Kodiak Exploration Limited

Kodiak Exploration Limited

August 10, 2009 12:49 ET

Kodiak Options CanAlaska's McTavish Uranium Project, Consolidating Large Land Position in the Athabasca Basin

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2009) - Kodiak Exploration Limited (TSX VENTURE:KXL)(FRANKFURT:KX3) is pleased to announce that it has entered into an option agreement with CanAlaska Uranium Ltd. (TSX VENTURE:CVV) with regard to their 164 km2 McTavish uranium project located in the prolific Athabasca Basin of northern Saskatchewan. The McTavish Project consists of three separate claim groups, one wholly enclosed by Kodiak's West Millennium claim group, the other two parcels are intimately intertwined with West Millennium (see map below). UTEM data shows that the conductors successfully drilled by Kodiak this past winter at West Millennium extend onto the McTavish property and appear to intensify. Previously announced Kodiak drill hole WM09-04, which intersected a 69 metre thick fractured graphitic and pyritic pelite unit containing up to 0.13% U3O8, is located only 400 metres from the McTavish property and underscores the excellent exploration potential of the project. UTEM data also defines two other large scale, high magnitude conductors on the McTavish property, both of which are untested by drilling. The combined West Millennium-McTavish property package gives Kodiak control of nearly 380 km2 in the heart of the Athabasca Basin only three kilometres west of Cameco's Millennium deposit (47M pounds U3O8 with an average grade of 4.5% U3O8).

Pursuant to an agreement made with CanAlaska, Kodiak has been granted an option to acquire up to a 70% interest in McTavish uranium project. In order to earn an initial 50% interest in the McTavish Project, Kodiak must complete $4,000,000 in exploration and issue 1,000,000 Kodiak shares to CanAlaska with the flowing schedule: 100,000 Kodiak Shares on or before the Effective Date; such payment to be made within 10 business days after the date of acceptance (the "Effective Date") by the TSX Venture Exchange of a filing to be made in respect of the proposed option;

(i) $600,000 Expenditures and 50,000 Kodiak Shares by the first anniversary of the Effective Date;

(ii) a further $800,000 Expenditures and 50,000 Kodiak Shares on or prior to the second anniversary of the Effective Date;

(iii) a further $1,200,000 Expenditures and 50,000 Kodiak Shares on or prior to the third anniversary of the Effective Date;

(iv) a further $1,400,000 Expenditures and 50,000 Kodiak Shares on or prior to the fourth anniversary of the Effective Date; and

(v) a further 700,000 Kodiak Shares on or prior to the fifth anniversary of the Effective Date

Kodiak can earn a further 10% interest in the property (60%) total, by expending a further $3,000,000 in exploration/pre-feasibility work over a three year period, issuing an additional 550,000 Kodiak shares and producing a 43-101 compliant resource estimate containing at least 35M pounds U3O8 in the measured and indicated categories. By defining a resource of 50M pounds U3O8 during the same period, our interest becomes 70%. The proposed option is subject to acceptance by the TSX Venture Exchange.

To view the map accompanying this release please click on the following link: http://media3.marketwire.com/docs/Kodiak%20Claims%20and%20Base%20Map.pdf

Kodiak is a mineral exploration company with properties located in Canada. You can view additional maps, photographs and additional information, on our Web site: www.kodiakexp.com. The geological information in this press release has been reviewed and approved by Keith Metcalfe, Chief Geologist-Energy Division, who is a qualified person under the definitions established by National Instrument 43-101.

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 current or future activities which involve known and unknown risks and uncertainties. Actual events, performance or results may 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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