Kodiak Exploration Limited
TSX VENTURE : KXL
FRANKFURT : KX3

Kodiak Exploration Limited

September 07, 2010 14:00 ET

Kodiak Drills 24.9 Metres Grading 9.31 gpt Gold at West Geraldton

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2010) - Kodiak Exploration Limited (TSX VENTURE:KXL)(FRANKFURT:KX3) is pleased to announce that exploration drilling on the GK target area at the West Geraldton project has intercepted 24.9 metres grading 9.31 gpt gold (78.3 to 103.2 metres) including 8.1 metres grading 27.75 gpt gold (85.1 to 93.2 metres) in drill hole GK10-40. Reinterpretation of past drilling combined with new surface exploration led to the current drilling program in an area that is only two kilometres north of Premier Gold's Hardrock project (GK-Geraldton Kenogamisis; please see map below). This drill hole was part of a four hole program designed to follow up on previously released drill hole GK08-09 which intercepted 1.2 metres grading 5.93 gpt gold from a polymetallic vein hosted by Archean volcanic rocks. This zone is open to the west and down dip, highlighting the exploration potential of the GK target area. These drill holes are located near the Goldstrike zone at West Geraldton that was previously explored in 2008. A follow up detailed geophysical program has been proposed to further refine this developing target.

To view the maps accompanying this press release please visit the following link: http://media3.marketwire.com/docs/KODI97.pdf

Kodiak is pleased to provide an update on the balance of its Beardmore-Geraldton regional exploration program:

Shields:

The Shields property, located on the northern margin of the Bankfield-Tombill fault zone, covers six gold and gold-copper target zones within and adjacent to a massive gabbroic body (please see project area map) The six target zones have been identified by a program of prospecting, grid mapping and geophysics: The Ferraro, the Stinger, Gladiator, Maximus, Titus and the historic Daley Vein. Trenching of these areas has been completed, with mapping and channel sampling underway. The most significant set of structures is the Gladiator/Maximus/Titus system that has been traced for approximately 500 metres and appear to be limbs of a synformal, southwest plunging fold. Grab and channel samples have returned gold grades ranging from <0.005 gpt gold to 292 gpt gold; significant results to date are tabulated below. Additional channel sampling is planned to guide drill target selection.

Sample Zone Type Length (metres) Gold (gpt)
FER-001 Ferraro channel 1.25 23.8
G27752 Ferraro grab - 292
G27753 Ferraro grab - 15.7
G27814 E of Maximus grab - 12.5
G27817 E of Maximus grab - 17.3
G30389 Gladiator grab - 6.44
G30360 Stinger grab - 14.2

Castlewood Lake

The Castlewood Lake project is located in the north-central portion of the Beardmore-Geraldton gold near the intersection of two major regional structures: the Humboldt Bay and Onaman shear zones (please see project area map). Work has focused on two previously known gold mineralized zones that are considered to be part of a much larger system. A magnetic and induced polarization survey, trenching, trench mapping and channel sampling has been completed on the Centurian Zone and is underway on the Leopard Zone. Assay results to date range from <0.005 gpt gold to 37.6 gpt gold; significant results are tabulated below. The gold mineralized zones are hosted within a strongly deformed mafic volcanic package within or immediately adjacent to the Humboldt Bay shear zone. The zones are interpreted to be hosted within interflow sediments that have been preferentially altered and mineralized. Additional exploration will include prospecting of the remaining project area, grid mapping and an initial drill program to test the interpretation prior to developing a large conceptual target for further drill testing.

Sample Zone Type Length (metres) Gold (gpt)
G26972 Centurian grab - 31.0
G26962 Centurian grab - 5.20
G30161 Centurian grab - 37.6
G30188 Leopard grab - 5.14
CEN-001A Centurian channel 3.65 4.05

Wildgoose

Wildgoose is located on the western extension of the Bankfield-Tombill fault zone where Premier Gold has identified significant gold resources on their Hardrock project. Exploration at Wildgoose has focused on Archean sedimentary rocks up section from the productive Jelico Mine horizon. Drill targets have been defined by ground magnetic and induced polarization surveys. A total of five drill holes for 1,825 metres tested five prospective targets. Drilling intersected broad (up to 134 metres) sericite ± silica alteration of arkose and greywacke. Localized quartz-carbonate stockwork and flooding includes patchy very fine grained arsenopyrite and pyrite mineralization. Drill highlights include 4.5 metres grading 1.4 gpt gold in drill hole WI10-04.

Kodiak's comprehensive and systematic Beardmore-Geraldton regional exploration program is on-going, focused on generating new targets and advancing both known and newly generated targets through the drill evaluation stage of our project pipeline. As part of this program, Kodiak field crews will be conducting geological compilation, prospecting, mapping, geophysical surveys, trenching, and drilling to systematically explore our Beardmore-Geraldton land holdings for quality targets that have potential for discovery. Kodiak's management team is committed to growing shareholder value through the systematic development of a project pipeline, aggressively evaluating high potential targets, and pursuing strategic opportunities which meet corporate goals for expansion and growth.

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.

Contact Information