Kodiak Exploration Limited

Kodiak Exploration Limited

April 23, 2008 11:52 ET

Kodiak Identifies Multiple Drill Targets on West Millennium and Big Yellow Uranium Prospects in Athabasca; Plans to Drill in Otish

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 23, 2008) - Kodiak Exploration Limited (TSX VENTURE:KXL) is pleased to report it has identified multiple drill targets using both VTEM and UTEM data covering the company's West Millennium and Big Yellow properties (21,110 hectares) located in the eastern Athabasca basin. These properties are located in the same part of the basin that hosts Hathor's recent discovery (where it drilled 11.9 metres grading 5.29% U3O8) and many other world class uranium deposits. The surveys have confirmed extensive conductors on the properties that replicate the geometry seen on Cameco's Millennium property, located on a similar conductive trend only 3600 metres to the east of the West Millennium property. Kodiak is currently planning a drill program to test the economic potential of these targets.

Saskatchewan Athabasca Basin:

The West Millennium and Big Yellow properties are strategically located adjacent to UEM's Millennium deposit (45.8 million lb U3O8 grading 4.63%), and on trend with the former Key Lake mine (195 million lb U3O8 grading 2.1%, 30 km to the south) and the McArthur River Mine (389.1 million lb grading 24.30%, 40 km to the north). The properties host a large northeast trending U-Ni-Pb lake sediment anomaly almost 12 km long that was outlined by SMDC in the 1970s on the south part of the properties. UTEM surveys undertaken in 1980s outlined four large conductive trends extending over 14 km that remain virtually unexplored, three of which occur within the boundaries of the lake sediment anomaly. The UTEM survey is interpreted by the company's consulting geophysicist to confirm the existence of unconformity related bedrock conductors on the property. A lithogeochemical survey of boulders in the same area revealed a strong uranium anomaly down-ice from Friesen Lake, a well-developed chlorite anomaly parallel to the geophysical conductors, and scattered boron and lead anomalies around the lake. These are all very favourable indicators for the discovery of structurally controlled unconformity-type uranium deposits, which in the Athabasca Basin are found at or below the sediment-basement contact at the intersection of faults with conductive graphite horizons, and are known to be some of the largest and richest uranium deposits in the world.

The only recorded drilling on the West Millennium property is one historical hole drilled on one of the conductors, where it was successful in intersecting 35 m of pyrite and graphite-rich metasediments at the basement interface. Anomalous uranium values found in chloritized basement rock, along with pervasive bleaching and alteration of the sandstone above the unconformity, confirm this graphitic horizon could have acted as a conduit for uranium-rich fluids.

An exploration program planned for 2008 on the Athabasca properties will include ground geophysical surveys, surface sampling and diamond drilling to test several unconformity related conductors located along extensive conductive trends. All drill holes will be systematically surveyed with radiometric and electromagnetic probes, and all core will be sampled using lithogeochemistry and infrared spectrometry.

Otish Projects Update:

In Quebec, where the Company acquired an extensive land package in the Otish region by staking a total of 733 claims covering 42,859 hectares in eleven discrete claim blocks, the Company continues with preparations for a summer exploration program. This is where Cameco, Areva and Strateco are actively exploring. Cameco recently reported intersecting 16 metres of 1.06% equivalent U3O8, based on downhole radiometrics and Strateco Resources Inc. reported a drill intersection of 2.13% U3O8 over 15.2 metres on its Matoush property, which adjoins two of Kodiak's claim blocks.

The primary objective of the 2008 exploration program is to drill the area believed to be the up ice source of a large highly radioactive boulder fan on the UR property. Previous work by Uranerz in the mid 1970s identified numerous radioactive boulders on the UR claims, nearly 10% of which assayed over 1% U3O8 and one of which returned 3.5% U3O8. Kodiak confirmed the presence of such radioactive boulders with a brief ground reconnaissance program last fall. In addition, an airborne magnetic, radiometric and VLF-EM survey flown over the UR and RIM3 claim groups by Kodiak last fall confirmed the presence of a large, fan-shaped, highly radioactive anomaly in the area of the known boulders. The pattern is precise and suggests that the source of the uraniferous boulders is located up ice at a site wholly within the UR claims. That site is in an area underlain by VLF-EM conductors and faults, where drilling is planned to take place during the summer of 2008.

The 2008 exploration program will consist of additional airborne surveying, mapping and prospecting, detailed lake sediment sampling and diamond drilling. Teams have been assigned and mobilization is set to occur as soon as lakes are ice-free.

With 100% controlled properties in both the Athabasca and Otish basins in Canada, and the necessary management and technical team in place, Kodiak's Energy Division is well positioned to achieve the Company objectives and projected growth for that Division.

The technical information contained in this news release has been reviewed and approved by Charles Beaudry, P.Geo, who is the qualified person for Kodiak's uranium projects under the definitions established by National Instrument 43-101.

Hercules Update:

Exploration at the Hercules gold discovery is progressing as planned. Four drills are currently working on the Golden Mile and, due to the success of this program to date a fifth drill is being mobilized and is due to arrive in the near future. Deep drilling along the Golden Mile continues to intersect mineralized quartz veining, quartz carbonate alteration and strong zones of silicification up to 35 meters thick to depths of up to 430 metres. In addition, the first holes drilled at the far northwest end of the Golden Mile have intercepted quartz veining and thick zones of altered wall rock, indicating that the Golden Mile vein system remains open in a northwesterly direction beyond the extent to which it has been stripped on surface, as well as to depth.

In the course of step back drilling along the central portion of the Mile, a new blind vein was discovered approximately 100 metres southwest of the principal Golden Mile vein. This previously unknown vein was intersected at a depth of 38.5 metres and contains visible gold within a two metre vein width in drill core. Follow-up drilling is in progress to test its full depth and strike extents. Samples from this new vein and drill holes from along the Golden Mile have been submitted for assay. We will release results when all analyses have been received, the data compiled and QA/QC procedures completed. Deep drilling along the central and northwestern portions of the Golden Mile and exploratory drilling elsewhere along the Golden Mile will continue. Further drilling is also planned in the near future for Marino, 7 of 9, and WL as well as other untested gold bearing vein systems.

The Company plans to complete approximately 60,000 metres of drilling during its ongoing 2008 exploration program at the Hercules gold discovery. We will also carry out a comprehensive surface exploration program, which is planned to commence shortly in light of rapid snow melt.

Update on Land Holdings in Geraldton-Beardmore Belt:

Kodiak continues to add properties of merit to its land package in the Beardmore-Geraldton gold belt based on its continuing geological review. To secure additional ground related to two priority targets, Kodiak has acquired two property options. First, Kodiak has been granted an option to acquire an undivided 100% interest in 11 patented mineral claims in the Castelbar Lake area subject to a 3% net smelter returns royalty. Kodiak may exercise the option by making an initial payment of $20,000 and issuing 10,000 shares, and thereafter making payments totaling an additional $180,000 in cash and issuing an additional 40,000 shares between November 30, 2009 and November 30, 2012. Kodiak may purchase one-third (i.e. 1%) of the royalty for $1,000,000 at any time.

Kodiak has also been granted an option to acquire an undivided 100% interest in 12 leased mineral claims in Irwin and Pifher Townships subject to a 3% net smelter returns royalty. Kodiak may exercise the option by making an initial payment of $20,000 and issuing 10,000 shares, and thereafter making payments totaling an additional $180,000 in cash and issuing an additional 40,000 shares between November 30, 2009 and November 30, 2012. Kodiak may purchase one-third (i.e. 1%) of the royalty for $1,000,000 at any time.

The proposed option arrangements are both subject to acceptance by the TSX Venture Exchange.

About Kodiak Exploration Limited:

Kodiak Exploration Limited (TSX VENTURE:KXL) is an aggressive mineral exploration company with experienced management focused on precious, base metal and uranium exploration. Through regional, grass-roots generative exploration and new geological models, the Company has built a diverse property portfolio of 100% controlled Canadian projects which are highly prospective for gold, uranium, and base metals (nickel/copper). The Company currently has approximately $50 million in working capital and is well funded to carry out its future exploration programs. Maps, photographs, detailed geologic reports and additional information may be viewed on our web site, Kodiak is a mineral exploration company with properties located in Canada. You can now view an interactive map, as well as additional photographs, geological details and other 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