Kodiak Exploration Limited

Kodiak Exploration Limited

September 13, 2010 12:20 ET

Kodiak Drilling Intercepts Increased Gold Grades and Widths at Milestone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2010) - Kodiak Exploration Limited (TSX VENTURE:KXL)(FRANKFURT:KX3) is pleased to announce drilling results from its Milestone gold project in the Beardmore-Geraldton gold camp of northern Ontario. These diamond drill holes have the highest grades and some of the thickest intervals of gold mineralization seen to date at Milestone, underscoring the gold resource potential of this robust system. Drill hole MS10-38, located in the Eastern mineralized zone, intercepted 29.0 metres grading 2.72 gpt gold including 13.5 metres grading 4.34 gpt gold. This drill hole shows that the grade of this potentially bulk minable gold deposit could be much higher than previously thought. The average width of the Milestone system continues to expand as well: Drill hole MS10-39, also in the Eastern mineralized zone, cut 53.5 metres grading 1.08 gpt gold. A drill hole table with the latest results and a drill hole location map are shown below.

The Milestone gold system begins at the surface, has had limited drill testing below 250 metres and has been traced along strike for over 2,500 metres. The system is open in all directions; the tonnage potential is large and remains unconstrained. The geometry of the deposit, starting at the surface and dipping at moderate angles, supports potential open pit mining. With Milestone, West Geraldton and Hercules in the Beardmore-Geraldton gold camp and the Magino Mine property (via the pending Golden Goose acquisition), Kodiak is in an excellent position to rapidly grow its gold asset base. Kodiak's business plan has put in place the resources, both monetary and personnel, to aggressively pursue all these projects simultaneously.

Hole ID From (metres) To (metres) Length (metres) Gold gpt Zone
MS10-35 120.7 146.0 25.3 0.54 Pag N
MS10-36 117.5 150.0 32.5 0.80 Pag N
includes 143.0 150.0 7.0 2.11  
MS10-37 117.0 146.7 29.7 0.63 Pag N
includes 134.2 139.7 5.45 1.05  
MS10-38 145.5 174.5 29.0 2.72 Pag N
includes 152.0 165.5 13.5 4.34  
and includes 159.5 160.6 1.1 24.91  
MS10-39 142.0 195.5 53.5 1.08 Pag N
includes 173.0 185.0 12.0 2.03  
MS10-40 174.0 205.0 31.0 1.09 Pag N
includes 188.0 200.0 12.0 1.93  

These drill holes confirm the continuity and uniform nature of gold grade distribution within the Milestone system. The grades observed, 0.5 to over 2.0 gpt gold, compare favorably with grades seen in other bulk minable gold deposits such as Osisko's Hammond Reef and Canadian Malartic gold deposits. The current Phase two drilling program has been expanded by an additional 4,000 metres to allow both resource definition drilling and exploration of the extensions to the deposit. In conjunction with the expanded drilling program, planning for preliminary metallurgical testing has also been initiated.

To view the map accompanying this press release please visit the following link: http://media3.marketwire.com/docs/kodimap913.pdf

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 10 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 Executive 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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