the depth potential of the Milestone gold system.

Drill Hole From (m) To (m) Length (m) Au (g/t) Notes
MS10-10 109.7 124.2 14.5 0.41  
  221.0 225.0 4.0 0.46  
  305.0 310.7 5.7 1.13  
MS10-11 213.1 233.6 20.5 0.44  
including 223.1 227.8 4.7 0.94  
  291.8 295.8 4.0 1.12  
  337.7 347.1 9.4 0.31  
MS10-12 161.0 216.0 55.0 0.61 assays pending
including 168.9 195.0 26.1 1.18  
MS10-13         assays pending
MS10-14         VG, assays pending

Drill hole MS10-11, a 200 metre step-out west of previously reported drill hole MS10-09 (25.5 metres grading 0.24 gpt gold) intercepted a cumulative down-hole thickness of 24.5 metres of gold mineralization: 20.5 metres grading 0.45 gpt gold and 4.0 metres grading 1.12 gpt gold. Drill hole MS10-10, drilled a further 200 metres west of MS10-11 intercepted a total of 24.2 metres of gold mineralization in three zones: 14.5 metres grading 0.41 gpt gold, 4.0 metres grading 0.46 gpt gold and 5.7 metres grading 1.13 gpt gold. Two additional drill holes completed to the west of drill holes 10 and 11 indicate that the mineralized shear zone is increasing in thickness: Drill hole MS10-13 cut over 175 metres of sheared Archean granitic rock 275 metres west of hole 10. Drill hole MS10-14, intercepted a 200 metre thickness of shear zone, including two zones containing visible gold, extending the gold mineralized zone an additional 200 metres to the west of hole 13 (please see map below). Collectively, these four drill holes extend the total strike length of the Milestone system an additional 875 metres. Assays for these drill holes are pending.

Kodiak's exploration program at Milestone has quickly achieved significant results: The entire Pag shear zone has a drill defined strike length of over 1,500 metres and has been intercepted to depths of over 200 metres. The size of the system continues to validate the exploration model of a potentially bulk-minable gold deposit. Gold mineralization is remarkably consistent, the shear zone exhibits classic Archean anastomosing characteristics, defining both broad lower grade zones as well as narrower higher grade zones of gold mineralization. The Milestone system remains open along strike and at depth.

As a result of the success of the winter drill program, exploration drilling has been extended. To date, Kodiak has completed over 4,500 metres of diamond drilling at Milestone (11 drill holes). An additional 1,000 metres of drilling has been added to the program, focusing on the western and eastern extents of the system. Planning for systematic in-fill drilling has also begun.

Note: To view the map associated with this release, please click the following link: http://media3.marketwire.com/docs/kxl0331.pdf

Kodiak is also pleased to announce the acquisition by staking of 41 new claims west of Milestone on strike with current exploration drilling. The claims, totaling 520 units, increase Kodiak's landholdings on the Milestone area by over 83 square kilometres.

West Geraldton Update: Assay results for 11 diamond drill holes (WG10-28 through -38) totaling 2,410 metres at West Geraldton have been received and highlights are posted in the table below. This data has been integrated with earlier drill results and will be used to plan further exploration. The drill rig has been moved to the Hercules project where exploration of southern extensions to the vein systems continues.

Drill Hole From (m) To (m) Width(m) Au (g/t)
WG10-28 147.6 147.8 0.2 3.68
WG10-30 15.2 18.3 3.1 2.18
WG10-30 incl. 15.2 15.8 0.6 5.46
WG10-30 203.0 203.3 0.3 9.09
WG10-36 86.7 88.2 1.5 3.21
WG10-36 incl. 87.7 88.2 0.5 8.20

The geological information for the Beardmore-Geraldton regional exploration project has been reviewed and approved by Darren Lindsay, Kodiak's Vice President-Exploration, who is a qualified person under the definitions established by National Instrument 43-101.

Kodiak QA/QC procedures are as follows: Kodiak channel samples are 5 cm wide cut perpendicular to the strike of the vein and/or shear zone from mapped alteration in the footwall continuously through the vein and/or shear zone and into mapped alteration in the hanging wall. Channels are cut with a motorized circular saw to a depth of 20 cm and removed with a hammer. Channel sample spacing is nominally every 20m along strike, dependent on outcrop size and geometry. Sample intervals are selected according to geologic contacts and visible mineralization, placed into a sample bag, and shipped to the assay lab for quantitative analysis of select elements. Kodiak drill cores are split down the center with a typical table feed circular rock saw. Sample intervals are selected according to geologic contacts, visible mineralization, and alteration, placed into sample bags and shipped to the assay lab where they are quantitatively analyzed for select elements. Drill cores are boxed, covered, and sealed at the drill rig and moved to the Kodiak logging and sample preparation facilities by Kodiak personnel. Kodiak angle core holes are directed perpendicular to the mapped dip of the vein therefore reported drill hole intercepts approximate true thickness of the vein. All Kodiak samples are currently being assayed by Activation Laboratories Ltd., Ancaster, ON L9G 4V5 and Accurassay Laboratories Inc., Thunder Bay, ON, P7B 5X5. Blank and standard samples are routinely submitted with all sample batches sent to the lab for assay. Screened metallic assays are routinely run on all anomalous gold results as a check on nugget effects. Samples are routinely sent to other labs for additional checks.

On behalf of the Board of Directors

Brian J. Maher, President and Chief Operating Officer

This release may contain forward-looking statements or statements that 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.

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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